Tips to Help AVOID AN AUDIT In 2014, the IRS audited less than 1% of individual income tax returns filed for the 2013 tax year. That's fewer than in the past and may reflect lower agency funding and manpower. Still, it amounted to more than 1.2 million audited returns - about three out of [...]
Protect Your Computer Online The Internal Revenue Service, the states and the tax industry urge you to be safe online and remind you to take important steps to help protect yourself against identity theft. Scammers, hackers and identity thieves are looking to steal your personal information – and your money. But there are simple [...]
2015 Tax Organizer The 2015 Fox Peterson tax organizer is now available in two forms. You can A) go to our resources page and fill out the organizer(s) that apply to you and submit them directly to your tax preparer or B) click here to download and print the PDF version. A customized organizer is [...]
What is Reasonable Compensation for a shareholder-employee of an S Corporation? The IRS requires that S corporations “pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation before non-wage distributions may be made to the shareholder-employee.” Fox Peterson can help you determine what your compensation should be [...]
Additional Medicare Tax Some taxpayers may be liable for an Additional Medicare Tax if your income exceeds certain limits. Here are six things that you should know about this tax: Tax Rate. The Additional Medicare Tax rate is 0.9 percent. Income Subject to Tax. The tax applies to the amount of certain income that [...]
Have you found that you made an error on your federal tax return? If so, you may need to file an amended return. Here are ten tips that can help you file. 1. Tax form to amend your return. Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct your tax return. You [...]
Employee Business Expenses Tips If you paid for work-related expenses out of your own pocket, you may be able to deduct those costs. In most cases, you claim allowable employee business expenses on Schedule A, Itemized Deductions. Here are six tax tips that you should know about this deduction. Ordinary and Necessary. You can [...]
File on Time Even if You Can’t Pay Do you owe more tax than you can afford to pay when you file? If so, don’t fail to take action. Make sure to file on time. That way you won’t have a penalty for filing late. Here is what to do if you can’t pay [...]
The Internal Revenue Service issued the 2015 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 57.5 cents per [...]
If you are an employer, the number of employees in your business will affect what you need to know about the Affordable Care Act (ACA). Employers with 50 or more full-time and full-time-equivalent employees are generally considered to be “applicable large employers” (ALEs) under the employer shared responsibility provisions of the ACA. Applicable large [...]
