Posts by Caras & Shulman

What To Know About Tax-Related Identity Theft

What To Know About Tax-Related Identity Theft

by | May 30, 2022 |

Tax-related identity theft occurs when someone uses a taxpayer's stolen SSN to file a tax return claiming a fraudulent refund. In the vast majority of tax-related identity theft cases, the IRS identifies a suspicious tax return and pulls the suspicious return for review. The IRS then sends a letter to the taxpayer and won't process the tax return until the taxpayer responds. Depending on the situation, the taxpayer will receive one of three letters asking them to verify their identity: Letter...

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Special Tax Benefits for Members of the Military

Special Tax Benefits for Members of the Military

by | May 23, 2022 |

Military personnel and their families face unique life challenges with their duties, expenses, and transitions. As such, military members may qualify for tax benefits not available to civilians. For example, they don’t have to pay taxes on some types of income. Special rules may lower the tax they owe or allow them more time to file and pay their federal taxes.

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Choosing the Correct Business Entity

Choosing the Correct Business Entity

by | May 16, 2022 |

One of the most important decisions you'll make when starting a business is choosing the right business entity. It's a decision that impacts many things--from the amount of taxes you pay to how much paperwork you have to deal with and what type of personal liability you face. Forms of Business The most common forms of business are Sole Proprietorships, Partnerships, Limited Liability Companies (LLC), and Corporations. Federal tax law also recognizes another business form called the...

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Estimated Tax Payments: The Facts

Estimated Tax Payments: The Facts

by | May 9, 2022 |

Estimated tax is the method used to pay tax on income that is not subject to withholding, including income from self-employment, interest, dividends, alimony, rent, and gains from the sale of assets, prizes, and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough. Filing and Paying Estimated Taxes Both individuals and business owners may need to file and pay estimated taxes, which are paid quarterly....

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What To Do if You Missed the April Tax Deadline

What To Do if You Missed the April Tax Deadline

by | May 2, 2022 |

Monday, April 18, 2022, was the tax deadline for most taxpayers to file their tax returns, but if you haven’t filed a 2021 tax return yet, it’s not too late. Here’s what you need to do: First, gather any information related to income and deductions for the tax years for which a return must be filed, then call the office to set up an in-person or virtual appointment.

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Tax Tips for April 2022

Tax Tips for April 2022

by | Apr 29, 2022 |

Click on the links below to jump to each section in this article: File on Time Even if You Can't Pay What To Do if You're Missing Important Tax Documents Tax Credits To Help Cover Costs of Higher Education Small Business: Rent Expenses May Be Tax-deductible Taxpayer Rights: Pay No More Than the Correct Amount File on Time Even if You Can't Pay Generally, taxpayers should file their tax returns by the deadline even if they cannot pay the total amount due, but if you can't, there are several...

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Cash Management Tips for Your Small Business

Cash Management Tips for Your Small Business

by | Apr 25, 2022 |

Cash flow is the lifeblood of every small business but many business owners underestimate just how vital managing cash flow is to their business's success. In fact, a healthy cash flow is more important than your business's ability to deliver its goods and services. While that might seem counterintuitive, consider this: if you fail to satisfy a customer and lose that customer's business, you can always work harder to please the next customer. If you fail to have enough cash to pay your...

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Got Debt? How To Improve Your Financial Situation

Got Debt? How To Improve Your Financial Situation

by | Apr 18, 2022 |

Being debt-free is a worthwhile goal; unfortunately, for most people, it is unrealistic - especially for those of pre-retirement age with children, a car payment or two, and a mortgage. As such, most people need to focus on managing their debt first since it's likely to be there for much of their adult life. With inflation on the rise (and subsequent interest rate hikes), your credit card debt could be even more difficult to pay off. Eliminating debt is especially crucial for anyone...

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The Tax Consequences of Crowdfunding

The Tax Consequences of Crowdfunding

by | Apr 11, 2022 |

Crowdfunding websites such as Kickstarter and GoFundMe have become an increasingly popular way for small business owners to stay afloat. The upside is that it's often possible to raise the cash you need; the downside is that the IRS considers that money taxable income. Let's take a closer look at how crowdfunding works and how it could affect your tax situation. What is Crowdfunding? Crowdfunding is the practice of funding a project by gathering online contributions from a large group of...

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Reminder: Rules for Depreciation and Expensing

Reminder: Rules for Depreciation and Expensing

by | Apr 8, 2022 |

As part of final guidance issued that pertains to the Tax Cuts and Jobs Act of 2017, new rules and limitations are in effect for taxpayers who deduct depreciation for qualified property acquired after September 27, 2017. As a business owner, they could affect your tax situation. Let's take a closer look: Businesses Can Immediately Expense More Under Tax Reform A taxpayer may elect to expense the cost of any section 179 property and deduct it in the year the property is placed in service. These...

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