When determining how long to keep most of your income tax records, we look to the time frame that the IRS or state revenue agency can audit a tax return. ...

The Work Opportunity Tax Credit, or WOTC for short, is a somewhat complicated tax credit.  Basically, a tax credit exists when a business pays wages to employees that are part of a qualified group.  The obvious question is what makes an employee part of the qualified group...

A cost segregation study looks at a building or piece of property and segregates the total cost into portions with shorter depreciable lives.   This optimizes depreciation resulting in substantial cash flow benefits.  In general, a building is classified as 39 year proper...

Both the federal and state research and development credits (R&D credit) are in place to reward those companies that develop new products or new processes....

No.  Nothing really happened.  The company makes a contribution of $XX, which is paid the ESOP.  The ESOP turns around a pays the Company $XX for principal and interest.  The checking account did not change.  The expense the company needs to record is the actual value o...

There is a high likelihood that if you are an ESOP, then you will be visited by the DOL (Department of Labor).  This is different than an IRS audit.  The chances from my experience is 20%.  IRS audits are much lower, more like 2%....

A major provision in the Tax Cuts and Jobs Act is a 20% deduction available for pass-through entities with qualified business income. Pass-through entities include sole proprietors, partnerships, and S corporations....

This question often comes up when a company goes 100% ESOP.  Prior to the ESOP transaction, ownership had a direct incentive to increase the share price. ...

If you are looking for a way to kill a few hours to figure out if you owe the IRS just a few bucks, then lookback is for you....

The completed contract method is simple since you don’t have to recognize any profit until the contract is actually complete.  There are some important details, but basically you get to wait until the contract is done before you pick up the income or loss....

The cash method of accounting is one of the two main methods that businesses can use.  The cash method can be used by some construction contractors....

Construction contracts are a tricky animal.  There are so many ways to account for them for book and tax purposes and those methods are a bit more complicated than just cash and accrual....