Newsletters

CHANGING IRS AUDIT RULES FOR PARTNERSHIPS

In an effort to make IRS examinations of partnership returns (Form 1065) more cost effective for the government, Congress included new partnership audit rules in the Bipartisan Budget Act of 2015. These new rules are scheduled to be effective for partnership tax years beginning after 2017. The rules apply to partnerships and LLCs treated as partnerships. The Treasury Department has issued Proposed Regulations addressing some of the specifics, but there are many unanswered questions and some genuine concerns about how to handle certain issues. The purpose of this correspondence is…

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Tax Filing Reminders

September 15 Third quarter installment of 2017 individual and corporation estimated income tax is due. S corporations: Filing deadline for 2016 tax returns for S corporations that requested/received a six-month extension. Partnerships: Filing deadline for 2016 tax returns for partnerships that requested/received an automatic six-month extension. Electing large partnerships: Filing deadline for 2016 tax returns for electing large partnerships that requested/received a six-month extension. September 30 Filing deadline for 2016 trust tax returns that requested/received an extension of the April due date. October 16 Filing deadline for 2016 individual or…

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Say Goodbye to the College Tuition Deduction

Congress decided not to extend this $4,000 deduction for 2017, leaving many parents worried that college will now be more expensive. However, Congress left in place two popular education credits that may offer a more valuable tax break: • The AOTC. The American Opportunity Tax Credit (AOTC) is a credit of up to $2,500 per student per year for qualified undergraduate tuition, fees and course materials. The deduction phases out at higher income levels, and is eliminated altogether for married couples with a modified adjusted gross income of $180,000 ($90,000…

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Avoid These Common Tax Mistakes

There are nearly 1,000 different tax forms used by the IRS to report tax obligations.  It’s no wonder the IRS faces thousands of tax returns with errors each year. Here are some of the most common: Wrong names and Social Security numbers. Taxpayers regularly make mistakes by entering incorrect information for their spouses and dependents. If you recently married or divorced but haven’t yet changed your name with the Social Security Administration, you’ll need to file under your old name. Errors in age and birthdate. Much of the tax code…

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Contractor or Employee? Knowing the difference is important

Is a worker an independent contractor or an employee?  As an employer, getting this wrong could land you with an IRS audit and cost you plenty in many other ways. Here’s what you should know: As the worker: If the worker is a contractor and not considered an employee, he/she must: • Pay self-employment taxes (Social Security and Medicare-related taxes). • Make estimated federal and state tax payments. • Handle his/her own benefits, insurance and bookkeeping. As the employer: You must ensure your employee versus independent contractor determination is correct. Getting…

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Using a Professional to Negotiate Better Lease Terms

After payroll, the building lease is often the largest expense for your organization. Once the lease is signed, you may not think about it until it’s time to renew. At that point, you may wish for some concessions from the landlord, but often lose out. If you start the transaction at the wrong time, you lose leverage and posture. If you don’t know the market, you are simply begging or bluffing. If you can’t handle conflict, you will most likely receive even more pressure and stress from the landlord or…

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Stanfield + O’Dell’s new website launched

We are excited to announce the launch of our new website. Please visit the website at stanfieldodell.com.

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Tax-free income

Yes, that’s correct, there are some forms of income you receive that may be tax-free. Here is a list of eight common sources of tax-free income. Gifts. Gifts you receive are not taxable income to you. In fact, they are not subject to gift tax to the person giving the gift as long as the gifts made in one year by one person do not exceed $14,000. Rental income. If you rent your home or vacation cottage for up to 14 days, that rental income does not need to be…

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Reap the benefits of hiring your child for the summer

Hiring your children to work in your business can be a win-win situation for everyone. Your kids will earn money, gain real-life experience in the workplace, and learn what you do every day. And you will reap a few tax benefits in the process. The following guidelines will help you determine if the arrangement will work in your situation. Make sure your child works a real job that he or she can reasonably handle, no matter how basic or simple. Consider tasks like office filing, packing orders, or customer service….

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Three actions to save for retirement

If you haven’t started saving for retirement or you haven’t saved enough, here are three actions you can take to put you in a better position during your golden years: Contribute as much as possible every year to a 401(k) pretax retirement plan, up to $18,000 maximum, or $24,000 if you are age 50 or older. Contribute as much as possible to a Traditional or Roth IRA every year, up to the $5,500 maximum, or $6,500 if you are age 50 or older. Contribute as much as possible to a…

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