Delaware, Maryland, and Pennsylvania Division of Revenue Alerts

As of March 16, 2020, the Delaware, Maryland, and Pennsylvania Division of Revenue posted the following alerts: Delaware: The Delaware Division of Revenue has issued an announcement that while the State of Delaware has declared a state of emergency to prepare for the spread of the coronavirus, all state offices currently remain open. Maryland: The Maryland Comptroller’s Office announced that … Continued

Are Qualified Charitable Distributions an Underused Tax Planning Tool?

Posted by Michael H. Abernathy Jr, CPA Although Congress incentivizes individuals to save for retirement by allowing various tax-free savings vehicles, they do eventually require taxpayers to dig into their nest eggs. When taxpayers reach age 70 ½ they must withdraw at least a specified minimum amount of funds from their retirement accounts each year. These required minimum distributions (RMDs) … Continued

Reasonable Compensation for S-Corporation Shareholders

Posted by Michael H. Abernathy Jr., CPA For S-Corporation owners, complex regulatory environments and constantly changing tax laws make deciding upon the correct method and amount to pay yourself a burdensome endeavor. S-Corporation owners have an incentive to characterize income taken out of their business as owner distributions instead of wages to avoid payroll taxes and create potential Qualified Business … Continued

What are the Effects of Marriage on Taxes Post-TCJA?

Posted by Amy L. Gordon, CPA The marriage tax penalty or benefit occurs from a change in a couple’s tax liability as a result of marriage and subsequently filing jointly. The marriage tax penalty results when the tax burden of a married couple filing jointly is greater than that of an unmarried couple filing separately. This penalty has impacted married … Continued

Tips for getting questions answered from the IRS

We are in the thick of the tax filing season and the call volume to the Internal Revenue Service (IRS) is high, so we would like to share some tips the IRS has communicated which will enable you to get a quick answer.