Archive for the ‘Business Tax’ Category

Is Your Business A Family Affair?

Wednesday, November 16th, 2016

Top Tax Savings Strategies For The Family-Run Business

Family Business- Ohio Tax Planning

Instead of chores, how about give your children a job to do in your family-run business. The money they earn can go to their college savings account and the savings you accumulate can be reinvested to help your company find future growth. Read on to learn more.

There’s a certain freedom associated with being self-employed, but there’s also a lot of responsibility … and expenses. Fortunately, the family that’s invested in the success of the business, and is willing to roll up their sleeves and get to work, may be able to secure some significant tax savings.

Marriage Has It’s Benefits

If you’re married, chances are good that your spouse is already doing helping out in some aspect of your business. So why not extend a formal job offer? While you may be hesitant to bring them aboard (officially), there are several key reasons why it pays to add your spouse to the payroll.

  • Retirement benefits – Once hired, federal taxes will begin to be withheld from your spouse’s paycheck. That means that they will start receiving Social Security credits toward retirement. This alone is a pretty great (when it comes to retirement – every little bit helps), but the retirement benefits of hiring your spouse don’t stop there. If your business already offers employees a retirement plan, those benefits can be extended to your spouse when they opt in to the plan as well. Furthermore, contributions your company makes to the plan are tax deductible – up to 25 percent of compensation or $49,000, whichever is less.
  • Health Insurance – Business owners everywhere continue to struggle with the affordability of health care. But those who do offer this benefit to their employees, might be able to secure some additional savings by opting to cover their spouse as an employee rather than as a dependent. Especially if you consider the fact that your company can deduct the premiums it pays for employee health coverage. Then you may want to ask your tax advisor if you are also eligible to receive the health care tax credit.
  • Life Insurance – Because they are employees of your business, your spouse is eligible for the same benefits as all your other employees. That includes life insurance. And those costs are deductible as business expenses as well.

All Hands On Deck

Raise your hand if you had to do chores as a kid. We all did. It taught us work ethic and the value of a dollar. These days, families that own their own businesses can go a step further. Instead of paying your son or daughter a few dollars to mow the lawn, how about hiring them as a grounds keeper for your business? These days giving your kids a job in your business isn’t just a huge help when it comes to managing the day-to-day responsibilities of the company, it can be advantageous from a tax perspective. Business owners who welcome their kids to the family workforce, may be able to:

  • Deduct their children’s salary from the business’s income as a business expense.
  • Avoid paying FICA tax on their children’s salary.
  • Shift a portion of business income from your tax bracket to your child’s to significantly reduce your taxable income.

But, in order to make this strategy work, you must be able to prove that your children are legitimate employees and that their work is necessary. And don’t forget to fill out all the proper forms that go along with hiring any new employee (W-4, U.S. Citizenship and Immigration Services Form I-9, Employment Eligibility Verification, etc.). It’s also wise to keep track of their work and the time they put in by maintaining a time sheet. Also, while it may be tempting to pay your kids top-dollar for answering phones or cleaning the office, the IRS is on the lookout for unreasonable compensation practices. Don’t pay your son or daughter more than what you would pay a stranger for doing the same job and pay them regularly, as you would with any other employee. Your child’s paycheck can then be directly deposited into an account in your child’s name.

TIP: Get more out of your child’s earnings by opening a Roth IRA or 529 College Savings Plan in your child’s name and direct deposit their wages into the account and watch it grow.

Start taking advantage of the various strategies available for family-run businesses. Email rea.news@reacpa.com or ted.klimczak@reacpa.com to find out how.

By Ted Klimczak (Medina office)

Check out these articles for more tax tips and insight:

5 Tax Deductions To Ease Your Business’s Tax Burden

How To Drive For Business And Save On Your Tax Bill

Share Button

Fall Into Tax Prep …

Thursday, September 22nd, 2016
tax planning

Today is the first day of Fall, how are you getting your taxes ready for the end of the year?

According to the calendar, summer 2016 has officially come to an end. But, fortunately for you, there are a lot of reasons to smile in autumn! From sipping on a pumpkin spice latte while snuggling deeper into your favorite hoodie to enjoying a great college football game with friends and family; these months certainly seem to bring with them a certain type of comfort and tranquility. Did you know that you can extend this calmness and well-being into the tax season as well? All it takes is a little tax prep on your part. Then, when January rolls around, you can rest easy knowing that you are prepared and poised to take advantage of more tax savings than ever before.

Take a look at these helpful articles to get you started on the right foot.

Organization Is The Key To Your Tax Prep Success

  • File Faster With This Tax Prep Checklist It’s that time of year again – time to gather your information and prepare to file your tax return. If you want the process to go smoothly, make sure to gather and organize your information before sitting down with your tax preparer. You may be surprised how fast the entire filing process goes if you spend a little time preparing!
  • If You Can’t Avoid It, Organize It: Organization Is Critical To Financial Planning and Tax Preparation Tax planning is one of the essentials to personal financial planning and wealth creation. And taxes are one of those things you need to think about all year long, not just during filing season. Having recently filed (or extended) your return, it’s time to take a look back and a look forward and determine how you can be better prepared for next year’s tax season.
  • Stay Organized Year-Round To Make Tax Prep EasierThe best advice to get ready to prepare your taxes is “don’t wait!” Stay organized year-round in accumulating information that will be needed for tax filing.

Wondering what more can do to better prepare the upcoming tax season? Reach out to the team at Rea & Associates for some tips. And while you have a professional tax advisor on the phone, schedule a day and time to meet with them to discuss your unique tax situation. The best way to optimize your tax savings is to work one-on-one with the experts and meeting times fill up fast once tax season begins!

Share Button

Business Leaders Sought Out Essential Financial Information In July

Wednesday, August 3rd, 2016

New due dates, new rules, new opportunities to save on your upcoming bill to the IRS. When you think about it, it’s really no big surprise why we would start pushing summertime tax prep tips to all the savvy business owners out there. And, from the look of it, many of you have taken advantage of the great tidbits of information we’ve left for you on our blog.

Are you wondering which posts were getting the most clicks in July? Well, wonder no more! Research revealed that our readers found the following top blog posts to be particularly tasty!

July’s Top 5 Blog Posts

  1. Brush Up On These New Tax Form Due Dates Did you know that the IRS has changed the due dates for many of your tax return forms? Stay out of trouble with the IRS. Start studying up on the new tax form due dates by clicking here.
  2. Work or Pleasure? Make Traveling for Charity Part Of Your Summertime Tax Savings Strategy In addition to planning a fun family get-away this summer, you might want to carve out some time to donate your services to a noble cause as well. For all of you summertime volunteers, listen up and make plans to use some of your travel expenses to help lower your tax bill. Here’s how.
  3. Would You Know If Someone Was Stealing From Your Business? A 20-year employee at a city school charged with managing adult education programs was known as a hard worker who had secured her colleagues’ respect. But when external auditors came into the district to review the school’s financial records, it didn’t take long to realize that something just wasn’t adding up.
  4. How Will A Tax Credits and Incentives Plan Benefit Your Business? If you had a chance to claim thousands of dollars, would you? Well, if you are a business owner, the opportunity is staring you right in the face. But you have to seize the opportunity sooner rather than later.
  5. What Happens if My 401(k) Plan is Out of Compliance with an IRS or DOL Rule? If the IRS retroactively disqualifies your plan, the disqualification (and the IRS’s ability to impose taxation) is effective only for taxable years for which the statute of limitations has not expired.

Did you miss these posts when they went to print? Want to get our top tips delivered directly to your inbox? Subscribe to our blog and never miss a blog post again!

And for those of you who are looking for advice to help move the needle in your business? Contact the experts behind the article. The team at Rea & Associates is always ready to help you find a brighter way!

Share Button

Business Podcast Heats Up In July

Thursday, July 28th, 2016

Regular listeners of unsuitable on Rea Radio already know that the summertime lull had no effect on the show’s quality. July has been an entertaining and informative the month for the Rea & Associates’ podcast. From discussing the many reasons American consumers should support locally-owned businesses (Self-Reliance: Made in America) to this week’s episode about cybersecurity concerns, (The Hacked & The Hacked Nots) featuring Rea’s own Joe Welker, CISA. Listeners also got a spoonful of crisis communication advice and insight from Denny Lynch, Wendy’s former senior vice president of communications (The Infamous “Finger In The Chili” Incident) and then learned that LLC’s, C-Corps and S-Corps were not created to be equal in the world of entity structure (Maximize Your Equity: Maintain The Right Business Entity) form Gene Spittle, CPA, PFS, CGMA. In short, there was literally something for everybody to listen to and enjoy.

Want to hear what you’ve been missing? Check out this month’s episodes below.

Happy listening!

Episode 38: Self-Reliance: Made In America

Long days, vacations, barbecues, baseball … what’s not to enjoy about summer?! It’s also the time of year when we celebrate what it means to pursue the American dream. And, for many, this dream materializes in entrepreneurship and, going a step further, buying American-made products as a way to support a strong domestic economy. Kyle Stemple, CPA, CGMA, principal and director of manufacturing services at Rea & Associates, talks about the value of “buying American,” and the direct impact consumers have on America’s marketplace and the quality, customer service and product support we receive from domestically-run businesses.

Episode 39: The Infamous ‘Finger In The Chili’ Incident

Remember the time America began checking their Wendy’s chili for rogue fingers? Denny Lynch does. As the senior vice president of communications at the time of the crisis, Denny and his team was not only responsible for helping disprove the claim, but to maintain the brand’s image and reputation as one of the nation’s premier fast food restaurant brands. On episode 39, “the infamous ‘finger in the chili’ incident,” Denny and Mark discuss crisis communications and why clear, consistent internal and external communication strategies are critical when businesses have to protect their brands from unforeseen crisis situations.

Episode 40: Maximize Your Equity: Maintain The Right Business Entity

How much thought did you put into how your business would be structured. Did you consider whether economic conditions would be more favorable if your company operated as a LLC (Limited Liability Company), C Corp or S Corp? Were the tax implications weighing heavily on your mind as you wrestled with this important decision? Your business’s structure is not a decision to be taken lightly and Gene Spittle, CPA, PFS, CGMA, a principal at Rea & Associates, will tell you why on this episode of unsuitable on Rea Radio.

Episode 41: The Hacked & The Hacked Nots

Lack of cybersecurity training has left companies nationwide vulnerable to the ever-growing and constantly changing threat of cybercrime. On episode 41 “The Hacked & Hacked Nots,” we learn why many companies are incorporating third-party software to monitor and protect their firewalls to determine which sites are safe and which ones should be avoided at all costs to help protect you from cybercriminals. Joe “Captain Data” Welker, CISA, Rea & Associates’ IT Audit Manager, joins us once again to give listeners some valuable insight into current cyber hacking and internet threats and what we can do to keep ourselves, and our businesses, safe. You are not gonna want to miss this episode!

If you like what you hear, subscribe to unsuitable on Rea Radio on SoundCloud or iTunes or sign up to receive weekly email alerts when new episodes drop.

Share Button

How Will A Tax Credits and Incentives Plan Benefit Your Business?

Tuesday, July 19th, 2016
Tax Credits & Incentives Plan | Ohio CPA Firm

Right now, there is an estimated 3,000 federal, state and local credits and incentives valued at more than $50 billion available to your business. Find out what you can do to capture a piece of the billion-dollar-pie.

If you had a chance to claim thousands of dollars, would you? Well, if you are a business owner, the opportunity is staring you right in the face. But you have to seize the opportunity sooner rather than later.

Right now, there are around 3,000 federal, state and local credits and incentives valued at more than $50 billion available to your business. These opportunities are both statutory and negotiated and include hiring credits, investment credits, real and personal property incentives, utility rate reductions and infrastructure grants – just to name a few. Unfortunately, only a relatively small number of companies are taking advantage of these opportunities. 

Read Also: The Do’s And Don’ts Of Summertime Tax Prep

So why aren’t businesses seizing these opportunities for cash flow enhancement and return on investment? Sometimes companies don’t know they exist, or they think that they are too complex to understand and the opportunities are not worth the effort. Wrong!

If you take the time to develop a credits and incentives plan, your company can capture a piece of the $50 billion pie. Here’s how!

Key Elements of a Tax Credits and Incentives Plan

  1. Outline your key opportunity indicators. Key opportunity indicators are events that your team should come to know and understand that trigger the potential for credits and incentives. They typically revolve around your people and your investment in fixed assets. On the people side, opportunity indicators often involve increases or decreases in employment, turnover, relocations and employee training or retraining. On the fixed asset side, opportunity indicators include site selection and start-up, capital investment, leases and renewals, building acquisitions, facility upgrades and so on. Make a list of these indicators and train your team to spot them. Once an opportunity is spotted, investigate further and contact your CPA to see if it might benefit your business.
  2. Understand that timing is everything. To give your business the best chance of securing a credit or incentive, you must understand that timing is everything. To secure many credits and incentives, the process of securing the opportunity happens well in advance of hiring, training or purchasing fixed assets. In many instances, if your business has hired the employee, spent money on the training or purchased the fixed asset — it is too late. Once you’ve spent the money or announced your plans to the public, you’ve lost most if not all of your ability to negotiate. Understanding this and putting a plan in place to uncover the opportunity well in advance of the investment will put you in a position for maximum success. And outlining your key opportunity indicators is the first step to realizing the potential credits and incentives available to you.
  3. Get your entire team on board. Securing maximum credit and incentive opportunities isn’t just the job of your owner, CFO or CPA. It should also be the job of your HR department, training coordinator and safety director. The more your entire team is able to understand the key opportunity indicators and that timing is everything, the greater chance of success you will have.

Tax Credit Help

If you’re looking to capitalize on these credits and incentives opportunities and would like to learn more, email Rea & Associates. The sooner you move on this, the faster you’ll be able to realize the benefits.

By Chad Bice, CPA (Zanesville office)

Related Articles

Environmentally Friendly Tax Savings

Brush Up On These New Tax Form Due Dates

School’s Out For Summer, But Tax Credits Are Still In

Share Button

Brush Up On These New Tax Form Due Dates

Wednesday, June 29th, 2016
Tax Form Due Dates - Ohio CPA Firm

Want a tip to help you stay out of trouble with the IRS? Start studying up on the new tax form due dates.

Did you know that the IRS has changed the due dates for many of your tax return forms? These changes will be effective for taxable years starting after Dec. 31, 2015, meaning your 2016 tax returns filed next year (2017) will be impacted. Since some due dates have been altered quite a bit and others have not even been touched, it’s incredibly important to pay attention to the changes.

Read Also: Join The Fight Against Identity Theft & Income Tax Fraud

Stay out of trouble with the IRS. Start studying up on the new tax form due dates, below.

  • Form 1065 pertaining to partnerships operating on a calendar year are now due March 15. A six-month extension from that date is allowable. Previously, the due date was April 15. According to the new law, partnership returns are now due on the 15th day of the third month after the year end.
  • Form 1041, which refers to trust and estate taxes, gained a 5½-month extension from the original filing date of April 15. This was an increase of half a month.
  • Your 2016 C Corp tax returns for returns that impact businesses with traditional Dec. 31 and June 30 year-end deadlines will be due on the 15th of the fourth month after the year end. A six-month extension from that date will be allowed.

o   If your year-end is before Jan. 1, 2016, your due date is April 15, with a Sept. 15, extension.

o   If your year-end is after Dec. 31, 2015, your new due date is April 15 with an Oct. 15, extension.

  • For C Corps operating outside a traditional fiscal year end (with fiscal years other than Dec. 31 and June 30), the new due date for your tax return forms is the 15th day of the 4th month after year end and the 15th day of the 10th month after year end.
  • A special rule for C Corps with a June 30 fiscal year end was established and will impact the due date for Form 1120. The new due date will go into effect for returns with taxable years beginning after Dec. 31, 2015 for the 2017 filing season.

o   Before Jan. 1, 2016, Form 1120 is due Sept. 15 with an April 15 extension.

o   After Dec. 31, 2015, the due date for this form is Oct. 15. The April 15 extension date will not change.

  • For exempt organizations required to file Form 990, the new extension date becomes a single, automatic 6-month extension. This eliminates the need to process the current first 90-day extension.
  • Those filing the Foreign Bank and Financial Accounts Report (FBAR) will have to adhere to a new April 15 due date. An Oct. 15 extension date was also established. This report was previously due on June 30.
  • All W-2 and certain 1099-MISC forms are now due to the IRS/SSA no later than Jan. 31, which is the same day they are due to the taxpayer. All other Forms 1099 are due Feb. 28 or, if filed electronically, March 31. This is a change from the Feb. 28 due date (and March 31 date if filed electronically) for all W-2 and 1099 forms that was previously enforced.

For all the changes outlined above, there are a few rules that will remain unchanged. Below are four due dates that will not change in 2017.

  • Form 1120S – These forms are due on March 15 with a six-month extension from the due date.
  • Form 1040 – The individual tax form will continue to be due on April 15 with an Oct. 15 extension date.
  • The due date for Form 5500, concerning employee benefit plans, will not change as a federal law that was enacted in December 2015 effectively repealed a previously enacted extension. These forms are due on July 31 with an Oct. 15 extension due date.
  • Form 3520-A for foreign trusts with a U.S. owner will not be changing. These forms will continue to be due on March 15 with a Sept. 15 extension due date.

Check with your tax advisor to find out if you will be ready to comply with these changes and to ask any tax planning questions you might have. Believe it or not, tax season is closer than you think. Be a proactive business owner. With enough lead time, you can implement a tax savings strategy capable of delivering amazing results. Email Rea & Associates to learn more.

By Lisa Beamer, CPA (New Philadelphia office)

Are you looking for more tax insight? Check out these articles?

Can The IRS Collect Back Taxes 10-Years After The Organization?

Environmentally Friendly Tax Savings

Don’t Miss Out! Claim The Work Opportunity Tax Credit

Share Button

Looking to Start a Business? Do It the Right Way

Monday, June 20th, 2016
Starting new Ohio Business - Ohio CPA Firm

Starting a new business is a brave and exciting endeavor. Avoid common slip-ups by following the advice found in this post and you’ll be well on your way to a successful start.

Starting your own business and becoming a small business owner is part of many Americans’ dreams. For some though, it can become a nightmare. There are definitely some right ways and wrong ways to approach starting your own business. Over my tenure as an experienced business advisor, I have seen plenty of heartache and additional expense along the way. Here are some of Do’s and Don’ts to consider if you want to start your own business:

Read Also: Dream Big: Considerations For The Aspiring Business Owner

  • Do: Go simple – Unless someone besides your spouse will own the business with you, you don’t need anything other than a simple limited liability company. It offers you liability protection while minimizing your tax filing requirements. Being the sole owner and having this sort of entity allows you to file you business’s activity on a Schedule C on your Form 1040. Until the business grows and is successful, this entity type will likely be sufficient for your small start-up.
  • Don’t: Go cheap – Small business owners tend to think they can or should do everything themselves. A lot of sweat equity goes into starting a new business, but be smart and humble enough to know the difference between what you can do and what you should do. It’s OK to ask for help!
  • Do: Involve professionals – This is an area where new business owners tend to want to go cheap. No one likes paying attorneys and folks don’t know they need a tax professional sometimes until it’s too late. Getting set up with the proper legal documents is a critical first step, and it’s one that new business owners like to try to tackle on their own. I know from experience that a good attorney is worth the expense. Don’t know who to ask? Start asking other established business owners who they use.
  • Don’t: Do payroll yourself (unless you have experience) – Some of the heftiest penalties the IRS assesses involves payroll taxes. They don’t mess around when it comes to properly assessing and remitting payroll taxes and paying your employees. Even one slip up can set a business back several thousand dollars. The issues continue to compound if they are not properly taken care of, so don’t ignore this extremely important aspect of your business. Unless you have prior experience with payroll or you hire someone with experience, this is an area where you should seek professional help.
  • Do: Consult your local Chamber of Commerce – Chambers of Commerce exist to assist businesses in a multitude of ways. Our local Chamber offers Small Business Counseling classes that are meant for new business owners who are just starting up a business. These classes include counseling, training and assistance for start-up businesses. This local resource can be invaluable if you choose to utilize it.

Starting a new business is a brave and exciting endeavor. Avoid common slip-ups by following the advice above and you’ll be well on your way to a successful start.

Around the same time you start your business, you’ll also want to consider your business’s growth strategy. Lee Beall, CPA, CEO at Rea & Associates, covered this topic in a podcast episode on unsuitable on Rea Radio. Check it out to learn what you need to do to establish or strengthen your business’s strategic plan.

By Lesley Mast, CPA, MAcc – Taxation (Wooster office)

Share Button

Environmentally Friendly Tax Savings

Thursday, April 14th, 2016

For the last 46 years the global population has come together to channel “human energy toward environmental issues.” On April 22, 2016, the world will once again celebrate Earth Day. You can find a wealth of information on the official Earth Day website, including information about this year’s theme, Trees for the Earth. You can also find some great tips to help you become more energy efficient or help you spread the word about climate change and other topics.

Businesses Can Go Green And Save Green

For business owners, going green can result in significant tax savings as well, which can make environmental responsibility that much more desirable. Take a look at this slide show and find out how green certain eco-friendly initiatives can help strengthen your company’s bottom line.

Environmentally Friendly Tax Cuts For Business Owners from Rea & Associates

Do you want to start saving on your 2016 tax bill? Email Rea & Associates to find out how you can use environmentally friendly tax planning initiatives to ease the tax burden on your business.

By Brian Kempf, CPA (Millersburg office)

Are you looking for more tax tips? Check out these articles:

Go Green For The Planet And Pocket The Savings

Can Making Your Building Green Save On Taxes?

5 Tax Deductions To Ease Your Business’s Tax Burden

Share Button

What Are You Waiting For?!

Thursday, April 7th, 2016

3 Tips For Taxpayers Who Haven’t Filed Yet

Did you know that according to the IRS 20-25 percent of Americans wait till the last two weeks to file their taxes?! The thought alone is enough to make even the most experienced accountant nervous.

If you’re a last-minute filer, here are some tips to help you (and your accountant) get through the 2016 tax deadline unscathed.

  1. The Truth About Tax Extensions Unfortunately, there are some pretty nasty rumors going around about tax extensions. Hopefully, I will be able to debunk some common tax extension myths while helping those who opted to extend their deadline sleep a little better tonight. Check out the slideshow and get the facts about tax extensions!
  1. How To Pay Your Tax Bill In 6 Easy Steps Available 24 hours a day, seven days a week, Direct Pay has proven to be a popular choice among Americans who are looking for a quick and easy option for settling their tax balances. Want to learn more about the benefits of Direct Pay, just click here.
  1. Breaking The Tax Bracket Myth Myths and misconceptions about the tax code are rampant and clients frequently express their concerns about a variety of tax-related issues. One topic that comes up frequently is our federal government’s graduated tax bracket system. Oftentimes, people worry that if they make “too much” money, their entire income will be taxed at a higher rate – a worry that has kept countless hard-working taxpayers up at night. But are these concerns valid? Find out.

Don’t wait much longer to file your taxes or request an extension, April 18 will be here before you know it.

Treat Yourself

Don’t want to go through the mad rush again next year? We like to encourage our clients to think about taxes all year long – not just the first four months of the year. Sign up for our bi-weekly digital newsletter to for tax tips and business advice guaranteed to keep you motivated and tax-time ready all year long. And, of course, you can always email Rea & Associates for help along the way.

Share Button

Business Leaders Turned To Drebit For Fool-Proof Tax Tips

Friday, April 1st, 2016

When it comes to providing readers with top-notch tips and expert financial advice, we take our job very seriously. That’s why our top blog posts in March were related to tax, compliance and general financial wellness topics. Take a look this month’s top five blog posts for business owners.

1. Does The IRS Care About Your Fantasy Football Team?

Fantasy Football | Tax Guidance | Ohio CPA Firm

When you sit down with your CPA to go over last year’s taxable income and they ask you how your fantasy football team did this year, they aren’t just looking to engage you in casual conversation. In fact, how well (or how poorly) you did over the last year might make a difference in the size of your tax bill. Read on to learn more.

 

 

2. Payroll, HR Departments Targeted By Cyber Criminals

paper dollsOver the last few years, the threat of refund fraud and identity theft has become a very real concern, and criminals have proven that they will go to great lengths to get the information they need to complete their scams. This recent phishing scam is no exception.

 

 

 

 

3. The ACA: Small Businesses Are Also At Risk

Small Business Penalties | ACA | Ohio CPA Firm

Thinking the provisions outlined in the Affordable Care Act doesn’t apply to your business because you are “under the threshold of 50 employees” is a very dangerous assumption to make. Keep reading to find out why.

 

 

 

4. Don’t Miss Out! Claim The Work Opportunity Tax Credit

2016 individual mandate penaltiesThe IRS has finally issued guidance on how to deal with the retroactive extension of the Work Opportunity Tax Credit (WOTC) for 2015. In short, it’s an opportunity you don’t want to pass up.

 

 

 

 

 

5. Can You Afford To Lose Them?

Recruitment & Staffing Strategy | Ohio CPA Firm

When you lose a member of your team, regardless of their position, you can expect their departure to impact your organization’s bottom line. That’s why it’s so important to take a proactive stance with regard to staffing and minimizing your financial burden.

 

 

 

 

 

April brings an end to the 2016 tax season. Don’t forget that the tax deadline is April 18 this year. Looking ahead, you can expect to see some great tips from our business experts as well as some fantastic spring cleaning advice that can be used to prepare for tax season 2017. And, as always, if you have a question for one of our financial experts or business consultants fill out the Ask Drebit a Question form. We are always happy to provide you with responses to your specific questions.

Happy Spring!

Share Button

Phishing Scam Is A Threat To Ohio Businesses

Monday, March 28th, 2016
IRS Phishing Scam - Ohio CPA Firm

You can take a proactive stance when it comes to protecting your company from these scams by encouraging your employees to pay close attention to emails that request sensitive information, such as the names of employees, Social Security numbers, dates of birth, addresses and/or salary information or copies of employee’s W-2 information.

The Ohio Department of Taxation (ODT) is echoing phishing scam alerts made by the IRS earlier this month in an effort to protect businesses and employees state-wide from identity theft and tax fraud.

Read Also: Payroll, HR Departments Targeted By Cyber Criminals

According to ODT, payroll and human resources offices at companies nationwide – including some in Ohio – reportedly received emailed requests that appear to be sent from a high ranking member of the company’s management team requesting confidential payroll data. While the emails appear to be legitimate, they are actually being sent by cybercriminals who are looking to fool employees into sending them detailed payroll and W-2 information. The imposters then use the information to file fraudulent tax returns.

“The scam has worked on more than 30 companies resulting in the theft of W-2 tax information for thousands of current and former employees,” ODT’s news release states. “The W-2 form contains an employee’s Social Security number, salary and other confidential data. This information enables thieves to create a realistic looking, but fraudulent tax return requesting a tax refund that is then filed with Ohio or other states, and the IRS.”

The frequency of tax fraud and identity theft continues to increase at an alarming rate. This tax season alone, the IRS reported an approximate 400 percent increase in phishing and malware incidents – a surge that was addressed back in February.

“If your CEO appears to be emailing you for a list of company employees, check it out before you respond,” said IRS Commissioner John Koskinen. “Everybody has a responsibility to remain diligent about confirming the identity of people requesting personal information about employees.”

You can take a proactive stance when it comes to protecting your company from these scams by encouraging your employees to pay close attention to emails that request sensitive information, such as the names of employees, Social Security numbers, dates of birth, addresses and/or salary information or copies of employee’s W-2 information. You can also let them know that they should never send sensitive information until a conversation takes place, either in-person or over the phone, with the member of management seeking the information. You can also check out the information provided here for general insight from ODT that could be used to help your employees identify phishing attempts and email scams.

If your Ohio business has been the victim of or experienced this or any other type of email phishing scheme, contact ODT immediately at 800.282.1780 to protect against potential tax fraud and safeguard Ohio taxpayer dollars.

Those who are interested in learning more about the increasing threat of cybercrime should check out The Columbus Cybersecurity Series. Presentations are scheduled to take place throughout the year and will focus on ways to help business owners learn more about cyber threats. The first installment is scheduled for Wednesday, April 6. The event is free but registration is required to attend. Attendees will walk away with new insight into these attacks as well as tips and advice that will help you protect your business.

By Lisa Beamer, CPA (New Philadelphia office)

Want to protect your employees from identity theft and tax fraud or need help recovering? Check out these articles:

How Can You Protect Yourself From Tax Fraud

Identity Theft Prevention: Tips To Reduce Your Risk of Becoming a Victim

How To Recover From Identity Theft & Refund Fraud

Share Button

How To Trigger An IRS Audit

Friday, March 25th, 2016
How To Trigger An IRS Audit - Ohio CPA

When was the last time you were happy – jubilant even – after receiving a letter from the IRS ? Exactly … Keep reading to learn how to keep the tax man out of your mailbox.

Only .84 percent of the 146.9 million individual tax returns filed in 2015 were audited by the IRS. The last time the audit rate was that low it was 2004 and most of us were walking around in Uggs. And even though the IRS says it expects to see even fewer audits in 2016, your chance of being audited tends to increase when:

You fail to report all taxable income

You will be notified if the IRS notices any inconsistencies between the taxable income reported on your tax return and the combined amount reported on your 1099s and W2s. Be sure to make the issuer of your 1099 aware of any mistakes, including incorrect income reported or receiving a form that is not yours.

You own a cash-intensive business

If you operate a taxi, car wash, bar, hair salon, restaurant or any other cash-intensive business, the IRS will be watching your tax return closely. Historically, cash-intensive businesses have been less accurate in reporting all taxable income. In response, agents are using special techniques to interview business owners and audit for unreported income.

Read Also: What’s Worse: An IRS Audit Or A Root Canal?

You claim large charitable deductions

IRS agents don’t have a problem with you philanthropic behavior, it’s the people abuse this tax deduction they have a problem with. This is another area the agency has had problems with in the past, which is why agents pay special attention to these types of deductions – especially if the deduction is disproportionately large in relation to your taxable income. So, if you are going to make a gift to a nonprofit organization, make sure to do it the right way. Keep your receipts, document everything and obtain an appraisal if the donation is for property worth more than $500 (and be sure to file Form 8283 with your return). It’s also important to note that donated cars, boats and planes continue to draw special attention.

You claim home office deductions

If you can claim the home office deduction – great! However, many are often unsuccessful because they ultimately realize that they don’t meet the strict requirements. Or, if they do successfully claim it, they overstate the deduction. For this reason, this is another area the IRS tends to scrutinize. Remember, if home office space must be used exclusively and on a regular basis as your primary place of business in order to claim a percentage of the rent, real estate taxes, utilities, phone bills, insurance and other costs.

Your claim for meals, travel and entertainment is disproportionately high

This is another area where taxpayers have made excessive claims in the past, causing the IRS to look closely at meal, travel and entertainment deductions for self-employed taxpayers. When the deduction appears too large for the business, agents look for detailed documentation including the amount, place, persons attending, business purpose and nature of the discussion or meeting.

You claimed 100% business use of a vehicle

It’s very rare that a taxpayer actually uses vehicle exclusively for business, especially if no other vehicle is available for personal use. If an IRS agent sees this type of claim, they won’t just see red flags, they will hear sirens. If you are planning to claim a percentage of your vehicle usage on your tax return, be sure to keep detailed mileage logs and precise calendar entries for the purpose of every road trip.

The best way to guard against an IRS audit is to have your business and personal tax returns prepared correctly every year by a team of tax specialists. Email Rea & Associates to learn what other red flags the IRS is looking for.

By Chad Bice, CPA (Zanesville office)

Check out these articles for even more popular tax tips:

How To Make Dealing With The IRS Less Stressful

How Far Back Can The IRS Go For Tax Auditing?

A Use Tax Audit Could Cost You

Share Button

Don’t Miss Out! Claim The Work Opportunity Tax Credit

Friday, March 11th, 2016

The IRS has finally issued guidance on how to deal with the retroactive extension of the Work Opportunity Tax Credit (WOTC) for 2015. In short, it’s an opportunity you don’t want to pass up.

How The WOTC Works For Business Owners

To claim this valuable tax credit, employers have 28 days from the date an employee was hired to certify that they fall into one of the qualifying categories. To do this, the new employee is typically asked to complete Form 8850 by the employer. The form is then filed with the IRS, while another form is filed with the Ohio Department of Jobs and Family Services. Once the new employee’s qualification is confirmed, the business may claim a credit against the income tax of a percentage of first-year wages.

Even though the credit was left to expire in 2015, some businesses continued to collect qualifying information from new hires – just in case. This turned out to be a good strategy because late last year, Congress finally voted to pass the PATH Act of 2015, which, among other things, extended the WOTC through 2019.

While some business owners may have phased out the practice of passing out Form 8850 to new employees, those who continued to qualify their new hires now have a chance to retroactively claim the WOTC credit. Employers have until June 29, 2016, to complete and file paperwork for qualifying employees to successfully claim the tax credit.

Tax Credit Available When You Hire Unemployment Recipient

The retroactive WOTC extension is not the only thing business owners should be aware of. In 2016 and until 2019, hiring long-term unemployment recipients (or an individual who has been unemployed for at least 27 consecutive weeks and who has, at some point, received unemployment benefits) will also qualify your business for the tax credit. To qualify for the WOTC under this new category, your employee(s) must have been hired between Jan. 1 and May 31, 2016.

Don’t miss out on your chance to claim the WOTC. Email Rea & Associates to learn more.

By Christopher Axene, CPA (Dublin office)

Are you looking for more tax help? These articles could help guide you along:

‘Ghost Assets’ Haunting Your Business?

What’s The Difference Between Fixed Asset Expensing And Capitalization?

How Does The IRS Treat Property Repair Expenses?

Share Button

Is An Office Relocation In Your Company’s Future?

Tuesday, February 23rd, 2016
Office Relocation - Ohio CPA Firm

A common mistake some business owners make is to believe they can coordinate the office relocation themselves. And while it may be possible to manage your daily responsibilities, make decisions about the future of your business and property real estate negotiations, you may wind up doing more harm than good because you aren’t giving any of your responsibilities the proper attention needed to succeed. Read on to find out how your business advisory team can help.

There are many reasons why you may want to move your business to a new location, but if you want to be sure the location you choose is not only equipped to meet your needs, that the price is reasonable and that the location is ideal, consider bringing in your business advisory team for guidance.

When it comes to determining your business’s overall financial wellness, look no further than your financial advisor. These professionals are experts when it comes to helping you determine an accurate cash flow projection, make sense of any tax implications associated with the move and will help you determine if, based on your current size and projected growth, that space you are eyeing makes since. But your financial advisor can really only help you see a part of the picture. I recommend bringing adding a real estate expert to your business advisory team when major relocation decisions are the topic of conversation.

Read Also: Is A Sale-Leaseback Transaction Right For Your Business?

A common mistake some business owners make is to believe they can coordinate the office relocation themselves. And while it may be possible to manage your daily responsibilities, make decisions about the future of your business and property real estate negotiations, you may wind up doing more harm than good because you aren’t giving any of your responsibilities the proper attention needed to succeed. A real estate broker will not only manage the legwork associated with choosing your business’s new location, they will make sure you get exactly what you are paying for while negotiating a deal that builds out time for you to establish yourself at your new address.

I recently spoke with Justin Fodor, a real estate broker with Carr Healthcare Realty, a brokerage firm that works exclusively with professionals in the healthcare industry, about other reasons why a business owner – regardless of industry – should consider working with a real estate expert.

Get Your Money’s Worth

When it comes to understanding the art of negotiation, a real estate broker has the knowledge and experience needed to help you lock in a great deal at favorable terms – regardless of whether you are planning to buy or rent your new property. Oftentimes during this process, the business owner may be a apprehensive about being too forceful during the negotiation process. Justin says this is a great scenario of when a real estate broker would come in handy because they have the knowledge needed to go into the meeting with the confidence of knowing that the “sticker price” is only the starting price.

And if you are worried about sending in a broker to negotiate on your behalf, don’t be.

“Landlords work with brokers all the time,” explained Justin. “In fact, they hire their own brokers. They expect you to bring one to the table as well.”

Location, Location, Location

According to Justin, if a real estate brokerage firm doesn’t specialize in demographics itself, they will work with professionals who do to make sure their clients are getting the ideal location for their business. Whether you want to find out how many similar businesses are in a certain area or whether the local business climate is right for your business to be successful, demographic information helps optimize your office’s geography.

“We can help [our clients] decide the type of environment that’s right for them by taking into consideration foot traffic, visibility, population, and other demographics,” said Justin.

Take The Time You Need

Perhaps one of the best reasons to work with a real estate broker – especially one who specializes in your specific industry, is because they know how to negotiate for terms that matter most to you.

Justin explained that when he works with dental professionals, for example, he always asks for the time needed to move into the space, install equipment, remodel the office and reestablish their client business.

A broker, especially if they specialize in serving businesses like yours, can help you negotiate the time you need to stabilize your business’s cash flow. In fact, Justin said it’s not uncommon to secure a 5-month build-out period and 3-4 months of rent-free office space, which gives you enough time to get your business up and running again.

Are you  considering an office relocation or a major warehouse move, email Rea & Associates to learn more about establishing a strong business advisory team.

By Ryan Dumermuth, CPA, CFP (Mentor office)

Are you looking for more ways to facilitate business growth? These articles should help:

How To Ensure Your Plans Aren’t Bigger Than Your Finances In Times Of Growth

Protect Your Business With These 6 Tips

It’s OK To ‘Think Small’ – Revenue Growth Isn’t Always The Solution

Share Button

Readers Sought Last-Minute Tax Tips In January

Friday, February 5th, 2016

Top 5 Business Blog Posts Revealed

Not a lot happens in January, unless you are a business owner who is scrambling to meet the IRS deadlines in preparation for the upcoming tax season – 2016 is no different. This is why I am glad to be able to provide you with some great tax and IRS articles from the financial experts at Rea & Associates!

If you haven’t read our top five blog posts from January, now’s your chance. You’re sure to find useful tidbit or two to use help you stay on top of your annual responsibilities while continuing to enhance your business over the next year.

  1. IRS Gives Business Owners The Gift Of More Time – While some taxpayers may be rejoicing after learning that the IRS has delayed 1095-C reporting deadline, it’s important to remember that this late Christmas gift may not be as great as it seems – especially when it comes to meeting the deadline to file your individual tax return. Read on to learn what this deadline delay means to you.
  2. National ID Theft Awareness Month: Get In The Know – December was National ID Theft Awareness Month and the fraud prevention team at Rea is a wealth of information when it comes to sharing great tips to help taxpayers protect their identities from fraudsters. Instead of scrolling past posts in our expansive article library or award-winning blog, we’ve compiled this Top 5 list to make your search for information easier. Read on to discover how you can prevent cyber criminals from hijacking your identity all year long.
  3. Anything Can Happen In Cleveland – Since 1999 that phrase has been uttered so many times in reference to the Cleveland Browns it should have been declared Ohio’s state motto. Well, it’s now 2016 and it looks as though next year might finally be THE year. Why am I so optimistic? Because the day after the Browns cleaned house, the franchise announced who would step in as the new Chief Strategy Officer to help rebuild the team – Paul DePodesta! Read on to learn how this move in Cleveland could mean positive things for your business.
  4. How Far Back Can The IRS Go For Tax Auditing – This is a hot topic every month, especially during tax season. Read on to learn how far back the IRS can go when auditing your taxes.
  5. 16 Resolutions For Business Growth In 2016 – New Year’s resolutions aren’t just great ways to set personal goals; they can help keep us on track professionally as well. This year, instead of worrying about which goal you are going to pick from the New Year’s Resolution menu, why not consider committing your energy and resources into ways that will improve the overall health of your business? Keep reading to find out how.

With tax season in full swing, this month we are busy sharing tips of getting ready for meeting with your accountant, preventing tax fraud and so much more. Don’t want to miss a post? Just subscribe to our blog and have them delivered directly to your inbox.

And don’t forget, if you have a question that pops up this tax season, email the team at Rea & Associates!

Share Button

The 2016 Tax Season Is In Full Swing, Are You Ready?

Friday, January 22nd, 2016
Tax Planning - Ohio CPA Firm

Tax season doesn’t have to be the stuff nightmares are made of. Believe it or not, it can be a smooth, uneventful process. Just remember, preparation is the key to tax season success.

Your holiday decorations have been tucked away, subzero temperatures have found their way to your neighborhood and your W-2’s are in the mail … tax season is upon us once again!

This year, don’t let the hunt for tax forms, pay stubs and receipts stress you out. Instead, take a few minutes to brush up on some of our best tax season tips and avoid becoming a victim of the last-minute filing chaos that ultimately ensues in April.

Top 5 Tax Season Planning Tools

  1. File Faster With This Tax Prep ChecklistIt’s that time of year again – time to gather your information and prepare to file your tax return. You may be surprised how fast the entire filing process goes if you spend a little time preparing before you make your appointment with the tax preparer. Get your tax prep checklist here to avoid missing the filing deadline.
  1. From Toddler To Teen And Beyond: Tax Breaks For Families: With parenthood comes many rewarding experiences – and expenses. You hear about how expensive it is to raise a child, but you never really know what to expect until that little bundle of joy enters your life. From diapers, pre-school, extracurricular activities and saving for college, the costs of raising kids adds up fast. Read on to discover what tax breaks are available to families?
  1. How To Win Tax SeasonBy mid-January, statistically, most Americans have already abandoned their New Year’s resolutions – those promises you make to yourself to hit the gym, get more sleep or become more organized. But hopefully, you’re not like most Americans – especially if better organization is the goal. Today I want to urge you not to give up at least not until April 15. Keep reading to find out how you can win tax season with these four tax prep tips.
  1. Taxes Are Like FishingAre you wondering where I’m going with this, wonder no more. You are sure to find a lot of valuable insight in this episode of unsuitable on Rea Radio. Episode 9, Taxes Are Like Fishing, features Melane Howell, CPA, a tax manager at Rea, talking about the importance of strategic preparation, just in time for tax season. Listen now for great insight and sound tax tips that are sure to make this tax season the easiest one yet!
  1. The Truth About Tax ExtensionsWhile the first four months of the year is a busy time for accountants, we know that things don’t always go according to plan. But instead of enduring penalties for filing a late return, you may find that filing a tax extension is a better option. Contrary to popular belief, tax extensions aren’t as bad as you may have heard. Read on to learn the truth about tax extensions, and don’t forget to check out the slideshow.

Tax season doesn’t have to be the stuff nightmares are made of. Believe it or not, it can be a smooth, uneventful process. Just remember, preparation is the key to tax season success.

Need help filing your individual or business tax return? Email Rea & Associates for help. Our team of tax advisors can help you change your perspective of tax season into one that is more positive for everyone.

By Lesley Mast, CPA (Wooster office)

Check out these articles for more helpful tips for individuals:

Cyber Crime: It Can Happen To You

You Can Still Have The Final Say After Death

Debt vs. Taxes: Should You Pay Off Your Loan

Share Button

Go Green for the Planet and Pocket the Savings

Monday, January 11th, 2016
Think Green To Save Money | Rea & Associates | Ohio CPA Firm

Bright Idea:
Start saving in 2016. If you haven’t already, replace discontinued incandescent light bulbs with LED and other energy-efficient bulb options and save on your electric bill. Read on for more great tips!

It’s always a good time to talk about ways to realize some significant savings, and sometimes all you have to do is go green to save some green. Even though some green initiatives may seem to have a higher upfront cost, the IRS continues to offer a variety of tax saving incentives to help balance the burden as well as to reward you for making a few pro-planet upgrades to your home and/or business property.

Since it’s the beginning of the year and we are already open to the idea of making a few changes, we have another one for you to consider. Because Jan. 10 was national cut your engine cost day, we wanted to give you some ideas to help you celebrate the occasion while investing in the long-term sustainability of both your planet and finances.

For Individuals:

Planning to install a residential fuel cell and micro turbine system in the near future? Through the end of 2016 you may qualify for a tax credit of 30 percent of the cost of the project, up to $500 per 0.5 kilowatt of power capacity.

Looking to purchase a new car soon? Tax credits are available for all electrical cars. You can visit the DOE’s Fuel Economy website to search what cars are eligible. Based on the vehicle’s battery capacity the credit can be between $2,500 to $7,500.

For Business Owners:

If your business has installed solar panels at company properties, then you may be eligible for up to a 30 percent tax credit for installation and project costs. This credit is available until Dec. 31, 2016.

An energy-efficient commercial building tax deduction allows businesses to deduct certain costs related to making a building energy-efficient rather than capitalize those costs over 39 years. Some improvements that might apply include:

  • interior lighting systems
  • HVAC systems
  • hot water systems
  • insulation and exterior windows and doors

But there’s a catch – you have to get a certified licensed engineer to review the project and verify that it meets the IRS’s requirements for a tax deduction. The maximum deduction that can be taken is calculated at $1.80 times the building square footage for property placed into service in 2016.

Finally, if you plan to install a geothermal system, your business may qualify for a 10 percent tax credit.

With rising electric costs, implementing some of these green initiatives can garner you tax savings now and energy cost savings in the future.

Looking to more ways to go green and cut expenses? Email Rea & Associates and ask for more tips.

By Brian Kempf, CPA (Millersburg)

Looking for more ways to improve your business in the new year? Check out these posts:

16 Resolutions For Business Growth In 2016

Easy Year-End Tax Tips For Business Owners

It’s OK To ‘Think Small’

Share Button

Egg Nog & Tax Tips: Top 5 Posts In December

Wednesday, January 6th, 2016

December is such an exciting time. Shopping, baking, decorating and spending time with family and friends celebrating keeps a frog busy. But, in-between the office parties and family gatherings, the team and I were still able to address some of your end-of-the-year questions and concerns.

From the updates we received from our pals over on Capital Hill to year-end tax tips, there was certainly a lot to write about this month. These were the top-read posts in December

  1. Easy Year-End Tax Tips For Business Owners: There’s no doubt about it, this time of year is busy! I’m willing to be that sitting down at the computer to research tax deductions is the last thing on your mind. You’re in luck! We’ve done the work for you. Click here for some great tips, deductions and insight that will help you keep more of your hard-earned money in your bank account.
  2. Employers: Are You Ready To Change The Way You Withhold Municipal Tax Payments?:  Ready or not, all Ohio municipalities will be welcoming a slew of new provisions designed to bring about a unified system of income tax reporting. House Bill 5 was signed into law by Gov. Kasich on Dec. 19, 2014. The bill, which was championed by the Ohio Society of CPAs and supporters, helped streamline several key measures that help establish meaningful municipal tax reform. Per the legislation, many key provisions are scheduled went into effect Jan. 1 of this year. Read on for Four facts about the changes you need to know.
  3. Congress Gives Taxpayers An Early Christmas Present: Year after year, Congress promises to address the future of many expired tax provisions, and year after year they fail to make a definitive decision – opting only to pass legislation that extends the provisions for another year. In the meantime, taxpayers are expected to take on the impossible task of navigating the terrain amidst legislative uncertainty. Happily, things are about to change. Read on to learn why.
  4. How Far Back Can The IRS Go For Tax Auditing? – As a CPA I’m frequently asked, “How far back can the IRS look to audit my tax return?” That’s a great question. Can the IRS go back and audit your tax return from five years ago? 10 years ago? 25 years ago? Before you start to panic, rest assured that the IRS has a statute of limitations in place that generally puts a limit on the time allowed to audit you and assess additional tax. Keep reading to find out how far back they can go.
  5. Cyber Crime: It Can Happen To You: Fraudsters don’t take holidays. In fact, they tend to be more active this time of year because they believe we are more likely to let our guards down. I don’t intend on falling for any of their traps, and I encourage you to do the same. Check out what you can do to protect yourself.

Now that December is history, let’s look forward to a great 2016. Stay tuned as we provide you with the latest and greatest news in the business and financial world. While you’re at it, don’t forget subscribe to our blog to receive email reminders when new stories are posted.

You can also ask your own question by filling out the simple form at the top, right side of this page.

Finally, remember that the team at Rea is always available to discuss your specific business issues in more depth. All you have to do is email Rea & Associates and we would be happy to set up a time to talk more.

Share Button

Business Leaders Were Reading What?!

Monday, December 28th, 2015

2015’s Most Popular Blog Posts

Best Business Blog Posts 2015- Ohio CPA FirmIf you take a moment to scroll through the list of categories, authors and archives on the right-hand side of this page, it’s pretty clear to see just how active Rea’s team of experts are when it comes to providing leaders in the business community with accurate, timely and easy to digest content. We are fortunate to have so much experience and expertise on our staff, and their eagerness to serve you better has allowed us to maintain a bi-weekly electronic newsletter, a quarterly print newsletter, three blogs and a handful of electronic segment specific newsletters. That’s a lot of content – but we are not even thinking about slowing down! I hope you hang around my lily pad for awhile. I’m pretty sure you’ll find a lot of great little tidbits to read about in 2016 too. Until then, I want to invite you to take a look at some of our most popular blog posts and articles. And, if you haven’t already, take a moment to look through the newsletters we offer and sign up to have news, tips and valuable information delivered to your inbox all year long!

Top 5 Dear Drebit Posts In 2015

Dear Drebit is updated every few days with timely information and advice. In addition to covering current trends and issues, readers are also invited to ask financial and business questions on the page, which will be answered by one of Rea’s industry experts. Here are last year’s top posts:

  1. How Far Back Can The IRS Go For Auditing?
  2. Theft Safeguards To Cause Tax Return Delays In Ohio
  3. Six Things 401K Plan Sponsors Need To Do Now
  4. New Adjustments Will Affect Your 2015 Tax Return
  5. File Faster With This Tax Prep Checklist

5 Most Popular Posts On Brushing Up Blog

Brushing Up: The Dental Accounting Blog features a variety of finance and business advice specifically tailored to dental professionals. From purchasing a practice, knowing what to expect from a career in dentistry and hiring the best staff for your practice to general accounting advice, tips for cashing out at retirement and tax tips, this blog is a valuable tool for dental professionals who are looking for ways to secure long-term success in their career. The year’s most-read blog posts are:

  1. How Sales & Use Taxes Apply To Ohio Dental Practices
  2. 6 QuickBooks Tips Every Dentist Should Know
  3. Could A Crown Be A Tax Deduction?
  4. 10 Year-End Tax Planning Strategies For Dentists
  5. Buying An Established Dental Practice? Master The Changeover 

Cultivating Your Business Readers Choose Top 5 2015 Posts

The Cultivating Your Business blog is a resource provided to clients and visitors on the firm’s Know & Grow website. Updated a few times per month, business owners have access to advice, tips and general insight into how to grow their businesses and realize an optimal return on their investment upon retirement. Here are the top blog posts from last year:

  1. Bad Buy-Sell Agreement Claims Another Family Dinner
  2. Will Your Summer Reading List Make You A Better Business Owner?
  3. WARNING: Free Business Valuation Offer Is Unbelievable
  4. Uncover The Secrets To Cashing In On Your Business
  5. How To Communicate To Your Employees That You’re Selling Your Business

Top 10 Articles In Rea’s Library In 2015

In addition to our blogs, the Rea team publishes a lot of other valuable content in print and electronic newsletters. We make sure that all these articles are easily accessible in our article library. This is where you will find many of our niche pieces as well as a lot of general accounting tips and insights. Take a look at some of our most popular posts over the last year.

  1. What Is The Mid-Quarter Convention?
  2. Dangers Of Paying Under The Table
  3. Revenue Recognition Changes Are Coming
  4. Football Ticket Deductions
  5. 401K Loans And Keeping Your Plan In Compliance
  6. Take Control Of Your Vendor Master In Nine Steps
  7. Why Your Traditional Employee Management Method Is Failing
  8. The Birth Of The Taxpayer’s Estate
  9. Parting Is Such Sweet Sorrow: But What About Your 401K?
  10. Purchasing Cards Compromise Business Security
Share Button

Congress Gives Taxpayers An Early Christmas Present

Monday, December 21st, 2015

PATH Act Makes Several Key Tax Provisions Permanent

PATH Act Makes Several Key Tax Provisions Permanent | Rea & Associates | Ohio CPA Firm

Congress finally made good on its promise to make take a more definitive stance on the future of many popular tax provisions last week when members voted in favor of making many of them permanent. Other tax provisions received a temporary extension. Read on to learn more.

There is nothing like waiting until the last minute to complete a task. We’ve all been there and we all promise we’ll never do it again. Unfortunately (especially when it comes to determining the future of several valuable tax provisions) our government has fallen victim to the same bad habit.

Year after year, Congress promises to address the future of many expired tax provisions, and year after year they fail to make a definitive decision – opting only to pass legislation that extends the provisions for another year. In the meantime, taxpayers are expected to take on the impossible task of navigating the terrain amidst legislative uncertainty. Happily, things are about to change.

Listen To Our Podcast Taxes Are Like Fishing To Learn More About Tax Strategy

Congress finally made good on its promise to make take a more definitive stance on the future of many popular tax provisions last week when members voted in favor of making many of them permanent. Other tax provisions received a temporary extension. The legislation, Protecting Americans From Tax Hikes Act of 2015 (PATH Act), is retroactive to Jan. 1, 2015, and provides taxpayers a level of certainty that they have been without for quite some time.

This legislation offers a lot of relief to individuals and businesses, alike. Here’s an overview of what you can expect moving forward.

Key Tax Provisions Made Permanent By The PATH Act:

  • 15-year recovery period for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements
  • Extension and modification of the research & development credit, including allowing certain small businesses to claim the credit against AMT liability and employer’s payroll (ie: FICA) liability
  • 179 expensing limitations and phase out increased to $500,000 and $2 million respectively
  • Exclusion of 100 percent of gain on certain small business stock
  • Extension of tax-free distributions from IRAs for charitable purposes
  • Earned income tax credit
  • Child tax credit

Key Provisions Extended Through 2019

  • Extension of the new markets tax credit in which Congress authorized $3.5 billion allocation of credits each year from 2015 until 2019
  • Extension and expansion of the work opportunity tax credit
  • Bonus depreciation is extended at 50 percent for 2015 through 2017, 40 percent for 2018, and 30 percent for 2019

Key Provisions Extended Through 2016

  • Extension and expansion of empowerment zone tax incentives
  • Two-year moratorium on the 2.3 percent medical excise tax imposed on the sale of medical devices
  • Extension of energy efficient commercial buildings deduction

In addition to the extension of key tax provisions, the PATH act also puts more scrutiny on the operations of the IRS. IRS agents will be held accountable for knowing and acting in accordance with the taxpayer bill of rights and prohibits the use of IRS business for political gain.

The passage of the PATH act is a huge victory for American taxpayers, and will allow them to partner more efficiently and effectively with their tax advisors on key issues in years to come without the uncertainty that has plagued them for many years.

Be sure to set up an appointment to speak with your tax advisor or financial planner to talk about how the PATH act will impact your ability to take advantage of tax planning strategies. Do you have questions about specific aspects of the PATH act? Fill out the form on the top, right side of this page to submit your question to Dear Drebit.

By Christopher Axene, CPA (Dublin office)

Are you looking for more ways to save on your tax bill? These articles can help:

Year-End Tax Tips For Business Owners

Dos & Don’ts of Gifting Donations

Should I Make A Big Purchase To Cut Taxes?

Share Button

Mileage Rates Will Be Reduced In 2016

Friday, December 18th, 2015
2016 Mileage Rates | Rea & Associates | Ohio CPA Firm

Based on a study of the fixed and variable costs associated with operating an automobile, the standard mileage rates take into consideration vehicle depreciation, insurance, repairs, maintenance, gas, etc. However, if you don’t intend on tracking your mileage, you also have the option of claiming deductions based on the actual costs of using your own vehicle rather than the standard mileage rates. Read on to find out the 2016 mileage rates.

Drivers were able to get a little more money back for every mile driven in 2015, but next year’s road map tells a different story.

The IRS announced that most of the 2016 optimal standard mileage rates would either remain the same or would be lowered going in to 2016. Among the rates seeing a decrease, were the standard mileage rates for business use of a vehicle, which were reduced to 54 cents per mile – a decrease of 3.5 cents over 2015’s rate of 57.5 cents per mile.

Read Also: 5 Tax Deductions To Ease Your Business’s Tax Burden

How Are Optimal Standard Mileage Rates Determined?

Based on a study of the fixed and variable costs associated with operating an automobile, the standard mileage rates take into consideration vehicle depreciation, insurance, repairs, maintenance, gas, etc. However, if you don’t intend on tracking your mileage, you also have the option of claiming deductions based on the actual costs of using your own vehicle rather than the standard mileage rates. Just be aware that you will not be allowed to claim both.

For example, if you have plans of claiming an accelerated depreciation on your vehicle, then you will not be able to claim the business standard mileage rate as well. If you are a business owner, you should also note that the standard rate is not available to fleet owners, or those who use more than four vehicles simultaneously. Additional details and rules can be found in Revenue Procedure 2010-51.

Different Rules For Different Road Trips

Here are some of the other common rates drivers should be aware of:

  • The miles you drive for medical or moving purposes will be calculated at 19 cents per mile driven.
  • Those driving their vehicles as a service to charitable organizations may calculate their deductions at 14 cents per mile driven.
  • The portion of your business standard mileage rate that will receive depreciation treatment in 2016 will continue to be 24 cents.

Also in its announcement, the IRS noted an adjustment to the standard automobile cost allowable under the fixed and variable rate (FAVR) plan, which considers the costs taxpayers incur by driving their own vehicles for work-related purposes. In 2015, standard automobile costs may not exceed $28,000 (not including trucks and vans), which is a decrease of $200 from 2015. The maximum standard automobile cost for trucks and vans, however, is $31,000 – an increase of $200 over the 2015 rates).

Travel For Tax Savings

If you use your vehicle for business don’t forget to track your mileage. Every mile you travel is an opportunity to realize real tax savings. A financial advisor can help you find these opportunities as well as many others.

By Lesley Mast, CPA (Wooster office)

Are you looking for ways to help you plan for the upcoming tax season? Check out these articles for some great tips:

Easy Year-End Tax Tips For Business Owners

How Long Should You Keep Financial Documents?

What Could Ohio’s Small Business Investor Income Tax Deduction Do For Me?

Share Button

Easy Year-End Tax Tips For Business Owners

Friday, December 11th, 2015
Tax Savings - Ohio CPA Firm

Put some extra cash in your piggy bank this tax season with these deductions.

In just a few days … this year will be history. And while you may have run out of time to wrap up (or start, let’s face it …) last year’s resolutions, it’s not too late to tap in to some last-minute tax saving strategies to help reduce your tax bill. Actually, there are quite a few things you can do to before the ball drops to secure some valuable savings.

Read: How Can You Best Prepare For The Upcoming Tax Season?

We’ve Done The Research For You

There’s no doubt about it, this time of year is busy! Family gatherings, shopping, decorating, cooking … sitting down at the computer to research tax deductions are probably isn’t ranking too high on your priority list. Happily, we’ve done the work for you. Check out the four articles below for some great tips, deductions and insight that will help you keep more of your hard-earned money in your bank account.

  1. What companies can do now to get ready for tax season: Are you willing to accept a larger-than-expected tax bill simply because you didn’t make time to touch base with your financial advisor before the end of the year? Well, if you failed to let your CPA know about any significant changes that occurred over the last year, you could miss a valuable opportunity. Read on to learn more.
  2. 5 Tax Deductions To Ease Your Business’s Tax Burden: From claiming the Ohio small business deduction to taking a personal vehicle deduction, these frequently overlooked deductions can result in real savings. Read on to learn more.
  3. Should I Make a Big Purchase to Cut Taxes?: Maybe you’ve been toying with the idea of buying a big piece of machinery for your business for a while now, but you haven’t really been sure if it’s the right move. A call to your tax advisor could help point the right direction. Oftentimes, business owners can realize some really great savings opportunities just by spending a little bit more. That’s right, you get the upgrade you’ve been wanting AND the tax deduction. Who said you can’t have your cake and eat it too?!
  4. Don’t Wait Until It’s Too Late! Year-End Tax Planning Tips: Business owners aren’t the only ones who are able to tap into last-minute tax savings. There are ways individuals can make the most of the month of December too. From paying state & local tax estimates by the end of the year to prepaying your real estate taxes, taking a little time to plan ahead can help put more money in your pocket.

Do you think you can benefit from any of these tips? Email a tax expert at Rea & Associates to discuss what you should do before year-end to take advantage of major tax savings opportunities you may have missed in the past.

By Lesley Mast, CPA (Wooster Office)

Want more? Here are more tips to help you start the year off on the right foot.

Employers: Are You Ready To Change The Way You Withhold Municipal Tax Payments?

How to develop a forward-looking financial forecast for your business

Don’t Start The New Year Without Updating Your Business Plan

Share Button

Quiz Results Are In – And The News Is Good

Wednesday, December 9th, 2015

Ohio Department of Taxation Stops Thieves From Stealing Millions

Identity Theft & Income Tax Refund Fraud Resource | Ohio CPA Firm

The implementation of an identification verification quiz by the Ohio Department of Taxation has helped stopped identity theft and income tax fraud since it was implemented last year for the 2015 income tax season.
Rea & Associates recently compiled a variety of information to help victims of identity theft and refund fraud recover from this nightmarish scenario. Click the image above to access this resource.

Tax fraud has been on a steady upswing for quite a while – a frightening trend that has led the Ohio Department of Taxation (ODT) to take innovative measures during the 2015 tax season. Nearly one year after announcing plans to implement the state-wide quiz designed to filter tax-refund requests by analyzing demographic information reported on the taxpayer’s return, officials boasted incredible results.

While ODT reported a 400 percent increase in fraudulent refund requests in 2015 from the year prior, the quiz helped the department prevent 232,898 suspicious returns from being filed – which saved the state about $256.5 million in illegitimate funds.

Read Also: Should I still be concerned about identity theft and tax fraud?

The implementation of this verification method was deemed necessary after ODT noticed a monumental increase in fraud cases during the 2014 tax season – $250 million in attempted tax fraud – compared to previous years when the average was around $10 million.

“We appreciate the taxpayer’s time in taking this extra step before receiving their refund,” said Joe Testa, tax commissioner, in a release. “The quiz has been and will continue to be instrumental in stopping fraud.”

According to the ODT, the tax quiz has been effective because of its effectiveness when analyzing tax returns for inconsistent data points against public and commercial data sources. For example, a return may be flagged if your name and/or Social Security number show up in a different parts of the state (or in another state altogether) when you have been primarily located in another area of Ohio over the last few years. To claim your refund, you will be required to take the identity quiz, which would either indicate that you’ve moved in the last year or that a fraudster is trying to claim your refund. For your return to be processed, you must either take the quiz or provide documentation to verify your identity.

Testa also said that the department has gathered feedback and have “made some changes to improve the process and provide a better experience for taxpayers who take the quiz.”

Looking ahead, taxpayers should expect to see more of the identification quiz in 2016 and beyond. Here are three things you should know about the identification quiz:

  1. Allow more time

Traditionally, it takes up to 15 days to process refunds that have been distributed to the taxpayer via electronic deposit. Those who opt to receive their refunds in check form could have to wait up to 30 days. The quiz, however, could prolong the process.

  1. Know, don’t guess

Those who are selected to take the quiz, will receive a letter that will explain your next steps. If you do not receive this letter, you will not be able to complete the quiz.

  1. Be prepared

If your return is flags, you will have 60 days to complete the multiple choice quiz. Furthermore, the quiz is timed and must be completed online.

To learn more about the effectiveness of this measure or for more great information, check out the Frequently Asked Questions available on the DOT website.

Are you wondering if you are going to need help filing your 2015 tax return this spring? Email Rea & Associates for assistance.

By Lisa Beamer, CPA (New Philadelphia office)

Want to discover more ways to prevent or recover from identify theft? Check out these articles.

How Do You Protect Yourself from Identity Theft?

How To Recover From Identity Theft & Refund Fraud

Cyber Crime: It Can Happen To You

Share Button

Employers: Are You Ready To Change The Way You Withhold Municipal Tax Payments?

Monday, December 7th, 2015
Municipal Payments - Ohio CPA Firm

The new year also marks new changes to the way many employers withhold their municipal taxes. Read on to learn more.

Ready or not, all Ohio municipalities will be welcoming a slew of new provisions designed to bring about a unified system of income tax reporting. House Bill 5 was signed into law by Gov. Kasich on Dec. 19, 2014. The bill, which was championed by the Ohio Society of CPAs and supporters, helped streamline several key measures that help establish meaningful municipal tax reform. Per the legislation, many key provisions are scheduled to take effect at the first of the year. Here are four facts about the changes that you need to become familiar with:

For more insight into why these changes were necessary, read: Tackling Ohio’s Tough Municipal Tax Issues

1. Due dates have changed. 

Municipalities will have to adhere to new withholding due dates with regard to their monthly filing and payment requirements. They are due on the 15th following the month they were withheld. Due dates for quarterly filing and payments will be on the 15th day of the month following the end of the quarter.

2. New withholding thresholds.

If you withheld more than $2,399 in municipal taxes during the last calendar year or more than $200 during one or more months during the recent quarter, you will now be required to file your withholdings monthly.

3. A defining moment for temporary work sites.

An employer is not required to withhold municipal income tax on qualifying wages for the performance of personal services in a municipal corporation that imposes such a tax if the employee performed such services in the municipality on 20 or fewer days in a calendar year, unless one of the following conditions apply:

  • The employee’s principal place of work is located in the municipal corporation.
  • The individual is a professional entertainer or professional athlete, the promoter of a professional entertainment or sports event, or an employee of such a promoter.
  • The employee performed services at one or more “Presumed Worksite Locations.”
  • The employee is a resident of the municipal corporation and has requested that the employer withhold tax from the employee’s qualifying wages.

If an employer does not withhold for those first 20 days, they have to withhold the principal place of work’s municipal income tax. Because it’s impossible to be in two places at once (a rule that is just as true in accounting as it is in the metaphysical world) special guidelines are needed for those employees who work in more than municipality on a given calendar day. If an employee works in multiple municipalities in a single workday, for example, the municipality that they worked in the most number of hours would be the one that would be counted for that day. The rules that govern this provision are very detailed. Click here to read more. Once the employee exceeds the 20 day threshold, taxes must be withheld for that municipality. Retroactive withholding, however, is NOT required.

4. New rules for small businesses.

If your business earned less than $500 thousand over the preceding taxable year, the government considers your establishment to be a small employer, which means that the withholding process is just a little different. Small businesses must withhold municipal income tax on all employees’ qualifying wages and remit that that tax only to the municipal corporation in which the employer’s fixed location is located – regardless of the number of calendar days worked throughout the year. Further clarification can be found here. Federal government, state government, state agency or municipalities, political subdivision or any entity treated as a government for financial accounting and reporting are excluded from the small business rule.

Additional information can be found here. In the meantime, if you want to learn more about the upcoming changes and how you can remain compliant with these new provisions; email Rea & Associates and ask to speak with one of our tax experts.

By Heather McNichols, (New Philadelphia office)

Are you looking for some more tax tips to help you prepare for the 2016 filing season? Check out these articles:

Breaking The Tax Bracket Myth

Does Your Vacation Home Provide Tax Relief?

New Payment Option Available To Ohio Pass Through Entities

Share Button

Cyber Crime: It Can Happen To You

Tuesday, December 1st, 2015

Phishing Scam Targets Tax Preparers To Get To Taxpayers

IRS Phishing Scams - Ohio CPA Firm

One thing you can do to help protect yourself from cyber criminals is to make sure your address bar reads “https” and NOT like the one pictured above. Read on for additional tips.

Fraudsters don’t take holidays. In fact, they tend to be more active this time of year because they believe we are more likely to let our guards down. Instead, I don’t intend on falling for any of their traps, and I encourage you to do the same.

It’s A Trap

We recently published a blog post with tips to help online shoppers protect themselves against some of the more common tactics used by cyber criminals. From click bait to phishing emails, every link, sponsored post and flashing banner ad is a potential threat and we encourage you to protect yourself at all costs.

For example, you likely receive regular electronic correspondence from companies, organizations, groups and other reputable groups. In fact, you probably willingly provided them with your email address. You may even trust these contacts so much that you never thinking twice about whether their email is valid, and that’s what criminals are counting on. Nobody is immune.

Read Also: Who Is That Email Really From?

A current scam finding its way into inboxes across the country is targeting tax preparers. The email, which is supposedly being sent by the IRS, looks legit and includes the agency’s letterhead, logo and copyright language, among other information designed to add credibility to the piece. But there’s a problem – this email is not official IRS correspondence. Instead, it’s being sent by cyber criminals who are looking to capture usernames and passwords to gain access to taxpayers’ sensitive data.

We’re Not Falling For It

The American Institute of CPAs reached out to the IRS to verify whether the email in question is, indeed, a phishing scam. The government agency confirmed that the email was a scam and were quick to advise recipients to delete the message immediately.

This is just one example of a phishing scam in action. Emails like these are distributed every day and, oftentimes, they come from trusted businesses, organizations or people. As cyber threats continue to be rampant in our society, we must never allow ourselves to become complacent.

What You Can Do

Here are some tips to help keep you safe.

  1. Do It Yourself – Never click on hyperlinks found within the body text of the email – especially if you received the message from an unknown sender. If you do want to check the validity of an offer or content, manually type the URL into your web browser. Same results, less risk.
  2. ‘S’ For Safety – If confidential information is being traded, take a look at your address bar to make sure it reads “https” rather than the standard “http” to be sure the web page you are visiting is, indeed, secure.
  3. If It Pops, Run – Sometimes, the best and easiest strategy you can take to protect yourself from scammers is to configure your computer’s settings and buy and install the proper tools. We recommend disabling all popups, keeping an updated antivirus, use anti-spam and anti-spy software and install and maintain a firewall. Cyber criminals are always looking for ways to get around these measures, but they still provide you with a great first defense.
  4. Watch Your Back With A Backup – We keep a lot of irreplaceable items on our computers and, to many, the thought of permanently losing their data, photos and other documents is terrifying. One way to take the power away from the scammers is to create and maintain a backup of your data – especially when considering the very real threat of ransomware. That way, if something were to happen, you wouldn’t lose these vital items.
  5. Education Is Power – These criminals are slick and they are always finding new ways to take what belongs to you. So, one of the absolute best ways to guard against an attack is to educate yourself on current cybercrimes, identity theft trends and tactics being used by fraudsters.

By Lesley Mast, CPA (Wooster Office)

Want to know more about what other threats are out there? Check out these articles:

Malware Threat Spreads To Smart Phones

Fraudulent Credit Card Transactions Will Become Merchant’s Problem On Oct. 1

How Much Is Your Data Worth To Criminals?

Share Button

New Payment Option Available To Ohio Pass Through Entities

Thursday, November 19th, 2015
Tax Payment Process - Ohio CPA Firm

What is your business made of? If it’s a pass through entity, you now have an easier way to pay your tax bills. Read on to learn more.

Do you currently enjoy the benefits associated with owning a pass through entity (PTE) in Ohio, including better tax treatment and limited liability protection? Well, earlier this month the Department of Taxation announced another little perk – online payments! According to the release, the Treasurer of Ohio is now accepting tax payments per its Electronic Funds Transfer (EFT) program on its website. This announcement impacts:

EFT, according to the Treasurer’s Office, is a secure, online payment option for those seeking a convenient way to pay recurring commercial activity, corporate franchise, sales, streamlined, use, withholding and now pass through entity taxes. To utilize this online payment system, you must have a federal employer identification number.

Even though the online payment process is in full swing, pass through entities are still unable to register electronically. Once completed, you can submit the form to the Electronic Payments Unit of the Treasurer’s Office.

By Lisa Beamer, CPA (New Philadelphia office)

What Does Having The Right Business Structure Mean To You?

Did you know that business structure plays a huge role when determining what your business can and cannot do? It also helps determine your tax liability. Take a look at the slideshow below to learn more or click here to learn even more about the business structures that are available to you. You can also email Rea & Associates if you have additional questions.

Want A Better Business? Structure Matters from Rea & Associates
Share Button

What companies can do now to get ready for the 2016 tax season

Monday, October 5th, 2015

It’s time to do your business tax planning and, just like a doctor’s check-up, if you decide to skip it, you may regret it.

You could face a larger tax bill because you weren’t in close enough contact with your advisers when you did a transaction, changed a policy or practice, or amended what you are doing with insurance. You may encounter wide swings in income and tax due from one year to the next if you don’t check in with your advisers.

Smart Business recently interviewed Tracy Kaufman and Joe Popp about tax strategies business can implement now to prepare for the upcoming 2016 tax season. Want to learn more and see what you can start doing now? Check out the interview on Smart Business’s website.

What to read more posts about tax planning strategies? Check these out:

The Truth About Tax Extensions

Is Simplicity Worth The Cost Of Peace Of Mind?

5 Tax Deductions To Ease Your Business’s Tax Burden

Share Button

Like Losing Your Wallet – Only Worse

Friday, July 31st, 2015
Retirement Plan Returns- Ohio CPA Firm

Typically, owners of businesses and their spouses who fail to file their annual retirement plan returns are in full-scale crisis mode – and rightfully so, since missing this deadline results in a penalty that’s about the size of a small fortune.

For most of us, misplacing our keys, losing sight of our shoes and occasionally forgetting to pay the phone bill on time is not a catastrophic phenomenon. It happens; and most likely we will freak out for a minute, find what we were looking for and move on – only to repeat our dysfunctional routine countless times over the course of a lifetime. Forgetting to file your retirement plan returns on the other hand … well, let’s just say that’s typically not a stress-free event.

Read Also: Do You Know What Your Retirement Plan Is Costing You?

Typically, owners of businesses and their spouses who fail to file their annual retirement plan returns (Form 5500-EZ) are in full-scale crisis mode – and rightfully so, since missing this deadline results in a penalty that’s about the size of a small fortune. To be more precise, in years past, those who failed to meet their filing obligation could face a penalty totaling up to $15,000 per return. Fortunately, the IRS recently announced that instead of facing such an extreme late fee, eligible business owners can take advantage of a “low-cost penalty relief program.”

How Much Would You Pay?

The relief initiative, which started as a one-year pilot program in 2014, was tremendously successful, resulting in the collection of about 12,000 late returns. Because of this success, the program secured it’s permanency in May of this year. According to the news release, the program allows eligible business owners and their spouses to file late returns and only pay a $500 penalty for each return submitted with a maximum of $1,500 per plan. Because the IRS caps the maximum penalty at $1,500, applicants are encouraged to include multiple late returns in a single submission.

Eligibility

The IRS says that businesses with plans that cover the owner or the business’s partners (depending on how the business is set up) and their spouses are eligible to take advantage of this low-cost plan. Complete information about the program can be found by clicking here.

Learn More

Remember, your return must be filed annually no later than the end of the seventh month following the close of your plan year. So, for example, if your plan is governed by the calendar-year, as most are, your 2014 return was due today (Friday, July 31, 2015). Did you fail to file your small business’s annual retirement plan returns? Would you like to find out if you qualify for this program? Email a retirement plan expert at Rea & Associates and take control of your IRS debt now.

By Andrea McLane, QKA (Dublin office)

Want to read more about the importance of Retirement Plan Compliance?
Check out these articles:

401(k) Loans and Keeping Your Plan In Compliance
Retirement Roulette
The ‘Van Halen Philosophy’ of Retirement Plan Compliance

Share Button

How to make your building work for you with a cost segregation study

Wednesday, July 29th, 2015

Have you recently purchased commercial real estate or invested in construction? If so, you might want to look into getting a cost segregation study. The benefits of a study can mean tax savings and improved cash flow. Smart Business recently sat down with me to discuss the benefits of a  cost segregation study.

For example, if you buy a building and it’s all capitalized as one lump sum on a business’s tax return, then it can only be depreciated over 27 to 39 years … But if you break it down into cost components, the business owner can depreciate certain costs over five, seven or 15 years to accelerate tax deductions.

To find out what a cost segregation study could do for your recent construction investment or commercial real estate purchase. Read the full article here or read more about cost segregation studies by clicking on the article links below. 

Learn more about cost segregation studies and how they can help your small business:

It’s No Secret – Cost Segregation Studies Can Save Business Owners Money

Uncork Bottled Cash Flow with Cost Segregation Studies

Uncover Tax Savings in Your Real Estate Through Cost Segregation

Share Button

Should I still be concerned about identity theft and tax fraud?

Thursday, July 9th, 2015

This article was published in the July 2015 issue of Columbus Business First – Ask The Expert.

Identity theft and tax fraud are problems that show no signs of stopping. This year, in an attempt to provide an added layer of protection, taxpayers in Ohio had the opportunity to get up close and personal with the Ohio Department of Taxation’s (ODT) newest fraud safety measure – the Identification Confirmation Quiz.

fraud_small

We hear about cases of fraud every week, but steps are being taken to slow it down and ultimately stop it.

While you may have heard your friends and family comment (perhaps unfavorably) about this added step, government officials have said that the quiz helped thwart countless attempts to steal refund checks from Ohio taxpayers this year. During the 2014 tax season, fraudsters pocketed more than $250 million worth of taxpayer refunds, prompting the need for additional safety measures. Due to its success, the ODT expects the quiz to become a mainstay of your tax prep routine.

But just because tax season is over, doesn’t mean you should let your guard down – quite the contrary. When it comes to protecting your identity, you must remain vigilant. Whether you are aware of it or not, criminals are still looking for ways to steal your personal identification information for a myriad of uses.

Do you know what to do if your ID is compromised? Visit www.reacpa.com and click on the “Tools” button in the top navigation bar. From there, you can read our compilation piece How to Recover from Identity Theft & Refund Fraud for more insight and information that can help you recover from identity theft and tax fraud.

Share Button

The Truth About Tax Extensions

Friday, April 10th, 2015

We find ourselves, once again, at the end of another income tax season. A time of year that many American taxpayers (and accountants) hold dear. We, however, know that while tax season may be “officially” over, there is still plenty of tax work to be done.

The first four months of the year is a busy time for accountants and, because we work closely with so many small businesses all year long, we are acutely aware of how much stress you are under to meet your first quarter obligations. This is why, instead of rushing just to get your taxes filed and out the door ahead of the April 15 deadline, we frequently recommend that our clients file for a tax extension.

Unfortunately, there are some pretty nasty rumors going around about tax extensions. Hopefully, I will be able to debunk some common tax extension myths while helping those who opted to extend their deadline sleep a little better tonight. Check out the slideshow and get the facts about tax extensions!


The Truth About Tax Extensions – Created with Haiku Deck, presentation software that inspires

Myth 1:

Filing a tax extension increases your chance of an audit.

Truth:

First and foremost, your chance of being audited by the IRS does not increase simply because you chose to file a tax extension. In fact, in the event that you are chosen to undergo an audit, you will be able to go into the process with more confidence. Tax extensions can be great for businesses that were simply overwhelmed by other critical responsibilities during the first quarter of the year. When you give yourself the luxury of filing an extension, you give yourself more time to compile all the files and information necessary to make tax return prep as seamless and thorough as possible.

Myth 2:

Tax extensions burden accountants.

Truth:

On the contrary, fling an extension not only gives your accountant extra time to check and double check the work, it gives them the added time needed to provide better service. For example, we pride ourselves on our work ethic, attention to detail and client service – especially during busy season. However, as trusted financial advisors, we are able to better serve our clients better when we have a chance to help them understand the opportunities they qualify for and how they can use certain tax strategies to help plan for the future. Believe me when I tell you that we do not look at extensions as burdens.

Myth 3:

There is nothing to gain by filing a tax extension; it’s just a way to prolong the inevitable.

Truth:

Filing a tax extension not only gives you more time to file your return with the IRS and the state, it effectively stalls some of your other looming deadlines as well. For example, a tax extension can award you more time pay your profit sharing plan, defined benefit, or your SEP IRA as part of your retirement plan contribution, which is an excellent short- and long-term benefit! Once your extension has been filed, you will have more time to file your retirement plan contribution, all while claiming the deduction in your prior year’s return.

Email Rea & Associates to learn more about the benefits of filing income tax extension with the IRS and the state.

By Joe Popp, LD, LLM (Dublin office)

 

Related Articles:

Didn’t File Your Taxes Or Can’t Pay Them Now? Here’s What To Do

Save More For Retirement In 2015

What If You Can’t Pay Your Taxes?

Share Button

5 Tax Deductions To Ease Your Business’s Tax Burden

Thursday, March 12th, 2015
Tax Deductions Add Up

If you made a donation to a nonprofit organization last year, it’s almost guaranteed that you are eligible to deduct at least a portion of your contribution from your income.

The Internal Revenue Service (IRS) reported earlier this month that nearly 59 million 2014 federal tax returns have been filed so far this filing season. While that may sound like a lot, there’s still a ways to go as, according to IRS estimates, three of five taxpayers are still waiting to file. For those of you still working on your tax prep, there is still time to claim some valuable deductions. Here are five deduction options to help small businesses make the most of the 2015 filing season:

1. Ohio Small Business Deduction

Many small business owners in Ohio are eligible to receive help from the state on their 2014 tax returns through the Ohio Small Business Deduction. Initiated by Ohio Gov. John Kasich and considered to be “the largest overall tax reduction in the country,” the deduction allows eligible small businesses to take a 50 percent tax deduction on their first $250,000 of business income. However, for the 2014 taxable year only, that percentage was increased to become a 75 percent deduction of “net business income from an individual’s adjusted gross income reported on their Ohio personal income tax return.” Your financial advisor can help you learn more about the Ohio Small Business deduction and help you take your business strategy to the next level.

Read More

2. Section 179 Deduction

When Congress voted in favor of the Tax Extenders Act late last year, among the many tax incentives that were extended included an action to retroactively reinstate the $500,000 depreciation limit on the Section 179 deduction as well as the 50 percent bonus depreciation. Together, these tax incentives have the potential to save you and your company hundreds of thousands of dollars on equipment purchases. Limits and restrictions do apply, however, so make sure to work with a trusted advisor who can make sure your purchases actually qualify.

Read More

3. Personal Vehicle Deduction

If you drive your personal vehicle for business, then you may be able to deduct the expenses related to your car or truck as long as the vehicle was actually used for business purposes and not just commuting. A professional advisor can help you determine if you qualify to claim the deduction and can help determine which deduction method is the best one to use given your personal circumstances.

Read More

4. Stock Gains Deduction

Some qualified businesses may also be able to exclude the gains generated by qualified small business stock per provision IRC Sec. 1202. Originally passed by Congress in the 1990s, this provision was designed to help reinvigorate the importance of continued investment into our country’s small business infrastructure. This incentive is a little more difficult than some of the others, but if you qualify, you could realize significant savings. Because of the complicated nature of this particular provision, it is essential that you work with a tax advisor to find out if you qualify.

Read More

5. Charitable Giving Deduction

If you make a donation to a nonprofit organization during the year, it is almost guaranteed that you will be able to deduct at least a portion of your contribution from your income. But there are rules that need to be adhered to. A good financial advisor can help you get the maximum benefit for every dollar donated.

Read More

For more information related to specific tax and deduction questions related to your business, email Rea & Associates.

By Lesley Mast, CPA (Wooster office)

 

Related Articles

How To Drive For Business And Save On Your Tax Bill

Theft Safeguards To Cause Tax Return Delays In Ohio

Should I Make A Big Purchase To Cut Taxes?

Share Button

Is A Sale-Leaseback Transaction Right For Your Business?

Tuesday, March 3rd, 2015
Sales-Leaseback Transaction

Is it a better business strategy to enter into a sale-leaseback transaction on your current office building or other business property? Make sure you know the pros and cons before making any decisions – Rea & Associates – Ohio CPA Firm

Are you looking for a plan to increase your business’s cash flow? If you own business property, you may be able to benefit by entering into a sale-leaseback transaction. But while there several great benefits to this type of agreement, there are also some significant drawbacks. So, before you draw up the paperwork, schedule a time to meet with your financial advisor to find out if the benefit outweighs the risk.

Advantages Of A Sale-Leaseback Transaction

A sale-leaseback transaction occurs when you, the real estate owner and occupier, sell your property to a third party on the condition that they agree to lease the property to you. Entering into this type of arrangement has several benefits, including increasing your business’ cash flow while freeing your business up to allocate the capital to other areas of your business. Additional benefits include:

  • As the seller and eventual lessor, you essentially maintain control of the property, which prevents operational disruptions from occurring.
  • Assuming the current property is financed with debt, this long-term debt can be eliminated from the balance sheet under certain lease arrangements.
  • From a tax perspective, you gain an additional annual “write-off” for the portion of rent related to the land (as land is not depreciated).

Drawbacks Of A Sale-Leaseback Transaction

Perhaps the most significant disadvantage of entering into this type of agreement is that you stand to lose the flexibility that comes with owning the property outright since these transactions usually are for longer terms than a typical property lease (15 or more years). The typical sale-leaseback transaction takes the form of a “triple net lease,” which usually states that you, as the tenant, will be responsible for the net real estate taxes, net building insurance and net common area maintenance. Other disadvantages include:

  • The loss of the real estate’s appreciation value over the course of a lengthy lease term.
  • Significant income tax impact that comes in to play when a property’s sale price significantly exceeds the property’s “book value.” This typically occurs when you are selling a property that has been owned for a long period of time prior to the sale.
  • A decrease in your Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) as your depreciation expense on the property is replaced by the rent expense.

The financial benefits of sale-leasebacks must be balanced with your unique strategic and operating considerations. A financial advisor and business consultant can help identify whether this option is right for you and your business. Email Rea & Associates to learn more about sale-leaseback transactions and other strategic business decisions. By Ben Antonelli, CPA (Dublin office)  

Related Articles

‘Ghost Assets’ Haunting Your Business? How Can A Small Business Owner Keep More Money In Their Pocket? How Will A Tax Credits and Incentives Plan Benefit Your Business?

Share Button

Governor’s Budget Proposal Makes The Case For Tax Reform

Wednesday, February 11th, 2015
Proposed tax increase on oil and gas production

If the proposed two-year state budget proposal passes, oil and gas produced by horizontal wells will be taxed at a 6.5 percent tax rate for product sold at the wellhead. If sold downstream, a 4.5 percent tax will be applied.

Since it was unveiled last month, Gov. John Kasich’s proposed two-year state budget has many individuals, businesses, school districts, not-for-profit organizations and others scrambling to find out how his proposed tax reform package will affect them. In his recommendation, Gov. Kasich says his proposal seeks to “create more opportunities for each and every Ohioan.” To this end, the budget focuses on four primary objectives:

  1. To ensure that students are ready for college and careers
  2. To help more students get degrees
  3. To cut and reform taxes
  4. To help Ohioans move up and out of poverty and into jobs

To achieve these goals, Gov. Kasich has proposed implementation of several tactics to help fund his $35.5 billion 2016 budget, which is up 15.5 percent over the state’s projected spending in fiscal year 2015. Of those tactics, a slew of tax cuts and increases are central to his budget initiative. The following points address some primary changes Ohioans can expect to see if Gov. Kasich’s 2016-2017 budget plan is approved.

Proposed Tax Cuts

  • A 23 percent across-the-board income tax rate reduction. This proposed cut would drop the top income tax rate to 4.1 percent, the current from 5.33 percent.
  • Business owners of pass-through entities with gross receipts less than $2 million will pay no income tax on their business income.
  • Other Ohio business owners will see the 50 percent reduction incentive on income that totals $250,000 and less become permanent.
  • Individuals who earn less than $40,000 will see a $1,600 increase in their personal exemption (from $2,400 to $4,000). The personal exemption for those who make between $40,000 and $80,000 will increase by $900 (from $1,950 to $2,850).

Proposed Tax Increases

  • The commercial activity tax (CAT), which is measured by a business’s gross receipts on business activities in the state, will increase 0.6 percent to 0.32 percent.
  • The state’s sales tax will increase to 6.25 percent. The current sales tax rate is 5.75 percent and would be expanded to include management consulting, lobbying, market research and opinion polling, public relations, debt collection services, cable subscriptions and parking and travel services.
  • Means-tested tax credits and exemptions for retired taxpayers who earn more than $100,000.
  • Oil and gas produced by horizontal wells will be taxed at a 6.5 percent tax rate for product sold at the wellhead. If sold downstream, a 4.5 percent tax will be applied.
  • The state currently reduces the price paid for the new car or boat by the value of the trade-in. The proposal calls for a 50 percent deduction in this exemption.
  • The discount vendors receive for collecting, reporting and remitting sales tax will be capped at $1,000 per month.

To learn more about how tax reform could affect you, email Rea & Associates.

By Lesley Mast, CPA (Wooster office)

 

 

Related Articles

How To Drive For Business And Save On Your Tax Bill

Theft Safeguards To Cause Tax Return Delays In Ohio

Should I Make A Big Purchase To Cut Taxes?

Share Button

How To Drive For Business And Save On Your Tax Bill

Monday, February 2nd, 2015
Deducting expenses related to your car or truck is an allowable business expense – as long as the vehicle is used for business purposes.

Deducting expenses related to your car or truck is an allowable business expense – as long as the vehicle is used for business purposes.

If you are one of the many men and women who drive their personal vehicles for business, don’t forget to claim the appropriate tax deduction on your tax return – the savings just might help you keep more cash in your bank account and more gas in your tank.

Here’s what you need to know. …

Deducting expenses related to your car or truck is an allowable business expense – as long as the vehicle is used for business purposes. And if you use it exclusively for business purposes, you may be able to deduct the full cost of your vehicle. But before you start claiming deductions on your tax return, make sure you understand what the IRS considers to be a valid business purpose. Hint: Commuting from your home to work is not considered a valid business purpose.

When To Claim A Deduction

Do – claim a deduction if you use your vehicle for travel between two places of business.

Do – claim travel expenses that result from traveling from one job to another, traveling from one customer or client to another and traveling from your office or business location to perform other business tasks.

Do – claim your travel expenses that accrue between your home and a business destination if you have a home office that is considered your primary place of business.

Which Deduction Is Better?

There are many factors to consider when choosing a deduction method that will result in the most tax savings. The two biggest factors are the cost of the vehicle and how many business miles you drive each year. Here are the nuts and bolts of your two options:

  • Standard Mileage Method – If you keep good notes, then you may prefer the standard mileage method to keep track of your deduction. Here’s how it works: Start by keeping a log or a journal of all your business trips – include who, what, when and where. Then add up all the miles you racked up on your trips and multiply that number by the IRS’s standard mileage rate – which currently stands at 57.5 cents per mile. For example: if you were to drive 15,000 business miles over the year, you can multiply that number by 57.5 cents per mile to claim an $8,625 deduction.
  • Actual Costs Method – This method requires that you to keep track of all costs associated with your vehicle, including depreciation, repairs, maintenance, gas, tires, etc. When you have collected all these costs and arrived at a total, multiply this number by the percentage of time the vehicle is used for business purposes. Your deduction is limited to the percentage of time the vehicle was used for business purposes.

So, which deduction method is better?

Say you purchased a car for $30,000 and you use it exclusively for business purposes. You have figured that you drive about 10,000 miles for business each year. If you use the standard mileage method, you could claim a $5,750 deduction each year. But if you were to use the actual costs method, instead you would find that during the first five years of owning the car the actual vehicle expenses significantly add up to a larger tax deduction.

If you use your vehicle for business purposes, a financial advisor can help you identify the best route to maximize your tax savings. Email Rea & Associates to learn more.

By Tom Jeffries, CPA (Millersburg office)

 

Related Articles

New Year, New Mileage Rates

What Red Flags Might Get Your Audited?

How Can A Small Business Owner Keep More Money In Their Pocket?

Share Button

Too Close For Comfort?

Wednesday, December 17th, 2014

 

Tax Provisions Extended Just In Time

They may have waited until the 23rd hour, but members of Congress finally voted to extend more than 50 expired tax provisions slated to expire at the end of the year. Tuesday evening’s 76-16 vote in favor of the extensions was enough to send a collective sigh of relief among tax professionals nationwide. The bill will now be sent to President Barack Obama for his signature. Many tax professionals were worried that Congress would postpone the vote until after the New Year, which could have postponed the start of the 2015 tax season and hurt those on the tax prep front lines, including the IRS, tax preparers and some software providers. But today is a new day and instead of planning for the worst case scenario, tax planning can commence as planned. The Tax Increase Prevention Act of 2014, or H.B. 5771, temporarily extends several tax breaks and provisions while correcting some technical errors found in prior legislation. Including:

  • Extensions that benefit individuals:

–        A $250 above-the-line deduction for certain expenses of teachers

–        An election to deduct state and local sales tax

–        Tax-free charitable distributions from individual retirement accounts (IRAs)

–        The private mortgage insurance (PMI) itemized deduction

–        The energy efficient home improvement tax credit

  • Extensions that benefit businesses:

–        The work opportunity tax credit

–        A research and experimentation credit

–        The Section 179 expensing limit

–        50% bonus depreciation

A complete list of 2014 tax extenders can be found in this article, published by the Journal of Accountancy. Another bill within H.B. 5771 was also up for Congressional consideration – the Achieving a Better Life Experience (ABLE) Act of 2014. The legislation seeks to provide for tax-favored accounts that allow those who are disabled to save money to pay for disability expenses. This portion of the ABLE Act amends the definition of personal holding company income, institutes certain inflation adjustments and, for employment tax purposes, allows for certified professional employer organizations to be treated as employers for work-site employees who perform services for customers of the organization. The Tax Increase Prevention Act of 2014 is by no means a long-term fix. There were earlier proposals that sought to permanently extend some provisions while extending others for more than a year, but those suggestions were unable to find traction throughout the legislature. So, while we may be able to relax this year, we will likely have bouts of Déjà vu over the course of 2015. By Lisa Beamer, CPA (New Philadelphia office)

Related Articles

The Tax Professional’s Christmas List New Year, New Mileage Rates New Adjustments Will Affect Your 2015 Tax Return

Share Button

Should I Make a Big Purchase to Cut Taxes?

Tuesday, December 16th, 2014

This is a hectic time for business owners who are working to close their books on the previous year while strategically planning for the year ahead. For me, this is the time of year I find myself frequently fielding questions from clients who want to know if buying equipment will help them keep their taxes down.

Unfortunately, without the proper information, any answer I could provide would be about as useless as seeking business advice from a Magic 8-Ball. Fortunately, the answer really isn’t difficult to find, especially if you have a well-maintained balance sheet.

To determine whether purchasing equipment would be beneficial to your business from a tax perspective, I have to know what your profit looks like. And while it may be easy to pull out your profit and loss statement to find the answer, I would encourage you to take a look at your balance sheet as well. It’s capable of painting a detailed picture of your business and is a great tool that can help you make sound financial decisions for your business.

Before you make any decisions that could impact your business’s financial stability, make sure these six items on your balance sheet are accurate.

  • Cash Reconciliation
    • Check to make sure that all cash has been reconciled and make special note of checks that have remained uncashed for an extended period of time.
    • Verify that all checks – incoming and outgoing – have been recorded, and their status tracked.
  • Collectability of accounts receivable
    • Does your business currently have any bad debts? If so, have you taken the necessary actions to determine that the account in question is uncollectable?
    • Once an account is uncollectable, take the steps needed to prove that determination and receive the benefit from it.
  • Accurate Inventory
    • The end of the year is an ideal time to take a physical inventory.
    • An inaccurate inventory can greatly impact your profit – not to mention your ability to properly manage your resources.
  • New/Disposed Fixed Assets
    • Be sure to add all new assets (equipment, fixtures, etc.) to the correct accounts. Don’t let them become buried in your purchases.
    • If you are planning to sell your company in the next 5-10 years, it is extremely important to keep an accurate record of your assets because they can help determine your asking/selling price.
  •  Liabilities
    • Keep a current record of all your liabilities and update it regularly to maintain accuracy.
    • Make sure that all debts are tracked and recorded.
  • Member Draws
    • Check to make sure that your member withdrawal account is accurate. If there are any expenses you expected to see but didn’t, investigate and find out why.
    • If after year end you happen to find personal expenses that were in regular expenses, your profit increases and so do your taxes.

Your company’s profit is not just a number. Your profit is determined by a wide range of factors – and these are just a few. If you are really want to lower your taxes, make sure your bookkeeping is accurate before developing a plan.

Email Rea & Associates to discover more ways to increase your business’s profitability.

By Joel Yoder, CPA (Millersburg office)

 

Related Articles

Is Your Business Ready for a Year-End Check-Up?

What Are 5 Things Your Should Do Financially At The Beginning Of The Year?

Should You Maximize Cash Flow or Minimize Income Taxes?

Share Button

New Year, New Mileage Rates

Thursday, December 11th, 2014

Every mile you drive for business will be worth a little more next year, according to a recent IRS announcement. Beginning Jan. 1, 2015, the optional standard mileage rate for those calculating the deductible costs of driving for business will be 57.5 cents, which is up from 56 cents.

Based on a study of the fixed and variable costs associated with operating an automobile, the standard mileage rates take into consideration vehicle depreciation, insurance, repairs, maintenance, gas, etc. However, if you don’t intend on tracking your mileage, you also have the option of claiming deductions based on the actual costs of using your own vehicle rather than the standard mileage rates. Just be aware that you will not be allowed to claim both.

For example, if you have plans of claiming an accelerated depreciation on your vehicle, then you will not be able to claim the business standard mileage rate as well. If you are a business owner, you should also note that the standard rate is not available to fleet owners, or those who use more than four vehicles simultaneously. Additional details and rules can be found in Revenue Procedure 2010-51.

While the standard mileage rate for the business miles you drive will increase in 2015, those who use their vehicles for medical or moving purposes will see a reduction of half a cent in their mileage rates. Starting Jan. 1, the miles you drive for medical or moving purposes will be calculated at 23 cents per mile driven. And those driving their vehicles as a service to charitable organizations may calculate their deductions at 14 cents per mile driven.

Also in its announcement, the IRS noted an adjustment to the standard automobile cost allowable under the fixed and variable rate (FAVR) plan, which considers the costs taxpayers incur by driving their own vehicles for work-related purposes. In 2015, standard automobile costs may not exceed $28,200 or $30,800 for trucks and vans.

Do you use your vehicle for business? Make sure you track of your mileage. Every mile you travel is an opportunity to realize real tax savings. Our expert financial advisors can help professionals like you find opportunities you never even knew existed. Email Rea & Associates today and start the New Year out right.

By Lesley Mast, CPA (Wooster office)

 

Related Articles

New Adjustments Will Affect Your 2015 Tax Return

How Can You Best Prepare For The Upcoming Tax Season?

So Is It A Tax Credit Or A Tax Deduction?

Share Button

Employers Must File Taxes, Make Payments Electronically

Tuesday, December 2nd, 2014

Starting this January, employers filing in the state of Ohio will be required to use the Ohio Business Gateway (OBG) to file and remit payment for state and school district income tax withholding returns, according to the Ohio Department of Taxation. The new rule was finalized earlier this month and will go into effect on Jan. 1, 2015. The OBG Electronic Filing system was established to save Ohio time and money by simplifying business’ relationships with government agencies while providing them with an easier means to comply with regulatory requirements.  However, it is understood that some employers may not be able to use the electronic filing system at this time, which prompted the department to allow some preparers to opt out of the requirement if they can establish a valid reason for why they are unable to comply. To opt out of the department’s new rule, employers must provide the department with the following information on form WT OOR, including their:

  • Business name
  • Address
  • Phone number
  • Employer withholding number and Federal Employer Identification Number (FEIN)
  • Withholding type
  • Detailed reason for the request to be excluded from electronic filing and payment provisions.

“Preparers seeking to opt out of electronic filing must present strongly compelling reasons to justify the waiver of the requirement,” the department states in the Frequently Asked Questions page of its website. “Preparers filing tax returns with the state of Ohio should plan to comply with the electronic filing mandate and not assume that their request to opt out will be granted.” Anyone may apply to be excused from the electronic filing requirement and permitted to file their return by non-electronic means. However, if approval is given, it is only valid for one year. Preparers are required to resubmit their requests annually. The opt out request form can be found on the “Forms” portal of the department’s website or by calling 888.405.4039 – option 1. Otherwise, you can register or log in to use the Ohio Business Gateway, click here. Additional assistance with navigation, filing a return and/or remitting payment, can be found by visiting the Self Help eLibrary. Email Rea & Associates to learn how you can stay in compliance with these new filing requirements and lessen the stress of filing and paying your state and school district withholding returns.

By Lisa Beamer, CPA (New Philadelphia office)

 

Related Articles:

New Adjustments Will Affect Your 2015 Tax Return

Ready, Set, Download: IRS2Go Mobile App 2014

How Can A Small Business Owner Keep More Money In Their Pocket?

Share Button

The Do’s and Don’ts of Summertime Tax Prep

Thursday, August 7th, 2014

It’s the beginning of August and you’re probably not keeping yourself up at night thinking about your taxes. Frankly, who has time to think about itemized deductions and tax-free distributions when you would rather be grilling out, soaking in the sun, or enjoying your family vacation? April 15, 2015, may be more than 260 days away, but now is a great time to look at your taxes and make necessary adjustments to effectively sidestep any potential problems that might cause problems when tax season does arrive.

Consider These Tax Prep Do’s and Don’ts

  • Don’t assume that filing your taxes will be the same as the year before. More than 50 tax provisions expired on Dec. 31.
  • Do make yourself aware of any changes that have occurred since last tax season. Some of the most common expired provisions include:
    • Itemized deduction for state and local general sales tax
    • Itemized deduction for mortgage insurance premiums (PMI)
    • Tax-free distributions from individual retirement plans for charitable purposes
    • 50 percent accelerated tax depreciation (“Bonus depreciation”).
    • Increased expensing. (This provision allows businesses to deduct the full purchase price of qualified equipment.) Current 2014 provisions are $25,000 deduction with a $200,000 limitation on purchases.
  • Do take time to manage your files. It’s much more manageable to file six months’ worth of receipts vs. a whole years’ worth in January. Are you looking for inspiration? Now is a good time to start organizing medical and charitable contribution receipts.
  • Do make a note as to whether the size of your household changed.
  • Don’t forget to review your withholdings. Did you receive a large refund in 2013? Did you owe the IRS in April? To adjust your withholdings, speak with your payroll representative and complete a new W-4.
  • Do send your estimated payments for income to the IRS every quarter to avoid charges and penalties for underpayments. If you forgot to make a payment or you underpaid in April or June, don’t worry. There’s still time to catch up on your September and January payments.
  • Don’t underestimate the short-term value of retirement contributions. Aside from the long-term savings benefits, many retirement accounts are a great tax deferral. If you are participating and not maxing out, consider increasing your contribution. Contributions to a Traditional IRA are another consideration.
  • Do set aside some time to review your health insurance situation. Alternatively, if you did not maintain health care coverage (and were not exempted) you will owe a penalty with your 2014 1040.
  • Do confirm that you comply with the new repair/capitalization regulations.

Tax Prep Help

A few minutes of work and organization now could save you some major headaches in April. Don’t miss out on your opportunity to jump start your tax prep. Want more tax prep tips? Contact Rea & Associates. Our team of Ohio tax professionals can help you determine what you need to do now to ensure tax time goes smoothly for you.

By: Trista Acker, CPA, CFP (Dublin office)

 

Want more tax prep tips? Check these blog posts out:

What Should You Do After Tax Season?

How Can A Small Business Owner Keep More Money In Their Pocket?

So Is It a Tax Credit Or a Tax Deduction?

 

Share Button

How Far Back Can The IRS Go For Tax Auditing?

Friday, June 20th, 2014

As a CPA I am frequently asked, “How far back can the IRS look to audit my tax return?” That’s a great question. Can the IRS go back and audit your tax return from five years ago? 10 years ago? 25 years ago? Before you start to panic, rest assured that the IRS has a statute of limitations in place that generally puts a limit on the time allowed to audit you and assess additional tax.

Typically, the statute of limitations is three years for the IRS to include a tax return in an audit. This means the statute of limitations likely ran out on the majority of 2010 returns. The 2010 returns would have been due on April 15, 2011 … three years from that date was April 15, 2014. So most taxpayers are out of the woods for 2010 tax returns and all prior years. This same statute of limitations applies to the taxpayer when they would request a tax refund – you can only go back three years’ worth of returns to request a tax refund.

IRS Statute of Limitations Can Be Extended

But wait, before you start high-fiving everyone around you … that statute of limitations can be stretched out to six years if a substantial error is identified. A substantial error is defined as an omission of 25 percent or more of gross income. This may also apply to basis overstatements whenever property is sold.  Basis generally means the amount of capital investment in a property for tax purposes.

The U.S. Tax Court has given mixed results on whether or not basis overstatements constitute understatements of gross income. The Federal, Washington D.C., 7th  and 10th circuits have ruled in favor of the IRS, supporting the concept that basis overstatements open up the six-year statute. However, the 4th, 5th, and 9th circuits have ruled in favor of the taxpayer, holding that basis overstatements do not constitute substantial understatements of gross income.

When The IRS Statute of Limitations Doesn’t Expire

There are situations when the statute of limitations never expires. The most common is when a return never is filed. The other situation is when the IRS sues for civil tax fraud. Civil tax fraud cases are extremely rare because the burden of proof is so high for the IRS. The older the fraud, the colder the trail gets.

The IRS has stated that it tries to audit tax returns as soon as possible after they are filed. But in my professional experience, most audits are typically of returns filed within the last two years.

If an audit is not finished, the taxpayer may be asked to extend the statute of limitations for assessment of his or her tax return. Extending the statute will allow additional time to provide additional documentation to support a position, request an appeal if there is a disagreement with the audit results, or to claim a tax refund or credit. The extension will also allow the IRS time to complete the audit and provide additional time to process the audit results. It’s not mandatory to agree to extend the statute of limitations date. However, if the taxpayer does not agree, the auditor will be forced to make a determination based upon the information on hand at the time, which may not be favorable.

Tax Audit Help

If you’re concerned you’re at risk of an IRS audit or are looking for some clarity on the IRS statute of limitation for tax auditing, contact Rea & Associates. Our team of Ohio tax professionals can help you determine if you could be facing an audit, and can walk you through the process.

Author: Matt Pottmeyer, CPA (Marietta office)

 

Looking for additional articles about managing your taxes? Check these blog posts out:

What Tax Liabilities Accompany Inherited Real Estate?

What Should You Do After Tax Season?

How Can You Best Prepare For The Upcoming Tax Season?

 

Share Button

What Could Ohio’s Small Business Investor Income Tax Deduction Do For Me?

Thursday, February 27th, 2014

In an effort to become more taxpayer-friendly and reduce the effective tax rate, Ohio enacted the Small Business Investor Income Tax Deduction effective for tax year 2013. This tax deduction benefits many of Ohio’s individual income taxpayers. So how exactly does this deduction work?  (more…)

Share Button

How Can You Best Prepare For The Upcoming Tax Season?

Wednesday, December 4th, 2013

It’s the holiday season, and you know what that means. I’m not talking about shopping or decorating or eating until your heart’s content. I’m talking about cleaning out those filing cabinets and getting ready for tax time! The more prepared and organized you can be as you approach tax season, the smoother a process you can create for yourself or your business.  (more…)

Share Button

Ohio House Passes Municipal Tax Reform Bill – What Does This Mean For You?

Friday, November 15th, 2013

If you’re tired of spending countless hours and money on getting your local taxes in order, then relief may be on its way. The Ohio House of Representatives recently passed the state’s municipal income tax reform bill (Sub House Bill 5), which seeks to standardize and create more efficiency for Ohio’s patchwork municipal tax system.  (more…)

Share Button

Should I Be Worried About the New 3.8 Percent Medicare Surtax?

Thursday, October 10th, 2013

Obamacare is a complex piece of legislation. And in a recent ABC News/Washington Post poll, 62 percent of Americans said they lack information they need to understand Obamacare and how it will impact them.  (more…)

Share Button

Are You Prepared For The Obamacare Deadline On Insurance Marketplace Availability?

Tuesday, September 10th, 2013

The next Obamacare requirement deadline is right around the corner— are you ready? If you’re an employer, the Fair Labor Standards Act (FLSA) requires you to provide copies of one of the following insurance notices to all of your employees:

You must provide these insurance marketplace availability notices to your employees by Oct. 1, 2013.   (more…)

Share Button

How Can You Make Vacant Commercial Space Work for You?

Tuesday, September 3rd, 2013

How could vacant facilities be so lucrative? You can thank the state of Ohio for making that possible. In an effort to encourage the revitalization of vacant business property, Ohio enacted a bill that created the Ohio Vacant Facilities Fund, a program that essentially pays businesses to purchase or lease vacant property. So by now you’re probably wondering how your business can get a piece of this action.  (more…)

Share Button

What are the Consequences of Having Misclassified Workers?

Thursday, August 29th, 2013

My co-worker, Maribeth Wright, recently wrote a blog post titled, “Are You Properly Classifying Your Workers?”. The post explained how to determine whether a worker is an employee or an independent contractor. The article mentioned that this is a hot button issue with the IRS, as well as other government agencies.  In fact, according to The Kiplinger Tax Letter, the IRS is currently in the process of conducting 6,000 random audits, which are focusing on several payroll and fringe benefit issues – one of which is worker misclassification. (more…)

Share Button

So Is It a Tax Credit Or a Tax Deduction?

Wednesday, August 21st, 2013

As you can probably guess if you have seen any courtroom dramas lately, semantics is very important when it comes to the law. One word can totally change the meaning of something, and hence change the thinking or behavior of someone.  Or in the case of tax law, one word can be a “gotcha!” or really change just how useful a provision might be to your business.  Let’s take a look at the small business tax break that is part of the recently passed Ohio budget as an example.  (more…)

Share Button

How Will ACA Federal Exchange Premiums Affect Ohio Small Businesses and Consumers?

Friday, August 16th, 2013

By now, you’ve been hearing a ton about the Affordable Care Act (yes, even from us), and you may be getting tired of all this news. However, it’s critical for you and your business to stay up-to-date on what is changing and what is being decided as it relates to the ACA. The Ohio Department of Insurance (DOI) recently announced in a press release that if you’re an individual consumer who chooses to buy health insurance through the federal government’s insurance exchange, you’ll be paying approximately 41 percent more than what you paid in 2013. And if you’re a business owner, you’ll see somewhere in the ballpark of an 18 percent increase.  (more…)

Share Button

Is it time to review your choice of entity?

Wednesday, July 17th, 2013

When is the last time you talked to your accountant about your business’s entity type? If you’re like most business owners, it’s probably not something you regularly think about. Whether you are taxed at the corporate level as a C-corporation, or have a pass-through entity such as an S-corporation or a limited liability company (LLC), there have been plenty of changes in the tax laws recently to warrant at least considering your entity type. (more…)

Share Button

How Has the Fiscal Cliff Deal Impacted Trusts?

Monday, July 8th, 2013

If you deal with trusts, you may soon feel the effects of new higher tax rates and the Medicare surtax. Unfortunately, the fiscal cliff deal was not kind to trusts, trustees or trust beneficiaries. For 2013, a trust will pay income tax at the highest individual tax rate of 39.6 percent when taxable income is more than $11,950. An individual would not pay at this highest tax rate until taxable income exceeds $400,000. In addition, the new 3.8 percent Medicare surtax on net investment income applies to trusts if taxable income exceeds $11,950.  (more…)

Share Button

Do You Have to Take a 2012 Required Minimum Distribution?

Wednesday, January 23rd, 2013

ACT FAST: Limited Time Offer for RMDs

Thanks to a hot-off-the-presses provision in the new tax law, taxpayers over 70 ½ have a very limited window to address 2012 required minimum distributions (RMDs) from their retirement accounts.

Here’s what happened: an incentive for donating your RMDs directly to charity tax-free expired in 2011, so at the end of 2012 many of you weren’t sure what to do. Some of you may have taken your RMD as usual and used that money toward regular living expenses, but other retirees who typically donate their RMD to charity may have taken a different approach. (more…)

Share Button

What Does the Fiscal Cliff Deal Mean for You and Your Business?

Friday, January 4th, 2013

By now you’ve heard that last minute actions by Congress and the President pulled us off the brink of the fiscal cliff. But, do you know what the American Taxpayer Relief Act means for you and your business?

Overall, the deal is good news for most Americans. While it’s true that the tax rates for 99 percent of taxpayers will not change, everyone who pays payroll taxes will see a slight increase. Here’s what you, as an individual taxpayer, should expect in the year to come: (more…)

Share Button

How Can You Prepare for 2013 Tax Hikes?

Monday, December 10th, 2012

2012 Year-End Tax Tips

2012 is almost over and 2013 tax policy hasn’t yet been set. With so much media coverage about expiring tax cuts, increasing tax rates, and the looming fiscal cliff, CPAs and business owners alike are worried about what the New Year will bring. All we want for Christmas is sound 2013 tax policy!

Currently, President Obama is struggling to rally a squabbling Congress; without agreement, big tax hikes are coming. Unfortunately, this might not happen until the New Year – after the higher rates have kicked in. So, what’s a taxpayer to do? You can write a letter to Santa asking him to make Congress come to an agreement or you can act now to help save money and insulate your business from expected tax hikes. Here’s what you might want to consider with the help of your CPA: (more…)

Share Button

How Does the IRS Treat Property Repair Expenses?

Wednesday, November 21st, 2012

Tax treatment of property repairs has long frustrated business owners and accountants alike. The system has been confusing, hard to follow and seemingly eternally inconsistent. Recent changes to the Internal Revenue Code have streamlined the treatments of property repairs, but not all the changes are as taxpayer-friendly as you may have hoped. (more…)

Share Button

How Can Employers in Ohio, Kentucky, Michigan & Tennessee Get a FICA Tax Refund?

Thursday, October 18th, 2012

Downsizing by companies has been a fact of life over the past several years.  As a part of this process companies may have paid severance payments to employees who were involuntarily terminated due to either: (1) reduction in force (“RIF”) initiatives or (2) plant closings or other similar conditions.

Historically the IRS has argued that such payments are subject to FICA tax withholding in addition to income tax withholding at the time of payment.  In 2002, the Court of Federal Claims in CSX Corp v. U.S. held that severance payments made by CSX were not subject to FICA tax and thus CSX was entitled to refunds of amounts previously withheld.   The IRS appealed and in 2008 the Court of Appeals for the Federal Circuit reversed the Court of Claims holding that such payments were subject to FICA tax. (more…)

Share Button

Should You Maximize Cash Flow or Minimize Income Taxes?

Thursday, September 27th, 2012

“Do I need to buy, and expense, equipment or a vehicle before the end you the year to save income tax?” Every CPA involved in business tax planning hears some variation of that question several times, on an annual basis. Our first question back to you is, “Do you need it?” (more…)

Share Button

How Do You Qualify for Tax Credits and Incentives?

Wednesday, August 8th, 2012

Don’t Leave Money on the Table

If your business is thinking of hiring or training employees or investing in fixed assets, you might qualify for a tax credit.  But, tax credits need to be considered up front.  Once you miss the boat on applying for them, it’s too late, even if you would have been a perfect candidate.

Securing these types of credits and incentives can dramatically improve your return on investment. (more…)

Share Button

A Use Tax Audit Could Cost You Big

Friday, July 27th, 2012

The State of Ohio is looking for additional tax dollars, and they’re not going to give you the benefit of the doubt if your business is audited for use tax. But you may be able to avoid a use tax audit if you qualify for a one-time opportunity to enter into the State of Ohio’s amnesty program. (more…)

Share Button

What do InvestOhio Changes Mean for You?

Thursday, June 28th, 2012

If you’re a tax payer who’s invested in a small business through the InvestOhio program, or if you’re a business owner who’s received a credited investment, you could find yourself impacted by new program changes or fees. (more…)

Share Button

What is the 990 Form?

Monday, June 18th, 2012

Understanding Tax-Exempt Reporting

The IRS Form 990 is an annual reporting return that certain federally tax-exempt organizations must file with the IRS. It provides information on the filing organization’s mission, programs, and finances.

Form 990 has been around for more than 50 years. The first 990 was filed for tax years ending in 1941. This comparatively simple two-page form included only three yes/no questions, an income statement, and a balance sheet (although some line items required attached schedules). For example, individuals paid a salary of $4,000 or more were required to be listed on a schedule showing their name, address and amount paid. Similarly, contributions exceeding $4,000 received from any one person were required to be itemized. (more…)

Share Button

Healthcare Reform and W-2 Reporting

Wednesday, June 6th, 2012

Healthcare Reform’s Impact on Employers

The Affordable Care Act (Healthcare Reform) put into law a number of provisions which impact employers. These provisions are being rolled out slowly over the next few years. One provision that’s new for 2012, regarding W-2 reporting of health insurance costs, applies only to large employers. As this provision is likely to get a lot of attention in 2012, it’s important to know, up front, if your business is required to comply. (more…)

Share Button

Are Tax Credits Available for Hiring Veterans?

Friday, May 25th, 2012

Memorial Day is a great time to think about our veterans and what we can do to show our thanks for all that they’ve done for our country. One way to show your thanks: hire a veteran. All too often, our men and women returning from active duty come home to a weak economy and limited job prospects. But, as an employer, you have the unique ability to help ease their transition to civilian life – by giving them a job and a chance.

Hiring a veteran can be good for the veteran, the community and your business. The VOW to Hire Heroes Act of 2011 provides work opportunity tax credits to businesses that hire certain veterans. (more…)

Share Button

How many kinds of tax amnesty does Ohio have?

Friday, May 11th, 2012
A lot of people call our office looking for information about Ohio tax amnesty.  When we ask them which one they mean, they say, “You mean there’s more than one?!”

Actually, there are two types of Ohio tax amnesty running right now:

  • Ohio General Tax Amnesty
  • Ohio Consumer’s Use Tax Amnesty (more…)
Share Button

When Does Ohio General Tax Amnesty Start?

Tuesday, May 1st, 2012

Ohio’s newest tax amnesty program, General Tax Amnesty, starts today.  General Tax Amnesty gives taxpayers amnesty for previously underreported or unreported taxes (but it is not available for reported but unpaid taxes).    General Tax Amnesty is available for most, but not all, types of Ohio taxes.  A list of the types of taxes which qualify for amnesty can be found in my previous blog post about the topic. (more…)

Share Button

How Do You File for Ohio General Tax Amnesty?

Monday, April 30th, 2012

Ohio’s General Tax Amnesty program kicks off tomorrow, but a lot of individuals and businesses don’t know how to participate in it.  That’s a shame, because it’s been 3 years since the last general amnesty for businesses and 6 years since the last amnesty for individual taxpayers. (more…)

Share Button

Could Ohio Use Tax Amnesty expose vendors who aren’t charging sales tax?

Friday, April 27th, 2012

Over the last year, you’ve heard a lot about Ohio’s Use Tax Education program, which has since become the Use Tax Amnesty program.  Use tax is tax that is owed on goods and purchases for which sales tax should have been charged, but wasn’t.  It’s a great program, assisting Ohio taxpayers in getting current with their Ohio use tax liabilities and waiving penalties and interest.  Ohio’s got another tax amnesty program, General Tax Amnesty (which includes sales tax) starting this week – which makes this a good time to mention a darker side to the Use Tax Amnesty program and how it could impact vendors. (more…)

Share Button

What if you can’t pay your taxes?

Friday, April 13th, 2012

The April 17th tax deadline is looming closer and you know that you’ve got to get your payment in soon.  But, what if you don’t have the cash on hand?  Don’t panic, there are ways to file your taxes and avoid penalties – even if you can’t pay everything that you owe right away. (more…)

Share Button

Is tax amnesty just for use tax?

Thursday, April 5th, 2012

Ohio’s Use Tax Amnesty Program has been big news.  We’ve been happy to help businesses across Ohio take advantage of the Use Tax Amnesty Program, perhaps the most business-friendly tax program in Ohio’s history.  Businesses have been able to take care of outstanding use tax liabilities, open a use tax account, and start themselves off with a clean slate with the Ohio Department of Taxation. (more…)

Share Button

Do you need to report large cash payments to the IRS?

Wednesday, April 4th, 2012

$10,000 in cash is the same as a $10,000 check, right?  Not from the perspective of the IRS.  If your business receives $10,000 in cash from a single transaction (or multiple related transactions), you’re required to report it to the IRS. (more…)

Share Button

Are you having trouble staying current with payroll taxes?

Tuesday, March 27th, 2012

Do you process your own payroll? If so, do you ever find it challenging to stay current on the filing and payment of your payroll taxes? If so you are not alone. In 2008, the Government Accountability Office estimated that 1.6 million businesses are behind on paying their payroll taxes. It estimates that collectively, these businesses owe approximately $58 billion in payroll taxes.  And, the recession may have made those delinquent tax numbers even worse. (more…)

Share Button

Is Ohio Use Tax Amnesty just for companies?

Monday, March 26th, 2012

Everyone’s heard of sales tax.  That extra 7-ish percent that you pay on all of your purchases that goes to the State of Ohio.  But many consumers haven’t heard of use tax.  An accompaniment to sales tax, use tax is a tax on the goods and services that you should have had to pay sales tax on, but didn’t.  Confused? (more…)

Share Button

How can you protect yourself from tax fraud?

Friday, March 16th, 2012

Tax identity theft is an increasingly enormous problem. The IRS has been bombarding us with warnings of identity theft and scams this tax season.

Here’s a summary of some of the latest information you should know. (more…)

Share Button

How do you participate in Ohio’s use tax amnesty program?

Friday, March 9th, 2012

The requirements for participating in the State of Ohio’s use tax amnesty program’s payment program just got a little easier. (more…)

Share Button

How can you get Akron tax amnesty?

Thursday, March 1st, 2012

If you’re an Akron business that collected income taxes from your employees but didn’t pay them to the city, the city is going to come after you if you don’t step forward. (more…)

Share Button

How Can You Track Use Tax in QuickBooks?

Wednesday, February 29th, 2012

Now that you have filed for use tax amnesty and are all set up with an account, how are you going to track it daily going forward? If you use QuickBooks, the answer is as simple as 1-2-3. (more…)

Share Button

How do you follow IRS regulations when gifting a business interest?

Friday, February 17th, 2012

Lately we’ve been surprised by how many people are thinking about filing a gift tax return without a business valuation. We’ve had a few conversations with people who are under the impression that they don’t need to attach a valuation of their business interest to the gift tax return.

Before you file your return without a valuation from a professional, consider the consequences: (more…)

Share Button

When Can You Expect to Receive Your Tax Refund?

Thursday, February 16th, 2012

If you’re expecting a federal tax refund this year, it could be delayed. The agency reports that new anti-fraud measures could slow the refund process by approximately one week. (more…)

Share Button

Could Your Not-for-Profit Organization’s Website have Tax Implications?

Wednesday, February 1st, 2012

Anyone can access your organization’s website – even the IRS. Not only can anyone easily find it through an Internet search, it is now prominently displayed on the first page of your Form 990. As the IRS begins to scrutinize tax-exempt organizations more closely, it is likely examine your organization’s Web advertising and merchandising. (more…)

Share Button

Selling Your Business? Moving Out of State Won’t Save Taxes

Friday, January 20th, 2012

If you’re considering selling your closely-held business, moving out of state may have crossed your mind as a way to avoid paying Ohio personal income tax on your gains. You might be surprised to learn that simply residing outside the State of Ohio won’t protect you from paying Ohio personal income tax on gains from selling your debt or equity in your business. (more…)

Share Button

Filing a 990? Some Tax-Exempt Groups Receive a Deadline Extension

Tuesday, January 17th, 2012

The IRS recently announced an extension until March 30, 2012, for tax-exempt organizations that normally have a January or February return filing deadline. (more…)

Share Button

Surpise! Your Business Might Owe Retroactive Federal Unemployment Taxes

Wednesday, January 11th, 2012

Employers may surprised to find that they owe more federal taxes on employee wages than they expected for 2011 and they could continue to pay more in 2012. Ohio, Michigan, Indiana, Kentucky and Pennsylvania are just a few of the 21 states that accepted a loan from the federal government for unemployment insurance that have outstanding balances on the loan – and as a result are collecting more federal unemployment taxes. (more…)

Share Button

Is Your Business in the Crosshairs? Ohio Commerce Div. Examines Taxpayers for Unclaimed Funds

Tuesday, January 3rd, 2012

Businesses that owe customers funds and are unable to contact them can face substantial penalties from the Ohio Department of Commerce if they don’t properly report these accounts. (more…)

Share Button

Sooner Rather Than Later? Why You Should Do Ohio Use Tax Amnesty Now

Monday, December 19th, 2011

For the past several months, we’ve told you about Ohio’s use tax amnesty program. You may have read that the program will continue through April 1, 2013. So why should you participate in the amnesty program now rather than later? Here are four reasons. (more…)

Share Button

Does Your Nonprofit Qualify for the Health Care Tax Credit?

Wednesday, December 14th, 2011

Wouldn’t your not-for-profit organization love to find an additional $500 to $5000? Nonprofit groups are often surprised to find that they may qualify for the small business healthcare tax credit, which began in 2010. The credit, which applies to both for-profit and nonprofit entities, has already netted several of our clients between $500 and $5000 in refunds for the 2010 tax year. (more…)

Share Button

Ready for a Walk Through Ohio’s Use Tax Amnesty Process?

Monday, November 28th, 2011

If you owe use tax, you currently have an opportunity to save thousands of dollars in use tax, interest and penalties thanks to Ohio’s use tax amnesty program. The program is one of the most taxpayer-friendly programs ever enacted by the State of Ohio. (more…)

Share Button

Guarantor Requirements for Ohio Use Tax Payment Plan Changed

Thursday, November 17th, 2011

The requirements for participating in the State of Ohio’s use tax amnesty program’s payment program just got a little easier. (more…)

Share Button