News Archive
Are you paying enough attention to cash flow in your business?
Filed Under: Business on August 06, 2004
In assessing their business, most owners focus on growth in sales and profits. Yet these do not guarantee business health and success. Another important gauge is cash flow. Simply put, is there enough cash inflow to cover cash outflow? Cash flow needs change on a daily basis. The more you’re aware of cash flow needs, the more control you’ll have over your business.
Read more of “Are you paying enough attention to cash flow in your business?”
IRS issues new regulations on business vehicles
Filed Under: Business, IRS Regulations on August 06, 2004
New IRS regulations will allow more business vehicles to be depreciated within the standard five-year period that applies to most business equipment.
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More business vehicles are excluded from depreciation limits
Filed Under: Business, IRS Regulations on August 20, 2004
The IRS has issued regulations that will allow more business vehicles to be depreciated within the standard five-year period that applies to most business equipment. The change comes in response to complaints that vans and light trucks used by small businesses were often subject to the depreciation limits on “luxury vehicles,” a tax provision intended to limit annual deductions for expensive business cars.
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New numbers let you compare your company’s benefit costs
Filed Under: Business on December 05, 2004
The Labor Department recently published the cost of employee benefits paid by businesses for the twelve months ended June 2004. Companies with up to 49 employees paid an average of $19.37 an hour in total compensation to workers. Of that, $4.86 was for benefits. Companies with more than 100 employees paid an average of $27.81 an hour in total compensation, of which $8.59 was for benefits.
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How to measure the value of your company
Filed Under: Business on October 27, 2004
Most people know approximately what their homes are worth simply by keeping an eye on what other homes in their neighborhood are selling for. Determining what your business is worth isn’t quite as easy.
New study recommends heeding customer complaints
Filed Under: Business on December 05, 2004
A new survey of how customers felt their complaints about a product or service were handled provides important information for your business. According to the survey, only 16% of unhappy customers were satisfied when they complained to the company. More than half of the people surveyed refused to do business with the company again.
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Don’t let your business rely on a few major customers
Filed Under: Business on December 05, 2004
Many companies have learned the hard way the importance of a diversified customer base. Imagine a company where two or three large customers account for 70%-80% of sales. This may sound like an ideal situation—all you have to do is keep those customers happy and your sales base is assured. But it could be a recipe for disaster.
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Mileage rates change for 2005
Filed Under: Business, Taxes, IRS Regulations on December 05, 2004
The standard mileage rate for business driving will increase starting January 1, 2005. The rate goes to 40.5¢ a mile, a 3¢ increase over the 2004 rate of 37.5¢ a mile. When the 40.5¢ mileage rate is used for a business car, the amount that will be considered as depreciation (for determining remaining tax basis in the car) is 17¢ a mile.
Are your business plans taking the new depreciation rules into account?
Filed Under: Business on February 21, 2005
The tax law changes so often that it’s easy to lose
track of current rules. As you make business purchasing
decisions in 2005, be aware of these recent changes.
Read more of “Are your business plans taking the new depreciation rules into account?”
New study reveals employee preferences
Filed Under: Business on March 01, 2005
A recent employee-benefits study conducted by MetLife Inc. revealed some interesting information about employee preferences and behavior.
Take steps now to benefit from 2004 tax laws
Filed Under: Business on March 01, 2005
Last October, President Bush signed two substantial tax bills into law. Like other recent tax law changes, some provisions are permanent, but most are temporary. What steps can you take to maximize the new tax breaks for your business?
Vehicle deductions for 2005 announced by IRS
Filed Under: Business on April 04, 2005
The IRS has issued the depreciation limits for business cars first placed in service in 2005. For passenger cars, the limits are —
Cell phone expenses: Are they deductible?
Filed Under: Business on April 04, 2005
If you use a cell phone for business calls, you need to know what cell phone expenses are tax-deductible. According to the IRS, cell phones are subject to strict substantiation requirements for deductions to be allowed. The business use of the phone needs to be supported by maintaining a written record of:
The IRS has issued 2005 business vehicle depreciation
Filed Under: Business on May 25, 2005
The IRS recently announced the depreciation limits for business vehicles first placed in service during 2005.
For passenger cars, the limits are -
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New rules could make an S corporation good for your business
Filed Under: Business on May 25, 2005
The S corporation is alive and well, and this form of business operation remains appropriate for many business owners. With the changes made by the recent passage of the American Jobs Creation Act of 2004, even more business owners might consider this form of corporation. Here are the recent changes:
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What’s the best way to build customer loyalty?
Filed Under: Business on May 25, 2005
As a business owner, you know how much effort goes into attracting new customers. So once you’ve found a new customer, you want to keep that customer as long as possible. Many factors contribute to keeping your customers happy, but underlying many of them is a single issue—good communication. Your goal is to make the customer feel known, understood, and appreciated. It applies at every stage of the relationship—before the sale, while you’re reaching a deal, and after you’ve concluded the sale.
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Flexible spending accounts (FSAs)
Filed Under: Business on July 06, 2005
The IRS has just made life a little easier for those
with flexible spending accounts.
Major Tax Deadlines for August 2005
Filed Under: Business on July 27, 2005
August 1 - Due date for filing retirement or employee benefit plan returns (5500 series) for plans on a calendar year.
Businesses must now shred employee information
Filed Under: Business on July 27, 2005
A new rule has just gone into effect that hopes to prevent “dumpster divin.” identity theft. Criminals go through the discarded refuse of businesses, looking for personal information that will give them what they need to steal identities for financial gain.
Read more of “Businesses must now shred employee information”
Turn employee reviews into constructive dialogs
Filed Under: Business on July 27, 2005
The annual employee performance review—usually it’s dreaded by both supervisor and employee. The employee knows he’ll have to hear about those mistakes from months ago, and the supervisor will finally have to discuss those issues he’s been avoiding all year. Too often, the result is discomfort and embarrassment all around. Usually both parties fudge a little and are glad that it’s over for another year. Too bad, because another chance for open communication and feedback has been lost.
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New Business: IRS targets S corporations for audits
Filed Under: Business on August 30, 2005
The IRS recently announced its intention to audit 5,000 randomly selected Subchapter S corporations for tax years 2003 and 2004. The audits, scheduled to begin by the end of this year, are being conducted to identify S corporation compliance issues.
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How to make smarter hiring decisions
Filed Under: Business on August 30, 2005
Hiring and training new employees is one of the toughest jobs you face as a manager or business owner. Even when there are plenty of applicants, finding the right one is still time-consuming. Here are some tips for each stage of the process—from identifying your requirements to interviewing candidates.
Business relocation requires some planning
Filed Under: Business on September 29, 2005
Many businesses face the prospect of relocating their operations at some point. Making the move go smoothly requires careful planning. Some factors to consider include the timing of the move, the expense, employee relocations, and minimizing downtime and lost production.
Mileage deductions are increased for 2005
Filed Under: Business on October 03, 2005
If you use a vehicle for business or in moving, doing
charity work, or obtaining medical services, you need
to be aware of the increased deduction that will be
allowed for the last four months of 2005.
New Business: New per diem rates issued
Filed Under: Business on November 01, 2005
New per diem rates have been released, effective for business travel on or after October 1, 2005.
Surveys show health care costs a major business concern
Filed Under: Business on November 28, 2005
A recent survey conducted by the nonpartisan Kaiser Family Foundation revealed that the number of employers offering health insurance coverage to employees is declining. This year 60% of employers offered coverage, compared with 69% five years ago.
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Is paying zero tax a good idea for your corporation?
Filed Under: Business on November 28, 2005
When you run your business as a regular C corporation, it can make sense to pay a little tax this year to avoid large estimated tax payments next year.
Read more of “Is paying zero tax a good idea for your corporation?”
Business gifts have tax rules
Filed Under: Business on December 06, 2005
The holiday season is a time when businesses like to
give gifts to their customers and suppliers. This is a
good way to reinforce valuable business relationships
and establish goodwill. How much you spend on a gift is
a matter of business judgment. But regardless of what
you spend, the IRS has its own rules on how much of the
value you can deduct.
New Business: New energy tax breaks available this year
Filed Under: Business on January 03, 2006
Every business should be aware of the new energy tax credits and deductions that are available this year. President Bush signed the Energy Policy Act of 2005 last August, but the tax breaks in the new law just went into effect in January 2006.
Read more of “New Business: New energy tax breaks available this year”
Keep those payroll taxes paid
Filed Under: Business on January 03, 2006
With rising energy prices, many business owners are facing increasing costs and deteriorating cash flows. Make sure you avoid the temptation to borrow from the government. The IRS is a tough lender. Interest, penalties, and other punitive measures can be severe and even threaten the very existence of your business.
Major Tax Deadlines for February 2006
Filed Under: Business on January 27, 2006
February 28 - Payors must file information returns (such as 1099s) with the IRS. (Electronic filers have until March 31 to file.)
Tax filing requirements simplified for small employers
Filed Under: Business on January 27, 2006
The IRS hopes to reduce the tax filing burden for about 950,000 small businesses this year. Employers with estimated annual employment tax liability of $1,000 or less will be able to file a new Form 944 (Employer’s Annual Federal Tax Return) once a year rather than filing Form 941 (Employer’s Quarterly Federal Tax Return) four times a year. Most employers who file Form 944 will be able to make a single payment with their annual return.
Read more of “Tax filing requirements simplified for small employers”
Tap into the benefits of a retirement plan
Filed Under: Business on January 27, 2006
Does your business offer a retirement savings plan for employees? If not, consider setting one up. The tax law makes plans attractive to both employers and employees. Contribution limits increase every year for many plans. Plans for small businesses, including sole proprietors, can be set up with minimal cost and paperwork. There are even tax credits available for small employers to help offset a portion of the plan’s set-up costs.
IRS to focus on employment tax issues to reduce tax gap
Filed Under: Business on February 24, 2006
The IRS recently released new research data on the tax gap - the difference between what taxpayers should be paying in taxes and what they actually pay. In order to reduce this tax gap, the IRS has announced some of the stiffer enforcement measures it plans to use this year.
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How to make business meetings worth the time
Filed Under: Business on February 24, 2006
For most companies, business meetings are a fact of life. Although meetings sometimes are useful or necessary, too many simply waste time, and some may even harm morale. Here are some ideas for improving or shortcutting the meeting process.
New Business: 2005 inflation figures released
Filed Under: Business on March 29, 2006
Inflation is a concern of every business, affecting both the costs of doing business and the prices the company charges for its products or services.
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Is it time to change your business entity?
Filed Under: Business on March 29, 2006
As you review your business taxes for last year, there’s one other issue to consider. That’s your choice of business entity. Should you be doing business as a sole proprietorship, a partnership, or some form of corporation? It’s a decision that you should revisit periodically.
IRS announces 2006 vehicle depreciation limits
Filed Under: Business on April 26, 2006
The IRS has issued the depreciation limits for business cars first placed in service in 2006. For passenger cars, the limits are -
Read more of “IRS announces 2006 vehicle depreciation limits”
Business e-mail comes with risk and responsibility
Filed Under: Business on April 26, 2006
It’s a high tech world. Communications are faster and more frequent. E-mail and its cousin “instant messagin.” (IM) are wonderful business tools, but they come with risk and require responsibility.
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Sample plan amendment for Roth 401(k)s now available
Filed Under: Business on May 30, 2006
This year employers can offer a Roth option within their 40l(k) plans. The IRS recently issued a sample plan amendment providing language employers can use to amend their existing 40l(k)s to allow employees to designate their contributions as Roth contributions.
Read more of “Sample plan amendment for Roth 401(k)s now available”
Starting a business? Follow these tips to grow a profitable company
Filed Under: Business on May 30, 2006
Are you feeling stuck in your current job and looking for a change? Starting a new business could be your dream come true. But what might begin as an idealistic vision can turn into a costly reality check. If entrepreneurship is your goal, there are certain things you need to know.
Read more of “Starting a business? Follow these tips to grow a profitable company”
Cell phones: A business benefit or liability?
Filed Under: Business on July 10, 2006
Cell phones have made it easier for business people to communicate, but they are not always a plus in the work environment.
Read more of “Cell phones: A business benefit or liability?”
Map out a plan before opening for business
Filed Under: Business on July 10, 2006
Taking a trip without a map may get you lost, and trying to run a business without a plan is likely to have the same result.
Paperless payroll can cut business costs
Filed Under: Business on July 27, 2006
Companies looking for ways to cut costs might want to consider this new idea: Instead of issuing paper paychecks, pay employees with payroll “plastic cards” or with direct deposit to the employee’s bank account.
Consider cross-training your employees
Filed Under: Business on July 27, 2006
Have you considered cross-training your employees? Cross-training, or job rotation as it’s sometimes called, can be a win-win situation for you and your employees. Large companies often use it to prepare managers for high-level corporate positions. But it can be equally useful for employees on the shop floor or in general office positions.
Roth IRA change important for your company’s 40l(k) plan
Filed Under: Business on August 31, 2006
A new rule in 2006 lets 40l(k) plans offer employees the option of designating plan contributions as Roth IRA contributions. The benefit of a Roth is that, though the contribution isn’t tax-deductible, qualifying distributions are completely tax-free.
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What benefits does your company offer?
Filed Under: Business on August 31, 2006
To motivate or reward your employees, consider giving them a tax-free benefit. The cost of certain benefits can be nontaxable to employees and tax-deductible to your business. Offering as many tax-free benefits as your business can afford might also help you hire and retain the workers you need.
New Business: Focus on healthy habits to cut health care costs
Filed Under: Business on September 28, 2006
The rising cost of health care is a major concern to most businesses. As insurance premiums and the price tag for medical services increase every year, your company may want to pay more attention to your employees’ fitness and eating habits.
Read more of “New Business: Focus on healthy habits to cut health care costs”
Is your business paying phony invoices?
Filed Under: Business on September 28, 2006
Businesses are cheated out of millions of dollars every year with invoices for goods or services that were never delivered. Phony invoices once paid often will be followed by additional billings for publications, services, or supplies not delivered. Such schemes are successful because many businesses have slipshod procedures for approving and paying bills.
New Business: Note these changes on your 2007 business calendar
Filed Under: Business on October 26, 2006
Daylight saving time for 2006 just ended on October 29. And that brings to mind the changes made to daylight saving time next year by the energy law passed in 2005.
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Do a year-end tax-cutting review for your business
Filed Under: Business on October 26, 2006
Many small businesses and self-employed business owners make the mistake of not thinking about taxes until it’s time to file their returns. That’s simply too late—most moves must be made before year-end. Here are a few tax-cutting ideas that could help you reduce your 2006 business taxes.
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Don’t overlook these business tax deductions
Filed Under: Business on November 29, 2006
As a small business owner, you probably don’t need one more thing to do during the busy holiday season. But before you say goodbye to 2006, consider adding this: a search for missing business tax deductions. Finding one of these deductions might give you real tax savings.
New Business: Formula for telephone tax refund is announced by the IRS
Filed Under: Business on January 02, 2007
After losing several court challenges to charging an excise tax on long-distance telephone service, the IRS is no longer assessing the tax. In May of 2006, the IRS announced that it will refund the tax paid by individuals, businesses, and tax-exempt organizations during the 41 months from March 2003 through July 2006.
Read more of “New Business: Formula for telephone tax refund is announced by the IRS”
Build relationships with your customers
Filed Under: Business on January 02, 2007
Customers are just like you. They have wants, desires, and needs. They appreciate being valued, respected, and treated fairly. Are you making the most of the potential relationship?
New Business: Bring your corporate minutes up to date
Filed Under: Business on January 27, 2007
The start of a new year is a good time to take care of a few “housekeeping” details in your business. One of those details, and it’s a very important one, is making certain that your corporate minutes are complete, accurate, and up to date.
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Can a business grow too fast?
Filed Under: Business on January 27, 2007
Most businesses hope to grow. They consider themselves successful if growth is taking place, and the faster the growth the better. Can too much business growth be bad for a company? It can be if the company grows too rapidly without adequate planning.
Government survey gives wage and benefit costs
Filed Under: Business on February 27, 2007
As you review your company’s outlay for employee wages and benefits, you may find it useful to compare your spending with national averages.
Read more of “Government survey gives wage and benefit costs”
Five things every business owner should do this year
Filed Under: Business on February 27, 2007
If you own or manage your own business, you’re probably busy monitoring operations and dealing with everyday problems. But there are a few things that you should make time to do every year. These are important for your longer term business and personal success.
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New Business: Tax refund is good news. Now the bad news. .
Filed Under: Business on March 29, 2007
Businesses are being reminded that the telephone tax refund they received this year may be taxable income on their 2007 income tax returns.
Read more of “New Business: Tax refund is good news. Now the bad news. .”
Your business can choose a retirement plan that fits
Filed Under: Business on March 29, 2007
Mention the words “employee benefits” to a small business owner and you might hear the groans of someone burned by sky-rocketing costs and mind-numbing complexity. But one type of benefit—a retirement plan—need not be a stress-inducing perk. In fact, it might just be the powerful tool you’ve been looking for to save taxes and retain employees.
Read more of “Your business can choose a retirement plan that fits”
New Business: Wellness programs are in the news again
Filed Under: Business on April 27, 2007
With ever-increasing health care costs, businesses are taking another look at wellness programs for their employees. Typically, a wellness program pays employees for engaging in healthy activities - exercising, losing weight, quitting smoking, for example. In return for paying employees to be healthier, companies generally see a decline in health care costs and an increase in productivity. One large corporation says it has saved $225 per employee in medical costs each year due to its wellness programs. Another reports $2 to $3 in health care savings for every dollar spent on health improvement programs.
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Avoid the #1 mistake when buying a business
Filed Under: Business on April 27, 2007
There are many mistakes one can make in buying a business. But if there’s any one which could be given top billing, it would be buying too quickly.
Major Tax Deadlines For June 2007
Filed Under: Business on May 31, 2007
June 15 - Second quarter 2007 individual estimated tax is due.
New Business: IRS announces 2007 vehicle deprecation limits
Filed Under: Business on May 31, 2007
The IRS has issued the depreciation limits for business cars first placed in service in 2007. For passenger cars, the limits are —
Read more of “New Business: IRS announces 2007 vehicle deprecation limits”
How to put the right price on your products
Filed Under: Business on May 31, 2007
In business, making pricing decisions is always tough. At times you may be tempted to cut prices hoping to generate higher sales volume. But sometimes that just produces lower margins on a low volume. What do you do if you’re being squeezed by cost increases? How do you respond if your customers complain? Can you justify holding prices steady if your competitors cut their prices?
What’s New in Taxes: Small Business Tax Act is signed by President Bush
Filed Under: Business on June 28, 2007
President Bush signed the Small Business and Work Opportunity Tax Act on May 25, 2007. This law is part of a larger bill that provides funds for the troops and increases the federal minimum wage over a two-year period to $7.25.
Read more of “What’s New in Taxes: Small Business Tax Act is signed by President Bush”
New Business: Age 50-plus is fastest growing group of new business owners
Filed Under: Business on June 28, 2007
According to the Small Business Administration, the fastest-growing category of new entrepreneurs are people aged 50 to 62. About half of all small business owners are age 50 or older.
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Major Tax Deadlines For August 2007
Filed Under: Business on July 27, 2007
Businesses are required to make federal tax deposits on dates determined by various factors that differ from business to business.
New Business: Free IRS online workshop available to nonprofit organizations
Filed Under: Business on July 27, 2007
The IRS now has an Internet version of its Exempt Organizations Workshop available on its Web site at www.irs.gov. The workshop, titled “Stay Exempt – Tax Basics for 501(c)(3)s.” covers tax compliance issues faced by small and mid-sized tax-exempt organizations, including charities and churches.
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Is your worker an "employee" or an "independent contractor"?
Filed Under: Business on July 27, 2007
There’s an ongoing debate that’s almost as old as the tax code itself. If you have people working for your business, should you classify them as employees or as independent contractors?
Read more of “Is your worker an "employee" or an "independent contractor"?”
New Business: How’s your customer service?
Filed Under: Business on August 30, 2007
According to a recent survey, 48% of consumers say that customer service is the biggest factor in creating loyalty to a company. 37% said it was product quality; 13% said it was price. Brand name or the company’s reputation was cited by the remaining 2%.
Make the right choice in deducting car expenses
Filed Under: Business on August 30, 2007
Taxpayers generally may use one of two methods for computing business car expenses: the actual cost method or the standard rate method. The standard mileage rate may not be used in certain situations; the actual cost method may be used by any taxpayer.
Read more of “Make the right choice in deducting car expenses”
Employer’s tip credit isn’t reduced
Filed Under: Business on September 26, 2007
As of July 24, 2007, the new federal minimum wage increased from $5.15 an hour to $5.85. By the summer of 2009, the minimum wage will increase to $7.25 an hour.
A business consultant can give useful feedback
Filed Under: Business on September 26, 2007
Is there an especially baffling problem in your business? Or do you have problems you have identified but do not have the time to address? Perhaps you should consider hiring a good business consultant.
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Small tax-exempt organizations have new filing requirement
Filed Under: Business on October 30, 2007
Thanks to a provision in the Pension Protection Act of 2006, tax-exempt organizations with annual gross receipts of $25,000 or less will generally have to file a new annual report with the IRS.
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Keep employees informed
Filed Under: Business on October 30, 2007
Surveys show that employees tend to underestimate the amount of money that their employer spends on employee benefits. It’s up to you to get them to realize their paycheck is only part of the compensation they are receiving as employees.
New Business: Survey estimates 2008 pay raises
Filed Under: Business on November 29, 2007
An August 2007 survey conducted by WorldatWork revealed that employers are expecting to increase salaries by 3.9% in 2008.
Read more of “New Business: Survey estimates 2008 pay raises”
Are you paying enough attention to cash flow in your business?
Filed Under: Business on November 29, 2007
In assessing their business, most owners focus on growth in sales and profits. Yet these do not guarantee business health and success. Another important gauge is cash flow. Simply put, is there enough cash inflow to cover cash outflow? Cash flow needs change on a daily basis. The more you’re aware of cash flow needs, the more control you’ll have over your business.
Read more of “Are you paying enough attention to cash flow in your business?”
New Business: New mileage rates issued for 2008
Filed Under: Business on December 27, 2007
The IRS has issued the 2008 standard mileage rate that businesses can use to calculate the deductible costs of driving an automobile for business.
Read more of “New Business: New mileage rates issued for 2008”
How to prevent a partnership failure
Filed Under: Business on December 27, 2007
Just as marriages don’t always work out, there is no guarantee that a business partnership will be successful. Before you enter into a partnership, here are some questions you should ask yourself.
New Business: Is it time to purchase business equipment?
Filed Under: Business on January 30, 2008
As 2008 gets underway, you may be analyzing your company’s need for new equipment. This may be a good year for business equipment purchases - at least from a tax standpoint.
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Turn your hobby into a business for a lower tax bill
Filed Under: Business on January 30, 2008
Turning your hobby into a business could lower your tax bill. If you have a hobby that takes up a lot of time and money, take a close look to see if it qualifies as a business. Why? Having a business instead of a hobby could mean a lower tax bill.
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Cost of health insurance a major concern for businesses
Filed Under: Business on March 06, 2008
The cost of health insurance is a major concern, both for employees and employers. A recent survey of approximately 3,000 companies revealed that among those with 200 or fewer employees, 61% offered health insurance in 2007. This represents a drop from 63% in 2006.
Read more of “Cost of health insurance a major concern for businesses”
New Business: Sleepy workers are a business problem
Filed Under: Business on March 28, 2008
The nonprofit National Sleep Foundation recently conducted a survey that reveals many American workers suffer from lack of sleep. Almost a third of employees surveyed said they had become very sleepy or actually fallen asleep on the job during the past month. 12% of those surveyed said they came to work late in the past month. 36% said they have nodded off or fallen asleep while driving, with 26% reporting driving drowsy on the job.
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New Business: Vehicle depreciation limits
Filed Under: Business on April 28, 2008
The IRS has issued the depreciation limits for business vehicles first placed in service in 2008. Recent legislation allows higher limits for new vehicles that will qualify for 50% bonus depreciation.
What should you do to help your child get started in business?
Filed Under: Business on April 28, 2008
Perhaps you’re thinking of helping one of your children get started in business. Since the failure rate for new businesses is high, you need to do whatever you can to increase your child’s chances of success. That includes considering three M’s: motivation, money, and mentoring.
Read more of “What should you do to help your child get started in business?”
New businesses have tax filing requirements
Filed Under: Business on May 06, 2008
The IRS has just launched a campaign to help educate
new small business owners about their federal tax
responsibilities. “Understanding and meeting their tax
filing requirements is one of the biggest challenges
faced by people starting out in business.” says the
head of the IRS Small Business Division.
It’s time for midyear business planning
Filed Under: Business on June 06, 2008
It’s time to do a midyear review of your business tax planning. Here are six ideas to consider.
Customer Service: Does your business just say it or do it?
Filed Under: Business on June 06, 2008
Many companies know how to SAY customer service; they just don’t know how to DO customer service. Yet, good customer service leads to repeat sales and referrals, which lead to higher revenues and profits. The result is a stronger, more secure business.
Read more of “Customer Service: Does your business just say it or do it?”
New Business: IRS raises mileage rates
Filed Under: Business on June 26, 2008
With gas prices soaring, the IRS has responded to numerous requests to increase the standard mileage deduction for business driving.
Turn a complaint into an opportunity
Filed Under: Business on June 26, 2008
Nobody in business wants an unhappy customer, but when a customer complains, think of it as three opportunities in one.
Federal minimum wage increases again
Filed Under: Business on July 29, 2008
The federal minimum wage increased from $5.85 an hour to $6.55 an hour, effective July 24, 2008.
IRS audit focus is on worker classification
Filed Under: Business on July 29, 2008
One of the biggest headaches for business owners is the classification of their workers. If the wrong choice is made, the IRS could step in and assess additional taxes, penalties, and interest.
Have you planned your business equipment purchases for this year?
Filed Under: Business on August 11, 2008
Don’t let time slip away and lose out on a big 2008 tax
break for your business.
Read more of “Have you planned your business equipment purchases for this year?”
The clock is ticking on this tax break
Filed Under: Business on September 04, 2008
Don’t let time slip away and lose out on a big 2008 tax break for your business.
How to spot problem accounts early
Filed Under: Business on September 04, 2008
If you extend credit to your customers, some losses are inevitable. So unless you are willing to forgo the credit part of your sales, you have to figure out ways to control your bad debt losses.
New Business: Partnership filing extensions shortened next year
Filed Under: Business on September 29, 2008
Partnerships are “pass-throug.” entities that file Form 1065 reporting partnership income but paying no income tax. Instead the income “passes throug.” to partners who pay tax on their share of the partnership’s income on their individual tax returns.
Read more of “New Business: Partnership filing extensions shortened next year”
S corporations are now facing increased scrutiny from the IRS
Filed Under: Business on September 29, 2008
According to the Journal of Accountancy, the S corporation is the most popular form of business ownership in the country, swelling to around four million entities. The primary reason for their growth is that S corporations avoid the double taxation that applies to regular C corporations while still offering protection from personal liability.
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Partnership filing extensions shortened next year
Filed Under: Business on October 13, 2008
Partnerships are “pass-throug.” entities that file Form 1065 reporting partnership income but paying no income tax. Instead the income “passes throug.” to partners who pay tax on their share of the partnership’s income on their individual tax returns.
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S corporations are now facing increased scrutiny from the IRS
Filed Under: Business on October 13, 2008
According to the Journal of Accountancy, the S corporation is the most popular form of business ownership in the country, swelling to around four million entities. The primary reason for their growth is that S corporations avoid the double taxation that applies to regular C corporations while still offering protection from personal liability.
Read more of “S corporations are now facing increased scrutiny from the IRS”
New Business: FUTA surtax extended for a year
Filed Under: Business on November 06, 2008
The Federal Unemployment Tax Act (FUTA) imposes a 6.2% tax on the first $7,000 of wages paid annually to employees. Years ago, a .2% surtax was added as a “temporar.” measure; this “temporar.” surtax was set to expire after 2008.
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Low-cost benefits can boost employee morale
Filed Under: Business on November 06, 2008
Fringe benefits are important to your employees. Wage levels often don’t differ much between companies, so the fringes you offer can be an important factor in hiring and retaining workers.
What’s New in Business: Social security taxable wage base will increase in 2009
Filed Under: Business on November 06, 2008
The amount of wages subject to social security tax will increase next year to $106,800, up from $102,000 for 2008. The Social Security Administration estimates that 11 million taxpayers will pay higher taxes as a result.
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New Business: IRS releases new per diem travel rates
Filed Under: Business on November 26, 2008
If you’re in business, you probably know expenses for business travel, meals, and entertainment must meet strict tests in order to be deductible. In addition, you must have records to substantiate the expenses.
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Employee embezzlement: Are you taking steps to prevent theft in your business?
Filed Under: Business on November 26, 2008
Employee embezzlement and other forms of theft often follow a predictable pattern. First, the employee is faced with significant external pressures such as high gambling debts, mounting medical bills, or substance abuse problems. To relieve this pressure, he or she finds an opportunity to steal from the company, especially if the firm’s internal controls are perceived to be weak. From there, it’s easy to rationalize fraudulent behavior—“I’ll just take some money now, and pay it back later.” or “I deserve a raise, but management’s stingy, so I’ll provide it myself.” or “They’ve got plenty. They’ll never miss it.”
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Control health costs and taxes with a Health Savings Account
Filed Under: Business on January 12, 2009
Health Savings Accounts (HSAs) have been slow to catch on with the public, but Congress is doing its part to champion their cause. It has tinkered with the law in recent years to make HSAs more appealing. In fact, you now have a once-in-a-lifetime opportunity—literally—to transfer funds tax-free to an HSA.
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New Business: Some businesses cut matching program
Filed Under: Business on January 12, 2009
As businesses look for ways to cut costs in the current economic slump, some are conserving cash by eliminating the company’s matching contributions to workers’ 401(k) accounts. These employer matches have been a popular employee benefit, with the employer typically contributing 50% of employees’ contributions on up to 6% of their annual pay.
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Payroll tax deposits
Filed Under: Business on January 30, 2009
Payroll tax deposits: Employers generally must deposit Form 941 payroll taxes (income tax withheld from employees’ pay and both the employer’s and employees’ share of social security taxes) on either a monthly or semiweekly deposit schedule. There are exceptions if you owe $100,000 or more on any day during a deposit period, if you owe $2,500 or less for the calendar quarter, or if your estimated annual liability is $1,000 or less.
New Business: Health care to cost more in 2009
Filed Under: Business on January 30, 2009
Both employers and employees can expect higher health care costs in 2009.
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How to compete against a larger rival
Filed Under: Business on January 30, 2009
When Starbucks or Walmart or Home Depot comes to town, how can a small business successfully compete? That’s a tough question, one that’s been the subject of numerous magazine articles, Internet blogs, and doctoral theses. One strategy that doesn’t work is doing nothing - sitting back to watch what happens. By the time your rival’s doors open, it may be too late to prevent your profit margins and market share from disappearing.
New Business: New law has tax breaks for businesses
Filed Under: Business on February 25, 2009
The American Recovery and Reinvestment Act of 2009 contains a number of provisions that will affect businesses. Here’s a brief overview.
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Has your business considered the benefits of going green?
Filed Under: Business on February 25, 2009
We see, hear, and read every day that the world is becoming more environmentally conscious and taking steps to “go green.” While many of these may be out of reach for smaller businesses, there are several things that even small businesses can do to head toward going green.
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New Business: Big business expresses views on health care reform
Filed Under: Business on March 30, 2009
According to a recent survey of 489 U.S. employers, big companies do not favor many of the proposals now being offered for reforming the country’s health care system. Nearly 88% of those surveyed opposed the idea of replacing the tax exclusion for employer-paid health insurance premiums with refundable health care tax credits for employees.
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Are you a fireman or a business manager?
Filed Under: Business on March 30, 2009
In your business are you constantly putting out fires caused by cash shortages? How well you manage your cash flow affects your business’s profitability and longevity. Here are a few “fire preventio.” suggestions.
Get a tax refund for your 2008 business loss
Filed Under: Business on April 03, 2009
Small businesses that had an operating loss in 2008 now
have more options for carrying that loss back to prior
tax years to get a tax refund.
New Business: Government jobs pay more than private sector jobs
Filed Under: Business on April 27, 2009
Even as the economy struggles, workers in government jobs are enjoying an increase in pay and benefits.
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How does your company measure up?
Filed Under: Business on April 27, 2009
No matter how successful your business has been in the past, you can probably do better. And if you’ve been struggling to keep your head above water, there’s certainly room for improvement. So how can you gain ground on the competition?
New Business: 2009 vehicle deductions
Filed Under: Business on June 01, 2009
Each year the IRS publishes depreciation limits for business vehicles first placed in service that year. Because 50% bonus depreciation is allowed only for new vehicles, these limits are different for new and used vehicles.
New rules for NOLs
Filed Under: Business on June 01, 2009
Essentially, a net operating loss or NOL is generated when a business has more deductions than income.
Need business equipment? Check out this tax break
Filed Under: Business on July 09, 2009
The tax law passed last February included important
incentives for business investment.
Read more of “Need business equipment? Check out this tax break”
Final increase in federal minimum wage this month
Filed Under: Business on July 09, 2009
July 24, 2009, brings the third and final increase in the federal minimum wage mandated by the “Small Business and Work Opportunity Act of 2007.” That law was signed by George W. Bush on May 25, 2007.
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New COBRA health subsidy: What employers and employees need to know
Filed Under: Business on July 09, 2009
Job loss brings many challenges to families, and that often includes obtaining affordable health insurance coverage. Under a 1985 federal law referred to as “COBRA.” many employees who are discharged can keep health insurance coverage provided by their former employer for as many as 18 months. But to do so, the employee has to pay 100% of the COBRA premiums.
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New Business: IRS defines new groups for work credit
Filed Under: Business on July 30, 2009
The work opportunity tax credit is available to businesses that hire workers from certain disadvantaged target groups. The credit is based on the first-year wages paid to qualifying employees.
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Consider incremental cost in business purchasing
Filed Under: Business on July 30, 2009
If you run a business, you probably make many different kinds of purchasing decisions. You might buy some items infrequently and only one at a time (for example, computers). At the other extreme, there are probably some items that you buy regularly and in relatively large quantities. For a print shop, paper might be your highest volume purchase. For a manufacturing business, it might be plastic or steel.
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IRS urges small businesses to use tax breaks
Filed Under: Business on August 28, 2009
The “American Recovery and Reinvestment Act.” the economic stimulus law passed earlier this year, included a number of tax-saving opportunities for businesses. Because some of these tax breaks are available for a short time only, the IRS is urging small businesses to act now to benefit from the provisions.
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Is your business prepared for flu season?
Filed Under: Business on August 28, 2009
The government is encouraging businesses to look ahead to the upcoming fall and winter flu season and to make plans to minimize the flu’s effects on business productivity. Flu season may be worse this year due to the H1N1 or swine flu which still has not been effectively brought under control.
New Business: Our workforce is changing
Filed Under: Business on September 29, 2009
Things are changing on the job front. Here are a few workforce numbers reported recently.
Six questions to ask before starting a business
Filed Under: Business on September 29, 2009
Throughout America, in rural towns and large cities, companies come and go with clockwork frequency. That specialty store with the ragged sign and lousy service? It’s been replaced by a funky restaurant that serves great linguini. Yesterday’s bicycle shop is today’s bakery. It’s no wonder. Creating a company that can survive even a few years is not an easy feat.
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New Business: Time’s running out for 2009 business tax planning
Filed Under: Business on October 29, 2009
Although it’s getting late in the year, small business owners still have time to reduce their 2009 tax bill.
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Take time to do a "banker" review
Filed Under: Business on October 29, 2009
Have you taken a look at your company’s banking relationship lately? Chances are you opened an account at a local branch when you started the business and haven’t changed since. But your business and its banking needs have almost certainly changed.
New Business: NOL carryback extended by recent law
Filed Under: Business on November 25, 2009
Normally, a business can carry back a net operating loss (NOL) for only two years before carrying it forward for up to 20 years. A prior law change allowed a carryback for three, four, or five years to qualified small businesses for NOLs in tax years beginning or ending in 2008.
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Wages or dividends? An important tax question for shareholder-employees
Filed Under: Business on November 25, 2009
S corporations are the most popular form of corporate business structure. There are excellent tax planning benefits uniquely available to S corporation shareholders who are also employees, not the least of which is the opportunity to manage self-employment and payroll tax liabilities. Unlike sole proprietorships, for example, S corporations can pay wages to shareholder-employees and also distribute income to them as corporate dividends, which are free of the payroll taxes that apply to wages.
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Rules changed for business losses
Filed Under: Business on December 04, 2009
Normally, a business can carry back a net operating
loss (NOL) for only two years before carrying it
forward for up to 20 years. The “American Recovery and
Reinvestment Act of 2009.” signed earlier this year,
allowed a carryback for three, four, or five years to
qualified small businesses for NOLs in tax years
beginning or ending in 2008. To qualify for the longer
carryback period, the business had to have average
gross receipts of $15 million or less.
New Business: Business mileage rate lowered for 2010
Filed Under: Business on December 31, 2009
Companies that don’t want to keep track of the actual costs of using a vehicle for business purposes may use a standard mileage rate instead. An annual study of the fixed and variable costs of operating an automobile is used to determine what the standard mileage rate will be for a given year. Due mainly to lower fuel costs, the mileage rate for business driving drops in 2010 to 50 cents a mile, down from the 2009 rate of 55 cents a mile. The rate can be used for cars, vans, pickups, and panel trucks.
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Does your business have this vital document?
Filed Under: Business on December 31, 2009
What will happen to your business if you die, retire, or become disabled? If you are the owner of a small business, you need a means for the transfer of that business in the event something happens to you. With a “buy-sel.” agreement, you are able to plan for many contingencies over which you would otherwise have little control. A buy-sell agreement should establish a price for the business and the method of succession.
Employment audits begin this year
Filed Under: Business on January 30, 2010
The IRS is launching a three-year auditing project that will examine about 6,000 U.S. companies for compliance with employment tax obligations. The project is the first of its kind in 25 years, and its primary objective is to collect data to identify areas of noncompliance across all industry sizes and sectors, including nonprofits and governmental entities.
Tips for financing a new business
Filed Under: Business on January 30, 2010
All small businesses start with something in common: they devour cash. They need cash for inventory, office space, insurance, legal fees, business licenses, remodeling costs, and the list goes on. Because very few start-ups can secure equity financing from venture capitalists, most business owners must get needed cash from a combination of personal assets and debt. If you’re thinking about starting a small business, here’s a short list of financing sources to consider.
New Business: Unemployed workers get COBRA extension
Filed Under: Business on March 02, 2010
On December 19, 2009, a defense spending bill was signed into law which included an extension and expansion of the subsidy for COBRA health insurance premiums. COBRA is the law that allows former employees to keep their employer’s health insurance for up to 18 months if they pay the premiums.
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Corporate minutes are an important part of your company’s tax planning
Filed Under: Business on March 02, 2010
Writing up the minutes of board of directors’ meetings is not exactly a high priority for most business owners. Yet well-documented corporate minutes can provide valuable supporting evidence if your tax positions are ever questioned.
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Business Alert: IRS to conduct employment audits
Filed Under: Business on March 05, 2010
The IRS is launching a three-year auditing project that
will examine about 6,000 U.S. companies for compliance
with employment tax obligations. The project is the
first of its kind in 25 years, and its primary objective
is to collect data to identify areas of noncompliance
across all industry sizes and sectors, including
nonprofits and governmental entities. This data will be
used by the IRS to update its audit selection formulas
in an area where noncompliance is considered a serious
drain on the U.S. Treasury.
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New Business: "HIRE Act" has tax breaks for businesses
Filed Under: Business on April 02, 2010
The “Hiring Incentives to Restore Employment Ac.” .”HIRE Ac.”) was signed into law by President Obama on March 18, 2010. The law includes temporary tax breaks for businesses that hire workers who have been unemployed for at least 60 days, and it extends for one year the higher expensing limit for business equipment purchases.
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Follow the IRS rules if you borrow money from your corporation
Filed Under: Business on April 02, 2010
Borrowing from your closely held corporation may seem simple, but without proper planning it can be painfully expensive. The IRS often reviews such loans to determine if they’re merely disguised cash withdrawals. For example, the IRS may treat an improperly structured loan as a dividend, which would be taxable to you and not deductible by the corporation.
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HIRE Act has tax breaks for businesses
Filed Under: Business on April 06, 2010
The “Hiring Incentives to Restore Employment Ac.”
(HIRE Act) was signed into law by President Obama on
March 18, 2010. The law includes temporary tax breaks
for businesses that hire workers who have been
unemployed for at least 60 days, and it extends for one
year the higher expensing limit for business equipment
purchases.
New Business: IRS alerts businesses to tax benefits
Filed Under: Business on May 04, 2010
The “HIRE Act.” passed in March, provides tax incentives for companies to hire unemployed workers. One of these incentives is an exemption from social security payroll taxes for every qualified worker hired after February 3, 2010, and before January 1, 2011.
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How to improve your chances of getting a business loan
Filed Under: Business on May 04, 2010
Despite the recent bank bailouts, credit is still tight for small business owners hoping to expand their operations or entrepreneurs embarking on new ventures. How can you improve the chances of obtaining a bank loan for your small business? Take a lesson from the Boy Scout motto: Be prepared.
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Tax update for businesses
Filed Under: Business on May 05, 2010
* COBRA SUBSIDY. The subsidy for COBRA health insurance
premiums, which expired March 31, has been extended
through May 31, 2010. The “Continuing Extension Act
of 201.” was signed on April 15. It provides a
continuation of the 65% subsidy for workers who lose
their jobs between September 1, 2008, and May 31, 2010.
The subsidy is available for up to 15 months.
New Business: IRS releases 2010 vehicle depreciation limits
Filed Under: Business on June 02, 2010
The IRS has released the annual depreciation limits for business vehicles first placed in service during 2010. For passenger automobiles, the deduction limits for the first three years are $3,060, $4,900, and $2,950, and $1,775 for each succeeding year. For trucks and vans, the deduction limits for the first three years are $3,160, $5,100, and $3,050, and $1,875 for each succeeding year.
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Should your business operate as an LLC?
Filed Under: Business on June 02, 2010
You’ve beaten the odds. Your business has succeeded and your profits are growing. But you struggle with the uncertainty of whether you are operating under the right legal form. Should you incorporate? Form a partnership? Perhaps you should consider a form of business that has become very popular: the LLC.
One-third of those eligible used COBRA subsidy
Filed Under: Business on July 07, 2010
According to a study by the Treasury’s Office of Economic Policy, about a third of unemployed workers who were eligible took advantage of the COBRA subsidy to help pay for their health insurance.
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Starting a business? Avoid these hiring mistakes
Filed Under: Business on July 07, 2010
Challenges that merely annoy an established firm often capsize a start-up company. This is especially true in the area of staffing. When a big corporation makes a hiring mistake, the company suffers, but survives. Committed by a fledgling firm, the same mistake may spell disaster. After all, if your company employs only five people, one wrongly hired employee will make up a fifth of your work force. That person’s incompetence or poor people skills can bludgeon the firm’s bottom line.
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Do midyear tax planning
Filed Under: Business on August 05, 2010
It’s time to do a midyear review of your business tax planning. Here are five ideas to consider.
Are all your business eggs in one basket?
Filed Under: Business on August 05, 2010
Many small business owners share one problem, especially in their early days. It’s being over-reliant on a single customer or supplier for much of their business. If you’re in that position, your business is operating with higher risk. Just as with investments, you don’t want all your eggs in one basket. Your goal should be a well-diversified portfolio of customers and suppliers.
Do midyear tax planning for your business
Filed Under: Business on August 05, 2010
It’s time to do a midyear review of your business tax
planning. Here are five ideas to consider.
New Business: Important deadline extended for small charities
Filed Under: Business on September 01, 2010
All nonprofit organizations (except for churches and church-related groups) must file an annual return with the IRS. Failure to do so for three consecutive years results in the loss of the organization’s tax-exempt status. The filing deadline for the 2009 return was May 17, 2010, and thousands of small charities hit the three-year failure to file point on that date.
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Look into this new 2010 tax credit for your small business
Filed Under: Business on September 01, 2010
When small business owners think about the recent health care reform, they may be thinking only of its long-term implications. But the legislation actually provides an immediate tax break for qualified small businesses and nonprofit organizations. Beginning this year, the “Patient Protection and Affordable Care Ac.” offers a tax credit of up to 35% of employer-paid health care costs. Does your business qualify? The answer lies in a little math.
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