Payroll taxes can be a minefield for small employers

  • March 31, 2009

More small businesses get into trouble with the IRS over payroll taxes than any other type of tax. Payroll taxes are a huge source of government revenue and the IRS takes them very seriously. It is actively looking for businesses that have fallen behind in their payroll taxes or aren't depositing them. When the IRS finds a noncompliant business, it hits hard with penalties.

Am I overpaying in withholding and estimated tax?

  • March 31, 2009

Although an annual review of your form W-4 (Employee's Withholding Allowance Certificate) or estimated tax payments is always important, it may be particularly imperative to do so in 2009. The current economic recession and other changes to your personal and financial situation may have had, and will continue to have, a significant impact on your income. Moreover, recent changes in the tax law, including extensions of certain deductions and credits through 2009, make accurately estimating your tax and ensuring you are not overpaying in withholding all the more important. Changes in the latest stimulus tax package likely will require further adjustments to withholding and estimated tax for many taxpayers.

“Reasonable” compensation: Hot button for IRS auditors

  • March 31, 2009

In order to be tax deductible, compensation must be a reasonable payment for services. Smaller companies, whose employees frequently hold significant ownership interests, are particularly vulnerable to IRS attack on their compensation deductions.

Payroll and Cobra Provisions of the Economic Stimulus Plan

  • March 28, 2009

As published on the AICPA's Economic Crisis Resource Center: Several provisions of the economic stimulus plan may have a significant impact on your company or clients’ business, including the “Making Work Pay” tax credit and a host of COBRA requirements and provisions, ranging from a special 60-day election period and an additional plan enrollment option for COBRA recipients. Read the article for a summary of the provisions that may affect your business.

AICPA Develops Website Devoted to the Economic Crisis

  • March 28, 2009

The AICPA has developed a website to help deal with issues we are faced with during the economic crisis. The About Us section explains the intent of the website.

Dependency Status For A Child Of Divorced Or Separated Parents

  • March 11, 2009

The February 2009 issue of the AICPA's Tax Advisor gives a great overview of some of the pitfalls and challenges dealing with dependents of divorced parents.

All-Electric Tesla Roadster…0-60 In 3.9 Seconds And Saves Tax Dollars

  • March 10, 2009

If you purchase an all-electric Tesla Roadster (base price $109,000) you can receive up to a $7,500 tax credit under the American Recovery and Reinvestment Act of 2009. Read about this and other Green Energy Tax incentives in the new tax act summerized in the latest Journal of Accountancy article.

American Recovery and Reinvestment Tax Act of 2009 extends/creates business tax breaks

  • March 2, 2009

The American Recovery and Reinvestment Tax Act of 2009 (ARRTA) provides more than $75 billion worth of tax benefits for business for 2009 and 2010, in addition to numerous individual tax breaks. This article highlights some of the valuable tax breaks for businesses in the new law.

Individual tax incentives abound in American Recovery and Reinvestment Tax Act of 2009

  • March 2, 2009

The American Recovery and Reinvestment Tax Act of 2009 (ARRTA) is loaded with various tax incentives for individuals for 2009 and 2010. Among the individual tax breaks in the new law are incentives for homeownership, help for the unemployed and employed, as well as education assistance and tax breaks for taxpayers with children. This article provides an overview of the major individual tax incentives provided by the ARRTA.