Taxes can be confusing and intimidating, especially for small business owners who are just starting out. But, understanding the deductions and credits available to small businesses can help you save money and maximize your profits. Edgewater CPA Group is here with a list of five tax deductions that every small business should take advantage of when filing taxes.
As a business owner, it’s important to make the most of your time and resources. One of the best ways to do this is to outsource certain tasks that can be handled by outside professionals like those at Edgewater CPA Group. This includes bookkeeping and tax preparation. Doing so can save you money, time, and stress in the long run—let’s take a closer look at why.
Managing payroll is an essential part of running a business. However, before you decide which type of payroll system is right for your company, it’s important to understand the pros and cons of each. Below, Edgewater CPA Group walks you through the four most common types of payroll systems, giving you a better idea of which solution is right for you.
Tax resolution can be a complex process. Taxpayers facing unmanageable tax debt have two primary options: bankruptcy or Offer-in-Compromise. Each option has its own set of pros and cons that must be considered carefully when making a decision. Bankruptcy is a legal process that helps taxpayers get rid of their debt including tax debt in under certain conditions. Taxpayers who file for bankruptcy receive an automatic stay and can discharge their tax debt quickly. However, filing for bankruptcy will remain on a person’s credit report for several years and may affect their ability to get future loans or lines of credit. An Offer-in-Compromise (OIC) is an agreement between the taxpayer and the IRS to settle a tax debt for less than the full amount owed. Taxpayers can submit an OIC if they can prove that they cannot pay the full amount of tax due. An OIC allows taxpayers to reduce their tax … Continued
An OIC is an agreement between a taxpayer and the IRS that allows for the settlement of outstanding tax liabilities for less than what is owed. This type of agreement can be a great option for taxpayers who are unable to pay their full tax debt, as it allows them to make one lump sum payment (or series of payments) in exchange for settling their debt. When submitting an OIC, taxpayers must provide proof of their financial situation and demonstrate that they cannot afford to pay the entire balance of tax owed. Taxpayers must prove to the IRS that the Reasonable Collection Potential (RCP) – the total amount of tax the IRS can reasonably expect to collect over the remaining time on the tax collection statute – is less than the tax owed. Taxpayers will need to provide documents to prove that their RCP is less than the tax owed and … Continued
With tax season upon us, you might be one of the few unlucky business owners stuck with a tax bill. Tax resolution can be a complicated process, and business owners who owe the IRS often have a lot of questions before they begin. How does the process work? What exactly do I need to do? Is there any way to simplify it? Edgewater CPA Group is here to provide you with an overview of the tax resolution process so that you can make informed decisions about how best to proceed.
An Installment Agreement is nothing more than an agreement with the IRS to pay the tax owed over an extended timeframe. Installment Agreements are an excellent way to stay compliant with the IRS if a taxpayer cannot pay their taxes when they are due. The IRS is not really interested in seizing a taxpayer’s assets. The IRS would much rather work with the taxpayer to pay his or her taxes over time. The IRS has four types of Installment Agremeents: Guaranteed Installment Agreement, Streamlined Installment Agreement, Financially Verified Installment Agreement, and a Partial Pay Installment Agreement. Which payment plan is best for a taxpayer depends on the facts and circumstances of the taxpayer’s case. There are different rules governing different payment plans. Knowing the rules of each plan can help a taxpayer pick the best plan for them. Guaranteed Installment AgreementThe first type of payment plan is an “Guaranteed Installment Agreement”. This … Continued
As a business owner, you may be aware of how busy the CPA season can get. With limited time and resources, it can be difficult to handle all the tasks associated with tax preparation. That’s why Edgewater CPA Group is a great place to outsource your tax preparations and can be an effective way to reduce stress and ensure that your taxes are done correctly and on time. Here is a look at the benefits of outsourcing during the busy tax season.
In tax resolution cases, there are many strategies that come into play when formulating a plan to resolve a tax debt. From allowable expenses, to equity in assets, and many other items, effectively solving a tax problem for a taxpayer has many angles. One angle is using the “Collection Statute Expiration Date” or CSED to a taxpayer’s advantage. The CSED is important because the amount of time remaining on the collection statute helps determine which solution the practitioner should select. What is the Collection Statute Expiration Date or CSED? Once the IRS assesses tax on a taxpayer, the IRS has, by statute, 10 years from the date of assessment to collect the tax. In most cases, after 10 years the tax debt becomes unenforceable and the IRS writes-off the debt on the taxpayer’s account. This makes the CSED a very useful tool in planning a tax resolution case for a client. If … Continued
As a business owner, you know that the key to growth is the successful management of your finances. That’s why Edgewater CPA Group offers professional bookkeeping services. Having someone who understands the complexities of bookkeeping can be the difference between success and failure. So, let’s look at some ways our team can help improve business profits and keep your company competitive.