The IRS is staffing up to audit the billionaires in the American middle class. In my opinion, they will be hiring specialists to go after low-hanging fruit where the IRS knows compliance is lax. Charitable Contributions are an easy audit … Read more »
Background The subscription model is the new normal. Software and a host of business services now work primarily on this model. Business service providers are increasingly under pressure from more nimble competition. Their reaction draws inspiration from the annuity contract … Read more »
The WOTC is a federal program that provides tax incentives to employers for hiring and retaining individuals who have been determined by the Department of Labor (DOL) to face barriers to hire. With different names, it has been in existence … Read more »
Do you own a successful Specified Service Trade or Business? You may be poised to enter the “SSTB Gauntlet” tax zone. Definition of a Specified Service Trade or Business: A specified service business is a trade or business to which … Read more »
There’s been an increased scrutiny of 1099s by most tax and labor agencies (and insurance companies BTW) in recent years. This is happening at federal and state levels. A recurring theme is the agency will want to recharacterize time billed … Read more »
There are many articles on the internet about small and medium sized business embezzlement cases and suggestions on how to avoid it. There are perhaps couple of unwritten, chapters to the fallout of embezzlement that are worth knowing. Personnel / … Read more »
The EBAN (Employee By Another Name) dilemma regarding reimbursed expenses In the last 10 years there has been an explosion of workers who were previously conventional W-2 workers earning a salary who now find themselves self-employed by the same or … Read more »
You’re a builder, so why would you get the Domestic Production Activities Tax Deduction? Because you produce something (it’s not just for manufacturers). What is it? The deduction is 9% of net income from qualified “production” activities (not just traditional … Read more »
I got a couple of email questions regarding a post earlier this year about expensing fixed assets purchases that are $2,500 or less in cost. This is the “De Minimis Rule”. It’s your friend. Background: The Internal Revenue Code generally … Read more »
It’s tempting to hire staff as contractors; skipping costs for insurance, payroll taxes and administrative time. It’s particularly tempting in bringing someone on-board on a trial basis or for part-timers. The IRS has 20 factors to consider to determine if … Read more »