Posts Tagged ‘Tax’

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…)

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…)

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…)

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…)

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 Can You Make Vacant Commercial Space Work for You?

Tuesday, September 3rd, 2013

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

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…)

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.
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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.
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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…)

Why might the delay in the Affordable Care Act be better news than you think?

Wednesday, July 3rd, 2013

This week, President Obama and the Department of the Treasury announced that several key elements of the Affordable Care Act (ACA) will be delayed until 2015.  Specifically, the “pay or play” provision, or employer mandate to provide essential minimum coverage that is both affordable and minimum value. In addition, the employer informational reporting requirement has also been delayed until 2015. The administration cited stakeholder concerns and difficulties in implementing smoothly as reasons for the delay.  (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…)

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…)

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…)

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 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 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…)

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…)

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 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…)

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…)

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…)

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…)

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…)

Is Your Farm a Hobby or a Business?

Friday, February 10th, 2012

Farming is a pleasure activity for some individuals, and for others, it’s how they support themselves. If you farm for profit, how do you prove it to the IRS? (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…)

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…)

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…)

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…)

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…)

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…)