The Tax Cuts and Jobs Act (TCJA) has changed the landscape for business taxpayers. That’s because the law introduced a flat 21% federal income tax rate for C corporations. Under prior law, profitable C corporations paid up to 35%. The TCJA also cut individual income tax rates, which apply to sole proprietorships and pass-through entities,…
We’ve reached the middle of the calendar year. So how are things going for your business? Conversationally you might say, “Pretty good.” But, analytically, can you put a number on how well you’re doing — or several numbers for that matter? You can if you choose and calculate the right key performance indicators (KPIs). 4…
2019 – 06/14 The tax code imposes a 10% penalty on the taxable amount of an early distribution from a qualified retirement plan. An early distribution is one made to an employee who hasn’t attained age 59-1/2. There are exceptions to avoid the 10% penalty, including if a distribution is used to pay qualified higher…
2019 – 06/17 Married couples filing joint tax returns are generally both responsible for the entire tax liability that should be reported on their income tax returns. Certain protections exist for “innocent spouses.” The Taxpayer First Act, which was passed by Congress on June 13 and is expected to be signed by the President, gives…
2019 – 06/11 Beware of tax-related scams to steal your identity and money. The IRS just issued a warning about “a spring surge of evolving phishing emails and telephone scams.” The agency is seeing two new scams. The first has been dubbed the “SSN hustle.” It involves scammers claiming to be able to suspend or…
Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2019. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. July…
Can your business become more profitable without venturing out of its comfort zone? Of course! However, adding new products or services may not be the best way for your business — or any company — to boost profits. Bottom-line potential may lie undiscovered in your existing operations. How can you find these “hidden” profits? Dig…
2019 – 06/10 U.S. taxpayers with an interest in or signing authority over certain foreign financial accounts must report those accounts on their tax returns. This applies to foreign financial accounts with aggregate value exceeding $10,000 at any time during 2018. Form 114, the Report of Foreign Bank and Financial Accounts (FBAR), must be electronically…
2019 – 06/10 Paying a hefty tax bill can be tough. But the IRS urges taxpayers who owe tax and haven’t filed their 2018 returns to act by Friday, June 14, to avoid a larger penalty. The failure-to-file penalty (generally 5%) is assessed when a taxpayer owes taxes and hasn’t filed a return or requested…
2019 – 06/07 A reminder: June 17 is the next deadline for those who make estimated tax payments. Self-employed individuals, retirees, investors and some individuals involved in the sharing economy are among those who often need to pay quarterly estimated taxes. That’s because all, or a substantial part, of their income isn’t subject to withholding….
2019 – 06/05 Planning your wedding? The IRS reminds you that it’s not all about cake and gifts. You’ll also be filing your first tax return as a married couple. To help you take the plunge, the IRS lists simple steps to follow. For example, check your withholding. You may need to have more (or…
Like most businesses, yours probably has a variety of physical assets, such as production equipment, office furnishings and a plethora of technological devices. But the largest physical asset in your portfolio may be your real estate holdings — that is, the building and the land it sits on. Under such circumstances, many business owners choose…
Is your business hiring this summer? If the employees come from certain “targeted groups,” you may be eligible for the Work Opportunity Tax Credit (WOTC). This includes youth whom you bring in this summer for two or three months. The maximum credit employers can claim is $2,400 to $9,600 for each eligible employee. 10 targeted…
2019 – 06/03 The IRS has issued a draft of its redesign of Form W-4, “Employee’s Withholding Allowance Certificate.” The revised form implements the changes affecting taxpayer withholding made by the Tax Cuts and Jobs Act. The form no longer uses the concept of withholding allowances tied to the personal exemption. Instead, it’s divided into…
2019 – 05/28 The IRS has issued inflation-adjusted Health Savings Account (HSA) figures for 2020. The new annual HSA contribution limit for an individual with self-only coverage will be $3,550 (up from $3,500 for 2019). For family coverage, the contribution limit will be $7,100 (up from $7,000 for 2019). HSA contributions can be made only…
