Returning Value Blog

The State of Alabama will be participating in the 15th annual Back-to-School Sales Tax Holiday Weekend beginning Friday, July 17 through Sunday, July 19. This special shopping period will start at 12:01 a.m. on Friday, July 17, and end at midnight on Sunday, July 19. 

If you operate a small business, or you’re starting a new one, you probably know you need to keep records of your income and expenses. In particular, you should carefully record your expenses in order to claim the full amount of the tax deductions to which you’re entitled. And you want to make sure you can defend the amounts reported on your tax returns if you’re ever audited by the IRS or state tax agencies.

The IRS recently released the 2021 inflation-adjusted amounts for Health Savings Accounts (HSAs). 

Crises can bring out the best in many people — but perversely, they can also bring out the worst. Many scammers are trying to take advantage of the complex bailout provisions for individuals and businesses. Be on the lookout for a surge of calls and emails from scammers trying to cheat you with promises of financial relief, just when you may be feeling desperate. Tax-related fraud and identity theft scammers are out and about looking to make a quick — and crooked — buck.

Tax season is here and so are the fraudsters. Tax ID fraudsters are using stolen Social Security numbers to file phony tax returns and steal tax refunds.

In its 2018 decision in South Dakota v. Wayfair, the U.S. Supreme Court upheld South Dakota’s “economic nexus” statute, expanding the power of states to collect sales tax from remote sellers. Today, nearly every state with a sales tax has enacted a similar law, so if your company does business across state lines, it’s a good idea to reexamine your sales tax obligations.

There may still be opportunities to reduce your company’s 2019 tax bill.

Many business owners ask: How can I avoid an IRS audit? The good news is that the odds against being audited are in your favor. In the fiscal year 2018, the IRS audited approximately 0.6% of individuals. Businesses, large corporations, and high-income individuals are more likely to be audited but, overall, audit rates are historically low.

The IRS uses Audit Techniques Guides (ATGs) to help IRS examiners get ready for audits. Your business can use the same guides to gain insight into what the IRS is looking for in terms of compliance with tax laws and regulations.

Alabama's 14th annual sales tax holiday for back-to-school items will be Friday, July 19, 2019, through Sunday, July 21, 2019.