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
The Benefits of Prepay Expenses!
There is an easy & legal advantage that every business owner should be aware of, which we will review today! Prepay Expenses are payments to future expenses to be used as deductions for the current year. These expenses apply to costs such as rent, subscriptions; marketing expenses, etc.… By taking care of these costs prior to their due date in the coming year, before December 31st, there are circumstances where you can deduct those expenses. For more details follow the link b
Will Student Loan Forgiveness Raise Taxes?
President Joe Biden has announced new updates to the Student Loan Forgiveness plan. This plan can erase up to $10,000 of federal student loans and up to $20,000 for those students who received a Pell Grant and make less than $125,000 per year. You may be wondering if this will cause an up rise in taxes. The answer is no regarding federal tax returns. However, this doesn’t rule out state taxes on the forgiven debt which you can still be responsible for. While some states natur
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
XQ CPA Newsroom Update - IRS Gets $80 Billion!
Today, the XQ CPA Newsroom brings you big updates! This past Sunday, the U.S. Senate passed the Inflation Reduction Act, H.R. 5376, and is awaiting approval by the House of Representatives. This bill will allocate $80 billion to the IRS over the next 10 years which provides the agency with an additional 60% funding increase on top of the existing yearly budget of $12 billion. The new provisions will allow the IRS to conduct more audits, which will lead to additional fines fo
Information to be Aware of Claiming an ERC!
If you are a business owner and someone approaches you about claiming employee retention credit, BEWARE! There have been scammers in the market approaching business owners to claim ERC credits even under circumstances that business owners have not met the eligibility requirements for claiming ERC. If you are planning to claim ERC, please know that 1) you will be required to amend your tax returns after you have received the ERC credit because this credit has to be included 2)
GDP & How it Concerns All of Us!
As the GDP rate has continued to fall, it is something all business owners should be keeping an eye on. The ebbs & flows of developments within this international barometer will give an insight into the economic future and; therefore, its significance. With that in mind according to the news on 07/28/22, the GDP has fallen 0.9%. This could signify a strong recession signal, seeing that is the second straight decline. On a positive note, this can be mitigated with proper plann
Adrian Reyes: Intern Experience
Here at XQ CPA we are very fortunate to give career opportunities to the greatest talent by providing them a chance to learn on their feet and develop their best strengths & simultaneously guiding them to the best possible future in a shared experience. The world is perpetually evolving and we are happy to assist our interns in real world experience along with our clients in the most professional manner possible. Today we present Adrian Reyes a former intern and current Tax A
Upcoming Tax Deadlines!
We hope that you are enjoying the summer season & taking much-needed time to regroup/recharge. However, don’t forget that the deadline to file your tax returns is less than 60 days away! As a reminder, the personal tax return filing extended deadline is October 15th but there is also a September 15th extended filing deadline for businesses especially if you are filing 1120S and 1065s. Do not wait until the last minute to submit your tax return because any mistake could cause
Received a letter from the IRS? Here is what to do.
As a business owner, you have many responsibilities especially when it comes to reporting to the IRS. Today, we are going to talk about what should you do if you receive an IRS letter. Firstly, do not panic but you also need to make sure you do not ignore or forget about it. Take a moment to try and understand it. If you do not understand the letter, you need to take timely action to consult with a CPA to understand the issue so you can resolve it. Using professional tax help