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Innocent Spouses May Get Tax Relief
When a married couple files a joint tax return, each spouse is “jointly and severally” liable for the full amount of tax on the couple’s combined income. Therefore, the IRS can come after either spouse to collect the entire tax — not just the part that’s attributed to one spouse or the other. This includes [...]
Steps to Take if an SSA No-Match Letter is Received
What should you do if an SSA no-match letter is received by your business? In the past few months, many businesses and employers nationwide have received “no-match” letters from the Social Security Administration (SSA). The purpose of these letters is to alert employers if there’s a discrepancy between the agency’s files and data reported on [...]
Q4 2019 Business Tax Calendar
Here are some of the key tax-related deadlines affecting businesses and other employers to add to your Q4 2019 business tax calendar. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact me to ensure you’re meeting all applicable deadlines and to learn more about the [...]
Catching Revenue Recognition Fraud
Early revenue recognition has long accounted for a substantial portion of financial statement fraud. By recording revenue early, a dishonest business seller or an employee under pressure to meet financial benchmarks can significantly distort profits. Fortunately, fraud experts have tools for catching revenue recognition fraud. Multiple methods Early revenue recognition can be accomplished in several [...]
Understanding the Contents of a Will
You probably don’t have to be told about the need for a will. But have you taken the time for understanding the contents of a will? Do you know what provisions should be included and what’s best to leave out? The answers to those questions depend on your situation and may depend on state law. [...]
“Kiddie Tax” Hurts Families More Than Ever
Years ago, Congress enacted the “kiddie tax” rules to prevent parents and grandparents in high tax brackets from shifting income (especially from investments) to children in lower tax brackets. And while the tax caused some families pain in the past, it has gotten worse today. That’s because the Tax Cuts and Jobs Act (TCJA) made [...]
Tax Implications of Gambling Winnings
If you’re lucky enough to be a winner at gambling or the lottery, congratulations! After you celebrate, be ready to deal with the tax consequences of your good fortune. So, what are the tax implications of gambling winnings? TAX IMPLICATIONS OF GAMBLING WINNINGS: WINNING AT GAMBLING Whether you win at the casino, a bingo hall, [...]
Fight Fraud Actively for Maximum Effect
When it comes to reducing fraud loss and duration, companies should fight fraud actively. Active detection methods (such as surprise audits or data monitoring) are far more effective than passive methods (such as confessions or notification by police). This was a major finding of the latest Association of Certified Fraud Examiners (ACFE) Report to the [...]
Plummeting RV Sales Forecast 2020 Recession
As posted to the Dent Research affiliated website Economy and Markets on 8/26/19 -- Harry Dent | August 26, 2019 RV sales are crashing at a year-over-year rate of 20% below sales for the same period last year. 2017 was the peak thus far and 2018 sales were 4% lower. Hence, this year's crash is [...]
Smartphones Impair the Brain’s Ability to Focus
As posted to the Wall Street Journal YouTube Channel on 5/20/19 (Run time: 5 min, 17 sec) Our phones give us instant gratification. But there's a cost: loss of attention and productivity. Attention is a limited resource. At any particulary moment you can only have that much of it. We live in an age of [...]
IRS is Targeting Virtual Currencies Used in Business Transactions
Bitcoin and other forms of virtual currency are gaining popularity. But many businesses, consumers, employees and investors are still confused about how they work and how to report transactions on their federal tax returns. And it has just been announced that the IRS is targeting virtual currencies that are used in business transactions users in [...]
Two Types of Power of Attorney Used in Estate Planning
When drafting your estate plan, you and your attorney must account for what happens to your children and your assets after you die. But your plan must also spell out your wishes for making financial and medical decisions if you’re unable to make those decisions yourself. A crucial component of this plan are two types [...]
Home Office Deduction Reviewed
Working from home has its perks. Not only can you skip the commute, but you also might be eligible to deduct home office expenses on your tax return. Deductions for these expenses can save you a bundle, if you meet the tax law qualifications. In this Blog Post, the home office deduction is reviewed. Under [...]
Importance of Naming Your Trustee
When it comes to estate planning, trusts are appealing for many reasons. They can enable you to hold and transfer assets for beneficiaries, avoid probate and reduce estate tax exposure. But they can be complicated to set up. Don't underestimate the importance of naming your trustee. It may be one of the most important decisions [...]
“Nanny Tax” Applies to More Than Nannies
You may have heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. You see, the "nanny tax" applies to more than nannies. Hiring a housekeeper, gardener or other household employee (who isn’t an independent contractor) may make you liable for federal income and other taxes. You [...]
Disclaimer
This blog is designed to provide competent and reliable information regarding the subject matter covered. However, it is being provided with the understanding that the blogmaster is not engaged in rendering investment advice. Laws and practices often vary from state to state and if investment assistance is required, the services of a licensed investment professional should be sought. The blogmaster resolutely encourages the reader/viewer to do their own research and due diligence before acting on any information contained herein. As such, Roger Rossmeisl specifically disclaims any liability that is incurred from the use or application of the contents of this blog. It should also be noted that the views contained in this blog are not necessarily representative of the opinions/beliefs of the other owners, management and/or employees of Kho & Patel CPAs.
