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Author: Debra Barcuch

IRA contributions- It’s not too late for a deduction on your 2024 taxes, but you need to hurry

Posted on by Debra Barcuch

If you’re getting ready to file your 2024 tax return and your tax bill is higher than you’d like, there may still be a chance to lower it. If you’re eligible, you can make a deductible contribution to a traditional IRA until this year’s April 15 filing deadline and benefit from the tax savings on your 2024 return.

Who’s eligible?

You can make a deductible contribution to a traditional IRA if:

  • You (and your spouse) aren’t an active participant in an employer-sponsored retirement plan, or
  • You (or your spouse) are an active participant in an employer plan, but your modified adjusted gross income (MAGI) doesn’t exceed certain levels that vary from year-to-year by filing status.

For 2024, if you’re a married joint tax return filer and you’re covered by an employer plan, your deductible traditional IRA contribution phases out over $123,000 to $143,000 of MAGI. If you’re single or a head of household, the phaseout range is $77,000 to $87,000 for 2024. The phaseout range for married individuals filing separately is $0 to $10,000. For 2024, if you’re not actively participating in an employer retirement plan but your spouse is, your deductible IRA contribution phases out with MAGI of between $230,000 and $240,000.

Deductible IRA contributions reduce your current tax bill, and earnings in the IRA are tax deferred. However, every dollar you withdraw is taxed (and subject to a 10% penalty before age 59½, unless one of several exceptions apply).

Traditional IRAs are different from Roth IRAs. You also have until April 15 to make a Roth IRA contribution. But while contributions to a traditional IRA are deductible, contributions to a Roth IRA aren’t. However, withdrawals from a Roth IRA are tax-free as long as the account has been open at least five years and you’re age 59½ or older. (There are also income limits to make contributions to a Roth IRA.)

If you’re married, you can make a deductible IRA contribution even if you don’t work. In general, you can’t make a deductible traditional IRA contribution unless you have wages or other earned income. However, an exception applies if one spouse has earned income and the other is a homemaker or not employed. In this case, you may be able to take advantage of a spousal IRA.

What are the contribution limits?

For 2024, if you’re eligible, you can make a deductible traditional IRA contribution of up to $7,000 ($8,000 if you’re age 50 or older). For 2025, these amounts remain the same.

In addition, small business owners can set up and contribute to Simplified Employee Pension (SEP) plans up until the due date for their returns, including extensions. For 2024, the maximum contribution you can make to a SEP is $69,000 (increasing to $70,000 for 2025).

How can you maximize your nest egg?

If you want more information about IRAs or SEPs, get the tax experts at The CJ Group on your side to help minimize your tax obligation and maximize your return. Or ask about tax-favored retirement saving when we’re preparing your return. At CJ, we’ll help protect your assets to ensure a healthy financial future. 

© 2025


Mergers & Acquisitions: 7 common M&A due diligence pitfalls

Posted on by Debra Barcuch

In 2025, global merger and acquisition (M&A) volume is expected to surge to the highest level in four years, according to Reuters. M&As require thorough due diligence to minimize risks and maximize long-term value. Some business combinations fail to achieve expected results due to financial missteps, overlooked liabilities and integration challenges.

Here’s an overview of seven common mistakes that inexperienced buyers might make when vetting deals — and how to avoid them:

1. Overlooking financial red flags. Buyers may fail to critically assess financial statements, which can lead to unexpected financial burdens. Pay special attention to potential tax liabilities, including unpaid payroll or sales tax, pending audits and evasive tax practices. Also, consider obtaining a quality of earnings report to help identify nonrecurring revenue, accounting inconsistencies and working capital needs. Site visits may help shed light on details you might not notice from reviewing the seller’s financials, such as old, obsolete or damaged equipment and inventory.

2. Missing hidden liabilities. Unreported liabilities may result in costly post-acquisition surprises. Forensic accounting techniques can help buyers identify and quantify off-balance-sheet items, such as undisclosed property liens, environmental violations, pending litigation and golden parachute clauses.

3. Overestimating projected financial results. Overly optimistic seller representations and financial projections can cause an unwary buyer to overpay. Carefully assess revenue and cash flow projections, including their underlying assumptions, to ensure they’re realistic and supported by historical trends. Stress-testing projections and evaluating customer concentration risks can help ensure revenue sustainability.

4. Failing to assess internal controls. Weak controls expose businesses to fraud and financial mismanagement. Issues such as lack of segregation of duties or poor inventory tracking can result in operational inefficiencies. Due diligence should include an internal control assessment to identify deficiencies and develop a proactive plan to correct them.

5. Misjudging tax implications. The structure of an M&A deal — whether an asset or stock purchase — can significantly affect tax outcomes. If properly structured, creative deal terms, such as earnouts and installment sales, may provide tax advantages. It’s critical to structure a deal that optimizes tax benefits while complying with state and federal tax regulations.

6. Rushing due diligence. Hasty due diligence can result in costly oversights. Buyers should conduct comprehensive, methodical reviews of financial statements, legal agreements and operational structures before finalizing deals. Reading the fine print of key contracts may help buyers anticipate restrictions related to franchise agreements, insurance policies, and equipment and property leases. Some agreements require renegotiation before closing.

7. Flying solo. Do-it-yourself due diligence can be risky. M&As are complex undertakings, and the financial nuances may be unfamiliar to business owners and managers.

If you’re contemplating buying or merging with another company, contact The CJ Group early in the M&A process. CJ’s experienced M&A experts can help you avoid financial surprises, negotiate favorable terms, address post-deal accounting and tax issues, and build long-term value.

© 2025


Business tax deduction limits have increased in 2025

Posted on by Debra Barcuch

A variety of tax-related limits that affect businesses are indexed annually based on inflation. Many have increased for 2025, but with inflation cooling, the increases aren’t as great as they have been in the last few years. Here are some amounts that may affect you and your business.

2025 deductions as compared with 2024

  • Section 179 expensing:
    • Limit: $1.25 million (up from $1.22 million)
    • Phaseout: $3.13 million (up from $3.05 million)
    • Sec. 179 expensing limit for certain heavy vehicles: $31,300 (up from $30,500)
  • Standard mileage rate for business driving: 70 cents per mile (up from 67 cents)
  • Income-based phaseouts for certain limits on the Sec. 199A qualified business income deduction begin at:
    • Married filing jointly: $394,600 (up from $383,900)
    • Other filers: $197,300 (up from $191,950)

Retirement plans in 2025 vs. 2024

  • Employee contributions to 401(k) plans: $23,500 (up from $23,000)
  • Catch-up contributions to 401(k) plans: $7,500 (unchanged)
  • Catch-up contributions to 401(k) plans for those age 60, 61, 62 or 63: $11,250 (not available in 2024)
  • Employee contributions to SIMPLEs: $16,500 (up from $16,000)
  • Catch-up contributions to SIMPLEs: $3,500 (unchanged)
  • Catch-up contributions to SIMPLE plans for those age 60, 61, 62 or 63: $5,250 (not available in 2024)
  • Combined employer/employee contributions to defined contribution plans (not including catch-ups): $70,000 (up from $69,000)
  • Maximum compensation used to determine contributions: $350,000 (up from $345,000)
  • Annual benefit for defined benefit plans: $280,000 (up from $275,000)
  • Compensation defining a highly compensated employee: $160,000 (up from $155,000)
  • Compensation defining a “key” employee: $230,000 (up from $220,000)

Social Security tax

Cap on amount of employees’ earnings subject to Social Security tax for 2025: $176,100 (up from $168,600 in 2024).

Other employee benefits this year vs. last year

  • Qualified transportation fringe-benefits employee income exclusion: $325 per month (up from $315)
  • Health Savings Account contribution limit:
    • Individual coverage: $4,300 (up from $4,150)
    • Family coverage: $8,550 (up from $8,300)
    • Catch-up contribution: $1,000 (unchanged)
  • Flexible Spending Account contributions:
    • Health care: $3,300 (up from $3,200)
    • Health care FSA rollover limit (if plan permits): $660 (up from $640)
    • Dependent care: $5,000 (unchanged)

Potential upcoming tax changes

These are only some of the tax limits and deductions that may affect your business, and additional rules may apply. But there’s more to keep in mind. With President Trump back in the White House and the Republicans controlling Congress, several tax policy changes have been proposed and could potentially be enacted in 2025. For example, Trump has proposed lowering the corporate tax rate (currently 21%) and eliminating taxes on overtime pay, tips, and Social Security benefits. These and other potential changes could have wide-ranging impacts on businesses and individuals. It’s important to stay informed.

Need expert tax guidance to help you maximize your business deductions? The CJ Group has helped thousands of clients achieve optimized financial outcomes through our dedicated tax specialty services. 

© 2025


Unlock Hidden Profits: How Segment Reporting Helps SMBs Make Smarter Financial Decisions

Posted on by Debra Barcuch

Unlock hidden profits: How segment reporting helps SMBs make smarter financial decisions

For small and mid-sized businesses (SMBs), understanding where profits come from—and where inefficiencies hide—can mean the difference between operating profitably or at a loss, and between stagnation and growth. Segment reporting is a powerful tool that provides deeper financial insights, helping business owners make data-driven decisions, optimize resources, and improve profitability.

What is segment reporting?

Segment reporting breaks down a company’s financial performance into separate business segments. These segments can be based on product lines, geographic regions, customer types, or revenue sources, providing greater transparency into which areas of the business drive success and which need improvement.

Who can benefit from segment reporting?

Is segment reporting only for the big guys?

Segment reporting, traditionally used by larger companies, can also significantly benefit small and mid-sized businesses (SMBs). By offering deeper insights into a company’s financial health, segment reporting helps businesses of all sizes make more informed decisions.

What types of SMBs can benefit from segment reporting?

SMBs that operate in multiple divisions, locations, or revenue streams often struggle to pinpoint exactly where they are making money—or losing it. Businesses that stand to gain the most from segment reporting include:

Multi-location businesses (e.g., restaurant groups, retail chains, franchises) looking to assess performance across different stores or regions.

Companies with multiple product lines (e.g., manufacturers, wholesalers, service providers) needing clarity on which offerings contribute the most to the bottom line.

SMBs seeking investors or bank financing, where financial transparency can improve credibility and funding opportunities.

How The CJ Group Helps SMBs Implement Segment Reporting

The CJ Group specializes in outsourced bookkeeping, accounting, and financial advisory services for SMBs, providing hands-on support in implementing segment reporting. Our structured approach ensures that financial data is accurately captured, analyzed, and used to drive more meaningful business decisions.

Step 1: Define Your Business Segments

We start by identifying the most meaningful way to segment your financial data based on your industry and operations. Common segmentation methods include:

  • Revenue by location, department, or region
  • Profitability by product line or service category
  • Performance by customer type (B2B vs. B2C)
Step 2: Establish Reporting Metrics for Each Segment

Once the segments are defined, we work with your team to determine the key performance indicators (KPIs) that matter most, such as:

  • Revenue and direct costs per segment
  • Gross margin and profitability per division
  • Operational efficiency metrics (e.g., unit sales, labor costs, overhead allocation)
Step 3: Align Accounting Systems for Accurate Tracking

We ensure that your accounting software (typically QuickBooks) is set up to track segment-level financials, creating:

  • A modified chart of accounts to categorize revenue and expenses by segment
  • Automated reporting structures that eliminate manual data entry errors
  • Staff training to ensure proper financial tracking at every level
Step 4: Generate and Analyze Segment Reports

Each month or quarter, we generate custom segment reports to help business owners:

  • Identify high-margin segments worth future investments
  • Spot underperforming areas for cost-cutting or restructuring
  • Compare financial trends across different parts of the business
Step 5: Make Data-Driven Business Decisions

With segment reporting in place, you and your leadership team can confidently:

  • Adjust pricing, marketing, and resource allocation based on profitability insights
  • Improve cash flow management by focusing on high-yield segments
  • Make informed decisions about growth, expansion, or restructuring
Step 6: Continuous Monitoring & Optimization

As your business evolves, so do your advisory and reporting needs. The CJ Group offers ongoing financial advisory to refine your segment reporting structure, ensuring it remains aligned with your company’s goals and financial strategy.

Ready to leverage the power of segment reporting?

If your SMB operates across multiple locations, product lines, or customer segments, segment reporting can unlock hidden opportunities for growth and efficiency. The CJ Group is here to help you implement a tailored reporting system, giving you greater financial clarity and control over your business performance.

Contact us today to schedule a consultation and start making data-driven financial decisions that fuel your business success!

Scott Bates, CPA, Managing Partner

Scott is a seasoned accounting and financial expert with over 30 years of experience helping businesses optimize their financial strategies. As a key member of The CJ Group, Scott specializes in outsourced accounting, financial reporting, and CFO advisory services, offering deep insights into business financial health. 

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DOL rolls out new self-correction tool for employer-sponsored retirement plans

Posted on by Debra Barcuch

Qualified employer-sponsored retirement plans have become a fundamental fringe benefit for many employers today. However, if your organization sponsors one, you know how complex administration and compliance can be. It’s not uncommon for plan sponsors (such as employers) or administrators to make mistakes.

In 2002, the U.S. Department of Labor (DOL) introduced the Voluntary Fiduciary Correction Program (VFCP). It allows plan sponsors and administrators to voluntarily correct violations of the Employee Retirement Income Security Act (ERISA) and Internal Revenue Code committed under qualified plans, including 401(k)s and pensions. On January 14, the DOL’s Employee Benefits Security Administration (EBSA), which runs the VFCP, announced an important update.

Program mechanics

Historically, the VFCP has enabled plan sponsors and administrators to correct eligible transactions within 19 categories. Examples include:

  • Participant loans that fail to comply with plan provisions for amount, duration or level amortization,
  • Purchase or sale of assets from or to parties in interest,
  • Sale and leaseback of property to sponsoring employers,
  • Purchase or sale of assets from or to nonparties in interest at more or less than fair market value,
  • Payment of duplicate, excessive or unnecessary compensation, and
  • Improper payment of expenses by the plan.

To correct these violations, the program requires applicants to follow a series of steps. First, plan sponsors or administrators must identify ERISA violations and determine whether they fall within VFCP-covered transactions. Second, sponsors or administrators need to obtain a qualified valuation of plan assets.

Third, applicants must calculate and restore any losses or profits with interest, if applicable, and distribute any supplemental benefits to participants. They also need to pay all expenses incurred for correcting erroneous transactions, such as appraisal costs and fees for recalculating participants’ balances.

Finally, plan sponsors or administrators must file an application with the appropriate EBSA regional office that includes documentation showing evidence of the corrective action taken. If plan corrections satisfy the VFCP’s terms, the EBSA will issue a “no action” letter. This essentially means that the agency accepts the correction and won’t impose any further sanctions.

Self-correct tool

This year’s update to the VFCP introduces what the EBSA calls the “Self-Correction Component” (SCC). It’s essentially a tool that allows plan sponsors or administrators to fix certain transactions without going through the traditional VFCP application process. Instead, self-correctors can submit an SCC Notice through the EBSA’s web tool and provide the required information.

Only two types of transactions are currently eligible for the SCC. They are:

  1. Delinquent participant contributions and loan repayments to pension plans, and
  2. Qualifying inadvertent participant loan failures.

An EBSA fact sheet provides further details about each type of transaction. On the fact sheet, the agency also notes that it has made several other improvements to the VFCP. For example, additional correction options will soon be available for prohibited loan transactions and prohibited purchase and sale transactions involving plans. As of this writing, the effective date for all the EBSA’s 2025 VFCP revisions — including the SCC — is March 17, 2025.

Complexity and challenges

The forthcoming addition of the SCC represents an important, if incremental, improvement to the VFCP. It also highlights the complexity of offering a qualified retirement plan and the challenges of complying with ERISA and the Internal Revenue Code.

Contact The CJ Group for help identifying and assessing the costs, risks and potential upsides of any fringe benefits you’re administering or considering. The CJ Group provides expertise in employee benefit audits to help your organization protect your investment.

© 2025


5 reasons to outsource your bookkeeping

Posted on by Debra Barcuch

 

Running a closely held business is challenging. Owners usually prioritize core business operations — such as managing employees, serving customers and bringing in new sales — over tedious bookkeeping tasks. Plus, the accounting rules can be overwhelming.

However, access to timely, accurate financial data is critical to your business’s success. Could outsourcing bookkeeping tasks to a third-party provider be a smart business decision? Here are five reasons why the answer might be a resounding “Yes!”

1. Lower costs and scalability

Your company could hire a full-time bookkeeper, but the expenses of hiring an employee go beyond just his or her salary. You also need to factor in benefits, payroll taxes, office space and equipment. It’s one more employee for you to manage — and accounting talent may be hard to find these days, especially for smaller companies. Plus, your access to financial data may be interrupted if your in-house bookkeeper takes sick or vacation time — or leaves your company.

With outsourcing, you pay for only the services you need. Outsourcing firms offer scalable packages for these services that you can dial up (or down) based on the complexity of your business at any given time. Outsourcing also involves a team of bookkeeping professionals, so you have continuous access to bookkeeping services without worrying about staff absences or departures.

2. Enhanced accuracy

Do-it-yourself bookkeeping can be perilous. Mistakes in recording transactions can have serious consequences, including tax assessments, cash flow problems and loan defaults.

Professional bookkeepers are trained to pay close attention to detail and follow best practices, minimizing the risk of errors. Outsourcing firms work with many companies and are aware of common pitfalls — and how to steer clear of them. They’re also familiar with the latest fraud schemes and can help your business detect anomalies and implement accounting procedures to minimize fraud risks.

3. Expanded access to expertise

The accounting rules and tax regulations continually change. It may be difficult for you or an in-house bookkeeper to stay updated.

With outsourcing, you have experienced professionals at your disposal who specialize in bookkeeping, accounting and tax. This helps ensure you comply with the latest rules, accurately report financial results and minimize taxes. In addition, as you encounter special circumstances, such as a sales tax audit or a merger, you can quickly call on other professionals at the same firm who can help manage the situation. If your provider lacks the necessary in-house expertise, the firm can refer you to another reputable professional to meet your special needs.

4. Improved timeliness

Timely financial data helps you identify problems before they spiral out of control — and opportunities you need to jump on before your competitors do. Outsourcing professionals typically use cloud-based platforms and set up automated processes for routine tasks, like invoicing and expense management. This improves efficiency and gives you access to real-time financial data to make better-informed decisions.

5. Reliable security protocols

Cyberattacks are a serious threat to any business. Stolen data can lead to monetary losses, operational downtime and reputational damage.

Many business owners are understandably cautious about sharing financial data with third parties. Reputable outsourced bookkeeping providers use advanced security measures, encryption and secure software to protect your financial data and client records from hackers. However, not all providers have the same level of security. So, it’s essential to carefully vet outsourcing firms to ensure that your company’s data is adequately protected.

Work smarter, not harder

At any given moment, business owners are being pulled in multiple directions by customers, employees, lenders, investors and other stakeholders. Outsourcing your bookkeeping helps alleviate some of that stress by ensuring your financial records are up-to-date, accurate and secure. 

Interested to know if outsourced accounting could be right for your organization?

Check out this cost comparison of hiring In-house accounting staff versus outsourcing.   

Learn more about The CJ Group’s best-in-class Outsourced Accounting services, including outsourced bookkeeping, outsourced controller services, CFO advisory services, and outsourced payroll services. 

© 2025 The CJ Group

 

Manufacturers: Cut costs by avoiding sales tax overpayments

Posted on by Debra Barcuch

Controlling costs is always at the forefront of manufacturers’ minds, but the current environment makes it particularly critical. With new tariffs going into effect and more being proposed by President Trump, imported goods that are vital to some manufacturers may soon be more expensive.

One way to help offset escalating costs is to avoid overpaying state sales taxes. This is an especially ripe time for manufacturers to reconsider their sales tax practices. Ongoing supply chain disruptions have already prompted some manufacturers to shift to new domestic suppliers that can expose them to additional sales tax regimes, and more tariffs could result in a further increase in the use of domestic suppliers.

Here are steps you can take to minimize sales tax overpayments.

Understand all the relevant exemptions

Manufacturers often can benefit from state sales tax exemptions. It’s important to realize, though, that the available exemptions vary — sometimes significantly — by state. You need to stay on top of the exemptions available to you in every state where you and your suppliers operate.

It isn’t enough to know that a jurisdiction offers a manufacturing exemption — you also need to know the specifics. For example, Illinois and Texas both exclude hand tools from the exemption. But Illinois explicitly includes graphic arts machinery and equipment within its exemption, and Texas includes safety apparel and work clothing purchased for employees. Louisiana allows a phased-in exemption on the “cost price” of tangible property consumed in the manufacturing process, specifically citing fuses, belts, felts, wires, conveyor belts, lubricants, motor oils, and repairs and maintenance of qualifying manufacturing machinery and equipment.

States also can vary on the definitions of similar statutory phrases, as well as activities that fall within the exemption. For example, Illinois extends its exemption to “production-related tangible personal property” used or consumed for research and development. Texas, however, excludes items used in the research and development of new products.

States may differ on when the manufacturing process begins and ends, too. In Illinois, the process begins with “the first operation or stage of production in the series.” Louisiana law states that manufacturing “begins at the point at which raw materials reach the first machine or piece of equipment involved in changing the form of the material.” These types of variances might make you eligible for larger exemptions in some states than others.

Don’t rely on your vendors

You shouldn’t assume your vendors are charging you the proper amount of sales tax. Often, vendors don’t have the time or resources to stay up to date on legislative developments that change the taxability of the items they sell.

You might not learn of discrepancies until you go through a reverse audit that reveals one or more vendors have been overcharging. In the meantime, you may have accrued a substantial amount of overpayments — money you could have invested elsewhere.

It’s worth noting, too, that vendors’ failure to keep up on sales tax developments also could mean you’re underpaying your sales tax. Ultimately, you’re responsible for paying the correct amounts, and underpayment can lead to hefty penalties.

Take a proactive stance on refunds

If you find that you’ve made overpayments, you must affirmatively request a refund. No state department of revenue will reach out to you on the matter.

The proper way to handle a refund request is yet another area that varies by state. Some states require the vendor to request the refund, while others allow vendors to assign their refund rights so the customer can apply for the refund. Texas requires purchasers without a sales and use tax permit to first ask the seller for a refund.

Don’t drag your feet on seeking refunds or wait until your overpayment is more significant. Refunds generally are subject to statutes of limitations. Moreover, a request for a large refund could end up triggering a state audit of your business.

Stay on the ball

As outlined above, minimizing your sales tax liability can be complex and time-consuming. We can help you get started with a reverse audit that uncovers past and ongoing overpayments, as well as explore options to automate the process and mitigate the risk of costly human error. 

Find out more about The CJ Group’s Audit and Tax Services for Manufacturers. 

© 2025


President Trump’s tax plan: What proposals are being discussed in Washington?

Posted on by Debra Barcuch

President Trump and the Republican Congress plan to act swiftly to make broad changes to the United States — including its federal tax system. Congress is already working on legislation that would extend and expand provisions of the sweeping Tax Cuts and Jobs Act (TCJA), as well as incorporate some of Trump’s tax-related campaign promises.

To that end, GOP lawmakers in the U.S. House of Representatives have compiled a 50-page document that identifies potential avenues they may take, as well as how much these tax and other fiscal changes would cost or save. Here’s a preview of potential changes that might be on the horizon.

Big plans

The TCJA is the signature tax legislation from Trump’s first term in office, and it cut income tax rates for many taxpayers. Some provisions — including the majority affecting individuals — are slated to expire at the end of 2025. The nonpartisan Congressional Budget Office estimates that extending the temporary TCJA provisions would cost $4.6 trillion over 10 years. For context, the federal debt currently rings in at more than $35 trillion, and the budget deficit is $711 billion.

In addition to supporting the continuation of the TCJA, the president has pushed to reduce the 21% corporate tax rate to 20% or 15%, with the goal of generating growth. He also supports eliminating the 15% corporate alternative minimum tax imposed by the Inflation Reduction Act (IRA), signed into law during the previous administration. It applies only to the largest C corporations.

Regarding tax cuts for individuals beyond TCJA extensions, Trump has expressed that he’s in favor of:

  • Eliminating the estate tax (which currently applies only to estates worth more than $13.99 million),
  • Repealing or raising the $10,000 cap on the deduction for state and local taxes,
  • Creating a deduction for auto loan interest, and
  • Eliminating income taxes on tips, overtime and Social Security benefits.

Finally, he wants to cut IRS funding, which would reduce expenditures but also reduce revenues. Without offsets, these plans would drive up the deficit significantly.

Possible offsets

The House GOP document outlines numerous possibilities beyond just spending reductions to pay for these tax cuts. For example, tariffs — a major plank in Trump’s campaign platform — may play a role.

The GOP document suggests a 10% across-the-board import tariff. Trump, however, has discussed and imposed various tariff amounts, depending on the exporting country. The 25% tariffs on Canadian and Mexican products, which were imposed earlier, have been paused until March 4. An additional 10% tariff on Chinese imports took effect on February 4.

In addition, Trump said tariffs on goods from other countries, including the 27-member European Union, could happen soon. While he maintains that those countries will pay the tariffs, it’s generally the U.S. importer of record that’s responsible for paying tariffs. Economists generally agree that at least part of the cost would then be passed on to consumers.

The House GOP document also examines generating savings through changes to various tax breaks. Here are some of the options:

The mortgage interest deduction. Suggestions include eliminating the deduction or lowering the current $750,000 limit to $500,000.

Head of household status. The document looks at eliminating this status, which provides a higher standard deduction and certain other tax benefits to unmarried taxpayers with children compared to single filers.

The child and dependent care tax credit. The document considers eliminating the credit for qualified child and dependent care expenses.

Renewable energy tax credits. The IRA created or expanded various tax credits encouraging renewable energy use, including tax credits for electric vehicles and residential clean energy improvements, such as solar panels and heat pumps. The GOP has proposed changes ranging from a full repeal of the IRA to more limited deductions.

Employer-provided benefits. Revenue could be raised by eliminating taxable income exclusions for transportation benefits and on-site gyms.

Health insurance subsidies. Premium tax credits are currently available for households with income above 400% of the federal poverty line (the amounts phase out as income increases). Revenue could be raised by limiting such subsidies to the “most needy Americans.”

Education-related breaks are also being assessed. The House GOP document looks at how much revenue could be generated by eliminating credits for qualified education expenses, the deduction for student loan interest and federal income-driven repayment plans. The GOP is also weighing the elimination of interest subsidies for federal loans while borrowers are still in school and imposing taxes on scholarships and fellowships, which currently are exempt.

The hurdles

Republican lawmakers plan on passing tax legislation using the reconciliation process, which requires only a simple majority in both houses of Congress. However, the GOP holds the majority in the House by only three votes.

That gives potential holdouts within their own caucus a lot of leverage. For example, deficit hawks might oppose certain proposals, while centrist members may prove reluctant to eliminate popular tax breaks and programs.

Republican representatives of all stripes are likely to oppose moves that would hurt industries in their districts, such as the reduction or elimination of certain clean energy incentives. And, of course, lobbyists will make their voices heard.

Stay tuned

The GOP hopes to enact tax legislation within President Trump’s first 100 days in office, but that may be challenging. We’ll keep you apprised of important developments.

The proposed tax changes are likely to impact tax returns for businesses and individuals in all tax brackets. If you need help with your tax strategy, The CJ Group is ready to help. 

© 2025


2025 tax calendar

Posted on by Debra Barcuch

To help make sure you don’t miss any important 2025 deadlines, we’re providing this summary of when various tax-related forms, payments and other actions are due. Please review the calendar and let us know if you have any questions about the deadlines or would like assistance meeting them.

January 31

Businesses: Provide Form 1098, Form 1099-MISC (except for those with a February 18 deadline), Form 1099-NEC and Form W-2G to recipients.

Employers: Provide 2024 Form W-2 to employees.

Employers: Report Social Security and Medicare taxes and income tax withholding for fourth quarter 2024 (Form 941) if all associated taxes due weren’t deposited on time and in full.

Employers: File a 2024 return for federal unemployment taxes (Form 940) and pay tax due if all associated taxes due weren’t deposited on time and in full.

Employers: File 2024 Form W-2 (Copy A) and transmittal Form W-3 with the Social Security Administration.

Individuals: File a 2024 income tax return (Form 1040 or Form 1040-SR) and pay any tax due to avoid penalties for underpaying the January 15 installment of estimated taxes.

February 10

Employers: Report Social Security and Medicare taxes and income tax withholding for fourth quarter 2024 (Form 941) if all associated taxes due were deposited on time and in full.

Employers: File a 2024 return for federal unemployment taxes (Form 940) if all associated taxes due were deposited on time and in full.

Individuals: Report January tip income of $20 or more to employers (Form 4070).

February 18

Businesses: Provide Form 1099-B, 1099-S and certain Forms 1099-MISC (those in which payments in Box 8 or Box 10 are being reported) to recipients.

Employers: Deposit Social Security, Medicare and withheld income taxes for January if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for January if the monthly deposit rule applies.

Individuals: File a new Form W-4 to continue exemption for another year if you claimed exemption from federal income tax withholding in 2024.

February 28

Businesses: File Form 1098, Form 1099 (other than those with a January 31 deadline), Form W-2G and transmittal Form 1096 for interest, dividends and miscellaneous payments made during 2024. (Electronic filers can defer filing to April 1.)

March 10

Individuals: Report February tip income of $20 or more to employers (Form 4070).

March 17

Calendar-year partnerships: File a 2024 income tax return (Form 1065 or Form 1065-B) and provide each partner with a copy of Schedule K-1 (Form 1065) or a substitute Schedule K-1 — or request an automatic six-month extension (Form 7004).

Calendar-year S corporations: File a 2024 income tax return (Form 1120-S) and provide each shareholder with a copy of Schedule K-1 (Form 1120-S) or a substitute Schedule K-1 — or file for an automatic six-month extension (Form 7004). Pay any tax due.

Employers: Deposit Social Security, Medicare and withheld income taxes for February if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for February if the monthly deposit rule applies.

April 1

Employers: Electronically file 2024 Form 1097, Form 1098, Form 1099 (other than those with an earlier deadline) and Form W-2G.

April 10

Individuals: Report March tip income of $20 or more to employers (Form 4070).

April 15

Calendar-year corporations: File a 2024 income tax return (Form 1120) or file for an automatic six-month extension (Form 7004). Pay any tax due.

Calendar-year corporations: Pay the first installment of 2025 estimated income taxes and complete Form 1120-W for the corporation’s records.

Calendar-year trusts and estates: File a 2024 income tax return (Form 1041) or file for an automatic five-and-a-half-month extension (six-month extension for bankruptcy estates) (Form 7004). Pay any tax due.

Employers: Deposit Social Security, Medicare and withheld income taxes for March if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for March if the monthly deposit rule applies.

Household employers: File Schedule H, if wages paid equal $2,700 or more in 2024 and Form 1040 isn’t required to be filed. For those filing Form 1040, Schedule H is to be submitted with the return and is thus extended to the due date of the return.

Individuals: File a 2024 income tax return (Form 1040 or Form 1040-SR) or file for an automatic six-month extension (Form 4868). (Taxpayers who live outside the United States and Puerto Rico or serve in the military outside these two locations are allowed an automatic two-month extension without requesting one.) Pay any tax due.

Individuals: Pay the first installment of 2025 estimated taxes (Form 1040-ES) if not paying income tax through withholding or not paying sufficient income tax through withholding.

Individuals: Make 2024 contributions to a traditional IRA or Roth IRA (even if a 2024 income tax return extension is filed).

Individuals: Make 2024 contributions to a SEP or certain other retirement plans (unless a 2024 income tax return extension is filed).

Individuals: File a 2024 gift tax return (Form 709), if applicable, or file for an automatic six-month extension (Form 8892). Pay any gift tax due. File for an automatic six-month extension (Form 4868) to extend both Form 1040 and Form 709 if no gift tax is due.

April 30

Employers: Report Social Security and Medicare taxes and income tax withholding for first quarter 2025 (Form 941) and pay any tax due if all associated taxes due weren’t deposited on time and in full.

May 12

Employers: Report Social Security and Medicare taxes and income tax withholding for first quarter 2025 (Form 941) if all associated taxes due were deposited on time and in full.

Individuals: Report April tip income of $20 or more to employers (Form 4070).

May 15

Calendar-year exempt organizations: File a 2024 information return (Form 990, Form 990-EZ or Form 990-PF) or file for an automatic six-month extension (Form 8868). Pay any tax due.

Calendar-year small exempt organizations (with gross receipts normally of $50,000 or less): File a 2024 e-Postcard (Form 990-N) if not filing Form 990 or Form 990-EZ.

Employers: Deposit Social Security, Medicare and withheld income taxes for April if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for April if the monthly deposit rule applies.

June 10

Individuals: Report May tip income of $20 or more to employers (Form 4070).

June 16

Calendar-year corporations: Pay the second installment of 2025 estimated income taxes and complete Form 1120-W for the corporation’s records.

Employers: Deposit Social Security, Medicare and withheld income taxes for May if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for May if the monthly deposit rule applies.

Individuals: File a 2024 individual income tax return (Form 1040 or Form 1040-SR) or file for a four-month extension (Form 4868) if you live outside the United States and Puerto Rico or you serve in the military outside those two locations. Pay any tax, interest and penalties due.

Individuals: Pay the second installment of 2025 estimated taxes (Form 1040-ES) if not paying income tax through withholding or not paying sufficient income tax through withholding.

July 10

Individuals: Report June tip income of $20 or more to employers (Form 4070).

July 15

Employers: Deposit Social Security, Medicare and withheld income taxes for June if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for June if the monthly deposit rule applies.

July 31

Employers: Report Social Security and Medicare taxes and income tax withholding for second quarter 2025 (Form 941) and pay any tax due if all associated taxes due weren’t deposited on time and in full.

Employers: File a 2024 calendar-year retirement plan report (Form 5500 or Form 5500-EZ) or request an extension.

August 11

Employers: Report Social Security and Medicare taxes and income tax withholding for second quarter 2025 (Form 941) if all associated taxes due were deposited on time and in full.

Individuals: Report July tip income of $20 or more to employers (Form 4070).

August 15

Employers: Deposit Social Security, Medicare and withheld income taxes for July if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for July if the monthly deposit rule applies.

September 10

Individuals: Report August tip income of $20 or more to employers (Form 4070).

September 15

Calendar-year corporations: Pay the third installment of 2025 estimated income taxes and complete Form 1120-W for the corporation’s records.

Calendar-year partnerships: File a 2024 income tax return (Form 1065 or Form 1065-B) and provide each partner with a copy of Schedule K-1 (Form 1065) or a substitute Schedule K-1 if an automatic six-month extension was filed.

Calendar-year S corporations: File a 2024 income tax return (Form 1120-S) and provide each shareholder with a copy of Schedule K-1 (Form 1120-S) or a substitute Schedule K-1 if an automatic six-month extension was filed. Pay any tax, interest and penalties due.

Calendar-year S corporations: Make contributions for 2024 to certain employer-sponsored retirement plans if an automatic six-month extension was filed.

Employers: Deposit Social Security, Medicare and withheld income taxes for August if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for August if the monthly deposit rule applies.

Individuals: Pay the third installment of 2025 estimated taxes (Form 1040-ES), if not paying income tax through withholding or not paying sufficient income tax through withholding.

September 30

Calendar-year trusts and estates: File a 2024 income tax return (Form 1041) if an automatic five-and-a-half-month extension was filed. Pay any tax, interest and penalties due.

October 10

Individuals: Report September tip income of $20 or more to employers (Form 4070).

October 15

Calendar-year bankruptcy estates: File a 2024 income tax return (Form 1041) if an automatic six-month extension was filed. Pay any tax, interest and penalties due.

Calendar-year C corporations: File a 2024 income tax return (Form 1120) if an automatic six-month extension was filed and pay any tax, interest and penalties due.

Calendar-year C corporations: Make contributions for 2024 to certain employer-sponsored retirement plans if an automatic six-month extension was filed.

Employers: Deposit Social Security, Medicare and withheld income taxes for September if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for September if the monthly deposit rule applies.

Individuals: File a 2024 income tax return (Form 1040 or Form 1040-SR) if an automatic six-month extension was filed (or if an automatic four-month extension was filed by a taxpayer living outside the United States and Puerto Rico). Pay any tax, interest and penalties due.

Individuals: Make contributions for 2024 to certain existing retirement plans or establish and contribute to a SEP for 2024 if an automatic six-month extension was filed.

Individuals: File a 2024 gift tax return (Form 709), if applicable, and pay any tax, interest and penalties due if an automatic six-month extension was filed.

October 31

Employers: Report Social Security and Medicare taxes and income tax withholding for third quarter 2025 (Form 941) and pay any tax due if all associated taxes due weren’t deposited on time and in full.

November 10

Employers: Report Social Security and Medicare taxes and income tax withholding for third quarter 2025 (Form 941) if all associated taxes due were deposited on time and in full.

Individuals: Report October tip income of $20 or more to employers (Form 4070).

November 17

Calendar-year exempt organizations: File a 2024 information return (Form 990, Form 990-EZ or Form 990-PF) if a six-month extension was filed. Pay any tax, interest and penalties due.

Employers: Deposit Social Security, Medicare and withheld income taxes for October if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for October if the monthly deposit rule applies.

December 10

Individuals: Report November tip income of $20 or more to employers (Form 4070).

December 15

Calendar-year corporations: Pay the fourth installment of 2025 estimated income taxes and complete Form 1120-W for the corporation’s records.

Employers: Deposit Social Security, Medicare and withheld income taxes for November if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for November if the monthly deposit rule applies.

Need expert tax help to minimize tax liabilities and ensure compliance? The CJ Group can help! Check out our Tax Services and Outsourced Accounting Services today.  

© 2025


Fraud risk assessment: What auditors watch for

Posted on by Debra Barcuch



Auditing standards require auditors to identify and assess the risks of material misstatement due to fraud and to determine overall and specific responses to those risks. Here are some answers to questions about what auditors assess when interviewing company personnel to evaluate potential fraud risks.

What’s on your auditor’s radar?

When planning audit fieldwork, your audit team meets to brainstorm potential company- and industry-specific risks and outline specific areas of inquiry and high-risk accounts. This sets the stage for inquiries during audit fieldwork. Entities being audited sometimes feel fraud-related questions are probing and invasive, but interviews must be conducted for every audit. Auditors can’t just assume that fraud risks are the same as those that existed in the previous accounting period.

Specific areas of inquiry under Clarified Statement on Auditing Standards Section 240, Consideration of Fraud in a Financial Statement Audit, include:

  • Whether management has knowledge of any actual, suspected, or alleged fraud,
  • Management’s process for identifying, responding to, and monitoring the fraud risks in the entity,
  • The nature, extent, and frequency of management’s assessment of fraud risks and the results of those assessments,
  • Any specific fraud risks that management has identified or that have been brought to its attention,
  • The classes of transactions, account balances or disclosures for which a fraud risk is likely to exist, and
  • Management’s communications, if any, to those charged with governance about its process for identifying and responding to fraud risks, and to employees on its views on appropriate business practices and ethical behavior.

Fraud-related inquiries may also be made of those charged with governance, internal auditors, and others within the entity. Examples of other people that an auditor might ask about fraud risks include the chief ethics officer, in-house legal counsel, and employees involved in processing complex or unusual transactions.

Why are face-to-face meetings essential?

Auditors meet in person with managers and others to discuss fraud risks whenever possible. Uncovering fraud involves recognizing nonverbal clues, so this is a crucial step.

Nuances such as an interviewee’s tone and inflection, speed of response, and body language provide important context to the spoken words. An auditor is also trained to notice signs of stress when an interviewee responds to questions, including long pauses before answering or starting answers over.

In addition, in-person interviews provide an opportunity for immediate follow-up questions. A video conference or phone call is the next best option when a face-to-face interview isn’t possible because it provides many of the same advantages as meeting in person.

How can you help with the process?

While an external audit doesn’t provide an absolute guarantee against fraud, it’s a popular — and effective — antifraud control. You can facilitate the fraud risk assessment by anticipating the types of questions we’ll ask and the types of audit evidence we’ll need. Forthcoming, prompt responses help keep your audit on schedule and minimize unnecessary delays. The CJ Group is ready to help your business with fraud risk assessment and audit needs. Check out our full line of Audit & Assurance, and Advisory Services.

© 2025


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