Penalties and Interest - Consequences of Late Filing and Paying

 


Hey CPA Superhero, I am late filing my personal returns and what consequences am I looking at? In addition to paying your taxes the IRS assesses penalties for the following:
  • Failure to File
  • Failure to Pay
  • Failure to Pay Proper Estimated Tax
  • Dishonored Check

Failure to Pay


  • The maximum penalty is 25% of the tax due. 
  • The rate increases from .5% to 1% per month 10 days after the IRS issues a final notice of intent to levy or seize property. 
  • The penalty rate is .25% for each month or part of a month in which an installment agreement is in effect.

Failure to File


  • The failure-to-file penalty is .5% of the unpaid taxes for each month or part of a month that a tax return is late.
  • The penalty won't exceed 25% of your unpaid taxes
  • If both a failure-to-file and a failure-to-pay penalty are applicable in the same month or part of month, the combined penalty is 5% (4.5% late filing and .5% late payment) for each month or part of a month that your return was late, up to 25%.
  • The late filing penalty is calculated based on the tax that remains unpaid after the due date. Unpaid tax is the total tax shown on your return reduced by amounts paid through withholding, estimated tax payments, and allowed refundable credits.
  • If after five months you still haven't paid, the failure-to-file penalty will max out, but the failure-to-pay penalty continues until the tax is paid, up to 25%.
  • The maximum total penalty for failure to file and pay is 47.5% (22.5% late filing and 25% late payment) of the tax. 
  • If your return was over 60 days late, the minimum failure-to-file penalty is the smaller of $435 (for tax returns required to be filed in 2020) or 100% of the tax required to be shown on the return.

Interest


Interest accrues on the unpaid balance and compounds daily from the due date of the return (without regard to any extension of time to file) until you pay the balance in full.


  • The interest rate for taxpayers other than corporations is the federal short-term rate plus 3%.
  • The federal short-term rate is determined every three months.
  • For the current quarterly interest rate on underpayments, search "interest rates" via our Newsroom Search or "quarter interest rates" on IRS.gov Site Search.

Incentive to file and pay in a timely manor

These are serious penalties and interest. Notice this point from IRS topic 653:

Often, you can borrow the funds necessary to pay your tax at a lower effective rate than the combined IRS interest and penalty rate.

So file and pay on time and borrow money if you need to to get it done and you probably will be better off financially and emotionally as a result.  

If you can't pay what you owe you are better off filing and paying on time. If you don't have the money get a loan to pay it and it is likely what you will pay in principal and interest will be less than paying your taxes and the IRS penalties and interest over time. 

Not filing and not paying is a really bad decision. But once you have made that decision and now you are years behind, now is the time to face up to that and take care of it before the IRS knocks on your door, oh and the penalties and interest can continue to accrue.  But if you are really behind the penalties may have maxed out but the interest continues to accrue. So in that case contact me to help you get compliant with filing and make arrangements to pay the IRS or settle with them if you can't pay everything even over time. 

Installment Agreements


In addition to the penalties you are also looking at interest on what you owe. Additionally, if you arrange an installment agreement the penalties and interest continue to accrue. In fact the IRS presents this the other way:
"Penalties and interest stop accruing as soon as you pay your balance in full."

Late Filers

Late filing does happen, in fact every year a growing number of late filers ask me to help them to get compliant with the tax filing and payment requirements. It is a tough move to make but it is even harder to continue to wait and carry the anxiety of worrying about when the IRS will catch up to you. Not only is late filing and paying difficult, but the emotions are very difficult as well. I help many people each year to get caught up. Don't procrastinate any longer. Contact me today using my email address below to arrange a consultation to help you get started.



Jeff Haywood, CPA
The CPA Superhero
jeff.jhtaxes@gmail.com





Sources:

Topic 653 IRS Notices and Bills, Penalties, and Interest Charges

IRS faqs: Will I be charged interest and penalties for filing and paying my taxes late?

Posts - IRS Collection Issues and Options:






Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

IRS: You May Not Deduct Expenses Paid With PPP Loan Proceeds If You Reasonably Expect to Receive Loan Forgiveness



IRS Revenue Ruling 2020-27 - You Can't Deduct Expenses Paid With PPP Loan Proceeds That Are Expected To Be Forgiven

The IRS released Revenue Ruling 2020-27 on November 18 which clarifies both that expenses paid or incurred with PPP loan proceeds that are expected to be forgiven are not deductible but also the timing of the disallowance of the deductions. According to the Ruling if you have expenses paid with PPP loan proceeds and you reasonably expect those PPP loan proceeds to be forgiven those expenses are not deductible in the year they were paid or incurred even if the loan is not forgiven in that same year. 

The ruling presents two examples, both of which deny the deduction of the expenses paid with forgiven loan proceeds. One is a situation where the forgiveness was applied for in the current year but was not granted before the end of the tax year. The other situation involves a business that does not apply for loan forgiveness in the current year in which the expenses were paid or incurred but expects to apply for and receive the forgiveness later. In both cases the IRS is saying the expenses paid with the PPP loan proceeds that they reasonable expect to be forgiven are both not deductible and are not deductible in the year in which they were paid or incurred. So this Revenue Ruling 2020-27 addresses both the issue of deductibility and of timing of expenses. 

The IRS Did Not Make This Up Last Week

Without taking sides on the issue, it appears the IRS did not just decide to do this last week, to deny the deduction of otherwise deductible expenses that were paid with PPP loan proceeds that are expected to be forgiven (tax exempt income).  I attended a tax webinar recently where a former IRS agent addressed this and simply shrugged his shoulders and said these expenses were not deductible and he was advising his clients accordingly. Why was he so sure? It has nothing to do with the CARES Act but with section 265 of the Internal Revenue Code (IRC). This section of the IRC was apparently part of the tax reform act of 1986 and it includes the following:

(1) Expenses: Any amount otherwise allowable as a deduction which is allocable to one or more classes of income other than interest (whether or not any amount of income of that class or classes is received or accrued)wholly exempt from the taxes imposed by this subtitle, or any amount otherwise allowable under section 212 (relating to expenses for production of income) which is allocable to interest (whether or not any amount of such interest is received or accrued) wholly exempt from the taxes imposed by this subtitle. 

Congress Blasts IRS For Limits on Forgiven PPP Loan Tax Breaks

This is a headline from an article in AccountingToday published on November 20, 2020: Congress blasts IRS for limits on forgiven PPP loan tax breaks. The article points out that:

"The congressional reaction to the guidance puts additional pressure on the Treasury and Internal Revenue Service to allow taxpayers to claim the expense deductions."

However, as mentioned above it appears the IRS is bound by section 265 of the IRC to disallow these deductions. The article also adds the following:

"The lawmakers said they are working to include language in year-end legislation clarifying that taxpayers qualify for expense deductions even if their loans are forgiven. That could be included in government spending legislation that Congress must pass by Dec. 11 before federal funding runs out."

So CPA's and taxpayers are left to wait for future legislation to know how to file their tax returns and plan for estimated tax payments. As I mentioned in my last post - PPP Loan Forgiveness and Income Taxation - What We Know Today (or did we know yesterday), for some businesses this can mean a significant amount of money.  

Intent of the CARES Act

The AccountingToday article includes this quote about the intent of the CARES Act:

"Chris Moran, a tax attorney for law firm Venable LLP, said, “the IRS guidance seems to be inconsistent with congressional intent” in the CARES Act, which created PPP loans for businesses struggling from the pandemic. The law stated that the forgiven loan won’t be taxed, but didn’t specify whether companies could still write off the expenses they covered with that money.

Excluding the forgiven loan from tax “is essentially meaningless if the expenses funded by the loan are nondeductible,” Moran said.

Still, many taxpayers aren’t expecting to get permission to claim the deductions, from the IRS or Congress, in the short term."

So maybe there will be legislation passed that will enable the IRS to allow the deduction of expenses paid with the PPP loan proceeds that are reasonably expect to be forgiven. Stay tuned.

Already Filed Returns Taking the Deductions

After digging into this, and realizing the IRS basis for disallowing these deductions of expenses paid with the PPP loan proceeds that are reasonably expect to be forgiven, now I have to figure out if I need to amend an already filed return for fiscal that ended already in 2020 or wait until the dust settles and see if there is a legal change that allows the deductions. I really want to avoid amending the return and then have the legislation passed that allows the deductions and then need another amended return to change it back to the originally file return. It sounds like we should not have to wait too long to find out how this will all work out. Then again it is 2020.

Help in Uncertain Times

In uncertain times like these it helps to have someone you can talk to about your business and the implications of these issues.  I, the CPA Superhero, enjoy having conversations with my clients throughout the year. Contact me today using my email address below to arrange an initial consultation to discuss your business and your tax and financial goals.



Jeff Haywood, CPA
The CPA Superhero
jeff.jhtaxes@gmail.com





Sources:

PPP Loan Forgiveness and Income Taxation - What We Know Today (or did we know yesterday) - The CPA Superhero

Congress blasts IRS for limits on forgiven PPP loan tax breaks - AccountingToday

IRS Notice 2020-32

IRS Revenue Ruling 2020-27

IRS section 265 see page 13-5

Senate Bill 3612

Posts - IRS Collection Issues and Options:






Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

PPP Loan Forgiveness and Income Taxation - What We Know Today (or did we know yesterday)




 

November 17, 2020

Updated November 20, 2020

Unknown tax laws or rulings make planning and setting expectations very difficult. I am participating in a webinar this week with tax preparers and tax attorneys and the number one issue is the tax treatment of forgiven PPP loans. The expectation is there will be clarification at some point but until then what can we do? We do what we can. That is the hot topic among tax people and it is also the hot topic in the business community as well.

Being a CPA is like having a front row seat for the game being played out by business owners, but it is also like being a bartender because the participants are sharing their thoughts and feelings with you. When the CARES Act was being considered, even before it was passed, my clients started to call me about how the PPP loan could help in a very difficult time. They were excited about the possibility of being able to "keep their doors open" and keep employees on payroll. This seemed like a great benefit for them and later I got calls from these same business owners who wish they had never taken the loans and they are losing sleep worrying about the income tax implications. There have been some clarifications about the income tax implications for business owners that received PPP loans and there continues to be an outcry for more legislation to make the tax impact to be what seems to have been the intention when the CARES Act was passed, but we still don't have that yet.

The Intention of the CARES Act

Many have drawn the conclusion from reading the CARES Act that the intention was for PPP loans to be forgivable if they were spent on qualified expenditures and that the forgiven amount would be not be taxable. However, the IRS stated in Notice 2020-32 the following:

"Specifically, this notice clarifies that no deduction is allowed under the Internal Revenue Code (Code) for an expense that is otherwise deductible if the payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the Coronavirus Aid, Relief, and Economic Security Act (CAREWS Act), Public Law 116-136, 134 Stat. 281, 286-93 (March 27, 2020) and the income associated with the forgiveness is excluded from gross income for purposes of the Code pursuant to section 1106(i) of the CARES Act."

So it appears that the CARES Act intended for the loan forgiveness not to result in taxable income for the business but would be an incentive for the business to maintain its payroll even if its revenue dropped off. However, the IRS is bound to view expenses paid with proceeds of a non-taxable forgiven loan to be non-deductible. There is a bill in the Senate that appears to propose changes to make the intent of the CARES Act to become a reality. It is Senate Bill 3612 which in summary states:

This bill amends the Coronavirus Aid, Relief, and Economic Security Act to provide that tax deductions for ordinary business expenses and other tax incidents shall not be affected by the exclusion from gross income of amounts related to loan forgiveness received in response to COVID-19 (i.e., coronavirus disease 2019).

Upset Business Owners

Here is why some of my clients are upset: First, when the CARES Act was passed it seemed the government wanted to give business owners funds to continue to pay people even though "current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant". It seemed like the deal was to loan businesses money and if they used it to mainly to maintain payroll then the loan could be forgiven and the business would not have to pay tax on the loan proceeds to the extent the proceeds were used for qualified expenses and if employment levels were maintained. 

So, for example, if a business would ordinarily decide to layoff employees due to the uncertain economic situation but with PPP loan proceeds it would have the incentive to maintain payroll. For example, with $100,000 of forgivable PPP loan proceeds it could maintain its payroll and have the loan forgiven and deduct the expenses on its income tax return and the business would benefit some from that arrangement. In this case it would reduce the taxable income of the business by $100,000. Yes that sounded like an incentive to maintain payroll. If, for example, the business's income tax rate was 21% it could benefit by approximately $21,000 to maintain its payroll and continue to employee its employees.

However, with the IRS notice which clarified that the expenses paid with forgiven loan proceeds would not be deductible, now the business would have received for example $100,000 and used all of it to pay employees and it would not benefit from the $100,000 because the proceeds would not be taxable income but the expenses paid with it would not be deductible either. The $100,000 would benefit the employees but not the business itself.

I am not a political person and I just trying to explain how this works and how my clients view this situation. With the way things stand with the PPP loan, business owners do not benefit from it. In reality they lose some money from expenses associated with obtaining the PPP loan, tracking the use the PPP loan proceeds, and applying for forgiveness. 

Affect on Strategic Decision Making 

One of my clients quickly began to view the PPP loan as a negative even before he realized he would not get any financial benefit. Why? Because he was making business decisions driven by the PPP loan and not what he would ordinarily do. It also complicated the review of his operating results because how do you view what the business paid to employees who did not work? For the period of the loan coverage and for a time afterwards his business did not operate in the same manner. Had he realized this is what would have happened he would not have taken the PPP loan. Now he realizes he may not benefit financially from the PPP loan and he is having a difficult time excepting it. At the same time he and others are worrying about the ongoing sustainability of their businesses given the current economic uncertainty that continues to hang over all of our heads.

Estimated Tax Payments

So now, what about making estimated income tax payments. After the IRS notice suddenly we don't clearly know what taxable income will be and how do we make estimated income tax payments? 

Taxation at the State Level

What about at the state level. Will the PPP loan be taxable or will the expenses be deductible? Each state can decide to view this situation differently. 

Timing of Forgiveness and Tax Implications

Remember the IRS notice states: "no deduction is allowed under the Internal Revenue Code (Code) for an expense that is otherwise deductible if the payment of the expense results in forgiveness of a covered loan". So for clients whose loan coverage period ended in 2020 and if their loan hasn't been forgiven by the time we do the 2020 tax return, then what? My clients are going to want to delay forgiveness with the hope this situation will change to benefit them. So they won't apply for forgiveness in 2020. Can they deduct the expenses on their 2020 income tax return? If so and there is no change and the loan in forgiven in 2021 then what do we do with the 2020 tax returns? Will the 2020 tax returns need to be amended after the PPP loan is forgiven? What about penalties for underpayment of estimated taxes?

As I was writing this there was an update on this question from the IRS in Revenue Ruling 2020-27. This revenue ruling directs that a taxpayer that received a PPP loan and incurred qualified expenses which qualify for that portion of the loan to be forgiven can not deduct those expenses if the taxpayer reasonably expects to receive forgiveness of the covered loan based on the otherwise deductible expenses. The ruling presents two examples of businesses that apply for loan forgiveness in 2020 but the loan isn't forgiven until 2021 and a business that does not apply for forgiveness until 2021.  The analysis includes the following statement:

In both Situation 1 and Situation 2, A and B each have a reasonable expectation of reimbursement. At the end of 2020, the reimbursement of A’s and B’s eligible expenses, in the form of covered loan forgiveness, is reasonably expected to occur – rather than being unforeseeable – such that a deduction is inappropriate.

Now should business owners estimate income taxes based on this ruling just released. Again, it is late November and there is still uncertainly in the market. It would seem conservative to approach estimated payments based on the revenue ruling 2020-27 and not plan on being able to deduct expenses paid with PPP loan proceeds that are likely to be forgiven. It would have been better to have this knowledge ahead of time. 

Unknowns and Banks

One of my clients felt pressure from his bank to proceed with applying for forgiveness of his PPP loan. To him it sounded like the bank was saying the forgiveness and the timing of the forgiveness would not make no difference. My client thought his banker was saying it would not matter if his loan was forgiven in 2019 or 2020 and he would be able to deduct the non-payroll expenses paid with the forgiven PPP loan proceeds and not the payroll. I haven't seen that anywhere and who knows if my client understood what the banker was trying to say but the result is a lot of confusion and frustration. 

Different Tax Implications for Self-Employed Business Owners and Other Entity Types

It seems that self-employed persons who took out PPP loans could use the proceeds as owner compensation replacement. This is not a deductible expense so it appears the self-employed business owners can take the PPP loan proceeds without them being taxable and they don't lose any deductions. Was it the intent of the CARES Act for the self-employed to receive advantaged tax treatment?

Reconciling Payroll Wages and Taxes

One way of auditing wages and payroll taxes is to compare the business income tax return with its payroll tax returns. Now, if the payroll paid with forgiven PPP loans are not deductible on the federal income tax return what will happen when the automated IRS program compares the wages on the two returns. How many notices will be sent out to businesses to fix the discrepancy? 

What We Know Today

There is a lot we don't know and we are waiting to see what clarifications we get. The issues and implications of this situation are numerous. The emotions and stress of business owners are very real and the focus for business owners is being taken away from pursuing the ongoing profits and sustainability of their businesses. At least that is what I am hearing and seeing.

From the Front Row

With a front row seat to the action in the business community I have gained a lot of insight over the years. Most of my clients are dynamic business owners and investors. My most successful clients have regular discussions with me throughout the year. It is valuable to have someone you trust to discuss these matters with. I charge my clients enough for doing their tax returns and typically don't charge them for the conversations during the year. If they have a special project that they want my help they will pay for that but the conversations are typically free for ongoing clients. Along with these conversations this year there has been the expression of their frustration with the PPP loans that they took out. They have a reason to be frustrated and hopefully soon we will get the income taxation issues cleared up. But here we are, almost at the end of November 2020, and we still don't have enough information to do good planning and estimating income tax payments. 

Help in Uncertain Times

In uncertain  times like these it helps to have someone you can talk to about your business and the implications of these issues.  I, the CPA Superhero, enjoy having conversations with my clients throughout the year. Contact me today using my email address below to arrange an initial consultation to discuss your business and your tax and financial goals.



Jeff Haywood, CPA
The CPA Superhero
jeff.jhtaxes@gmail.com





Sources:

Congress blasts IRS for limits on forgiven PPP loan tax breaks - AccountingToday

IRS Notice 2020-32

IRS Revenue Ruling 2020-27

IRS section 265 see page 13-5

Senate Bill 3612

Posts - IRS Collection Issues and Options:






Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

Abatement of Penalties



I previous posted an article about late filing penalties for business returns. Those penalties are significant and taxpayers often pay them not knowing it may be possible to get some relief or abatement of those penalties. 

First Time Penalty Abatement

Per the IRS you may be eligible for their First Time Penalty Abatement program if you meet the following requirements:

  • You didn’t previously have to file a return or you have no penalties for the 3 tax years prior to the tax year in which you received a penalty.
  • You filed all currently required returns or filed an extension of time to file.
  • You have paid, or arranged to pay, any tax due.

In addition to possible getting penalties abated, you may also get relief from interest on those penalties. Here is a quote from the IRS:

Reasonable Cause 

If their were circumstances beyond your control that caused you to incur penalties you may also qualify for relief. Here is a quote from the IRS:

The same IRS post mentions the following penalties are eligible for relief:

  • Failing to file a tax return
  • Failing to pay on time
  • Failing to deposit certain taxes as required
  • Other penalties as applicable. 

In Practice

The abatement of penalties may be available to a taxpayer but in practice an IRS representative probably will not mention these provisions when discussing what the taxpayer owes. The expression "if you don't ask for it you probably won't get it" certainly applies here. There is also some nuisance strategy in applying for or requesting penalty abatement. In many cases the amounts involved may be significant. Also, even if you have paid penalties in the past you still may be able to get a refund of those penalties paid. I help taxpayers get relief from penalties as well as make arrangements to pay taxes owed or in some cases negotiate a settlement for less than the amount due. For help getting relief from penalties and for help with your IRS tax issues and state issues use my email below to contact me to arrange an initial consultation. I charge $500 for the consultation but I will apply that initial consultation fee to any of my fees for services if you choose to use me to help you with your tax issues. 



Jeff Haywood, CPA
The CPA Superhero
jeff.jhtaxes@gmail.com





Sources:

IRS Penalty Relief Due to First Time Penalty Abatement or Other Administrative Waiver

IRS First Time Penalty Abatement Policy

Posts - IRS Collection Issues and Options:






Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

You Can Expect To Hear From the IRS Soon - Balance Due Notices

 




You may have been wondering why you have not heard from the IRS about your balance due. Not only is the notice "in the mail" they are arriving in mailboxes. I have had clients contact me this week about receiving balance due notices and other notices too. The IRS announced on October 23,2020 that they will resume sending out 500 series balance due notices and they are already doing just that.

What are 500 series balance due notices? In the announcement from the IRS it describes three different types of notices:

The CP501 notice alerts individual taxpayers that they still have a balance due and what their options are

the CP503 alerts them that the IRS hasn't heard from them and they may be subject to a lien if they don't pay. 

The CP504 alerts taxpayers that they must pay their balances immediately or possibly face a levy of their state income tax refunds. 

Why are these notices sent out? The announcement explained:

These series of notices are generally sent to taxpayers if they don't respond to or pay their initial notice and demand CP14.

The announcement also offers encouragement for those who are not able to pay in full to:

consider available payment options as penalties and interest continue to accrue.

If you need help because you can not full pay the amount you owe to the IRS, I would be glad to help you. I help taxpayers to make payment arrangements with the IRS like installment agreements, offers in compromise, and other arrangements. 

Note too that the IRS initiative to contact high income individuals that have not filed back tax returns remains a high priority. If you are in this category it is in your best interest to act now. I too can help non-filers with filing and making payment arrangements. See my post on this initiative here. 

It is always best to act quickly to take care of or make arrangements to pay your balance due and file your past due tax returns even if you can't pay in full now. You have options but over time you can lose some of those options and in addition penalties and interest continue to accumulate. No doubt this is stressful situation and I can help you with the IRS. If you reside or travel outside the U.S. and you owe back taxes your passport can also be jeopardy.

For help filing your back tax returns and potentially representing you before the IRS and the states to work out payment arrangements for your amounts due feel free to contact me via email to arrange an appointment to discuss your situation. My email address is found below.



Jeff Haywood, CPA
The CPA Superhero
jeff.jhtaxes@gmail.com





Posts - IRS Collection Issues and Options:






Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns.

bAD DEBT Expense

Hear me out please. I am going to address bad debt expense to clear up a common misconception and hopefully I can write this an understandab...