Service charge reporting deadline postponed
Tuesday, December 18th, 2012
The Internal Revenue Service has given businesses an extra year to comply with new rules on how to treat service charges, until January 1, 2014. The new rules had been scheduled to take effect January 1, 2013, but the deadline was extended in response to public comments to allow companies time to make their accounting […]
Read More »Two new taxes in 2013
Wednesday, December 12th, 2012
Two new taxes are scheduled to take effect in January 2013. These taxes were instituted by the Affordable Care Act to help pay for health care reform. Congress may change these taxes as they negotiate ahead of the tax rate and sequestration deadlines at the end of 2012 – the so-called “fiscal cliff”. Few politicians […]
Read More »Employee or independent contractor stakes rise
Thursday, November 29th, 2012
Employee or independent contractor? Sure, we understand that treating workers as independent contractors is easier in so many ways. If you are struggling with the question of which classification your workers fall under, it is more important than ever to consider the consequences if the government disagrees with your stance. This article in Forbes magazine […]
Read More »Court allows employer tax refunds on layoffs
Tuesday, October 30th, 2012
The Sixth District Court of Appeals, which includes Tennessee, has upheld lower court rulings that severance pay is not subject to FICA tax. Companies that had mass layoffs and offered severance pay packages should consider filing claims to refund those taxes before the statute of limitations runs and limits the opportunity. In March 2008, the […]
Read More »Penalty relief? IRS won't offer it
Thursday, October 18th, 2012
IRS penalty relief worth $181 million was available to 1.45 million taxpayers who were not told by the IRS and did not receive the relief. A new report from the IRS watchdog Treasury Inspector General for Tax Administration recommends changes to penalty abatement procedures to encourage taxpayers to file and pay taxes. The Tax Code […]
Read More »Medicare premiums are business deductions
Wednesday, July 18th, 2012
A self-employed person may get a business deduction for health insurance premiums. The IRS has clarified that Medicare premiums paid by self-employed persons qualify as deductible health insurance premiums. If you did not include Medicare premiums in your self-employed health insurance deduction, you may want to consider amending your tax returns to include them. Before […]
Read More »Summer day camp may net tax credit
Friday, July 6th, 2012
Considering sending your children to camp this summer? You may be able to offset the cost with a tax credit. Here are some tips, courtesy of the IRS: During the summer many parents may be planning the time between school years for their children while they work or look for work. The IRS wants to […]
Read More »Act now to get tax credit for hiring a veteran
Tuesday, June 12th, 2012
Did you recently hire an unemployed veteran? Make sure you secure your tax credit now. The IRS provides this information: Employers that hired unemployed veterans during late 2011 and early 2012 had an expanded period to request the required certification for claiming the expanded Work Opportunity Tax Credit (WOTC). That expanded period ends on Tuesday, […]
Read More »5 tax myths (part 2)
Thursday, June 7th, 2012
Last time, we talked about tax myths regarding investments such as your house, business assets, and financial instruments. The mantra, “Don’t let the tax tail wag the dog,” applies to many decisions. Tax impact should be a consideration, but not the most important factor in a decision involving your money. Here are a couple more […]
Read More »Hire a veteran, get a tax break
Friday, February 10th, 2012
The IRS has provided new information (and paperwork!) about the newly-expanded tax credit for hiring veterans. The VOW to Hire Heroes Act of 2011, enacted Nov. 21, 2011, provides an expanded Work Opportunity Tax Credit (WOTC) to businesses that hire eligible unemployed veterans and for the first time also makes the credit available to certain […]
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