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Murry Guy, CPA

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State Income Tax Apportionment: How Much of Your Business's Income is Subject to State Tax?

Posted by Murry Guy, CPA on Sep 14, 2022

Businesses operating across state lines must determine the amount of their income that is subject to tax in each state. Generally, this is done using what is known as “formulary apportionment.” Given that states regulate the apportionment methods they allow and are not required to use a uniform approach, the varying methods — especially the different ways states source and weight a taxpayer’s sales activities — may result in excessive taxation overall. Multi-state businesses should review the apportionment options and rules in the states and localities where they are taxable for potential opportunities to reduce their tax bill and to ensure they are reporting and paying the correct amount of tax.

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Posted in Business Tax

IRS Boosts Standard Cents-Per-Mile Rates for July 1 Through December 31, 2022

Posted by Murry Guy, CPA on Jun 15, 2022

For the final six months of 2022, the standard mileage rate for business travel will increase by 4 cents per mile, from 58.5 to 62.5 cents per mile, according to IRS Announcement 2022-13. The rate for deductible medical or moving expenses will likewise increase from 18 to 22 cents per mile.

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Posted in Alerts

Businesses: Prepare for the Lower 1099-k Filing Threshold

Posted by Murry Guy, CPA on May 17, 2022

Businesses should be aware that they may be responsible for issuing more information reporting forms for 2022 because more workers may fall into the required range of income to be reported. Beginning this year, the threshold has dropped significantly for the filing of Form 1099-K, “Payment Card and Third-Party Network Transactions.” Businesses and workers in certain industries may receive more of these forms, and some people may even get them based on personal transactions.

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Posted in Business Tax

10 Considerations for Claiming PPP Loan Forgiveness and the ERC Tax Credit

Posted by Murry Guy, CPA on Mar 24, 2022

Business owners need to make choices on their 2021 taxes regarding the Paycheck Protection Program and the Employee Retention Credit. Both were enacted to help businesses stay in operation during the lockdowns caused by the COVID-19 pandemic. 

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Posted in Business Tax

Will the Standard Business Mileage Rate Go Up in 2022?

Posted by Murry Guy, CPA on Jan 07, 2022

After two years of no increases, the optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up in 2022 by 2.5 cents per mile. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup, or panel truck would be 58.5 cents (up from 56 cents for 2021).

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Posted in Business Tax

Digitizing the Accounts Receivable Process

Posted by Murry Guy, CPA on Dec 20, 2021

While digitalization continues to take hold of the business world, the billing and collections functions for many organizations remain largely paper-based. Businesses that automate the accounts receivable process may accomplish several operational and financial goals. Here are five key benefits that organizations can unlock when they “go digital.”

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Posted in Accounting & Outsourcing

Reporting Requirements for Qualified Sick and Family Leave Wages

Posted by Murry Guy, CPA on Oct 06, 2021

The IRS has issued guidance to employers on year-end reporting for sick and family leave wages that were paid in 2021 to eligible employees under recent federal legislation.

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Posted in Business Advisory

Best Practices for Reporting Business-Related T&E Expenses

Posted by Murry Guy, CPA on Sep 17, 2021

Many companies have resumed some level of business-related travel and entertainment (T&E) activities — or they plan to do so this fall. Unfortunately, these expense categories may be susceptible to incomplete recordkeeping and even fraud. So, it’s important for companies to implement formal T&E policies to ensure reporting is detailed and legitimate.

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Posted in Business Advisory

Victory for Restaurants: IRS Permits Tips to be Treated as Qualifying Wages for the Employee Retention Credit

Posted by Murry Guy, CPA on Aug 20, 2021

By now, most restaurant operators are familiar with the Employee Retention Credit (ERC). As we discussed in a previous blog post, the ERC is a fully refundable payroll tax credit designed to encourage businesses to retain and compensate employees during periods in which businesses are not fully operational. 

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Posted in Business Tax

Eligible Businesses: Claim the Employee Retention Tax Credit

Posted by Murry Guy, CPA on Jul 20, 2021

The Employee Retention Tax Credit (ERTC) is a valuable tax break that was extended and modified by the American Rescue Plan Act (ARPA), enacted in March of 2021. Here’s a rundown of the rules.

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Posted in Business Tax

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