Category: Business Taxes

February 2025 Update: Corporate Transparency Act reporting requirements back in effect  Following the U.S. District Court for the Eastern District of Texas ruling on February 18, 2025, in Smith, et al. v. U.S. Department of the Treasury, et al., 6:24-cv-00336 (E.D. Tex.), the beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA) …

A 1031 exchange allows real estate investors to defer capital gains taxes when selling one property to buy another. However, specific actions during this process can create a “boot,” which is taxable. Knowing how these actions can trigger boot is key to maximizing the tax benefits of your exchange. In this article, we’ll review several …

Businesses across the country have been anxiously awaiting updates on their Employee Retention Credit (ERC) claims, and it appears the IRS is finally moving forward with processing these older claims. However, despite this progress, many companies are still not receiving their funds. Some valid claims are being denied, and others face demands for further verification—even …

Understanding which services are exempt from sales tax can help you manage your tax liability and avoid unnecessary tax payments. CPA Nerds will break down the specific services exempt from Michigan’s sales tax and how you can ensure compliance with state tax regulations.  Let’s look into the critical exemptions and the types of services that …

Tips for Michigan Backup Witholding When a contractor refuses to provide a tax ID number, businesses are indeed allowed and required to implement backup withholding as per IRS regulations. Backup withholding ensures that taxes are collected on income that would otherwise not be reported. Here is a detailed explanation of the steps businesses should take …

Employee benefit plans are vital for providing workers with retirement, health, and other benefits. Ensuring these plans are managed correctly and transparently is crucial for the well-being of participants and beneficiaries.  This article delves into the significance of employee benefit plan audits, the requirements and responsibilities associated with Form 5500, and the essential role of …

The Importance of Accurate Record-Keeping Running a small business in Michigan comes with its unique set of challenges, especially when it comes to managing taxes. To help local entrepreneurs navigate the complex landscape of tax obligations and opportunities, we’ve compiled a guide to avoiding common tax mistakes that can adversely affect your business. Accurate record-keeping …