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Tag Archive for Small Business

The Enhanced R&D Tax Credit Program Provides A True Path To Significant Tax Savings For Small Businesses

Peter Scalise

The Protecting Americans from Tax Hikes Act of 2015 (hereinafter the “PATH Act”) significantly enhanced the Federal-Level R&D Tax Credit Program (hereinafter “RTC Program”) under I.R.C. § 41 on a myriad of levels for both eligible “Small Businesses” and eligible “Start-Up Companies”. More specifically, the enhanced RTC Program has been considerably restructured for these aforementioned eligible companies to now:

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6 Steps to Get Your Business Startup on Track For Long Term Success

Barry Fowler37

It’s easy to think about startup businesses and consider the success or horror stories, but what about the average startups? The hard and bleak reality is that the majority of small business startups fail. So, to avoid being like the average startup, you need to create a plan for success.

Choose the Right Entity

One of the first steps to forge a solid start includes selecting the right entity for your business. This legal structure will affect the amount of paperwork you need to do and the legal ramifications you will face.

The right entity will help you reduce your liability exposure and minimize your taxes. You need to ensure your Read more

Repair Regs – Another Solution To “Elect-Out” of Rev. Proc. 2015-20 To Preserve Missed Deductions

Gian Pazzia

The IRS has recently written on their website that eligible taxpayers may elect out of Rev. Proc. 2015-20 by filing a statement with their 2014 tax returns indicating their qualifying trade or business is not applying the simplified procedure of Rev. Proc. 2015-20. Qualified small business taxpayers who accept the relief of Rev. Proc. 2015-20 automatically forfeit any opportunity to retroactively correct capitalized expenditures that should have been deducted in years prior to 2014.

A qualified “small business taxpayer” for this purpose is any business with total assets of less than $10 million or less than $10 million in average annual gross receipts (from prior three taxable years). Read more

Show Me the Money – Six Best Practices in Billings and Collections

Barry Fowler23

One area where most small-business owners can improve their cash flow is in billings and collections. A thorough credit check before you offer payment terms is not enough. Here are six best practices that can make a real difference in your cash balance at the end of every month.

1. Get it right.

One legitimate reason for nonpayment is a confusing or inaccurate invoice. Make sure your invoices spell out in clear, plain English what was purchased, the price, the payment terms (or when payment is due), the customer’s PO number, when it was shipped, to where it was shipped, and any tracking number. Read more

SMALL BUSINESS DAY! – WEDNESDAY, SEPTEMBER 23, 2015

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You Are Invited To Be Part of Internet History…
Join TaxConnections as we present incredible Tax Experts on Small Business Day at the Internet Tax Summit on Wednesday, September 23, 2015 beginning at 8:00AM (PDT).

Get your Complimentary VIP Ticket to watch and listen to Tax Experts on various topics affecting Small Business and Taxpayers.

8:00AM (PDT):
Why Are Home Based Businesses Being Targeted For Audits?
Clifford Benjamin, United States Tax Association, Daytona Beach, Florida Read more

What Small Business Owners Need To Know About Balance Sheets

Calculating numbers for income tax return with pen and calculator

The most effective way for small business owners to be sure that they are aware of their company’s financial status is to have an accurate balance sheet that reflects the most current information available. By keeping this information up to date every quarter, you can help yourself avoid a lot of problems and surprises down the road.

A balance sheet provides you with an at-a-glance summary of your company’s financial health as of a specific day. It is broken down into what the business’s assets are, what the business’s liabilities are, and the amount of owner or shareholder equity. The balance sheet gets its name from the fact that the assets must be balanced by and equal to the liabilities plus the equity. Some business owners have found current balance sheets so helpful that they update them every month. Read more

Cash Flow: The Pulse of Your Business

Cash flow word cloud image with hi-res rendered artwork that could be used for any graphic design.

Cash flow is the lifeblood of any small business. Some business experts even say that a healthy cash flow is more important than your business’s ability to deliver its goods and services! While that might seem counterintuitive, consider this: if you fail to satisfy a customer and lose that customer’s business, you can always work harder to please the next customer. If you fail to have enough cash to pay your suppliers, creditors, or employees, then you’re out of business!

What is Cash Flow?

Cash flow, simply defined, is the movement of money in and out of your business; these movements are called inflow and outflow. Inflows for your business primarily come from the sale of goods or services to your customers but keep in mind that inflow only occurs Read more

Start 2015 Tax Planning Now! Part 1

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Tax Code Changes Create Challenges

What should small business owners focus on for 2015 tax planning?

An  important,  yet  often  overlooked,  issue  for small business owners is the choice of the form of entity under which they operate. For 2015, this will become critical as Congress contemplates major changes to  the  tax  code.  Currently, the maximum   corporate federal tax  rate  is  generally  less  than the maximum individual tax rate. This has led many business owners to consider converting their sole proprietorships and pass through entities (such as S corporations and LLCs) into C corporations, which are taxed at the lower corporate rate. Caution must be exercised before making this change, Read more

TaxConnections Announces 500,000 Taxpayers Meet Tax Experts During Internet Summit

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During July 2015, TaxConnections will bring together 500,000 Taxpayers and Tax Experts in the first internet tax summit of this kind.

With the number of taxpayers calls taken by the IRS dropping to an estimated 38.5% this year, taxpayers need more answers than they are currently receiving. TaxConnections mission is bringing visibility to our tax professional members and connecting them to taxpayers who need their help!

Based upon polling, we are currently talking to speakers and sponsors on the following topics: Small Business, Internet Tax, FATCA, Tax Audits, Marijuana Tax, Healthcare Tax, Cadillac Tax and more…

If you would like to participate in this very exciting 500,000 Taxpayers and Tax Experts Internet event, please contact Kat@taxconnections.com today! Or, call 858-999-0053.

I Want To Join TaxConnections

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The IRS Streamlines The Methodology For Small Businesses To Comply With The Tangible Property Regulations

Examining Tax Law

On February 13 of 2015, The Internal Revenue Service (hereinafter the “Service”) streamlined the methodology for small business owners to comply with the Final Treasury Regulations (hereinafter the “regulations”) governing Tangible Property with newly released administrative authority.

Revenue Procedure 2015-20 permits small businesses to change a method of accounting under the regulations on a prospective basis for the first taxable year beginning on or after January 1 of 2014. Moreover, the Service is waiving the arduous requirement to file a Form 3115 Read more

IRS Issues Guidance on Estate-Gift Tax Pre-Appeals Conference Procedures

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IRS’s Small Business/Self-Employed (SB/SE) Division has issued interim guidance to its estate and gift tax auditors on procedures to use in connection with a taxpayer whose estate tax, gift tax, generation-skipping transfer tax, fiduciary income tax, or information return is being examined by estate/gift tax auditors, being eligible for an IRS Appeals conference.

After an IRS auditor completes an examination of a taxpayer’s tax return with respect to which the auditor wishes to propose adjustments, IRS provides the taxpayer a letter, a “30-day letter,” together with a computation report of proposed adjustments to the tax return. Read more

How The IRS Turned Carole Hinders’ Life Upside Down

S
Iowa restaurant owner’s fight against the IRS gains national attention.

A restaurant owner in northwest Iowa has landed in the national news spotlight over her fight with the federal government. Carole Hinders who at the time was 67 years old and a grandmother has operated Mrs. Lady’s Mexican Food in Arnolds Park, Iowa for 38 years.

Nowadays it is most notable for a small business to be in operation for 38 years – especially if it is a restaurant which we all know “come and go”. Even more notable for Ms. Hinders was that she was always in full compliance with her tax obligations. But despite her clean tax record, on May 22, 2013 while settling into a crossword puzzle with her grandchildren she was visited at her home by a pair of IRS agents who stated that they had closed her Read more

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