Author: tonynova
-
How to provide premium health care planning advice
This post is just an idea, an incomplete thought, a business observation with no clear direction or conclusion. I have no good answer to the headline. For my entire 30+ year working career as a financial adviser I’ve focused on the theme of keeping your personal health in focus as a core of personal financial well-being. Everyone knows…
-
Three truths about the lottery
The first truth is that the lottery is an effective and successful method of taxation. The lottery system is well described as a regressive tax on people who are not good at math. And what an effective tax system is has been. Wall Street Journal reports that the U.S. had lottery ticket sales of $277…
-
Changing opinions on small business health plan penalty taxes
Section 4980D small business excise taxes on Form 8928: which penalty applies? My article about Section 4980D excise tax penalties (NJ CPA magazine article on 4980D penalties) was written late last summer summer (in 2015) but published last week (in 2016). The risk of print media in a fast-paced topic like tax procedure is that it can…
-
Three tips for wage tax do-it-yourselfers
Here are three tips if you prepare your own W2 and 1099 forms for your small business: The first tip is that there is no need to purchase the stock forms from an office supply store. The forms are available for free from IRS at https://www.irs.gov/Businesses/Online-Ordering-for-Information-Returns-and-Employer-Returns . The second tip is don’t do this again! If you…
-
Look what’s new in professional tax software
Drake Software appears to be the overwhelming favorite tax preparation software for small accounting practices like mine. The opening of the 2015 tax filing season is only two weeks away. I just finished a two hour continuing professional education program on the updated features for 2015 tax filing season. The improvements are quite impressive. These are…
-
My two rules about tax preparation fees
My tax return preparation fees are bench-marked with published industry averages to ensure that I won’t be the least expensive and won’t be the most expensive. But my practice is based on adding substantial financial value through long term relationships, not competing on price with an average tax preparation service. Two specific rules that I…
-
What you should know about a tax preparer’s legal obligations
Every paid tax preparer is subject to five simple legal obligations: Must notify you of any observed tax non-compliance. Must exercise due diligence in ascertaining the truth and accuracy of information reported. Must safeguard taxpayer information and keep it private Must provide information to the IRS on request Is subject to preparer penalties for violations…
-
S-Corporation owner/employee health insurance
Tax treatment of health insurance for owner/employees of S-Corporations has always been, and continues to be, a confusing issue. The controlling authority is Rev. Proc. 2014-41 that provides guidance to compute the business deduction (IRC §162) for health insurance costs for self-employed individuals and the premium tax credit allowed under (IRC§ 36B). IRS Notice 2015-17 provides assurance…
-
4980D Small Business Excise Tax Liability
This is the original submitted version of the article published by New Jersey CPA magazine under the same title in the January 2016 edition. The published version was slightly shortened to meet space requirements in the print publication. Background The Affordable Care Act adds Section 9815 to the Internal Revenue Code that requires employer-provided health plans…