The IRS is once again turning to private tax collectors to begin to harass those with delinquent tax payments. So in the near future if you owe taxes you may begin to receive these unpleasant phone calls. Read the rest of what you need to know about these private collectors here so you know what they can and cannot do.
Accounting is an integral function of business; it is one of the primary business functions and also a crucial ingredient in making the business successful. Accounting involves keeping of financial records. Over the years, technology has impacted on accounting increasing the efficiency of the accounting process through the use of the proper accounting systems. Accounting systems help automate the accounting process, increasing the efficiency, speed, security, and accuracy of the accountants. There are two major accounting systems which are one, cash accounting systems, these systems are primarily involved in managing transactions that involve actual cash flow, the second is accrual accounting system: details of transactions are recorded regardless of whether money was involved. There are hybrid systems which combine the two, but the end goal of any accounting system is effectiveness in financial management. The question many small business owners ask is whether these accounting systems are essential to their business and the advantages of having them: in this article we try to answer these two questions.
With new overtime rules going into affect, small businesses will need to take a hard look at how these new regulations affect their hiring process and the unintended consequences these new regulations are likely to bring. Read here
We want to start out by saying we hope this never happens to your company or you never get involved with individuals that would exploit your business in such a perverse manner . However, we felt it that is was necessary to inform our clients, as well other business owners out there about this potentially massive payroll embezzlement case where Illey & Associates, Inc. are under a major investigation for payroll embezzlement that could reach up to $20-Million. Currently, the firm is claiming is was a mistake by the IRS.
Smith and Associates PC is spreading the Halloween cheer up and down Union Blvd today! Happy Halloween!!
IRS Summertime Tax Tips
The Internal Revenue Service regularly provides tax tips via email to provide timely reminders to taxpayers and preparers about tax breaks and requirements year-round, and its advice can be particularly helpful this summer.
Vacation Home Rentals
School’s out for many kids, and if you run your own business, you may be able to turn your child’s summer break into a tax advantage—and some extra help—for you.
Hiring your child as an employee to do legitimate work in your business provides several tax benefits:
- You can deduct the salary you pay your child from your business as a business expense.
- You can move part of your business income from your own tax bracket to your child’s bracket, which often creates substantial tax savings.
- Your child only pays tax on the money they earn in excess of the standard deduction amount for the year.
With tax season here, you might be wondering just how likely you are to hear from the IRS after you file by means of an audit notice. While the chances you will be audited are relatively low if you file a straightforward personal tax return, the more complex your tax situation becomes (reporting business income or graduating to a high-income tax bracket, for example), the more likely it is that you will be audited.
As you look to file your taxes this year, it pays to be aware of some red flags that can draw extra IRS attention including the following:
Happy New Year! Now that the holidays are over, it’s time to get serious about reviewing where you stand from a tax perspective. As you may recall, in 2013 Congress and President Obama made a budget deal to avoid the fiscal cliff which resulted in seven tax increases. In addition to these increases, the introduction of the Affordable Care Act (also known as Obamacare) also included six additional tax increases, for a grand total of 13 new tax hikes which may affect your 2013 tax bill.
The following list details these tax changes. It is worthwhile reviewing it to see which changes are most likely to impact you this tax year:
If your business spends $600 or more for services from another business or an individual contractor during the tax year, you may have to report the amount on a Form 1099. The requirement to file 1099s applies to all types of businesses, C-Corporations, S-Corporations, LLCs, all partnerships, and sole proprietorships. Forms 1099 are normally issued to unincorporated businesses, however, if your business made payments of $600 or more to a Corporation (C or S) for medical, health care, or fishing activities, or to any law firm, then a Form 1099 is required to be issued.