Author Archives: Berger

1099s for corporations and other 1099 surprises Are you wondering what 1099 is all about? Let us explain. Businesses making payments of $600 and above from their business accounts for service must send the individual a Form 1099-NEC and file a copy with the IRS.Fees for professional services paid to attorneys, physicians and members of other professions must be reported in returns of information (1099s) if paid by persons engaged in a trade or business and paid in the course …

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How the IRS disappears tax refunds on unified tax returns Question My client has not filed taxes for 10 years, and the IRS wants his returns. Now, the problem is not the money he owes but the at least $100,000 he overpaid. The IRS won’t refund the amount. Are there any options to open up those returns for a refund? Answer The refund statute of limitations is straightforward. Here are the two prongs: To claim a refund for federal taxes …

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Who should own the business car: Corporation or Individual? Question As a tax practitioner, I have clients who operate single-owner S corporations. They want to know who should own the business vehicle—the individual or corporation—and its ramifications. I am confused about what answer to give my clients. I need help. Answer Yes Individual Ownership Financially it is advised for the individual to own the vehicle because the owner can get a better rate on vehicle insurance. However, owning the vehicle …

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Dutch-treat business meals Question I was informed by my accountant that my meals are not deductible but my client’s meals are deductible. I have about two documented business meals per week, where either of the three may happen: Show homes to clients for a prospective purchase Seek referrals Ask the prospects about the type of home they are looking I was of the opinion that when I paid the tab for breakfast, lunch, or coffee that included me and my …

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Do you need to amend your 2020 tax return for the 2020 ERC? Many questions arise when it comes to 2020 tax returns for 2020 ERC. Here are some questions and solutions: Question The IRS requires that the employer amend the 2020 tax return for the employee retention credit (ERC). Here is an employer’s situation to help you understand. The deal: The employer doesn’t have the credit yet. The IRS stopped processing ERC claims from September 14, 202, through at …

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CPA steals the payroll taxes, owner has to pay the IRS You read it right! The CPA stole the payroll taxes, which means he has the money.

CPA steals the payroll taxes, owner has to pay the IRS You read it right! The CPA stole the payroll taxes, which means he has the money.

If you operate your business as an LLC, then your LLC falls under one of the three categories (Proprietorship, Partnership or Corporation).

Despite Its High Cost, This Education Is Deductible Question We run an S corporation and specialize in flipping houses.

Here is a scenario that might interest you. Say, you bought stock in 2022 for $17,000, and in 2024 you sold it to your daughter at fair market value for $9,000.