Federal and state taxation
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IRS Pauses Processing New ERC Claims Until 2024
The IRS is serious about cracking down on fraudulent ERC claims. The IRS issued multiple warnings, a generic legal advice memorandum, and the “dirty dozen” article warning taxpayers against aggressive schemes for claiming COVID-related relief with the employee retention credit program. On September 14, 2023, it announced a moratorium on processing new refund claims through the end of the […]
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Transportation Profit Down, Tax Liability Up?
We keep hearing the economy is down, worries of a recession, high inflation, etc. This post isn’t about that. Challenges face the transportation industry after many companies had successive great years. You might be reviewing your financials this year and see a smaller number on the bottom line. Now that we are nearing the end […]
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Travel Far with the Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) is an underutilized resource within the transportation industry. It allows employers to reduce their federal tax liability by up to $9,600 per eligible employee when they hire people from targeted categories and employ them for at least 120 hours in their first year of employment.
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Proposed House Bill Offers Recruiting and Retention for Truck Drivers
A couple of weeks ago, House Representatives Dusty Johnson (R-SD) and Jim Costa (D-CA) introduced the Safer Highways and Increased Performance for Interstate Trucking (SHIP IT) Act. Johnson and Costa say the proposed bill will: ATRI’s annual top 10 list has listed the driver shortage for as long as I can remember. Maybe providing a […]
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Section 174 Rule Changes
Section 174 expense, otherwise known as research and experimental (R&E) expenses have some rule changes for 2022 tax years. When you think of companies with R&E expenses, the transportation industry doesn’t first come to mind. Typically, you think about manufacturing or technology companies. However, in the last handful of years, transportation companies been creating a […]
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Mileage Rates for 2023
The IRS has issued updated optional standard mileage rates for 2023. These rates are often used to calculate the deductible cost of operating a vehicle for business purposes as well as used by employers for calculating employee reimbursements for business mileage driven with personal vehicles. Beginning January 1, 2023, mileage rates will be: The mileage […]
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Simple Tax Planning Tips
Sometimes there’s a mystique around tax planning. People think there is some hidden magic. A strategy they don’t know about and way they can have their cake (income) and eat it too (low/no tax). The tax code is long and complicated to avoid things such as that. When it comes to tax planning you have […]
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The Missing Pieces from the Omnibus Bill
Congress passed a $1.7 trillion dollar spending bill at the tail end of last week. In likely the last major piece of legislation Congress will pass before Republicans take control in the new year, many initiatives were included as lawmakers pushed to avert a government shut down and get home for the holidays before winter […]
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New Connecticut Highway Use Fee
Starting in January 1, 2023, Connecticut will be imposing a new use fee on certain carriers for the “privilege of operating” certain heavy, multi-unit motor vehicles on any highway in Connecticut. Companies such as transportation or construction companies will be impacted by this as it applies to class 8 through 13 vehicles. Here’s a chat […]
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Bye Bye Bonus?
If you haven’t heard yet, 2022 is the last scheduled year of 100% bonus depreciation. From 2023 through 2027, bonus depreciation will phase down by 20% each year. Businesses have enjoyed the benefits of 100% bonus since 9/28/17 with the passage of the Tax Cuts and Jobs Act. Effectively, bonus depreciation has allowed businesses to […]