The Burning Question: Will I be Audited?

It is no surprise that the IRS has recently taken a hit to their budget and audit staff numbers, bringing the chances of an audit to an unprecedented low. Still, as tax season approaches, so does the anxiety of many taxpayers with the question, “What are the chances of me being audited?” 

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Difference Between a CPA and a Tax Preparer

When filing taxes as an individual or a business you have options.  If you have a simple return, you may consider filing your taxes yourself.  However, if you have a more complex tax situation you may consider seeking a tax professional nearby.  There are several different options when it comes to hiring a tax professional to handle your sensitive information.  There should be several things you want to consider based on your specific tax circumstances.

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New Tax Law: Taking Advantage as a Small Business

Every year, new tax laws and IRS regulations change, sometimes mildly and other times, quite dramatically. However, the TCJA (Tax Cuts and Jobs Act) out paces any recent changes to tax legislation by a long shot. Since much of the new legislation will be in affect for 2018 taxes, it is important for all small businesses to take advantage of this new information. Here are some important changes and advantages that small businesses should consider ahead of preparing their 2018 tax return in accordance with the new tax law.

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Is “BOGO” a “NONO”?

Sales Tax for Special Promotions

Have you ever reaped the benefits of offering discounts, promo codes, and coupon deals? If so, you understand the power it has to draw customers new and old in droves. What you should also understand, is that states expect you to know how to handle the sales tax for those different types of purchases.

With few exceptions, sales tax is the gross receipts or gross selling price received from selling products or offering taxable services. Seems simple enough right? Yet, retailers are often stung for mishandling the taxes charged with these purchases.

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5 Deductions we lost this year and 1 that makes up for them

Deductions lost in 2018

In its efforts to simplify the tax code, Congress included provisions in The Tax Cuts and Jobs Act of 2017 that increased the standard deduction to $12,000 for individuals ($24,000 for married couples) and either modified or eliminated many itemized deductions. As a result, taxpayers and their professional tax advisers are currently exploring ways to best take advantage of the itemized tax deductions still available to them. While record keeping however, it is important to be wary of these popular deductions that will no longer count. 

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3 Items Every Business Owner should have on their 2018 Tax Checklist

2018 TAX CHECKLIST

Tax situations are different for most businesses for the simple fact that all businesses are unique. This makes planning difficult for business owners working without  the proper guidance. The complexity of tax issues that comes from these differences are more than inconvenient. However, there are three things every small business owner can do to avoid penalties in the tax year.

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CHOOSING ACCOUNTING FIRMS: IS BIGGER BETTER?

Effects of Firm Size on Accounting Services

As your financial activity increases over time, dealing with these matters alone becomes increasingly difficult, thus rendering the necessity to hire a business consulting entity. When considering which accounting firm to hire, you may initially go with a big-name firm because of their popularity and uncontested marketing. What you may not realize, are the trade-offs that come with choosing a larger one, as there are many uncontested qualities displayed by a mid-sized firm such as Watkins & Company. Here are 3 advantages of hiring a smaller firm ingrained in its community rather than a large “prestigious” firm.

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TAX ACCOUNTANTS PROACTIVE BUSINESS DECISIONS 2018

Tax season can be one of the most stressful times of the year for many small business owners. This is largely because they tend to wait until the last minute instead of tending to taxes throughout the year. Although the many changes to the tax code for 2018 are intended to make taxes “easier”, it still presents itself as a completely foreign language without the aid of tax accountants. This perceived complexity can easily translate to missing out on some low hanging fruit i.e. tax savings. There are several savings tips to consider for 2018.

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2 ways spouse-owned businesses can reduce their self-employment tax bill

If you own a profitable, unincorporated business with your spouse, you probably find the high self-employment (SE) tax bills burdensome. An unincorporated business in which both spouses are active is typically treated by the IRS as a partnership owned 50/50 by the spouses. (For simplicity, when we refer to “partnerships,” we’ll include in our definition limited liability companies that are treated as partnerships for federal tax purposes.)

For 2017, that means you’ll each pay the maximum 15.3% SE tax rate on the first $127,200 of your respective shares of net SE income from the business. Those bills can mount up if your business is profitable. To illustrate:

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