My state doesn’t have a state income tax. Am I still required to file a tax return for my business?

In some cases, yes. Some states that don’t have an income tax, still require that your business file a tax return. Texas for example, has no state income tax, but still requires businesses to […]

What are “Adjusting Journal Entries,” sometimes called “General Journal Entries” or “General Journal Adjustments”?

A company’s financial records are intended to track all transactions and provide company management with the ability to manage the business. The tax return information on the other hand is strictly used for tax […]

Tax FAQ Series – Calling the IRS to Request a Change – Isn’t It Simple?

What about contacting the IRS – can’t you just call them and let them know the change? In theory, yes. But it’s a very complex process. In order to contact the IRS, we have […]

Tax FAQ Series: Is it important for you to handle both my personal and business tax returns?

Yes, we believe it is. Here are 2 important reasons why. Your refund will likely be larger. Your audit risk will likely be smaller. The US Tax Code has evolved since 1861 when the […]

Tax FAQ Series – Why is there an amendment fee? I just need to change one simple thing.

You know the situation – your return is prepared then you find (or someone sends you) one more piece of tax data that needs to go on your return. You contact us and find […]

Tax FAQ Series – All About Estimated Tax Payments

What are Estimated Tax Payments? Let’s start with what they’re not. If you receive a W-2 wage from your employer or pay yourself a W-2 wage from your own business, there will likely be […]

Tax FAQ Series: When should a Form 1099-Misc be issued?

A 1099-Misc Form should be issued to Non-W-2 providers of services, including sole-proprietors, partnerships (including LLC’s that have elected to be taxed as partnerships), and independent contractors. However, you are not required to issue […]

Tax FAQ Series: What is the impact of the new bonus depreciation rules under the Tax Cuts and Jobs Act?

Under the new Tax Cuts and Jobs Act (effective for the 2018 tax year) the bonus depreciation rules have been loosened. Among other things, the change allows for 100% bonus depreciation for assets placed […]

My bookkeeper is asking for the year-end adjusting journal entries – what are they and do I need them?

We recommend that the company’s accounting records be maintained as the primary source of financial information and that you do NOT attempt to adjust these financial records to match the tax return information. Although […]

Tax FAQ Series: I’m an S-Corp – Do I need to pay myself a wage?

A: YES! While there are a few exceptions, the short answer is a simple and resounding YES! When you make the S-Election, you get a number of tax benefits. But one important requirement to […]