3 Keys in Choosing a Tax Preparer
How do you know you’re working with a legitimate tax preparer? The answer isn’t as cut-and-dry as it should be. It’s essential to determine, though, because working with an unscrupulous or incompetent tax preparer could cost you more than tax dollars. You could be hit with huge penalties and interest or even jail time. Tax […]
Start Counting Up Your 2021 COVID-19 Deductions
As the COVID-19 pandemic swept the world, tax and financial relief efforts were sped along to help business owners stay afloat. As 2021 settled in, some of those efforts trickled away. So, where do you stand as a business owner? What COVID-19 tax deductions should be accounted for before the year’s end? Here are a […]
E-Sign Extended for More Tax Forms
You can keep e-signing many of your IRS forms through the end of 2021, the IRS has announced. Plus, more forms have been added to that list. In April 2021, the IRS announced it will allow digital signatures on certain forms that can’t be filed electronically. Before the pandemic, it was mainly Form 1040 for […]
New Tax Developments for S Corporations
An important tax court decision was recently passed down that addresses a common audit trigger for S corporations: Payments to sole shareholders. Are they considered wages or distributions? The answer to that question can alter a business owner’s tax obligation by thousands of dollars. When a business is just starting out, the owner often chooses […]
Can a Retroactive Tax Hike Happen This Year?
There’s talk about the potential for a retroactive tax hike for capital gains. Is it possible? Yes. But is it likely? That question is much more difficult to answer. Legally, the U.S. President and Congress hold the power to raise taxes retroactively, meaning that the increase could apply anytime during that same calendar year. The […]
Why File a Business Tax Return If I Didn’t Make Money?
There’s much more to lose than gain when failing to file a business tax return. You must file if you make money, of course, but it’s also essential to file when you break even or when you lose money. The rules on filing taxes depend on how your business is structured. Corporations, including LLCs treated […]
Why the IRS Isn’t Taking Your Call
Although our Texas Tax Day was delayed an entire month longer than the rest of the country, it has still been a chaotic mess for those needing answers from the IRS. The agency is backlogged so severely that help or swift refunds shouldn’t be expected anytime soon. How dire is the situation? About 29 million […]
Lowering Texas Inventory Taxes
Texas is one of only a handful of states that fully taxes business inventory of both raw materials and finished goods as part of what’s known as business personal property. Since there’s no state income tax, the business property tax in Texas is one of the highest in the nation. According to Texas Taxpayers and […]
Taxes on Collectibles
Did you know many valuable coins, stamps, artwork, cars and other collectibles are considered alternate investments by the IRS? With the pandemic reportedly sparking new interest in memorabilia and the trading of collectibles going digital–some using online tokens as payment–it’s time to brush up on what that means for your taxes. What Happens When You […]
Which Business Meals Qualify for Temporary 100% Deduction?
Business owners were thrilled to find out that the latest relief bill included a temporary 100% business deduction for restaurant meals through January 1, 2023. But that doesn’t mean all meals are fully deductible and, until recently, the criteria remained murky. In early April, the IRS released guidance to further explain which meals are fully […]