http://hbsbusiness.com/index.php/news/ Recent articles and news from HBS Tax in Martinsburg, WV. en hershbusiness@aol.com Copyright 2013 2013-05-13T17:38:02+00:00 http://hbsbusiness.com/index.php/site/articles/adoption_credit_countdown/ http://hbsbusiness.com/index.php/site/articles/adoption_credit_countdown/ In today’s column I will discuss the Adoption Tax Credit and children that meet the IRS definition of “special needs.” I will also discuss the unexpected financial windfall adopting these children created for these grandparents and, finally, why time is running out on claiming the credit.  Tax Preparation 2013-05-13T17:38:02+00:00 http://hbsbusiness.com/index.php/site/articles/filing_season_2013_year_of_the_extension/ http://hbsbusiness.com/index.php/site/articles/filing_season_2013_year_of_the_extension/ On January 1st, 2013 Congress passed the American Taxpayer Relief Act of 2012, AKA the Fiscal Cliff Tax Act. This legislation contained 157 pages of Tax Code changes, more than a dozen of which were retroactive and altered the rules for the prior tax year.  These changes were made at the very moment the IRS (and the entire tax-processing industry) was prepared to process income tax returns using the laws that were already in place for 2012. What this has meant for many taxpayers is delayed filing, delayed refunds, and the increased possibility of filing returns containing errors. Tax Preparation 2013-04-08T12:25:24+00:00 http://hbsbusiness.com/index.php/site/articles/hoas_must_file_taxes/ http://hbsbusiness.com/index.php/site/articles/hoas_must_file_taxes/ If you own a home in a planned community or development there is a good chance you are a member of a homeowners’ association (HOA). One perplexing aspect of HOA management is the tax reporting requirements of the IRS.  I have discussed this topic several times in the past. Still, it continues to generate more calls and web visits than any other topic.  Some common questions our office receives are “Must our HOA file a tax return?” “What return must it file?” and “What happens if we haven’t filed for a number of years?”  Today, I’ll revisit some of these basic questions in order to clarify some of the confusion associated with taxes and your HOA’s reporting requirements. Tax Preparation 2013-03-28T13:34:40+00:00 http://hbsbusiness.com/index.php/site/articles/use_tax_the_wv_stealth_tax/ http://hbsbusiness.com/index.php/site/articles/use_tax_the_wv_stealth_tax/ If your business has ever been audited by the WV State Tax Department the result may have included a very expensive vocabulary lesson.  It is a lesson that forever stamps the phrase “Use Tax” into your, the owner’s, lexicon. Tax Preparation 2013-03-05T14:12:24+00:00 http://hbsbusiness.com/index.php/site/articles/want_your_business_to_grow_understand_bueches_law/ http://hbsbusiness.com/index.php/site/articles/want_your_business_to_grow_understand_bueches_law/ It’s a fact.  Small business owners and their employees generally work harder and wear more hats than their counterparts in larger organizations.  Profitable small businesses must be simultaneously nimble and lean - able to change quickly with their environment while employing just enough staff to get the job done.  Small business owners beware of over-reacting when you feel overwhelmed by too much to do and too little time.  The uncalculated hiring of additional employees is a very poor substitute to implementing and refining systems. It’s one of the most common, growth-stunting mistakes small business owners make just when opportunity knocks. Growth Strategies 2013-02-04T14:43:17+00:00 http://hbsbusiness.com/index.php/site/articles/fiscal_cliff_averted_for_now/ http://hbsbusiness.com/index.php/site/articles/fiscal_cliff_averted_for_now/ The fiscal cliff was the progeny of 2011’s debt ceiling debate and the Budget Control Act of 2011.  The Budget Control Act was Congress’s self-imposed ultimatum to find $1.2 trillion in deficit reduction (via a bipartisan super committee) or else. Tax Preparation 2013-01-21T12:41:00+00:00 http://hbsbusiness.com/index.php/site/articles/health_reform_and_taxes/ http://hbsbusiness.com/index.php/site/articles/health_reform_and_taxes/ The election is over.  America has decided.  The Affordable Care Act remains and will soon alter the shape of American health care.  Those who have taken a wait-and-see attitude regarding the law’s post-election viability are scrambling to parse its 2,400 pages and learning two important facts.  First, if everything runs smoothly, many more Americans will have health insurance coverage.  Second, the Affordable Care Act places the Internal Revenue Service smack-dab in the center of health care reform.  Tax Preparation 2012-12-26T19:28:42+00:00 http://hbsbusiness.com/index.php/site/articles/foreclosure_may_be_taxable_for_many/ http://hbsbusiness.com/index.php/site/articles/foreclosure_may_be_taxable_for_many/ As we transverse the calendar from 2012 to 2013, the horizon is veiled in a fog of financial uncertainty.  If we do not steer clear of this proverbial fiscal cliff, the average taxpayer will face a major tax increase as the Bush Era tax cuts expire. As uncertain as these skies may seem, however, underwater homeowners (debt on their home exceeds its value) facing the prospect of short-sale and/or foreclosure may soon face another dilemma: a sea of tax debt caused by the expiration of Qualified Principal Residence Indebtedness Exclusion.  Tax Preparation 2012-12-26T19:23:49+00:00 http://hbsbusiness.com/index.php/site/articles/caution_home_office_deduction/ http://hbsbusiness.com/index.php/site/articles/caution_home_office_deduction/ If you are the sole owner of an unincorporated business and have not elected to be treated as a corporation for tax purposes, you are considered a “sole proprietor” for tax purposes.  Sole proprietors report their business income and expenses on Schedule C, Profit or Loss from Business.  Schedule C then becomes part of the owner’s individual tax return, Form 1040.  Sole Proprietorships are the most common form of business in the United States, making Schedule C the most common business form filed with the IRS. Tax-Based Bookkeeping 2012-11-05T15:07:06+00:00 http://hbsbusiness.com/index.php/site/articles/businesses_irs_steps_up_1099_enforcement/ http://hbsbusiness.com/index.php/site/articles/businesses_irs_steps_up_1099_enforcement/ Last year the IRS took an aggressive step to ratchet up its ability to enforce business compliance with annual 1099 income reporting regulations.  Today I will discuss form 1099-Misc and these enforcement changes.  I will also share the potential consequences for not filing these annual reports and how to stay out of the IRS’s enforcement cross-hairs. Tax-Based Bookkeeping 2012-11-05T14:56:36+00:00