The Tax Cuts and Job Act has made people in all areas of life stop and evaluate their financial situation. This is especially true of small business owners. This shake-up of the tax code has led to some potential opportunities. You may be familiar with the new 21% top tax rate for business and “pass-through entities” that can qualify for a 20% deduction on income going through the business. But do you know how those businesses can qualify for these benefits? There are specific guidelines to meet, and it often involves changing incorporation status. The IRS has just released new guidelines which have adjusted this process. Now is the time to take an honest look at your business to see if it would be the right choice for you. At Anthony Sykes & Company , we will give you a free consultation to help you make the best decisions for your business.
Showing posts from September, 2018
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When the IRS makes a change, they try to tell Taxpayers about it, so the adjustment is made easier. The Tax Cuts and Jobs Act is a huge change, and they have been slowly letting all of us know about how things will look moving forward. January 1 is just around the corner! Most of us would think Tax Reform applies to those still in the workforce. It certainly does, but it will have a great impact on those who have retired and are living off their pension, Social Security, or an annuity. Simply put, they need to make sure they are withholding enough tax from their retirement income. If not, these older Taxpayers will be in for a shock. Sending in estimated payments, 4 times each year, is recommended to make sure everything stays balanced. Each source of income has unique rules to follow, so it is strongly encouraged for those in this situation to seek the help of a Qualified Tax Professional. They can help navigate this new area of tax law and avoid errors which lead to
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The plague of business identity theft has been a growing problem for many years. While the IRS has taken steps to keep fraudulent Business Returns from being processed , criminals are always adapting their methods. The filters put in place last year flagged over 20,000 returns that had suspicious activity. This kept over $2.2 Billion in “refunds” from being paid out. Sadly, this is still not enough. It seems that the new guidelines are not catching everything. During the same period last year, about $200 Million was paid out by the IRS in Business Tax Refunds using Employer Identification Numbers (EIN) that should not have been processed. Some funds are even being accidentally released when the accounts have been locked. The IRS does its best, but it cannot be relied on for everything. As Taxpayers and Business Owners, we must do our part in protecting ourselves. All businesses must protect their EIN as best they can. It can be used to start cr