An overview of IRS transcripts and their many uses

All taxpayers who have ever filed tax returns or had tax forms filed in their name (such as W-2s, 1099s, etc.) have a record of these filings with the IRS in the form of a transcript. As the IRS processes tax forms, the information reported is stored in their computer systems and organized based on …

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Taxable social security wages are rising for 2021

The Social Security Administration announced a 2021 increase to the amount of wages subject to the old age, survivors, and disability insurance (OASDI) tax. The wage limit was $137,700 for 2020 but will rise to $142,800 starting in 2021. This amount changes each year with the national average wage index. The current Social Security (OASDI) …

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Terminating your corporation

Unfortunately, due to COVID-19, a lot of individuals have had to make the difficult decision to close their businesses. Closing a corporation legally has several steps and boxes to check to make sure the business is permanently closed. A corporation is a separate tax-paying entity with shareholders who own capital stock. S corporations are corporations …

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Summary of 2020 Side Dish blogs

This year has been a crazy one, to say the least, for most people in the restaurant industry. We thought our readers may enjoy a summary of all our 2020 Side Dish blogs in one place in the event you want to go back and re-read one of them. Don’t miss: COVID-19 Relief Act Webinar …

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Tax consequences to refinancing your home

Mortgage interest rates have decreased this year and a lot of people have jumped at the opportunity to refinance their home mortgage loans to take advantage of these lower rates. So, what does this mean for your tax situation? As you may already know, the IRS allows you to deduct your home mortgage interest on …

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Financial planning for restaurant owners

You’ve heard before that 80-90% of restaurants fail within the first year. That’s simply not true. In fact, according to research by Philip Stark at UC Berkeley the number is really 17% in the first year. This goes to show that the average restaurateur really knows their stuff. A lot of planning goes into starting …

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Arizona corporate e-file becomes mandatory

The march to e-filing tax returns has been a slow one. In fact, it started over 30 years ago in 1986 when the Internal Revenue Service (IRS) began a small test program where only five tax preparers from the metropolitan areas of Cincinnati, Raleigh-Durham and Phoenix agreed to participate. I was actually doing taxes in …

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PPP, business meals and more – Key takeaways from new stimulus legislation

Last week the president signed into law the next COVID-related economic stimulus package, and many of it’s provisions will be especially helpful, or are even geared specifically towards assisting the restaurant industry. As many states go into a second phase of full or partial lockdowns with restrictions on indoor, or even outdoor dining, these provisions …

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The Taxpayer Advocate Service – When and how to get help

In case of emergency: break glass, stop drop and roll, dial 911. These are all practices that have been instilled in our minds since childhood as proper responses to a crisis situation. Personally, I just try to find an adult. But what do you do if you have a tax problem that even your CPA …

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Your stimulus check is in the mail

The Internal Revenue Service has fired up the printers to get stimulus checks into American’s pockets. They began processing the payments yesterday. The official payment date is January 4, 2021. The economic impact payments are part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 signed into law on Sunday night. The act …

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