IRS Heightens Scrutiny on P2P Payments
Person-to-Person Payments Zelle… Venmo… Square… PayPal… Cash App… Options for person-to-person payment services (P2Ps) have exploded over the last decade. Venmo is known for its social aspect—an estimated 30% of transaction descriptions include emojis. However, don’t be surprised if you hairdresser requests payment through the app. On the other hand, Zelle is popular for being […]
Disaster Declarations
Natural phenomena such as floods, forest fires, hurricanes, tornadoes, and earthquakes pose unpredictable threats to life and property. When disaster strikes, the IRS has policies in place to attempt to ease the burden on affected taxpayers and businesses. But understanding your rights as a taxpayer would be a headache in the midst of an emergency. […]
Self-Directed Retirement Accounts: Possibilities and Pitfalls
Accountants and financial advisors alike agree that investing in tax-advantaged retirement accounts like 401(k)s and IRAs are a great way to save for retirement. Many investors save money on taxes in the year they contribute to the account, and the contributions grow tax-free for decades until the account holder withdraws the funds. Other investors may […]
IRS Destroys 30 million Information Returns
In March of 2021, the IRS shocked taxpayers and tax preparers alike when an audit uncovered that the IRS office in Ogden, UT, had destroyed an estimated 30 million paper-filed information documents. Yes, 30 MILLION. What are the possible consequences of this mass destruction? The IRS asserts that the data that was destroyed included […]
The Best Time for Tax Planning: Today
Have you ever felt anxious going in to review your tax return? Have you ever been uncertain whether you were going to receive a refund or owe money to the IRS? Too often, tax season brings unpleasant surprises like balances due and penalties. However, at K&R we believe that surprises at tax time are not […]
Arizona Corporate Credits
Business owners in Arizona have a unique opportunity to offset their personal tax burden dollar for dollar by having their corporation make a charitable donation. Specifically, s-corporations can donate up to the state income tax liability of the business owner for the given tax year. Substantial Tax Savings Unlike the Arizona individual credits, the […]
Understanding Qualified and Nonqualified Retirement Plans
The Employee Retirement Income Security Act (ERISA) protects employees by setting out minimum standards that retirement and health care plans must meet. Since the law’s inception in 1974, these requirements have evolved, but its core principles remain: Responsibility of fiduciaries in managing plan funds. Disclosure of information about the plan and its investments. Right to […]
