Archive for the ‘Business Tax’ Category

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…)

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Are You Ready for the InvestOhio Tax Credit? Register for Tax Credit This Week

Tuesday, November 15th, 2011

Ohio taxpayers who invest in a qualifying Ohio small business can qualify for a 10 percent credit against their Ohio income tax if they meet certain requirements  – and they can now apply for the credit. (more…)

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Are You Taking Advantage of This Year’s Federal and State Hiring Tax Credits and Incentives?

Tuesday, October 11th, 2011

State and federal governments have made a number of tax incentives and credits available to employers in 2011 to help stimulate the stagnating economy. In many cases, your company may not see the tax benefit until it files its 2011 taxes, but this delayed benefit should not stop you from considering them. (more…)

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Wrong Worker Classification? IRS Offers Voluntary Settlement

Thursday, October 6th, 2011

Employers who have erroneously treated workers as nonemployees or independent contractors now have an opportunity to get into compliance with the IRS through a low-cost, voluntary reclassification program. (more…)

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Have You Received an IRS Notice? Nine Things to Know

Monday, October 3rd, 2011

The Internal Revenue Service sends millions of letters and notices to taxpayers for a variety of reasons each year. Here are some things to know if you receive one. (more…)

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President Obama’s Jobs Bill: How Would It Impact Your Business?

Monday, September 19th, 2011

Last week, President Obama outlined the American Jobs Act, his jobs creation bill, which he will soon send to Congress. The bill includes a number of tax components which could impact your business, if the legislation passes Congress. Among them: (more…)

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How Can I Apply for Ohio’s Use Tax Amnesty Program?

Tuesday, September 6th, 2011

By now you may have heard that the Ohio Department of Taxation has changed the process for businesses and individuals to voluntarily come forward to declare use tax they owe. A voluntary disclosure program that started earlier this year was suspended when the Ohio legislature approved a new Use Tax Amnesty Program as part of the biennial budget bill. (more…)

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Understand Ohio’s New Use Tax Amnesty Program?

Wednesday, August 31st, 2011

A new use tax amnesty program in Ohio will provide businesses with a one-time opportunity to save thousands of dollars in use tax, interest and penalties. This program was established by the Ohio legislature as part of Ohio’s biennial budget bill that passed in early July 2011.  Ohio’s amnesty program is one of the most taxpayer-friendly programs ever enacted by the State of Ohio. (more…)

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Have Offshore Income? Time is Running Out for Voluntary Disclosure

Friday, August 26th, 2011

If you have undisclosed income through offshore accounts, time is running out to voluntarily disclose it and bring your taxes current. The IRS is winding down a voluntary disclosure program that began February 8 and will end on August 31. (more…)

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Heard about Ohio’s Use Tax Amnesty Program? Learn More at Our Webinar

Tuesday, August 23rd, 2011

Rea & Associates, Inc. will host a webinar detailing Ohio’s use tax amnesty program on Thursday, September 8. The webinar will provide details on what the amnesty program does, how it will work and what steps businesses should take to participate.

What is the Ohio Use Tax Amnesty Program?

The Ohio legislature established Ohio’s use tax amnesty program as part of Ohio’s biennial budget bill that passed in early July 2011. It is an improved version of the voluntary disclosure agreement program (VDA) that has existed for some time. Among other things, the new law eliminates several years of unpaid use tax liabilities for over 300,000 Ohio businesses, by:

  • Shortening the statute of limitations
  • Shortening the look-back period for amnesty participants
  • Abating all penalties and interest for amnesty participants
  • Providing a payment plan for those who cannot pay the entire use tax due

We will provide details about what to do if your business enrolled in the use tax voluntary disclosure program earlier this year. The VDA program is still open for taxpayers who don’t qualify for amnesty. However, guidance from Ohio indicates that all taxpayers qualifying for the amnesty program will need to use this new amnesty program, even if they have a VDA in process.

Ohio’s use tax amnesty program will operate October 1, 2011 through May 1, 2013, and applies to businesses that have not been issued a formal assessment as of early July 2011. We’ll walk webinar participants through Ohio’s use tax amnesty enrollment process step-by-step.

The new amnesty program will provide Ohio businesses with a one-time opportunity to save thousands of dollars in use tax, interest and penalties. It is one of the most taxpayer-friendly programs ever enacted by the State of Ohio. As our government looks for additional revenue, it’s certainly possible that this program could change or be eliminated at a later date – so be sure to take advantage of it now while it is in effect.

To learn more or register for the webinar, click here.

Contact Our Ohio Use Tax Professionals

If you are unsure what to do regarding the Ohio Use Tax Amnesty Program, then contact us now! For additional information please contact Chad Bice, CPA at  740.454.3198, or click here to contact Chad. In a brief consultation he can assess your situation and determine the best way to proceed.
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Less Ohio Tax Centers, No Tax Booklets, But Still Many Resources

Wednesday, August 3rd, 2011

With more Ohio taxpayers now filing state returns electronically, the Ohio Department of Taxation has closed seven regional taxpayer centers and will no longer mail its income tax booklets to taxpayers. (more…)

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Investing in a Small Business? Get InvestOhio Tax Credit

Friday, July 29th, 2011

Ohio taxpayers and pass-through entities can now receive a non-refundable income tax credit for qualifying investments to acquire an equity interest in a small business through a program called InvestOhio. Investors may claim up to $1 million ($2 million for married taxpayers filing jointly) through the new tax credit every two years. Any unused portion of the credit can be carried forward seven years. (more…)

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Confused About Ohio’s New Use Tax Amnesty?

Tuesday, July 19th, 2011

As we’ve mentioned over the past several weeks, Ohio businesses have a one-time opportunity to save thousands of dollars in use tax, interest and penalties thanks to a new use tax amnesty program. This program was recently established by the Ohio legislature as part of Ohio’s biennial budget bill that passed in early July 2011.  Ohio’s amnesty program is one of the most taxpayer-friendly programs ever enacted by the State of Ohio. (more…)

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Ohio’s Use Tax Amnesty Program

Wednesday, July 6th, 2011
Your Ohio business has a one-time opportunity to lessen your use tax liability due to a use tax amnesty measure recently passed as part of Ohio’s budget bill. It’s one of the most taxpayer-friendly laws the State of Ohio has ever enacted. (more…)
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A One-Time Opportunity? Proposed Ohio Use Tax Amnesty Program Explained

Tuesday, June 28th, 2011
Ohio businesses may have a one-time opportunity to lessen their use tax liability due to a use tax amnesty measure in Ohio’s current budget bill. If passed, the law could be one of the most taxpayer-friendly laws ever enacted by the State of Ohio.

Note: Ohio has established its tax amnesty program since this post was originally created. Please click here for the most recent information. (more…)

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Higher Gas Prices Mean Higher Business Mileage Deduction

Friday, June 24th, 2011

In a nod to higher gas prices, the IRS has increased the business mileage rate deduction to 55.5 cents per mile.   The new rate becomes effective July 1 and raises the rate 4.5 cents.   The deduction for medical and moving expenses also increases 4.5 cents to 23.5 cents per mile.  (more…)

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Ohio Use Tax Audits Find Big Liabilities from Small Items

Friday, June 10th, 2011

Note: Ohio has established a tax amnesty program since this post was originally created.

Keeping meticulous records has never been more important than it is today. With today’s governmental agencies looking for additional dollars, they’re not going to give you the benefit of the doubt should your business be audited for use tax. Consider these two recent cases: (more…)

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Live or Do Business in Michigan? Your Tax Laws Are Changing!

Wednesday, June 1st, 2011

In late May, the Michigan legislature voted to make dramatic changes to Michigan’s corporate and individual income tax laws. The measure repeals the Michigan Business Tax and eliminates numerous individual income tax credits, deductions and exemptions as well as changes future income tax rates. (more…)

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Do You Owe Use Tax? See These Commonly Taxed Items

Friday, May 27th, 2011

Use tax is one of those taxes that can sneak up on your business. And unfortunately, the State of Ohio has begun efforts to increase its education and enforcement of use tax. The Ohio Department of Taxation has already identified 380,000 businesses that do not have use tax accounts, and will soon be sending notices to bring them into compliance.

Note: Ohio has established a tax amnesty program since this post was originally created.

(more…)

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Are You a Manufacturer? Purchase Now For More Tax Benefit

Tuesday, May 17th, 2011

If you purchase equipment in 2011, you can take advantage of greater depreciation bonus expensing, but you have to plan ahead. Here are some considerations. (more…)

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Overwithheld FICA taxes in 2011? Here’s how to fix it

Thursday, May 5th, 2011

What is the proper procedure for those who over-withheld Social Security taxes early on in 2011, but failed to make the proper adjustment prior to the March 31 filing deadline? How should the first quarter 2011 Form 941 be filed?  Should adjustments be made as soon as possible?  I am unable to find any help on the government sites. (more…)

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Have Questions About Ohio Use Tax? See Our Resource Center

Wednesday, April 20th, 2011

As we’ve been telling you over the past few weeks, the state of Ohio is about to step up its efforts to enforce its use tax law. To help businesses better understand and comply with Ohio’s use tax law, Rea & Associates recently created the Ohio Use Tax Resource Center, an online resource center. As far as we know, it’s the only resource center of its kind available to Ohio businesses.

Note: Ohio has established a tax amnesty program since this post was originally created.

(more…)

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What’s The Impact If I Don’t Comply With Ohio Use Tax?

Monday, April 4th, 2011

For the past few weeks. we’ve been talking about the state of Ohio’s stepped up enforcement of its use tax law. So what happens if you don’t comply?

(more…)

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Why Should I Enter An Ohio Use Tax VDA Now?

Tuesday, March 29th, 2011

If your company doesn’t currently pay Ohio use tax, you will soon.

The Ohio Department of Taxation is stepping up its use tax enforcement. The department is conducting a use tax education program (UTEP) and will begin notifying businesses about their use tax liability this summer.

Note: Ohio has established a tax amnesty program since this post was originally created.

(more…)

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Doing Your Own Payroll? Deadline to Reimburse Social Security Overwithholding Nears

Friday, March 25th, 2011

If your company does its own payroll, make sure you have reimbursed any 2011 Social Security taxes that may have been overwithheld to your employees by March 31. (more…)

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What Does Ohio Use Tax Mean to You? Learn More in this Webinar

Tuesday, March 22nd, 2011

Ohio’s Department of Taxation is getting serious about its enforcement of the state’s use tax law – and the longer you wait to comply, the more it will cost you.

Note: Ohio has established a tax amnesty program since this post was originally created.

(more…)

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Worried about Ohio Use Tax? If Not, You Should Be

Thursday, March 17th, 2011

Ohio’s Department of Taxation is getting serious about its enforcement of the state’s use tax law. Use tax is a tax that wasn’t paid, but should have been, on taxable property or services your business purchased. It most often occurs when a business purchases goods in-state, out-of-state or over the Internet, and the retailer does not collect Ohio sales tax.

Note: Ohio has established a tax amnesty program since this post was originally created.

(more…)

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Does Ohio’s tax code match the federal code?

Tuesday, March 15th, 2011

Governor Kasich recently signed into law House Bill 58.  This new law updates the version of the Internal Revenue Code that Ohio uses to include the end-of-the-year changes that the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 made to federal law.  (more…)

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Are You Paying Ohio Use Tax?

Wednesday, March 2nd, 2011

Ohio’s Department of Taxation is stepping up efforts to enforce its use tax law in 2011. If your company does not have a use tax account, it’s no longer a question of if, but when, the department will contact you. (more…)

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If my Michigan company sells goods in North Carolina, do I file a NC return?

Friday, February 25th, 2011

A business owner asks: If I have an LLC in Michigan but sell my product in North Carolina, do I have to file a tax return in North Carolina? If so, what type?

That’s a great question, in fact it touches on one of the questions in state and local taxation today – do I have nexus with a state and if so, what kind of return do I need to file there. (more…)

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How can you avoid a tax audit?

Thursday, February 10th, 2011

There really is no way to totally prevent an IRS audit of your business income tax return. However, there are things you can do to lessen the chances. Here are a few tips published recently by the Wall Street Journal. (more…)

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Will Ohio’s Tax Code Match Federal Depreciation Treatment?

Friday, February 4th, 2011

If your business files Ohio taxes, you’ll soon receive similar tax breaks to the recent federal tax code, according to Ohio Tax Commissioner, Richard Levin. (more…)

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Doing business in Michigan? You may have to file a tax return

Monday, January 24th, 2011

Single member limited liability companies and qualified subsidiaries may have a new filing requirement in Michigan. The Michigan Department of Treasury recently issued a notice to taxpayers stating that entities and persons disregarded for federal tax purposes are required to file a Michigan business tax return if they meeting the filing threshold. (more…)

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What do the tax extensions mean to my business?

Monday, December 20th, 2010

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (HR 4853), signed by President Obama on Friday, December 17, 2010, contains several provisions that will impact businesses. Below is a quick roundup of the provisions for businesses. Most of the provisions below are scheduled to sunset on 12/31/20112, unless otherwise noted. (more…)

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Can the IRS now audit my QuickBooks files?

Wednesday, November 10th, 2010

In your next IRS audit, don’t be surprised if the agent requests a copy of your QuickBooks files instead of your printed general ledger. The agency has purchased 1,100 user license agreements for the software program and recently completed training its agents on the software. The IRS can also accept Peachtree accounting software files. (more…)

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What are the long-term changes in the healthcare legislation?

Wednesday, October 20th, 2010

Looking into the Future: A Summary of Healthcare Law Changes for 2013 and Beyond

The Patient Protection and Affordable Care Act and the related Health Care and Education Reconciliation Act (which are collectively referred to as the healthcare legislation) were signed into law in March. The new laws contain a large number of tax changes. Some have nothing to do with healthcare, some won’t kick in for several years, some are effective right now, and some are even retroactively effective. (more…)

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How will the Small Business Lending Act impact my business?

Tuesday, October 5th, 2010

Small Business Lending Funding Act Establishes Four Lending Programs

When President Obama signed into law last week the Small Business Jobs and Credit Act of 2010, the new law created a $30 billion lending fund that will allow the U.S. Department of Treasury to invest in small to medium-sized financial institutions that will in turn be encouraged to increase small business lending. Here is a breakdown of the four lending initiatives established by the law.

Small Business Lending Fund. Administered by the U.S. Treasury, the Small Business Lending Fund will award a capital investment to eligible banks with assets under $10 billion. The banks can receive up to a small percentage of their risk-weighted assets, and receive essentially an incentive loan that must be repaid within 10 years. The banks must lend additional funds to small businesses as well as appropriate advertising. The fund also includes a pilot program that will allow non-profit intermediaries to make loans to small businesses at 1 percent interest over a 20-year term. The non-profit intermediaries can loan up to $200,000 per small business through the pilot program.

State Small Business Credit Initiative. A seven-year State Small Business Credit Initiative will be administered by the U.S. Treasury. Treasury will allocate federal funds to participating states with capital access programs. States can qualify for the funds by demonstrating that their capital access programs meet performance and eligibility requirements, including access to capital for businesses with less than 500 employees, minority-owned businesses and those in underserved communities. New programs can also qualify for the federal funds.

Small Business Early Stage Investment Program. The new law amends the Small Business Investment Act of 1958 to establish an early-stage investment program to provide equity investment financing for early-stage small businesses. The program will be managed by the administrator of the Small Business Administration.

Small Business Borrower Assistance Program. Also as part of the Small Business Jobs and Credit Act of 2010, the Small Business Administration is directed to implement an assistance program that provides payments to lenders of principle and interest on qualifying guaranteed business loans of up to $300,000. Every borrower receiving a qualifying small business loan will be automatically enrolled in the program unless the borrower opts out. The SBA’s administrator is required to commit an amount to each borrower equal to 6 percent of the principle disbursed amount of the borrower’s qualifying loan.

The Small Business Jobs and Credit Act of 2010 also contains roughly $12 million in tax breaks and incentives. We will be reporting on the various tax implications of the new law in the weeks to come.

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Are Federal Payroll Tax Deposits Going Paperless?

Friday, October 1st, 2010

Regulations recently proposed by the IRS will eliminate the ability to make payroll tax deposits using paper coupons. The proposed rule changes are meant to coincide with the Treasury’s move to no longer maintain the paper coupon system after December 31, 2010. (more…)

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Should I Worry About Use Tax?

Friday, September 3rd, 2010

In a word, yes. The State of Ohio plans to initiate a campaign to make sure Ohio taxpayers not only have use tax accounts, but are also reporting transactions that involve use tax. This initiative is set to begin within the next six months. Here is what you need to know to be in compliance: (more…)

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How Does the Wall Street Reform Act Impact Me and My Business?

Wednesday, August 18th, 2010

When President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law last month, the legislative and executive branches of the U.S. government enacted the most sweeping changes in financial reform legislation since the 1930s. The new law will impact both businesses and individuals. Below are a few of the highlights. (more…)

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Could your business benefit from location-based sales?

Wednesday, August 11th, 2010

Consumers are depending more and more on mobile devices – so it may make sense to use this technology in your promotional strategy. (more…)

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Is it time for your six month financial check-up?

Friday, August 6th, 2010

It’s hard to believe, but 2010 is already half-way over.  How are you doing at hitting your financial goals for the year, and are you taking advantage of the tax benefits this year is bringing? It’s time to consider a six-month financial check-up. Here are some items to consider for the remainder of the year. (more…)

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Can Changing My Business Entity Improve Tax Treatment?

Wednesday, July 21st, 2010

The expected increase in individual income tax rates next year has some small business owners wondering if now is the time to change their entity structures. Which structure is best for your business is a complex question – and the answer is different for everyone. The following are issues to consider if you are facing this question. (more…)

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Is there a tax credit for therapeutic products and technology?

Monday, July 12th, 2010

Yes, there is. If your small company develops products or technology that diagnose, treat or prevent diseases, you may be eligible to apply for tax credits or grants. (more…)

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Can making your building green save on taxes?

Friday, June 18th, 2010

When you upgrade your building for energy efficiency, you can save some cold, hard cash. A major incentive has been in place for several years for building owners who upgrade their systems – whether the building is new or used. (more…)

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Can My Organization Earn A Tax Credit For Paying Employee Health Insurance Premiums?

Wednesday, June 2nd, 2010

If your small business or not-for-profit pays at least half the cost of single coverage for employees, it could be eligible for a tax credit of up to 35 percent of the premiums it pays in 2010. (more…)

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