Category: Taxation-Corporate

The One Big Beautiful Bill Act, known as OBBBA or H.R. 1, introduced a new above-the-line tax deduction for overtime (OT) pay premiums. For employers, this means it’s time to update payroll processes and ensure filings are compliant with the additional reporting requirements. Overtime Pay Deduction Guidelines Reporting Requirements Since the new ruling applies for any overtime qualified employee under the Fair Labor Standards Act (FLSA), the new requirements impact employers across the board. The IRS requires employers and other payors… Read more ›

The One Big Beautiful Bill Act (OBBBA) brings broad changes that will affect businesses of all types—family-owned companies, professional services firms, and large corporations alike.The law touches everything from pass-through income and depreciation to employee benefits and international tax rules.  In addition to new opportunities for tax planning, the OBBBA also prevented significant tax increases that were set to take effect on 1/1/2026.  Additionally, the rates from the Tax Cuts and Jobs Act were made permanent.Every business should review the… Read more ›

Tax-free shopping returns to Maryland and Virginia in August for those looking for a good deal on back-to-school shopping and emergency preparedness items. Below are details on qualified items. Virginia’s Sales Tax Holiday | August 1 – 3, 2025 What items are eligible? See the detailed guidelines published by the Department of Taxation for all qualifying items. Maryland Tax-Free Week | August 10 – 16, 2025 What items are eligible? Click here for frequently asked questions provided by the Comptroller… Read more ›

The Inflation Reduction Act provided the IRS with billions of dollars of additional funding to reduce the so-called “tax gap” between what taxpayers owe and what they actually pay. The tax agency has already launched numerous initiatives aimed at this goal, including several business-related compliance campaigns. Let’s take a closer look at three of the most significant recent targets.  Abusive Pass-through Practices The IRS has accelerated its enforcement efforts against partnerships and other pass-through entities, which it claims have been… Read more ›

It’s never too early to start gathering the necessary information required to prepare and file 1099s for your business. Reminders: Best Practices About Form 1099 from CBM’s Accounting Advisory Team For a smooth and timely 1099 filing season, consider the following best practices: Need assistance? CBM’s Accounting Advisory team supports businesses with accounting and tax preparation expertise. Use our online contact form to contact now to contact Dominick Bellia for guidance or for assistance. Councilor, Buchanan & Mitchell (CBM) is… Read more ›

There is always a cost to doing business and nowhere is this as true as in state and local taxation. Understanding tax requirements plays a crucial role in starting and running a successful business; bringing sufficient know-how to business decision-making should include well-informed tax planning, which affects areas as wide-ranging as the location of your entity and ensuring compliance with all applicable tax agencies to avoid running afoul of legal problems.   Each state and local jurisdiction has its own set… Read more ›

President Biden has released his proposed budget for the 2025 fiscal year, including numerous tax provisions affecting both businesses and individual taxpayers. While most of these provisions have little chance of coming to fruition while the U.S. House of Representatives remains controlled by the Republican Party, they might gain new life depending on the outcome of the November elections. Here’s an overview of the major tax proposals included in the budget. Business Tax Provisions The budget proposal includes many changes… Read more ›

An S corporation is a business structure that allows the passage of taxable income, losses, credits and deductions to shareholders, thereby preventing income from being exposed to the consequences of double taxation at the corporate and individual levels. Although an S corporation benefits from certain tax advantages, it also faces restrictions such as a limit on the number of shareholders – no more than 100. As part of estate planning, some individuals choose to take advantage of the availability of… Read more ›

If the complexity of IRS notices has historically got you scratching your head, you’re not alone. Fortunately, the IRS is addressing this problem with a “Simple Notice Initiative”, a program which will be rolled out in the coming years to improve communications with customers by focusing on: This ambitious project will end up impacting up to 90% of notices distributed by the IRS by the 2025 filing season. It will begin by updating notices commonly distributed to individual taxpayers including… Read more ›

The Internal Revenue Service (IRS) announced significant relief measures for some taxpayers facing penalties on their 2020 and 2021 tax returns. The relief addresses a mishap caused by COVID measures. 4.7 million individuals, businesses and tax-exempt organizations incurred late fees without receiving collection reminders. The IRS will provide $1 billion to settle these penalties or reimburse filers who have already paid their account. Those who qualified will be sent a letter some time this month, no action is needed to… Read more ›