As the year draws to a close, it’s the perfect time to implement 2024 tax deduction strategies that can significantly reduce your tax burden. Whether you’re a business owner or self-employed, these six powerful tax-saving tips can help you maximize your deductions and keep more of your hard-earned money. 1. Prepay Expenses to Claim Tax...Continue reading
When we ask our clients about dependents, a common response is "that depends, can I deduct my dog." Dogs, cats, and other household pets are expensive. It costs an average of $1,270 to $2,800 a year to own a dog. Unfortunately, the expenses you incur for a family pet that provides you only with love...
You may be surprised by this headline, thinking, What? I must do 1099s for corporations? Are you kidding me? No, we’re not kidding. It’s only certain corporations, but still—this may be a shock. As you know, when your business makes payments of $600 or more from your business accounts to a person for services, you...Continue reading
For this tax season, 2024, we have seen an increase in inquiries about gambling tax laws. With interest in writing off gambling losses, claiming gambling winnings and general questions about tax rules when it comes to gambling. See our recent posts, Can I Write Off My Gambling Losses? and When Do I Report Gambling Winnings...Continue reading
As you consider the process of shutting down your S corporation, it is crucial to understand the federal income tax implications that come with it. Here, I outline the tax basics for the corporation and its shareholders under two common scenarios: stock sale and asset sale with liquidation. Shutting Down Your S Corporation Scenario 1:...Continue reading
We get many clients coming in asking about a how long the IRS can go back to audit your tax return, The good news is there is a statute of limitations on IRS audits and tax assessments. This time period is called the Assessment Statute Expiration Date (ASED). However, like all things IRS, it's more...Continue reading
For over 20 years, the IRS has issued an annual Dirty Dozen list identifying tax scams and avoidance schemes. This year’s list includes everything from employee retention credit claims to the use of fake charities. Before you invest your hard-earned money in these or other highly promoted tax schemes, you should check the IRS Dirty...Continue reading
If you started a business in 2024 pay attention to these new BOI Report requirements: If, in 2024, you start a small business or buy a rental property using a new limited liability company (LLC), you can trigger the need to file new federal reports and keep them up to date. Take BOI Report Requirements...
Now that so many types of gambling are legal in Ohio, when do you have to report your gambling winnings to the IRS? If you enjoy gambling, whether occasionally or frequently, it is crucial to understand how your winnings and losses can affect your tax liability. Basic Rules to Reporting Gambling Winnings Winnings: You report...Continue reading
It's not too late to consider 2023 tax strategies. Are you thinking of getting married or divorced? If so, consider December 31, 2023, in your tax planning. Here’s another planning question: Do you give money to family or friends (other than your children, who are subject to the kiddie tax)? If so, you need to consider...Continue reading
Form 8275 is filed to disclose all types of tax positions. When you're considering taking an aggressive position on your tax return that could result in a substantial tax reduction, but you're worried about having to pay a penalty, talk with Ken-Mar Tax for a free consultation. As an Enrolled Agent, Ken Weinberg is up-to-date...Continue reading
In Chief Counsel Advice (CCA) 202151005, the IRS opined on this issue. But before we get to what the IRS said, understand that the CCA’s conclusions cannot be cited as precedent or authority by others, such as you or your tax professional. Even so, we always consider what the CCA says as semi-useful information, so here’s some...Continue reading
If the IRS audits you and says you owe more tax, they will often impose an accuracy-related penalty on top of the tax. This penalty is not small - at 20 percent of the additional tax owed. For a $10,000 audit assessment, that’s an additional $2,000 you have to send to Uncle Sam. In this...
What Are Self-Employment Taxes? Do I Pay Them? Self-employment taxes are to individual business owners what payroll taxes are to employers and employees. They fund Social Security and Medicare. All individuals with self-employment income must pay self-employment taxes, regardless of their age. When business owners reach retirement age, they’ll be able to collect Social Security...Continue reading
Our specialty at Ken-Mar Tax is to provide our tax preparation clients with tax strategies that will legally reduce their tax obligations. As an IRS enrolled agent, Ken Weinberg keeps up-to-date about all the IRS tax codes in order to use them to your advantage. Tax Strategies for Getting Married, Divorced, Staying Single, Adding Your...Continue reading
As tax-reduction strategy specialists for the self-employed, at Ken-Mar Tax we specialize in working with local, Cleveland area, small business owners, contractors and solopreneurs. We know, at this time of year, your goal is to either eliminate, or at least reduce, the taxes you’ll owe – or better yet, get the IRS to owe you!...Continue reading
Millions of taxpayers are still waiting for refunds and/or struggling to understand IRS notices saying their refund amounts have been adjusted. And the IRS expects to receive another 4 million returns for tax year 2020 by the October 15th tax filing extension deadline. – Forbes October 10, 2021 Why are tax refunds so late? Why...
What is Form 1099-NEC? Starting with the 2020 tax year, the IRS requires businesses to use the new Form 1099-NEC to report nonemployee compensation – not Form 1099-MISC, which was previously used. Filing Taxes With a 1099-NEC If you are self-employed and receiving any type of 1099 forms, you should be using a tax preparation...
Do you have IRS back taxes from years passed? Were you already dreading the idea of doing your 2019 taxes because of your federal tax liability? Are you in an existing installment agreement with the IRS for unpaid taxes or have a pending Offers in Compromise (OIC)? The IRS announced a new series of relief...Continue reading
Enrolled Agents of IRS Cleveland Given Details of 5-Year Plan Recently the enrolled agents of Ken-Mar Tax have been notified of the large-scale effort of the Internal Revenue Service (IRS) to increase their workforce and update their technology in order to help enforce the implementation of new tax laws. A recent article in the Government...Continue reading