Managing taxes of a small business has got to be the most tiring task, but beyond it lies the glory. Once you have taken care of the finances, everything else tends to fall into place as it removes the obligation from your mind.

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Article Highlights: Filing Requirements Changing Filing Status Social Security Benefits Traditional IRA Deductibility Roth IRA Contribution Restrictions Higher Education Interest Deduction Itemized Deductions Medicare Premiums Child & Dependent Care Credit Earned Income Tax Credit (EITC) Premium Tax Credit (PTC) Tax Rates Other Limitations Married taxpayers have two options when filing their 1040 or 1040-SR tax returns. The first and most frequently used filing status is married filing joint (MFJ), where the incomes and allowable expenses of both spouses are combined and reported on one tax return. The joint status almost always results in the lowest overall tax. Spouses who file together are jointly liable for the tax, meaning either or both can be held…

Cash flow has always been a challenge for restaurants, and before COVID-19 changed everything there were thousands of articles written about the importance of forecasting, streamlining overhead, and controlling inventory. But more than a year-and-a-half into the pandemic, more than 110,000 restaurants have closed their doors permanently. Those restaurants that survived (and even thrived) in the face of closures, reduced seating, and staffing shortages went beyond traditional cash flow strategies, finding ways to reduce costs, expand sales, and pivot their entire menu. With reports of variants squashing hopes of a true return to normal, here are some of the cash…

Identity theft is a crime that is on the rise, in both number and their fraudulent technique. Watch this video and learn how to protect yourself and your family before it's too late. Printable PDF

October 15 - Corporations File a 2020 calendar year income tax return (Form 1120) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension by April 15. October 15 - Social Security, Medicare and withheld income tax If the monthly deposit rule applies, deposit the tax for payments in September. October 15 - Nonpayroll Withholding If the monthly deposit rule applies, deposit the tax for payments in September. Printable PDF

October 12 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during September, you are required to report them to your employer on IRS Form 4070 no later than October 12. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the…

Article Highlights: October 15 is the extended due date for filing federal individual tax returns for 2020. Late-filing penalty Interest on tax due Other October 15 deadlines The normal April 15, 2021 filing deadline for 2020 individual tax returns was extended by the IRS to May 17, 2021, due to the continuing Covid-19 pandemic. If you could not complete your 2020 tax return by May 17 and are now on extension, that extension expires on October 15, 2021. Failure to file before the extension period runs out can subject you to late-filing penalties. There are no additional extensions (except in designated disaster areas), so if you…

Though it’s natural for management to focus on its profit-making areas, the importance of a sound accounting foundation to support the operation cannot be overemphasized. The more diligent and meticulous your accounting team is, the more easily the rest of the organization can function and grow. If the system you currently have in place is relying on charts of accounts that are sloppily maintained and leading to delays or penalties regarding tax liabilities, that’s where your initial attention needs to be placed. Focus on the chart of accounts first, no matter how tempting it is to worry about the fees…

Article Highlights: Increase in Corporate Tax Rate Increase in Top Marginal Individual Income Tax Rate Increase in Capital Gains Rate for Certain High-Income Individuals Deduction for Certain Employee Trade or Business Expenses Application of Net Investment Income Tax to Trade or Business Income Limitation Qualified Business Income Deduction Limitations on Excess Business Losses of Noncorporate Taxpayers Surcharge on High-Income Individuals, Trusts, and Estates Termination of Temporary Increase in Unified Credit Estate Tax Valuation for Real Property Used in Farming Certain Tax Rules Applicable to Grantor Trusts Valuation Rules for Certain Transfers of Nonbusiness Assets Contribution Limits for Individual Retirement Plans Increase in Minimum Required Distributions Limiting Back Door IRA Conversions Statute of Limitations with Respect to…

At its core, a family business is exactly what it sounds like: a company or other enterprise owned, operated, and actively managed by at least two people from the same family. This can be a parent and their kids, two siblings, or some other configuration — it doesn't actually matter, as the management is made up of people with some type of similar close relation. According to one recent study, family businesses make up between 80% and 90% of all business enterprises in North America. They contribute approximately 64% to the gross domestic product of this country, equaling roughly $5 trillion…

The IRS has long been a bogeyman for the American public, and there’s good reason for that. They have the unique ability to do what few other creditors can: taking your home and selling it out from under you. Still, despite its remarkable powers, fear has created mythologies around the agency. People both overestimate and underestimate the IRS’ abilities. Unfortunately, not being well versed in IRS procedures makes dealing with them that much more frustrating and fear-inducing, and there are very few taxpayers who are up to the task. Between the complexities involved in all aspects of tax audits and the…