Archive for the ‘Tax’ Category

What Should You Do After Tax Season?

Monday, April 14th, 2014

Now that most of you have either filed your 2013 tax return or at least gathered your tax information and sent it off to your CPA, I know what you’re thinking. Phew! I’m done with my taxes for yet another year! But guess what? No, you aren’t!

Now is the time to start planning for next year. The sooner you plan ahead and strategize for next year’s tax season, the better off you may be. Not happy with the amount of taxes that you had to pay this past year? Not happy that you seem to work harder and harder only to pay more in taxes and get further behind? Start planning now for future tax seasons!

Tax Planning For the Future

Here are a few things you can start working on now to help create a better tax experience for yourself next year:

  • Develop an investment strategy. Most people don’t understand the affect this can have on your tax return. You can control when and how to take gains from your investments. You should work on developing a long-term investment strategy with your investment advisor.
  • Create a plan to sell property. Are you considering selling property sometime in the future? Did you know that there are ways to minimize taxes that need to be paid on the sale of property? This isn’t done by calling your financial advisor and letting them know you just sold some property. Get them involved now and discuss that you plan to sell some property in three to five years. Your financial advisor can help you structure the property sale and ultimately help you control the tax effect.
  • Establish a business plan. If you’re thinking about starting a new business, work with your financial advisor now to determine what tax savings you may be able to realize. Depending on the type of entity there could be significant tax savings down the road. 

Tax Planning Help

While there’s no single quick fix to solving all of your business and tax woes, planning now will certainly help you when tax season rolls around next year – and the year after that and so on. If you need help with your tax planning, contact Rea & Associates. Our team of Ohio tax planning professionals can help you develop a tax strategy that best suits you for years to come.

Author: Dave McCarthy, CPA, CSEP (Medina office)

 

Want to read some more articles related to tax planning? Check these posts out?

What Is The Difference Between Fixed Asset Expensing And Capitalization?

So Is It a Tax Credit Or a Tax Deduction?

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

Where’s Your Tax Refund?

Friday, March 28th, 2014

Do you find yourself checking your mailbox every day? Or maybe you’re watching your bank account to see if your account balance went up? It’s the time of year that many Americans are waiting with bated breath for their coveted tax refund. If you haven’t already, you’re probably getting ready to file your tax returns in the next few weeks, and you may be wondering when you can expect to receive your refund or if there’s anything you can do to speed it up. Well, wonder no more and read on!

Speeding Up Your 2013 Tax Refund

The best way to receive your tax refund sooner than later is to file your tax return electronically and to select “direct deposit” as the delivery method for your refund. Electronic filing is faster, more accurate, and more secure than paper-filing your return. Likewise, direct deposit is faster and more secure than receiving a paper check refund. There’s no chance of your refund check being lost or stolen if it’s electronically deposited directly into your bank account. Please note that calling the IRS will not speed up your refund.

When Will You Receive Your Federal Tax Refund?

If you’ve already submitted your 2013 tax return and are curious where your refund is at, you can check the status of your federal tax refund using the IRS program, “Where’s My Refund?” This is available at http://www.irs.gov/Refunds, or you can use the mobile app, IRS2GO. If you file your return electronically, you can check the status 24 hours after your return was electronically submitted. If you file a paper return, you can check the status four weeks after your return is mailed.

In order to use “Where’s My Refund?”, you’ll need the primary taxpayer’s social security number, the filing status, and the exact amount of the refund. Your return will be in one of three stages:  Return Received, Refund Approved, or Refund Sent. While using “Where’s My Refund?” will not speed up the waiting time, it’s a convenient way to check the status of your refund.

Got Tax Questions?

If you have tax-related questions, contact Rea & Associates. Our team of Ohio tax professionals would be happy to answer any questions you may have.

Author: Cathy Troyer, CPA (New Philadelphia office)

 

Looking for other tax-related articles? Check these out:

What Tax Benefits Exist When You Donate to Charity?

What Tax Liabilities Accompany Inherited Real Estate?

What’s The Relationship Between Side-Businesses And Tax Deductions?

 

What Tax Benefits Exist When You Donate to Charity?

Tuesday, March 18th, 2014

We’re three months into 2014, and you may be thinking about what charitable donations you’d like to make this year. If you’re planning to make a donation to a qualified 501(c)(3) non-profit organization, make sure to look at your investment portfolio before you write a check.  (more…)

What Is The Petroleum Activities Tax and How Does It Affect My Business?

Monday, March 10th, 2014

Remember the CAT—the Commercial Activity Tax? Well, there’s another acronym you’ll need to get familiar with – the PAT, the Petroleum Activities Tax. Starting July 1, any receipts from the sale of motor fuel will be excluded from Commercial Activity Tax (CAT) receipts. That means if you’re a supplier of motor fuel, you’ll have to pay the replacement Petroleum Activities Tax (PAT), measured by your gross receipts for first sales of motor fuel outside of the distribution system in Ohio.  (more…)

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…)

What Tax Liabilities Accompany Inherited Real Estate?

Wednesday, February 26th, 2014

So you just inherited some real estate. You’re probably now wondering – is this a blessing or a curse? From the tax perspective, of course. And that’s a good question to ask. Just because you inherit something doesn’t mean that you’re free and clear of any potential tax liabilities. Depending on how you use the property and if you sell it will determine if you have a taxable situation. So here’s what you should know about taxes and inherited real estate.  (more…)

What Do The Recent IRS Final Regulations for Obamacare Entail?

Wednesday, February 12th, 2014

You’ve probably never received a Valentine’s Day gift from the IRS, but this year you did! On Monday, the IRS issued final regulations on Obamacare’s employer shared responsibility payment provision, otherwise known as the “pay or play” provision. Like many things the IRS announces, there’s quite a bit a fine print. This time is no exception. Check out some of the highlights of the final regulations and learn what you need to know moving forward.  (more…)

What’s The Relationship Between Side-Businesses And Tax Deductions?

Friday, January 31st, 2014

Do you or someone you know enjoy knitting or jewelry-making? Or perhaps you do résumé writing or other professional consulting work? If you do any of these as a side business and make a profit, did you know that you can deduct expenses that are ordinary and necessary to your business? If your side business expenses exceed the income for your business, then the loss can be deducted against other income. However, if your loss is from a business that’s not making a profit, then you’re not allowed to deduct your loss against other income.  (more…)

Will You Be Paying With Cash, Credit Or Bitcoins?

Wednesday, January 29th, 2014

Bitcoin has been all over the news lately, and you may be asking – what exactly is it? Bitcoin is a virtual currency. Only existing online, it’s powered by its users and not backed by any government agency. This new currency offers anonymity, convenience, helps facilitate international commerce and can fluctuate in value. Check out www.bitcoin.org for more information and frequently asked questions.  (more…)

What Are 6 Things You Can Do To Improve The Health Of Your Business in 2014?

Monday, December 30th, 2013

Are you out of breath from the impact the economy had on your business during the last several years? Is it time to develop some New Year’s resolutions that will make a difference in your business? Adopting a new diet, jumping on the treadmill or committing to run a half marathon are common items on the “personal” resolution menu. However, is it time to add energy and resources to your resolutions in order to improve the health of your business?  (more…)

Obamacare Exchange Enrollment Deadline Extended One Day

Monday, December 23rd, 2013

Things are continually changing on the Obamacare front. I wanted to provide you with a brief update since my blog post from last Friday. In last Friday’s post, I explained that today (Dec. 23, 2013) was the last day for individuals to sign-up for insurance through the federal government (“the Exchange”) that would take effect on Jan. 1, 2014. However, the Obama administration announced today that it is extending the deadline by one day. If you’re interested in obtaining health insurance through the Exchange, you can now enroll through tomorrow, Tuesday, Dec. 24. For more information on the deadline extension, view this recent CNNMoney article(more…)

Do I Need To Have Health Care Coverage Before Jan. 1, 2014?

Friday, December 20th, 2013

Christmas is upon us, but you know what else is? The federal deadline to pay for exchange insurance that’s effective Jan. 1, 2014. Yes, that’s right. If you want health insurance through the federal government, you’ve got until Monday, Dec. 23, 2013, to apply and pay for it. Some insurance companies have delayed this deadline to Jan. 10, 2014 – but not all. So don’t wait – make sure you’re covered today.  (more…)

How Can Manufacturers Deal With Competition?

Friday, December 20th, 2013

Contrary to popular belief, the manufacturing industry is alive and well. For years, we’ve heard that it’s a “dying” industry. But that’s just not so. In fact, many manufacturers are enjoying higher profitability than 2008 pre-recession levels. However, if your manufacturing business is still young or you’ve hit a rough patch and are starting to see a downward shift in your sales and employment, there’s assistance that you may qualify for to help you get out the rut you’re in.

(more…)

Peeling Back The Onion: Answering 3 Popular Obamacare Questions

Thursday, December 12th, 2013

As Obamacare becomes more and more of a reality to individuals, I’m being asked lots of questions. In the past few weeks, I received three questions that I’m finding are common concerns among the people I’ve talked with. I wanted to share these questions and provide some insight into each. So let me peel back the Obamacare “onion” and help you better understand how you may be impacted or what options you have available to you.  (more…)

Will There Be Changes To The Small Business Health Care Credit?

Friday, December 6th, 2013

Has your business enjoyed the small business health care credit for the last few years? Well, get ready because changes are coming in 2014.  (more…)

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…)

How Can Franchising Work For You?

Monday, November 25th, 2013

Purchasing a franchise might seem like a very daunting process, enough so that you might not even consider it a possibility for you. However, have you ever considered what advantages buying a franchise might bring to you? Before jumping ahead to the benefits, let’s first look at what exactly franchising is.  (more…)

Why Should Your Digital Assets Be Part of Your Estate Plan?

Thursday, November 21st, 2013

Just when you think your estate plan is complete, is it really? Your will gives your personal property to your daughter, Suzie. Great, Suzie gets your laptop and your smartphone. But what happens to your online accounts, emails, Facebook account, iTunes account, that special digital crown won in an online game, and digital pictures stored in the “cloud”? Does Suzie know where to find your usernames or passwords? Even if she does, does she have a right to access the accounts?  (more…)

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…)

Health Insurance Options: SHOP, Drop, Roll, or Self-insure?

Thursday, November 14th, 2013

You may recall the popular saying, “Stop, Drop and Roll.” This is what we were taught in case a piece of our clothing or hair caught on fire. This same clever saying can (in a roundabout way) be applied to the list of options that businesses now have because of Obamacare. SHOP, Drop, Roll or Self-insure.  (more…)

Why Did The IRS Delay The Start Of The 2014 Tax Season?

Wednesday, November 6th, 2013

Recently the Internal Revenue Service (IRS) announced that due to the 16-day government shutdown, they will begin processing tax returns one- to two-weeks later than planned. The original start date was Jan. 21, 2014. With this delay, the tax season could begin no earlier than Jan. 28 or as late as Feb. 4. The IRS will not process paper returns until the official start date, even if they are received before the official start date.  (more…)

How Can Contractors Ensure They Have Sufficient Cash Flow?

Monday, October 28th, 2013
As a construction contractor, income taxes are probably the furthest thing from your mind. And you’re probably not too excited about writing big checks to the respective taxing authorities. (more…)

What Is The Difference Between Fixed Asset Expensing And Capitalization?

Thursday, October 17th, 2013

If you’re about to acquire, produce or improve real or tangible personal property, and then turn around and use the property in a trade of business for income, stop right there. Under the Internal Revenue Code, you’re required to capitalize certain amounts of money you invested into the property.  (more…)

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…)

What’s The IRS Up To During The Government Shutdown?

Tuesday, October 1st, 2013

We’ve read for weeks that a government shutdown was possible, but at 12 a.m. this morning, it happened. It has been 17 years since the last government shutdown, and you, along with the rest of the American people, are probably wondering how the shutdown will impact their lives. Fortunately, last week the Internal Revenue Service published “FY 2014 Shutdown Contingency Plan (During Lapsed Appropriations) Non-Filing Season,” a set of guidelines that explains what will go on at the IRS during a shutdown.  (more…)

What Should I Do If I Recently Received An IRS Notice About Form 5500 or 8955-SSA?

Wednesday, September 25th, 2013

No one likes to hear from the IRS. But for the roughly 4,000 plan sponsors who have recently received erroneous notices, it’s extremely frustrating. Chances are if you have received a notice telling you that the IRS is assessing a penalty due to your “filing a late or incomplete” Form 5500 or 8955-SSA, it may very well be a mistake.  (more…)

How Does Worker Classification Impact Companies In The Oil & Gas Industry?

Thursday, September 12th, 2013

As an employer in the oil and gas industry, historically you may have found it better for your company to hire independent contractors rather than employees. You probably paid your contractors flat day rates rather than an hourly wage. But now these practices are being challenged and companies of all sizes — including oil and gas companies — are being audited by the U.S. Department of Labor (DOL).  (more…)

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…)

How Does DOMA Affect Me?

Friday, September 6th, 2013

This article discusses the changes to individual tax payers that are in a legal same-sex marriage.

Earlier this year the Supreme Court declared that section 3 of the Defense of Marriage Act (DOMA) was unconstitutional.  Section 3 of DOMA required that same-sex spouses are to be treated as unmarried for purpose of federal law.  It is now recognized that same-sex couples that were legally married in states that recognize same-sex marriages, will be treated as married for federal tax purposes, even if the state they are currently residing in does not allow same-sex marriages.  The same is true for couples married legally in a foreign jurisdiction.  This now allows for same-sex married couples to file with the status of “married filing jointly” (MFJ) or “married filing separately” (MFS). (more…)

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…)

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…)

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…)

Are You Properly Classifying Your Workers?

Wednesday, August 7th, 2013

You may employ hundreds, if not thousands of employees. Or maybe you only employ three to five. Regardless of the number of employees you have, the way you classify your workers is important to the federal government. Worker status is a hot button issue at the Internal Revenue Service (IRS), and Ohio Job and Family Services, Ohio Bureau of Workers’ Compensation and the U.S. Department of Labor are also challenging the way businesses report their payments to “independent contractors.”  (more…)

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

Tuesday, July 30th, 2013

What if someone told you that you had an opportunity to claim thousands of dollars? You’d jump on it, right? Well, guess what? If you’re a business owner, you do have this opportunity!

Did you know there are an estimated 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 credits and incentives to which they are entitled.
(more…)

Some PCORI Fees Due This Wednesday – Do You Owe?

Monday, July 29th, 2013

And so it continues… the next deadline in a long list of fee deadlines for the Affordable Healthcare Act is fast approaching. If you are a business that is self-insured for health care (this includes Health Reimbursement Arrangements/Accounts), and if you had a plan year end on or between Oct. 1, 2012 and Dec. 31, 2012, then you have a new fee to pay by this Wednesday, July 31, 2013. Calendar year plans are included in this because their end date would have been Dec. 31, 2012.
(more…)

Need Some Cash Now?

Friday, July 19th, 2013

Are you in the market for a new home? Or maybe you’re looking to purchase a new car for your daughter or son? Don’t have enough cash for a down payment? No problem. There’s a nice workaround that can provide short-term relief for your immediate need.  (more…)

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…)

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…)

New Tax on Shale-Related Rent Monies and Landowner Royalty Payments

Wednesday, May 22nd, 2013

If you receive shale-related advance rent monies or landowner royalty payments from an existing well, you should be aware of a potential increase in tax that may hit in 2013. With the passing of the Patient Protection Act, a new tax provision took effect in 2013 – and it could impact the amount of tax you need to pay when you receive your royalty and rent payments. (more…)

What Happens if My 401(k) Plan is Out of Compliance with an IRS or DOL Rule?

Wednesday, May 22nd, 2013

With all of the rules in the business world, it sometimes can be difficult to know and understand all of the rules we need to follow – there are a lot of them. So what happens if you find yourself in an unintended situation where your business’s 401(k) plan is out of compliance? Simply put, a plan out of compliance with Internal Revenue Service (IRS) or Department of Labor (DOL) rules is subject to disqualification. But what does that mean? It is very important that you fix any compliance issues when they are identified – whether they are document-related issues, government reporting issues (5500) or plan operational issues. (more…)

Is the Ohio Incumbent Workforce Training Voucher Program Coming Back Again?

Friday, March 29th, 2013

A few months ago, businesses across the state were racing to participate in the Ohio Incumbent Workforce Training Voucher Program. The program, which offered $20 million in cash to businesses that provide certain types of employee training, seemed almost too good to be true. It was true, but it was too good to last. The whole $20 million was initially claimed the first day of the program!

If you’ve got expensive training costs and didn’t get a piece of the $20 million last time, don’t fret.  Ohio will be rolling out another round of the Ohio Incumbent Workforce Training Voucher Program – this time with a $30 million pie! This second round of the program will provide funds for trainings that will take place between July 1, 2013, and June 31, 2014. The official kick-off date for the applications has not yet been announced, but state officials hope to go live in May or June. (more…)

How Does Getting Divorced Impact Your Taxes?

Friday, March 15th, 2013

Like so many Hollywood couples these days, maybe you are finding yourself a newly divorced person. With all the legal shenanigans that can happen during a divorce proceeding, have you taken the time to consider some of the more practical matters related to your finances? There are several tax-related items and helpful advice tidbits to be discovered after a change in your marital status. (more…)

How Do You Make Your Charitable Contributions Count?

Tuesday, March 5th, 2013

Tax deductions aren’t the only reason that you make charitable contributions – but they’re a nice perk!  Unfortunately, the IRS has been cracking down on the documentation required for charitable contribution deductions.  Here’s what you need to know to make sure that your charitable contributions get you the deductions that you deserve. (more…)

Did Your Company Miss Out on the Ohio Incumbent Workforce Training Voucher Program?

Tuesday, February 12th, 2013

Don’t Give Up Yet!

Applications for Ohio’s Incumbent Workforce Training Voucher Program were accepted on Monday, January 7, 2013. By the end of the day, Ohio officials said they received applications with requests exceeding the $20 million allotted for fiscal 2013. Funds were awarded on a first-come, first-served basis, so if you weren’t one of the first, you might have missed out on this opportunity for your company. But don’t give up yet…

There will be another opportunity for you to secure your piece of the pie as a second round of applications, for fiscal 2014, will be accepted after June 30 for an additional $30 million. While the exact date that applications will be accepted are not yet known, we do know what the applications will look like, how the application process will work and what information you will need to have ready to submit your application.

Why wait? Begin pulling your information together now so that you will be ready the second time around. (more…)

How Do You Keep Your Tax Documents Organized?

Friday, January 25th, 2013

It’s 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 and read your favorite accounting blog every day (hey, it was worth a shot). But if you resolved to be more organized in 2013, don’t give up on it just yet – at least not until April 15.

This tax filing season carries extra challenges, thanks to the late passage of the “Fiscal Cliff” tax laws. The IRS isn’t going to be able to process tax returns until around February 1, which gives us a much smaller window of opportunity.

Follow these tips to stay organized this tax season and hopefully experience a few fewer headaches with Uncle Sam’s name on them. (more…)

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…)

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…)

Does Ohio Have an Estate Tax?

Friday, December 21st, 2012

Recently, Ohio eliminated the Ohio estate tax.  The estates of individuals who die after January 1, 2013 will not be subject to the Ohio estate tax. (more…)

What Difference Does a Day Make?

Wednesday, December 19th, 2012

How do you plan for an uncertain future?  Very carefully.  That’s the advice that we’re giving to our clients as they to prepare for the tax law changes that are coming on January 1, 2013.

We can’t see into the future, but it looks like rates will go up, on lots of different types of income, in 2013.  Unless changes happen, your rates will be significantly higher on January 1 than on December 31.  What difference does a day make?  Perhaps as much as a 29.4 percentage point jump in your taxes. (more…)

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…)

How Do You Change Your State of Domicile?

Friday, December 7th, 2012

Trying to plug yawning budget deficits, states are fighting a never ending battle for revenue. One common weapon in this battle: the increased enforcement of tax laws. Areas that were overlooked in the past now face heightened scrutiny. One area under the microscope: analyzing individuals’ domiciles. The purpose of this analysis: to find more people to tax. (more…)

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…)

How Do You Prepare for Uncertain 2013 Tax Rates?

Wednesday, November 7th, 2012

As we approach the end of 2012, there is much uncertainty regarding tax legislation. Tax rates, exemptions, credits and deductions are likely to change for both businesses and individuals, but no one yet knows which of the predicted changes will really come to pass. How do you prepare for this uncertain future? Take advantage of the 2012 rates while you still can and plan for contingencies in 2013 and beyond. (more…)

How Could Ohio’s Election Impact Severance Tax?

Monday, November 5th, 2012

Every four years, national politics takes center stage here in Ohio. You can’t turn on the radio or t.v. without being inundated with presidential, senatorial or congressional election ads. But there are issues a bit closer to home that are equally important to us.

Of the many state and local issues getting lost in the commotion is one that can have a big impact on Ohio’s oil and gas industry – Governor Kasich‘s proposed severance tax change. Initially introduced in March, this is not a new issue. It was tabled in the lead up to the election and is likely to be reconsidered once the Ohio House and Senate return for their next session. (more…)

What Accounting Methods Do Contractors Use?

Thursday, November 1st, 2012

Usually when you hear the words “accounting method,” you think of generally accepted accounting principles (GAAP). However, you should not overlook the impact that accounting methods have in the tax world, especially for construction contractors. (more…)

What are the Tax Rules for Gamblers?

Thursday, October 25th, 2012

With the new Cleveland Horeshoe Casino, gaming is becoming big business in Ohio.  From occasional slot machine players to poker pros, Ohioans are experiencing gambling and all the wins and losses that come with it.  While residents of Las Vegas may already be familiar with the IRS’s tax treatment of gambling wins and losses, Ohio gamers might not be  The IRS has special rules for gaming income and losses, which I’ll describe below, but the general rule is this: gambling winnings are taxable. (more…)

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…)

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…)

You Got a Tax Notice… Now What?!

Wednesday, September 19th, 2012

You know the feeling well… you’re just going about your business, walking out to the mailbox to pick up the daily mail. For some reason, the pile feels a bit heavier today. And as you sort through the junk and the magazines and the bills, you find that you’ve received a little love note in the form of a tax notice from the Internal Revenue Service (IRS). No wonder the mail is so heavy today… the IRS is looking for more of your well-earned money. (more…)

What Does the Medicate Surtax Mean for Employers?

Friday, September 14th, 2012

Even though the Supreme Court’s decision was a few months ago at this point, healthcare reform is still getting a lot of coverage in the media.  Individuals and business owners are still trying to get their hands around what it will mean for them and what they’ll have to do to comply with the new law.

Most discussions about how healthcare reform will impact taxes have centered on the so called “Individual Mandate.”  But, health care reform will lead to other tax changes, too.  One such tax chance is the addition of a .9% Medicare tax surcharge. (more…)

Is It Fair to Require Online Retailers to Collect and Remit State Sales Tax?

Wednesday, September 12th, 2012

Recently we’ve been hearing calls for everyone to pay their fair share of taxes. One regular target: online retailers, who are being criticized for failing to collect and remit sales tax. But, like many questions of tax policy, this one is more complicated than headlines might lead you to believe. (more…)

How Do You Value Property for an Estate in Ohio?

Wednesday, September 5th, 2012

Recently, a reader shared with us that she inherited property in both Ohio and Florida. She had a pretty specific question related to the value of the Ohio property. That question made me think there may be more people who don’t know how to handle newly inherited property for estate tax purposes. Hence, I’m going to provide some general estate information I hope will help.

According to Ohio law, “the value of any property included in the gross estate shall be the price at which such property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.”

Now, let me put that in simpler terms. If there is real estate in an estate, then you need to claim its fair value. That value is the amount the property would sell for assuming both the buyer and seller know about the property and neither was pressured to either buy or sell. (more…)

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…)

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…)

Do You Need to Report Health Care Benefits on W-2s?

Thursday, July 26th, 2012

“Obama Care is terrible!”  “Health care reform is great!”  Depending on your political stripes, you may have differing views on the Affordable Care Act.  Regardless of whether you love it or hate it, health care reform will impact your business in the years to come.  (more…)

Now is the Time to Gift to Your Family

Thursday, July 19th, 2012

Expiring Provisions Will Cost you Big

There is a gentleman I know who started a successful business and has become a wealthy man. He always tells me that he wants to provide for  his children and grandchildren – however, he needs to wait to make sure his wife will have the money the need to live comfortably for the foreseeable future. It’s something he adds to his to-do list for the fantasy “next year.”

It’s respectable that he’s worried about the economy, and the impact it may have on his personal lifestyle. However, Uncle Sam is taking the luxury of waiting away from many people. If you’ve ever considered making a gift, there may not ever be a more opportune time. (more…)

How Could Ohio Medicaid Expansion Impact Your Business?

Wednesday, July 11th, 2012

Recently, we told you about some of the immediate tax consequences that you, as a business owner, can expect because of the Supreme Court’s decision on health care reform.  If you read How Does the Health Care Reform Decision Impact Your Business, you know that your healthcare costs and Medicare taxes are likely go up.  But, did you know that you might need to pay more for Medicaid, too? (more…)

How Does the Health Care Reform Decision Impact Your Business?

Friday, June 29th, 2012

By now you’ve probably seen the headlines that the Supreme Court announced its decision on health care reform and are wondering what it all means. What parts of the laws have been upheld? As a business owner, what will you need to do to comply with them?

In general, all of the tax provisions in the health care reform laws have been defended and will continue to be phased in over the next two years. Here’s what you need to know about what that means for you and your business. (more…)

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…)

Do You Have Ohio Use Tax Exposure?

Tuesday, June 26th, 2012

Commonly Overlooked Ohio Use Tax Liabilities

For the last year, we’ve been telling you about the State of Ohio’s efforts to step up enforcement of its use tax law. Use tax can be thought of as a companion tax to sales tax. In many cases, if you didn’t pay Ohio sales tax, chances are you will owe Ohio use tax. (more…)

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…)

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…)

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…)

How Do You Get Your Social Security Statement?

Thursday, May 10th, 2012

If you’re not yet nearing retirement age, Social Security probably means two things to you: the amount of money that disappears from your pay checks and the annual statements that you get in the mail. If you’ve ever taken the time to read these statements, you’ve probably learned some neat things about your finances – like your lifelong earning history and the amount of Social Security benefits that you’d receive if you were to need them right now. (more…)

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…)

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…)

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…)

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…)

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…)

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…)

Did you send a wedding announcement to Social Security?

Tuesday, April 3rd, 2012

When you’re newly married, there’s so much to think about.  Did you remember to thank Aunt Joan for that silver tray?  Did you remember to have your mail forwarded to your new address?  One thing that may not make the list: Did you remember to notify the Social Security Administration of your name change? (more…)

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…)

What red flags might get you audited?

Wednesday, March 21st, 2012

The IRS may audit only 1 percent of all tax returns annually, but if you’re one of the unlucky few, you may be wondering “Why me?” Since the agency doesn’t have enough personnel to closely review each and every tax return they receive, they rely very heavily on their computer systems flag items of “interest”.. Here are six of most common “red flags” that may impact a business owner filing a personal return. (more…)

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…)

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…)

Do you have to file taxes for your dependent children?

Tuesday, March 6th, 2012

A question we hear quite often during tax season relates to when it is necessary to file a tax return for a dependent child. Some people think that money held in an account intended for college education is exempt from taxation. That is not the case, unless the account is an Education IRA or Section 529 plan. If the investments are held in a custodial account or held in the child’s individual name, the child is deemed the owner and the income is attributable to him/her. (more…)

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…)

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…)

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 valuatio (more…)

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…)

Are You Ready for Tax Time? Have More Than a Shoe Box

Wednesday, February 8th, 2012

So it’s tax time. While that thought might conjure up images of lots of receipts in a shoe box, you don’t want to be that person. With a little preparation, you can help make your visit to your accounting professional less expensive and more enjoyable. Here are a few tips to help you prepare. (more…)

Does New 1099 Reporting Affect You?

Wednesday, January 25th, 2012

If your business has paid at least $600 in professional services or other payments in 2011, you may be subject to a new 1099 reporting requirement as you begin to file your 2011 taxes. (more…)

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…)

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…)

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…)

Thinking of Doing InvestOhio? Additional Guidance Released

Monday, January 9th, 2012

Approximately 70 percent of the $100 million in tax credits remain available for Ohio’s InvestOhio nonrefundable tax credit program. Through InvestOhio, Ohio you can invest in qualifying Ohio small businesses as an individual taxpayer. Then, you can receive a credit for 10 percent of the amount invested against their personal Ohio income tax if they meet certain requirements. (more…)

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…)

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…)

Is 2011 the Year to Give? IRA Contributions to Charity

Friday, December 9th, 2011

If you’re thinking about donating a portion of your IRA to charity, you’ll receive a greater tax benefit if you do so before December 31. A popular provision is set to expire at the end of the year, and there is no guarantee the provision will appear in an extender bill in Congress anytime soon. (more…)

Are You Ready for the Next Phase of InvestOhio?

Wednesday, November 30th, 2011

Recently we’ve been telling you about Ohio’s new nonrefundable tax credit program called InvestOhio. Through it, Ohio taxpayers who invest in qualifying Ohio small businesses can qualify for a 10 percent credit against their personal Ohio income tax if they meet certain requirements. In less than two weeks, taxpayers can begin the second step in the application process for this tax credit. (more…)

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…)

Do you know the 2012 Retirement Limits?

Wednesday, November 23rd, 2011

Employees and individual retirement plan owners can contribute more toward their retirement benefits next year. (more…)

Need Help Understanding Employee Healthcare Benefit Reporting on W-2s?

Tuesday, November 22nd, 2011

The IRS recently held a webinar to explain its reporting requirements for healthcare coverage on employees’ W2’s for the 2011 tax year. We’ve provided a summary of the webinar below for those of you who missed it. (more…)

Guarantor Requirementsfor 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…)

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…)

Have You Determined a Beneficiary for Your Retirement Plan?

Friday, November 11th, 2011

A single dad wanted to designate his two children as beneficiaries of his retirement benefits. He mailed his beneficiary designation form to his employer with a cover letter explaining his wishes. When he died, the benefits administrator noticed the designation form wasn’t signed. Should the plan assets pass to the estate or the children? (more…)

Going, Gone? Tax Provisions that Could End in 2012

Monday, October 24th, 2011

Late in the year last year, Congress extended several tax law provisions but only for a short period of time. Below are items that may expire at the end of this year if no action is taken by Congress. (more…)

Do You Understand Michigan’s Business Tax Changes?

Wednesday, October 19th, 2011

We recently reported that Michigan is changing their tax structure effective January 1, 2012. In a nutshell, Michigan is replacing the Michigan Business Tax (MBT) with a Corporate Income Tax (CIT). Changes coming with the new CIT include a 6 percent tax imposed on C corporations only, making Michigan’s corporate income tax rate the lowest in the Midwest. (more…)

Will I Be Penalized for a Hardship 401K Withdrawl?

Monday, October 17th, 2011

A reader asked: I wanted to do a hardship with my 401k and was wondering if would be penalized 10 percent of the balance? I borrowed from my 401k and haven’t paid all of it back yet. Will I be able to do a hardship with remaining balance left? (more…)

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…)

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…)

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…)

So the Grass Wasn’t Greener? Time to Reverse Your Roth IRA Conversion

Tuesday, September 27th, 2011

If you converted a traditional IRA to a Roth IRA account last year, you may be facing an account that is worth much less than when you converted it. But you might also be facing a tax bill on value you no longer have. You do have an option, but only if you act quickly – reverse your 2010 Roth conversion.

If you converted your traditional IRA to a Roth IRA last year, the transaction triggered a taxable distribution from the traditional IRA, followed by a contribution to your Roth account. That tax will be based on the value of the traditional IRA on its conversion date. That means if your account is worth less now, you will owe taxes on money that no longer exists.

How to Reverse Your Roth IRA

Thankfully, the Roth conversion regulations allowed for the ability to reverse the conversion – but only if you do so before October 17. This involves completing the proper paperwork with your IRA custodian or trustee. When properly filed, the IRS considers your account as being “recharacterized” from a Roth account back to traditional IRA status. It’s as if the conversion never happened, and your tax liability disappears.

You’ll need to amend your 2010 tax return to allow for the reversal, or adjust your 2010 return if you have filed for an extension. Your reversal of the Roth conversion this year will also trigger some additional documentation requirements for your 2011 tax return.

Reconverting to Roth

Now that you’ve lessened your tax liability on phantom income that vanished due to the market’s versatility, you might consider using the down market to your advantage. You can reconvert your now traditional IRA back to a Roth – and pay less tax on it than you would have paid last year. You must wait 30 days after the reversal to reconvert it. Reconverting your traditional IRA account to a Roth can make sense if you expect your assets to appreciate quickly.

Your tax professional can assist you in amending your 2010 tax return or adjusting your extended 2010 return. He or she can also walk you through the reporting process that will be required should you decide to reconvert your IRA.

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…)

Raising Funds for Booster Club? The Rules are Tricky

Tuesday, September 13th, 2011

The Internal Revenue Service has issued a warning to booster clubs that conduct fundraisers that they may be subject to IRS scrutiny, including jeopardizing the groups’ 501(c(3) status. An IRS directive addresses the possible tax consequences for booster clubs that reduce the amount a participant is required to pay based on the amount of fundraising the individual has done. (more…)

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…)

What to Do? Uncertainty Continues to Make Tax Planning Difficult

Friday, September 2nd, 2011

Ohio business and individual taxpayers, as well as their tax professionals, faced a great amount of uncertainty in 2010 as they waited to see what tax rules would apply to them for 2011 and 2012, until the 2010 Tax Relief Act was signed into law in December. Now, the recently approved debt ceiling legislation averted another immediate crisis, but continued this guessing game as Americans wait to see if comprehensive tax reform will be accomplished. (more…)

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…)

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…)

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.

Waiting on the Airline Refund? Now It’s Not on the Way

Thursday, August 11th, 2011

So much for the airline tax refund you may have been expecting.

If you traveled by air and purchased a plane ticket on or before July 22, 2011, for a trip leaving July 23 or later, you may have heard that you may be eligible for a refund on the air transportation excise tax you paid. Recent legislation means there will not be a refund. (more…)

Are You Eligible for an Airline Tax Refund?

Wednesday, August 10th, 2011

If you traveled by air and purchased a plane ticket on or before July 22, 2011, for a trip leaving July 23 or later, you may be entitled to a refund on the air transportation excise tax you paid. (more…)

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…)

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…)

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…)

Is Your Group Still Exempt? 11,000 Ohio NFPs Lose Tax-Exempt Status

Friday, July 8th, 2011

The IRS recently announced that nearly 11,000 Ohio not-for-profit organizations lost their tax-exempt status. Why? They failed to file an annual informational return for three consecutive years. (more…)

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…)

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…)

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…)

Live or Do Business in Michigan? Tax Amnesty Ends Soon

Monday, June 13th, 2011

The Michigan Department of Treasury is providing an opportunity for delinquent taxpayers to pay their taxes while avoiding penalty charges and criminal prosecution, but time is running out to participate in the program. (more…)

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. Please click here for the most recent information.

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…)

Want to Look Back in Time? See an 1864 Tax Return

Friday, June 3rd, 2011

Recently blogger Paul Caron, a professor of law at Cincinnati College of Law, shared an IRS tax form from 1864. The form was two pages, and 10 questions. As our country considers ways to simplify our current tax laws, it may make sense to look at where and how our tax laws began nearly 150 years ago. (more…)

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…)

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. Please click here for the most recent information.

(more…)

Saving for College? Use Sallie Mae’s New Mobile App

Monday, May 23rd, 2011

If you’re saving money for college through a tax-deferred 529 plan (or you know someone who is), a new mobile app from Sallie Mae could help you add even more to the till. (more…)

Are You Celebrating National Small Business Week?

Wednesday, May 18th, 2011

May 16-20 is National Small Business Week, and several organizations are providing materials, events and other tools to help small businesses. (more…)

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…)

What If Will and Kate Married in the US? Financial Advice for Newlyweds

Friday, May 13th, 2011

As the Duke and Duchess of Cambridge settle into married life, they may manage many of the same financial issues that any other newlyweds face with a new union. So, what if William and Kate got married in the United States instead? What financial advice might they receive that soon-to-be brides and grooms might also heed? (more…)

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…)

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

Friday, April 29th, 2011

The federal tax deadline has come and gone. What if you haven’t filed your taxes? (more…)

Raiding Your 401K? It’ll Cost You

Tuesday, April 26th, 2011

A recent study by Bankrate found that nearly one-fifth of full-time employed Americans have raided their retirement accounts in the past year to cover emergency expenses. These results match a Fidelity Investments study last year that reported the number of workers borrowing against their retirement accounts had reached a 10-year high. Given the financial stress that many workers face today, the numbers are not that surprising, but the long-term consequences can be. (more…)

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. Please click here for the most recent information.

(more…)

What’s the Latest on 1099 Reporting?

Friday, April 15th, 2011

When it comes to 1099 reporting rules, it’s out with the new and in with the old. (more…)

Did You Win at March Madness? Remember to Pay Uncle Sam

Tuesday, April 12th, 2011

If your NCAA college basketball bracket brought you some winnings, remember that your earnings count as taxable income, and you’ll need to report it when you file your 2011 taxes. (more…)

Is This Really A Message From The IRS?

Tuesday, April 5th, 2011

It’s that time of year when unsuspecting taxpayers receive suspicious emails, phone calls, faxes or notices claiming to be from the IRS. Many of the scams use the IRS name or logo to appear more authentic. (more…)

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?

Note: Ohio has established a tax amnesty program since this post was originally created. Please click here for the most recent information.

(more…)

Should I Pay Taxes Now or Later for My Roth IRA?

Wednesday, March 30th, 2011

If you took advantage of last year’s law change allowing you to convert your IRA to a Roth IRA, you face a big all-or-nothing tax payment decision on April 18: pay the taxes on your pretax contributions and gains in 2010, or split the tax bill between 2011 and 2012. (more…)

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. Please click here for the most recent information.

(more…)

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…)

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. Please click here for the most recent information.

(more…)

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 servicesyour 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. Please click here for the most recent information.

(more…)

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…)

Do You Export? Lower Your Taxes with IC-DISC

Wednesday, March 9th, 2011

If your manufacturing company has $1 million or more in export sales each year, or if you sell products that are ultimately destined for use overseas, you may benefit from a tax tool that was extended along with the Bush tax cuts in December. (more…)

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…)

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…)

Got A Small Non-Profit? Your 990 Filing Might Be Easier This Year

Monday, February 21st, 2011

If your not-for-profit organization doesn’t normally have annual gross receipts of more than $50,000, it may be able to file an e-postcard rather than the more extensive IRS Form 990 or Form 990-EZ. The IRS has increased the gross receipts filing threshold from $25,000 to $50,000 for eligible organizations effective for tax years beginning on or after January 1, 2010.  (more…)

IRS Goes High Tech: Are You Connected?

Friday, February 18th, 2011

Taxpayers can now check the status of their IRS refund on their smart phone. The IRS has unveiled IRS2Go, a smart phone application, and also announced a news feed on the social media platform Twitter. The new communication channels are two of a growing list of ways the agency is working to communicate with taxpayers. (more…)

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…)

Add $1,000 to retirement account without sacrifice? Here’s how

Tuesday, February 8th, 2011

A provision of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 decreased the employee portion of the Social Security tax from 6.2 percent to 4.2 percent for 2011. Now you have a rare opportunity for to increase your 401(k) contribution without any change in your net take-home pay in 2011 when compared to 2010. (more…)

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…)

Did the IRS revise the federal tax deadline and date to accept itemized returns?

Wednesday, February 2nd, 2011

The IRS will not accept federal returns from taxpayers who claim itemized deductions until February 14. The delay is necessary for the IRS to program its systems to accommodate tax breaks included in the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. (more…)

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…)

How will selling a house from an estate impact my taxes?

Thursday, January 20th, 2011

Dear Drebit:

My mother passed away October 30, 2009. She left my brother and me her house, which has just been released from probate court. We have someone wanting to buy it and we would split around $140,000. What kind of taxes do we face? The house is in SC. I would appreciate your help. (more…)

What Will You Do With Your Two Percent Salary Increase?

Monday, January 17th, 2011

When Congress passed the Tax Relief, Unemployment Insurance Reauthorization and Jobs Creation Act of 2010 during the lame duck session late last year, one element of the bill puts more money in the pockets of employees through a one-year cut in Social Security taxes. (more…)

Receive Rental Income? Start Keeping Records in 2011

Friday, January 14th, 2011

Corporations, partnerships, individuals and trusts that receive rental income from property should plan to keep additional records in 2011. As a result of 2010 legislation, they will be required to issue IRS Form 1099-MISC to service providers, such as plumbers, painters and accountants, of $600 or more during the 2011 tax year. (more…)

How do I keep my succession plan on course?

Thursday, January 13th, 2011

The future of your family business might not be in the front of your mind as you go about your day-to-day routine. But if you have a defined plan that everyone is aware of, you can more effectively prepare for a successful transition when the time comes to put it into place. (more…)

Can I still do an IRA rollover to charity for my 2010 taxes?

Tuesday, January 11th, 2011

As part of the recently passed tax extensions, Congress extended, once again, the popular IRA rollover to charity provision – but with a twist. (more…)

Donating to Charity from Your IRA? Seniors Get 2010 Deadline Extension

Friday, January 7th, 2011

As part of the recently passed tax extensions, Congress extended, once again, the popular IRA rollover to charity provision – but with a twist. (more…)

Does the IRS Tax Filing Delay Mean A Delay For You?

Tuesday, January 4th, 2011

You probably heard by now that the IRS won’t begin processing several types of tax returns, including tax returns with itemized deductions, until mid- to late February. Why? It needs time to reprogram its processing systems to accommodate the tax law changes that the lame duck session of Congress passed late last month. (more…)

What Tax Deductions and Credits Have Been Renewed for Individuals?

Monday, December 27th, 2010

Part of the recently passed Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 has extended many popular deductions and credits for individual taxpayers through 2012.  Many of these are part of the list of tax “extenders” that Congress has temporarily extended (usually at the last minute) for the last several years.  These provisions benefit taxpayers at various income levels. (more…)

How does the new estate tax work?

Wednesday, December 22nd, 2010

Congress has finally gotten around to fixing the federal estate and gift tax, even if they are a full year late and have made only temporary rules for the next two years.  The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 revives the estate tax for 2010 and makes a number of other changes for 2011 and 2012. (more…)

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…)

What do the tax extensions mean to me?

Monday, December 20th, 2010

On Friday, December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (HR 4853) after the compromise bill worked its way through approval by both houses of Congress. The new law contains a number of extensions of popular tax provisions for individuals, businesses and estate/gift taxes. Below is a quick roundup of the provisions for individual taxpayers. We will outline business provisions in a separate post. Most of the provisions below are scheduled to sunset in some way on 12/31/20112. (more…)

Isn’t Extending the Bush Tax Cuts A Temporary Fix?

Friday, December 17th, 2010

While some may be breathing a sigh of relief now that the brokered tax package has passed through Congress and is being signed by President Obama, others among us are becoming increasingly alarmed at the “temporary” nature of our tax laws – and the impact these temporary fixes will have on our long-term planning. (more…)

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…)

Why can’t federal agencies communicate with us more clearly?

Monday, November 1st, 2010

Actually, federal agencies will soon be required to communicate more clearly with us. Earlier this month, President Obama signed the Plain Writing Act, which will require federal government agencies, including the IRS, to write public documents in easy-to-understand language. This means items such as tax forms, federal student aid applications, Veteran’s Administration forms and even form letters from the IRS will receive a makeover. (more…)

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…)

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…)

The Rea Legislative Crystal Ball: What Taxes Await in 2011?

Wednesday, September 15th, 2010

Everyone wants to know what tax legislation Congress will approve in the coming months. In reality, Congress has little incentive to act on anything ahead of the November mid-term elections other than what to do with the expiring Bush tax cuts. At the risk of quickly being outdated, here are my predictions on some of the most commonly discussed tax legislation provisions. (more…)

How Can Raiding Their 401(k) Hurt Employees?

Monday, September 13th, 2010

Fidelity Investments recently announced that the number of workers borrowing against their retirement accounts has reached a 10-year high. Given the financial stress that many workers face today, the numbers are not that surprising, but the long-term consequences can be. (more…)

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…)

How does your state get its tax revenue?

Monday, August 30th, 2010

If you’ve ever wondered what types of tax revenue make up your state government’s budget, the Tax Foundation recently compiled a breakdown of state use of property tax, sales tax, personal income tax and licenses and other taxes. The results are based on newly-released Census data.

Our home state of Ohio, for example, ranks tenth in the nation for its reliance on personal income tax,  which makes up 30 percent of its total revenue.  Other taxes include general sales tax at 20 percent, selective sales tax at 11 percent, corporate income tax at 1.9 percent and licenses and other taxes at 7.5 percent.

Click here to view the detailed report.

Are Research and Development Tax Credits Dead?

Friday, August 27th, 2010

Although R & D tax credits expired at the end of last year, Congress has made a few attempts to continue them by passing an extenders bill. So far, those attempts have not been successful, but most tax experts believe R&D credit will be passed and that Congress will make the tax breaks available for 2010.

Click here to learn more about R&D credits and how they can help your business.

Could Your Company Benefit by Hiring Unemployed Workers?

Monday, August 23rd, 2010

The U.S. Department of the Treasury estimates that, between February and May, businesses hired 4.5 million workers who had previously been unemployed for eight weeks or longer. As a result, those businesses are eligible to receive part of up to $8.5 billion in tax exemptions and credits through the Hiring Incentives to Restore Employment Act, known as the HIRE Act. (more…)

How will new 1099 reporting impact my business?

Tuesday, August 10th, 2010

Businesses could see significant changes in how they report transactions on 1099 forms, thanks to a provision in the Patient Protection and Affordable Care Act. (more…)

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…)

Can my summer day care expenses earn a tax credit?

Monday, July 26th, 2010

Arranging summer day care for your children can be challenging, but knowing those expenses may be tax deductible may help. The IRS recently shared some tips regarding the tax credit available for child care of children under age 13. (more…)

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…)

How do disaster payments, like those for the oil spill, impact your taxes?

Friday, July 16th, 2010

The IRS recently explained how recipients of payments by BP to oil spill victims for lost income should treat the payments for tax purposes, set up a special tax assistance day and established a special toll-free line for Gulf Coast area taxpayers. (more…)

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…)

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…)

Which is better, and LLC or S-Corp?

Wednesday, June 9th, 2010

When you start a small business, the most popular organizational forms are the limited liability company (LLC) and the S corporation. There are advantages to both, and you can even combine their features. Here’s what to consider: (more…)

How can the HIRE Act help my business?

Wednesday, May 12th, 2010

In March, President Barack Obama signed the Hiring Incentives to Restore Employment (HIRE) Act. The HIRE Act contains several tax items, the biggest of which is a payroll tax holiday for employers who hire qualifying workers – someone who has not worked more than 40 hours during the last 60 days. This employer benefit is for qualifying new employees hired after Feb. 3, 2010, and before Jan. 1, 2011, however, only wages paid after March 18, 2010 qualify for the payroll tax holiday. (more…)

What are the new tax preparer requirements?

Monday, May 3rd, 2010

The Internal Revenue Service has established new registration, competency and continuing education requirements for tax preparers who prepare returns for compensation. The new rules will not apply to the 2010 tax season, but are projected to begin with an online registration process on September 1, 2010.

We at Rea & Associates, Inc., applaud these new regulations that now encompass preparers who were previously unregulated. As certified public accountants, we have been governed by ethics, continuing education and professional standards for many years. We welcome the additional accountability and professional standards for these tax preparers. (more…)