Tax Tips

IRS Information Letter 6419 for Advance Child Tax Credit May Contain Incorrect Information

The IRS announced Monday that recipients of Letter 6419, which addresses 2021 advance Child Tax Credit (CTC) payments, should double-check the information it contains, as some letters may provide outdated information.  To ensure they have correct information, taxpayers should login to the recently updated IRS website for the advance CTC and use the payment information […]

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How Start-up Expenses are Claimed on Tax Returns

While some businesses have closed since the start of the COVID-19 crisis, many new ventures have launched. Entrepreneurs have cited a number of reasons why they decided to start a business in the midst of a pandemic. For example, they had more time, wanted to take advantage of new opportunities or they needed money due […]

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Businesses With Employees Who Receive Tips May Be Eligible for a FICA Tax Credit

If you’re an employer with a business where tipping is customary for providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. Basics of the Credit The FICA credit applies with respect to tips that your employees […]

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Save Your IRS Information Letters: Advance Child Tax Credit and Third Economic Impact Payments

The IRS is issuing information letters to recipients of the Advance Child Tax Credit (CTC) and the third round of the Economic Impact Payments (EIP). Our accountants are encouraging recipients of both letters to retain them for their tax records, as they should be used when preparing 2021 tax returns to reduce errors and delays. […]

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