Sole Proprietors and PPP Loan Forgiveness: Beware
Last week I wrote about how loan forgiveness for the solo sole proprietor will work. I had to strike through a lot of my thoughts as new information came in. So now, a week later, what do we know? The...
View ArticleTax Season 2020: The Lament of the Solo Tax Practitioner
Even before COVID-19 happened, I had said this was the worst tax season ever. COVID was just the rancid cherry on top of a moldy cake. It’s easy to be negative and cynical — social media almost...
View ArticleFFCRA Leave and the PPP
The Families First Coronavirus Response Act (FFCRA) requires businesses with fewer than 500 employees to provide 2 weeks of paid sick leave to employees who contract COVID-19. The employer then...
View ArticleEmployee Retention Credit and Owner Wages
UPDATE: I have changed my mind on this subject; I now think shareholder wages probably DO count but wages paid to most (but not all) relatives DO NOT. Fun times. Click here for the latest. A common...
View ArticleRevisiting ERC and Shareholder Wages
So this is how it goes when you work with taxes. One day you look at something and come to one conclusion. The next day you look at the same thing and come to a different conclusion. Yesterday, I...
View ArticleAnother ERC Question: Wages Paid or Wages Incurred?
Another employee retention credit has come up. The question was submitted to me by an attendee in one of my webinars: Pertaining to wages paid in the first quarter after 3-12, does the entire paycheck...
View ArticleTilting at Windmills Again, Or, Don’t Clients Have a Responsibility Too?
Here I go again on a writing spree about articles from the “experts” and the complaints of clients about how accountants aren’t doing enough. The latest comes from a survey from Canopy, published in...
View ArticleRevisiting (Again!) Shareholder Wages and the ERC
(Warning: if you are trying to read this on a computer, you may get my logo blocking your view when you start to scroll; I have a web-person working on a fix; this doesn’t seem to be happening on...
View ArticleSole Proprietors, PPP Loans and Home Office Expenses
(Warning: if you are trying to read this on a computer, you may get my logo blocking your view when you start to scroll; I have a web-person working on a fix; this doesn’t seem to be happening on...
View ArticleMaking IRA Contributions After the End of the Year: Good or Bad?
I usually advise my clients against making IRA contributions for the prior year after the year has ended. Let’s back up. What are we even talking about here? IRA Contributions After Year-End A...
View ArticleThings I Learned About Taxes this Week: September 4, 2020
I have decided to make this a running feature on my blog, to show just how hard taxes are. I am regarded as a “tax expert” and present CPE courses to other tax pros almost every day. Yet I learn new...
View ArticleRetirement Withdrawals, Home Purchases and the 10% Early Withdrawal Penalty
If you take money out of a retirement account to buy a house (for example to make a down payment), you can avoid the 10% early withdrawal penalty … but only on IRA withdrawals. The rules on...
View ArticleRevisiting W-9s, 1-Person LLCs and EINs
I wanted to revisit the subject of 1-person LLCs and employer identification numbers. Here are the basics, when a 1-person LLC is taxed as a sole proprietorship: The IRS says to put the proprietor’s...
View ArticleAre Estimated Tax Payments Required?
A common question people ask is, am I required to make quarterly estimated tax payments? I guess the best answer is: “sort of.” It’s not a matter of you “must,” but there are penalties for not doing...
View ArticleSUTA and the Single-Member LLC
This blog post is specific to Iowa. SUTA = state unemployment tax. In Iowa, when a 1-person LLC makes an election to be taxed as an S-corporation and pay the owner a salary, the salary is NOT...
View ArticleMy Tax Reform Wish List: Instantaneous Audits
First of all if one were to really dig into ways to reform the tax system in this country, there are MANY things one could come up with. This particular wish of mine is 1) not the most important...
View ArticleWhat to Do When Your Ex Wrongly Claims the Kids
When it comes to divorce and taxes, the IRS cares about who the custodial parent is. Custodial = who has custody of the kids more nights out of the year. Note: many people say “well we have joint...
View ArticleWhat Millennial Business Owners Want, And Seem to be Willing to Pay For!
The bookkeeping software company Xero recently released a report, available here, which shows that “millennial” business owners are unhappy with their accountants — 50% are unhappy and are looking to...
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