Extended Payroll Tax Cut Could Benefit Small Business Owners

We’ve discovered some good news for the savvy small business owner. The IRS has extended a 2011 payroll tax cut through the end of February 2012. This tax cut is a 2% reduction in Social Security tax from 6.2% o 4.2%. (which they assure us will have no effect on our [Read More]

1099-K, Merchant Account Payments and You

What is a 1099-K and why am I receiving it? The 1099-K is a new form for 2011 for reporting payments to the IRS that are received by a person or a business from a Merchant (Visa, Mastercard, American Express, Discover) and/or a Third Party Network, (PayPal, Google Checkout, [Read More]

Unemployment Tax changes affect Florida Businesses

The condition of the US economy over the past few years has left Florida (and 19 other states*) in debt to the Federal Unemployment Insurance system. Florida’s Unemployment Insurance debt is on the order of $2 Billion dollars! The grace period for repayment of these funds [Read More]

Tax Deadlines…A Few Reminders

Tis the season of taxes and deadlines.  Since this week’s blog post marks the end of the 2010 Tax Season, I wanted to go over the deadlines and give a few helpful reminders for the folks that are still rounding up their tax documents and scrambling to get their taxes [Read More]

Ignorance Is Not Bliss: What Tax Records Businesses Need to Keep

Last week we went over the individual tax payer’s record keeping requirements, this week I want to discuss what business owners should be holding onto and for how long. Obviously businesses have a more extensive list of record keeping requirements than individual do [Read More]

IRS Working Out the Kinks in New 1099 Reporting Requirements

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By now you've probably heard quite a bit about the new 1099 reporting requirements that were included in the Health Care Reform Bill and the concerns for the disproportionate burden it will place on independent contractors, freelancers and small business owners. [Read More]

Small Business to be Hit Hard by New SECA Rules

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To avoid paying the 15.3% tax, S Corporations have for years taken advantage of paying cash to shareholders as distributions instead of wages—not exactly what the IRS had in mind. Don’t forget that S Corps also avoid corporate level income taxation too because that [Read More]

Bad Debts Gone Wild: Part II, Consumer Debt

Earlier we discussed the tax implications of discharged debt and that the tax code, at face value, considers discharged bad debt (absent of any special exceptions) as taxable income. But of course, nothing is as simple as that in the world of Federal tax laws, so let’s [Read More]

1099-C & 1099-A: Bad Debts Gone Wild – Part I

The bleak economic environment over the past couple of years has resulted in a wave of credit defaults & foreclosures striking many individuals and small companies. In addition to dealing with stress and damaged credit scores, there is something even more sinister lurking [Read More]

Federal Home Buyer Tax Credit Upgrade Documentation

I suppose everyone in America has heard something concerning the Home Buyer tax credit by now. However, hearing about any new tax laws does not generally translate into understanding it. Well…Surprise!! Congress is not known for writing tax (or any) laws in a [Read More]