24 Sep 2022
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Q4 2022 Business Tax Deadlines

Roger Rossmeisl, CPA
Small Business Tax Briefs
Q4 2022 Business Tax Deadlines

Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Note: Certain tax-filing and tax-payment deadlines may be postponed for taxpayers who reside in or have businesses in federally declared disaster areas. Monday, October 3 The last day you can initially set up a SIMPLE IRA plan, provided you (or any predecessor employer) didn’t previously maintain a SIMPLE IRA plan. If you’re a new employer that comes into existence after October 1 of the year, you can establish a SIMPLE IRA plan as soon...

18 Sep 2022
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Estimated Tax Payments: Who Owed Them and When is the Next One Due?

Roger Rossmeisl, CPA
Individual Tax Briefs
Estimated Tax Payments: Who Owes Them and When is the Next One Due?

If you don’t have enough federal tax withheld from your paychecks and other payments, you may have to make estimated tax payments. This is the case if you receive interest, dividends, self-employment income, capital gains or other income. Here are the applicable rules for paying estimated tax without triggering the penalty for underpayment. When are the payments due? Individuals must pay 25% of a “required annual payment” by April 15, June 15, September 15, and January 15 of the following year, to avoid an underpayment penalty. If one of those dates falls on a weekend or holiday, the payment is due on the next business day. So the fourth installment for 2022 is due on Monday, January 16, 2023. Payments are made using Form 1040-ES. How much should you...

18 Sep 2022
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How a Valuation Pro Can Help with Business Interruption Claims

Roger Rossmeisl, CPA
Valuation Briefs
How a Valuation Pro Can Help with Business Interruption Claims

Summer can bring extreme weather, including floods, droughts, wildfires, tornadoes and hurricanes. These natural disasters and other crises can interrupt normal business operations, causing significant financial losses. If disaster strikes, a business interruption insurance policy can allow you to recoup lost profits, repair damaged assets and cover other incremental expenses. When a covered event has occurred, a business valuation professional can help explain what’s covered and calculate how much you’re entitled to recover. Coverage basics Business interruption insurance is arguably one of the most complicated insurance products on the market today. And most policies require claims to be filed in a relatively short period of time (often within 30 days). In addition to replacing any damaged assets, such as inventory or machinery, a business interruption policy typically covers lost...

18 Sep 2022
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Inflation Reduction Act Provisions of Interest to Individuals

Roger Rossmeisl, CPA
Individual Tax Briefs
Inflation Reduction Act Provisions of Interest to Individuals

You may have heard that the Inflation Reduction Act (IRA) was signed into law recently. While experts have varying opinions about whether it will reduce inflation in the near future, it contains, extends and modifies many climate and energy-related tax credits that may be of interest to individuals. Non-business energy property Before the IRA was enacted, you were allowed a personal tax credit for certain non-business energy property expenses. The credit applied only to property placed in service before January 1, 2022. The credit is now extended for energy-efficient property placed in service before January 1, 2033. The new law also increases the credit for a tax year to an amount equal to 30% of: The amount paid or incurred by you for qualified energy efficiency improvements installed...

18 Sep 2022
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Inflation Reduction Act Provisions of Interest to Small Businesses

Roger Rossmeisl, CPA
Small Business Tax Briefs
Inflation Reduction Act Provisions of Interest to Small Businesses

The Inflation Reduction Act (IRA), signed into law by President Biden on August 16, contains many provisions related to climate, energy and taxes. There has been a lot of media coverage about the law’s impact on large corporations. For example, the IRA contains a new 15% alternative minimum tax on large, profitable corporations. And the law adds a 1% excise tax on stock buybacks of more than $1 million by publicly traded U.S. corporations. But there are also provisions that provide tax relief for small businesses. Here are two: A payroll tax credit for research Under current law, qualified small businesses can elect to claim a portion of their research credit as a payroll tax credit against their employer Social Security tax liability, rather than against their income tax...

18 Sep 2022
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Is Your Business Required to Report Employee Health Coverage?

Roger Rossmeisl, CPA
Small Business Tax Briefs
Is Your Business Required to Report Employee Health Coverage?

As you’re aware, certain employers are required to report information related to their employees’ health coverage. Does your business have to comply, and if so, what must be done? Basic rules Certain employers with 50 or more full-time employees (called “applicable large employers” or ALEs) must use Forms 1094-C and 1095-C to report the information about offers of health coverage and enrollment in health coverage for their employees. Specifically, an ALE uses Form 1094-C to report summary information for each employee and to transmit Forms 1095-C to the IRS. A separate Form 1095-C is used to report information about each employee. In addition, Forms 1094-C and 1095-C are used to determine whether an employer owes payments under the employer shared responsibility provisions (sometimes referred to as the...

18 Sep 2022
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Is Your Income Tax Withholding Adequate?

Roger Rossmeisl, CPA
Individual Tax Briefs
Is Your Income Tax Withholding Adequate?

When you filed your federal tax return this year, were you surprised to find you owed money? You might want to change your withholding so that this doesn’t happen again next year. You might even want to adjust your withholding if you got a big refund. Receiving a tax refund essentially means you’re giving the government an interest-free loan. Adjust if necessary Taxpayers should periodically review their tax situations and adjust withholding, if appropriate. The IRS has a withholding calculator to assist you in conducting a paycheck checkup. The calculator reflects tax law changes in areas such as available itemized deductions, the child credit, the dependent credit and the repeal of dependent exemptions. You can access the IRS calculator here: https://www.irs.gov/individuals/tax-withholding-estimator Life changes There are some situations when you should...

28 Aug 2022
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IRS Provides Simplified Method for Extending Portability Election

Roger Rossmeisl, CPA
Individual Tax Briefs
IRS Provides Simplified Method for Extending Portability Election

The IRS has released a procedure (Rev Proc 2022-32) that provides a new, simplified method for obtaining an extension of time to make a "portability" election. A portability election allows a surviving spouse to apply a deceased spouse's unused exclusion (DSUE) amount to their own transfers during life or at death. New simplified method The new procedure allows certain estates to use to obtain an extension of time to elect portability of a DSUE amount. The procedure applies to estates that are not normally required to file an estate tax return because the value of the gross estate and adjusted taxable gifts is under the filing threshold and the decedent has a surviving spouse.  Under the new procedure, an extension request must be made on or before the...

28 Aug 2022
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Do Your ESG Initiatives Open the Door to Fraud?

Roger Rossmeisl, CPA
Fraud Briefs
Do Your ESG Initiatives Open the Door to Fraud?

Within a relatively short period, corporate environmental, social and governance (ESG) initiatives evolved from a disjointed and confusing set of goals to a more unified business imperative. This is largely because investors, employees, customers and other stakeholders have demanded it. But as companies ramp up ESG spending and require executives to meet ESG objectives, the likelihood of fraud also increases. Although the SEC has created a Climate and ESG Task Force, there’s currently little regulatory guidance related to ESG and fraud. Therefore, your business needs to be proactive. Broad range of goals When designed and managed strategically, ESG initiatives target a broad range of goals — for example, they reduce environmental impact, increase workforce diversity and require transparent accounting methods. Yet, despite your organization’s best intentions, fraud can...

28 Aug 2022
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How to Avoid the Early Withdrawal Tax Penalty on IRA Distributions

Roger Rossmeisl, CPA
Individual Tax Briefs
How to Avoid the Early Withdrawal Tax Penalty on IRA Distributions

When you take withdrawals from your traditional IRA, you probably know that they’re taxable. But there may be a penalty tax on early withdrawals depending on how old you are when you take them and what you do with the money. Important: Once you reach a certain age, you must start taking required minimum distributions from your traditional IRAs to avoid a different tax penalty. Previously, the required beginning date (RBD) was April 1 of the year after the year in which you turn 70½. However, a 2019 law changed the RBD to 72 for individuals who reach age 70½ after 2019. But what if you want to take an “early” withdrawal, defined as one taken before age 59½? You’ll be hit with a 10% penalty tax unless...

ROGER ROSSMEISL, CPA

Kho & Patel CPAs
160 E. Arrow Highway
San Dimas, CA 91773

(714) 325-0442
roger@khopatel.com

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