Payroll matters: 2018 withholding tables are a-changin’

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For employers, managing payroll smoothly and properly is a delicate, critical matter. There may be no quicker way to turn a happy employee into a disgruntled one than by mishandling his or her paycheck. This year, employers have an additional challenge to contend with in this area. When Congress passed and the President signed into […]

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Music venue was a labor of love

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Business owners can generally deduct business losses on their tax returns, but if the related activity is deemed a hobby, the deduction is limited. To qualify as a bona fide business, a profit motive must be shown, demonstrated by operating in a businesslike manner. One music enthusiast ran a performance venue, which incurred losses year […]

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The IRS urges prompt action for some filers

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Taxpayers who have expired Individual Taxpayer Identification Numbers (ITINs) and who need to file tax returns this season must act fast to renew their ITINs, as the renewal applications can take up to 11 weeks to process. ITINs are used by those who have federal tax obligations but don’t qualify for a Social Security Number. […]

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Tax season is in full swing

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The IRS began accepting 2017 federal income tax returns on Jan. 29. The tax agency reports that it is expecting upwards of 155 million returns. More than 70% of them are expected to yield refunds. At least 90% of refunds will be issued within 21 days of receipt of the returns, but refunds that include an earned […]

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February 2018 Tax & Business Alert

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TAKE A LOOK AT THE DOMESTIC PRODUCTION ACTIVITIES DEDUCTION The domestic production activities deduction provides a tax break for certain “domestic production activities.” Unfortunately, many businesses tend to overlook it because they believe the tax break applies only to a few industries. This article points out that the deduction remains available to a wide range […]

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2 tax credits just for small businesses may reduce your 2017 and 2018 tax bills

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Tax credits reduce tax liability dollar-for-dollar, potentially making them more valuable than deductions, which reduce only the amount of income subject to tax. Maximizing available credits is especially important now that the Tax Cuts and Jobs Act has reduced or eliminated some tax breaks for businesses. Two still-available tax credits are especially for small businesses […]

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Remind soon-to-be retirees about RMDs

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Do you have employees in their late 60s? If so, are they aware of the required minimum distribution (RMD) obligations beginning at age 70½ for their IRAs and possibly their 401(k) plans? It’s essential that they know what to expect when they reach that age so they can avoid a potentially whopping penalty. As their […]

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Can you deduct home office expenses?

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Working from home has become commonplace. But just because you have a home office space doesn’t mean you can deduct expenses associated with it. And for 2018, even fewer taxpayers will be eligible for a home office deduction. Changes under the TCJA For employees, home office expenses are a miscellaneous itemized deduction. For 2017, this […]

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Meals, entertainment and transportation may cost businesses more under the TCJA

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Along with tax rate reductions and a new deduction for pass-through qualified business income, the new tax law brings the reduction or elimination of tax deductions for certain business expenses. Two expense areas where the Tax Cuts and Jobs Act (TCJA) changes the rules — and not to businesses’ benefit — are meals/entertainment and transportation. […]

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IRS extends deadlines for ACA information reporting

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Under the Affordable Care Act (ACA), certain employers must report health care plan information to the IRS and employees. Specifically, Forms 1094/1095-B (B Forms) and Forms 1094/1095-C (C Forms) may need to be submitted for the 2017 tax year. The agency recently extended submission deadlines for these forms under some circumstances. Let’s delve into the […]

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