Not-for-Profit

A business may be able to claim a federal income tax deduction for a theft loss. But does embezzlement count as theft? In most cases, it does, but you’ll have to substantiate the loss.

If your business receives large amounts of cash or cash equivalents, you may be required to report these transactions to the IRS.

Deductions for business meals and/or vehicle expenses receive extra scrutiny from the IRS, so expect that they will be reviewed closely. Unfortunately, in some cases, taxpayers have incomplete documentation or try to create records months (or years) later.

The Wisconsin governor signed the 2021-2023 biennial budget bill that makes some changes to personal income tax, corporate income tax, partnership changes, sales tax, and property tax.

There’s a harsh tax penalty that you could be at risk for paying personally if you own or manage a business with employees. It’s called the “Trust Fund Recovery Penalty,” which applies to the Social Security and income taxes required to be withheld by a business from its employees’ wages.

If you’re claiming deductions for business meals or auto expenses, expect the IRS to review them closely. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law