How long do I need to keep my tax records?

You’ve filed your return, but now you have a pile of documents and you are wondering whether you really need to hang on to all of it. And if so, for how long? The answer is that there are some guidelines to follow, but it also depends on the types of documentation that you have. …

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Preparing for a single audit

Single audits are required for all non-federal entities that expend $750,000 or more in federal awards. Single audit engagements can be complex and may involve a number of unusual audit requirements, so being prepared for your single audit plays a vital part in the single audit process. Here are some things to consider if you’re …

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Estimated tax payments and you

Should you be making estimated tax payments? Estimated tax payments are made to pay tax on income that is not subject to withholding, such as earnings from self-employment, interest, dividends, rents and alimony. Basically, you’re paying 25% of your total estimated annual tax due (required annual payment) four times a year: April 15 June 15 …

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Estate planning: don’t forget your IRA

The IRA is often overlooked when clients meet with their attorney for estate planning. This may be because the IRA owners complete the beneficiary designation form themselves and are unaware of potential pitfalls. Often, the value of the IRA alone far exceeds the value of the planned for estate. Failing to have your attorney review …

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Can I claim my parents as dependents?

These days it is not uncommon for people to be looking after or taking care of their parents. However, did you know that you may be able to get a tax credit to offset some of your expenses? Prior to the 2018 tax year, you may have been able to claim your parents as dependents. …

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Charitable contribution through loan forgiveness

Some years ago, we were involved in an IRS examination where the deductibility of a charitable contribution was brought in to question. This contribution was not your standard charitable donation. In this case, the contribution resulted from a taxpayer forgiving a loan to a charitable organization. This threw the IRS agent for a loop. He …

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Schedule C: Doing business in CA as a single member LLC

Something you may need to beware of is the single member LLC (SMLLC) rules of California. Even if you have a net LOSS. Take note that if you are a single member LLC doing business in California, you may happen to fall into a small category of certain filing requirements. As a single member LLC, …

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10 Tips for choosing a tax preparer

Filing your taxes is a big deal. You want a good preparer who knows their stuff, especially since you are ultimately responsible for the information that’s reported to the IRS, even if someone else prepares your return. So, here are 10 tips from the IRS for choosing a tax preparer. Check their qualifications. You can …

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How scholarships can help your education tax credits

Many of you may have personally taken an education tax credit on a return at some point or perhaps have taken one for a child. Just as a quick refresher – there are two education tax credits currently available on your federal income tax return: American Opportunity Tax Credit. A potential credit of up to …

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SSA’s No-match letters are going out again

What’s a “no-match” letter, you ask? It’s a letter sent by the Social Security Administration (SSA) to employers who are identified as having at least one name and Social Security Number (SSN) combination reported on Form W2 that does not match SSA records. This notice, commonly referred to as no-match letter, informs the employer that …

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