Archive for the ‘General Business’ Category

Hogs Will Be Slaughtered

Monday, June 20th, 2011

S-corporations, some­time when you were set­ting up your busi­ness, you chose, or some­one advised you to choose S-corporation as your busi­ness form.  One advan­tage is they avoid the “dou­ble tax­a­tion” of the C-corporation; the gov­ern­ment does not usu­ally tax S-corporations. The S-corporation passes income through to you, a shareholder, and you pay the taxes on your share.  Another advan­tage is that only part of the income passes through to you as self-employment income, reduc­ing the amount of self-employment tax you pay.  It is that sec­ond advan­tage where the audit risk lies. Get greedy and the IRS will slaugh­ter you. (more…)

US Congress Will Punt-Legislative Update June 2011

Friday, June 17th, 2011

Last year I spent a lot of time writ­ing about how the US Con­gress had done noth­ing with respect to resolv­ing tax issues.  Why is it impor­tant for Con­gress to pass tax law? It is very hard to do tax plan­ning before the end of the year, when you do not know what taxes you have to pay.  In 2010, the exten­ders pack­age, AKA the 2010 Tax Relief Act, finally passed and was signed on Decem­ber 17 of 2010-which meant the aver­age tax­payer had very lit­tle time to engage in tax plan­ning for 2010.  Fur­ther­more many of the pro­vi­sions in that act expire at the end of this year or the next. In oth­er­words the 111th Con­gress punted and left these issues to be resolved after the next pres­i­den­tial elec­tion.  Why should the 112 Con­gress be any dif­fer­ent? (more…)

Expanded 1099-MISC Information Reporting Requirements Repealed

Sunday, June 12th, 2011

If you are involved in trade or busi­ness you should be cheer­ing. On April 14, 2011 Pres­i­dent Obama signed the Com­pre­hen­sive 1099 Tax­payer Pro­tec­tion and Repay­ment of Exchange Sub­sidy Over­pay­ments Act of 2011 into law.  It repealed the expanded 1099 infor­ma­tion report­ing require­ments that were included in the Patient Pro­tec­tion and Afford­able Care Act. (more…)

Get socked with a big tax penalty in one easy lesson

Monday, January 31st, 2011

You wanna get socked with a tax penalty in addi­tion to pay­ing extra taxes?  Its easy.  Just don’t keep any records.  As a recent tax court case reveals you not only could get your deduc­tions denied, but also have the fraud penalty imposed.  (more…)

New NLRB Poster Requirement May Be Coming

Tuesday, December 21st, 2010

The National Labor Rela­tions Board (NLRB) announced that most pri­vate employ­ers may soon have to dis­play a poster in their work places that informs employ­ees of their right to form and/or join a union.  At the moment it is a pro­posed rul­ing, which is under­go­ing a 60-day com­ment period. 

IF the pro­posed rul­ing goes into effect after the com­ment period, fail­ure to dis­play the poster would be treated as an “unfair labor prac­tice.”  In gen­eral, it would be treated as evi­dence of unfair labor prac­tices if a case is ini­ti­ated against an employer.  It does not gen­er­ate enforce­ment action on its own.  The poster would be avail­able or it could be down­loaded for free from the NLRB. If a sig­nif­i­cant num­ber of employ­ees do not speak Eng­lish the employer would be required to dis­play a poster in their lan­guage. If an employer nor­mally elec­tron­i­cally con­veys posters, and elec­tronic ver­sion would be required in addi­tion to the phys­i­cal one in the workplace. 

The National Labor Rela­tions Act applies to most pri­vate employ­ers as the thresh­hold num­ber of employ­ees is 1.  The Act does not apply to work­ers who are cov­ered by the Rail­way Labor Act, agri­cul­tural employ­ees, domes­tic employ­ees, super­vi­sors, fed­eral, state or local gov­ern­ment work­ers, inde­pen­dent con­trac­tors and some close rel­a­tives of indi­vid­ual employers.

If you would like to read more about poster require­ments, espe­cially as they relate to Ari­zona employ­ers, please check out http://artandbusinessconsulting.com/arizona-employer-requirements.htm#AZ_Employer_Information. The infor­ma­tion pre­sented on this page is not all inclu­sive, nor does it pro­vide, nor is it intended to pro­vide com­plete or full descrip­tion, dis­cus­sion, or analy­sis of any law, topic, or issue.  ABC strongly advises busi­nesses to com­ply with all employ­ment laws that they are sub­ject to, and con­sult with an employ­ment lawyer or other employ­ment law spe­cial­ist when nec­es­sary — ABC is not engage to prac­tice law, nor is ABC an HR Specialist. 

As always, small busi­ness ser­vices and tax­a­tion are our busi­ness.  If you need help Please give Art & Busi­ness Con­sult­ing a call.  We would love to engage you as a client. 

The usual dis­claimers: Although ABC has made every effort to insure the accu­racy of Taxes, Tips and Tools, mis­in­for­ma­tion, dis­in­for­ma­tion, changes, mis­takes, typos and hack­ers hap­pen, there­fore Art & Busi­ness Con­sult­ing LLC takes no respon­si­bil­ity for any action taken or results based on the infor­ma­tion sup­plied here in. The con­tent of this blog gen­er­ally applies to busi­ness and indi­vid­ual tax­a­tion in the United States of Amer­ica.  Inter­nal Rev­enue Ser­vice Cir­cu­lar 230 Dis­clo­sure:  As pro­vided for in Trea­sury reg­u­la­tions, advice (if any) relat­ing to fed­eral taxes that is con­tained in this com­mu­ni­ca­tion (includ­ing attach­ments) is not intended or writ­ten to be used, and can­not be used for the pur­pose of (1) avoid­ing penal­ties under the Inter­nal Rev­enue Code or (2) pro­mot­ing, mar­ket­ing or rec­om­mend­ing to another party any plan or arrange­ment address herein.  Art & Busi­ness Con­sult­ing LLC cur­rently does not have a cer­ti­fied pub­lic accoun­tant, human resource spe­cial­ist, cer­ti­fied finan­cial plan­ner or an attor­ney on staff; this infor­ma­tion is purely for edu­ca­tional pur­poses and not to be con­strued as legal or finan­cial advice. Art & Busi­ness Con­sult­ing LLC and its employ­ees, mem­bers and asso­ciates are not engage to prac­tice law; you always should dis­cuss legal mat­ters with your attor­ney before talk­ing to anyone else.