by Leif Jensen | Dec 18, 2024 | Taxes |
The potential penalties for mistakes or fraud related to Employee Retention Credit (ERC) claims can be severe. For unintentional errors or negligence, the IRS may impose a 20% penalty on the understated tax amount. If the IRS believes the taxpayer deliberately tried...
by Leif Jensen | Dec 16, 2024 | Taxes |
The IRS is slowly addressing its backlog of employee retention credit (ERC) claims. In September 2023, the agency halted processing of ERC refund claims filed on Form 941-X. It has since sent out 28,000 letters denying refunds to employers whose claims, according to...
by Leif Jensen | Dec 11, 2024 | Tax Court |
The defrauded shareholder, who owned 40% of the S corporation he co-founded, was required to report his share of the company’s income on his personal tax return, even though the other owners had stolen funds and made unauthorized, disproportionate distributions...
by Leif Jensen | Dec 9, 2024 | Taxes |
The IRS is closely scrutinizing taxpayers who report large, recurring losses from hobby-like activities on their Schedule C forms to offset wages, business earnings, or other income. Reporting these “hobby losses” is considered a red flag that can trigger...
by Leif Jensen | Dec 4, 2024 | Retirement |
I am getting more and more questions on the taxation of Social Security. One taxpayer who waited till 70 to collect has been hit with a huge tax bill because of the taxable amount of Social Security. The federal taxation of Social Security benefits can be complex....
by Leif Jensen | Dec 2, 2024 | Investing |
While manufacturing and warehouse space in the O’Hare corridor remain tight, other forms of commercial real estate differ. As the commercial real estate (CRE) market struggles with deepening woes, offices in particular are facing record-high vacancies. This is...
by Leif Jensen | Nov 20, 2024 | Retirement |
Retirement seems to be a topic on many people’s minds lately. I have a doctor who is retiring next year, and several clients have asked me about the tax implications of their own upcoming retirements. I’ve even been asked about my own retirement plans,...
by Leif Jensen | Nov 18, 2024 | Corporate Entities |
S corporations have become an increasingly popular business structure for many small businesses due to their tax advantages and liability protection. These entities are a common tool among tax planners, but entity selection is not a one-size-fits-all approach. There...
by Leif Jensen | Nov 13, 2024 | Taxes |
The upcoming November election will have high stakes when it comes to taxes. Many of the tax provisions in the 2017 reform law are set to expire in 2025, reverting to the pre-2017 rules unless Congress acts. This means the next president will have to confront this...
by Leif Jensen | Nov 11, 2024 | Money Management |
A solid financial education can greatly benefit those who learn its lessons. Learning to avoid high-interest credit card debt and leverage good credit scores can unlock significant financial value, such as securing better rates on insurance, auto loans, and mortgages....
by Leif Jensen | Nov 6, 2024 | Running a Business |
We have had some companies come to us to discuss what to do with their HR function. SO we went to look for some guidance for them, here is what we found. Outsourcing HR and payroll functions can offer both advantages and disadvantages for businesses. Careful analysis...
by Leif Jensen | Nov 4, 2024 | Rant |
The 2018 Supreme Court decision that struck down a 1992 federal law prohibiting most states from allowing sports betting has transformed the US sports landscape. By 2024, the gambling industry had become deeply embedded in US sports culture, with leagues, teams,...
by Leif Jensen | Oct 30, 2024 | Rant |
The Michigan Supreme Court’s decision in Dodge v. Ford Motor Co., 204 Mich 459; 170 NW 668 (1919), established the principle of “shareholder primacy” in corporate America. The court ruled that Henry Ford had to operate the Ford Motor Company in the...
by Leif Jensen | Oct 28, 2024 | General |
S corporations have become an increasingly popular business structure for many small businesses due to their tax advantages and liability protection. And they are a common tool among tax planners. But entity planning isn’t a one-size-fits-all approach. There are...
by Leif Jensen | Oct 23, 2024 | Running a Business |
Pay Yourself a Reasonable Salary: As an S Corp shareholder, pay yourself a reasonable salary to minimize payroll taxes and take advantage of lower tax rates on distributions. The IRS requires that salaries be reasonable for the services provided to the company. ...
by Leif Jensen | Oct 21, 2024 | General |
Measurement metrics offer several crucial benefits to small businesses, serving as essential tools for tracking performance, guiding decision-making, and driving growth. Some key advantages include: Improved Decision-Making: By relying on data rather than intuition,...
by Leif Jensen | Oct 16, 2024 | Taxes |
The primary purpose of estimated taxes is to provide the government with a steady stream of revenue throughout the year. This system helps taxpayers avoid large bills at the end of the year by requiring them to contribute as they earn income. By making regular...
by Leif Jensen | Oct 14, 2024 | Taxes |
To calculate estimated taxes, individuals must estimate their total tax liability for the year, including self-employment tax and individual income tax. They then divide this amount by four to determine the quarterly payment amounts. The IRS provides Form 1040-ES for...
by Leif Jensen | Oct 9, 2024 | Taxes |
The U.S. tax system operates on a pay-as-you-earn basis, requiring taxes to be paid as income is received. For employees, employers typically manage this through withholding. However, for those without automatic withholding, such as the self-employed, estimated tax...
by Leif Jensen | Oct 7, 2024 | General |
Generative AI utilizes large, versatile foundation models to create novel content such as text, images, music, audio, and videos. These powerful AI systems can multitask and perform a variety of out-of-the-box functions, including summarization, question answering,...
