Posted on

6 Reasons Small Business Owners Should Hire a Tax Pro

Isaac M. O’Bannon, Managing Editor On Dec 26, 2018
Source: https://www.cpapracticeadvisor.com/news/12439501/6-reasons-small-business-owners-should-hire-a-tax-pro

If you heard that millions of people tried performing surgery on themselves every year, you’d likely be aghast or at least perplexed that people would take such a chance at something so complex. Well, every year, millions of taxpayers decide to perform complex tax preparation by themselves and, while it may not put their life at risk, it is a perilous task.

For taxpayers with the simplest income tax returns, do-it-yourself online tax systems will likely suffice. These people often have only one source of income coming from a traditional employer, may have a home mortgage with interest, student loan debt and perhaps some childcare credits. For individuals with more complex incomes, such as revenue from businesses, income from interest and dividends, capital gains on a home sale or foreign assets, seeking the expertise of a professional can save time, money and potential legal complications.

For small business owners and most taxpayers, there are many reasons why seeking a tax professional is better than performing your own tax surgery.
Read More

Posted on

Will Government Shutdown Affect Tax Refunds?

By Ken Berry, J.D., CPA Practice Advisor Tax Correspondent On Jan 16, 2019
Source: https://www.cpapracticeadvisor.com/news/12440133/will-government-shutdown-affect-tax-refunds

*Updated 10:01 am, ET, Jan. 16. 2019.*

Tax refunds may not be going out on time after all.

As the government shutdown approaches a full month—it’s already the longest in history—more doubt is creeping in as to whether a reduced staff at the IRS will be able to process returns and issue refunds in a timely manner. What’s more, as this is being written, there’s no end in sight to the stalemate.

When the IRS announced that tax filing season would kick off on January 28, it also stated that the shutdown wouldn’t delay tax refunds due to early filers. “We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown,” said IRS commissioner Chuck Rettig. The proclamation was made in accordance with directives from the White House.

Read More
Posted on

IRS REMINDER

Deadline Dec. 31 for most retirees who must make required retirement plan distributions

IR-2018-248, December 11, 2018

WASHINGTON — The Internal Revenue Service today reminded retirees born before July 1, 1948, that they usually must take distributions from their individual retirement arrangements (IRAs) and workplace retirement plans by Dec. 31.

The payments, called required minimum distributions (RMDs), are normally made by the end of the year. Those who reached age 70½ during 2018 are covered by a special rule that allows them to wait until April 1, 2019, to take their first RMDs.

This means that those born after June 30, 1947, and before July 1, 1948, are eligible for this special rule for 2018. If they wait until early 2019 to take that first RMD (up until April 1, 2019), it can be counted toward their 2018 RMD, but is still taxable in 2019.
Read More

Posted on

What does CPA stand for? Certified Public Accountant

certified public accountant - cpa

Everyone knows about CPAs, right? Although you may often hear friends talk about meeting with their CPAs at tax time or when they need critical business advice, in fact many people are not really aware of what it means to be a certified public accountant.

When you are looking for financial advice, keep in mind that not all accountants are CPAs. Many states allow anyone to use the title “accountant,” but only CPAs have passed the CPA exam and meet their state board of accountancy’s licensing requirements. CPAs are also the only professionals who can perform audits of publicly traded companies. If you are seeking the services of a highly trained professional, make sure they have the “CPA” initials after their name. 
Read More

Posted on

What Kids And Their Parents Should Know About Summer Jobs And Taxes

Image from Shutterstock

Kelly Phillips Erb Forbes Staff
Taxes
Source: https://www.forbes.com/sites/kellyphillipserb/2018/07/05/what-kids-and-their-parents-should-know-about-summer-jobs-and-taxes/#5cee24221ce4

Now that the fireworks are over and summer is officially in full swing, many high school and college students are thinking about getting a seasonal job. Whether kids are serving up slices, mowing lawns or ringing up groceries, here’s what they and their parents should know about summer jobs and taxes:

You may not owe taxes, but you may still need to fill out tax forms. Mark Luscombe, Principal Analyst, Wolters Kluwer Tax & Accounting, says that a summer job may be the first time that kids encounter a form W-4. Figuring out what to claim as an adult can be tricky, but it’s typically a little easier for children with seasonal jobs. With the increased standard deduction, he says, it’s less likely that a teen filing on his or her own will owe taxes. If you’re sure that you won’t owe taxes, Luscombe says to consider claiming an exemption from withholding. If you don’t know, claim 0 or 1, since any over-withholding should be refunded to you at tax time.Read More

Posted on

Exciting developments happening this summer!

Dear Valued Client,

Exciting developments happening this summer!

We are pleased to announce that Davis CPA and Associates, LLC is merging with Sharon L. Nagy, CPA Inc. effective July 1, 2018. We can’t wait for our clients to meet the new team and see our new location. The new practice will be known as Davis, Nagy & Company LLC and the new location will be 1270 S. Cleveland-Massillon Rd. Bldg. A Ste. 110, Copley, OH 44321.

Davis CPA and Associates, LLC brings over 53 combined years of public and private accounting and tax knowledge. Davis CPA has distinguished the service they provide to their clients by going beyond what is considered to be the “typical” CPA role.  Clients have learned to rely on the firm for their individual and business tax, payroll, and business consulting needs. Davis CPA and Associates, LLC currently has two team members, Kathy Davis, CPA and Ken Gillette. Kathy’s area of expertise is tax and business planning, while Ken’s focus is financial business planning and payroll services.
Read More