Gross Mendelsohn Blog | Service Businesses

Inflation Reduction Act of 2022: Key Highlights

By: Hajar Nassibi September 21, 2022

President Joe Biden recently signed the Inflation Reduction Act of 2022 into law. The new legislation intends to curb inflation by decreasing the amount of money the government spends, imposing new streams of revenue and lowering both healthcare and energy bills for Americans. The 755-page bill has three major provisions. So, to help break it down, let’s take a look at these key provisions and see what each entails.

Journal Entries to Account for Operating Leases Under the New Lease Standard

By: Maria Macera September 20, 2022

The new lease accounting standard is effective for private companies and nonprofits for fiscal years beginning after December 15, 2021. This new accounting rule requires organizations to report their operating leases on the balance sheet. This will require some new journal entries. Is your organization ready? To help accounting teams at businesses and nonprofits, here are some of the basic journal entries you’ll need to use to account for operating leases under the new lease standard.

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The Labor Crisis: Where Are All the Workers?

By: Kevin Connelly September 12, 2022

When I ask business owners about the challenges facing their business, there is one common theme that runs across all industries — the labor dilemma. By now, we have all experienced the effects of the “Great Resignation.” Local businesses have shortened operating hours, closed on certain days or reduced menu offerings because they simply cannot find enough workers. Some clothing retailers have even closed dressing rooms, citing being short-staffed as the reason. Where are all the workers?

Late Filing Penalties to be Waived for Some Taxpayers

By: Charles Monroe September 01, 2022

Certain late tax filers are about to see some relief. The IRS is abating the late filing penalties for various tax returns for 2019 and 2020 that were filed late or have not yet been filed. This announcement came on August 24, 2022, when the IRS issued Notice 2022-36. Let’s take a look at why penalties are being waived, which tax returns are affected and what you can expect next.

Maryland Raises Business Personal Property Tax Exemption

By: David Leipnik August 18, 2022

The Maryland State Department of Assessments and Taxation (SDAT) made business owners very happy as House Bill 268 (HB268) has officially taken effect. This legislation increases the exemption amount of personal property eligible to be taxed. The exemption has gone from $2,500 to $20,000 for businesses, and from $10,000 to $20,000 for at-home businesses. As an extension of legislation HB90, which exempts from personal property valuation and taxation if the total cost of the personal property was less than $2,500, this new legislation is said to save $44.2 million in taxes for 14,217 Maryland businesses by increasing the exemption limit to $20,000.

New Lease Standard: Tips for Implementation

By: Marie Calabrese August 01, 2022

The new lease standard is finally here and effective for all private companies and nonprofits for years beginning after December 15, 2021. After years of discussion and several delays, it’s important for private companies and nonprofits to start preparing for the new lease standard. That’s why we created a list of tips and best practices to get your organization headed down the right path toward a successful implementation of the new lease standard, also known as Accounting Standards Codification (ASC) 842, Leases.