Tracking mileage can be an incredibly tedious task and can often result in missed deductions and unnecessary paper waste. Thankfully, there’s an app for that! The 2017 mileage rate is $0.535/mile, so every 1,000 miles is worth $535.00 as a business expense, so mileage tracking can be crucial.  We have research a few app. available on both iOS and Android, which can be used to make your life easier.     Mile IQ MileBug TripLog Everlance Trip … [Read more...]

Owners of S Corporations with qualifying home offices often deduct costs as unreimbursed employee business expenses, found on Form 2106. Form 2106 can be a little tricky and your expenses on the form are deductible only to the extent that total expense exceeds two percent of AGI.  This is generally a decent option, but it is less favorable than others.  Today, we will take a look at those other options for a shareholder home office. The first option is that the corporation can pay you rent … [Read more...]

There are many ways to financially reward an employee and an investor. In most cases, S Corporation shareholders fill both roles.  It is important for the S Corporation to properly allocate wages, fringe benefits and distributions of profits, and documentation of how the allocation was determined is necessary. If a shareholder of an S Corporation provides more than minor services to the corporation and should or does receive payment, then they are an employee whose compensation is subject to … [Read more...]

“If you owe the IRS $10,000 or more in back taxes…”  If you’ve ever watched TV, chances are you’ve heard at least one commercial that begins with that very phrase or one very similar to it. Countless people fall victim to these commercials every year, seeking relief from an insurmountable amount of tax debt. Some of these commercials and companies are legit, but it can be very tough at times to tell the real from the fake. As we approach another year, it is highly likely that you will begin … [Read more...]

How often do you take the time to check your tax withholding? When was the last time you even took a look at them? The key here isn’t necessarily how often you check them, but when during the year you check them. Income tax is withheld from many sources including: wages, pensions, bonuses, commissions, and gambling winnings. It’s important for you to try to match your withholding with your actual tax liability. This means that you don’t want too little tax withheld, resulting in owing tax, … [Read more...]

Audits can cause headaches and can be incredibly stressful times for taxpayers. Avoiding high audit risk areas is key to avoiding an audit, and one risk area to consider staying away from is the IRS Form 2106 Employee Business Expenses. Form 2106 is used to itemize deductions for unreimbursed work-related expenses, like mileage, meals, lodging or entertainment. When using Form 2106, the taxpayer should keep supporting documents showing all amounts paid and also evidence that expenses were … [Read more...]

As it gets closer and closer to a new tax year, it is important for you to know that there has been changes to tax form deadlines. Many may be accustomed and familiar with the same process, year in and year out, but this year will be slightly different. The IRS has made several changes to due dates for the tax year 2016, and it is very important to be aware of these changes. There were laws passed in 2015 and 2016 that revised the filing deadlines for Form W-2 and certain types of Form 1099. … [Read more...]

Retirement can be hard to plan for, but once you’ve planned for and retired, it is crucial to stay current on your rules and regulations surrounding your retirement plans. Taxpayers born before July 1, 1945 must generally receive payments from their IRAs or workplace retirement plans by December 31. These payments are called RMDs, required minimum distributions, and must normally be made by the end of 2016. As with most rules there are special exceptions regarding age and types of plans, … [Read more...]

The IRS has recently received reports of fake IRS tax bills sent to taxpayers. The tax bills that have begun to surface are CP2000 notices, which is a type of notice the IRS sends. The problem is the IRS notice is in relation to income being reported incorrectly NOT the Affordable Care Act. Ways to identify a fake IRS tax bill follow: Fake IRS Tax Bills: Use an Austin, TX address Are in regards to the Affordable Care Act, 2014 coverage The payment voucher lists the letter number as … [Read more...]