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Where to Start When Starting a Business

As 2020 rolls in right around the corner, you may be thinking of things like New Year’s resolutions and dreams you’ve had year after year. One big dream that a lot of people have is starting a business. Deciding to start your own business is a big step, one that requires special planning and thought. But where do you start? The first step is to decide the type of entity that is best for you. Choices, Choices (of Entity, That Is) Here are the five most common choices of entity structure for businesses for profit and a few of their characteristics. Read More

Feb/March 2020 Dates to Remember

Feb 10, 2020 Form 4070 (Jan. 2020)- Employees who work for tips has received $20 or more in tips during January , report them to your employer using Form 4070. Forms 943 (2019)- Employer's Annual Federal Tax Return for Agricultural Employees (Form 943) due if tax was deposited in full and on time 941 (Q4 2019)- Employer's Quarterly Federal Tax Return (Form... Read More

January Dates to Remember

January 10, 2020 Employees who work for tips. If you received $20 or more in tips during December, report them to your employer. You can use Form 4070. January 15, 2020 Employers ‐ For Social Security, Medicare, withheld income tax, and nonpayroll withholding, deposit the tax for payments in December if the monthly rule applies. Individuals- Final installment payment of prior year... Read More

Got a Notice from the IRS - Now What?

If you receive an audit notice from the IRS, do not panic. Just breathe! Read the letter in its entirety to see what they are auditing. In many cases, it's a great idea to hire a tax representation professional to deal with the audit, especially if it's a field audit (described below). Why You An audit can be triggered in any number of ways. It could be that the IRS computer randomly pulled your... Read More

Tax Strategies for the Retired Taxpayer

After years of saving for retirement, it's time to start using those savings-even if you don't really need to. Once you reach 70 ½ years old, you must begin taking annual distributions from your qualified retirement plan. This is called a required minimum distribution (RMD.) If you don't take your RMD, the IRS imposes a severe penalty-it's a tax of 50% of the amount that was not withdrawn in time!... Read More

TCJA & Understanding Changes to Mortgage Interest Deduction

The Tax Cuts and Jobs Act of 2018 changed both the type of mortgage interest that can be deducted as well as the amount of interest that can be deducted. Acquisition Debt vs. Equity Debt Acquisition Debt is incurred in acquiring, constructing, or substantially improving any qualified residence of the taxpayer and must be secured by the taxpayer's residence. Equity Debt is all other debt... Read More

Dec 2019/Jan 2020 Dates to Remember

December 10, 2019 Employees who work for tips. If you received $20 or more in tips during November, report them to your employer. You can use Form 4070. December 16, 2019 Corporations- Deposit the fourth installment of estimated income tax for 2019. A worksheet, Form 1120-W helps to estimate the tax for the year. Employers ‐ For Social Security, Medicare,... Read More

Protecting Yourself from Tax Scams

There are many tax scams out there with the purpose of stealing your identity, stealing your money, or filing fraudulent tax returns using your private information. Tax scammers work year-round, not just during tax season, and target virtually everyone. Stay alert to the ways criminals pose as the IRS to trick you out of your money or personal information. IRS-Impersonation Telephone... Read More

Due Diligence Requirements

As your tax professional, we may be asking you additional questions next year that are required by the Tax Cuts and Jobs Act. Tax preparers must collect new information from clients who qualify for any of the following tax credits: Earned Income Tax Credit (EIC) Child Tax Credit (CTC) American Opportunity Tax Credit (AOTC) Head of Household filing status (HOH) In addition to... Read More