Tax Services: Three Common Tax Problems Faced by Businesses

For large businesses and small businesses alike, tax problems present themselves each year for a variety of reasons. There are many precautions that your business can take to avoid certain tax problems, but without professional tax services, it can be difficult to stay on top of every potential problem. Today, LongSchaefer wants to help your business avoid these problems. In this blog post, we’ll evaluate three common tax problems faced by businesses. 

Failure to Track Deductible Expenses

For businesses that do not utilize expense accounts, it’s crucial that you are keeping track of all of your deductible expenses. Failing to keep track of deductible expenses is a common tax problem for businesses that don’t have a specific credit card or banking account for expenses. Failing to keep track of these expenses means that you are likely missing out on tax savings. Make sure to keep all your receipts to avoid the need for professional tax services. 

IRS Audits

Few things are more stressful for a business than receiving an audit letter from the IRS. There are several red flags that might get your business audited, including year-over-year net losses, consistent late filings, and salaries that are higher than usual for your industry. Audits take significant time and energy, as you gather documents and records to substantiate items on your tax return. The IRS is thorough and isn’t going to let you off easy, so it’s important to have proper representation if faced with this tax problem. At LongSchaefer, we offer IRS audit representation that will help save your business time and money during the audit process. 

Payroll Taxes

There aren’t many things worse in the eyes of the IRS than failing to pay your payroll taxes. A significant portion of payroll taxes are your employees’ withholdings, which immediately puts the IRS on guard. The penalties that come with failing to pay your payroll taxes are often more severe than other tax problems, so you shouldn’t take payroll taxes for granted. If you are behind on these taxes, you will want to make it a priority for your business and avoid the IRS knocking on your door. 

Contact LongSchaefer for Tax Services

If your business is facing a tax problem, whether it’s an audit, payroll taxes, or another issue altogether, LongSchaefer tax services can help. For more information on the tax services we can provide for your business, get in touch with us at (513) 245-0300 or contact us online today. 

Tax Planning Tips for the Holiday Season

During the Christmas season, you are going to be spending money early and often on gifts for family and friends. It can be easy to lose track of how much you are spending, especially without a set budget. During the hectic holidays, many people overlook the tax implications of the holiday season. In today’s blog post, LongSchaefer offers a few tax planning tips for the holiday season.

Don’t Lose Track of Your Receipts

It’s important to keep track of your receipts all year round, but it’s especially true during the holidays. When tax season hits, you’ll want to have all of your receipts for deductible expenses, and that includes holiday receipts. Make sure to keep all of your holiday-related receipts, including gifts, childcare expenditures, and travel expenses. Whether you are filing your taxes or returning a gift, saving your receipts will pay off.

Don’t Forget Child and Dependent Care Tax Credits

One of the most common headaches during the holiday season is childcare over winter vacation from school. While the adults of the home are still working, children are out of school, many needing some sort of childcare. If you have to hire a babysitter or send your kids to winter camp, you might be eligible for child and dependent care tax credits. In fact, you could be eligible for up to $2,100 in tax credits for your childcare.

Consider When to Payout Your Holiday Bonus

If you are expecting a holiday bonus from your employer in the coming weeks, you might want to consider waiting until 2020 to cash it out. For a bonus that comes with a significant payout, it could actually bump you into the next tax bracket. When working through your tax planning for 2020, it might benefit you to defer your bonus to 2020 so that it doesn’t impact your 2019 tax return. If you don’t immediately need the extra income, it might serve your family best to wait. 

Contact LongSchaefer for Tax Planning

As we head into 2020, tax season will be upon us in no time. If you are looking for tax planning help in 2020, give LongSchaefer a call at (513) 245-0300 or contact us online today.

May 2020 COVID-19 Update

In order to comply with the Ohio Health Department Order & CDC social distancing recommendations, our offices are closed until further notice. Rest assured that our established protocols and available technology will allow us to provide the same level of service and quality you expect from LongSchaefer during this time.

The SBA has announced details of how it’s helping small businesses through the Coronavirus outbreak. The IRS is sending payments to families affected by this crisis. 

Please click on our Coronavirus information pages for more information.