Category: Small Business
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The latest word on HRAs
On December 16, 2015, IRS issued Notice 2015-87 that said “Treasury and IRS are aware that many HRAs do not currently contain the restriction necessary to integrate an HRA with employee-only coverage under the employer’s other group health plan”. We learned from this most recent guidance that an HRA plan must be in compliance both…
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Is my small business required to file Form 1095?
Form 1095 is a new informational tax return that is a requirement incorporated into of the Affordable Care Act. Some small businesses are required to file it for the first time this season. There are three types of Form 1095: 1095A from a Health Insurance Marketplace 1095B usually from an employer (the form discussed below…
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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…
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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…
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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…
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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…
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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…
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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…
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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…
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Celebrating small business basics in 2016
I am celebrating today. Finally, I am comfortable with my “business basics”. Email, telephone system, calendar, data management, computer hardware, and reliable Internet access all brought me significant problems in 2015. It seemed that Murphy’s Law ruled last year and I suffered perfect storms of the worse possible technology interruptions. It even cost me a…