Friday, October 16, 2015

Get ready for the "Cadillac" tax

Get ready for the "Cadillac" tax
 The 2010 Affordable Care Act added a 40% excise tax on high-cost employer-sponsored health insurance (sometimes called "Cadillac" plans). "High-cost" means plans with an annual cost of more than $10,200 for an individual and $27,500 for a family. Beginning in 2018, the tax applies to the amount above that limit. The tax is assessed annually, and is permanent, nondeductible, and applicable to many types of health coverage.
Because of its potentially broad impact, you'll want to start reviewing the health insurance coverage you offer to employees to learn how your business will be affected.
The IRS is just beginning to issue guidance. We'll keep you informed as information is released.

Wednesday, October 14, 2015

Estate executors have another responsibility

Estate executors have another responsibility


A law effective as of July 31, 2015, included provisions that require certain executors to file a statement with estate beneficiaries and the IRS, notifying both of the value of property as reported on the estate return. Unless an exception applies, the beneficiaries can claim no more than that value when the property is later sold or disposed of.
Under the new rule, the statement is due within 30 days after the estate return is filed or 30 days after the due date of the estate return, whichever is earlier. However, if you're required to file this new statement before February 29, 2016, the due date for filing and furnishing the statement is delayed until February 29, 2016.

We'll keep you updated as guidance becomes available.

Monday, October 12, 2015

Law revises due dates for 2016 returns

Law revises due dates for 2016 returns
The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 changed due dates for some 2016 federal business returns (the ones you'll file in 2017).
Here's a sample of the changes:
Partnerships (Form 1065) – 2½ months after the close of the tax year. For calendar-year partnerships, that means a due date of March 15.
C corporations (Form 1120) – 3½ months after the close of the tax year. For calendar-year C corporations the due date will be April 15. Note there is a special rule for C corporations with a June 30 year-end. These corporations will not have to comply with the new due dates until after 2025.
S corporations (Form 1120S) – No change. The due date remains 2½ months after the close of the tax year (March 15 for calendar-year corporations).
Call us for more information.
 

Thursday, October 8, 2015

Avoid underpayment penalties

Avoid underpayment penalties


Check the total taxes you've already paid in for the year through withholding from your wages and/or quarterly estimated payments. Are you underpaid? Consider adjusting your withholding for the final months of 2015 or increasing your remaining quarterly estimate. If you employ household workers, include the payroll taxes you'll owe for them in your calculations. Call us for assistance.

Tuesday, October 6, 2015

Take time for tax planning

Take time for tax planning

Take time to review your 2015 tax situation while there are still a few months to make adjustments. Can you benefit from bunching your itemized deductions? Will increasing your retirement plan contributions cut your tax bill? An investment in a tax review could make a significant difference in your final tax bill for the year.

Thursday, October 1, 2015

October 15 is a final tax deadline

October 15 is a final tax deadline

Time's almost up if you requested a six-month extension to file your 2014 federal income tax return. October 15 is the final date for filing your 2014 return; the IRS generally does not give filing extensions beyond that date.
October 15 is also the deadline for undoing a 2014 conversion of a traditional IRA to a Roth IRA. If you converted your traditional IRA to a Roth last year, you can switch it back to a regular IRA without penalty if you do so by October 15.

Want to know more? Contact our office. 

Wednesday, September 30, 2015

How to reduce inventory risk in your business

How to reduce inventory risk in your business
Study the balance sheet of most retail or manufacturing businesses, and you'll find inventory near the top of the asset list. Accountants define inventory as raw materials, supplies, work in progress, and finished goods. It's the stuff sitting on shelves, parked in the lot, or being produced in the factory – merchandise that managers expect to sell in the normal course of business. Buying, storing, handling, and insuring that stuff is expensive. As a high-value asset, inventory often represents a significant risk, and mitigating that risk is crucial to maintaining profitability.
To reduce inventory risk in your business, consider the following:
*                 Too many or too few goods. Nothing beats a comprehensive and consistently applied inventory tracking system for making sure you don't overbuy from vendors or underestimate the needs of your customers. The best information systems will capture detailed sales histories and forecast demand with reasonable precision. In addition, regular contact with customers may help to identify emerging demand or dissatisfaction with existing products. These conversations, in turn, can influence your inventory purchase decisions.
*                 Obsolescence. Most inventory declines in value over time. To mitigate this risk, a manager should track revenue data and regularly move inventory via special promotions, discounting, and sales. Paying to hold and insure obsolete merchandise drains profits. Make room for fresh inventory by creatively moving the inventory that's already on your shelves.
*                 Damage. Managers should identify the causes behind frequent damage. Perhaps employees need better training in handling goods; perhaps more stringent policies need to be set. Some retailers, for example, limit the number of boxes that can be stacked on pallets. Maybe the company's packaging is not sturdy enough, or a change of suppliers is warranted. Knowing why your inventory is being broken is the first step to reducing that risk.
*                 Theft. Establishing physical safeguards – locks, lighting, fences, cameras, and the like – can help protect merchandise, whether it's housed in the store or warehouse. Taking time to perform thorough background checks on employees may also reduce fraud risk. Hiring an independent auditor to review inventory levels is often a good preventive control, a control that sometimes ferrets out theft. If employees know that management routinely checks the company books and counts inventory, they may be less likely to shuffle goods from the warehouse to their homes or engage in "creative" accounting.