22Jan 2018 by Fred Crooks No Comments
Tax Reform Changes

Tax Reform Changes

Business Advisory, Compliance, Tax, Uncategorized
Tax Reform Changes - How will they affect you? When you file your 2018 tax returns - about a year from now - your return will look very different.  Here are a few of the biggest changes that may affect you. Individual TaxIndividual tax rates will range from 10% to 37%.Standard deduction increases and personal and dependent exemptions eliminatedThe Child Tax Credit increased and a new Dependent Credit created.Disappearing deductions: Beginning with the 2018 tax year, you will no longer be able to deduct:State income tax and property taxes above $10,000 per year in total;Moving expenses (with an exception for certain military);Employee business expenses such as mileage, travel, entertainment, home office expenses, union dues, tax preparation fees, and investment fees, among others;Mortgage interest beyond interest on $750,000 of acquisition debt (if…
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09Mar 2017 by William Simi No Comments
The impact of Unrelated Business Taxable Income on your nonprofit

The impact of Unrelated Business Taxable Income on your nonprofit

Compliance, Non Profit Principles: Steering You in the Right Direction, Not For Profit, Tax, Uncategorized
As a non-profit organization, you may be used to the idea that most of the income you generate through your organization’s activities is exempt from tax. But as every accountant knows, when it comes to the tax law, there are always exceptions to every exception and exemptions from every exemption. Or should we say exceptions to every exemption. Anyway, you get my meaning. In the case of non-profit organizations one of those exceptions to the general rule of tax exemption is something called “Unrelated Business Taxable Income”. Nonprofit boards and management should be aware that it is out there and that it might be applicable to their organization depending on the kind of activities it carries out. First, let’s get clear on a couple of acronyms that might otherwise be…
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04Nov 2014 by Fred Crooks

Avoid Tax Surprises

Business Advisory, Tax
Still Time to Act to Avoid Surprises at Tax-Time Even though only a few months remain in 2014, you still have time to act so you aren't surprised at tax-time next year. You should take steps now to avoid owing more taxes or getting a larger refund than you expect. Here are some actions you can take to bring the taxes you pay in advance closer to what you'll owe when you file your tax return: Adjust your withholding. If you're an employee and you think that your tax withholding will fall short of your total annual tax liability, you may be able to avoid an unexpected tax bill by increasing your withholding. If you are having too much tax withheld, you may get a larger refund than you expect.…
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25Jul 2014 by Mike Giotto
Tips for Employers Who Outsource Payroll Duties

Tips for Employers Who Outsource Payroll Duties

Business Advisory, Tax
The IRS has released the following reminder with regard to an employer’s responsibility for payroll taxes even when the employer uses a payroll service. Many employers outsource their payroll and related tax duties to third-party payers such as payroll service providers (PSP) and reporting agents (RA). Reputable third-party payers can help employers streamline their business operations by collecting and timely depositing payroll taxes on the employer’s behalf and filing required payroll tax returns with state and federal authorities. Though most of these businesses provide very good service, there are, unfortunately, some who do not have their clients’ best interests at heart. Over the past few months, a number of these individuals and companies around the country have been prosecuted for stealing funds intended for the payment of payroll taxes. Examples…
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01Jul 2014 by William Simi
IRS Adopts “Taxpayer Bill of Rights;” 10 Provisions to be Highlighted by the IRS

IRS Adopts “Taxpayer Bill of Rights;” 10 Provisions to be Highlighted by the IRS

Business Advisory, Tax
IRS Adopts "Taxpayer Bill of Rights;" 10 Provisions to be Highlighted on IRS.gov, in Publication 1 WASHINGTON ― The Internal Revenue Service today announced the adoption of a "Taxpayer Bill of Rights" that will become a cornerstone document to provide the nation's taxpayers with a better understanding of their rights. The Taxpayer Bill of Rights takes the multiple existing rights embedded in the tax code and groups them into 10 broad categories, making them more visible and easier for taxpayers to find on IRS.gov. Publication 1, "Your Rights as a Taxpayer," has been updated with the 10 rights and will be sent to millions of taxpayers this year when they receive IRS notices on issues ranging from audits to collection. The rights will also be publicly visible in all IRS…
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02Apr 2014 by Mike Giotto
IRS Warns of New Email Phishing Scheme Falsely Claiming to be from the Taxpayer Advocate Service

IRS Warns of New Email Phishing Scheme Falsely Claiming to be from the Taxpayer Advocate Service

Tax
The Internal Revenue Service today warned consumers to be on the lookout for a new email phishing scam. The emails appear to be from the IRS Taxpayer Advocate Service and include a bogus case number. The fake emails may include the following message: “Your reported 2013 income is flagged for review due to a document processing error. Your case has been forwarded to the Taxpayer Advocate Service for resolution assistance. To avoid delays processing your 2013 filing contact the Taxpayer Advocate Service for resolution assistance.” Recipients are directed to click on links that supposedly provide information about the "advocate" assigned to their case or that let them "review reported income." The links lead to web pages that solicit personal information. Taxpayers who get these messages should not respond to the…
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22Feb 2014 by William Simi
Beware of bogus IRS e-mails

Beware of bogus IRS e-mails

Tax
The IRS is warning taxpayers and practitioners about potential e-mail scammers who claim to be the IRS. Scammers use the IRS name or logo to make the message appear authentic so you will respond to it. In reality, it’s a scam attempting to trick you into revealing your personal and financial information. The IRS does not initiate contact with taxpayers by e-mail or social media channels to request personal or financial information. Never share confidential information via e-mail with someone alleging to be the IRS. If you receive a suspicious e-mail claiming to be from the IRS, or directing you to an IRS site, do not reply, do not open any attachments, and do not click on any links. For more information on these scams and what to watch for,…
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29Jan 2014 by Mike Giotto
Report Name Change Before You File Taxes

Report Name Change Before You File Taxes

Tax
Did you change your name last year? Did your dependent have a name change? If the answer to either question is yes, be sure to notify the Social Security Administration before you file your tax return with the IRS. This is important because the name on your tax return must match SSA records. If they don’t, you’re likely to get a letter from the IRS about the mismatch. And if you expect a refund, this may delay when you’ll get it. Be sure to contact SSA if: - You got married or divorced and you changed your name. - A dependent you claim had a name change. For example, this would apply if you adopted a child and that child’s last name changed. File Form SS-5, Application for a Social…
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26Sep 2013 by William Simi
IRS Crackdown on Small Business Underreporting

IRS Crackdown on Small Business Underreporting

Tax
The IRS has recently begun cracking down on small businesses.  Nearly 20,000 small business owners have received notifications of possible income under-reporting since fall of 2012.  The notifications have come in light of an IRS analysis that compares percentages of gross receipts from cash transactions versus credit card transactions.  If the ratio is different than what they would expect, they send out a notification. This can be a serious issue if you don’t use great care in your bookkeeping.  Many of the businesses that receive these notifications are able to go back through their books and provide explanations as to why the ratios are off.  Internet sales, for example, would result in higher numbers of credit card transactions versus cash.  A change in tax ID number may also set off…
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16Feb 2012 by William Simi
IRS Eliminates the 1099 – K Line on all Business Tax Returns

IRS Eliminates the 1099 – K Line on all Business Tax Returns

Tax
The IRS has determined that businesses will not need to reconcile their gross receipts with their merchant credit card transactions reported to them on Form 1099-K.  This new ruling is now in effect for the year 2012 and later tax returns. The IRS deputy commissioner for services and enforcement, Steven T. Miller, said in a written memo to the National Federation of Independent Business that no reconciliation will be required on 2012 or future business tax returns. The IRS previously said in October of last year that no return entry would be required for 2011 tax returns, although they left a line on the returns saying “For 2011, enter 0.” We previously advised our business clients to separately track their cash receipts from merchant card payments beginning in 2012. Please…
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