As tax season 2022 is wrapping up, we wanted to say thank you for your continued support! We hope you have a happy, healthy, and enjoyable summer.

IRS Processing

The IRS continues to work through backlogs of unprocessed individual tax returns. A recent report stated that there were 16.4 million individual tax returns in inventory at the end of 2021. Processing of 2022 tax returns was handled a lot better by the IRS compared to 2021. Processing times and refunds were sent at faster pace. The IRS has a hiring goal of 5,000 people for 2022 to better equip the department in handling the ever-expanding responsibilities and work of the IRS.

Bookkeeping 101 Tip

Do you know the difference between what should be coded as charitable contributions (donations) and Marketing/Advertising expense? If the company receives any brand exposure as a result of the transaction, then the transaction should be coded to Marketing/Advertising expense. Charitable contributions do not result in any brand exposure for the company. Example: Company XYZ gives money to help sponsor an organized golf outing and as a result gets a Company XYZ poster placed on hole 18. Due to the Company XYZ brand recognition, this transaction should be coded to an Advertising/Marketing expense account.