IRS continues work to help taxpayers; suspends mailing of additional letters
- ByPolk & Associates
- Feb, 15, 2022
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Source: IRS Website As part of ongoing efforts to provide additional help for people during this period, the IRS announced today the suspension of more than a dozen additional letters, including the mailing of automated collection notices normally issued when a taxpayer owes additional tax, and the IRS has no record of a taxpayer filing […]
Polk & Associates TaxCaddy Software Update
- ByPolk & Associates
- Feb, 04, 2022
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Polk and Associates, PLC is excited to announce the utilization of TaxCaddy software to assist in the preparation of your individual tax return. If you have been utilizing our ShareFile software, expect a TaxCaddy invitation in the coming days. TaxCaddy simplifies tax time by allowing you to: Easily gather documents year-round by Uploading them from […]
2022 deadlines for reporting health care coverage information
- ByPolk & Associates
- Feb, 03, 2022
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A business with 50 or more full-time employees or full-time equivalents is generally considered an applicable large employer (ALE) under the Affordable Care Act. ALEs can be subject to penalties for failing to offer minimum essential coverage that’s affordable and provides at least “minimum value” to full-time employees and their dependents. ALEs also must comply with information reporting requirements using IRS Forms 1094-C and 1095-C. For businesses that were ALEs for calendar year 2021, three key deadlines this year are: 1) February 28, to file the 2021 forms on paper. 2) March 2, to furnish Form 1095-C to employees. 3) March 31, to file the forms electronically. Contact us for more info.
The Ins and Outs of IRAs
- ByPolk & Associates
- Feb, 03, 2022
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Traditional and Roth IRAs can help you save for retirement on a tax-favored basis. Contributions to a traditional IRA reduce your current tax bill, if you’re eligible, and earnings are tax-deferred. However, withdrawals are taxed in full (plus a 10% penalty if taken before age 59½, unless an exception applies). Roth IRA contributions aren’t deductible. But earnings are tax deferred and withdrawals are tax free if certain conditions are met. The maximum annual IRA contribution is $6,000 for 2022 and 2021 ($7,000 if age 50 or over). In addition, your contribution can’t exceed your compensation includible in income for the year. There’s no age limit for making contributions if you’re eligible.
Keeping meticulous records is the key to tax deductions and painless IRS audits
- ByPolk & Associates
- Feb, 03, 2022
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Businesses must keep records of their income and expenses. Carefully record them in order to claim the full amount of tax deductions to which you’re entitled. You also want to make sure you can defend the amounts on your tax returns if you’re ever audited by the IRS. Certain expenses, such as automobile, travel, meals and home office expenses, require special attention because they’re subject to special recordkeeping requirements or limits on deductibility. Contact us if you need assistance retaining adequate business records. By taking a painstaking approach to how you keep records, you can protect deductions and help make an audit much less difficult.
Let your financial statements guide you to optimal business decisions
- ByPolk & Associates
- Feb, 03, 2022
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Business owners: No matter how busy things get, don’t overlook the informative value of your financial statements. Assuming you follow U.S. GAAP or similar reporting standards, yours will have three major components: 1) The income statement, which shows revenue and expenses over the accounting period. 2) The balance sheet, which tallies assets, liabilities and net worth to take a snapshot of your financial position. 3) The statement of cash flows, which shows cash inflows and outflows from operating, financing and investing activities. Financial statements contain a wealth of data that can allow you to identify trends, both good and bad, affecting the business. Contact us for help.
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