Filed under General Tax Information

Information about 1099 Filing Requirements

We want to remind you about the 1099-MISC filing rules. Recently the IRS has begun assessing penalties for businesses failing to file 1099s or filing them late. The minimum penalty for late filing is $35 per 1099, which can add up quickly. Anyone you have paid over $600 for services in the course of your … Continue reading

Capitalizing or Expensing Repair and Other Related Costs

On September 19, 2013 the Internal Revenue Service issued new final Regulations which go in to effect for tax years beginning on or after January 1, 2014. These incredibly complex Regulations require you to keep better records for repairs, maintenance and supplies. In addition, require specifically analyzing each of these items costing over $500. We … Continue reading

Business Information for Sole-Proprietors

Information for Sole-Proprietors What is a Business A trade or business is generally an activity carried on to make a profit. The facts and circumstances of each case determine whether or not an activity is a trade or business. You do not need to actually make a profit to be in a trade or business … Continue reading

Foreign Account Reporting

Taxpayers have long been required by the Bank Secrecy Act to report certain foreign accounts. Now, there is a new reporting requirement in the Foreign Account Tax Compliance Act of 2010. The Foreign Account Tax Compliance Act (FATCA), enacted in 2010, requires certain U.S. taxpayers to report their interests in specified foreign financial assets. The … Continue reading

Heroes Act: Incentives to Hire Military Veterans

The Three Percent Withholding Repeal and Job Creation Act (2011 Heroes Act) expands tax incentives that encourage employers to hire military veterans. The 2011 Heroes Act enhances the Work Opportunity Tax Credit (WOTC) by creating the Returning Heroes Tax Credit and the Wounded Warriors Tax Credit. In general, the WOTC rewards employers with a tax … Continue reading

Using Trusts – Meeting Tax and Non-Tax Goals

Trusts have been used as integral parts of sophisticated tax and financial arrangements for centuries. Exactly how they are used, however, depends on a person’s particular goals, currently applicable tax rules, and other factors. We hope this post will give you a bit of general information about the current use of trusts to familiarize you … Continue reading

Out-of-Pocket Expenses as a Volunteer for Charities

Out-of-Pocket Expenses as a Volunteer for Charities

A recent Tax Court case serves as a reminder that the IRS and the courts require strict compliance with the documentation rules for charitable donations. The taxpayer in this case had spent substantial sums as a volunteer in support of a charitable organization. Because she did not obtain proper acknowledgement from the charitable organization, however, … Continue reading

HOW TO BE A BETTER TAX CLIENT

HOW TO BE A BETTER TAX CLIENT

With tax season here, its time to start gathering the data needed to prepare your 2011 income tax returns. This information will trickle in over the next few months. Some of the envelopes you receive will be marked “Important Tax Document”, but some may not. To make this tax season easier on everybody, here are … Continue reading

Deducting Auto Expenses

Deducting Auto Expenses

DEDUCTING TRANSPORTATION (AUTO) EXPENSES ON YOUR TAX RETURN AUTO DEDUCTIONS AS A BUSINESS EXPENSE Transportation expenses, like any other business expense, must be “ordinary and necessary” for your business. The deductions for the following discussion pertain only to business use of a vehicle. For this purpose the definition of vehicle does not include those that … Continue reading