In alignment with IRS requirements, there are certain businesses that must file Schedule K-2 and Schedule K-3. Ultimately, any pass-through entities that have relevant international income, deductions, credits, or other miscellaneous items must submit completed Schedule K-2 and Schedule K-3 forms. What is Schedule K-2 and Schedule K-3? Schedule K-2 is associated with Partner’s Distributive Share…

If you travel for business, you want to claim valid deductions, but the rules can be confusing. Following are just a few tax details business travelers should know. Business travel deductions are available when employees must travel away from their tax home or main place of business–and there are definitions to know for both. A taxpayer is…

The IRS has issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. In a statement issued on Dec. 29, the IRS said that beginning on January 1, 2023, the standard mileage rates for the use of a car (also vans,…

The Arizona Department of Revenue (DOR) reminds taxpayers that short-term residential rentals are considered lodging rental stays for less than 30 days. The income from short-term rental stays is subject to Arizona transaction privilege tax (TPT). If, for example, an Arizona property owner is only renting their residence for the Gem Show, they will need a…

The Internal Revenue Service is warning employers to be wary of third parties who are advising them to claim the Employee Retention Credit (ERC) when they may not qualify. Some of these third parties are taking improper positions related to taxpayer eligibility for and computation of the credit. The IRS wrote: “These third parties often…

The federal government’s Employee Retention Credit (ERC) proved to be a lifeline for many businesses and their employees affected by the COVID pandemic. The eligibility rules were complex and changed over time, as noted in an extensive IRS chart. Not all business owners may have been able to figure out whether they were eligible; however, the…

As an employer, you are required to uphold the responsibility of payroll taxes. As such, you must also ensure that you understand what the rules are, especially due to how complex they are. First and foremost, start  by ensuring you are aware of these three types of taxes, which you will need to send to…

If you own a small business and “exclusively and regularly” use part of your home as your primary place of doing business, you may be able to deduct some of the expenses of operating your home office on your federal income tax return. Unfortunately, employees are not eligible to claim the home office deduction to the…

As the unemployment rate falls from its 2020 high, employees are switching jobs in record numbers. The new stability in the economy means workers have more leeway to shop around for jobs that fit their lifestyles, needs, and values. Now, the onus is on employers to provide an environment that makes their star team members…