Accounting News

Friday, November 11, 2011
IRS Ruling on Bonuses

The IRS has issued a new ruling for deducting bonuses paid to employees. The ruling affects businesses using an accrual method. The bonus pool can be deducted even if it has not been determined who will get the bonus. This ruling will be especially helpful to financial firms that pay bonuses at the end of the fiscal year based on calender years. Full ruling.