Author: Tony Novak
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Six basic rules for handling a tax audit
Everyone hopes to avoid a tax audit but sometimes it happens anyway. An audit always starts with a written notification by mail from the IRS, state, or local tax authority. It might just be triggered by a simple computer-generated “mismatch” error or it might be the beginning of one of the more rare types of…
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Platinum Level QuickBoooks ProAdvisor
Did you see the episode of ABC sitcom “Modern Family” where Jay and the family visit Mandalay Bay? In the story line, Jay learns there is an even better high level accommodation than the resort penthouse suite he booked so he becomes obsessed with trying to upgrade, only to learn that there are still higher levels…
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Five tax deductions you will miss this year
The Tax Cuts and Jobs Act eliminated some of the tax deductions that helped some taxpayers reduce their taxable income. These are the five you are most likely to notice when you file your 2018 return: Personal exemptions Employee business expenses Tax preparation fees Investment advisor fees Mortgage interest and property taxes above $10,000 Talk…
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A quick peek at 2018 income tax results
Here is an interesting observation of an early filer, a married client with about $170,000 total income: This chart shows marginal and effective overall tax rates for 2016, 2017 and 2018. Note the steady decline in tax rates, first in 2017 due to tax planning and then in 2018 due to the change in tax…
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What is your chance of being audited by the IRS?
Audit rate based on 2017 IRS data: Form 1040 taxpayer types, in descending likelihood of audit Returns audited International taxpayers 1 in 19 Taxpayers with gross income before deductions of over $1 million 1 in 23 Sole proprietors with gross income before deductions between $100,000 and $200,000 1 in 48 Sole proprietors with gross income…
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QuickBooks Self-employed revisited
This month I took a fresh look at QuickBooks Self-employed version. As much as I want to endorse and offer this platform for self-employed individuals, I can not. The simple reason is that Intuit does not support this product under the same platform as other QuickBooks products. I find the support to be inefficient, unprofessional…
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Reframing the language of leadership: words that matter
Words supported by action matter more in leadership than anything else. Economics, money, tax policy and other topics often visited in this blog pale to the importance of the credible and meaningful words in our leadership conversations. We now face a critical choice defined by the words we choose to use in that public conversation.…
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LAST CALL for Form 1099 filings for small businesses and nonprofits.
LAST CALL for Form 1099 filings for small businesses and nonprofits. The cost of filing these is small compared to the penalty for not filing a single one of these forms. The deadline is January 31 and we typically request at least 24 hours notice to complete and file the forms correctly. Instructions from IRS are…
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Accepting QuickBooks invitation to online accountant
Some blog post I write just for me, so that I’ll remember next time the situation comes up. If this helps another accountant, great. This is a workaround to a overly sensitive security issue that’s caught me a few times. A prospective client sends the accountant invitation through QuickBooks Online. (If you are not an…
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When do I get my tax refund?
The IRS begins accepting tax returns and processing refunds next Tuesday January 29. I can prepare and submit your tax return for e-file acceptance before then but it essentially sits in an electronic waiting list until the 29th. See tonynovak.com/taxes for information on getting started with an early tax return filing. The first tax returns…