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Important IRS Update: Significant Interest Penalty Increase for Tax Underpayments
The Internal Revenue Service (IRS) has recently announced a critical change that could significantly impact taxpayers who underpay their taxes. This update is particularly relevant as we approach the next tax filing season. Previously, the IRS charged a 3% interest penalty on estimated tax underpayments. However, this rate has now been increased to a substantial
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Will Inflation Hurt Stock Returns? Not Necessarily
Investors may wonder whether stock returns will suffer if inflation keeps rising. Here’s some good news: Inflation isn’t necessarily bad news for stocks. A look at equity performance in the past three decades does not show any reliable connection between periods of high (or low) inflation and US stock returns. Since 1993, one-year returns on
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Maximize Your Charitable Impact with These Four Strategies
As the year draws to a close, it’s a perfect opportunity to rethink how you give to charity. This is important for managing how much tax you pay and how much help reaches those in need. Here are four effective strategies: Need Guidance? Reach Out to Us! These strategies are just a starting point. There
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Business Succession Planning: Are You Failing To Value An Ongoing Business?
Even if the future of your business doesn’t include you or other family members, it’s worth planning for. Working with someone who understands the issues at play in business succession and business valuation is important for protecting the value of your organization. The sooner you can find a financial professional to help you, the better.
There are many components to creating a comprehensive business succession plan, but one that is often overlooked is valuing your ongoing business. If you don’t intend to step down from the company or sell it in the near future, it’s easy to overlook this as a crucial step.
Even if an owner is not contemplating an immediate transfer of a business or a sale, a professional valuation of the business can help to identify potential strengths and weaknesses that could all be incorporated into a business succession plan.
A proper business succession plan means thinking ahead about the future and also the other key people who may need to be involved in your business in order to help this company survive in the future if and when you do decide to depart.
A highly valued business could also generate estate tax ramifications that require advanced estate planning opportunities. Finally, a credible valuation could be vital for attracting key employees or even obtaining a loan.
You can think at a broader level about operations, business planning, marketing, legal and personnel when you have done the necessary legwork to value your business and have documented how this has potential impacts for your business succession plan as well.