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Thursday, May 18, 2017

Filing Past Due Tax Returns


  

It is in your best interest to file all tax returns that are due, regardless of whether or not you can pay any tax due in full.

 

Here's Why You Should File Your Past Due Tax Returns...NOW

 

1-Limit interest interest charges and late payment penalties.

 

2-Avoid the risk of losing a tax refund you were due.

 

3-Protect Social Security & Disability Benefits

 

4-Avoid issues obtaining loans.

 

What Happens If You Don't File Voluntarily?

 

If you fail to file your tax return, the IRS may file a substitute tax return for you...one that will be the worst of all worlds since they will report only income and no, exemptions, deductions and tax credits you may be entitled to.

 

If You Need Information To File A Prior Year Tax Return

 

If you need wage and income information, complete Form 4506-T Request for Transcript of Tax Return, and check the box on line 8. This way you be be sure you are reporting all income when you do file your tax return and avoid having the IRS sending you a notice for unreported income.

 

 

This article was written by Donald M. Scherzi, CPA, CFP, LLC

Mike Lupo, SCORE Counselor


 

 

Thursday, May 11, 2017

When it all works right



We recently had the need to replace a washer/dryer. The old one just got tired and was preparing to go out with a lot of noise. We searched all the big suppliers and found that an exact replacement was not generally available. We knew our system was old. After a few days of on line searching, I found one and only one potential supplier that had a few similar units. Much to my surprise their web site had an exact model replacement. A phone call determined that they did, in fact, show a few in of them in inventory. The site reflected an unusually low price as well, and the phone conversation confirmed the price.

We were in the store within hours and purchased the exact replacement for the price shown. But this is only part of the story. That evening the washer completely failed. The store confirmed a delivery date within three days and time, within four hours. When the time passed, we called and were told the truck broke down, but they expected to make the delivery later that day. They did, after renting a replacement truck and shifting the items to be delivered on the route. I knew this was true because of the rental truck company name on the vehicle. They overcame the issues with three very tired delivery men. These men removed the old unit, installed and checked out the new one and made sure we were satisfied before they left.

 

We recommended this store to three friends who were also pleased. Now we are considering replacing a stove, oven and dishwasher. Guess where we will be going!!!

 

How does your business stack up?

 

 

Steve Koenig, SCORE Counselor


 

 

Sunday, May 7, 2017

Business Conference a BIG SUCCESS

South Palm Beach SCORE Business Conference was a BIG SUCCESS


Jennifer Suzuki not only helped us at the Conference, she shares her thoughts (as a client) with the "world"
---------- Forwarded message ----------
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Date: Sat, May 6, 2017 at 1:14 PM



Jennifer Suzuki said she was with you at Saint John Paul II Academy in Boca Raton, FL . Jennifer wrote: "Speaking to business owners at an unbelievable SCORE event here in BOCA Raton, FL. Hoping to inspire local businesses here in South Florida to identify and follow their purpose, passions and plan. #SCORE #FloridaBusiness For those of you unfamiliar with this non-profit, we live in a great country that provides invaluable resources to be your own boss and thrive as an Entreprenuer!! #SmallBusiness #eDealerSolutions" Learn more about tagging on Facebook .
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Jennifer Suzuki said she was with you at Saint John Paul II Academy in Boca Raton, FL.
Jennifer wrote: "Speaking to business owners at an unbelievable SCORE event here in BOCA Raton, FL. Hoping to inspire local businesses here in South Florida to identify and follow their purpose, passions and plan. #SCORE #FloridaBusiness For those of you unfamiliar with this non-profit, we live in a great country that provides invaluable resources to be your own boss and thrive as an Entreprenuer!! #SmallBusiness #eDealerSolutions"
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Monday, May 1, 2017

Amortization Expense




The tax laws offer new and existing businesses the opportunity to deduct amortization expense on various intangible assets acquired and used for business purposes.

Common intangible assets include: Business Start-Up Costs, Business Organization Costs, Copyrights, Customer Lists, Franchise Agreements, Goodwill, Licensing Agreements, Non-compete Agreements, Patents, Trademarks/names, and Trade Secrets (Formulas and Recipes).

In order to compute the correct amount of amortization each year, the following records need to be maintained:

1-Description of the asset

2-Date Acquired

3-Date Purchased

4-Total Purchase Amount

5-Date Placed In Service for Business Use (If different form date acquired)

6-Business Use Percentage (if less than 100%)

IRS Publication 535 provides detailed information on intangible assets and amortization and is available for Free form the IRS by calling 800-829-3676.

The laws have specific rules for the various types of intangible assets which must be followed each year.

Amortization expense is thus a deductible business expense that helps a business owner reduce income taxes each year.

 

This article was written by Donald M. Scherzi, CPA, CFP, LLC

Mike Lupo, SCORE Counselor


 

 

 

 

Sunday, April 16, 2017

Hiring your children can lower your payroll tax bill


  

No FICA tax (Social Security tax and Medicare tax) is due if sole proprietors or husband-wife partnerships hire their children who are under age 18.

 

Ditto if the children work for a parent's one-person LLC that's disregarded  for tax purposes.

 

Also, Federal Unemployment Tax (FUTA) is not owed on their salaries until they reach age 21.

 

It is important that all of the formalities and record-keeping rules are followed when hiring children that would be followed when hiring any other employees.

 

Also, the children must actually perform services for the business and the pay should be reasonable based on the facts and circumstances.

 

This article was written by Donald M. Scherzi, CPA, CFP, LLC

Mike Lupo, SCORE Counselor


 

Monday, April 10, 2017

2017 Florida Small Business Issues




 

The South Florida Business Journal recently reported on a survey of the top 3 small business concerns as we move through 2017. The issues are:

 

1.      Hiring is a challenge as they anticipate growth while managing overhead costs. This concern seems to remain a dilemma for small-business owners wanting to see an appreciative improvement in revenue.

2.      Grow their revenue. Improving customer experience and retention was key to furthering success in 2016, followed by launching new products and expanding into new markets. Now what do they do?

3.      Dropping Health insurance due to the overburdening cost and opting to pay the penalty, which has become more cost-effective.

 

Check the full article for more details.

 

Steve Koenig, SCORE Counselor


 

 

Tuesday, April 4, 2017

IRS Penalty Relief


 
 

You may qualify for relief from IRS penalties if you made an effort to comply with the requirements of the tax law, but were unable to meet your tax obligations, due to circumstances beyond your control.

 

If you received an IRS notice, be sure to check that the information in your notice is correct. If you can resolve an issue in your notice, a penalty might not be applicable.

 

Penalties eligible for relief include:

 

  • Failing to file a tax return
  • Failing to pay on time
  • Failing to deposit certain taxes as required
  • Other penalties as applicable
     
    Types of Penalty Relief offered by the IRS include:
     
  • Reasonable Cause
  • Administrative Waiver
  • First Time Penalty Abatement
  • Statutory Exception
     
    Interest Relief:
     
    The IRS does not abate interest  for reasonable cause or as first-time relief. Interest is charged by law and will continue to accrue until your account is paid in full.
     
    When it comes to IRS penalties, always request an abatement before paying the penalty. If you pay the penalty first, you most likely will not be able to recover your payment from the IRS.
     
     
     
    This article was written by Donald M. Scherzi, CPA, CFP, LLC
    Mike Lupo, SCORE Counselor