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Tax pro tips, ideas, latest news and legal updates explained in plain language to help
you keep compliant, avoid any penalties, and grow your small business finances.
Business deductions and tax breaks
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• 30.10.24
Form 8881: tax credit for small employer pension plan startup costs
A retirement plan is one of the most valued employee benefits. The Employee Benefit Research Institute (EBRI) found that having access to a retirement savings plan through an employer greatly contributes to workers' feelings of financial security.
Still, 43% of private-sector small businesses do not provide retirement benefit plans to their...
• 13.09.24
Form 8882: Guide to employer-provided childcare tax credit
Competitive compensation is not enough to attract top talent. Businesses should now consider providing attractive employee benefits to hire and retain highly skilled professionals.
If you have employees with young children, employer-provided childcare is one of the benefits that they might highly value. The IRS recognizes the importance of...
• 05.09.24
Form 8846: FICA tip credit for employers
If you own a bar, restaurant, or food delivery service, you may have encountered the challenge of managing and reporting your employees' tips.
Even though tip income is not part of the wages you pay your workers for their regular job duties, it is still considered taxable. As an employer, you're responsible for paying income taxes on your...
Filing taxes by entity
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• 03.12.24
Kids payroll on S corp: disadvantages for small businesses
Hiring your children to work in your business might seem like the perfect strategy – offering tax savings while giving your kids valuable exposure to professional life.
But when your business operates as an S corporation, this can become a minefield of tax and compliance challenges. S corps face strict rules regarding payroll taxes and...
• 22.10.24
Form 8825: a guide for business owners
If you're a small business owner running a partnership or an S corporation that generates income from rental real estate, Form 8825 is a tax form you'll need to understand. This form helps you report income, deductions, and other financial details related to your rental properties.
In this guide, we'll walk you through Form 8825, explain its...
• 16.07.24
S corp vs. partnership: What are the differences?
Choosing a business structure is a big decision that affects your responsibilities, taxes, and personal liability. Two popular options for US-based small business owners are an S corporation and a partnership. Each comes with its own set of advantages and drawbacks.
This blog post will explain the differences between S corporations and...
Latest tax news & updates
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• 22.08.24
IRS reminds truckers of upcoming tax deadline
The IRS has issued a reminder for those who operate large trucks and buses to file Form 2290, Heavy Highway Vehicle Use Tax Return, by Tuesday, September 3, 2024.
This deadline applies to vehicles that were first used in July 2024.
The usual August 31 deadline has been extended to the next business day due to the date falling on a Saturday...
• 27.06.24
IRS unveils revised draft Form 6765 for Research Credit following public feedback
The IRS has announced the release of a revised draft of Form 6765, known as the Credit for Increasing Research Activities.
This update follows valuable feedback from various external stakeholders, aimed at reducing taxpayer burden and improving the consistency and quality of information received for tax administration.
Key changes to Form...
• 26.06.24
Court halts organization’s grants to Black women entrepreneurs
Fearless Funds, an Atlanta-based venture capital firm's nonprofit grant program, was recently halted by a federal appeals court.
This program, aimed at supporting small businesses owned by Black women, came under scrutiny following a lawsuit led by Edward Blum, known for opposing affirmative action.
Grants program and lawsuit...
Small business tax planning tips
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• 19.08.24
1099-NEC vs. 1099-MISC: Understanding the key differences and when to use each
When it comes to filing taxes for non-employee compensation and miscellaneous income, businesses must be clear about which IRS forms to use.
The two most common forms – 1099-NEC and 1099-MISC – serve distinct purposes and have different reporting requirements.
Also read. 1099 Forms for LLCs: A comprehensive guide to compliance and best...
• 25.07.24
Understanding the differences between excise tax and sales tax
Taxation is a complex and integral part of any economy, influencing consumer behavior, business operations, and government policies.
Among the various types of taxes, excise tax and sales tax stand out due to their specific applications and impact.
This article aims to elucidate the differences between these two taxes, providing clarity on...
• 09.07.24
Maximizing financial efficiency: Understanding and managing tax overpayment
Tax overpayment occurs when individuals or businesses pay more taxes than they owe, often leading to refunds.
While receiving a refund might seem beneficial, overpaying taxes essentially grants the government an interest-free loan.
This article explores the concept of tax overpayment, its implications, and strategies to optimize tax...
