Returning Value Blog

For many employers, one of the most common payroll misconceptions is that employees can simply request that no Alabama state income tax be withheld from their paycheck. Under Alabama law, that is not the case. Alabama Department of Revenue has been adding more emphasis on this as of late.

The IRS has announced an increase to the optional standard mileage rate for business use of a personal vehicle, raising the rate to 76 cents per mile for business travel beginning July 1, 2026. Business mileage incurred during the first six months of 2026 should continue to be calculated using the prior 72.5-cent-per-mile rate.

Offering a broad menu of employee benefits can help your business attract and retain skilled workers. One benefit that’s popular among employees with families is employer-provided child care. Although this option hasn’t been financially feasible for many small businesses, recent tax law changes may give you a reason to reconsider opening (or upgrading) a child care facility, contracting with a child care provider, or participating in a jointly operated arrangement. Here’s an overview of the credit and how it’s been enhanced starting in 2026.

Tax problems can happen to even the most organized small business owners. A cash flow crunch, an unexpected tax notice, a missed filing deadline, or a payroll tax oversight can be stressful — especially when penalties and interest begin to add up. Fortunately, businesses can get back on track by addressing tax issues promptly and strategically.

Alabama's Back-to-School Sales Tax Holiday Weekend: July 17–19, 2025

The State of Alabama will participate in its 21st annual Back-to-School Sales Tax Holiday Weekend, beginning Friday, July 17, 2025, at 12:01 a.m. and ending at midnight on Sunday, July 19, 2026. During this three-day event, shoppers can purchase a variety of school-related items free of the state’s 4% sales tax, keeping in mind that local sales tax may still apply, depending on whether your city or county is participating in the tax holiday.

Fraud is a major threat facing small and midsize businesses. While audits aren’t designed to uncover fraud, they can help business owners identify anomalies and deter would-be fraudsters. Recent findings from the Association of Certified Fraud Examiners (ACFE) underscore the important role audits play, together with other controls, in a broader fraud prevention strategy.

Some small business owners overlook Roth IRAs because they assume their income is too high for them to qualify to make Roth contributions. Others may think their current tax rate is higher than it will be in retirement, making current tax deductions more valuable than future tax-free distributions. However, if you don’t at least consider contributing to a Roth IRA, you may be missing a potentially valuable tax-saving opportunity.

Persistent inflation, elevated interest rates, and volatile energy costs continue to squeeze profit margins for many small and midsize businesses. While implementing price increases may seem like the simplest response, that’s not always necessary — and, in today’s competitive markets, price increases can even cause some of your customers to search for lower-cost providers. Sustainable pricing decisions start with disciplined cost controls. One broad area to target for operational inefficiencies is overhead expenses.

The Internal Revenue Service has announced a new, streamlined way for taxpayers to extend the period of time for the IRS and the IRS Independent Office of Appeals to review a taxpayer’s response to a disallowance of an Employee Retention Credit (ERC) claim to avoid refund litigation.

Many modern businesses rely on intangible assets, such as goodwill, trademarks, and customer lists. But the IRS doesn’t treat all intangibles the same way. Questions about how these assets are taxed often arise when a business is sold, ownership changes hands, or intellectual property is licensed or transferred.