Around this time of year, many organizations are re-evaluating their annual budgets to improve profit margins and consolidate spending. One aspect of this process often includes exploring new or revised tax credits that can help offset the amount of money owed to the federal and state governments. Unfortunately, many organizations fail to recognize every tax credit they are eligible to receive. This oversight can happen for several reasons, including:

Whether you are an individual taxpayer or a small business owner, understanding your tax credit eligibility is important. The good news is that there are resources and processes designed to help you monitor and navigate the complex tax credit landscape.  Utilizing such tools can help capture 2017 credits as well as retroactive 2016 tax credit opportunities.

Both the federal and state government administer tax credit programs, each having defined eligibility requirements and refund amounts. In some instances, county and city governments even offer localized tax credits to encourage specific activities. The most common business tax credits nationwide include:

Taking advantage of tax credits from 2016 and the upcoming year can help your organization reduce its tax liability, lower its tax rate and improve the bottom line. For businesses that operate in multiple states, it is essential to understand the variations between credits because businesses based in certain states may be eligible to retroactively claim specific tax credits. For instance, 2016 tax credits that focus on job creation and property investments are still available.

Is your organization taking advantage of both state and federal tax credits? Consult with one of our tax professionals to ensure you are receiving the maximum amount due to you.

Equifax, one of the United States’ three major consumer credit reporting agencies, recently reported a breach that compromised the personal information of approximately 143 million Americans. The nature of this breach is particularly alarming because many consumers may not even know they are customers of the company. Equifax receives information from multiple sources including banks, lenders, credit card companies and retailers. Names, social security numbers, birth dates, addresses and driver’s licenses were among the information stolen from Equifax’s databases.

Credit card numbers for about 209,000 people were exposed, as was “personal identifying information” on roughly 182,000 customers involved in credit report disputes.

How to determine if you were one of the 143 million Americans affected

  • Visit www.equifaxsecurity2017.com to find out if your information was exposed. Click on the “Potential Impact” tab. You will be asked to enter your last name and last six digits of your Social Security number.
  • Whether or not your information was exposed, U.S. consumers can get a year of free credit monitoring. You have until November 20, 2017 to enroll.
  • Keep in mind, if you sign up for Equifax’s offer of free identity theft protection and credit file monitoring, you may be limiting your rights to sue and be forced to take disputes to arbitration.

Additional steps you can take

  • Review your transactions regularly. Monitor your credit card statements and credit report for any accounts or charges you don’t recognize. You can order a free report from each of the three credit bureaus once a year.
  • Consider placing a credit freeze, making it difficult for someone to open a new account in your name.
  • File your taxes early, before a scammer can.
  • Respond right away to letters from the IRS. Remember the IRS will never call.

We are closely monitoring this issue and will keep you informed of any new developments.

The IRS has announced that 401(k)s and similar employer-sponsored retirement plans can make loans and hardship distributions to victims of Hurricane Harvey and members of their families. This is similar to relief provided last year to Louisiana flood victims and victims of Hurricane Matthew.

Participants in 401(k) plans, employees of public schools and tax-exempt organizations with 403(b) tax-sheltered annuities, as well as state and local government employees with 457(b) deferred-compensation plans may be eligible to take advantage of these streamlined loan procedures and liberalized hardship distribution rules. Though IRA participants are barred from taking out loans, they may be eligible to receive distributions under liberalized procedures.

Retirement plans can provide this relief to employees and certain members of their families who live or work in disaster area localities affected by Hurricane Harvey and designated for individual assistance by the Federal Emergency Management Agency (FEMA). Currently, parts of Texas qualify for individual assistance. To qualify for this relief, hardship withdrawals must be made by Jan. 31, 2018.

More information about other tax relief related to Hurricane Harvey can be found on the IRS disaster relief page.