TIGTA Reports Billions of Dollars of Uncollected Taxes

Despite having thousands of employees and information matching programs in place, the Internal Revenue Service has not always been able to follow up with every instance of a tax discrepancy. However, a recent report from the Treasury Inspector General for Tax Administration (TIGTA) advises the IRS to take further measures to help lessen the “tax…

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Employers May Give Employees Tax-Free Disaster Relief

If they carefully follow the guidelines, employers may give cash payments to employees for disaster relief, tax-free. Under Sec. 139 of the Internal Revenue Code, qualified disaster relief payments to employees are tax free to the employee and deductible by the employer. This includes income as well as social security and Medicare taxes. Three rules…

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Coworking Spaces: Meet New People While Getting Tax Breaks

As a solopreneur, finding a consistent workspace can be a battle. Whether feeling lonely or distracted in your personal living room to feeling like an intruder in a coffee shop, there’s got to be another solution where productivity and your personality can soar. While some solopreneurs thrive on rolling out of bed and into their…

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An Expert Guide to US Payroll Taxes

U.S. Payroll Taxes — The Taxes No One Expects…  While everyone is well aware of the impact of business income taxes, the sleeping giant of payroll taxes (also known as employment taxes or trust fund taxes) often catches business owners and employees by surprise. This guide will give you an overview of what payroll taxes…

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Heavy Vehicle & Deductible Home Office = Major Tax Savings

You can reap major tax savings with the heavy vehicle and home-office combo. The heavy vehicle produces quick deductions. The home office that qualifies as a principal office eliminates commuting miles, and such an elimination can dramatically increase your business-use percentage of vehicles. For example, say you bought a $50,000 vehicle that you use 60…

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What are Quarterly Wage Reports and Why Do They Matter?

Wage reports, also known as quarterly contribution or wage detail reports, are the reports you file on a quarterly basis with each state, district and territory in which you pay employees in order to stay compliant with paying state unemployment insurance (SUTA). In other words, they are a key function of your payroll taxes (also known as…

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Capital vs. Operating Lease: Tax Reporting Implications

We often encounter taxpayers who do not quite fully understand how to report for income tax purposes the lease agreements they have entered into for business use assets, particularly automobiles. Leased property includes real estate, machinery, and other items that a taxpayer uses in his or her business and does not own. Payments for the…

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Running an Etsy Shop: Knowing How to Handle Your Taxes

Each year, millions of people choose Etsy as an avenue to sell – and buy – unique goods. If you have considered opening an online shop or already have one started, congratulations! Your entrepreneurial spirit is an inspiration. While running your virtual store, your focus should be providing the best possible product for your customers.…

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Does Crowdfunding Affect Your Taxes?

Over the past few years, crowdfunding – or crowdsourcing – has been a simple and effective alternative to loans, venture capital and conventional fundraising. Through sites such as Kickstarter, IndieGoGo, and GoFundMe, raising money for creative projects, start-up businesses, or personal causes can be achieved in just a couple of clicks. But since billions of…

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5 Tips to Help You Minimize Your Small Business Taxes

It’s safe to assume that everyone loves to save money. As a small business owner, the more capital you have, the easier it is to grow your business and generate more revenue. But when tax season creeps around the corner, an unexpectedly large portion of your hard-earned money could wind up in Uncle Sam’s pocket.…

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