January 15, 2015
We’re only partway through January, but W-2s, 1099s, and other tax documents are already starting to pour in. Tax season is underway. Are you ready? Chances are, you are more ready than the IRS. Due to Congress’ passage of last-minute tax law, the IRS has delayed the official opening of tax season. E-filing will become available January […]
December 29, 2014
As more states seek a bigger piece of the tax base pie, businesses are quickly discovering that every state has its own little quirks. Sales taxes are often the worst. Everything from the taxability of services to exemptions vary from state to state. Some states have tricky rules that make it difficult to determine where […]
November 20, 2014
There is no shortage of ways a taxpayer can run afoul of federal tax reporting requirements and find themselves in an audit. After all, the Internal Revenue Code (Federal Tax Law) comprised almost 74,000 pages as of 2013 and is growing each year. Despite the overwhelming quantity of information in the Code, you, the taxpayer, are required […]
November 7, 2014
Today I had the opportunity to teach a class of high school students about various tax forms, whether they should file a tax return, and some general principles for dependents of other taxpayers. It was a great group, and I had a lot of fun. Of course, I’m a tax geek. So teaching about tax […]
September 30, 2014
The 2014 income tax filing season is almost in the books. The corporate extension deadline has passed and the individual extension deadline is nearly here. Of course, this means it’s time to start doing tax planning for this year. As usual, there are some tax changes to be aware of as well as new strategies […]
August 26, 2014
2014 is a big year for changes in the health insurance world. The Affordable Care Act was set up to implement slowly over time and 2014 will see a lot of small business healthcare changes. Some of those changes will affect the Small Business Health Care Tax Credit. Currently, the credit is available for companies […]
August 15, 2014
In a recent tax court case, the IRS has successfully denied a “pizza deduction” for wages paid out in, well, pizza (Ross, TC Summ. Op. 2014-68). In this case, a small business owner who prepared taxes and did business consulting had “hired” her kids to do small jobs around the office and paid them in pizza. Rather than […]
August 4, 2014
The home office deduction has been alternately viewed as lucrative and dangerous. Does it raise your chance of getting audited? Can you really deduct your rent payment? The home office deduction is not a free-and-clear opportunity to live tax-free. However, taken correctly, it can help to reduce the costs associated with running a business out […]
June 18, 2014
This may seem like an obvious statement, but the expansion of e-commerce and logistical support systems has made interstate commerce far more prevalent than at any other time in our history. State revenue departments are paying attention. This can be especially confusing for companies in states like Florida that don’t have a personal income tax and […]
June 4, 2014
A Health Reimbursement Arrangement is an account funded by an employer to reimburse employees for medical care expenses. In the past, these arrangements have also been available to reimburse employees for purchasing their own private health insurance in lieu of having a company plan. In light of Obamacare, an important question arises: Does an Employer Funded Health Reimbursement […]
May 13, 2014
If you think publications printed by the IRS offering tax guidance are a final authority, think again. In a recent tax court ruling, the judge reinforced that the “plain language” of the law trumps IRS proposed regulations or publications (Bobrow). Basically, IRS Publications, which provide specific tax instructions for various situations, have been ruled unreliable. […]
April 16, 2014
MarketWatch is reporting this morning that former Secretary of Defense Donald Rumsfeld has sent his annual letter to the Internal Revenue Service stating that he does not know whether his return or the payments he made are in fact accurate. I certainly understand where Mr. Rumsfeld is coming from. I definitely agree with him that […]
January 30, 2014
In his recent State of the Union Address, President Obama introduced America to MyRA (or, “My Retirement Account”) for people who lack employer-sponsored retirement plans. He signed a presidential memorandum in Pennsylvania to make America’s new Savings Sweetheart official. The concept behind a MyRA is relatively simple: Taxpayers can sock away up to $15,000 into […]
January 21, 2014
It is a new year and Financial Solution Advisors, PL is expanding once again! In December, Sonny Martin joined the Financial Solution Advisors team, bringing his staff as well. Mr. Martin brings 35 years of public accounting experience to the firm. Together, the team provides a wide variety of services in public accounting, tax expertise, […]
October 17, 2013
You may have noticed a change in the quarterly payroll taxes you file with the State of Florida. They are no longer for Unemployment Compensation Tax. They are now for Re-Employment Tax. That might help you feel a little better about the higher rates you’ve been paying. Florida Form UCT… er… RT-6 Fortunately, the State […]
September 25, 2013
We have been receiving a lot of questions in our office about the ACA forms due October 1 to be distributed to all employees. We would like to take a moment to answer those questions and others with our own FAQ on the ACA forms and deadlines: 1. Do these forms need to be distributed […]
September 24, 2013
The IRS has finally come out with an answer to the question of how same-sex marriage will be taxed among the varying states. Kiplinger is reporting that as of September 16 all legally married same-sex couples must file jointly or married filing separate regardless of what state they live in. This answers the question of […]
September 16, 2013
If your business has employees, there is a critical change in the law that affects you in a massive way… and it kicks in on October 1, 2013. Notices are due to all employees. Here’s what you need to know. Keep in mind that virtually all employers are subject to this notice requirement. Further, employers must provide […]
September 9, 2013
The IRS has recently released an updated tax rule that differentiates between tips, which are voluntary payments to service personnel such as waiters, waitresses, bartenders, valet staff, etc. and service charges, such as those automatically applied to bills by restaurants for groups of certain sizes. Beginning January 2014, the IRS will treat any automatic gratuity as […]
August 16, 2013
Under the Affordable Care Act, a company with fifty or more employees must provide them with affordable health insurance, meaning the employee’s share of the premium cannot exceed 9.5% of the employee’s household income. Although that may seem relatively cut-and-dry, putting it into action will be challenging to say the least. One of the biggest […]
July 15, 2013
If you received a CP2000 notice for July, you may be getting an adjustment letter from the IRS before the end of the month. While much of what the IRS does is computerized, that doesn’t mean the IRS doesn’t have the occasional calculation error. In this case, the IRS incorrectly calculated interest due with tax […]
July 3, 2013
For years now one of the biggest fears with the Affordable Care Act has been that people might see delays in service due to higher volumes of patients. Instead we are seeing a much more welcome delay: a delay in the implementation of penalties for businesses who don’t comply. The Obama administration has given a […]
July 2, 2013
It is no secret that states are hurting for money. At the same time we are seeing an increase in the amount of interstate commerce that can be accomplished without ever setting foot in a state. From online colleges to direct seller websites to nationally known contractors, businesses are taking mobility to new levels. The […]
June 26, 2013
Earlier Wednesday, in United States v. Windsor, the U.S. Supreme Court overturned the Defense of Marriage Act (DOMA) in a 5-4 vote led by Justice Kennedy who was joined by the four liberal members: Justices Ginsburg, Breyer, Sotomayor, and Kagan, affecting the potential tax situation in which same-sex couples will find themselves. The ruling can […]
June 14, 2013
The funny thing about the IRS is that they are more predictable than a small business. So when someone buys a new house and puts their kids in private school based on a great first quarter, and then ends the year with no cash in the business due to a dismal fourth quarter, the IRS […]
April 24, 2013
April 15th has come and gone, but there are still some very important deadlines to be aware of. The next one is the deadline for your Florida Corporate Annual Report. While the deadline may vary depending on your state, Florida’s must be done by May 1st. The penalty for not timely filing your Corporate Annual […]
March 20, 2013
The new draft health insurance application for the Affordable Care Act has been released, and in many way the new health insurance application is similar to a tax return. Of course, a tax return doesn’t ask if you are pregnant or if you were ever in foster care. A tax return does ask you for […]
March 5, 2013
When it comes to collections, it is no secret that the IRS is often the one debt collector that you want to pay first if at all possible. They charge penalties, high interest rates, are quick to levy assets, and can garnish wages and bank accounts. In fact, it turns out the IRS trumps God […]
February 22, 2013
Financial Solution Advisors, PL, the tax and accounting firm that emerged from the merger of Chamberlain & Associates, PA and Gunn & Company, PA, is now one a top Jacksonville firm according to the Jacksonville Business Journal! Financial Solution Advisors, which merged in November, 2012, went from Not Ranked to #15 on the Jacksonville Business […]
January 23, 2013
The IRS has hit a road block in its attempt to ensure that anyone who prepares paid tax returns for others meets certain minimum qualifications. The US Court in the District of Columbia has blocked competency testing for registered tax preparers. The IRS can no longer register or require continuing professional education for registered tax preparers. […]
January 16, 2013
While most things having to do with taxes and the IRS tend to go from simpler to more complex, occasionally the IRS does something to make our lives easier. In this case, the IRS has simplified how we can calculate the Home Office Deduction. Rev. Proc. 2013-13 outlines a safe harbor calculation to replace the […]
January 5, 2013
The new tax deal to avert the Fiscal Cliff may affect taxpayers who are struggling the most. Social Security taxes increase as part of the agreement to avert the Fiscal Cliff to pre-2011 withholding rates of 6.2% of gross wages up to $113.700. The rate had previously been lowered starting in 2011 from 6.2% down to 4.2% […]
January 2, 2013
Late at night on New Years day, Congress voted to approve the Fiscal Cliff deal worked out by the Senate late the night before. In a last minute vote, Republicans were able to add enough votes to pass the bill and send it on to the President. The result of the deal is an extension […]
December 31, 2012
As of 6:10pm on New Years Eve, no votes are expected to avert the automatic tax hikes and spending cuts built into the Fiscal Cliff. The current deal in the works would result in $400,000 ($450,000 for married filing joint) being the new cutoff definition of “rich” and current tax rates extended for everyone else. […]
November 26, 2012
One of the aspects of the Patient Protection and Affordable Care Act that is set to go into effect in 2014 is the additional penalty tax on businesses who do not offer affordable health insurance and have 50 or more full-time employees. As a result of this pending implementation, many larger businesses are working now […]
November 7, 2012
With a slim margin, President Obama has won re-election to a second term. Although the slim vote margin and divided Congress prevent the President from perhaps pushing too strong of a tax agenda, many of his tax policies for the next four years are already in place to be implemented starting next year and beyond. […]
September 28, 2012
We are all used to sending checks to the health insurance company. So what do you do when you start getting health insurance rebate checks back from them? This is happening in some cases because of a provision in the Affordable Care Act that says insurance companies can’t have too much profit. Employers who receive […]
September 11, 2012
It seems that every year we field about a dozen phonecalls regarding phony notices, business solicitations and phishing emails sent to business owners. These range from emails with fake Quickbooks update links to official looking letters in the mail with requests for banking and personal information. We have plenty of experience helping clients sort through […]
August 29, 2012
As the election approaches, both candidates will begin to reveal more details about their separate tax plans. Some aspects of the two tax plans are pretty simple to understand, such as rate reductions or increases. Other things are not so easy to understand. For example, what is a territorial tax system? This is a question […]
August 9, 2012
Hurricane season started early this year. Unlike most hurricane seasons, this year has been especially active for Jacksonville, Florida. However, whether it is a hurricane, snow storm, flood, lightning, or simply aging equipment, businesses should assess their hurricane and contingency planning strategies, and how they can preserve their documents and records in the case of a […]
July 13, 2012
Have you received a notice from the IRS telling you that your tax return has been selected for examination? Selection for examination means that you are being audited by the IRS. Here’s what to do if you are audited. If your tax return is selected for examination by the IRS, you may receive the audit […]
July 6, 2012
The Affordable Care Act has been ruled constitutional, but Congress’ ability to take Medicaid away from states who refuse to implement the voluntary portions of the act is not. Many of you are wondering now how this will affect you. Click here for a list of the tax increases and benefits written in to the […]
June 14, 2012
When Krystle Reyes of Salem, OR filed her state tax return via Turbo-Tax, she decided to add a couple zeros to some key figures. Reyes overstated her income by $3 million and requested a $2.1 million refund. She got it. In the age of computers, you may be surprised to see that this scam was […]
June 12, 2012
Taxpayers who contributed to an IRA in 2011 are starting to receive their Form 5498, IRA contribution forms. You may receive this form even if you made a contribution in 2012 for 2011. The form is primarily for information purposes, and does not have to be sent in with your tax return. If we have […]
May 31, 2012
Call it an incentive, or call it a loophole, but when IC-DISC and foreign sales are paired, tax advantages aboutnd. IC-DISC corporations are a way that foreign export companies both big and small can help their shareholders significantly reduce their tax rates. Companies that sell US sourced products overseas can trade ordinary income tax for […]
May 7, 2012
The IRS is increasing scrutiny on small businesses. The shift in focus is not a new approach but a reallocation of resources that have already been stretched extremely thin. With limited resources and a shrinking budget the IRS has to determine the most cost effective and beneficial allocation of their resources. Several factors have led […]
March 17, 2012
In the age of computers, there’s not much that gets by the IRS. In fact, the IRS is seeking to automate as much as possible to bring relief to its agents. While this is great for them, it can be a nightmare for filers. The result has been a staggering number of computer generated IRS […]
March 2, 2012
If you thought that filing early would guarantee a speedy return of your tax refund, think again. The IRS is reporting tax refund delays of up to two weeks beyond their normal 10 day return maximum due to computer troubles with their new anti-fraud detection system. The IRS is working extra hard this year to […]