What IRS Budget Cuts Mean for Small Business Taxpayers

SJ Gorowitz IRS Advisory

Policymakers have continued to cut the budget of the IRS despite repeated warnings from sources like the IRS Commissioner, National Taxpayer Advocate, Treasury Inspector General for Tax Administration. At this point, the ability of the IRS to carry out its mission has been severely diluted, and US taxpayers are feeling the results.   … [Read more...]

What financial records should I keep?

SJG Tax Alpharetta

Good financial records lay the foundation for mapping business progress, preparing statements, identifying key income sources, tracking deductible expenses, keeping track of property, preparing your tax returns, and supporting the items you report on tax returns. One of the questions we get most often is how long to keep financial documents. Generally, the length of time you should keep a document depends on the action, expense or event the document records.  … [Read more...]

Good News about Allowable Contribution Limitations

Tax Year 2015 Allowable Contributions

Between 2013 and 2014, business owners and wage-earning employees saw almost no increases in allowable contribution and elective deferral limitations. Tax year 2014 was characterized by increased tax rates, increased wage limits for social security tax and numerous other indexed items. These limitations effectively took more out of tax payers take home pay, and did not increase the amount someone could save for retirement, tax deferred. We’re due for some good news, and it has arrived. Uncle Sam is helping us keep a little more of our earnings. In October, the Internal Revenue Service announced cost‑of‑living adjustments for tax year 2015. These changes impact the dollar limitations for pension plans and other retirement plan contributions. The change comes as a result of the cost-of-living index, which met statutory thresholds, triggering the adjustment. Some limitations will remain unchanged because the increase in the index did not meet the statutory thresholds that trigger … [Read more...]