Category Archives: Tax Services
An S Corporation Shareholder and an Officer or Employee? Avoid IRS Scrutiny with Reasonable Compensation
Work and play are pretty much the same thing, according to Mark Twain — just under different circumstances.
Work you get paid for. Or you should. And if you’re an S corporation shareholder who also works in the business (providing anything other than minimal services), the IRS will see that you do.
IRS rules require that you receive reasonable compensation for your work. Reasonable compensation in this context is wage income, not distributions or other nonwage payments. In other words, a reasonable (continue reading…)
Considering a Health Savings Account or Other Tax-Advantaged Health Plan? Understand Your Options
He must have meant it at the time. Benjamin Franklin apparently felt that “nothing is more fatal to health than an over care of it.”
But in current-day America, it’s increasingly apparent that nothing is more fatal to health than the lack of access to health care. A recent analysis by the Kaiser Family Foundation found that “the consequences of reduced access to care over time can be serious, including preventable hospitalizations, poor overall health, disability, and premature death.”
According to the (continue reading…)
Know How Long to Keep Those Digital or Paper Documents? Record Retention Guidelines for People, Businesses and Not-for-Profits
When it comes to saving things, there are really two kinds of people: Those who tend to save everything, forever. And those who throw it all away or delete it at the earliest possible moment — and sometimes before.
The same is often true for businesses and not-for-profit organizations. They can save too little or too much, for too long or not long enough.
So, when it comes to digital and paper records, which documents should you keep and for how long?
Although (continue reading…)
Posted in Closely Held + Family Business Practice, Distribution + Light Manufacturing Group, Emerging Businesses + Turnarounds, High Net Worth Practice, Hospitality, Restaurant + Lodging Group, Not-for-Profit Practice, Professional Practices Group, Real Estate Group, Retail Group, Tax Services, Technology Group, Uncategorized
Tagged Business Tax, Disaster Planning, Hardware/Software Systems, IRS, Operations, Personal Finances, Personal Tax
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Being Scammed? IRS Updates Dirty Dozen List of Worst Tax Scams for 2013
Someone, probably of the criminal persuasion, said that money spends the same whether you earn it or you scam it.
That might explain the growing incidence of tax-related scams—and why the IRS feels compelled to release a Dirty Dozen list of the the more common scams affecting U.S. taxpayers each year.
No doubt you’ve heard of identity theft and refund fraud. But, according to IRS Acting Commissioner Steven T. Miller, “The Dirty Dozen list shows that scams come in many forms. Don’t let a (continue reading…)
Posted in High Net Worth Practice, Personal Wealth Planning Services, Tax Services
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Claiming a Small Business Health Care Tax Credit? Estimator Tool Can Help Determine If You’re Eligible and For How Much
Need help in providing your employees with health care?
You may be eligible for a federal small business health care credit through December 31, 2013.
For-profit and not-for-profit organizations must satisfy three requirements to be eligible: fewer than 25 full-time-equivalent employees, average wages of less than $50,000 and a qualifying arrangement for employee health insurance coverage.
If you’re a qualifying for-profit business, the maximum credit is 35 percent of your share of the premiums for your employees. If you’re a not-for-profit organization, you (continue reading…)
Posted in Closely Held + Family Business Practice, Distribution + Light Manufacturing Group, Emerging Businesses + Turnarounds, Hospitality, Restaurant + Lodging Group, Not-for-Profit Practice, Professional Practices Group, Real Estate Group, Retail Group, Tax Services, Technology Group
Tagged Business Tax, Compensation, IRS, Legislation, Tax Credits + Incentives
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Know Your Total Tax Burden? You Could be Surprised: Try the Calculator
You may have a good sense of what you pay in federal income taxes. Most people do.
But many people pay other taxes they aren’t as aware of. Like federal and state taxes for cell phones and other taxes levied on your use of cable and electricity.
Perhaps surprisingly, the average American pays more than 20 different taxes during the year. Yet only a small percentage of people can accurately estimate the portion of their incomes absorbed by taxes.
Understanding what you pay (continue reading…)
Posted in High Net Worth Practice, Personal Wealth Planning Services, Tax Services
Tagged Personal Finances, Personal Tax, State + Local Tax, Wealth Planning
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Employee or Independent Contractor? The IRS Wants to Know
James has worked with a young technology company almost from its inception. Initially the company was one of many clients.
Gradually, James spent more and more time working there and less on projects for other clients. Eventually, he was on-site pretty much every day and only rarely accepted small consulting jobs he could complete evenings and weekends.
Is James still a self-employed consultant? Or, from the perspective of the IRS, has he actually become an employee of the company?
The distinction between an employee (continue reading…)
Posted in Accounting Services, Closely Held + Family Business Practice, Distribution + Light Manufacturing Group, Emerging Businesses + Turnarounds, Hospitality, Restaurant + Lodging Group, Not-for-Profit Practice, Professional Practices Group, Real Estate Group, Retail Group, Tax Services, Technology Group
Tagged Business Tax, Compensation, IRS, Operations, Startups
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Hiring a Qualified Veteran? IRS Extends Key Deadline for the Work Opportunity Tax Credit
For some time, for-profit business and not-for-profit organizations that hire qualified veterans and certain members of other targeted groups have been eligible for a federal Work Opportunity Tax Credit (WOTC).
However, the credit for veterans expired at the end of 2012 and for targeted non-veterans at the end of 2011.
The American Taxpayer Relief Act, signed into law in January of 2013, retroactively extended the WOTC through December 31, 2013 for veterans and targeted non-veterans.
Because of the retroactive nature of this extension, (continue reading…)
Posted in Closely Held + Family Business Practice, Distribution + Light Manufacturing Group, Emerging Businesses + Turnarounds, Hospitality, Restaurant + Lodging Group, Not-for-Profit Practice, Professional Practices Group, Real Estate Group, Retail Group, Tax Services, Technology Group
Tagged Business Tax, IRS, Legislation, Tax Credits + Incentives
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Alert: Updated Form I-9 Released for New Hires and Reverifications
The U.S. Citizenship and Immigration Service (USCIS) has updated Form I-9, used to verify the identity and employment authorization of persons hired in the U.S.
The new I-9 Employment Eligibility Verification form, version date 03/08/2013, can be used immediately for new hires and verifications, but must be used after May 7 when older versions are no longer accepted.
Existing I-9 forms for current employees do not have to be updated for the version change.
You can download an English and/or a Spanish version (continue reading…)
Are Your Fringe Benefits Taxable? What Partners, LLC Members and S Corporation Shareholders Need to Know
Health coverage. Meals. Life insurance. Parking fees and transit passes. Flexible spending accounts. Even employer-provided cell phones. Bet you’re getting some kind of employer-provided fringe benefits in addition to your salary.
But do you know which fringe benefit the IRS considers taxable? Which benefits are also subject to employment taxes? And how fringe benefits affect your estimated taxes?
It can be incredibly confusing under the best of circumstances—and it’s especially complicated for partners, as well as members of LLCs and certain shareholders in S corporations.
But unless (continue reading…)
