Grow Your Business Through Tax Planning
Most business owners are interested in tax planning because without proper tax planning, business owners may end up with huge tax bills, giving away their hard-earned money. Tax bill is often the largest expense of any business. However, tax planning strategies will not produce the desired outcome if you do not know or understand your overall financial goals for the long run. An important thing to ensure is that your personal financial and investment strategies should always
Is the new rule on 1099-K going to affect you?
New IRS reporting rules for Form 1099-K may be applicable to some business owners in 2023. There is no change in the tax on income but this new regulation may result in taxpayers receiving Form 1099-K, Payment Card, and Third-Party Network Transactions for transactions made using payment cards and third-party payment networks worth more than $600 for the calendar year. It applies to business owners who generate an income by selling products or rendering services; they are sub
IRS Warns Employers to Beware of Third-Party Services Offering Falsified ERC Claims
On October 19, 2022, the Internal Revenue Service (IRS) issued a warning to employers, notifying them to be wary of third-party services promoting fraudulent Employee Retention Credit (ERC) claim schemes. The ERC is a refundable tax credit established to help small and mid-sized businesses impacted by the COVID-19 pandemic between Q2 2020 and Q4 2021. Eligible taxpayers (employers) can apply for an ERC claim if they have continued to pay employees after COVID-induced shutdown
Red Flags That Can Trigger An Audit
There are many red flags that can lead to an IRS audit; we are going to tell you a few key triggers to watch out for! An obvious red flag that will cause an audit is using round numbers to report your business expenses. There are several other triggers such as overstating deductions, reporting excessive home office deductions, and many more including failure to file tax returns for multiple years. Have you prepared your business to be IRS audit proof? Make sure to follow us a
Protect Your Business from a Cyber-Attack
The Inland Revenue Service (IRS) has inadvertently exposed the data of 120,000 US taxpayers. Personal data such as names, business contact information, and investment-derived income from some assets were leaked. The information was viewable for almost a year via the IRS website before its recent discovery, and as of September 2, the agency confirmed it has been removed from the domain. If you are running a business, this is a good reminder for all of us to make sure we always
Top Tips to Boost Your Business!
If you are running a business, it is critical to understand the importance of financial management. Where should you begin? By focusing on 4 key points: Knowing your numbers, understanding your financial position, understanding your tax position, and most importantly planning ahead! To help boost your business, we provide our clients with customized monthly financial statements, quarterly tax planning, and our very own financial dashboard with adaptive insights so that you un
September Is National Preparedness Month!
The IRS wants you to be aware that September is National Preparedness month, which many business owners should consider. Use this as a reminder to secure important financial documents in a water/fireproof casing in case of a natural disaster such as essential tax and financial documents which should be duplicated for safety, and lists for your properties. The IRS also recommends checking if your provider has a fiduciary bond in place to protect the employer against a possible
Time to Update Your Tax Planning
With all the recent IRS news and updates, tax planning is becoming more important, especially for business owners who wish to reduce their tax bills. As many of you know the IRS is set to receive an increase of $80 billion budget over the next ten years, which would increase % of IRS audits for many. This means you as a business owner should start thinking of careful and intentional tax planning by executing strategies backed by solid record keeping. With proper tax planning,
More Tax Relief for Businesses
The IRS announced that it will provide relief for those who filed late due to the pandemic from 2019 to 2020 worth $1.2 Billion in refunds & credits. The newly issued relief plan will allow the IRS to return to normalcy in 2023 by allowing them to process backlogged tax returns for 1.6 million taxpayers. A majority of these payments are to be completed by end of September and will be automatically applied to businesses that qualify. Furthermore, this will be applicable to tho
A New Way to File Taxes?
The IRS is expected to roll out a new way for Americans to file their taxes. The new act signed by President Biden allocates $15 million to deliver a report on a free, government-run tax e-filing system to simplify the process. The IRS will be given a year to complete a report which includes the cost and design of the new system, including the impact on taxpayers. How comfortable would you be as a business owner using a government-run e-filing system? Feel free to contact us
