A new day may be dawning. Or not.
Most of you know that I work with a slew of folks and companies to help them pay the lowest amount of taxes required by law. No cheating, no subterfuge- just availing themselves of all the laws that afford folks to pay their taxes- but only the amount they owe, not some number that is afforded by plugging in numbers to TurboTax, H&R Block, TaxAct, etc.
Continue reading Has Hell Frozen Over?
I’ve mentioned (even as recently as yesterday) that the IRS has sophisticated processes to determine who needs to be audited. The algorithms are called DIF and UI DIF. While the IRS explains how and why it does what it does (Publication 556) , the actual formulae are never shared with anyone. Because they would be invitations to cheat- knowing how to tweak the numbers to avoid an audit.
Continue reading What’s the DIF?
No, this post has nothing to do with Tina Fey’s new movie. I even considered using a term I learned when I was about 7. the headline on the (then ultraliberal, now ridiculously conservative) New York Post that read ‘SNAFU’. And, when I confronted my dad to define the term for me, there was a great deal of hemming and hawing, until he came up with ‘Situation Normal, All Fouled Up’. (By now, i am sure you’ve discerned the true definition of the term.)
Continue reading Whiskey. Tango. Foxtrot.
So, I wrote last week about choosing your tax professional well. That also includes those of you whose income is low enough to be entitled to use free tax preparation on line. (Oh- and if you pay to use those online tax services, these same admonitions apply.)
One of the most common questions I receive this time of year (other than: “Can I please do their taxes?”) is. “What are my chances for an audit?”
Continue reading The Taxman Cometh- NOT!
Just the other day, I had a client ask me about records retention. And, as I prepared to answer her query, I realized that a lot of you probably have the same questions. So….
Most of you know that the IRS has had its budget slashed by Congress. The goal (of the majority party) was to make it really hard for the IRS to collect the special taxes one might owe for failure to have health insurance and to punish it for various perceived ills. Because, after all, every dollar provided to the IRS only provides some $ 11 in return. (There’s no other agency that has such a return on investment for the US.)
Continue reading Tonight starts income tax season…And, do I have some surprises for you!
Most US businesses are primarily sole proprietorships and partnerships. But, the prime reason why sole proprietorships are so common is the “moonlighting” that is part of many an American’s life. Once that classification is removed from the totals, the situation is dramatically different. Partnerships (and LLC- limited liability corporations, which are usually taxed as partnerships)- both privately held and syndicated (widely held entities, with access to capital markets [i.e.,Wall Street])- are the primary business structure for US businesses.
Continue reading Pass-Through Bypass?
I just finished my Jewish holidays- and then was inundated with folks who failed to file their taxes on the 15th of April. And, what did they do for the ensuing six months? From what I can tell, absolutely nothing. Three of them brought the ubiquitous shoe box- you know, a year’s collection of receipts. The problem? Most of those receipts were printed via heat sensitive ink- and now, 10 to 22 months later, they are a mess of grey blobs, having faded to obscurity.
There is a penalty that can be imposed as of 1 July 2015 to small business employers who reimburse employees for premiums paid for individual health insurance policies under Obamacare (PPACA). Yes, that means if you don’t offer insurance because your state does not offer plans for small employers and the various insurance companies charge rates that are outrageous, you can still be penalized. But, there are ways to fix this. Read on…
Continue reading Hey, business owner- this affects you!
