Archive for the 'Tax Tips' Category


Taking your R&D Credit: Offsetting Payroll Tax

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The Research and Development Tax credit has taken a lot of criticism for being un-impactful. One reason is the business generating the credit had to have income to use the credit.

Since the PATH act, small businesses in their first 5 years with less than $5 million of gross revenue can use what once was only a federal income tax credit as a payroll tax credit. See my previous blog about the details and how to maximize the credit.

Since my article,

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Your Unicorn has Arrived, Tech Startup

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Everyone knows the Research and Development Tax Credit has changed in a big way for startups. (OK, not everyone, but everyone should — especially tech startups, and Utah County is full of them). So listen up…

In the past, tech startups have never had an appetite to try to scrape together a Research and Development Tax Credit calculation because doing so didn’t save them any money, at least not in the current year. That’s because, in the past, the credit would only

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Could switching to an S Corporation impact the tax you owe?

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As a sole proprietor of a growing small business, you’ve reported your income on your personal tax return and paid self-employment taxes on all of your net earnings. Perhaps that’s no big deal if you haven’t been paying a lot of money in taxes anyway. Well, that has all changed and you are now making more money (yay!) and projecting continued growth and stability. All of the success turns ominous at tax time when you discover how much tax is

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Are you prepared for the new 1099 filing deadline?

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1099s will be due to the IRS earlier than ever before starting next year.  Is your business prepared?  The IRS has moved the filing deadline up to January 31st starting in 2017.  Now is a good time to get your books up to date and identify who will need a 1099.  Don’t wait until the last minute!

Does your business need to file a 1099?

Generally, a 1099-MISC should be issued to any individual or entity paid $600 or more for nonemployee

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I Medaled at the Olympics and All I Got Was a Bigger Tax Bill

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We all want to win. My most recent brushes with victory have come in my family’s March Madness pool, the city league softball tournament, and a rousing game of Uno played with my four-year-old niece. All I got for these wins was a few minutes of bragging rights. But for four talented Utahns, their victories could come on a bigger stage. If these athletes medal in Rio, they’ll come back with plenty to brag about. But when can winning come with a price

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Why can’t I claim my dog as a dependent?

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My furry friend is just like any other member of the family. He has a health insurance policy, he needs to be fed and I will even admit to clothing my poor dog. So why can’t I deduct him on my taxes? This is one of the great mysteries of my life.

But I digress; instead of ranting about what I feel should be deductible, I’ll share legally deductible items that are commonly overlooked.

In-kind donations to organizations like Deseret Industries, Savers

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Tips for a Smoother Audit and Tax Return

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It’s in the nature of most of us accountants to become so lost in the details of our tasks that we can lose sight of our end goal. When I was a fresh-faced new staff I was assigned to complete a tax form that I hadn’t seen before. I set to work filling it out, looking through each box and double-checking the numbers I’d entered to make sure they were accurate. I filed the form and submitted payment on behalf

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IRS Offers Small Businesses Limited Relief for Health Coverage Reimbursement Arrangements with Notice 2015-17

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Some health coverage reimbursement arrangements offered by small employers (those with less than 50 full-time employees) are considered by the IRS to be non-compliant with the health coverage plan requirements set forth in the Affordable Care Act (ACA). Beginning January 1, 2014, employers who offer such plans were facing a significant penalty: an excise tax of $100 per employee per day, up to an annual maximum of $36,500 per employee. Employers should breathe a sigh of relief, however, because on

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Don’t Be a Victim! Beware of Scams Targeting Taxpayers

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This Tax Season with the rise of identity theft and tax and financial fraud, it is critical that we all remain vigilant about protecting our sensitive personal and financial information—especially during tax season. Being alert to any attempts by criminals to intercept your information is one important way you can protect yourself. The IRS recently issued the following alerts about a new crop of tax season scams. Take a few moments to review this information to keep yourself safe from

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Obama 2016 Budget Attacks Retirement Plans

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President Obama’s 2016 budget proposal revealed a number of proposals which would negatively affect retirement plans and provided insight into risks for future retirement planning. The budget is a wish list of tax increases, spending programs, and other policy initiatives, many of which Congress has already pronounced “dead on arrival”.

While these provisions are unlikely to pass now, that could change if Democrats regain control of both houses.  Below is a partial list of the most onerous proposals:

Tax benefits for retirement contributions limited
The

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