As the president of the WSSEA, we sponsored a 16-hour tax update last week with Tom Gorczynski EA USTCP. He did a great job covering the latest tax changes and tax planning strategies. Fortunately, the changes this year were modest compared to the previous years.
There were several changes at the IRS level that had positive impacts on taxpayers. Their interpretation of the COVID based tax benefits were especially generous.
As an Enrolled Agents we are required to have 72 hours of certified continuing education over 3 years. I have accumulated 176 hours over the last 3 years, in addition to hundreds of hours of study that wasn’t certified.
The tax code is huge body of laws, regulations, case law and common practice that has evolved over the 160 years that the IRS has been in existence. Every year there are changes either from Congress, the IRS or the Courts that keep everyone involved on their toes.
At the Biz Fair for small businesses and startups with Jeffery Ames, answering questions about taxes and the roll of Enrolled Agents.
Enjoyed talking taxes with small contractors looking to do business with Sound Transit. Wishing them good luck on their bids!
I’ll be speaking about the new tax changes at the Gain Access to Capital Workshop for small businesses.
The IRS sends out millions of computer generated letters a year to taxpayers. These letters are rarely welcome, as a result they can pile up unopened and certified letters are not collected from the post office.
While stamp collecting can be a rewarding and stress relieving hobby, I don’t know anyone that has the same experience with collecting IRS Letters. Everyone has rights to IRS appeals and tax court that are time sensitive. Having those deadlines go by the wayside make resolving your tax issue more difficult.
Often the IRS thinks you owe more in taxes, when in fact that is not true when all the facts are know. Some issues can be simply and quickly resolved.
The best strategy for dealing with IRS correspondence is to carefully read the letters and response to the IRS. If you don’t feel comfortable doing, this contact a tax professional that can interpret the letter, protect your rights, and craft the proper response.
Don’t loose another nights sleep, give us a call.
With the new tax law now in place, you can still deduct your interest on home equity loans that are at or below $100,000, if the loan was used to buy, build or substantially improve your home.
So if you took out a $25,000 home ‘equity’ loan to remodel your kitchen, that interest could still be deductible as an itemized tax deduction.
There could also be other options to deduct that interest depending on the use of the loan monies.
IRS Revenue Officers are continuing to focus on the payroll taxes that employers are required to both file and remit to the IRS on a regular basis. The IRS has determined that getting employers to pay these taxes is relatively easy money and the longer that a business goes not paying these taxes the more likely they will default and the IRS will never get the money. However the government will have to still cover the Medicare, Social Security and income tax withholding for the employees.
For the business owner the risk is that the IRS will go after them personally for the “Trust Fund” taxes and assess an penalty of 100% on those funds. The Trust Fund is the employee’s income tax withholding and their half of the FICA tax. The owner(s) can’t escape this via bankruptcy or by closing down the business.
If you are in this situation or know someone who is give us a call, we can help.
HSA accounts (Health Saving Accounts) are one of the best tax avoidance strategies available.
The accounts are funded through payroll withholding. They are provided by your employer if you have a high deductible Health Insurance plan.
The tax advantages are that the withheld money is free from both income, social security and Medicare taxes. Then any investment growth is tax free. Finally, the money used to pay medical expenses is tax free when withdrawn.
You will need to look at your individual situation to determine if an HSA is right for you. For wealthier taxpayers that don’t need to access the HSA on a yearly basis and can self-fund the yearly health plan deductible, holding an HSA until retirement could part of your financial plan.
I’ll be at the Washington State Society of Enrolled Agents table at the Small Business Fair. The fair is at the Renton Technical College September 29 from 8:00 to 4:15. There will be great speakers and exhibitors that you can access for free. This is a great resource for both existing and potential small businesses, hope to see you there.
Biz Fair 2018 – Saturday, September 29 – One Day, One Place
Calling all current and aspiring small business owners! Join us on September 29, 2018 for the 22nd annual Biz Fair at Renton Technical College to learn from the experts how to start or grow a successful business.
Biz Fair is the longest running all government and non-profit-run small business fair in Washington State.
Sharpen your skills by attending seminars taught by savvy business experts who share their knowledge and real-life experiences in a no-sales environment.
Gain access to valuable small business resources – visit the Exhibitor Resource Center, staffed by representatives from federal, state and local government agencies, and business and trade associations.
The fair is free, with plenty of free parking and no advance registration.
Visit www.bizfair.org for more information.
Find us on Facebook at www.facebook.com/bizfair.
Follow us on Twitter at https://twitter.com/bizfair.