Accounting & Bookkeeping

2015 Tax Planning Guide

New Year 2015 And Clock

 

Our 2015 Tax Planning Guide is now available. This online guide will give you access to updated tax and financial planning information throughout the year. Feel free to forward it to friends and family who you think might find it interesting or helpful. We hope this guide will prove to be a convenient resource for you throughout the year. Just a few of the topics covered in the guide are:

 

  • Roth IRA conversions
  • Bunching income and expenses as a year-end planning strategy
  • Planning for restricted stock and stock options
  • Planning for real estate investments
  • Succession and retirement planning for business owners
  • Charitable giving strategies

 

If you have any questions after reviewing the information presented, please do not hesitate to […]

Significant Increase on Penalty for Information Return Failures, effective for 2015 Forms

As a result of new legislation (the “Trade Preferences Extension Act of 2015,” passed by congress and signed by President Obama into law on June 29, 2015), penalties for failure to file information returns or to provide payee statements have been increased significantly.   The new penalties are effective for 2015 forms that are due in early 2016.

Under Internal Revenue Code (IRC) Sections 6721 and 6722, the penalty applies to both failing to timely file a correct information return with the IRS (IRC Section 6721), and failing to furnish the payee a statement (IRC Section 6722).  A penalty can be abated, however, if such failure is due to reasonable cause and not to willful neglect under the IRC Section 6724.

The most commonly used information returns […]

By |August 7th, 2015|Categories: Accounting & Bookkeeping, Business Operations, Business Tax, Individual Tax, IRS|Tags: , , , , , , , , , , , , |Comments Off on Significant Increase on Penalty for Information Return Failures, effective for 2015 Forms

IRS Issues HSA Contribution Limits for 2016

The IRS announced on May 4, 2015 the HSA contribution limits for 2016. For individuals with self-only coverage the 2016 deductible contribution limit is $3,350 (same as 2015) and for family coverage the limit has increased to $6,750.

To be eligible to contribute to a HSA you must participate in a high deductible health plan, which for 2016, is a health plan with an annual deductible that is higher than $1,300 for self-only coverage and $2,600 for family coverage and with an annual limit of out-of-pocket expenses lower than $6,550 for self-only coverage and $13,100 for family coverage.

To learn about the new contribution limits click here. To find out more about HSAs and other tax-favored health plans click here to review IRS […]

The Dangers of Treating Partners as Employees

In recent years many companies have found it very difficult to retain key employees.  In order to mitigate this issue, many companies that are organized as partnerships are offering their essential employees an equity interest in the partnership, commonly called “profits only interests”.  There are many risks, however, that companies organized as partnerships need to take into consideration before offering equity to their employees.  They may be unaware that even a small equity interest can cause unwanted tax consequences such as over/underpaid FICA taxes, and can also change the treatment of compensation and company paid benefits.   These are just a few of the risks that need to be assessed.  If you’d like to know more please click here.

By |April 21st, 2015|Categories: Accounting & Bookkeeping, Business Operations, Business Tax|Tags: , , , , , |Comments Off on The Dangers of Treating Partners as Employees

IRS Extends its Offshore Voluntary Disclosure Program Indefinitely

In December 2014, the IRS announced that it was extending its Offshore Voluntary Disclosure Program (OVDP) for an indefinite period.  The OVDP is a tax amnesty program that was launched in 2009 with the intent of encouraging taxpayers with unreported foreign bank/investment accounts to avoid criminal charges and pay reduced civil penalties by making a voluntary disclosure to the IRS. According to the IRS, since the inception of the OVDP there have been more than 50,000 disclosures, resulting in the collection of more than $7 billion in taxes and penalties.

By |February 4th, 2015|Categories: Accounting & Bookkeeping, Individual Tax|Tags: , , , , , , , , , , |Comments Off on IRS Extends its Offshore Voluntary Disclosure Program Indefinitely