Entertainment – No Business Deduction in 2018

Entertainment-Expenses-How-Will-Your-Business-be-Impacted

Under the Tax Cuts and Jobs Act, beginning in 2018, the costs of entertainment expenses are no longer tax deductible. With the old tax law, 50% of entertainment was an acceptable tax deduction for businesses.

Entertainment expenses are for the experiences and events that some businesses have offered clients in the past. Typical entertainment might be 18 holes on the golf course, front row seats at a concert, tickets to sports games or a weekend ski trip.

Business related meals with clients are still 50% deductible. Some businesses may choose to have more dinners, and less experiences/events with clients. Be careful of your choice. Some extremely expensive restaurants with live music, might be considered as entertainment rather than a business meal.

Some businesses may find ways to get around this. Promotional events are deductible as a marketing expenses, so you might see companies brand outings with more advertising, to qualify for the deduction. Tax Tip: The business sales pitch should last the entire duration of the event, rather than just a limited time. 

 

Amending Tax Returns

amendtaxreturn

You can file an amended return to correct errors on your originally filed tax return by filing Form 1040X. You will have to file this by mailing a paper copy to the IRS.

Learn more about filing an amended return by watching this IRS Video – Amending My Return

Audit Representation-Partner With a Pro

greedy man with money cartoonIt pays to Partner with a Pro for Audit Representation! I have two clients who recently retained my audit representation services, and are now celebrating their savings!

I was able to help Client 1 by reducing their penalties by 50%, for issues resulting from them attempting to self-prepare their tax returns. They now see the advantage of partnering with a Pro.

Client 2 received a “NO CHANGE TO YOUR RETURN” letter from the IRS, as a result to the audit response I prepared. They had all necessary receipts and tax details, resulting from my consulting with them in how they needed to keep their self-employed business books. They are thankful they partnered with a Pro!

I work hard to keep current on all updates to IRS Audit Representation, by carefully choosing continuing education classes each year, by the best in the industry. My client’s success defines my success.

 

 

Mind Blowing Numbers

I’m a numbers gal!Taxing Accountant

 

One more thing many of us didn’t
noticed is that 9 is the sum of all the
table result digits. Let me show you:

9 X 1 = 09 and 0 + 9 = 9
9 X 2 = 18 and 1 + 8 = 9
9 X 3 = 27 and 2 + 7 = 9
9 X 4 = 36 and 3 + 6 = 9
9 X 5 = 45 and 4 + 5 = 9
9 X 6 = 54 and 5 + 4 = 9
9 X 7 = 63 and 6 + 3 = 9
9 X 8 = 72 and 7 + 2 = 9
9 X 9 = 81 and 8 + 1 = 9
9 X 10 = 90 and 9 + 0 = 9
Isn’t this mind blowing?????Numbers Cartoon

Fraud Alert – Medicare or Medicaid

Medicare Medicaid Card Sample

Know anyone on Medicare or Medicaid? POTENTIAL FRAUD ALERTS! New Cards being sent. More details here below:

On April 1, 2018 the Centers for Medicare and Medicaid Services (CMS) began a yearlong project to replace all current Medicare cards. The replacement cards are being automatically mailed to beneficiary’s home addresses and will replace the social security number with a new alphanumeric Medicare Beneficiary Identifier (MBI). Contact the Social Security office at 1-800-772-1213 if you need to correct your home address.

We have already received reports that scammers have called some Medicare recipients claiming they need to collect a fee before a new card will be sent. Protect yourself by learning about the program and refusing to give out any personal information over the phone if someone calls you. There is no charge for the new card.

Every new MBI will be eleven characters long and contain letters in specific positions and numbers in other positions in order to quickly identify fake or counterfeit cards. Please note that the letters S, L, O, I, B or Z will never be used. If you receive a card with any of these letters you should contact Medicare immediately at 1-800-633-4227.

More information about the new cards can be found here:
https://www.cms.gov/medicare/new-medicare-card/nmc-home.html
https://www.medicare.gov/…/12002-New-Medicare-Card-flyer.pdf
https://youtu.be/DusRmgzQnLY

Best Use of Tax Refund

greedy man with money cartoonClark Howard has good ideas to share on how to use your tax refund and make it work best for you. He also recommends you adjust your withholding this year so you are not letting the government have a tax free loan from you. Watch this video to learn more from Clark Howard who always has our backs!

Make Your Tax Refund Count by Clark Howard

IRS Gives Additional Time to File Taxes

Breaking News

WASHINGTON — The Internal Revenue Service announced today that it is providing taxpayers an additional day to file and pay their taxes following system issues that surfaced early on the April 17 tax deadline. Individuals and businesses with a filing or payment due date of April 17 will now have until midnight on Wednesday, April 18. Taxpayers do not need to do anything to receive this extra time.

The IRS encountered system issues Tuesday morning. Throughout the system outage, taxpayers were still able to file their tax returns electronically through their software providers and Free File. Taxpayers using paper to file and pay their taxes at the deadline were not affected by the system issue.

“This is the busiest tax day of the year, and the IRS apologizes for the inconvenience this system issue caused for taxpayers,” said Acting IRS Commissioner David Kautter. “The IRS appreciates everyone’s patience during this period. The extra time will help taxpayers affected by this situation.”

The IRS advised taxpayers to continue to file their taxes as normal Tuesday evening – whether electronically or on paper. Automatic six-month extensions are available to taxpayers who need additional time to file can visit https://www.irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return.

Tax Deadline

 

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