Newsletters

Tax Filing Reminders

January 31st  Due date for employers to furnish W-2 statements to employees and to file Forms W-2 with the Social Security Administration (both paper and electronic forms) Due date for payers to provide most Forms 1099-MISC to recipients and Forms 1099-MISC with box 7 Non-Employee Compensation to the IRS Due date for employers to file 2019 federal unemployment tax returns and pay any tax due February 28th Due date for payers to provide Forms 1099-MISC (other than box 7 Non-Employee Compensation) to the IRS Due date for payers to provide…

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To Safeguard Your Company’s Data, Consider a Cybersecurity Assessment

As data breaches continue to make headlines at an alarming rate, no business can afford to ignore cybersecurity. To ensure that your company is taking appropriate steps to protect sensitive information — both its own and that entrusted to it by customers and business partners — consider conducting a cybersecurity assessment or audit. An added benefit of these assessments is that it sends a message to your customers and others that you take their data security seriously, which can provide a competitive advantage. The first step the auditor will take…

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2020 Limitations and Rate Updates

The IRS has released a new Form W-4. With the Tax Cuts and Jobs Act, personal exemptions were discontinued. In response, the IRS has redesigned the Form W-4 to remove the allowances previously used in determining the appropriate withholding. Current employees do not have to file new Form W-4. Employers can continue using the previous one. All new employees must file with the new Form W-4. The following payroll caps and limitations have been updated for 2020: Social Security wage base increases from $132,900 to $137,700 401(k) maximum deferral increases…

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New tax bills were signed into law by year-end could affect your tax your return

On December 20, 2019, President Trump signed into law two bills that would fund the government until September 2020. Inside the spending bills were many tax extenders, tax repeals, and changes that affect taxpayers. The legislation repealed taxes associated with the Affordable Care Act. A 2.3% excise tax on medical devices was set to begin in 2020 and a 40% excise tax on the expensive health insurance plans known as “Cadillac Plans” was set to begin in 2022. Both of these taxes were repealed. In addition, the annual fee to…

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Tax Filing Reminders

December 31st  Due date to complete 2019 tax-free gifts up to $15,000 per recipient Due date for paying expenses you want to deduct on your 2019 cash basis income tax return January 15th   2019 calendar-year fourth installment of individual estimated tax and trust estimated tax January 31st  Due date for employers to furnish W-2 statements to employees and to file Forms W-2 with the Social Security Administration (both paper and electronic forms) Due date for payers to provide most Forms 1099-MISC with non-employee compensation in box 7 to recipients and to…

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Finding the Right Buyer for Your Business

How do you determine the buyer or category of buyer that will lead to a successful sale of your business? Is your potential buyer likely to be a strategic buyer, a financial buyer, or a related buyer? Strategic Buyers are generally competitors, vendors, customers, or companies in a related industry.  Consequently they may have connections to your industry and may realize various synergies in acquiring your company. These synergies may enable them to pay a higher price than other buyers. Determining the right kind of strategic buyer helps you plan…

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Tax Implication of Receiving a Gift

In general, the receipt of a gift has no effect on your taxable income. Any income you receive from that property is taxable to you when you receive it. Your cost basis of the property you have received is the same as the donor’s cost basis. You will need to ask for that information, as you will need to know that if you sell the property. There are two exceptions to that rule: the first is that if the donor actually paid gift tax, you may be able to add…

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Adapt to DOL’s Final Overtime Exemption Provisions

On September 24, 2019, the U.S. Department of Labor issued the final version of its overtime rule. The new rule goes into effect on January 1, 2020, and is expected to provide overtime protection to 1.3 million American workers who are not currently eligible. Eligible workers are entitled to at least time and one-half their regular pay for all hours that they work over 40 in a work week. Nonprofit organizations are not excluded from the new law and its implications for them will be discussed below. What is new…

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Increasing the Value of Your Business

This article deals with the process of increasing business value from the perspective of a buyer of the business. The real value of a business is the amount for which it can be sold. But maximum value is dependent not just on what some buyer will pay, but on selecting the type of buyer that will pay the most. Privately owned businesses are typically sold on the basis of a multiple of earnings. Earnings for this purpose are expressed in a formula called EBITDA (earnings before interest, taxes, depreciation, and…

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Meals and Entertainment: Which Expenses are Still Deductible?

The Tax Cuts and Jobs Act of 2017 (TCJA) slashed many common deductions for business meals and entertainment. Yet a great deal of confusion remains about what is, and is not, deductible. Although most entertainment expenses no longer qualify (with some exceptions), many expenses for business meals continue to be deductible, at least in part. Here’s a quick review. Entertainment The TCJA generally ended the practice of deducting expenses for activities deemed “entertainment, amusement, or recreation.” Also eliminated are club memberships, regardless of how much business may be taken there….

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