Accounting & Tax Info

This section contains accounting and tax articles based on frequent areas of client inquiries listed by topic in alphabetical order. We hope you find it informative. We add new information to this area on a frequent basis, so be sure to check back frequently.

All articles are alphabetized by subject matter contained in the article for easy location. Also, use our search criteria on the menu bar to help you find what you are looking for.

Accounting Methods, Changes in This article concerns information regarding changes in accounting methods. An accounting method is a set of rules used to determine when and how income and expenses are reported.

Accounting Methods, Permissable This article discusses information on permissible accounting methods. An accounting method is a set of rules used to determine when and how income and expenses are reported.

Employee or Independent Contractor - How do you determine whether a worker is an employee or independent contractor? Establishing the employment status of workers is vitally important as the result dictates whether an employer will have employment tax and income tax withholding, deposit, and reporting obligations. This article discusses some of the guidelines.

IRS Audit Proceedures - Receiving a letter from the IRS indicating that your tax return has been selected for audit can be a scary situation. So, read this article to understand IRS audit proceedures and your rights and responsibilities.

IRS Audit Proceedures for Corporations Checklist - In recent years, the IRS has shifted the focus of its audits to medium and large size corporations. Because of this increased scrutiny, it is our recommendation that you develop a strategy in the event your corporation is the subject of an IRS audit. Effective management of an IRS audit begins with pre-audit planning

Penalties That Apply on Late Filed Tax Returns and Tax Returns With a Balance Due - It is important to file your tax returns by April 15th, regardless of whether you include payment of the balances due, as the IRS and state tax authorities impose substantial penalties for late filing and late payment of tax.

Reasonable Compensation - What exactly does "reasonable compensation" mean as defined by IRS? This article discusses the issues around this term and the significance of this concept as it relates to the business owner.

Reasonable Compensation Applicable to S-Corporations Compliance Initiative Launced by IRS - The study, carried out under the National Research Program (NRP), would involve 5,000 randomly selected S corporation returns from tax years 2003 and 2004.

Section 125 Cafeterial Plans - The following is information about the tax advantages of offering a cafeteria plan to your employees and for a description of the different types of cafeteria plans available for adoption by your company.

Should I incorporate my business in Delaware or Nevada? It is save me any taxes? You have probably heard this before. This articles discusses the pros and cons.

State nexus issues related to income, sales and use taxes. States are becoming more aggressive in asserting when a seller of products or services has tax filing obligations within that state. This article will give you and overview of the topic.

Tax Deductions Often Overlooked - Check this list to make sure you are getting all the deductions you are entitled to