The IRS just released its audit statistics for the 2020 fiscal year and fewer taxpayers had their returns examined as compared with prior years. But even though a small percentage of returns are being chosen for audit these days, that will be little consolation if yours is one of them. Latest statistics Overall, just 0.5% of individual tax returns were audited in 2020. However, as in the past, those with higher incomes were audited at higher rates. For example, in 2020, 2.2% of taxpayers with adjusted gross incomes (AGIs) of between $1 million and $5 million were audited. Among the richest taxpayers, those with AGIs of $10 million and more, 7% of returns were audited in 2020. These are among the lowest percentages of audits Read More...
Archives for July 2021
Executive Order on Promoting Competition in the American Economy Summary
President Joe Biden today signed an executive order earlier today aimed at promoting competition and fairness throughout the economy. The order includes 72 directives that will be carried out by 12 federal agencies, many of which target the agricultural sector. For instance, it advises the U.S. Department of Agriculture (USDA) to offer livestock farmers greater recourse against corporations when they are treated unfairly, restructure the inequitable system that determines poultry growers' wages, and prevent corporations from retaliating against farmers who speak out about discriminatory conduct. It would also give farmers the right to repair their equipment – which many companies currently restrict – limit “Product of USA” labels Read More...
Single Audit Considerations: preparing for your post-pandemic federal compliance audit
Many organizations received significant funding under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, either directly from the U.S. Department of Treasury or through another entity, such as their state or county. In either case, the funds originate from the federal government, which means there are certain requirements that recipients must follow. Entities that expend $750,000 or more in federal funds in a given fiscal year are required to obtain a single audit, a type of audit governed by OMB through a set of rules known as “Uniform Guidance”. Because of the amount of federal grants available for pandemic relief in the past year, entities may require a single audit for the first time this year. Keep in mind that Read More...
The SECURE Act Brings Retirement Plan Changes
On December 20, 2019, President Trump signed a year-end spending package that included the long-awaited Setting Every Community Up for Retirement Enhancement Act (the “SECURE Act”), ushering in the most sweeping reform to retirement saving in the U.S. since the Pension Protection Act of 2006. The SECURE Act became effective on January 1, 2020, and it will inevitably affect many retirement savers, for better or worse. This act could have wide-ranging effects on the retirement planning landscape in the United States and here are a few of the most significant provisions that you should be aware of: Small Employer Credits to Expand Under the previous law, employers with 100 or fewer employees were entitled to an annual tax credit of up Read More...
More Pandemic Assistance for Dairy Farmers, Biofuel Producers, and Livestock Producers
The USDA is continuing its rollout of aid to segments of the agriculture industry impacted by the COVID-19 pandemic. Last month, Agriculture Secretary Tom Vilsack announced additional aid to agricultural producers and businesses as part of the USDA Pandemic Assistance for Producers initiative. Since January, USDA has allocated $11 billion to producers, as well as food and ag businesses. The USDA is committed to providing financial assistance to producers and critical agricultural businesses, especially those left out or underserved by previous COVID aid, this new round of funds will focus on several gaps and disparities in previous rounds of aid. These investments through USDA Pandemic Assistance will help our food, agriculture and Read More...