Roger Rossmeisl, CPA, Author at Roger Rossmeisl, CPA

27 Jun 2020

IRS Payment Options for Those Owing Taxes

In a News Release (IR 2020-48), the IRS has provided a list of payment options available to taxpayers who need to make a tax payment or who owe taxes they can’t pay. Taxpayers who owe taxes Taxpayers who owe taxes can choose among the following payment options: Electronic funds withdrawal (EFW) Taxpayers who electronically file their tax returns using tax preparation software or a tax professional can pay any taxes they owe from their bank account using EFW. EFW is free and available when electronically filing a tax return with an amount due. IRS Direct Pay IRS Direct Pay allows taxpayers to pay their federal taxes, separately from filing their return, directly from their bank account, without any fees or preregistration. Taxpayers can schedule payments up to 30 days in advance...

25 Jun 2020

2021 HSA Inflation Adjusted Amounts

Roger Rossmeisl, CPA

Small Business Tax Briefs

The IRS recently released the 2021 HSA inflation adjusted amounts. Health Savings Accounts (HSA) basics An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of an “account beneficiary.” An HSA can only be established for the benefit of an “eligible individual” who is covered under a “high deductible health plan.” In addition, a participant can’t be enrolled in Medicare or have other health coverage (exceptions include dental, vision, long-term care, accident and specific disease insurance). In general, a high deductible health plan (HDHP) is a plan that has an annual deductible that isn’t less than $1,000 for self-only coverage and $2,000 for family coverage. In addition, the sum of the annual deductible and other annual out-of-pocket expenses required to...

25 Jun 2020

Non-GAAP Measures Can Be Misleading

Roger Rossmeisl, CPA

Fraud Briefs

Not all companies follow U.S. generally accepted accounting principles (GAAP). Many smaller businesses, for example, have adopted the AICPA’s Financial Reporting Framework for Small and Medium-Sized Entities because it’s easier to follow. Other businesses may use non-GAAP measures because they don’t believe GAAP provides readers of financial reports with enough information to make informed decisions. Non-GAAP accounting is, in a nutshell, any measure a company uses that relies on a methodology not included in GAAP. But not all measures are necessarily created equal. Some non-GAAP measures can be misleading, and have the potential to mislead investors, lenders and the public. History lesson Historically, U.S. companies have used non-GAAP measures sparingly. Yet according to financial data provider Audit Analytics, in 2017, 97% of financial statements produced by S&P 500...

22 Jun 2020

COVID-19 Individual Tax Questions Answered

Roger Rossmeisl, CPA

Individual Tax Briefs

The Coronavirus (COVID-19) pandemic has affected many Americans’ finances. Here are some COVID-19 individual tax questions answered. My employer closed the office and I’m working from home. Can I deduct any of the related expenses? Unfortunately, no. If you’re an employee who telecommutes, there are strict rules that govern whether you can deduct home office expenses. For 2018–2025 employee home office expenses aren’t deductible. (Starting in 2026, an employee may deduct home office expenses, within limits, if the office is for the convenience of his or her employer and certain requirements are met.) Be aware that these are the rules for employees. Business owners who work from home may qualify for home office deductions. My son was laid off from his job and is receiving unemployment benefits. Are they...

22 Jun 2020

CARES Act Liberalizes NOLs

Roger Rossmeisl, CPA

Small Business Tax Briefs

The Coronavirus Aid, Relief, and Economic Security (CARES) Act eliminates some of the tax-revenue-generating provisions included in a previous tax law. Here’s a look at how the CARES Act liberalizes NOLs, providing businesses with relief from the novel coronavirus (COVID-19) crisis. NOL deductions Basically, you may be able to benefit by carrying a net operating loss (NOL) into a different year — a year in which you have taxable income — and taking a deduction for it against that year’s income. The CARES Act includes favorable changes to the rules for deducting NOLs. First, it permanently eases the taxable income limitation on deductions. Under an unfavorable provision included in the Tax Cuts and Jobs Act (TCJA), an NOL arising in a tax year beginning in 2018 and later...

18 Jun 2020

Give Employees a Voice to Report Fraud

Roger Rossmeisl, CPA

Fraud Briefs

Before the novel coronavirus (COVID-19) pandemic struck, employees who suspected occupational fraud in their organizations had multiple options for notifying their employers. For example, they could use interoffice mail to send information anonymously or meet with HR personnel in person. In today's work from home environment, do you give employees a voice to report fraud? Reporting options for employees working from home are more limited — particularly if they wish to remain anonymous. The current working environment only highlights the necessity for a fraud hotline or online portal that workers can access anywhere, anytime. If your business doesn’t already offer a confidential reporting mechanism, start thinking about how you can establish one. Limiting damage One of the best ways to give employees a voice to report fraud and...

18 Jun 2020

Are Your Independent Contractors Properly Classified?

Roger Rossmeisl, CPA

Small Business Tax Briefs

Are your independent contractors properly classified

As a result of the coronavirus (COVID-19) crisis, your business may be using independent contractors to keep costs low. That said, are your independent contractors properly classified for federal tax purposes? If the IRS reclassifies them as employees, it can be an expensive mistake. The question of whether a worker is an independent contractor or an employee for federal income and employment tax purposes is a complex one. If a worker is an employee, your company must withhold federal income and payroll taxes, pay the employer’s share of FICA taxes on the wages, plus FUTA tax. Often, a business must also provide the worker with the fringe benefits that it makes available to other employees. And there may be state tax obligations as well. These obligations don’t...

18 Jun 2020

Protecting Remote Workers From Cyberattacks

Roger Rossmeisl, CPA

Fraud Briefs

Protecting Remote Workers from Cyberattacks

Many businesses were unprepared when the novel coronavirus (COVID-19) pandemic required them to close their physical offices and shift to remote operations. Your company, for example, may have had to scramble to set up a virtual private network (VPN) or move files to the cloud. And while adapting to working from home, employees may have let your usual security procedures slide. From a cybercrime perspective, working from home generally isn’t as safe as working in the office. So you need to look for ways for protecting remote workers from cyberattacks, and prevent criminals from gaining access to your digital assets. Here are five ideas: Invest in education. Require remote employees to participate in security-related training that covers “old-school” phishing scams as well as new COVID-19 variations. As...

16 Jun 2020

Residency Audits on Departing Californians

Roger Rossmeisl, CPA

Individual Tax Briefs

Residency Audits on Departing Californians

In the attached audio clip (click on photo above to listen), Spidell Publishing's "California Minute" discusses a subject that is gaining traction with the California Franchise Tax Board. With California’s increasing taxes and regulations, many people are leaving the Golden state for greener pastures. When a new nonresident taxpayer, especially one with high income, comes into the FTB’s sights, even before the taxpayer knows an audit is happening, the auditor will have pulled documents from other government databases and built the residency case. (This is Blog Post #829) Spidell Publishing, Inc. has been a critical source of California tax information for tax professionals since 1975, promoting ideas, references, solutions, and guidance, plus news and commentary covering all aspects of tax and its administration....

IRS Payment Options for Those Owing Taxes

2021 HSA Inflation Adjusted Amounts

Non-GAAP Measures Can Be Misleading

COVID-19 Individual Tax Questions Answered

CARES Act Liberalizes NOLs

Give Employees a Voice to Report Fraud

Are Your Independent Contractors Properly Classified?

Protecting Remote Workers From Cyberattacks

Residency Audits on Departing Californians

ROGER ROSSMEISL, CPA

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