We get asked all the time. How do you set up a business? Do you need to file anything? Do you have to register the business? What type of business do you recommend? We will tackle these questions in a multi-part series reviewing the different business types: doing business as (DBA), limit liability company (LLC), and corporation.
IRS Home Office Tax Deductions
Claiming IRS home office tax deductions increases your chances of an IRS audit. Is that true? In our experience, the answer is generally no. If you run your business out of your home and maintain a home office, then you should take your deductions. There is no reason to leave money on the table. Especially to the IRS! The first step for claiming home office deductions is to understand the rules.
Tips for Paying Your Tax Bill
If you filed for an automatic 6 month extension then tax season is officially over as of October 15, 2014. The IRS doesn’t allow any additional extensions. There are numerous reasons why a decision was made to request more time to file a tax return. One reason is you needed more time to pay the taxes. The following are some tips for paying your tax bill.
Crazy IRS Voicemail
We received an email from one of our clients yesterday. She received a call from the IRS. The IRS left a crazy voicemail. In the voicemail, the IRS threaten to sue her.
IRS Levy on Social Security Benefits CP91
You received IRS Notice CP91: Levy on Social Security Benefits. What now?
Business or Hobby Determination for IRS Taxes
You love planning parties. Over the last few years, friends and family asked for your assistance on planning various celebrations: open house, graduation party, baby shower, wedding reception, and birthdays. After awhile you started to think, could I start a party planning business? Why not? You may or may not earn money doing this. It does not matter to you. You have a normal full time job. The party planning will be a side business for fun.
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IRS Issues a New Phone Scam Warning
The IRS issued a warning to the public about phone scams. The scammers are making unsolicited phone calls to individuals falsely claiming to be the IRS. The scammer will claim taxes are owed and request an immediate payment by wire transfer or debit card. The calls are typically hostile and abusive.
Michigan Offer in Compromise is Good for Taxpayers
Michigan will join over 40 other states that provide an Offer in Compromise program to its taxpayers. The bill HB 4003 was placed into law on July 16, 2014. Michigan has offered “Amnesty” programs in the past. The Amnesty program allowed taxpayers to fully pay the tax only. The penalties and interest were waived. However, an Offer in Compromise program is different. Taxpayers who are unable to pay their back taxes or legitimately do not owe the taxes, will be able to negotiate the tax, penalties, and interest.
Michigan Taxes on Gambling Income and Keeping Records
Going to the casino and winning big is an adrenaline rush. This is especially true if you gamble regularly. But it’s not fun to pay taxes on the winnings. Gamblers know that all winnings are taxable. However, most people do not report their winnings unless he or she wins more than $1,200. $1,200 is the threshold of when the casino must report your winnings to the IRS on Form W-2G, Certain Gambling Winnings. If you gamble regularly, you could save on taxes by keeping a daily record of your gambling winnings and losses.
New Michigan Offer Program Lansing Tax Article
A.J. Gross, C.P.A, E.A. founder of ALG Tax Solutions writes an article for The New Citizens Press about the New Michigan Offer in Compromise Program starting in 2015. The New Citizens Press is a local Lansing newspaper.