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Instruction, Taxes


Payroll Taxes


This is the first in a series of videos on the topic of payroll taxes. Anyone with a business that has employees should find this series of videos to be useful and important. There will be many actionable items relating to payroll tax matters discussed throughout the series.

Payroll taxes are one of the more common reasons that businesses fail. Gary will discuss why this is the case and, similarly, what business owners may do about it.

In this video, we begin with an overview of the magnitude of the payroll tax issue.

Then, we move on to a discussion of how payroll taxes work, including forms required. We also talk about the differences between FICA tax, Medicare tax and the withholding of employee income taxes, including their calculation.


Trust Fund Taxes


One of the critical areas covered in this video is the importance of Trust Fund taxes. These are the payroll taxes the employer holds in trust for the government. The penalties for the misappropriation of these funds are very high and can be imposed on the company, as well as the owners and certain key employees. This is known as “personal liability.”

Additionally, we go on to discuss the EFTPS system, which mandates the electronic payment of payroll taxes by almost all employers.

Finally, we conclude the video with a summary of three penalties.  These can be imposed on the employer, in addition to the Trust Fund penalties already discussed.


If you enjoyed this video, and would like to see more of our tax and accounting content,  subscribe to our YouTube channel!

For more information about the services our firm provides, visit our Home Page


Founded by Gary Massey, Massey and Company is a boutique CPA firm in located in Atlanta, Georgia. We dedicate ourselves to serving the needs of small businesses and their owners.



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Taxes

 


Click below to watch our new video on bankruptcy, taxes and the IRS!



In this video you’re going to learn the truth about whether or not taxes may be discharged in bankruptcy.

Generally, taxes are not dischargeable. However, if taxpayers meet a number of key exceptions in a bankruptcy proceeding, then their tax bill will be discharged.

Here are the rules that I cover in the video:

First, you’ll learn that taxes may be discharged only if they relate to a return prepared by the taxpayer or their representative. Taxes from a return prepared by the IRS (the “Substitute for Return”) may not be discharged.

Second, I’ll explain that trust fund taxes may not be discharged. Trust fund taxes are taxes that are collected on behalf of the government, such as sales taxes and payroll taxes. Only income taxes may be discharged

Third, I talk about how civil or criminal fraud invalidates a tax from being discharged.

Finally, I conclude with three different time-related tests that apply to taxes in the context of bankruptcy. Careful scrutiny of a taxpayer’s tax history is required to identify which tax liabilities pass these tests.

Examples are provided to clarify how these rules work in different situations.


To see more of our videos, please check out our YouTube Channel!

If you would like to learn more about the services we provide, please visit our home page!


Founded by Gary Massey, Massey and Company is a boutique CPA firm in located in Atlanta, Georgia serving the needs of small businesses and their owners.


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Taxes



In this video, you’re going to learn exactly how to use the Installment Agreement program offered by the IRS to help taxpayers who cannot afford to pay their tax bill.

Here are the Installment Agreement strategies that I cover in the video:

First, you’ll learn how to utilize the Automatic Agreement program for those with less than $10,000 in taxes owed. In my experience, this type of Agreement is super easy to get.

Next, Gary will  explain the Streamlined Agreement. This has been expanded from $50,000 to $100,000 for 2020. Gary also suggests a simple strategy to take advantage of the benefits of this great program.

Then, I talk about how the Regular Installment Agreement works. With this, you need to work with financial statements in order to get the IRS to accept your Offer.

Lastly, I review the Partial Pay Installment Agreement to get around the 10-year Statute of Limitations.

I concluded with practical tips to avoid accidentally defaulting on your Installment Agreement. If you default, the IRS will void your agreement and you have to start all over again.


To watch more of our firm videos, visit our YouTube channel! Please subscribe so that you don’t miss our future videos. 

For more information about the services we provide, please visit our Home Page.
Call our office at 678-235-5460 for a free consultation.


Founded by Gary Massey, Massey and Company is a boutique CPA firm in located in Atlanta, Georgia serving the needs of small businesses and their owners.


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Taxes
Divorce is hard.  Taxes make it harder.  Watch our latest video on the 7 key tax questions for Atlanta taxpayers to ask before getting a divorce!

Check out our video on taxes and divorce.   Here are the questions that we address:

  1. What to do if tax returns are missing?  What will the divorce Court do about missing taxes?  Should we file married or separately?
  2. How will tax responsibilities be divided?  What is the significance of a joint tax return?
  3. What if I don’t trust previously filed tax returns?
  4. Is our accountant impartial?
  5. Are there options to deal with significant unpaid tax debts, interest and penalties?  What is the Offer in Compromise?
  6. Can we sell marital property if it has an IRS tax lien?
  7. Are there any negotiation points related to taxes that I should know?


If you would like to watch more of our videos, click here!

If you would like to learn about Innocent Spouse Relief, which often becomes important in divorce situations, click here!

For more information on the services we provide, visit our Home Page!



Founded by Gary Massey, Massey and Company is a boutique CPA firm in located in Atlanta, Georgia serving the needs of small businesses and their owners.

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Taxes
If you work out of a home office, then this article is for you. There are three key factors that go into getting the home office tax deduction. These are:
  1. Determining what qualifies as a home office.
  2. Calculating the tax deduction.
  3. The type of business you have.

Let’s take a closer look at these components. 

1. What Qualifies as a Home Office? 

For your at-home workspace to be considered a home office, it must be used regularly and exclusively for your business. 

“Regularly” means that the space is used consistently and often.  In other words, using the space occasionally, or briefly on an inconsistent basis is not considered regular use. 

“Exclusively” means that this space must serve only as a workspace. Your kitchen, for example, does not qualify, because it is used for purposes other than your business. A desk in the corner of a room is acceptable.  However it is important to ensure that the space is not used for things other than work.

Essentially, in order to qualify, the home office needs to be the principle place of business. Either you need to spend most of the working day there, or it needs to be the place where you handle all of your administrative and management work. For example, if you are a plumber and drive to jobs throughout the day, you would use this space to handle office matters. 


2. Calculating the Tax Deduction

There are two methods to calculate the home office tax deduction.
  1. The Ratio Method – This method involves a ratio of the square feet of your office, compared to the square feet of your home, multiplied by utilities, rent, real estate taxes, mortgage interest, telephone, internet, and insurance.
  2. The Simplified Method – Simply, use $5 per square foot, for up to 300 square feet.

If you are not sure which method is right for you, feel free to call our firm at 678-235-5460 for more information.


3. Type of Business

The final element to consider is the type of business you have. Each of the following business types are eligible for home office tax deductions:

  1. Limited Liability Company, or LLC
  2. Partnerships (The partners can deduct home office expenses on their personal tax returns)

Owners of S Corporations are employees and may not use this tax deduction. The solution to this is for them to adopt an accountable plan. This way, the owner can be reimbursed tax free and the business takes a deduction for the related expenses.  Give us a call to learn about adopting an accountable plan.


To watch our YouTube Video on this topic, click here!

To learn more about our firm, Visit our Homepage


Founded by Gary Massey, Massey and Company is a boutique CPA firm in Atlanta, Georgia serving the needs of small businesses and their owners.

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Taxes

Click here to watch our most recent video to learn how to get tax refunds for late or missing returns! If you have missing tax returns (especially if you feel you are due a refund), this video is for you.

As Gary discusses in this video, it is important to note that you have three years from the date a tax return was due to claim the refund. In order to get the tax refunds from a late or missing tax return, you will have to get them filed.

Remember that if they are not filed, the penalties and interest will quickly add up. Don’t wait!



Did you enjoy this video? If you would like to see more of our tax and accounting content, please check out our YouTube channel! Subscribe to see future videos that might benefit you and your business.

For more information about the services we provide, please visit our Home Page!
If you would like assistance preparing late or missing tax returns, call our office at 678-235-5460 for a free consultation.


Founded by Gary Massey, Massey and Company is a boutique CPA firm in located in Atlanta, Georgia. We are dedicated to serving the needs of small businesses and their owners.

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Taxes

The IRS knows that there are over 7 million individuals and businesses with unfiled tax returns. A significant percentage of that number constitutes taxpayers who have not filed returns for multiple years. The IRS is beginning an initiative to target these “non-filers.”

If you come into our Buckhead CPA firm to resolve the problem of missing tax returns for you or your business, we will be sure to discuss with you three key strategies for non-filers:

1.) How Many Years to File?
– No matter how many years of returns have not been filed, the IRS only requires you to file six years of missing tax returns.

2.) How are You Going to File? – If you can’t afford to pay your back taxes, consider filing separately from your spouse, followed by an Offer in Compromise. This may save you thousands of dollars, depending on your fact pattern.

3.) Where You are Going to File? – Supercharge your Offer in Compromise for back taxes by filing your state returns first. This, too, may save you thousands of dollars, depending on your facts and circumstances.

Unfiled tax returns are an urgent matter. Especially if you want to stay out of trouble with the IRS.

For an appointment, please call our office at 678-235-5460, or send Gary an email at Gary.Massey@MasseyandCompanyCPA.com.

Click here to view our recent post!

Founded by Gary Massey, Massey and Company is a boutique CPA firm in located in Atlanta, Georgia serving the needs of small businesses and their owners.


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Taxes
Audit RatesAccounting Today recently published an article, “Ten Major Trends in IRS Audits,” examining how IRS audit rates have changed over the past several years. This article provides useful information for taxpayers, especially those who own a business.


Audits of Business Entities


Partnerships and S Corporation are less likely to be audited. According to the article, “The IRS continues to struggle to audit S corp and partnership returns. This situation is likely to get worse as the more experienced IRS business auditors continue to retire. Audit rates for S corps and partnerships are both 0.22 percent – or, put another way, one in every 455 passthrough entities were examined in 2018. It is no wonder that the number of S corporations have increased by 38 percent from 2005 to 2018 (3.5 million in 2005 versus 4.85 million in 2018).” This is an important factor to consider when thinking about making an “S election” for your business.

In addition, audit rates have dropped overall in the last decade. “Most taxpayers envision Internal Revenue Service audits as intrusive investigations resulting in criminal sentences. Today, nothing could be farther than the truth. The IRS’s auditing power has been greatly diminished in the past decade. Congress reduced IRS audit resources by 28 percent in the last decade. And audits are down  from 0.9 percent in 2010 to o.5 percent in 2018. In fact, the number of IRS audits in 2018 (991,168) dropped by almost half compared to 2010 (1.735 million).”


Audit Targets


Nevertheless, there are situations where the IRS consistently audits companies or individuals. According to the article, audits are especially popular among the wealthy. “In 2011, one out of every eight taxpayers who earned more than $1 million in income were audited. In 2018, the number dropped to one in every 31 taxpayers. However, those who earn more than $1 million are still among the most popular audit profiles.”



Article References
Accounting Today, “Ten major trends in IRS audits.” By Jim Buttonow. Click here to read the original article.



Founded by Gary Massey, Massey and Company CPA serves the needs of small businesses and business owners from their office in Atlanta, GA.  They handle tax matters, IRS controversy, tax debts, back taxes, bookkeeping and accounting.  Offices are in the Buckhead neighborhood of Atlanta.   The firm welcomes face-to-face visits.

Gary Massey, CPA

Massey and Company CPA

P.O. Box 421396, Atlanta, GA  30342

Massey and Company 

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Instruction, Taxes
What is IRS Notice CP2000?


We have noticed a significant increase in the number of Atlanta taxpayers receiving IRS Notice CP2000 in the mail.  The IRS sends this notice when information from a third party source (such as a 1099 or W-2) does not match the information the taxpayer reported on their tax return.

The notice also provides steps that taxpayers should take in order to resolve those issues. Here are 6 things that will help you better understand the importance of receiving an IRS Notice CP2000 and what you should do. 

What You Need to Know

The IRS sends Notice CP2000 when a tax return’s information does not match the data reported to the IRS by third parties, such as banks, vendors or employers.

This notice is not a formal audit notification. It is simply a notice to see if the taxpayer agrees or disagrees with the proposed changes.

Taxpayers should always respond to the notice CP2000. Usually, the taxpayer has 30-days from the date printed on the notice to respond. 

The IRS provides a phone number on each notice that they send out. IRS telephone assistants can explain the notice and what taxpayers need to do to resolve any issues.

The IRS will send a follow up notice to taxpayers who do not respond to Notice CP2000, or if the IRS does not accept the additional information provided.   This second notice is called a Statutory Notice of Deficiency.

The Statutory Notice of Deficiency provides detailed information about why the IRS proposes a tax change and how the IRS determined the change. The notice tells the taxpayers about their right to challenge the decision in Tax Court if they choose to do so. It is critical to respond to this notice within the required time period, in order to preserve legal rights.



Massey and Company CPA represents taxpayers who receive IRS Notices.  To learn more, give us a call at 678-235-5460, or email us at gary.massey@masseyandcompanycpa.com. You can also contact us through our website by visiting the home page.



Founded by Gary Massey, Massey and Company is a boutique, Atlanta-based CPA  firm serving the needs of small businesses and their owners. We handle tax matters, IRS controversy, tax debts, back taxes, bookkeeping, and accounting. Our offices are in the Buckhead neighborhood of Atlanta and we welcome face-to-face visits.

Gary Massey, CPA

Massey and Company CPA

P.O. Box 421396, Atlanta, GA  30342

Massey and Company 

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Taxes

If you are a business owner, you know how important it is to track your expenses. You are probably also aware that keeping track of your money is becoming more and more difficult in our fast-paced digital world. The online receipt capture feature by QuickBooks Online makes this as easy as possible.

When it comes time to filing taxes, you need to be prepared with an organized expense record for your business. This has been a difficult task in the past. However, with QuickBooks’ new online receipt capture feature, this task has changed. Now, keeping a current record of your expenses has never been easier!





“Audit-Proof” Your Business with the Snap of a Picture
QuickBooks Online has always given you the option to sync your bookkeeping records to your bank accounts, credit card accounts, Paypal and Square.  What’s new is that you can now take pictures of your receipts on your smart phone, using the QuickBooks app.  The pictures are attached to your transaction inside QuickBooks and saved forever.  No more paper.  And your books are now audit-proof, in case the IRS ever comes knocking.

And with the ease of the QuickBooks App, you can audit-proof your business from virtually anywhere! 


The Best Part – No Extra Fees!

The best part of this new feature is that it comes with no extra cost for users of QuickBooks Online.

This feature could change the way you run your business, and make your life easier.  Think about what it will be like to eliminate years of paper receipts with the click of a button!  Plus, imagine going to sleep at night without worries of the IRS challenging your expenses in an audit.

We can show you how Receipt Capture works.  Feel free to give us a call at 678-235-5460, or shoot Gary an email at Gary.Massey@MasseyandCompanyCPA.com.  You can also contact us via our website.


Visit our firm’s YouTube Channel!



Founded by Gary Massey, Massey and Company is a boutique, Atlanta-based CPA  firm serving the needs of small businesses and their owners. We handle tax matters, IRS controversy, tax debts, back taxes, bookkeeping, and accounting. Our offices are in the Buckhead neighborhood of Atlanta and we welcome face-to-face visits
Gary Massey, CPA
Massey and Company CPA
P.O. Box 421396, Atlanta, GA  30342
Massey and Company

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