Offshore Accounts and Taxes

U.S. taxpayers must report their worldwide income on their tax returns. Due to our government’s need to increase revenue, the IRS is actively searching for violators. When caught, the penalties for failing to disclose can be harsh, ranging from huge penalties,...

Should You Form a Limited Liability Company?

Limited Liability Companies (LLC) combine components of a partnership and a corporation. An advantage of an LLC is that it legally separates the business from the owners. Thus, personal assets cannot be used to collect business debts. For tax purposes, owners have the...

Make Next Year’s Tax Preparation Easier

 Now that you have filed your 2018 tax return, it is time to start working on your taxes for next year. Doing so now could make things much less painful later. Here are the most significant tax changes for 2019, as well as a few things you can do to prepare for your...

Will Tax Planning Benefit You?

 When we review tax returns of new clients, we usually find they were paying more taxes than they needed to. Most had either prepared their tax returns themselves or did not receive enough advice from their previous tax preparer. The most prevalent problem is failure...

Spousal Support IRS Tax Deduction Changes

 As of January 1, 2019, recipients of alimony will no longer be taxed by the IRS on spousal support received. However, paying spouses lose the eligibility to claim spousal support payments as a tax deduction, which was previously provided under Section 215 of the...

The New Tax Law and Rental Real Estate

 There is good news for most rental property owners. The 2018 Tax Cuts & Job Act (TCJA) not only reduces income tax rates but also provides breaks for rental real estate owners. The TCJA includes a new tax deduction that helps most rental real estate property...

Costs of Incorporating Your Business

Business owners choose to incorporate their business because they perceive tax advantages, believe it will help their image or wish to limit their personal liability. If personal liability is a concern for you, we recommend working with an accountant or attorney to...

Common Payroll Mistakes Is it time to outsource?

 According to the IRS, each year 40 percent of small business owners who handle their own payroll taxes pay penalties for late filings and mistakes. Tax penalties can be expensive, requiring interest and fines on the amount overdue. The IRS and California’s Employment...

Are You Worried About Being Audited?

Now that you have filed your taxes for 2017, you may wonder what your risk is of an audit by the IRS. The good news is that audits have become less likely. The agency has trimmed back despite the growth in population, and the number of audits has dropped 40 percent...

California Tax Audit Dilemmas

The Franchise Tax Board (FTB), which is responsible for enforcing California Income Tax laws, is not California residents’ and businesses’ best friend. This is especially true with the individual tax rate at 13.3 percent and business rate at 8.84 percent. Furthermore,...

Tax Considerations for California Residents

 The new tax law will prove beneficial for millions of Californians. However, there are also many who will receive a significant blow due to high property taxes and a reduction in the number of allowable deductions. Regardless, whether you stand to prosper or pay more...

Have You Filed Your Tax Return?

It is April again and your taxes are due. The deadline this year has been extended to Tuesday, April 17th. Not Ready to File? If you are not ready, you need to file an extension request via IRS Form 4868 on or before the April 17....

Gifts from Foreigners: Are they Taxable?

One of the most misunderstood tax issues is whether you will be taxed for inheritance or gifts received from non-resident alien relatives. The simple answer is gifts and bequests are not taxable, since the gift giver is not subject to US taxation. However, there are...

Tax Rates for 2017

As we approach the conclusion of 2017, holiday season and taxes are probably the three most prevalent subjects on the minds of most people. Therefore, we believe providing you information concerning 2017 taxes may provide you a better picture concerning what to expect...

How to Conduct Yourself During an IRS Audit

You are about to experience a full-blown audit on a recent tax return. How will you conduct yourself? Here are some essential guidelines. Procure professional help: Get yourself represented by an enrolled agent, CPA or a tax attorney. Your tax professional knows your...

Self-Employed and Tax Audits

Starting a Business Often our tax clients ask us if they should start a side business to reduce tax liability. Our answer is if the sole reason is to reduce taxes, it is a bad idea. For example, if you are employed full time and have a part-time business that reports...

Are You at Risk of a Tax Audit?

 Now that you have filed your taxes for 2016, you may wonder what your risk is of an audit by the IRS. There are several factors the IRS considers red flags that increase the potential of an audit. The good news is, however, chances are slim you will be chosen. In...

Should You Outsource Your Payroll?

 Many business consultants urge their clients to outsource non-core functions— those not required to fulfill the value proposition of a company to its customers. On top of their list is usually payroll. The main reasons why we cover here. 1. IRS Penalties: According...

Have You Filed Your Tax Return?

 It is April again and your taxes are due. The deadline this year has been extended to the 18th because the 15th falls on a Saturday, and Emancipation Day is being celebrated on the 17th. What If You Are Not Ready to File by the 18th? If you are not ready, you need to...

Review of Tax Rates for 2016

 As we approach the conclusion of 2016, the results of the recent election, holiday season and taxes are probably the three most prevalent subjects on the minds of most people. Therefore, we thought providing you information concerning 2016 taxes might help provide...

The Sand Fire and Tax Credit Relief

 We wish to express our warmest wishes to those who suffered loss due to the Sand Fire, and thank the thousands of firefighters who risked their lives to protect the citizens of the SCV and adjacent areas. For those who suffered personal or business property damage,...

More Tips on Choosing a Payroll Service

It is crucial for small businesses to have a payroll system that is efficient, accurate, timely and thorough. If you have decided it would be more effective to outsource your business’s payroll, perform a diligent search for a service that will set up your payroll...

Outsourcing Payroll and Choosing a Service

 Not every company needs a payroll service. Certainly, if you have a small salaried staff, rarely experience personnel changes and are not looking to expand, you might prefer continuing to process your payroll internally.  Most other business owners, however, usually...

How to Reduce Your Tax Liability

 It is already March. If you have not yet filed, chances are you are not expecting much of a refund or believe you will owe more tax. The root of your frustration is probably inadequate tax planning. When you meet with your tax preparer, he or she should be able to...

Review of Tax Rates for 2015

 As we approach the conclusion of 2015, the holiday season and taxes are probably the two most prevalent subjects on the minds of most people. Therefore, we thought providing you information concerning tax changes might help provide you a better picture concerning...