by Karla Dennis | Jul 17, 2013 | Blog
For many taxpayers, it is time to wrap up the chore of filling out federal income tax returns and paying whatever is owed towards the U.S. Treasury. But this year, lots of people are eligible for additional time to pay without getting hit by a stiff penalty. First, some background: usually, the official deadline to file and pay is Tuesday, April 17. (It’s generally April 15, but that falls on a Sunday this year, and April 16 can at times be a vacation in Washington, D.C.) People who can’t meet the April 17 deadline can ask the Internal Revenue Service to get a six-month filing extension. That will let them have until Oct. 15 to file. read...
by Karla Dennis | Jul 16, 2013 | Blog
Have you failed to qualify for the Section 199 “manufacturing” deduction in the past? It’s worth a second look. Initially, the Section 199 deduction was limited to 3% of the lesser of a taxpayer’s qualified production activity income (QPAI) or taxable income. The maximum deduction percentage was then doubled to 6%. It’s been increased to 9% for 2010 and thereafter. QPAI is equal to domestic production gross receipts (DPGR) from qualified activities (see below) minus expenses. Expenses include the cost of goods sold allocable to the receipts, allocable direct and indirect costs and a ratable portion of other costs. read...
by Karla Dennis | Jul 16, 2013 | Blog
Getting recommendations is usually a helpful method to find a reputable accountant that can provide you with a quality tax resolution services review. Referrals can be particularly crucial to tax relief for a corporation or an individual. It is recommended that you ask other people if they have worked with any quality experts within the area. Word of mouth usually provides you with respectable advice given that you can consider an accountant based on the experiences that earlier clients have had with them. read...
by Karla Dennis | Jul 16, 2013 | Blog
Entrepreneurs, by their very nature, consider themselves a jack of all trades. Let’s face it, you have not gotten where you are today without being able to multitask. Not only have you assumed the role of receptionist and sales person, you have also been chief executive offer and chief financial officer. You are truly a do-it-yourselfer. You have only hired employees because you just do not have enough time to do everything anymore. For the most part, this has probably not been a bad thing. When it comes to your tax preparation, however, the IRS is singing a different tune. According to the IRS, 35% of the business returns filed by business owners contain avoidable mistakes. Because the IRS believes business owners are special, too, they have launched an audit program that specifically targets business owners. Juggling your business has just gotten harder because now you have one more concern to add to your plate. read...
by Karla Dennis | Jul 16, 2013 | Blog
The Small Business Jobs Act of 2010, signed by President Obama on Sept. 27, 2010, includes a bevy of tax breaks for small business owners. Here are the highlights of this important new legislation. Section 179: For tax years beginning in 2010 and 2011, your business can immediately write off up to $500,000 of qualifying assets (including purchased software). The new $500,000 maximum allowance doubles the previous $250,000 maximum deduction. More good news: the threshold for the Section 179 deduction phase-out rule jumps from $800,000 to $2 million for tax years beginning in 2010 and 2011. Also, for tax years beginning in 2010 and 2011, up to $250,000 of qualified real property costs can also be deducted under Section 179. Previously, real property costs did not qualify for Section 179 deductions. read...
