by Leif Jensen | May 4, 2020 | Economy |
During the OPEC crisis of the 1970’s, there were gas and meat shortages. Then in December of 1973 Johnny Carson joked about toilet paper shortage. Thus, creating a run on toilet paper in the US, in late 1973 and early 1974. So, our current shortage has some...
by Leif Jensen | Apr 29, 2020 | Running a Business |
It is always a struggle to get small business owners to put themselves on their own payroll. They miserly withdraw funds to live and keep as much money in the business as possible and cover their employee’s payroll faithfully. But now we live in a situation where...
by Leif Jensen | Apr 28, 2020 | Running a Business |
I recently read an article stating that this bailout is for the wealthy, while the poor get a mere $1,200 each. I have a problem with that statement to an extent. While it is true that “wage slaves” will only get $1,200, while the wealthy will not be getting the...
by Leif Jensen | Apr 27, 2020 | Banking |
I have a client who was looking for guidance on how to tackle the SBA assistance programs PPP and EIDL for his situation. He is an independent contractor as his main source of income, and he has been sidelined with the coronavirus. With no income coming in he is a...
by Leif Jensen | Apr 22, 2020 | Running a Business |
I have been suggesting to clients for years that they should find their passion and start a side hustle. Even if it only nets $100 a month that can grow nicely for a cash reserve, college fund or just for retirement. Now that there are massive layoffs and the...
by Leif Jensen | Apr 21, 2020 | Rant |
Massive unemployment, an uncertain future along with a great deal of concern for one’s wellbeing. I believe that this is a glimpse into our future. That is once Artificial Intelligence (AI) and robotics start in earnest in filling those duties that the middle class...
by Leif Jensen | Apr 20, 2020 | Rant, Taxes |
At times I really believe that Illinois Department of Revenue does nothing but think of dirty tricks and schemes to play on its citizens. The most recent case has occurred to two of our clients so far this year. In both cases the husband and wife both work for the...
by Leif Jensen | Apr 15, 2020 | Rant |
I agree that during these times we have to have social distancing. But at times I think maybe we are going a bit too far. Here is an example of my wife’s social distancing from me. Is this too...
by Leif Jensen | Apr 14, 2020 | Taxes |
High-income individuals who haven’t or refuse to file returns are also finally getting IRS’s scrutiny. Talk about low hanging fruit. Revenue officers will conduct in-person visits with individuals who received income in excess of $100,000 but didn’t file returns in...
by Leif Jensen | Apr 13, 2020 | Taxes |
Pass-through entities can expect to see more IRS audits in 2020 and more over the next few years. That’s in part because audit rates for pass-throughs have been dismally low in the recent past. The 2017 overall exam rates for partnerships and S corporations were 0.4%...
by Leif Jensen | Apr 8, 2020 | Tax Court, Taxes |
A retired Mary Kay consultant owes self-employment tax on deferred pay that she got after she retired. During her tenure with the company, she was treated as an independent contractor and was compensated with commissions. The payments that she received under the...
by Leif Jensen | Apr 7, 2020 | Tax Court, Taxes |
S corporations that file late returns face a stiff fine $205 for each month late, up to a maximum of 12 months, multiplied by the number of shareholders in the firm. Prior to 2014, the penalty was a mere $195. In this case, in which a nine-owner S corporation lacked...
by Leif Jensen | Apr 6, 2020 | Money Management, Rant, Running a Business, Taxes |
The IRS’s private tax-debt-collection program is raking in the dollars. From its April 2017 start through Sept. 30, 2019, four private firms have collected about $300 million in revenue from seriously delinquent taxpayers. Compare this with the program’s $132 million...
by Leif Jensen | Apr 1, 2020 | Tax Court, Taxes |
The IRS remains committed to combatting payroll tax fraud and has it as a high priority The Justice Department is pursuing an increasing number of civil injunctions against businesses, and their officers whom have repeatedly failed to deposit taxes withheld from...
by Leif Jensen | Mar 31, 2020 | Running a Business, Taxes |
Remember, if you are an employer that outsources payroll you retain all tax roll tax liability responsibilities and remain liable for unpaid taxes. So, take these steps to protect yourself if your business uses a payroll agent, enroll in the Electronic Federal Tax...
by Leif Jensen | Mar 30, 2020 | Employees |
An employer tax break has been extended. The work opportunity tax credit or hiring economically challenged employees will be available throughout 2020. This credit is for employers who hire qualified veterans, ex-felons, certain youth, the long-term unemployed and...
by Leif Jensen | Mar 25, 2020 | Corporate Entities |
Want your calendar-year firm taxed as an S corporation for all of 2020? Then you need to file to elect S status by filing Form 2553 with IRS by March 16. The IRS has a simplified method for businesses to handle late S elections. Generally, firms have three years and...
by Leif Jensen | Mar 24, 2020 | Employees |
This election season, many people will get part-time jobs working at the polls. This compensation is taxable, as is all earned income. But income tax withholding is not required unless the worker requests it by giving a completed W-4 to the state or municipality. FICA...
by Leif Jensen | Mar 23, 2020 | Taxes |
Now that the deduction for private mortgage insurance premiums has officially been revived. You can go back and claim it on my 2018 return? You will need to file an amended return on Form 1040-X and attach a 2018 updated Schedule A, which IRS is revising. The new...
by Leif Jensen | Mar 18, 2020 | Running a Business |
New research proves that conducting a meeting while walking has clear health benefits for the participants, but it turns out it benefits the meeting, too. The research from the University of Hong Kong shows that walking side by side helps people connect to each other....
