18 Sep 2023
0

Receive More than $10,000 in Cash at your Business? Here’s What You Must Do

Roger Rossmeisl, CPA
Small Business Tax Briefs
Receive More Than $10,000 in Cash at your Business? Here's What You Must Do

Does your business receive large amounts of cash or cash equivalents? If so, you’re generally required to report these transactions to the IRS — and not just on your tax return. The requirements Each person who, in the course of operating a trade or business, receives more than $10,000 in cash in one transaction (or two or more related transactions), must file Form 8300. Who is a “person”? It can be an individual, company, corporation, partnership, association, trust or estate. What are considered “related transactions”? Any transactions conducted in a 24-hour period. Transactions can also be considered related even if they occur over a period of more than 24 hours if the recipient knows, or has reason to know, that each transaction is one of a series...

14 Sep 2023
0

IRS Orders Immediate Stop to New Employee Retention Tax Credit Processing

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
IRS Orders Immediate Stop to New ERTC Processing

As appearing in IRS IR-2023-169 To protect taxpayers from scams, IRS orders immediate stop to new Employee Retention Tax Credit (ERTC) processing amid surge of questionable claims Concerns from tax pros, aggressive marketing to ineligible applicants highlights unacceptable risk to businesses and the tax system Moratorium on processing of new claims through year’s end will allow IRS to add more safeguards to prevent future abuse, protect businesses from predatory tactics; IRS working with Justice Department to pursue fraud fueled by aggressive marketing WASHINGTON – Amid rising concerns about a flood of improper Employee Retention Credit claims, the Internal Revenue Service today announced an immediate moratorium through at least the end of the year on processing new claims for the pandemic-era relief program to protect honest small business owners from...

04 Sep 2023
0

Cash Payments Over $10,000 Must Be Reported Online Beginning 1/1/2024

Roger Rossmeisl, CPA
Automotive, Small Business Tax Briefs
Cash Payments Over $10,000 Must be Reported Online Beginning 1/1/2024

As reported in IRS News Release IR-2023-157 The Internal Revenue Service announced that starting 1/1/2024, businesses are required to electronically file (e-file) Form 8300, Report of Cash Payments Over $10,000, instead of filing a paper return. This new requirement follows final regulations amending e-filing rules for information returns, including Forms 8300. Businesses that receive more than $10,000 in cash must report transactions to the U.S. government. Although many cash transactions are legitimate, information reported on Forms 8300 can help combat those who evade taxes, profit from the drug trade, engage in terrorist financing or conduct other criminal activities. The government can often trace money from these illegal activities through payments reported on Forms 8300 that are timely filed, complete and accurate. The new requirement for e-filing Forms 8300...

01 Aug 2023
0

What it Will Take to Build a Better Automotive Battery Supply Chain

Roger Rossmeisl, CPA
Automotive, Technology
What it Will Take to Build a Better Automotive Battery Supply Chain

As posted to the Climate One YouTube page on 7/17/23 Run Time 58 minutes, 47 seconds (when beginning at Time Stamp 21:33) Climate One clip description: Demand for lithium ion batteries is expected to grow 500% by 2030, and the race for raw materials is on. Lithium mines around the world are opening or expanding, while children as young as six in the Congo carry sacks of cobalt-laced rocks on their backs for less than $2 a day. Recycling presents promising opportunities, yet before millions of batteries can be recycled, they have to be made in the first place. At the same time, advances in battery chemistry continue to be made, and it’s not hard to imagine a near future when batteries don’t require lithium or cobalt at...

19 Jun 2023
0

Electric Car Tires Explained

Roger Rossmeisl, CPA
Automotive
Electric Car Tires Explained

As posted to the Engineering Explained YouTube Channel on 12/23/2022 (Run Time 11 min, 45 sec) Electric cars place unique challenges on tires, as a result of four key characteristics: weight, efficiency, noise, and torque. Thanks to asking Hankook's engineers an abundance of questions, John Fenske has got all the answers on how electric car tires can help EVs overcome these challenges. (This is Blog Post #1396) Jason Fenske is a graduated mechanical engineer with a passion for cars, and his goal is to help other people passionate about cars learn how they work.  Check out his YouTube Channel here: www.youtube.com/@EngineeringExplained/about...

15 May 2023
0

Ranking the Top 12 Automakers

Roger Rossmeisl, CPA
Automotive
Ranking the Top 12 Automakers

As posted to the AutoLine Network YouTube Channel on 4/8/2023 (Run Time 10 min, 25 sec) John McElroy presents his 2023 ranking of the top 12 automakers based on revenue, profits and several other factors. No editorializing . . . just the numbers. (This is Blog Post #1396) John McElroy has been called an influential thought leader in the automotive industry. He created “Autoline Daily,” the first industry webcast of industry news and analysis. He also hosts the Emmy Award-winning television program “Autoline This Week” and co-hosts “Autoline After Hours”, all of which can be found at www.autoline.tv....

15 May 2023
0

If You’re Hiring Independent Contractors, Make Sure They’re Properly Handled

Roger Rossmeisl, CPA
Small Business Tax Briefs
If Youre Hiring Independent Contractors, Make Sure Theyre Properly Handled

Many businesses use independent contractors to help keep their costs down — especially in these times of staff shortages and inflationary pressures. If you’re among them, be careful that these workers are 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 and pay the employer’s share of FICA taxes on the wages, plus FUTA tax. A business may also provide the worker with fringe benefits if it makes them available to other employees. In addition, there may...

05 May 2023
0

4 Ways Corporate Business Owners Can Help Ensure Their Compensation is “Reasonable”

Roger Rossmeisl, CPA
Small Business Tax Briefs
4 Ways Corporate Business Owners Can Help Ensure Their Compensation is "Reasonable"

If you’re the owner of an incorporated business, you know there’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason: A corporation can deduct the salaries and bonuses that it pays executives, but not dividend payments. Therefore, if funds are paid as dividends, they’re taxed twice, once to the corporation and once to the recipient. Money paid out as compensation is only taxed once — to the employee who receives it. However, there are limits to how much money you can take out of the corporation this way. Under tax law, compensation can be deducted only to the extent that it’s reasonable. Any unreasonable portion isn’t deductible and, if paid to a shareholder, may be taxed...

24 Apr 2023
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Choosing an Entity for Your Business? How About an S Corporation?

Roger Rossmeisl, CPA
Small Business Tax Briefs
Choosing an Entity for Your Business? How About an S Corporation?

If you’re starting a business with some partners and wondering what type of entity to form, an S corporation may be the most suitable form of business for your new venture. Here are some of the reasons why. A big benefit of an S corporation over a partnership is that as S corporation shareholders, you won’t be personally liable for corporate debts. In order to receive this protection, it’s important that: The corporation be adequately financed, The existence of the corporation as a separate entity be maintained, and Various formalities required by your state be observed (for example, filing articles of incorporation, adopting by-laws, electing a board of directors and holding organizational meetings). Dealing with losses If you expect that the business will incur losses in its early years,...

26 Feb 2023
0

IRS Provides Roadmap on How to Value a Private Business

Roger Rossmeisl, CPA
Automotive, Valuation Briefs
IRS Provides Roadmap on How to Value a Private Business

Revenue Ruling 59-60 is a landmark piece of IRS guidance that outlines the factors to consider when estimating the fair market value of a private business. Here’s an overview of those factors, along with other hidden details found in the ruling’s fine print. 8-factor approach Revenue Ruling 59-60 says that business valuation is an inexact science, often resulting in “wide differences of opinion” about the value of a particular business interest. Therefore, valuation professionals use a customized approach that considers the following eight factors: 1. The nature and history of the subject company, 2. The outlook for the general economy and industry, 3. Book value and financial condition (from at least two years of balance sheets), 4. Earnings capacity (from at least five years of income statements), 5. Dividend-paying capacity (as opposed...

ROGER ROSSMEISL, CPA

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

(714) 325-0442
roger@khopatel.com

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