Did you know you can pay your child to work in your business and get paid for paying your child? The basic mechanics of this are (a) you deduct the wages and (b) your child pays zero or very little in income taxes. The three points below elaborate on this: The child (a single taxpayer) [...]
Are you considering accepting bitcoins as payment? If so, you should know the tax implications of accepting bitcoins in your business and the major pros and cons of doing so. We’re going to use an example to explain this. Example. Carol is a freelance consultant. In exchange for her $1,500 invoice to a client, she [...]
When it comes to your tax records, there’s one record that you really should keep, and it’s easily overlooked. It’s the mileage log. In an IRS audit, the mileage log often creates the first impression of your tax records. Whether you use the IRS mileage rate method or the actual expense method, you need a [...]
Earlier this week President Trump outlined his new tax proposal. Many details are still forthcoming, and there are still a lot of questions, but below is a quick summary of some of the more important pieces of the plan. The proposal seeks to reduce the number of individual tax brackets from seven to three. The [...]
Here at Sutton and Simmons, we aim to make the tax return process as simple and convenient for our clients as possible. To assist with this, we have created a way for you to send us your tax documents securely online through our website. We have included upload links on the home, resources, and contact [...]
As the end of the year approaches, it’s a good time to think of planning strategies that will help lower your taxes for 2016. Our goal for you is to leverage your tax deductions and credits to the fullest extent. Below are five different strategies that can be powerful tools in lowering your tax bill. [...]
A federal judge in Texas has issued a nationwide injunction blocking the Department of Labor's new overtime rule that was set to take effect December 1st. The new rules require salaried employees be paid a minimum of $47,476 per year ($913 per week) to be exempt from overtime pay. With this injunction, the minimum will [...]
In an effort to reduce the increase of identity theft plaguing the IRS, the IRS and State of Idaho have moved the deadline for filing both W-2 forms and 1099 forms up to January 31, 2017. The old deadline required the forms to be filed with the IRS and State by the end of February. [...]
UPDATE - FEDERAL INJUCTION FILED TO PREVENT ENFORCEMENT OF NEW OVERTIME RULES Beginning December 1st of this year, the new Department of Labor overtime rules will take effect. These new rules will more than double the minimum weekly salary threshold under which salaried employees can be exempted from overtime pay. Currently, the salary threshold is set [...]
IRS scammers have now turned to email in an attempt to defraud you. The fraudsters are sending false tax bills (specifically CP2000 letters), claiming the taxpayer owes taxes under the Affordable Care Act (Obamacare). If you receive one of these emails, don’t open the attachment. The IRS does not initiate contact with taxpayers through email. [...]