Tax document retention guidelines for small businesses
You may have breathed a sigh of relief after filing your 2017 income tax return (or requesting an extension). But if you have years’ worth of receipts, canceled checks and other tax-related records for your small business, you probably want to get rid of what you can. A good rule of thumb is to hold on to tax-related documents for at least six years. But you should keep some records longer. For example, keep property-related records at least seven years after you dispose of the property. And keep copies of returns themselves permanently. Contact us for details.
Helping Physicians Recognize They’re Burned Out
Physician burnout is not an isolated phenomenon. According to a 2015 Mayo Clinic study, nearly 55 percent of physicians reported at least one symptom of burnout including emotional exhaustion, depersonalization, or a sense of decreased personal accomplishment.
Taking it to the streets: 7 marketing strategies to consider
With so much focus on digital marketing these days, don’t overlook the possibilities of good, old-fashioned “street marketing.” For instance, set up a booth at an outdoor festival or public event to distribute info, samples and souvenirs. Dispatch employees into the crowd or busy neighborhoods to pass out brochures and post fliers. Or you can become the event by hosting social receptions or holding info sessions on topics of expertise. Attend small business seminars and chamber of commerce meetings as well. Contact us for more ideas for growing your business.
Individual tax calendar: Important deadlines for the remainder of 2018
Here are a few key tax-related deadlines for individuals through the rest of 2018. JUNE 15: Pay second installment of 2018 estimated taxes, if applicable. SEPT. 17: Pay third installment of 2018 estimated taxes, if applicable. OCT. 15: File a 2017 income tax return and pay any tax, interest and penalties due, if an automatic six-month extension was filed. DEC. 31: Incur various expenses that potentially can be deducted on your 2018 tax return. Contact us for more information about the filing requirements and to ensure you’re meeting all applicable deadlines.
TCJA changes to employee benefits tax breaks: 4 negatives and a positive
The Tax Cuts and Jobs Act includes many changes affecting tax breaks for employee benefits that will impact not only employees but also the businesses providing the benefits. Beginning with the 2018 tax year, the new law reduces or eliminates tax breaks in these 4 areas: transportation benefits, on-premises meals, moving reimbursements and employee achievement awards. (Some changes are only temporary.) On the plus side, for 2018 and 2019, the new law creates a tax credit for wages paid to qualifying employees on family or medical leave. Contact us for the details.
Haven’t filed your 2017 income tax return yet? Beware of these pitfalls
The April 17 federal income tax filing deadline is nearly upon us. If you haven’t filed your individual return yet, you may be thinking about an extension. This allows you to delay filing your return until Oct. 15, 2018. But consider these pitfalls: If you expect to owe tax, to avoid potential interest and penalties you still generally must pay any tax due by April 17. If you expect a refund, you’ll be extending the amount of time your money is in the government’s pockets rather than your own. Contact us if you have questions about avoiding interest and penalties.
A net operating loss on your 2017 tax return isn’t all bad news
If a company’s deductible expenses exceed its income, generally a net operating loss (NOL) occurs. The upside is tax benefits: If the tax year generating the NOL ended on or before 12/31/17, the NOL can be carried back up to 2 years to generate an immediate tax refund and boost cash flow. Any remaining NOL can be carried forward up to 20 years. Or the entire NOL can be carried forward. But the TCJA makes significant, generally unfavorable, changes to the tax treatment of NOLs. The rules are complicated, especially for pass-through entities. Contact us for details.
Blockchain may soon drive business worldwide
“Blockchain” may sound like something that goes on your car, but it’s actually a digitally distributed ledger typically shared on a peer-to-peer network. Entries are stored in blocks, with each block containing a timestamp and providing a link to the previous block. Nothing can be altered without changing every block under the approval of most involved parties. Secure and streamlined, blockchain is already used for certain financial transactions. In the future, it could affect mergers and acquisitions, the supply chain, health care and many other industries.
Should you file Form SS-8 to ask the IRS to determine a worker’s status?
Classifying workers as independent contractors (rather than employees) can save businesses money. But the IRS is on the lookout for improper classifications, and it may assess significant back taxes, interest and penalties. To help avoid this, you can file optional IRS Form SS-8, “Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.” But the IRS has a history of reflexively classifying workers as employees, and filing this form may even trigger an audit. Contact us for alternative ways to address this issue.
You still have time to make 2017 IRA contributions
Have you made your 2017 IRA contributions? You still have time: The deadline is April 17, 2018. Deductible contributions will lower your 2017 tax bill, but even nondeductible ones can be beneficial because of tax-deferred growth (tax-free in Roth accounts). The 2017 contribution limit is $5,500 (plus $1,000 for those age 50 or older on Dec. 31, 2017). But your traditional IRA deduction or Roth IRA contribution may be further limited based on your income. Remember, once the deadline has passed, the savings opportunity is lost forever. Contact us to learn more.