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TAX & ACCOUNTING TALK FROM MPS

The MPS|CPA accounting blog is your home for thoughts on industry trends and issues, news from around the financial world, and much more.

IRS Must Reveal Workers’ Tax Return Information in Employee Misclassification Case

A recent unanimous ruling by the U.S. Tax Court could make it easier for employers whose workers have been reclassified as “employees” by the IRS to avoid income tax liability for the workers’ earnings. The ruling allowed an employer access to its reclassified workers’ individual tax returns, which could reveal that they had already paid income tax on their earnings, thereby reducing the employer’s liability for withholding taxes. This article details the implications of the U.S. Tax Court Case.

By |May 30th, 2017|Categories: Blog, Labor & Employment|0 Comments

Business Owners: When it Comes to IRS Audits, Be Prepared

As a business owner, you likely are concerned about being audited by the IRS. Audits can occur randomly, but some tax return items may raise red flags with the IRS, such as major inconsistencies between previous years’ filings and the most current one, profit margins or expenses markedly different from those of similar businesses, and unusually high deductions. Learn more about what may lead you to be audited and how to prepare in this blog post.

By |May 23rd, 2017|Categories: Audits, Blog|0 Comments

Real Estate Professional vs. Investor: Why It Matters

Income and losses from investment real estate or rental property are passive by definition, unless you’re a real estate professional. Why does this matter? Passive income may be subject to the 3.8% net investment income tax, and passive losses generally are deductible only against passive income, with the excess carried forward. Learn more about the NIIT in this blog post.

By |May 16th, 2017|Categories: Blog, Tax Planning and Tips|0 Comments

Evaluate the Tax Risks and Rewards of Operating Across State Lines With a Nexus Study

Operating in another state might mean being subject to taxation there, generally if you have nexus with the state. Essentially, “nexus” means a business presence that’s substantial enough to trigger the state’s tax rules and obligations. What activates nexus depends on a state’s chosen criteria. Learn more in this blog post.

By |May 9th, 2017|Categories: Blog, Tax Law|0 Comments

Turning Your 2017 Tax Refund Into Cash in Your Pocket Now

If you received a 2016 federal income tax refund, you essentially made an interest-free loan to the government. Rather than wait to receive your 2017 refund until you file your return in 2018, why not begin enjoying that money now by reducing your withholdings or estimated tax payments? Learn more in this blog post.

By |May 2nd, 2017|Categories: Blog, Tax Refunds|0 Comments

Save or Shred? Tax Document Retention Guidelines for Individuals and Businesses

How long is it necessary to hold on to individual or business tax-related documents? The quick answer is that it depends on the document. Generally, tax-related records should be kept three years after filing a return or three years after the tax return’s original due date, because the IRS generally has that long to commence an audit. But in some cases, the statute of limitations for commencing an audit extends beyond three years. And it’s a good idea to keep some documents for much longer. This article discusses tax-related document retention guidelines for individuals and businesses.

By |April 27th, 2017|Categories: Blog, Tax Planning and Tips|0 Comments