At Machen McChesney, we are committed to Returning Value to you through our monthly e-newsletter, The Value Report.

Here you'll find regular tips to help with your business and personal finances, as well as strategies to grow and more efficiently run your organization.  

Table of Content

1. Businesses May Receive Notices About Information Returns That Don't Match IRS Records
2. Tax Planning Ideas for All Seasons
3. Businesses: Prepare for the Lower 1099-K Filing Threshold
4. Forecasts vs. Projections: What's the Big Difference?
5. Do You Know the Signs of Financial Distress in a Business?
6. How Inflation Could Affect Your Financial Statements
7. Partners May Have to Report More Income on Tax Returns Than They Receive in Cash
8. IRS Issues Proposed Regulations That Refine Estate and Gift Tax Anti-Clawback Rule
9. What's New at Machen McChesney

Businesses May Receive Notices About Information Returns That Don't Match IRS Records

The IRS has begun mailing notices to businesses, financial institutions, and other payers that filed certain returns with information that doesn’t match the agency’s records. Continue reading.

Tax Planning Ideas for All Seasons

The end of any tax year is a natural time to consider tax planning ideas for the year ahead — and beyond. What tax-related changes should you be aware of this year? We expect to see adjustments to tax brackets and other minor changes to the tax code. But the prospects for more impactful developments in the tax environment are still unclear. Continue reading.

Businesses: Prepare for the Lower 1099-K Filing Threshold

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. Continue reading. 

Do You Know the Signs of Financial Distress in a Business?

Financial statements tell only part of the story. Investors, lenders, and other stakeholders who know how to identify red flags of impending problems can protect their own financial interests. Additional due diligence may be needed to uncover these issues. For instance, stakeholders might need to talk to management, visit the company’s website and compute financial benchmarks using the company’s most recent financial statement. Here’s what to look for. Continue reading. 

How Inflation Could Affect Your Financial Statements

Business owners and investors are understandably concerned about skyrocketing inflation. Over the last year, consumer prices have increased 8.3%, according to the latest data from the U.S. Bureau of Labor Statistics. The Consumer Price Index (CPI) covers the prices of food, clothing, shelter, fuels, transportation, doctors’ and dentists’ services, drugs, and other goods and services that people buy for day-to-day living. This was a slightly smaller increase than the 8.5% figure for the period ending in March, which was the highest 12-month increase since December 1981. Continue reading. 

Partners May Have to Report More Income on Tax Returns Than They Receive in Cash

Are you a partner in a business? You may have come across a situation that’s puzzling. In a given year, you may be taxed on more partnership income than was distributed to you from the partnership in which you’re a partner. Continue reading.

IRS Issues Proposed Regulations That Refine State and Gift Tax Anti-Clawback Rule

The Treasury Department, on April 26, 2022, released proposed regulations limiting the anti-clawback rule previously published on November 26, 2019. The proposed regulations – REG-118913-21 – address certain situations in which an estate could be taxed on gifts made by a donor after 2017 and before a reduction in the basic exclusion amount (BEA), wherein the gifts were free of gift tax when made. Continue reading.

What's New at Machen McChesney?

Sponsorships, new hires, announcements
Continue reading. 

We hope you found value in The Value Report you've received this month. We look forward to finding even more ways to Return Value to you in the future.