2017 – 12/18

The IRS means business. If employers withhold tax from employee paychecks but fail to pay that amount over to the IRS, the penalty (called the Trust Fund Recovery Penalty) is 100% of the unpaid tax, and can be assessed personally against responsible persons. When one law firm’s three equal shareholders failed to pay the tax, they argued that the president/shareholder …

Withholding tables & W-4s

The release of certain 2018 federal withholding tables is likely to be delayed. The IRS said that several forms and publications affecting payroll, including the 2018 federal withholding tables, will probably be issued later than in recent years due to the likely enactment of the Tax Cuts and Jobs Act before year end. It’s likely that the new version of …

New Tax Law

New tax law is getting closer. Republican leaders say they have the votes needed for passage of the Tax Cuts and Jobs Act and it’s expected that the measure will be approved in both the House and Senate this week without any Democratic support. It will then be sent to President Trump for his anticipated signature. Among the many changes …

2017 – 12/15

The IRS announces standard mileage rates for 2018. The optional mileage allowance for owned or leased vehicles (including autos, vans or pickups) will climb 1 cent to 54.5 cents per mile for business travel. Employers also can use this rate for reimbursements to employees who supply their own autos for business use, and to value personal use of certain low-cost …

4 smart ways to cut business costs

Keeping costs under control is crucial in today’s challenging business environment. Without a doubt, one of the quickest ways for a business to cut costs is through staff reduction. But cutting jobs is not always the best cost-cutting strategy. Drastic job cuts can lead to a vicious cycle of reduced productivity, followed by even slower growth and decreased profitability. Replacing …

Your receipts are important: save them

When it comes to taking qualified deductions on your federal tax return, three things must happen:   This might be obvious to most people, but here are some typical areas where taxpayers often fall short. In the long run, these items could end up costing you plenty during tax filing season, and trigger IRS audits. A donation deduction of $250 …

If you’re thinking of selling your company, a proper appraisal is a necessary starting point

  Well before you’re ready to sell your company, you’ll want to determine its fair market value as a starting point for negotiations. Of course, obtaining a reasonably precise value for your business is often a complicated and time-consuming task. Accurate appraisals must weigh a variety of factors and incorporate numerous assumptions. The more precise the underlying numbers and suppositions, …

Five reasons to incorporate your business

  Most new businesses start with no thought about legal structure. In the eyes of the IRS, the default structure is a “sole proprietor,” in which your business profits are taxed on your personal tax return. This can serve you well to start, but there are several reasons you may want to consider incorporating as your business grows. 1) To …

Filed your 2016 tax return, but you probably still have questions.

Here are a few of the most common post-filing questions the IRS answers. Many taxpayers have questions after they file their tax returns. The IRS provides answers to many of them. These are a few of the most common. You can go online to check on your refund if it has been 24 hours since the IRS would have received …

Tax records – What you should keep

It’s that time of year when you are getting ready to sort out last year’s financial records and prepare for this year’s record-keeping. Keep records that directly support income or expense items on your tax return. For income, this includes W-2s, 1099s, and Form K-1s. Keep records of any other income you have received from other sources. It’s also a …