Posts Tagged ‘business advice’

Readers Sought Last-Minute Tax Tips In January

Friday, February 5th, 2016

Top 5 Business Blog Posts Revealed

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

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

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

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

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

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Anything Can Happen In Cleveland

Friday, January 8th, 2016

“There’s always next year …”

Value of Big Data - Ohio CPA Firm

Paul DePodesta has just been announced as the Cleveland Browns Chief Strategy Officer to assist in rebuilding the team. Can big data help the Browns like it helped the Oakland A’s?

Since 1999 that phrase has been uttered so many times in reference to the Cleveland Browns it should have been declared Ohio’s state motto. Well, it’s now 2016 and it looks as though next year might finally be THE year. Why am I so optimistic? Because the day after the Browns cleaned house, the franchise announced who would step in as the new Chief Strategy Officer to help rebuild the team – Paul DePodesta!

Some of you may have no idea who this guy is. But stay with me here while I explain why the news of the Browns hiring DePodesta may have changed the way I look at a team that has done nothing but bring me heartache and disappointment for more than literally half my life.

Six months back I wrote the post “The Billy Beane Approach To Business Success,” which was inspired by another lackluster sports team. One night, rather than watch the Cleveland Indians withstand another defeat, I chose to watch a baseball story with a much happier ending.

If you’ve seen Moneyball then you know that Billy Beane, the general manager of the Oakland A’s, is famous for abandoning “business as usual” and embracing a data driven approach to team building. In doing so, Beane transformed his team and began delivering results simply by recruiting players based on a single data point – their ability to get on base.

So, what does Beane’s story have to do with the Cleveland Browns and Paul DePodesta? Everything. DePodesta, also known as Beane’s right-hand-man, is the guy who first identified the data that went on to drive the Oakland A’s success!

It looks like the Dawg Pound is scheduled for a renovation after all and that “next year” may finally be here!

Now the question is: what data driver will be the key to turning the Browns into a winning team?

What Drives Your Business’s Success?

Take a play from the Browns’ new strategy, your priority should always be defined by what is driving your business’s success and you can’t afford to let yourself become bogged down by business as usual. If you are finding that you are becoming more and more distracted, it may be time to take a fresh look at your organization and refocus on what’s important. Let go of everything else.

This is something the management team at Rea can speak a lot about. The firm recently rolled out its new strategic plan, which calls for all 200+ employees throughout 11 offices across the state of Ohio to focus on a singular driver. Today, all employees are able to clearly identify how their position impacts the firm’s ability to be successful and, together, we can work to deliver real, measurable results.

Listen to Rea’s CEO talk about the firm’s new strategic plan in episode 4 of unsuitable on Rea Radio: “How To Run With The Big Dogs.”

Are you ready to make a change and develop a winning strategy? We can help. Email Rea & Associates to speak to someone who can help you identify and assess your company’s drivers.

In the meantime, I don’t know about you, but I will be eagerly awaiting the announcement of the Browns’ new GM (general manager.) Maybe it will be Kevin Costner –  he did a great job for the Browns in Draft Day. The Browns do have the number two draft pick of 2016. Anything can happen.

By Katie Snyder (Wooster office)

 

Want more tips to help you improve your business? These posts will help:

How Can A Focus On Inventory Management Help My Business?

Cash Flow Is King: Where Do You Need To Focus?

Getting Back To Business: How Outsourcing May Provide Relief To Your Business

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Pay more attention to your company’s cash flow for a prosperous 2016

Tuesday, January 5th, 2016

A 13-week rolling cash flow budget lets you harness the past, present and future of your company to arrive at a comprehensive analysis of its overall financial well-being – making you a more effective leader and decision-maker.

An effective cash flow is rooted in your company’s historical trends and considers current initiatives and any internal and external factors that may impact the financial security of your business – including past, present and future billing and payment patterns. In order to dig a little further to gain a little more insight into your company, I recommend:

  • Analyzing your accounts receivable to determine ways to quickly turn them in to cash.
  • Reviewing your current inventory levels to determine what is old or obsolete and what can be used to generate more revenue.
  • Going over your accounts payable to optimize your own financial obligations.
  • Looking at your non-core assets to determine how much money is being spent and whether or not a more lucrative avenue is available.

Finally, don’t forget to update your cash flow regularly. Setting up a cash flow dashboard will take a little extra effort at first, but maintaining it is simple. Then, if done correctly, you will have the ability to accurately estimate your business’s variable costs and expected sales at a moment’s notice – and that is a very powerful tool to have.

To learn more, visit www.reacpa.com/cashflow and listen to my podcast about why $1 million doesn’t matter or, if you have questions, send me an email.

This article was published in the January 2016 issue of Columbus Business First – Ask The Expert.

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Business Leaders Were Reading What?!

Monday, December 28th, 2015

2015′s Most Popular Blog Posts

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

Top 5 Dear Drebit Posts In 2015

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

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

5 Most Popular Posts On Brushing Up Blog

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

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

Cultivating Your Business Readers Choose Top 5 2015 Posts

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

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

Top 10 Articles In Rea’s Library In 2015

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

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

Friday, December 4th, 2015

Financial statements and tax returns are a rearview glance in the mirror at what has already happened at your organization. Instead of always looking back at your financial data, it’s important to develop a forward-looking forecast.

Smart Business recently interviewed Dave Cain about ways to develop a forecast for your business and the benefits of it.

“It might sound simple, but it can be difficult for business owners because they are working at 100 miles an hour to run and grow their business. They feel like they don’t have an opportunity to step back and do some forward thinking,” says Dave.

To read online, check out the article on Smart Business’s website.

Want to read more articles about forecasting advice for your business? Check these out: 

How Can A Focus on Inventory Management Help My Business?

Do You Need a CFO?

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

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Why would I want to listen to a podcast from an accounting firm?

Wednesday, October 7th, 2015
Unsuitable Podcast - Ohio CPA Firm

Mark Van Benschoten (left) talks with Doug Feller, a principal and financial advisor with Investment Partners, talks about wealth enhancement and investment tactics for an upcoming episode of Unsuitable on Rea Radio, a new financial and business advisory podcast from Rea & Associates. Click here to learn more about Unsuitable on Rea Radio.

I know what you’re thinking – listening to a podcast from an accounting firm is probably about as entertaining and insightful as watching paint dry. But Unsuitable on Rea Radio isn’t your typical accounting podcast, and here’s why.

Real, Simple Solutions

Who doesn’t like a good story? What about one that leaves you with greater insight into the financial wellness of your own company? And if you had a better idea of how other successful entrepreneurs manage their wealth, wouldn’t you try to follow their lead?

The professionals at Rea have seen a lot over the last several decades and they are willing to open the curtain just enough to provide you with the information to forge your own success. And on Unsuitable, they do just that.

An Effective Kick In The Pants

Unsuitable offers a little something for everybody and I am confident that this is a show that will not only help provide you with more clarity, but will motivate you to take the next step as a professional and as a business leader.

Look at what has already been discussed in the first four episodes:

And this is just the beginning. Look for episodes highlighting investment strategies, Affordable Care Act compliance and retirement preparedness – just to name a few.

Accountants Like To Laugh Too

This may come as a surprise to many since those in the accounting profession tend to be thought of as dry, stuffy, number-crunching fanatics, but that’s just not true – well, most of the time. The Rea team consists of some pretty humorous, outgoing folks and I think that the diverse sense of humor of our team shines through. Mark Van Benschoten, the host of the show, helps a lot, of course. He does an excellent job addressing each guest and makes them feel comfortable … then the show gets really good.

Just The Right Length

Our firm has 11 offices throughout Ohio, which means I do a lot of driving. When I’m on the road I like to listen to podcasts – and there are a lot of them out there! What I really like about Unsuitable, is that it’s long enough to be really informative and wraps up nicely before it reaches the point where I am wishing it would end. In fact, when it does end I find myself wanting to start the next one. Mark and his guests get right to the point of the show, provide examples and offer hard-hitting advice in a concise, enjoyable format – all while having a great time and avoiding stuffy accounting jargon.

Go to www.reacpa.com/podcast now and start listening or subscribe to Unsuitable on Rea Radio on iTunes or SoundCloud. I also want to encourage you to use #ReaRadio to join the conversation on Twitter and Facebook.

By Lee Beall, CPA (Dublin office)

Click here and start listening to Unsuitable on Rea Radio now!

 

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Will An Audit Find Fraud In My Business?

Thursday, September 10th, 2015
Fraud in My Business - Ohio CPA Firm

Your annual audit isn’t designed to detect fraudulent activity, but if across suspicious transactions are discovered a fraud detection expert should be called in.

For the same reason you wouldn’t expect your eye doctor to repair your tooth, you shouldn’t depend on your annual audit to detect occupational fraud in your business. A financial statement audit validates your financial records and provides reasonable assurance that they are materially accurate. It does not look for fraudulent activity.

Of course, if your auditor comes across suspicious transactions or questionable information, they will certainly share their findings with you. In addition, a good auditor will be able to recommend a fraud detection expert to help you dig deeper into the questionable activity.

So, if your audit won’t detect fraud, how will you know if it’s happening in your organization? 

According to the Association of Certified Fraud ExaminersReport to the Nations on Occupational Fraud and Abuse, only 3 percent of the nearly 1,500 reported cases of occupational fraud were detected by an external audit. According to the study, employee tips continue to be the most common way in which fraudulent activity is reported – usually through a fraud reporting hotline.

Your employees are likely honest, hard-working individuals who would never do anything to jeopardize your business. But until you empower them with a secure, anonymous outlet to tip off this behavior, you will never truly know for sure.

Are you serious about protecting your business from fraud? Learn more at www.reacpa.com/red-flags or contact me directly.

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

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Can Your Business Survive An Employee Exodus?

Tuesday, June 23rd, 2015
Do Your Employees Love Their Jobs - Rea & Associates - Ohio CPA Firm

It’s easy to blame the pay scale when an employee leaves or when it becomes a struggle to recruit new talent and it’s common for top performers to leave for bigger and brighter opportunities that promise a larger pay check. But sometimes, the reason a top performer leaves has nothing to do with dollar signs. Sometimes their departure has everything to do with whether they believe their work is appreciated. When an employee does a good job, do you let them know?

As the economy continues to improve, it’s more important than ever to remain focused on the well-being of your team – because if you don’t, somebody else will.

Just because your employees aren’t actively looking for another job opportunity, doesn’t mean that other companies aren’t looking for them. And that makes

your responsibility to keep them happy in their current position or company more important than ever. Maybe your closest competitors have begun to regularly communicate with members of your team as part of a strategy to siphon your top talent or maybe an appealing job posting on LinkedIn has prompted one of your best employees to take a critical look at their current situation. While widespread mutiny among your rank-and-file may not top your list of business threats, it’s a real possibility that must be given proper consideration. If key members of your team determine that the grass is, indeed, greener on the other side, you could be left shorthanded, unable to fulfill your business obligations and ultimately branded with a bad reputation.

Read: Are Your Employees Stakeholders In Your Business?

Could your business recover after taking this kind of hit?

If you’re not sure how your company would be able to handle the exit of your star employee or a mass exodus of talent, try implementing these tips into your team-building strategy to help secure your overall business structure – and ultimately your success. As an added bonus, you might be able to earn the “workplace of choice” status in your community in the process, which can have an extraordinary impact on all aspects of your organization.

Be A Better Leader

How effective you are as a leader hinges on your ability to provide support, motivation and direction to your team on a regular basis while utilizing fair and constructive methods of communication. Leadership is not just about barking orders, it’s about listening to your team and providing solutions that address challenges and promote higher levels of proactivity and efficiency. Want to be a better leader? Get involved. Listen. Be hands-on. And actively demonstrate the qualities you expect to see from your team.

Encourage Ownership

When team members are able to take ownership of their work and accomplishments, they will take more pride in their work and in the company. Oftentimes, the quality of your team’s work will increase and they will be more likely to offer valuable insight into the effectiveness and shortfalls of certain aspects of their area in the organization. You can’t be everywhere and they can serve as your eyes. Your team’s intuition can be incredibly valuable and can help improve your business’s processes and procedures. One way to encourage your team to take ownership is to give them the chance to walk away with a bonus for their efforts. Individual and company performance bonus plans have been successfully implemented in many businesses.

Environment Matters

Want to know the best way to drive your employees away? Make them work in cramped space with poor lighting, uncomfortable working conditions and outdated facilities. On the other hand, if attracting great hires and retaining top talent is your goal, be sure to provide your team with the tools they need to do their jobs effectively while ensuring that your facilities are up-to-date and the working conditions are manageable. Just like you, your employees are working harder than ever to earn a living. Another great way to satisfy your team is to understand that many of the men and women working for you are part of a household that depends on both parents working full-time jobs. Therefore, respecting the need for greater work/life balance might also give your business the edge when it comes to attracting and retaining top talent.

Be Generous With Feedback

It’s easy to blame the pay scale when an employee leaves or when it becomes a struggle to recruit new talent and it’s common for top performers to leave for bigger and brighter opportunities that promise a larger pay check. But sometimes, the reason a top performer leaves has nothing to do with dollar signs. Sometimes their departure has everything to do with whether they believe their work is appreciated. When an employee does a good job, do you let them know? When your team works together to fulfill an especially difficult quota, do you speak up? When you notice that one, two, 10 or more members of your team are struggling, do you take the time to work with them and help them overcome their challenges? When you take the time to give employees feedback with regard to how well they are performing their specific job duties, you help provide them with a roadmap for their own success. Some companies have begun to implement longevity awards to help acknowledge their team for the great work they do. These rewards are not only great incentives, they become points of pride.

Email Rea & Associates to learn more about the benefits a great team can have on your company’s bottom line.

By Tom Jeffries, CPA (Millersburg office)

 

Related Articles

Employees On The Fence? Ten Reasons To Join Your Ohio 401(k)
Ohio Prepares For Year Three Of Its Workforce Training Voucher Program
What Are The Top 5 Challenges Business Owners Face In Today’s Economy?

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Research & Development Credit Benefits Businesses Of All Sizes

Tuesday, April 14th, 2015
Plan For The Future - Rea & Associates - Ohio CPA Firm

While the 2014 tax season is now over, it’s never too early to start strategizing to secure future tax savings. For example, have you thought about improving your current processes to become more efficient? Believe it or not, taking steps to make your company “lean” may be just what you need to qualify for future tax savings.

If you own a small-to-midsize company, you probably haven’t given much thought to how the Research & Development (R&D) tax credit could help you. You might even think that the R&D credit is reserved for big businesses with tons of money to spare on technological investments. If so, then you may want to change your thought process and your business strategy.

Planning ahead is a great way to save your company’s tax dollars and there are many successful strategies from which to choose.
Click here to find out if you should be making a big purchase for your company that will help cut your tax bill.

The R&D tax credit applies to more than just businesses that have research facilities. In fact, many businesses across a range of industries may qualify for this valuable credit, but instead of asking their financial advisor for guidance, they give in to the misconception that they are not “big enough” or that they have not “big enough investments in technology.”

I recommend you avoid this mindset at all costs.

Plan For The Future

While the 2014 tax season is now over, it’s never too early to start strategizing to secure future tax savings. For example, have you thought about improving your current processes to become more efficient? Believe it or not, taking steps to make your company “lean” may be just what you need to qualify for future tax savings.

Are you familiar with Lean Six Sigma and how it can help you improve efficiency and effectiveness?
Read: Can You Explain The Concept Of Waste In Lean Six Sigma? to learn more.

According to consulting firm Smart Devine, in order to qualify for the R&D credit, your company must engage in an activity or initiative that:

  • Is technological in nature – Meaning it must rely on at least one of the following: physical sciences, biological sciences, computer science and engineering.
  • Is being conducted for a permitted purpose – Meaning that it must be intended to improve functionality, performance, reliability and quality.
  • Involves the elimination of uncertainty – Meaning the activity must be intended to identify information required to eliminate technical uncertainty.
  • Involves an experimentation process – Meaning that there must be some elements of experimentation, such as trial and error testing, prototyping, development and analysis of hypothesis.

The expenses that will be used to calculate the credit include your wages for research, supplies and contract research expenses.

Still Not Sure?

OK, so maybe you haven’t committed to an extensive lean-oriented strategy yet. That’s alright. There are many ways to qualify for this credit. Start by asking yourself the following four questions:

  1. Are you constantly developing new products or altering old products for new uses?
  2. Have you had a lean event to try and increase the productivity of a manufacturing facility, a single manufacturing line, or even a specific machine?
  3. Have you developed internal software because you couldn’t find one that met your needs on the market?
  4. Do you constantly develop prototypes to make sure your machines can produce a product that meets customer specifications?

If you answered yes to any one of these scenarios, chances are good that you will qualify for the credit.

Next Steps

If you do indeed qualify to receive the R&D credit, make an extra effort to maintain adequate records to substantiate the credit. This may seem daunting, but you are probably gathering the necessary information already. You probably just need to filter or tweak what you are already doing.

Email Rea & Associates to learn more about the Research & Development Credit and how to identify expenses that could qualify while promoting your company’s overall growth and sustainability. You may also be eligible to claim the R&D credit retroactively, contact us to learn more.

By Ben Froese, CPA (Wooster office)

 

Related Articles

How Do You Take Your Business To The Next Level?

Ohio Prepares For Year Three Of Its Workforce Training Voucher Program

Governor’s Budget Proposal Makes The Case For Tax Reform

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The Truth About Tax Extensions

Friday, April 10th, 2015

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

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

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


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

Myth 1:

Filing a tax extension increases your chance of an audit.

Truth:

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

Myth 2:

Tax extensions burden accountants.

Truth:

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

Myth 3:

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

Truth:

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

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

By Joe Popp, LD, LLM (Dublin office)

 

Related Articles:

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

Save More For Retirement In 2015

What If You Can’t Pay Your Taxes?

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