Riggs Tax & Accounting Services, LLC

We are currently accepting new accounting clients! Please contact us to learn more about how our comprehensive financial accounting services can benefit your business.

Happy New Year! We will begin tax work at the beginning of February! Looking forward to working with everyone again! Thank you to our clients for your continued business!

Happy New Year! We are truly grateful for our clients and are excited for another year working together!

Beginning in 2023, 50% of the cost of most business meals is deductible; not 100% like it was in 2021 and 2022.

Happy Holidays! We hope you have a wonderful weekend! We are grateful for all of you.

End of year business deductions:
Typically, easy expenses to pre-pay. Major examples:
__ Rent
__ Advertising
__ Liability & auto insurance
__ Health, dental & vision insurance
__ Dues & subscriptions
__ Telephone & cell phone
__ Postage
__ Sponsorships (i.e., charitable contributions)
__ Pick any other business expense… and you can pre-pay it up to 12 months.

IF YOU USE YOUR CREDIT CARD FOR BUSINESS EXPENSES: You get to deduct the expense when you charged it on your credit card. The date you pay your credit card is NOT the date you deduct the expense. Be sure you are deducting all you can this year, without overextending your credit.

Happy Thanksgiving to everyone! We're so grateful to work with so many amazing clients!

For 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. Otherwise, the limit is usually 50% of the cost of the meal.

To qualify for the enhanced deduction:
1. The business owner or an employee of the business must be present when food or beverages are provided.
2. Meals must be from restaurants, which includes businesses that prepare and sell food or beverages to retail customers for immediate on-premises or off-premises consumption.
3. Payment or billing for the food and beverages occurs after December 31, 2020, and before January 1, 2023.
4. The expense cannot be lavish or extravagant.

Grocery stores, convenience stores and other businesses that mostly sell pre-packaged goods not for immediate consumption, do not qualify as restaurants.

Employers may not treat certain employer-operated eating facilities as restaurants, even if they operate under contract by a third party.

Here’s what business owners need to know about certain costs:
1. The cost of the meal can include taxes and tips.
2. The cost of transportation to and from the meal isn’t part of the cost of a business meal.

Entertainment events
Business owners may be able to deduct the costs of meals and beverages provided during an entertainment event if either of these apply:
1. the purchase of the food and beverages occurs separately from the entertainment
2. the cost of the food and beverages is separate from the cost of the entertainment on one or more bills, invoices, or receipts.

Businesses should review the special recordkeeping rules that apply to business meals.

More information:
Publication 463, Travel, Gift, and Car Expenses

Here’s what businesses need to know about the enhanced business meal deduction | Internal Revenue Service Tax Tip 2022-91, June 14, 2022 — The IRS encourages businesses to begin planning now to take advantage of tax benefits available to them when they file their 2022 federal income tax return. This includes the enhanced business meal deduction.

Do you have employees in your business? Do you know about the Work Opportunity Tax Credit?

This long-standing tax benefit encourages employers to hire workers certified as members of any of ten targeted groups facing barriers to employment. The IRS notes that one of these targeted groups is long-term unemployment recipients who have been unemployed for at least 27 consecutive weeks and received state or federal unemployment benefits during part or all of that time. The WOTC is available for wages paid to certain individuals who begin work on or before Dec. 31, 2025.

The other groups include certain veterans and recipients of various kinds of public assistance, among others. Specifically, the 10 groups are:

Temporary Assistance for Needy Families (TANF) recipients,
Unemployed veterans, including disabled veterans,
Formerly incarcerated individuals,
Designated community residents living in Empowerment Zones or Rural Renewal Counties,
Vocational rehabilitation referrals,
Summer youth employees living in Empowerment Zones,
Supplemental Nutrition Assistance Program (SNAP) recipients,
Supplemental Security Income (SSI) recipients,
Long-term family assistance recipients and
Long-term unemployment recipients.

It's tax day! A little humor for you!