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Just before Congress recessed for its August break, a package of tax extenders was approved by the Senate Finance Committee (SFC). The House and Senate both struggled to find ways to pay for a multi-year federal highway and transportation spending bill, and disagreed over the extent of cuts to the IRS's fiscal year (FY) 2015 budget. Congress did not, however, take action on proposals to allow small businesses to reimburse employees for health insurance costs.


Preliminary information from the 2015 filing season shows a mixed bag of success and failures for the IRS. The IRS successfully processed returns and issued refunds, taking into account new requirements under the Affordable Care Act. At the same time, taxpayers experienced significant difficulties in contacting the IRS and tax-related identity theft increased compared to last year.


Small business tax reform was the topic of two Congressional hearings in July. House and Senate lawmakers heard from small business owners and leaders in the tax and accounting area about concerns over tax complexity, compliance, and penalties. After the hearings, the chair of the Senate Small Business Committee said that he is moving forward with a small business tax compliance reform bill.


An S corporation may own an interest in another business entity. An S corporation can be a member of an affiliated group by owning 80 percent or more of the stock of a C corporation. The group then can elect to file on a consolidated basis, if other affiliated group rules are met. But the S corporation itself cannot join the consolidated group.


Employers generally withhold from wages by way of the wage-bracket or percentage method (Code Sec. 3402(b) and Code Sec. 3402(c)). However, an employee may request that the amount of tax withheld by the employer from the employee's wages be computed on the basis of the part-year employment method (Reg. §31.3402(h)(4)-1(c)(1)). Under this method, an individual who is employed no more than 245 days in the aggregate during a calendar year may request that the employer withhold on the basis of the part-year employment method to prevent overwithholding. Under this method, the amount of tax to be withheld is determined as if the wages paid to a part-year employee were spread evenly over the calendar year, whether or not the employee actually was employed during all of that period.


As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals, businesses and other taxpayers for the month of August 2015.


Welcome

At Gibbons & Kawash, A.C. our focus is responding to your needs and exceeding your expectations. We combine broad technical knowledge developed from years of experience with an entrepreneurial approach to problem-solving to help our clients meet all the challenges before them. An extensive library of accounting, auditing, and tax planning materials and the latest in state-of-the-art technology are valuable tools in our development of innovative solutions. But perhaps the most important element in our approach is the personalized service that enables us to develop and maintain an in-depth knowledge of your business. Our professionals take the time to listen and acquire a thorough understanding of your business needs.

Firm News


Business LoansAre You Aware of Your SALT Liabilities?

Companies that operate in multiple states likely owe some state and local taxes (SALT) outside their home state. But many small businesses are unaware of their SALT liabilities. This article explores the concept of nexus — the degree of business activity that must be present in a state before a business is considered to have a presence there and becomes subject to that state’s taxing jurisdiction.

529Understanding the Net Investment Income Tax

Homeowners putting up a “For sale” sign on their lawn this year should make sure they understand the 3.8% net investment income tax (NIIT) that applies to profits on some home sales. This article explains whom the tax affects, triggering events and strategies to reduce or eliminate the tax.

Crime Scene

How to Meet the Challenges of Managing a Family Business

Owners of family businesses face unique challenges that nonfamily-business owners don’t have to worry about. These often arise from the dynamics of family relationships and the need to transfer these into the business environment. This article discusses the importance of setting boundaries and how drafting a family business “constitution” can ward off problems before they occur. 

Indentity Theft

Umbrella Insurance Policies Guard Against the Unexpected

A $1 million or higher legal judgment could lead to financial ruin for many families — and affluent families with a large net worth are at particular risk. In today’s litigious society, it’s smart to guard against this kind of financial catastrophe by purchasing a personal liability umbrella policy. This article describes what umbrella policies cover and their unique characteristics.

A History Of Service

Over 20 years ago, our firm was founded on a commitment to provide clients with the highest quality services and professional guidance. That commitment remains paramount, and is deeply rooted in every aspect of our practice. It is the reason Gibbons & Kawash has become one of the area's leading accounting and consulting firms.

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