IRS issued more guidance on wage tax withholding

Posted Leave a commentPosted in payroll, Small Business, Tax Planning, Taxes

Yesterday the IRS issued more guidance on wage tax withholding rules in response to changes triggered by the Tax Cuts and Jobs Act.  Notice 2018-14 provides guidance to both individual taxpayers and employers on tax withholding requirements for wages. One of the most significant changes is the default rate of withholding on bonuses or supplemental wages is […]

Tax savings with accountable plans

Posted Leave a commentPosted in Accounting, Small Business, Tax Planning

The Tax Cuts and Jobs Act snuck up on many of us. Suddenly in January 2018 tens of millions of Americans are denied a range of tax deductions that have been part of our personal and business financial culture for more than a lifetime. While most taxpayers will see a decrease in taxes, some of us […]

Home office deduction for employees in 2018

Posted Leave a commentPosted in Employee Benefits, Tax Planning

The Tax Cuts and Jobs Act now in effect for 2018 no longer allows for employee1 home office deductions. This is a significant tax change that, according to the IRS, adds up to billion lost deductions, and increased taxes for over ten million taxpayers. The complete elimination of deduction of employee business expenses is one of […]

Small business employee benefits under the Tax Cut and Jobs Act

Posted Leave a commentPosted in Employee Benefits, Small Business, Tax Planning

This is the one version of an opening to a group of articles that I am preparing for specific industry or professional groups in my area of concentration: small business employee benefits planning. This version is for CPAs but other versions of the article will be appropriate for small business audiences. In the final weeks […]

Top 7 EASY Tax Saving Strategies for 2018

Posted Leave a commentPosted in Employee Benefits, Tax Planning

The Tax Cuts and Jobs Act of 2017 brought many changes and new opportunities to legally cut the amount of tax that we pay. Just as before, the largest savings are available to those who take deliberate tax saving actions designed to arrange their financial and legal affairs to lower taxes. The tax planning strategies considered […]

How to address the 2018 increase in small business corporation taxes

Posted Leave a commentPosted in Small Business, Tax Planning, Taxes

Effective January 1, 2018 the corporate tax rate for the first $50,000 of earned income jumps from 15% to 21%. That 6 percent increase translates to an additional $3,000 federal income tax due for 2018 for a small corporation. Thousands of small businesses are affected. Some are understandably irate that a tax law called the […]

Outside sales representatives hit by a tax increase January 2018

Posted Leave a commentPosted in Tax Planning, Taxes

If you are an employee with large unreimbursed business expenses then you either need to ask for a raise immediately of prepare for a potentially large tax increase. One of the most common types of occupations affected is outside sales representative however any employee in any occupation with work-related expenses would be affected the same way. […]

Legislative History as Tax Authority: an Obsolete Concept?

Posted Leave a commentPosted in IRS, Legal, Tax Planning, Taxes

Early in my professional tax career I learned about the concept of legislative history as tax authority. In fact a large part of any legal education is learning to evaluate evidence based on its qualitative characteristics, statutory consideration or local rules. In tax law this hierarchy of authority becomes the logical and legally supportable basis that […]

Terminology of Federal Income Taxes

Posted Leave a commentPosted in Tax Planning, Taxes, Wealth Management

Lately we’ve heard plenty of discussion about tax law. It seems especially common right now when tax terms have come up multiple times in casual conversation this past week at coffee, family dinner and email from a client. In some cases the terms are misused or misunderstood. Like many types of discussion, meaningful communication depends […]