Creating a Truly Paperless Office

If you're like me, you may have thought in the past that creating a paperless office means: 1. Using a traditional paper tax file to complete the tax prep process 2. At the end of the process, scan the tax file to make it "paperless" WRONG. While you may cut down on the document storage by "end scanning" your tax files, you are completely missing the benefits of becoming a truly paperless office.   First, you aren't benefiting from the efficiency paperless document management brings.   … [Read more...]

Designing a Workflow System

Designing a Workflow System A Deep-Fried Workflow Model One of my summertime favorites is an annual trip to the fair. Although the summer fairs generally feature the same attractions and exhibits year after year, the board of directors find new and innovative ways to market a unique experience each July. The introduction of unique, one-of-a-kind new taste sensations such as deep fried girl scout cookies, Baby Ruth filled jalapenos, deep fried jerky, and even deep fried kool-aid satisfy the … [Read more...]

Save Tax Dollars through Upstreaming

Upstreaming is a tried and true method of saving on taxes by skillfully moving income from one subsidiary to its parent. Things are rarely simple when it comes to taxes, but there are various scenarios where upstreaming can produce substantial tax savings. Of course, in a business situation, you will need to show there was a business reason for your actions beyond just saving on taxes, and you will need to document your actions in preparation for any future audit. Upstream to a Company in … [Read more...]

IRS Services Are Available During the Government Shutdown: What You Need to Know

As the longest government shutdown in US history continues, many Americans are wondering how IRS services are being affected. An IRS-wide furlough began on December 22, 2018. What makes the shutdown even more challenging for the IRS is that most provisions of the new tax laws went into effect January 1, 2018, and they were in the midst of training for them. However, the IRS is scheduled to begin accepting tax returns for individuals on schedule on January 28. (The IRS began accepting business … [Read more...]

The Hazards of Selling to a Related Party

  You may have a client who comes to you with a “great idea” to sell their property to a family member at a loss in order to get a juicy tax deduction. Your client may ask the family member to resell it to them later, or maybe your client plans to just continue to use the land and keep it in the family. Unfortunately for your client, this is strictly forbidden by 26 U.S. Code § 267. This section of the code relates to sales within a family, some corporate sales, and some transfers … [Read more...]

How to Decrease Your Payroll Taxes with a Common Paymaster

Today’s large businesses are often comprised of many different companies such as subsidiaries in various locations. If some employees work for more than one of those related companies, and if the companies have their own payrolls, both the business and the affected employees may be overpaying FICA (social security) and FUTA (federal unemployment) taxes. Fortunately, the federal government provides a solution. Multi-entity corporations may avoid overpaying payroll taxes and duplicating payroll … [Read more...]

Reassessing Some SALT Deduction Workarounds

state and local tax

In the runup to the 2017 tax reform package, the State And Local Tax deduction “loophole” fell into the crosshairs. Lawmakers predicted that lowering the SALT limit to $10,000 a year would raise hundreds of billions of dollars. Besides, they asserted, this change will not affect 90 percent of taxpayers. That’s very small comfort to a client who happens to the in the other 10 percent. Furthermore, if your tax client is among the 5 percent of Americans who pay significant state and local taxes, … [Read more...]

Why Are Tax Industry Experts Leary of Proposed Tax Cuts?

We don’t always agree and regardless the issue, there are always arguments on both sides, and discussions are often heated. Expect nothing less toward proposed tax cuts by the Treasury Department. They are bringing forth both anticipation and trepidation by a growing number of industry experts and economists. The plan is called unaffordable and unfair. A common concern is that capital gains and dividends are taxed at a lower rate than income earned through actual work. It’s also being … [Read more...]

Are Your Clients Taking Advantage of Sellable Tax Credits?

State governments realize the economic benefit of spending billions of dollars on tax credits. Are your clients taking advantage of this? Many are not due to low tax liability. Nonprofit organizations or start up businesses that generate very little income are among them. Some states have found a solution. They have created a secondary market by enticing these types of businesses with transferable or sellable tax credits. The secondary market incentives are sophisticated and growing at a … [Read more...]

Is The New Tax Cut For Qualified Improvement Property Unfair to Restaurants?

Some laws are enacted because they appear to provide solutions to issues in need of resolution. That seemed to have been the case with the Tax Cuts and Jobs Act (TCJA) for depreciation of qualified improvement property (QIP), enacted December 2017. It had an immediate impact on 2017 taxes filed after January this year. Instead of offering a solution, it is determined this was the result of a legislative oversight. No doubt a change was necessary, but things didn’t turn out as planned. One … [Read more...]