Category: Small Business
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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…
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A 2016 marketing suggestion for small business advocates
I am starting 2016 with this bold self-promotion that is, bluntly, outside of my comfort zone. The intent is to give a boost to my public appearance schedule that, during a long period of injury recovery, dropped off while I was not working in this field. If you produce conferences, write a blog, offers workshops or produce…
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News: 2015 small businesses health plan tax filing extension
This article summarizes the issues that apply to small business employers only. See the IRS publication for provisions of Notice 2016-4 that pertain to larger employers. Small business employers who provide health benefits outside of an insurance policy have a two month extension on reporting those benefits to employees and a three month extension for…
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Year-end tax Scrooge on auto purchase and charitable contributions
We hear plenty of auto sales ads touting the benefits of increased depreciation as a great reason to buy a new car this week. Likewise, charities make a big year-end push this week promoting the tax benefits of charitable contributions. I don’t want to be a spoil-sport and discourage anyone from buying a car or…
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International small business health plans for 2016
New options for avoiding excise taxes on international worker health benefits Small business employers with employees stationed outside of their home country face some difficulties providing medical insurance. In most cases employers have fewer health benefit plan choices available compared to firms with all their employees in the U.S. For 2016 there are several additional options…
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Last minute tax shelter setup for 2015
Every year there are a few small business owners who wait until the last few days of December to set up a retirement plan or pension plan that winds up reducing their tax liability by many thousands of dollars at tax filing time in the spring. It takes a few hours work for each plan…