Are they my Dependent? Qualifying Child
According to the IRS list of Frequently Asked Tax Questions, there is some confusion out there as to exactly when a taxpayer can claim someone as a dependent. So let’s see if we can shed some light on the subject. There are two categories for …
Senate Bill 459 – The Scarlet Letter
The thinking behind the infamous scarlet letter is alive and well in California government. Last month Gov. Brown signed into law Senate Bill 459, concerning the misclassification of workers. In addition to the large fines for willful misclasification (up to $25,000 per violation), employers must …
Why your business should have community outreach programs
Step 71 of the Business Owners Handbook encourages business owners to establish ethics and community outreach programs early in their planning cycle, but many small business owners still question how some of these programs will help their business.
Out with the Old: Records You Can Toss
As many of you have already wrapped-up your tax returns and finding someplace to keep all of the supporting documentation, one of the questions we often here is “How long should I keep this?”. Here’s what you need to keep and what you can throw out without fearing the wrath of the IRS.
IRS Circular 230 Disclosure – What Does it Mean
It’s at the bottom of every email that our office sends out, and at the bottom of all of our web pages. Chances are, it’s even been at the bottom of a letter or two we have sent you. It’s the Circular 230 disclosure, and you will find it in some variation in just about any piece of correspondence from Accountants, Lawyers, or Tax Preparers.
Funding Your Dreams
It’s all part of the American dream – come up with a good idea, borrow some money from the bank, and live comfortably on the proceeds from your own business. And with the recent downturn causing many ill-managed businesses to fold, the opportunities are plentiful.
Direct Deposit – Wrong Account Number?
If you request your refund by check and someone else deposits it, it is a simple matter to have the IRS reverse the deposit and send you a replacement – but what happens if you put down the incorrect information for a direct deposit?
Controlling Your AP Processes
Accounts Payable is a part of any healthy business – so are local government agencies. And as your business gets more complicated, you get more invoices, and report to more government agencies.
When to Ask for Help
Bookkeeping is just a matter of balancing your checkbook and categorizing the payouts. And accounting is just the next step in the process – analyzing the categorized numbers. And if that was all an accountant or bookkeeper did, I would say go for it – buy a copy of QuickBooks and save yourself a bit.
But the financial side is the least of what accountants do.
Mortgage Interest – Deductible?
Mortgage rates are still at some of the lowest rates seen in years, and with some of the current programs like the HARP program, allowing a debt to value ratio of 125%, many people are taking advantage of them.
Unfortunately, not everyone understands what is deductible or non-deductible mortgage interest. And since it all is reported on a single form, the IRS is starting to take a much closer look at this on people’s individual returns.