Category: Taxes
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Early tax filing: what you need to know
For millions of Americans, the individual income tax refund is the largest payday that they have all year. So it is understandable that many are eager to be the first in line to file for their federal income tax refund. If you are among them, here is what you need to know: The first day…
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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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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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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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Tax preparation fees for 2015 tax returns
(This post is for 2015. For 2016 tax return average rates, see this schedule). I’ve drawn some attention lately, both positive and negative, for my two personal beliefs that: a) tax preparation industry fees should be bench-marked in some manner, and, b) that fees ought to be available to consumers in advance of making a…
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Tax preparation fees represent the “wild west” of the financial services industry
We are just three weeks away from the opening of a new tax filing season and so the subject of disclosure of tax preparation fees comes up again. My opinions differ sharply from the mainstream of the tax preparation industry. The tax preparation industry may be the last bastion of “let the buyer beware” free…
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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…