Warning to small businesses about 1099 filing requirements

Posted Leave a commentPosted in Accounting, IRS, Taxes

Facebook Live video added. Based on a handful of disturbing conversations and online exchanges over the past two days, I feel compelled to send this message to my small business clients: “This year the Internal Revenue Service has moved forward the deadline for filing information returns for payments that businesses made in 2016 to its contractors. Form […]

Two changes to tax preparation fees for 2016

Posted 1 CommentPosted in Accounting, IRS, Taxes

The only two significant changes to tax preparation services from 2015 to 2016 stem from changes the IRS implemented to hold tax preparers financially responsibility for tax fraud. IRS knows that a significant amount of fraud comes from two types of tax returns: People who file for refundable tax credits like Earned Income Credit, Child Tax Credit or American […]

Four good reasons to use an ITIN

Posted Leave a commentPosted in Government, immigration, IRS, Taxes

If you do not have a social security number, perhaps because you do not have legal immigration status in the US yet, then I strongly recommend that you obtain and use an Individual Taxpayer Identification Number (ITIN). Here are four key points: No fear of INS –  An ITIN is not used as an immigration enforcement tool. Many millions […]

Why small business taxpayers must use QuickBooks

Posted 1 CommentPosted in Accounting, IRS, Taxes

Note: Throughout this post the term “QuickBooks” means any electronic accounting system, not specifically the brand name product. There is evidence, as cited in the story, that the market dominance of the branded product has caused the term to be used to describe a class of electronic accounting products. I am accredited with QuickBooks and several other accounting […]

The myth of the ‘correct’ tax return

Posted Leave a commentPosted in Accounting, IRS, Taxes

I occasionally have a conversation with a client, a potential client or another accountant on the topic of the accuracy of a tax return and IRS action. The comments might sound something like one of these: “The last two accountants messed this up and it needs to be made right.” “I am very particular about my […]

IRS catches nonprofit accounting cover-up

Posted Leave a commentPosted in Accounting, IRS, Nonprofit, Taxes

This week the Washington Post reported that Donald Trump was fined $2,500 by the IRS for filing a false report to the IRS about the activities of his nonprofit foundation. Nonprofit organizations are not supposed to give money to political campaigns. He did, and then covered up the political donation by reporting it to the […]

Save money by skipping small business accounting

Posted Leave a commentPosted in Accounting, IRS, Small Business

I have a few small business clients who do not bother with traditional accounting. That is, they do not have a system like QuickBooks or something similar to compile, organize and analyze their financial transaction records in real time. In most cases these are sole proprietors. But in one case an owner of a multi-million dollar sales […]