There is zero wiggle room when it comes to handling the federal income taxes and FICA taxes withheld from employees’ paychecks. The taxes are government property, which employers hold “in trust” and then remit to the IRS on a set schedule. Employers are not permitted to use this “trust fund” money for other purposes. Serious […]
The Tax Benefits of Net Operating Losses
For many businesses, profits vary from year to year. However, with proper planning, even a bad year can be helpful from a tax perspective. Where business deductions exceed gross income, a taxpayer may have a net operating loss (NOL) that can be used to offset income in another tax year, potentially generating a refund of […]
Getting a Handle on Payment Issues
Most small business owners love what they do. But that’s not to say things can’t get a little difficult, especially when customers don’t pay their bills on time. Even one or two slow-pay or no-pay customers can be enough to throw your company’s finances off. Understanding what might be going on with your customers and […]
How to Follow the Rules when Writing off Bad Debts
In any economic environment, businesses typically have a percentage of customers who don’t pay their invoices. Here are some tax guidelines. Cut Your Loss If a customer or client owes your business money you can’t collect, you might be able to claim a bad debt deduction on your business return. You must be able to […]
Staying One Step Ahead of Tax Issues
The last thing you need as a small business owner is to have to spend time unraveling tax problems you could have avoided. There are many tax issues that can trip up small business owners — here are a few. Mixing Business and Personal Keeping your personal bank and credit card accounts separate from your […]
Don’t Miss these Tax Credit Opportunities
Tax deductions aren’t the only things to consider when looking for ways to reduce your tax bill. There are a number of tax credits that you may be able to claim. A tax credit reduces your tax liability dollar for dollar (and, in some instances, may be fully or partially “refundable” to the extent of […]