Nationwide Services Archives - Edgewater CPA Group

An IRS Offer-in-Compromise – What Is It?

March 1, 2023 | CPA

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

The 10-Year Collection Statute – Why is it so Important?

February 8, 2023 | Carmel

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

What Does It Mean To Be “Currently-Not-Collectable”

February 1, 2023 | Business Tax Strategy

As with any tax resolution case, strategy plays an important part in resolving the tax debt. There are many factors that go into devising a plan to get a taxpayer compliant. Once such tool that can be very effective is for a taxpayer to be deemed “uncollectable” or “CNC (Currently Not Collectable – in IRS jargon)”. What does it mean to be deemed “uncollectable” by the IRS. Taxpayers can be placed in CNC status if their equity in assets plus their income is not sufficient to cover IRS allowable expenses. When a taxpayer is deemed uncollectable, the taxpayer’s tax accounts will be marked so that the IRS does not take any levy action against them. Being deemed “uncollectable” does not resolve the tax issue but it does benefit the taxpayer in a couple of ways: The 10-year collection statute on assessed taxes continues to runThe IRS will not take collection action against the … Continued

Cryptocurrency Investments and Addressing Tax Risks

July 28, 2021 | Carmel

Investors and technology gurus remain excited about the world of cryptocurrency and other emergent technologies. While cryptocurrency provides an innovative, novel technological investment strategy, investors should remember that the IRS requires reporting and taxes. At Edgewater CPA Group, we encourage clients to have proper safeguards to earn a proper return and report the results. To that end, this post covers some of the misconceptions about cryptocurrency investments and how to mitigate their risk.

5 Ways to Effectively Manage Remote Workers

November 10, 2020 | Carmel

The COVID-19 pandemic has changed the way America works. Companies that never would have dreamed of making remote work part of their model are changing their tune. In June of 2020, over 40% of workers were working remotely, and many have continued since then. Working remotely has its pros and cons, especially for companies new to the practice. At Edgewater CPA, we get it – and we’re happy to provide tools, like payroll management, that will make your life easier as a manager. What’s more, here are a few tips on managing your newly remote workforce.

Tax Tips for Reporting E-Currencies

October 15, 2020 | Cryptocurrency

Virtual currencies, also called cryptocurrencies or e-currencies, might be relatively new to the world of finance, but they are becoming more common. Bitcoin, for example, is being accepted by retailers as payment and used to pay employees. Some people are holding virtual currencies as capital assets. Regardless of how you use e-currencies, they may be subject to taxation by the IRS. If you are exploring cryptocurrencies, now would be a good time to talk to the team at Edgewater CPA Group about how you can plan for your 2020 taxes.

3 Sales Tax Mistakes Small Businesses Should Avoid

3 Sales Tax Mistakes for Small Businesses to Avoid

September 11, 2020 | Fort Wayne

For small businesses, paying sales tax on goods they sell is a simple concept. But with constantly evolving federal and state legislation, keeping track of all the changes can be challenging. That’s why our clients appreciate the services they get in tax preparation from Edgewater CPA Group. We know it’s a difficult task for small businesses owners to manage. Here are a few roadblocks you should be aware of in making sure your small business is compliant with paying sales tax.

Find the Best Bookkeeping Tool For Your Business

The Best Tools for Keeping Track of Your Books

July 24, 2020 | Bookkeeping Services

When you’re a small business owner, you have a lot going on – all the time! That’s why you need a simple bookkeeping solution you can actually understand. At Edgewater CPA Group, we’re aware that there are lots of options out there. But your business is as unique as you are, and each tool offers different features. Here’s a brief look at what we suggest.

How Small Businesses Can Weather the COVID-19 Storm

June 10, 2020 | Bookkeeping Services

The COVID-19 pandemic continues to make headlines all over the world – and on Main Street in your hometown. According to an April study by the National Small Business Association, nine out of ten small business owners are worried about the future. Nearly three quarters of small businesses have seen customer demand drop since March. Although federal aid is available, the process can be difficult to navigate and it can take a long time for relief to arrive. So what’s a small business owner to do in the meantime? Edgewater CPA Group is here to help. It’s impossible to know what our world will look like a year from now, but here are a few places to start in considering how your small business can weather this global pandemic.

What Biden's Stimulus Plan Means for Small Business

3 Essential Criteria of a Payroll Service

May 20, 2020 | Fort Wayne

Payroll is an essential part of running a business. Employees need to be paid for their work, and the appropriate information needs to be reported for tax purposes. A one- or two-person shop might be able to manage payroll on their own, but many small businesses find that a payroll service from Edgewater CPA Group makes them more efficient. Entrusting your team’s payroll to an outside service is a big step. Here are some important factors to keep in mind.