Under the BBA audit rules, the IRS no longer chases down individual partners for tax on audit adjustments. Instead, the partnership itself can be on the hook - leaving today’s partners paying for yesterday’s mistakes. This article breaks down how the rules work, including the imputed underpayment, the timing mismatch between the reviewed year and the adjustment year, the push-out election that can shift the burden back to reviewed-year partners, and provides some practice pointers.

The IRS has fundamentally changed how it audits partnerships - and every partnership, no matter how small, needs to pay attention. The Bipartisan Budget Act (BBA) created a centralized audit regime that shifts tax liability to the partnership itself, putting current partners at risk for past errors. This article explains the origin of the BBA, what it replaced, and the key actions every partnership should take to avoid costly surprises under the new audit rules.

How you pay yourself as a business owner isn’t just a paycheck decision - it’s a tax strategy. For S corporation owners, the IRS says you’re both an employee and a shareholder, which means balancing W-2 wages with profit distributions. Partnerships follow a different playbook, using draws and guaranteed payments instead of salaries. The right mix can lower payroll taxes, maximize retirement contributions, and keep you compliant. Here’s how to structure owner compensation for tax efficiency - and avoid costly mistakes.

Choosing between cash and accrual accounting can have a big impact on how you view the health of your business. While cash basis is simple and tracks money as it comes in and goes out, accrual accounting provides a fuller picture by matching income and expenses to when they’re earned or incurred. In this article, we’ll explore the strengths and drawbacks of each method, how they affect financial decision-making, and what business owners should consider when deciding which approach fits their goals.

In the spotlight: Soroban Capital Partners LP v. Commissioner - a pivotal Tax Court decision that unpacks the nuanced application of the partnership anti-abuse rule. This case dives into whether a partnership structure can be disregarded when it lacks economic substance and serves primarily to generate tax benefits. Our analysis explores the court’s rationale, and the implications for private equity fund structures and for the partners.

Independent truck drivers face unique tax burdens, especially with fuel taxes and shifting regulations. Learn how proactive planning can save money and avoid compliance issues on the road.

The end of the U.S. $800 de minimis rule means higher duties, more paperwork, and tighter cash flow for small business owners who rely on imports. While the policy was pitched as leveling the playing field, many small retailers, e-commerce sellers, and U.S. consumers will feel the squeeze first. Here’s what you need to know about the tax, accounting, and planning strategies to stay ahead.

Do you know where your business owes tax? In today’s post-Wayfair landscape, understanding nexus - the connection that triggers state tax obligations - is more important than ever. From physical presence to economic thresholds, affiliate relationships, and click-through referrals, states are expanding their reach. This article breaks down the types of nexus, what triggers them, and how pending federal legislation could reshape the rules again. Whether you sell online, offer remote services, or operate across state lines, this guide will help you stay informed and compliant.

Forming an LLC is a popular choice for small business owners seeking flexibility and protection, but many fall into common pitfalls that can jeopardize their success and compliance. From mismanaging taxes to overlooking key legal requirements, these mistakes can lead to costly consequences. In this article, we highlight the 10 most frequent mistakes LLCs make - and provide practical tips to help you avoid them, so your business stays on the right track.

What used to be a clever workaround is now a fast-track to audits, back taxes, and legal risk. With 1,500 vehicles under review, California is using plate readers, dealer data, and aggressive enforcement to close this costly tax loophole.