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SMALL BUSINESS ALERT: New Federal Reporting Required Especially important for new business startups     Beginning in 2024, many small businesses will have to report information about their owners to the Financial Crimes Enforcement Network (commonly referred to as FinCEN), a bureau of the U.S. Department of the Treasury that collects and analyzes information to […]

Safeguarding Your Business’s Cash with Segregation of Duties Fraud and embezzlement don’t just happen at large companies. In fact, theft may be more common in small businesses because many lack internal controls that are typically in place at larger organizations. But the good news is that effective internal controls don’t have to be complicated or expensive. […]

Ideas to Improve Your Personal Cash Flow One of the most common reasons businesses fail is due to lack of proper cash flow. The same is often true in many households. Here’s how this concept of cash flow applies to you along with some ideas to improve it. Cash flow defined Cash flow equals cash […]

Shrinkflation is Upon Us! Be aware, be prepared Inflation is upon us, and a hidden gem used by companies to combat price increases is often hidden from the unaware. It’s called shrinkflation. Here’s what you need to know about this hidden price hike and what you can do to cope with its effects. Defining Shrinkflation […]

What’s New in 2022? Here are some key changes to the tax code for 2022. Use this information to help manage your tax obligation, a practice that can pay rich benefits if reviewed throughout the year. Tax brackets and rates While there is much discussion in Congress and the Executive branch to raise individual tax […]

Passion alone will not fuel a small business; you must be smart about starting and running a company in order for it to thrive. Here are a few tips to help you keep your business profitable by avoiding common financial mistakes made by entrepreneurs, brought to you by The CBA Group. 1. Lacking Business Insurance […]

Estates and Trusts Unified Credit: TCJA increased the unified credit applicable to estate and gift taxes after 2017, effectively doubling the amount exempted from estate and gift taxes. For 2022, this increase in the credit is projected to effectively shield $12,060,000 from estate and gift taxes. Grantor Trusts: The proposed legislation would make the rules […]

Individual Provisions Ordinary Income Tax Rates: Currently, individual ordinary income is taxed at seven graduated rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For 2022, the 37% bracket is projected to begin at the following income levels, depending on filing status: Under the proposal, the 37% rate bracket is eliminated and replaced with a […]

The Proposal Overview On September 25, 2021, the House Budget Committee approved legislative text for the Build Back Better Act. The Build Back Better Act is a massive proposal containing the majority of President Biden’s domestic policy agenda. The Act includes a massive expansion of the social safety net, including the extension of many popular […]

Password Security: Technical Tips Our previous blog post covered some great general tips on password security. For those who are looking for more technical and mathematical details on password security, we provide great insight on dark web searching, password entropy, and a tip from a cybersecurity researcher in this blog. Checking the dark web While […]

Password Security: General Tips Security and Confidentiality are key concepts when dealing with commercial or personal data. Your first line of defense is an authentication method usually consisting of a username and password combination. Most users do not consider the personal or commercial impact of bad passwords until there has been unauthoarized access to their […]

Customer Centric Operating Plan Your customers are the lifeblood of your small business. Keeping them happy, engaged, and coming back — as well as encouraging them to send you referral business — is essential to creating long-term success in your company. Here are some key strategies to help you expand your all-important customer base. Set […]

Turning your Hobby into a Business You’ve loved dogs all your life so you decide to start a dog training business. Turning your hobby into a business can provide tax benefits if you do it right. But it can create a big tax headache if you do it wrong.One of the main benefits of turning […]

What’s New in 2021? With the end of the 2020 filing season upon us, now is the time to become aware of major changes for 2021. But be prepared, politicians are making noise in preparation for another fun-filled year of late breaking changes. What’s New in 2021? Here is what we know. For individuals Tuition […]

Adjust To Pandemic Rollbacks It’s hard to believe a little over a year ago the COVID 19 pandemic hit everyone. As things slowly turn back to normal, you need to be ready for the normalizing of the tax rules and adjusting to new ones. Here is how you can be prepared. Required minimum distributions If […]

Flow-Through Entities What are they? Why should I care? Small business owners have a number of options on how to organize their business for tax purposes. Many small, single owner, businesses are not incorporated, and are deemed “sole proprietors”, in the eyes of the IRS. Other business entities, like C-Corporations, are taxed as a separate […]

Every Business Needs A Plan Having a business plan is necessary for survival in today’s competitive business environment. A written business plan is as essential for a small business as it is for large corporations. A good plan will help you focus on current and potential problems and assist you, your advisors, and employees in […]

Happy Banker Happy Business With the onset of COVID-19, small business banks are more nervous about potential loan losses than ever. Here are several tips for your business to maintain a great working relationship with your lender. These same tips can also be used if you want to plant seeds with your banker for potential […]

New W-4: New Rules Mean Saving More for Retirement New W-4: The SECURE Act, passed by Congress in December 2019, can help you save more for retirement. The 2019 tax filing season is in full swing with a new W-4. If you have not already done so, now is the time to collect your tax forms, […]

Correcting Common Financial Mistakes You’re working at the office, getting stuff done around the house, or hanging out with family when — wham! — a phone call, email or text alerts you that something happened with your finances. When a not-so-nice financial event hits, don’t let it take you down. Here are some common miscues […]

New Interest Rates Might Deter Buyers We have talked to many sellers in the past and provided notifications about opportunities. I want to alert you to a concern I see coming over the Business Horizon in the not-so-distant future: New interest rates might deter buyers. As we have seen mortgage rates begin to climb it […]

Borrowing Money from Your 401k: Good idea? …not so much For years you have put away money from your pay into your employer provided 401(k) retirement savings account. Your employer may have even matched 50% of your contribution. Now you want to take some of this money out in the form of a loan to […]

Do you know your net worth? Knowing your net worth and understanding how it is changing over time is one of the most important financial concepts that everyone needs to understand. This number is used by banks, mortgage companies, insurance companies and you! Your net worth impacts your credit score, which in turn impacts your […]

Increase Your Business Profit Most successful business managers use financial statements and other special reports to generate higher profits. If you haven’t been using all the financial tools available to you, here are some ideas to get you started. There is no need to feel intimidated by financial statements. If your company’s record system is […]

Major Changes to 7(a) Lending With the $900 billion stimulus bill expected to become law, major changes will be coming to the SBA 7(a) lending program. Summary of Changes Coming to SBA 7(a) Program Changes for Acquisition Loans The stimulus bill will fundamentally change the 7(a) loan program to start 2021 with the SBA increasing […]

IRS Notices Creating Alarm Here is what to know Beginning In April a number of IRS notices began hitting mailboxes. Unfortunately, the notices are coming in cold, as the IRS is turning on mailing their notices after a long time of being turned off. Their process is creating a lot of undue alarm. Example: A small […]

Audit Proof Your Tax Return No one likes the stress involved when your tax return is under the audit spotlight. Here are some ideas to avoid some of the more common audit triggers. Report everything that has an informational tax return. If you are like most Americans, you will receive numerous 1099s and W-2s in […]

Homeowner Alert! Review Your Tax Forms New tax rules are creating confusion Because of many home-related tax changes over the years, it can easily confuse taxpayers on what, when and how much can be used to qualify for a home mortgage related deduction. So when your mortgage company reports tax-related information to you and the […]

The $500,000 Homeowner Tax Break Understand the rules now to avoid a tax surprise later There is large tax break that allows you to exclude up to $250,000 ($500,000 married) in capital gains on the sale of your personal residence. But making the assumption that this gain exclusion will always keep you safe from tax […]

Common Missing Items = DELAYS Review these common causes of filing delays Double-check this list of items that often cause delays with both filing your tax return and getting your much anticipated refund.   Missing W-2 or 1099. Using last year’s tax return, make a list of W-2s and 1099s. Then use the list to ensure […]

The Paycheck Tax Tip A great place to lower your taxes The tax code has plenty of ways to reduce your taxable income, and many take place on your paycheck. If you haven’t already done so, now is a great time to conduct a thorough review of your paystub. Here are some tips: Review insurance […]

Tax Planning Triggers When to know to conduct a tax review Here are some tips that should trigger you to conduct a full tax planning session to ensure your tax bill next year is not higher than it needs to be. 1. You owed tax last year. If you have not adjusted your withholdings, you could […]

Selling Property to Family Creates Tax Complications Selling property to a family member or loved one is deemed a related party transaction by the IRS. If contemplating a transaction like this, you need to review the tax consequences of your decision BEFORE you act. As you might imagine, related party transactions covers relatives like your […]

Surprise! The Mutual Fund Tax Trap Too often taxpayers receive tax surprises at year-end due to actions taken by mutual funds they own.  What can add insult to injury is the unsuspecting taxpayer who recently purchases the shares in a mutual fund only to be taxed on their recent investment.  How does this happen and […]

Time to Reconsider Municipal Bonds Municipal Bonds Everybody likes getting something for free, and taxes are no different. If you invest in securities such as municipal bonds (munis) or municipal bond funds, you can generate tax-free interest income. Here is what you need to know. Advantages of municipal bonds You pay zero federal tax on […]

Audit Proof Your Deductions Your best audit defense Putting off distributions and holding assets in your retirement accounts as long as possible may seem like a good idea, but waiting too long can cause a major tax problem. When you reach age 73, the trigger requiring minimum distributions (RMDs) from qualified retirement accounts is initiated, […]

Tax Efficient Retirement Requires Planning Large retirement account balances can cause tax problems Putting off distributions and holding assets in your retirement accounts as long as possible may seem like a good idea, but waiting too long can cause a major tax problem. When you reach age 73, the trigger requiring minimum distributions (RMDs) from […]

How to Maximize Your Social Security What every taxpayer should know You can begin receiving your Social Security retirement benefit as early as age 62. But by putting off your benefit start date you can receive a check that is approximately 8 percent higher for each year you delay receiving your benefit. 2024 Social Security […]

How to Maximize Your Social Security What every taxpayer should know You can begin receiving your Social Security retirement benefit as early as age 62. But by putting off your benefit start date you can receive a check that is approximately 8 percent higher for each year you delay receiving your benefit. 2024 Social Security […]

Hike in Social Security Benefits Announced for 2024 How much you pay and checks received are all going up! The Social Security Administration announced a 3.2% boost to monthly Social Security and Supplemental Security Income (SSI) benefits for 2024, a big drop from last year’s increase of 8.7%. The increase is based on the rise […]

Your Weekly Tax Tips Deduct Business Meals the Right Way Suppose you take your best client out to dinner to celebrate your business relationship. If you own a business, are self-employed, or run a side business, can you deduct any of the cost?   Here are some tips to stay on the right side of […]

A Tip to Avoid Late Payment Penalties What to do if you miss a quarterly estimated tax payment? Many clients like to keep their Federal Tax withholdings as low as possible to avoid the IRS having their funds interest-free throughout the year. Other taxpayers, especially those with non-payroll income, must make quarterly payments to the […]

Amending a Tax Return Not always needed or wise There’s usually an element of relief after your annual tax return has been filed. But what do you do if you find an error on your tax return? Should you always file an amended return? Here are some things to consider. Errors in the IRS’s Favor […]

Taxpayers May Forfeit More Than $1.4 Billion in Refunds Due Date is July 17! “Time is running out for more than a million people to get their tax refunds for 2019,” said IRS Commissioner Danny Werfel. “Many people may have overlooked filing a 2019 tax return due to the pandemic. We don’t want people to […]

Something Old is New Again Tax Beneficial Savings Alternatives With the recent interest rate increases made by the Federal Reserve, it is time once again to actively manage your savings to ensure you are getting the most for your money. Here are some tips to consider. Maximize the kiddie tax opportunity. Remember, the first $1,150 of […]

It’s Tax Time! 1st Quarter Estimated Taxes are Due. Now is the time to file your taxes and make your estimated tax payment. Both your individual tax return AND first quarter estimated tax payment are due by Tuesday, April 18th. Here is what you need to know. First quarter due date: Tuesday, April 18, 2023 […]

Understanding the Gift Giving Tax Excess gift giving could cause a tax surprise In an effort to keep taxpayers from transferring wealth from one generation to the next tax-free, there are specific limits to the amount of gifts one may give to any one person each year. Amounts in excess of this limit are subject […]

How to Handle All Those Forms Your mailbox has started filling up with tax forms over the last several weeks and there are likely more to come. Getting your forms organized makes your tax filing easier for everyone involved. Here are some tips on how to handle all the forms you get and to head […]

Identity Thieves Love Tax Season The vast amount of information shared online during tax season makes it a haven for identity thieves, and they’re doing everything they can to take advantage of the opportunity! Here are several ways that identity thieves are targeting you, common signs of ID theft and steps to take if you […]

Don’t Run Afoul of the IRS’s Nanny Tax The IRS is more strictly enforcing rules that determine whether a worker is actually your employee, rather than an independent contractor. So be careful if you regularly pay a gardener, housekeeper, nanny, babysitter or any other household service provider. You don’t want to run afoul of the […]

New Electric Vehicle & Energy Credits Tax incentives for purchasing clean (electric) vehicles and installing high efficiency home improvements are some of the featured provisions in the recently-passed Inflation Reduction Act (IRA). Here’s a closer look at some of the bill’s tax provisions regarding the new incentives. Clean Vehicle Credit (formerly Plug-In Electric Vehicle Credit) […]

Tips to Improve Your Credit Score Credit scores are used to determine interest rates on mortgages, car loans and even the amount you pay for insurance premiums. Because of this, it is a good idea to review ways to improve yours. Here are some ideas: Look for errors on your credit report. The place to […]

Start Your Tax Planning NOW! Keeping your taxes as low as possible requires paying attention to your financial situation throughout the year. Here are some tips for getting a head start on tax planning for your 2022 return: Check your paycheck withholdings. Now is a good time to check your tax withholdings to make sure […]

Tax Consequences of Virtual Transactions As social distancing turns convenience into necessity, the number and types of activities moving to the internet is exploding. It’s important to remember that these virtual events often trigger real-world tax implications. Here are some things to keep in mind: Internet marketplaces – Proceeds of sales of goods and services […]

If You’re Expecting a Refund, Read This! If you’re getting a refund, here are four useful tips to know. The average refund is more than $3,500. Through February 18, the IRS reports the average refund is $3,536, which is up 22% versus the same time last year. Since a refund is really your money to […]

Common April Tax Questions Answered! The individual tax deadline of April 18th (yes, this year it’s April 18th!) is fast approaching. Here are answers to five common questions that taxpayers typically ask in April. 1 What happens if I don’t file on time? There’s no penalty for filing a tax return after the deadline if […]

Make Your Child a Tax-Free Millionaire! Want to jump start your child’s retirement with a million dollar tax-free account? Consider this: The Million Dollar Idea As soon as your child begins to earn income, open a Roth IRA and set a contribution goal to reach before they graduate from high school. Assuming an 8% expected […]

Why is the IRS Sending Me This?!? IRS turns off some notices. Why is the IRS Sending Me This?! In a recent announcement, the IRS is telling taxpayers it’s turning off some of its automated notices. Here is what you need to know. Background With the pandemic, incredibly late tax law changes from Congress, the […]

What? This form 1099 is wrong! What to do to fix this thorny problem? It is late February and you realize the Form 1099 you received is in error. In fact, it overstates your income by several thousand dollars. What should you do? Gather your facts: Put yourself in the shoes of the vendor, bank […]

Make Order Out of Chaos Prepare for this year’s tax return filing season Tax return filing season usually gets a little crazy, but this year will be more turbulent than most. Due to new tax legislation and guidance from the IRS, you will have to cope with a wide variety of tax changes, some of […]

Estimated Taxes Now Due Estimated Taxes Due: If you have not already done so, now is the time to review your tax situation and make an estimated quarterly tax payment using Form 1040-ES. The third quarter due date is now here. Due date: Wednesday, September 15th, 2021 Remember, you are required to withhold at least […]

The Marriage Penalty There are a lot of positive things about getting married, but the IRS’ marriage penalty isn’t one of them. The marriage penalty occurs when you pay more tax as a married couple than you would as two single filers making the same amount of money. It pops up again and again in […]

Tax Impact As your children grow older, you can easily be surprised by a larger tax bill. To help ease the possible burden, consider these tax implications as your dependent children age. A higher tax bill in your future At age 6: Loss of excess Child Tax Credit. In 2021, the Child Tax Credit is […]

Understanding Installment Sales If you use an installment sale to help sell property, you can benefit from tax deferral and possibly lower your overall tax bill. But you need to watch out for certain tax traps if you do. Installment sale defined Generally, you create an installment sale when you receive payments for sold property […]

Advanced Child Tax Credit Advanced Child Tax Credits: The American Rescue plan signed in March, 2021 requires the IRS to pay out ½ of enhanced Child Tax Credits (CTC) to eligible taxpayers beginning this month. A tall order, and one filled with land mines. If you have children or know of anyone who has children, […]

Who Pays What? There will be a lot of political rhetoric about increasing the national debt with trillions more in spending, adding billions to allow the IRS to audit high income taxpayers, and creating more changes in the tax code in the next few months. To help you break through the media clutter, here is […]

Navigating new child tax credits The whirlwind of tax changes just keeps going. Now if you have children 17 or under there is a new, higher child tax credit in place for 2021. Here is what you need to know: Age matters The old credit was for children under the age of 17. The new […]

First Quarter Estimated Taxes Despite the individual tax filing due date being delayed until May 17, 2021, there is no delay in paying first quarter estimated tax payments for the 2021 tax year. So it is time to review your tax situation for the 2021 tax year and make an estimated quarterly tax payment using […]

Yikes! You have a large refund For some reason, some believe it is better to receive than give when it comes to filing taxes. While that may help your savings account, it is not always a great idea. Here’s why. You are giving the IRS an interest-free loan Granted, interest rates are pretty low, but […]

Income IRS Can’t Touch Wouldn’t it be nice to have a source of nontaxable income? You may be more fortunate than you realize. Here are several types of income that the IRS does not tax. Tax-free interest The federal government does not tax municipal bond interest. This includes bonds issued by a state or municipality. […]

Tax Return Review Hints Prior to e-filing your tax return, you will need to review it. Here are some suggestions to ensure everything looks right. The Basics • Confirm the basics for you, your spouse and your dependents: Double check the name, address, Social Security Numbers and proper identification of dependents that are under age […]

Don’t Overlook Valuable Tax Credits Tax credits are one of the most powerful ways to lower your income taxes. A tax credit reduces your tax bill dollar for dollar. A tax deduction, on the other hand, only reduces your taxable income, so your benefit is determined by your tax bracket. For Example: A tax deduction […]

I Wish I Knew That! Here are six tax topics that seem innocent but can cause problems if not handled correctly. Gambling winnings If you receive a tax form at a casino for your winnings, that information is sent to the tax authorities. Since the form typically only contains the amount you won, save copies […]

IRS Identity Theft Season Each year thieves try to steal billions in federal withholdings by stealing your identity. As the IRS focuses more attention on this quickly growing problem, now is the time of year to be extra vigilant. Early tax filing season is the worst time Your federal tax account at the IRS has […]

Common IRS Surprises: No one likes surprises from the IRS, but they do occasionally happen. Here are some examples of unpleasant tax situations you could find yourself in and what to do about them. An expected refund turns into a tax payment. Nothing may be more deflating than expecting to get a nice tax refund […]

Turn Your Home Office Into a Tax Deduction Wondering if you can turn your home office into a tax deduction? The bad news? If you’re working from home for an employer, you normally can’t deduct your home office expenses. Here’s a quick look at the basic requirements to be able to deduct your home office […]