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IRS Buckles Down on Micro-Captives

IRS Buckles Down on Micro-Captives

Recently, in Caylor Land & Dev. v. Comm., the Tax Court once again held that a micro-captive insurance arrangement failed to qualify as an insurance company for federal income tax purposes. As a result, the taxpayers were unable to deduct the insurance premiums...
Do You Qualify to Use the NIMS Inventory Method?

Do You Qualify to Use the NIMS Inventory Method?

Generally, taxpayers are required to take inventories at the beginning and end of each taxable year. However, the TCJA and regulations provide an exception for certain “small businesses.” If your business qualifies, you may be able to treat certain costs as...
FFCRA Credit for COVID-19 Leave

FFCRA Credit for COVID-19 Leave

What is the FFCRA credit, and why should you care? Like the ERTC, it’s extra money in your pocket to the extent the credit exceeds your payroll tax liability. Also, like the ERTC, the credit can be claimed on the Form 941 (or an amended Form 941-X). The FFCRA, signed...
Employee Retention Tax Credit: Extra Cash for Struggling Businesses

Employee Retention Tax Credit: Extra Cash for Struggling Businesses

What’s going on with the ERTC? It has been extended through the end of 2021, more employers are eligible to claim it, and the amount of the credit is greater, especially for employers hit especially hard by the pandemic. Is it worth looking into? Definitely. Keep...