Hiring people is one of the most important things you do as a business owner and often there can be some gray area as to whether a person is an independent contractor or an employee.  This distinction is very important and can be very costly in the form of penalties and fines, if the wrong classification is made. 

If you are an owner-employee or have employees, it is important to know the tax rules for employee business expenses. In this segment of our Tax Update, we will explain the reporting and deduction requirements for expenses incurred by employees in connection with your business. 

No doubt about it, tax audits can be stressful!

Who wants to go through an IRS or state tax No one wants to have the experience of going through an IRS examination. But if you do receive a tax exam notice, what should you do?  That is the subject of this week’s Tax Update.

Since the Inauguration of Donald Trump as President, Tax Reform has ground to a halt, as Health Care Reform and other more controversial matters have captured Capitol Hill’s attention.  One little noticed proposal some Congressmen are favoring is the elimination of the business interest deduction on loans and other debt. 

With continuing phone, e-mail and in-person scams rampant, in this segment of our Tax Update, we will help you understand how and when the IRS contacts taxpayers, and how to determine whether a contact is truly from an IRS employee. 

While the IRS initiates most contacts through regular mail delivered by the U.S. Postal Service, IRS employees do in fact make official, sometimes unannounced, visits to taxpayers as part of their routine casework. Visits typically fall into three categories:

If you are an existing business owner who is considering expanding into a new line of business or a new owner who incurred costs starting your business, you need to be aware of start-up expenses.  Start-up expenses are a special category of tax deductions which would otherwise be nondeductible until the business is disposed, but can be expensed up to a limit with the balance amortized over 15 years. 

A business tax reform proposal by Republicans in the U.S.

Summer is here, and that means it is time to get outside and enjoy the sunshine! If your business hosts summer employee outings then the business is eligible to write-off 100% of the expenses for tax purposes. So what are the rules for deducting meals and entertainment expenses?  That is what we will explain in this segment of our Tax Update.

Many business owners assume that all meals and entertainment expenses are automatically subject to a 50% limitation.  This is not necessarily so. There are many meal and entertainment expenses which are 100% deductible.