Important Tax Tips and Fraud Prevention
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Posted on October 16, 2019 at 10:35 PM
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Join KLSM CPA Firm, as we partner with the Small Business Expo to offer a FREE webinar on November 7, 2019 entitled, Protecting Your Business: An Accounting, Tax and Fraud Perspective. During this webinar we will cover the topics above and much more to help you protect your business. Don't wait until, the webinar is sold out...Register Today.
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Posted on September 2, 2019 at 6:35 PM
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Have you received a letter from the IRS? Do you owe back taxes? Stop your panicking! On this week's episode, we posted a short video that explains exactly what you need to do when you can't pay your taxes. Watch and Listen to the episode onYouTube: https://youtu.be/om-k64jlktc
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Posted on January 8, 2019 at 11:25 PM
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The Internal Revenue Service announced that the nation's Tax Filing Season will begin on Monday, January 28, 2019. Additionally, Tax refunds will go out, despite the government shutdown.
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Posted on October 7, 2018 at 10:50 PM
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General rule: According to Texas labor laws it is illegal to employ a child under age 14 except under specific circumstances.
Exception: When a business is owned and operated by a parent or legal custodian, they may employ their own children at any age to work as long as the work is non-hazardous AND child works under the parent or custodian's direct supervision.
Rules:
1. The child must be an actual employee and work real hours
2. The child must be treated as any other employee (i.e. completion of a W-4, I-9 and other onboarding documents required for other employees.
3. You must withhold income taxes from their pay.
What does the IRS say about this? The IRS allows this practice so long as there is legitimate work occurring. See the IRS reference (https://www.irs.gov/businesses/small-businesses-self-employed/family-help)
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Posted on January 3, 2018 at 6:25 PM
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This is a friendly reminder that this year's filing deadline for issuing 1099's is January 31, 2018. Now is a good time to get your books up to date and identify who will need a Form 1099. Don't wait until the last minute!
- Do you or your business need to file a 1099? Generally, a 1099-MISC should be issued to any individual or entity paid $600 or more for nonemployee compensation, rent, prizes, awards and other types of income. This includes payments to attorneys, accountants, independent contractors, consultants, and web designers. Rent paid to a landlord is another reportable payment that is sometimes overlooked. You don't need to issue a 1099 to corporations (with some exceptions), or for payments made via credit card or a third party network.
- What information do you need to file a 1099? The standard way to get the information you need to file a 1099 is to ask your contractor/vendor to fill out Form W-9. This form will provide you with all the information needed to file a 1099. It is always a good idea to obtain a W-9 from a vendor before you pay them. This way, you will have the information you need to file a 1099 without the hassle of tracking them down later.
KLSM CPA Firm
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Posted on September 30, 2017 at 10:25 PM
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The life of a small business owner is typically very hectic as they are constantly juggling, customers, employees, and business operations. Although the former aspects of the business are very important, business owners must also manage their credit score. Here are a few tips to help protect your business credit rating:
- Limit your credit usage
- Manage your companies financial ratios
- Pay bills on time
- Avoid closing accounts
- Establish trade lines with your suppliers
- Check your business credit score
- Consider securing investors
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Posted on December 27, 2016 at 9:00 AM
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1. Locate a Tax Professional
2. Get Organized - Request or obtain a tax organizer from your tax professional to help organize your receipts for the 2016 filing season.
3. Charity - If you plan on making a charitable contribution, be sure to give to an qualified 501(c)(3) on or before December 31, 2016 and obtain a donation letter.
4. Major life changes - Notify your tax professional of any major life changes such as getting married, having children, moving for a job, purchasing a house or going back to school. These are a few of the major life changes that can impact your tax filing status, allowable deductions, and tax credits for which you may qualify.
5. Retirement - Talk to a tax professional about your retirements plans as you may want to consider contributing to an IRA or adjusting your contributions to a 401(k).
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Posted on November 11, 2016 at 7:40 PM
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Organizations worldwide lose an estimated 5 percent of their annual revenues to fraud, according to the ACFE's 2016 Report to the Nations on Occupational Fraud and Abuse. A single instance of fraud can be devastating: the median loss per fraud case was $145,000, and more than a fifth of the cases involved losses of at least $1 million.
The good news? There are some basic steps your organization can take immediately to lessen your vulnerability to fraud:
1. Be Proactive - Adopt a code of ethics for management and employees and evaluate your internal controls for effectiveness.
2. Establish Hiring Procedures - When hiring staff, conduct thorough background investigations.
3. Train Employees in Fraud Prevention - Do workers know the warning signs of fraud?
4. Implement a Fraud Hotline - Fraud is most likely to be detected by a tip.
5. Increase the Perception of Detection - Communicate regularly to staff about anti-fraud policies, ways to report suspicions of misconduct, and
the potential consequences (including termination and prosecution) of fraudulent behavior.
Implementing these tips could help prevent your organization from becoming a statistic. Take action today.
**Article from FraudWeek.com**
On March 17, 2020 Treasury Secretary Steven Mnuchin, announced that tax payments up to $1M for Individuals and up to $10M for Corporations can be deferred for 90 days. Additionally, it is important to note that Interest and penalties will not accrue during this time period. Eligibility for the deferral depends on timely filing of the individual and business tax returns.
