2019 – 02/15 I have been practicing as a CPA for more than 30 years and for as long as I can remember taxpayers have been able to deduct their donations to charity and other non-profit organizations. Is this still true under the new federal tax law? Well, the answer to that question is a…
2019-02/13 If you owe federal taxes, there are several ways to pay. While it’s always best to pay taxes when due to avoid penalties and interest, installment plans may be available for eligible taxpayers. Payments can be made electronically online, by phone, or with a mobile device and the IRS2Go app. Other options include cash,…
2019-02/12 Attention employers: The Social Security Administration (SSA) has announced it will be sending out “no match” letters this spring. The notices will be sent to businesses and employers that submit W-2 forms containing name and Social Security number combinations that don’t match SSA records. The letters will inform employers about the mismatches and tell…
2019-02/13 The IRS faced challenges as a result of the recent government shutdown, according to the National Taxpayer Advocate, Nina Olson. In a report to Congress, she said the shutdown affected IRS operations and taxpayer rights. It meant the IRS couldn’t release levies on taxpayer funds in extreme cases “to pay for basic living expenses…
Many companies, especially those that operate in areas prone to natural disasters, should consider business interruption insurance. Unlike a commercial property policy, which may cover certain repairs of damaged property, this coverage generally provides the cash flow to cover revenues lost and expenses incurred while normal operations are suspended because of an applicable event. But…
2019 – 02/08 Generally, a 10% penalty is imposed on distributions before age 59½ from an IRA if they aren’t a qualified rollover. Exceptions exist, such as when a taxpayer is disabled. In one case, the IRS denied a claim that a distribution was a nontaxable rollover and imposed the 10% penalty. The U.S. Tax…
2018 – 02/05 Tax rates get a closer look. The Congressional Budget Office just published a report entitled “Marginal Federal Tax Rates on Labor Income: 1962 to 2028.” The marginal tax rate is defined as “the percentage of an additional dollar of earnings that is unavailable to an individual because it is paid in [federal…
2019 – 02/08 Once you file your tax return, you may wonder: “Where’s my refund?” To find out, you can use the tools provided by the IRS. The best way to get information is to visit the IRS “Where’s My Refund?” site to access your refund status. You’ll need your Social Security number, filing status,…
Limited liability company (LLC) members commonly claim that their distributive shares of LLC income — after deducting compensation for services in the form of guaranteed payments — aren’t subject to self-employment (SE) tax. But the IRS has been cracking down on LLC members it claims have underreported SE income, with some success in court. SE…
Ask many entrepreneurs and small business owners to show you their financial statements and they’ll likely open a laptop and show you their bookkeeping software. Although tracking financial transactions is critical, spreadsheets aren’t financial statements. In short, financial statements are detailed and carefully organized reports about the financial activities and overall position of a business….
2019 – 01/30 The IRS reopened following the end of the federal government shutdown, and the 2019 tax return filing season began on Jan. 28. The tax agency issued a statement that “IRS employees are working hard to resume normal operations and help taxpayers as much as possible.” It has released some information for taxpayers…
2019 – 02/01 Employers must withhold Social Security and income taxes from their employees’ wages. Employers collect these taxes each pay period, and then remit them to the IRS on a quarterly basis. If an employer willfully fails to pay over collected taxes, the IRS can impose a “trust fund recovery penalty” from a responsible…
2019 – 02/04 Are you a farmer who’s getting your records together to file your 2018 tax return? The Tax Cuts and Jobs Act changed some tax rules that may affect you. And the IRS has put together a fact sheet that sums up the changes. They concern tax rates, accounting methods and capitalization and…
The flat 21% federal income tax rate for C corporations under the Tax Cuts and Jobs Act (TCJA) has been great news for these entities and their owners. But some fundamental tax truths for C corporations largely remain the same: C corporations are subject to double taxation. Double taxation occurs when corporate income is taxed…
With the year underway, your business probably has a strategic plan in place for the months ahead. Or maybe you’ve created a general outline but haven’t quite put the finishing touches on it yet. In either case, there’s a time-tested approach to refining your strategic plan that you should consider: a SWOT analysis. Let’s take…
