Most individual tax returns are electronically filed. If your name and social security number doesn’t match, the IRS computers will not accept the electronically filed tax return. Name mismatches cause problems with refunds also. The Social Security Administration (SSA) should be notified of a name change resulting form marriage or divorce by filing form SS-5 which is available at www.socialsecurity.gov.
Tax Deduction for Meals
Posted on January 11, 2012 in Advice
Typically business expenses for meals and entertainment are only 50% deductible for income tax purposes pursuant to IRC section 274(n). This is because the government feels that the taxpayer receives some enjoyment, so only 1/2 is deductible. But for financial statement purposes, 100% is expensed.
However, there is a special rule all business owners should be aware of. Meals furnished to employees can be 100% deductible pursuant to IRC 274(e) if they furnished to employees on the emloyers facility. We discuss this law with our clients all the time. These sorts of meals should be tracked separately on the taxpayers general ledger. So meals that our brought into the business or delivered and the food is for the employees would qualify as 100% deductible. Don’t forget this one when you are preparing your tax returns.
2011 Individual Tax Return filing due date
Posted on January 11, 2012 in Articles
The IRS announced that taxpayers will have until April 17, 2012 to file their 2011 individual tax returns. The IRS will also begin accepting 2011 electronically filed tax returns beginning on January 17, 2012. These updates were listed on IRS News Release IR-2012-1 which can be found on the IRS website at www.irs.gov.
Employee or Independent Contractor?
Posted on September 24, 2011 in Advice
Is the person working for you an employee or independent contractor? This question comes up often. Typically start-up businesses will want to treat as many workers as possible as independent contractors, so they don’t have to deal with payroll taxes, and other fringe benefits. However, is this approach correct? The IRS would rather has every worker treated as an employee as they would receive more payroll taxes which include social security and medicare. Also the employer is required to withhold federal and state income taxes and remit them to the government. Well this topic has been discussed often. For a starting point, review the IRS website at http://www.irs.gov/businesses/small/article/0,,id=99921,00.html. This will provide you with a brief understanding of the issue and links to other related areas. Read Article »
Registered Tax Preparers
Posted on September 24, 2011 in Advice
As a CPA, it always shocked me when I reviewed a tax return that wasn’t prepared in accordance with the applicable tax law. I’m not talking about a mistake on the application of laws. I’m saying that I saw fraudulent tax returns. Let me given you an example. A client referred a taxpayer to us to assist in an IRS issue. I met with the taxpayer and found out that the IRS wanted the refund back that it gave her. In order to determine if the IRS notice was correct, we reviewed the tax return. The IRS was stating that the taxpayer shouldn’t have taken a deduction for mortgage interest and for a large amount of charitable deduction. Read Article »
Peter DeGregori and his team at Vertical Advisors, provided me with incredible tax strategies that significantly reduced our taxes, while complimenting our business and personal goals.We now see there is a clear advantage in having a tax strategist.”
- Afshin G., Laguna Niguel, CA.
