Buying a Distressed Business
It’s a unique time for small businesses. The economic ups and downs are creating both winners and losers. If you find yourself on the fortunate side, should you seize the opportunity to expand by buying a distressed business (perhaps even a competitor)? Here are some questions to ask before you act: Why is the business […]
Inflation and Your Small Business
The U.S. Chamber of Commerce reports that one in three small business owners consider inflation their top concern right now. Inflation worries have driven small business optimism about the future to record lows, adds the National Federation of Independent Business. In response, 67% have raised prices, 41% have decreased staff, and 39% have taken out […]
IRS Whistleblowers Can Win 30% of What’s Due (But It’s Not Easy)
Money is a powerful motivator. That’s why the IRS Whistleblower Office is sometimes called into action, often when business partner disputes or divorce cases gain momentum. There could be a lot to be gained—15 to 30% of the taxes that are due could be rewarded to a whistleblower—but reality paints a different picture. At least […]
Win the Lottery…and Jail Time
A recent tax court case involving a Boston cop proves that once you purchase a winning lottery ticket, you’re on the hook to pay taxes on the winnings—even if you don’t keep the ticket. The police officer won $10,000 on a scratch-off ticket, which he then sold to a convenience store owner for $7,500 in […]
Tipped Employees and the New 80/20 Rule
The U.S. Department of Labor’s newly revamped “80/20 guidance” for tipped workers is in effect after an emergency motion to withdraw it was denied. What is it and how does it affect Texas restaurants and other tip-based businesses? Restaurants in most states including Texas have been relying on the “tip credit” for decades, which allows […]
When You Can’t Pay Your Federal Taxes
It’s hard to get taxes right, but what if you’re surprised with a shockingly high federal tax bill you didn’t know you owed? The IRS offers some options, but if it’s a significant amount, turn to a CPA for help. More than half of U.S. taxpayers know that they pay an inaccurate amount of taxes […]
Cash Payments Can Trigger IRS Trouble
What do $600, $5,000, and $10,000 have in common? They’re specific payment amounts to a person or business that can trigger IRS reporting requirements. Ignore those triggers, and someone (either the payee or the recipient, depending on the trigger) could face steep penalties or even criminal charges. The $600 Trigger This Form 1099 reporting threshold […]
Partnerships Are a Tricky Business
Small business ownership can be daunting when you’re alone at the top. That’s why many entrepreneurs consider forming their businesses as equal partnerships between two or more owners. However, these business structures can be uniquely affected by relationships, taxes, and other factors. An equal partnership can be a great idea until it isn’t. Perhaps the […]
When Did Your Employees Last Update Withholding?
Did you or your employees receive a surprising tax bill last year? The new W-4 that was released in December 2019 could be the cause. Additional factors this year could exacerbate the problem. Only about 1 in 4 American taxpayers updated their withholding when the IRS released the new W-4 in 2019. Going back another […]
It’s Time to Tell the IRS About Your Crypto
Cryptocurrency went from being largely unregulated and untaxed to being one of the most closely watched taxable activities practically overnight. Have you dabbled in it? By now, 16% of Americans have invested in, traded, or used cryptocurrency. It was huge in 2021—and even with its volatility, if you held investments in it, you likely made […]