Choosing a Tax Expert for Your Small Business
SDA CPA Group
by SDA CPA Group
1w ago
Tax experts can guide small businesses on the optimal organizational structure, advising whether to operate as a sole proprietorship or consider other formations like a partnership or S corporation for better protection of business interests. Tax professionals typically review financial records, ensuring all income is accurately reported and all eligible deductions and credits are claimed to benefit the business. They can also address specific queries, including obligations regarding excise taxes or the necessity for filing employment tax returns. If the IRS reaches out concerning a tax issue ..read more
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Processing moratorium on new ERC claims continues into the late spring
SDA CPA Group
by SDA CPA Group
2w ago
On Sept. 14, 2023, amid concerns about aggressive ERC marketing, the IRS announced a moratorium on processing new claims. A specific resumption date hasn’t been determined but, at this point, the IRS anticipates it will be sometime in the late spring. This pause will help the IRS review the ERC inventory with strong, new measures of scrutiny in place. During the upcoming months, the IRS plans to complete the transcription of amended paper returns with the help of digitalization and deploy new risk analysis strategies to identify additional compliance work. Deploying these new risk analys ..read more
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Corporate Transparency Act Regulation Requirements
SDA CPA Group
by SDA CPA Group
1M ago
We want to bring the Corporate Transparency Act (CTA) to your attention, a significant regulation that could impact your business. It’s crucial to review this as substantial penalties for non-compliance affect corporations and LLC owners (including real estate holding or small LLCs), among others. Effective January 1, 2024, the CTA requires certain companies to report their beneficial ownership information to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). This law aims to boost transparency and combat financial crimes like money laundering. Key Points: Affected Entities ..read more
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Tax-Saving Tips: The IRS Annual Dirty Dozen List
SDA CPA Group
by SDA CPA Group
2M ago
Have you heard about the enormous tax savings you can reap by investing in a Maltese individual retirement arrangement or utilizing Puerto Rican captive insurance for your business? Before you invest your hard-earned money in these or other highly promoted tax schemes, you should check the IRS Dirty Dozen list. For over 20 years, the IRS has issued an annual Dirty Dozen list identifying tax scams and avoidance schemes. This year’s list includes everything from employee retention credit claims to the use of fake charities. Some items on the Dirty Dozen list involve fraud, such as identity thef ..read more
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Tax-Saving Tips: Estimated Tax Penalties
SDA CPA Group
by SDA CPA Group
2M ago
The United States has a “pay as you go” tax system in which payments for income tax (and, where applicable, Social Security and Medicare taxes) must be made to the IRS throughout the year as income is earned, whether through withholding, by making estimated tax payments, or both. You suffer an estimated tax penalty if you don’t pay enough to the IRS during the year. The IRS levies this non-deductible interest penalty on the amount you underpaid each quarter. The penalty rate equals the short-term interest rate plus three percentage points. Due to the rise in interest rates, the current penalt ..read more
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1099 Deadline Imminent
SDA CPA Group
by SDA CPA Group
3M ago
1099s are due to recipients by January 31st. A list of all vendors who have been paid $600 or more for services or rent payments (not for products) and are unincorporated need to be issued a 1099. Please get a tax ID and address on form W-9 for each vendor to your accountant by January 22nd at the latest so we can file on your behalf. Important note: If another payroll provider, such as ADP, is handling 1099s for you, please let us know. Sometimes they collect the information and do not file, and sometimes they will file. This can cause duplicate filings and more confusion. Check with your pa ..read more
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Six Proven Business Tax Strategies to Make the IRS Owe You Money
SDA CPA Group
by SDA CPA Group
4M ago
The purpose of this article is to reveal how you can get the IRS to owe you money. Of course, the IRS will not likely cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay less in taxes. Here are six powerful business tax deduction strategies you can easily understand and implement before the end of 2023. 1. Prepay Expenses Using the IRS Safe Harbor You just have to thank the IRS for its tax-deduction safe harbors. IRS regulations contain a safe-harbor rule that allows cash-basis taxpayers to prepay and deduct qualifyi ..read more
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Your Stock Portfolio: Seven Strategies for Lowering Your Tax Bill
SDA CPA Group
by SDA CPA Group
4M ago
When you take advantage of the tax code’s offset game, your stock market portfolio can represent a little gold mine of opportunities to reduce your 2023 income taxes. The tax code contains the basic rules for this game, and once you know the rules, you can apply the correct strategies. Here’s the basic gist: Avoid the high taxes (up to 40.8 percent) on short-term capital gains and ordinary income. Lower the taxes to zero—or if you can’t do that, lower them to 23.8 percent or less by making the profits subject to long-term capital gains. Think of this: you are paying taxes at a 71.4 percent ..read more
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Unlock Tax Advantages: Six Essential Medical Plan Strategies
SDA CPA Group
by SDA CPA Group
4M ago
All small-business owners with one to 49 employees should have a medical plan for their business. Sure, it’s true that with 49 or fewer employees, the tax law does not require you to have a plan, but you should. When you have 49 or fewer employees, most medical plan tax rules are straightforward. Here are six opportunities for you to consider: If you have not claimed the federal tax credits equal to 100 percent of the required (2020) and the voluntary (2021) emergency sick leave and emergency family leave payments, amend those returns now. You likely made payments that qualify for the credit ..read more
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Maximize Your Retirement Savings Before Year-End
SDA CPA Group
by SDA CPA Group
4M ago
The clock continues to tick. Your retirement is one year closer. You have time before December 31 to take steps that will help you fund the retirement you desire. Here are five things to consider. 1. Establish Your 2023 Retirement Plan First, a question: do you have your (or your corporation’s) retirement plan in place? If not, and if you have some cash you can put into a retirement plan, get busy and put that retirement plan in place so you can obtain a tax deduction for 2023. For most defined contribution plans, such as 401(k) plans, you (the owner-employee) are both an employee and the emp ..read more
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