If your business has outgrown the “scrappy startup” phase and is now firmly in the 7‑ and 8‑figure revenue range, your tax bill is probably growing faster than your confidence that it’s truly optimized. Many successful owners overpay the IRS not because they’re careless, but because their tax planning never evolved as the business did.
If you are a homecare agency, you should be aware of potential changes from Centers for Medicare and Medicaid Services that would require the payment of 80% of the Medicaid fees for services to the employees providing the services, defined as "... homemaker, home health aide, and personal care services on direct care worker compensation."
Based on IRS communication IR-2021-212, the IRS sent approximately 430,000 refunds totaling more than $510 million to taxpayers who paid taxes on unemployment compensation excluded from income for tax year 2020. Earlier this year, the IRS began its review of tax returns filed prior to the enactment of ARPA to identify the excludible unemployment compensation.
