New IRS Affordable Care Act Website
The IRS has a new website that provides information on the Affordable Care Act (see www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions-Home). The site explains tax benefits and responsibilities for individuals, employers and other organizations. In addition, it provides information about tax provisions that are in effect now and those that will go into effect in 2014 and beyond. Topics include…
Update on 50% Limit on Deductible Meal and Entertainment Expenses
Last month, the IRS declared final ruling on which party is subject to the 50% limit on deductible meal and entertainment expenses under Sec. 274(n) (T.D. 9625). According to the AICPA, it has decided to adopt the proposed regulations issued in July 2012. Before the proposals were introduced, only one party was subject to the…
It Pays to Be Honest When Hiring New Employees
Recruiting and retaining employees are often two of the hardest tasks experienced by businesses. Companies often fail at this because they go into the hiring process with the notion that they will recruit good candidates and train them, rather than hire people who already have the specific skill sets needed. Companies need to understand that…
New IRS website provides health care law information for just about everyone
Many provisions of the Patient Protection and Affordable Care Act of 2010 have recently gone into effect, and some significant provisions will do so in 2014 and 2015. To help individuals and families, employers (both large and small), and other organizations learn more about how they’ll be affected, the IRS has launched a new website:…
IRS Targets Small Businesses About Reporting Cash Income
It has recently been reported that the IRS is sending out letters to small business owners questioning their efforts when it comes to reporting all of their cash income. While the agency says the letters are simply just asking for more tax information, they are alarming and frightening many small business owners. According to several…
Now’s the time to consider short-term GRATs
Congress’s decision not to include a proposed minimum term for grantor retained annuity trusts (GRATs) in the tax legislation passed back in January — combined with low interest rates — may make it an ideal time to add short-term GRATs to your estate planning arsenal. A GRAT consists of an annuity interest, retained by you,…
Focus Your Finances on the Future
It’s hard for people to focus on future savings when their present state of finances is constantly being disrupted by the financial events taking place throughout the last few years. Unfortunately, the reality is that many Americans don’t have adequate pre-retirement income. Even though the present demands a lot of your attention, there are still…
Don’t skimp on S corporation salaries
S corporation owners often take modest salaries as a tax-saving strategy. By distributing most of the corporation’s profits in the form of dividends rather than wages, the company and its owners can avoid payroll taxes on these amounts. The tax savings may be even greater now that the additional 0.9% Medicare tax on wages in…