Since 2007 the amount of contractors that are paid by small businesses has doubled. It can be argued that most of this was created by the mass lay-offs during the economic downturn which lead to some folks hanging up a shingle and businesses looking to cut cost turned to contractors to lighten the burden of having an…
Category Archives: Tax
Contribution Denied
Recently, the IRS won a court case on a technicality, not that the IRS needs more upper hand. The Durdens were generous individuals who contributed over $25,000 to their church and, of course, took the deduction on Schedule A as any tax payer would. The IRS challenged the deduction and won. How you say? Well,…
Late Filing
The IRS anticipates that the vast majority of all taxpayers can file starting Jan. 30, regardless of whether they file electronically or on paper. The IRS will be able to accept tax returns affected by the late Alternative Minimum Tax (AMT) patch as well as the three major “extender” provisions for people claiming the state…
1099-K – Destined to be over reported
We received our 1099-K for the firm from the company that processes the merchant accounts and to our surprise, since we scan checks to be deposited and the merchant services provider, Evalon, is involved in processing these payments as well, they are included in the 1099-K. Keep in mind, these are checks issued by our…
21st Century Practice
The NewsAccount always gets special attention from me when it arrives. As a younger CPA, and with our practice at ClearPath Accountants, LLC in growth mode, I look for opportunities within the profession. I found the July/August issue primed for the vision we have at our firm and our growth strategy. Stephen Taylor’s article proved…
The Positives of Planning
Now that taxes are filed and done, it’s time for planning. Whether you’ve had a good year, a steady year or a not so good year, planning ultimately provides you and us with a lot of information and benefit: Planning gives you an idea of what your business has done and what the tax impact…
The 1099K conundrum and the importance of bookkeeping in 2012
It’s a known fact, more businesses are paying their bills with credit cards. Hence why the IRS has implemented the issuance of a 1099K by all credit card companies. You probably received one in 2011. Although it wasn’t as important then, it’s going to be important in 2012. We project that a majority of small…
Think about school? Nope, September 15th
As summer days are over, is it time to start thinking about school? Nope, it is time to think about September 15th. What does September 15th mean for the majority of business owners? It is time to write checks to the Federal and State Government for the 3rd estimated payments for 2012. Do you have…
Errors Made on Individual Returns in 2012 for 2011
Errors Made on Individual Returns in 2012 for 2011 (as disclosed by the IRS) The following are errors made on Individual Returns. It should be noted that most of these errors will not occur if computer software is used to assist in the preparation of the individual return. The taxable amount of social security is…
Increases in Federal Income Taxes have sweeping impacts on the economy.
A decrease in the income that is available to an individual impacts their spending. That decrease in spending can be demonstrated in simple illustration: The eating out of a couple has been reduced from twice a week to once. The $75 they formerly spent at a neighborhood restaurant is gone. The server’s income is impacted…
