Tax Tips Newsletters // Business Advice & Tax Tips
IRS Raises Threshold for Tax Liens
The IRS recently announced that it will moderate its use of tax liens to collect back taxes. A federal tax lien gives the IRS a claim on a delinquent taxpayer’s property for unpaid taxes. This change means the IRS won’t use a tax lien unless at least $10,000 in back taxes is owed; the previous ...
What to Keep & What to Toss
Once you’ve filed your 2010 tax return, you may wonder what records you need to keep and how long you need to keep them. Here are some recordkeeping guidelines that will help you keep important papers and minimize the clutter. TAX RECORDS. Keep tax returns (and any records used to prepare them) for at least ...
Fraud Opportunities in Small Businesses
Many times, if an owner has a suspicion about their business’ books, there is probably something wrong. And of the three key elements of fraud- Pressure, Opportunity & Rationlization- opportunity is the component over which companies have the greatest control. This week, we will touch on a few key fraud OPPORTUNITIES in small businesses. As a ...
Expanded 1099 Reporting Is Repealed
The expanded Form 1099 reporting rules for certain business payments and rental property expense payments have been repealed in a law just signed by President Obama. Here’s the background on this issue. The 2010 health care legislation included a provision that would have required businesses that purchased goods and services from any vendor – including ...
ROTH IRA’S- A Smart Tax Idea for Teens
Greetings! Many teens work during the summer months, and some have part-time jobs throughout the year. Persuading your working teen to make retirement contributions isn’t the easiest thing you will ever do. However, investing in Roth IRA’s may be the wisest possible use of his earnings. The very nature of Roth IRA’s, combined with the ...
If Disaster Strikes…Check the Tax Breaks
The recent events in Japan are reminders that disasters can occur at any time – often with staggering human and financial costs. If you’re an unlucky victim of a disaster, you may receive help from insurance and federal disaster aid. But the tax code also offers some relief. You may be able to take an ...
Get an Extension If You Can’t File by April 18th
If you are not able to file your income tax return by then, be sure to file a Form 4868 with the IRS. The extension, giving you until October 17, 2011 to file your return, will be automatically granted. Be advised, however, that filing an extension does not extend your time to pay. The IRS ...
IRS Filing Updates
*FILING START DATE FOR DELAYED TAX RETURNS. The IRS had to delay processing 2010 tax returns that claimed itemized deductions, the educator expense deduction, or the tuition deduction. The delay was caused by the passage of the “2010 Tax Relief Act” in late December. IRS computers had to be reprogrammed to handle the changes made ...
Deducting Home Office Expenses
If you work at home, you would probably like to take a tax deduction for your home office. Below is a quick overview of what applies: The first requirement is that you have a part of your home that you use regularly andexclusively for business purposes. While this office need not be a separate room, it ...
Contractor or Employee? The Courts Decide.
With labor costs being substantially lower for contractors than employees, employers often find themselves tempted to misclassify workers. In fact, the Labor Department has estimated that up to one-thirds of U.S. employers are incorrectly classifying at least one employee- some in error, others by intent. There’s an estimated $2.72 billion each year in unpaid Social ...
Copyright © 2010 - KP Monaco & Associates, P.C. | Certified Public Accountants & Fraud Examiner | Certified Woman Business Enterprise