All insights by: Kruggel Lawton CPAs

Help When Needed: Apply the Research Credit Against Payroll Taxes

Here’s an interesting option if your small company or start-up business is planning to claim the research tax credit. Subject to limits, you can elect to apply all or some of any research tax credits that you earn against your payroll taxes instead of your income tax. This payroll tax election may influence some businesses Read More »

IRS Announces Midyear Increase to Mileage Reimbursement Rate

This summer, the IRS announced a mid-year increase to the optional standard mileage to help taxpayers using their personal vehicles for business and certain other purposes. Effective July 1, 2022, the reimbursement rate will increase 4 cents to 62.5 cents per mile. Medical and moving expense rates will also see an increase of four cents Read More »

Businesses: Prepare for the Lower 1099-K Filing Threshold

Businesses should be aware that they may be responsible for issuing more information reporting forms for 2022 because more workers may fall into the required range of income to be reported. Beginning this year, the threshold has dropped significantly for the filing of Form 1099-K, “Payment Card and Third-Party Network Transactions.” Businesses and workers in Read More »

What Charitable Givers Need to Know About Taxes

Although most charitable donors aren’t primarily motivated by potential tax breaks, they still need to know how donations affect their taxes. It’s important for your not-for-profit to educate them — particularly as tax laws change. For example, in 2020 and 2021, even nonitemizers were allowed to deduct up to $300 and itemizers could deduct cash Read More »

Indiana Residents to Receive Automatic Taxpayer Refund

  Under Indiana’s “Use of Excess Reserves” law, many Hoosiers will receive a one-time taxpayer refund later this year. While the Automatic Taxpayer Refund is separate from any individual income tax refund, many Indiana resident’s will receive $125, with married couples filing jointly receiving $250. The state is returning $545 million to Hoosiers after ending Read More »

Tips to Prepare for Your Nonprofit’s Year-End Audit

Preparing for a year-end audit can be extremely time consuming, but with regular maintenance you can make the process much smoother. Here are five tips to help you avoid unnecessary stress during your year-end audit. Document any internal control changes With many organizations transitioning to hybrid or remote working environments, it is important to make Read More »

Fully Deduct Business Meals This Year

The federal government is helping to pick up the tab for certain business meals. Under a provision that’s part of one of the COVID-19 relief laws, the usual deduction for 50% of the cost of business meals is doubled to 100% for food and beverages provided by restaurants in 2022 (and 2021). So, you can Read More »

2022 Q2 Tax Calendar: Key Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines that apply to businesses and other employers during the second quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing Read More »

Important Tax Aspects of Operating Your Business As A Sole Proprietor

If you’re in business for yourself as a sole proprietor, or you’re planning to start a business, you need to know about the tax aspects of your venture. Here are eight important issues to consider: You report income and expenses on Schedule C of Form 1040. The net income is taxable to you regardless of Read More »

Can You Deduct the Costs of a Spouse on a Business Trip?

If you own your own company and travel for business, you may wonder whether you can deduct the costs of having your spouse accompany you on trips. The rules for deducting a spouse’s travel costs are very restrictive. First of all, to qualify, your spouse must be your employee. This means you can’t deduct the Read More »

Michigan Department of Treasury to Administer Afflicted Business Relief Grant Program

Under the Afflicted Business Relief (ABR) Grant Program, the Michigan Department of Treasury will be administering $409 million to help Michigan businesses that experienced financial hardship due to Covid-19. Eligibility Requirements Michigan businesses that were in operation on October 1, 2019, are eligible to apply for an ABR grant if: Your business satisfies all of Read More »

Abandoned 401(k) Accounts and the Great Resignation

The trend of U.S. workers leaving their jobs and employers struggling with high levels of employee turnover continues to gain momentum. Another 4.5 million U.S. workers quit their jobs in November alone, according to data from the U.S. Bureau of Labor Statistics. Meanwhile, the number of job openings in the United States remains elevated at Read More »

Handle Your Nonprofit’s Restricted Gifts with Care

Most not-for-profits encourage donors to make unrestricted contributions that will give the organization flexibility to use the money where it’s needed most. But there will always be some donors who place restrictions on their gifts — and these require a higher level of responsibility. If your nonprofit fails to use a restricted donation as intended, Read More »

Entrepreneurs and Taxes: How Expenses are Claimed on Tax Returns

While some businesses have closed since the start of the COVID-19 crisis, many new ventures have launched. Entrepreneurs have cited a number of reasons why they decided to start a business in the midst of a pandemic. For example, they had more time, wanted to take advantage of new opportunities or they needed money due Read More »

Cast Your Vote for Kruggel Lawton!

While it may only be the first month of the new year, Kruggel Lawton CPAs has been nominated for four different awards! Please show your support for the firm and our accountants by voting for Kruggel Lawton in the following categories: – Northwest Indiana Business Magazine’s Best Accounting Firm in Northwest Indiana – Northwest Indiana Read More »

Michiana Benchmark Business Index Cools Off in 4th Quarter

DOWNLOAD PDF: Q4 2021 Michiana Benchmark Business Index by Kruggel Lawton The fourth quarter 2021 Michiana Benchmark Business Index, compiled by the certified public accounting and consulting firm of Kruggel Lawton CPAs, declined from the record high level set in the previous period. The fourth quarter Benchmark Index was 74.83 out of a maximum possible Read More »

Nonprofit Budgeting Ideas for Uncertain Times

Budgeting, like many other things, was generally easier before COVID-19. Even though the pandemic isn’t over and much remains uncertain, nonprofits need to plan their financial needs and project financial resources. But you might be able to make the budgeting process more effective by trying a new approach — for example, a rolling budget — or by Read More »

Will the standard business mileage rate go up in 2022? Yes!

After two years of no increases, the optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up in 2022 by 2.5 cents per mile. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup or panel truck will Read More »

Businesses with Employees Who Receive Tips May Be Eligible for a Tax Credit

If you’re an employer with a business where tipping is customary for providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. Basics of the credit The FICA credit applies with respect to tips that your employees Read More »

Michigan Moves Quickly to Implement Pass-through Entity Tax for 2021

Authors: Long Pham, CPA, and Paul Erickson On December 20, 2021, Michigan became the most recent state to adopt an elective Pass-Through Entity (PTE) tax. Under the PTE tax, Michigan pass-through entities may elect to pay tax at the entity level, effective retroactively for tax years beginning on or after January 1, 2021. The owners Read More »

2022 Q1 Tax Calendar: Key Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. January Read More »

IRS Increases Annual Exclusion for Gifts for Calendar Year 2022

The IRS recently released Revenue Procedure 2021-45 announcing the tax year 2022 annual inflation adjustments. Procedure 2021-45 details more than 60 tax provisions, including the tax rate schedules and other tax changes. One of the provisions includes an increase to the annual exclusion from gift tax. For calendar year 2022, the first $16,000 of gifts Read More »

IRS Issues Guidance for Retroactive Termination of the Employee Retention Credit

On December 6, the IRS issued Notice 2021-65 to offer employers guidance on the retroactive end date of the Employee Retention Credit (ERC). Previously, the ERC was expected to be discontinued on Dec. 31, 2021, but with the enactment of the Infrastructure Investment and Jobs Act in November of this year, it was retroactively discontinued Read More »

Small Businesses: There Still May be Time to Cut Your 2021 Taxes

Don’t let the holiday rush keep you from considering some important steps to reduce your 2021 tax liability. You still have time to execute a few strategies. Purchase assets Thinking about buying new or used equipment, machinery or office equipment in the new year? Buy them and place them in service by December 31, and you Read More »

If You Traded or Sold Any of Your Cryptocurrency, You’ll Need to Report it

The IRS is getting serious about taxing cryptocurrency.  Cryptocurrency is treated as property, and taxes could be owed when it’s sold or exchanged. Additionally, if someone is paid in cryptocurrency, the payee is responsible for paying the income tax. If your only crypto activity came from purchasing virtual currency, you don’t have to include that on your tax return. Because cryptocurrency Read More »

President Biden Expected to Sign Bill Ending the ERTC Early

The Employee Retention Tax Credit (ERTC) may come to an end three months early if the bipartisan infrastructure bill that the House passed over the weekend is signed by President Biden. What does this mean for employers? The $1.2 trillion bill, formally known as the Infrastructure Investment and Jobs Act, includes a tax provision that Read More »

Kruggel Lawton CPAs Announces Promotions

Kruggel Lawton CPAs is delighted to announce the promotion of several of its professionals in the firm. Nicole Hanlon, CPA is a Senior Staff Accountant in the firm’s South Bend, Ind. office focusing on audits along with corporate and individual tax preparation. Nicole received her undergraduate degree in Accounting from Grace College. In her free time, Nicole Read More »

Michiana Benchmark Business Index Continued to Increase in Third Quarter

DOWNLOAD PDF: Q3 2021 Michiana Benchmark Business Index by Kruggel Lawton The third quarter 2021 Michiana Benchmark Business Index, compiled by the certified public accounting and consulting firm of Kruggel Lawton CPAs, rose again to another record high level. The third quarter Benchmark Index was 78.72 out of a maximum possible score of 100, an Read More »

Employers: The Social Security Wage Base Is Increasing In 2022

The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $147,000 for 2022 (up from $142,800 for 2021). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Background Information The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees and self-employed Read More »

Nonprofit Restructuring Has Become Easier, But Not Without Challenges

A few years ago, IRS Revenue Procedure 2018-15 changed the rules regarding nonprofit restructuring. If you’ve participated in a restructuring in the past, you’ll be relieved to know that in many cases it’s now easier. Even so, if recent challenges have led your organization to consider restructuring, it’s important to work with a professional advisor, Read More »

2021 Q4 Tax Calendar: Key Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2021. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Note: Read More »

HHS Announces The Availability Of $25.5 Billion in COVID-19 Provider Funding

The Biden-Harris Administration announced on September 10 that the U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), is making $25.5 billion in new funding available for health care providers affected by the COVID-19 pandemic. This funding includes $8.5 billion in American Rescue Plan (ARP) resources for providers Read More »

House Ways And Means Committee Advances Tax Legislation As Part Of Reconciliation Bill

After almost 40 hours of debate over four days, the House Ways and Means Committee on September 15 approved a tax package that would increase rates on high-net-worth individuals and corporations and affect cross-border activity and pass-through entities, advancing the tax elements of the Biden administration’s “Build Back Better” agenda. The package advanced on a Read More »

When does my company need an Employee Benefit Plan Audit?

Knowing when your organization needs to conduct an Employee Benefit Plan Audit can be difficult. Join Senior Manager Aaron O’Dell as he briefly discusses the criteria that indicate when it’s time to conduct an audit for your Benefit Plan. For more information about our Employee Benefit Plan Audit services call 574.289.4011 or visit klcpas.com/services/ebp-audits. To Read More »

Tax Breaks To Consider During National Small Business Week

The week of September 13-17 has been declared National Small Business Week by the Small Business Administration. To commemorate the week, here are three tax breaks to consider. 1. Claim bonus depreciation or a Section 179 deduction for asset additions Under current law, 100% first-year bonus depreciation is available for qualified new and used property Read More »

Additional Funding Available Through Manufacturing Readiness Grants

This summer, The Indiana Economic Development Corporation and Conexus Indiana announced that the Manufacturing Readiness Grants would be extended through June 2023. What does this mean for Hoosiers? An additional $20 million is available for Indiana companies investing in smart manufacturing technologies. The Manufacturing Readiness Grants, which debuted in 2020, was created to stimulate private Read More »

Want to find out what IRS auditors know about your business industry?

In order to prepare for a business audit, an IRS examiner generally does research about the specific industry and issues on the taxpayer’s return. Examiners may use IRS “Audit Techniques Guides (ATGs).” A little-known secret is that these guides are available to the public on the IRS website. In other words, your business can use Read More »

Is an LLC the right choice for your small business?

Perhaps you operate your small business as a sole proprietorship and want to form a limited liability company (LLC) to protect your assets. Or maybe you are launching a new business and want to know your options for setting it up. Here are the basics of operating as an LLC and why it might be Read More »

Aaron O’Dell Breaks Down What He Enjoys Most About Employee Benefit Plan Audits

In this video, Aaron O’Dell talks about how Kruggel Lawton’s ability to specialize in Employee Benefit Plans year-round allows the firm to build stronger relationships with our clients and quickly solve issues that arise in more complex plans. For more information about our Employee Benefit Plan Audit services call 574.289.4011 or visit klcpas.com/services/ebp-audits. To learn more Read More »

An S Corporation Could Cut Your Self-Employment Tax

If your business is organized as a sole proprietorship or as a wholly owned limited liability company (LLC), you’re subject to both income tax and self-employment tax. There may be a way to cut your tax bill by conducting business as an S corporation. Fundamentals of self-employment tax The self-employment tax is imposed on 92.35% Read More »

5 Ways Nonprofits can Prepare for an Audit

No nonprofit looks forward to annual audits. But regular maintenance and preparation specific to an impending audit can make the process less disruptive. We recommend taking the following steps. 1. Reconcile routinely You shouldn’t wait until audit time to reconcile accounts — for example, cash, receivables, pledges, payables, accruals and revenues. Reconcile general ledger account Read More »

Is Your Nonprofit Complying With Federal Procurement Requirements?

“Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” (Uniform Guidance) applies to all not-for-profits that accept federal funding. It has been updated and amended several times, most recently in 2020. So if you haven’t reviewed your own organization’s procurement policies lately, now’s a good time to ensure you’re in compliance. Pay attention Read More »

Q3 Tax Calendar: Key Deadlines for Businesses And Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2021. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Monday, Read More »

What You Should Know About the Employee Retention Tax Credit

If the Employee Retention Tax Credit (ERTC) has been on your mind lately, you’re not alone. Many companies are looking for guidance on how to unlock the ERTC to offset business losses. The following chart shows how the ERTC has evolved, from how the ERTC functioned in 2020 under the Consolidated Appropriations Act (CAA), to Read More »