encpaswp, Author at Evans Nelson & Company CPAs

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So far encpaswp has created 64 blog entries.

Business Owner’s Boot Camp- Nov. 5

IRS Wants Money, a Reno CPA Can Help

[youtube]http://www.youtube.com/watch?v=8rftkxbK5j0[/youtube]

Whether it’s back taxes, money owed following an audit, or taxes due from the current year, owing money to the IRS can have devastating repercussions if left unpaid. The IRS has the right to place levies and liens against your property to insure tax repayment. This could lead to seizure of your home, automobile, or bank account with serious effects on your credit. When the IRS wants money, there are several options available. There are many ways a Reno CPA can help.

Notice of Tax Due

When an individual doesn’t pay the total tax amount due to the IRS by the annual filing date, they will receive a “Notice of Tax Due” letter. Within a few months, the debt will be in collections status and penalty fees will continue to add up. It is important to act quickly when you owe taxes to the IRS. A person who doesn’t agree with the amount stated has the right to ask for an assessment by an IRS manager. Copies of bank statements, receipts, and other finance related records will be needed for the hearing. Many taxpayers choose to hire a CPA to represent them at this point.

Finding a Qualified CPA

Retaining the services of a Certified Public Accountant can be very beneficial when you owe tax money to the IRS. Not all CPAs are qualified to represent taxpayers during the IRS collection process so it’s important to choose the right one. Beware of tax debt relief scams that may end up costing you even more money in the long run. Look for a CPA that specializes in working with the IRS on the taxpayer’s behalf. Read client reviews and look into their previous case history if possible before deciding to hire a professional. The right Reno CPA can offer sound advice and get the best IRS payment deal possible.

What to Expect from a Reno CPA

The first thing a CPA will do is discuss the available options. An “offer in compromise” is usually the best strategy. This allows the taxpayer to make a settlement with the IRS and pay less than the total tax amount. The CPA will help you decide on the best plan of action and will make sure it is executed correctly. He or she may file necessary paperwork with the IRS and will represent you in meetings with IRS agents. The CPA will also assist with appeals, hearings, or audits that may be required to help lower the tax amount you must pay.

The IRS can be brutal when it comes to collecting taxes that are owed. Doing nothing when you owe money to the IRS can lead to wage garnishments, frozen bank accounts, and the loss of your home. There are several options available to pay back the tax money owed to the IRS. A qualified Reno CPA can help you make the best decision and can even reduce the amount you owe. Hiring a Reno CPA also brings peace of mind. It’s easier to be confident when there’s a knowledgeable, experienced professional working for you.

IRS Wants Money, a Reno CPA Can Helpencpaswp2016-09-22T16:53:01-07:00

Is a Roth IRA Good or Bad?

[youtube]http://www.youtube.com/watch?v=He76DTgDVAw[/youtube]

Like a knife, a Roth IRA is neither inherently good nor inherently bad. In the hands of a thug, a knife can be a deadly weapon. In the hands of a skilled surgeon, a knife is a life-saving device!

Roth IRAs are a special type of individual retirement account (IRA). When “traditional” IRAs were originally made available, it was on a tax-deductible basis. You could contribute up to $3,000 and if you were not participating in another retirement plan or did not make too much money, you could deduct the $3,000 on your tax return.

For 2010 and 2011, the amounts are $5,000 for people under 50 years old and $6,000 if you are 50 or older. If you are a participant in another retirement plan, you cannot contribute to a normal IRA if you make more than $109,000 in AGI (married filing jointly), or $66,000 (single). In a Roth IRA, you cannot contribute if you make more than $177,000 in AGI (MFJ) or $120,000 (single).

Under a Roth IRA, the difference is that these contributions are NOT tax deductible. The tradeoff is that if you meet certain conditions, such as holding the account for at least five years, then the increase in value of the account (interest, dividends, and capital gains) are ALSO not taxable!

Generally, the younger you are, the better it is to start putting into a Roth. The number of years of tax-free earnings will far outweigh the benefit of a traditional IRA. Conversely, the older you are, the less advantageous the few years of tax-free earnings will be. Your income tax bracket also comes into play here. If you are going from a high income tax bracket in your earning years and into a low one in your retirement years, perhaps the deferral is not as attractive.

In 2010, there was a big frenzy to convert traditional IRAs to Roth IRAs. The government was putting this forth as a taxing measure to offset some spending. If you converted to a Roth IRA, be sure to speak with a tax advisor to get the best tax treatment on the conversion.

My biggest concern over Roth IRAs is what I like to call the “Social Security dilemma.” They TOLD us that Social Security would never be taxed, until they needed the revenue from it! I fear that the same thing will happen to Roth IRAs. That they will not allow the tax deduction up front, but will later decide that Roths were a “bad investment” and decide to tax the earnings down the road!

For all of your investment, retirement and financial questions make sure to contact a trusted and experienced financial advisor.

Reno’s Best CPA,

Tim Nelson

Is a Roth IRA Good or Bad?encpaswp2016-09-22T16:39:47-07:00

A CPA Helps Business Owners Understand Payroll Taxes

[youtube]http://www.youtube.com/watch?v=6TvEytuastg&feature=youtu.be[/youtube]

Payroll taxes can be a headache for business owners. Employers are required to withhold some types of payroll taxes from an employee’s paycheck. Some payroll taxes must be paid by both the business owner and the employee, while some are the responsibility of the business owner alone. Along with understanding the different types of payroll taxes, employers must stay up-to-date on the amount of each tax, as well as the most current legislation regarding taxes. Many business owners consult a Reno CPA to make it easier.

What Are Payroll Taxes?

There are federal and state payroll taxes. A CPA can help business owners understand both types, but state payroll taxes usually create more problems for employers because the requirements are different depending on the location. In Nevada, there are no state income taxes. Individuals and business owners are only required to pay federal income taxes, social security tax, and Medicare. Like most states, Nevada does have an unemployment tax that business owners must pay. Nevada also requires many employers to pay an additional payroll tax, known as the Modified Business Tax.

Federal Payroll Taxes

The amount of federal income tax that a business owner takes out of an employee’s paycheck is determined by an IRS W-4 form. Employers are required to have every employee complete a W-4. Generally, social security and Medicare taxes (FICA) are shared equally by the employer and the employee. But in 2011, the employee tax contribution rate was lowered to 4.2% for social security. Business owners are still required to pay 6.2% on all wages less than $106,800. Medicare tax rates are still 1.45% for both parties. A CPA can keep business owners stay informed about current tax rates.

Unemployment Taxes

Unemployment taxes are collected by the federal government, as well as individual state governments, to fund the unemployment program. Most business owners are required to pay unemployment taxes by filing a Form 940 with the IRS. As of July 1, 2011, the federal unemployment tax rate is 6%, but a credit of 5.4% is available for employers who pay state unemployment taxes. In Nevada, the state unemployment tax is referred to as unemployment insurance tax, or UI tax. Calculating the UI tax rate depends on several factors that are best explained by a Nevada CPA.

UI Tax Rate

Any business owner in Nevada who pays at least $225 in wages within one calendar quarter is subject to UI taxes. The amount of the tax is a percentage of every employee’s wages, up to $26,400 (2012 wage limit). New businesses pay 2.95% for the first 14 to 17 quarters in operation. After this period, the UI tax rate is determined by Nevada’s ‘experience rating.’ Depending on how much a business pays in UI taxes and the unemployment benefits its employees receive, the UI tax rate can range from 0.25% to 5.4% of the total taxable wages the business has paid.

Modified Business Tax

On October 1, 2003, the state of Nevada made it a requirement for business owners to also pay an excise tax on their paid wages. The Modified Business Tax is a quarterly payroll tax based on an employer’s gross wages and paid to the Nevada Department of Taxation. This tax is in addition to the UI tax that is paid to the Employment Security Commission. The current Modified Business Tax rate is 0.63%, and there are no wage limits or caps to benefit the business owner. There are deductions available to reduce the tax. Most of these credits are associated with health care payments.

Many business owners are unsure of the legislation concerning payroll taxes, but failing to comply with state and federal tax laws can be detrimental to a company. An experienced Nevada CPA is the best resource for learning more about federal payroll taxes, as well as current information on the UI and Modified Business taxes.

Reno’s Best CPA,

Tim Nelson

A CPA Helps Business Owners Understand Payroll Taxesencpaswp2016-09-22T16:33:50-07:00

A Certified Public Accountant in Reno Can Help You See the Big Picture

[youtube]http://www.youtube.com/watch?v=lOiL4NV2xFo[/youtube]

Small business owners have a lot of tax filing requirements that have to be met, from filling out specific forms to keeping thorough records on everything. At times, the whole process can be very frustrating. It is easy to become fixated on one issue as you try to work things out, and it can quickly become problematic if you cannot determine how to make numbers match up or if there are pieces of the puzzle missing. Small business financial consulting with a certified public accountant in Reno is a great way to relieve the stress and make sure everything is filed correctly.

The Technical Help

One of the most important advantages of having a certified public accountant for financial consulting is that they take over the tedious, frustrating work of crunching the numbers and keeping expenses and profits organized. This allows small business owners to focus on more important things, like running their businesses. Whereas keeping up with things like this can be very frustrating for some individuals, CPAs are trained to do it, so it’s second nature to them. As long as they’re provided with the data, they can keep track of it in order to show the important information a business needs for tax preparation and for the day to day practices of running a business.

Expert Advice

Another important service a certified public accountant provides is avoiding audits. While a CPA can’t guarantee you won’t be audited, they can make sure your tax papers are all correct and error-free. This is one aspect of ensuring that you’re not targeted for an audit by the IRS. They also have the unique ability of looking at the entire financial picture rather than simply focusing on just one aspect. This is priceless, because they can use the information they receive to give you advice about the way your business is performing and different moves you can take to improve profits or reduce expenses.

Communication

Finally, with small business financial accounting in Reno, a certified public accountant can help you fully understand the numbers and what they mean. This gives you a unique advantage in business, and it can actually help improve your business. When you communicate with your CPA, you can learn a lot, without having to do the tedious job that your CPA is handling for you.

When it comes to small business finances, it’s more than just saving receipts and adding up profits. Having a CPA can help ensure that your numbers are thoroughly organized and that your business is on the up and up with the IRS.

Reno’s Best CPA,

Tim Nelson

A Certified Public Accountant in Reno Can Help You See the Big Pictureencpaswp2016-09-22T16:31:38-07:00

Reno Tax Preparation Requires Cooperation Between CPA And Client

[youtube]http://www.youtube.com/watch?v=g2thwedROxQ[/youtube]

A Reno CPA or certified public accountant is a huge help to individuals and businesses when it comes time for filing taxes. However, in order for the CPA and client relationship to be successful, communication is imperative. By understanding how communication works best between a CPA and his or her client, you can make sure your relationship with your CPA is solid. In addition, this helps to ensure that filing taxes, keeping records, and all other processes are easier and more accurate.

Don’t Be Afraid to Ask Questions

One of the best methods of communication is asking questions. As a client, if you are unsure of a specific process or you do not know why certain results are the way they are you can ask your CPA to explain it to you. Things like tax preparation, expense records, and loss charts can be very confusing for someone who doesn’t work with those numbers every day. A great accountant will take the time to explain what he or she is doing and why things have to be completed a certain way. Just because you’re not doing the tax preparation or other processes yourself, doesn’t mean you shouldn’t be able to understand what’s happening.

Reports and Information

If there’s something a CPA knows about, it’s keeping records. A great certified public accountant will record everything and provide reports and information to you regarding the processes he or she is going through in order to file your taxes or keep up with your business records. This will allow you to examine the processes yourself, and keep your own records for those processes. It’s also very important for you to keep records and provide your CPA with information as well. Keeping receipts and transaction logs of expenses will allow your CPA to prepare your taxes in the most accurate way. This ensures that your taxes are paid correctly and that you’re on an even ground with the IRS.

Why a CPA is the Best Choice

In addition to learning how to prepare taxes to begin with, a CPA will spend hours each year learning new information about laws that have changed, new stipulations for tax preparation and so much more. Most individuals don’t have the time to spend themselves learning these things, and trusting a professional is the best choice. A qualified CPA understands tax laws easily and in-depth, so they can make sure your taxes are filed correctly and accurately. In the same way that you’d hire an expert cake decorator to make sure your wedding cake is perfect, hiring a CPA ensures that your taxes are filed perfectly.

Overall, by having a great relationship with your Reno CPA, you can be sure that your tax preparation is done accurately and that nothing has been missed. It’s important to trust your accountant and communication is the best way to build that trust.

Reno Tax Preparation Requires Cooperation Between CPA And Clientencpaswp2016-09-22T16:29:02-07:00

Ask A Reno CPA: When Is Online Income Taxable?

Hi there,

I have seen many articles about the amount of home-based online businesses that are started up each month and there are many more articles about how big Facebook and other social platforms are getting and how people are making money on them. The problem is there is sometimes a blur between what types of online behavior are taxable and what are not.

Online Garage Sales

For example, if you are having an online garage sale, like selling some items on Craigslist or other such sites, you usually do not have to report sales. This is usually true if you sold the item for less than your cost.

Selling Appreciated Assets

However, if you are selling appreciated assets like paintings, antiques or collectibles and you are selling the item for more than your cost, you usually have to report the transaction as a reportable gain.

Online Businesses or Reoccurring Sales

There are also individuals who either have an online business or have taken the garage sale theory to the next step by buying and reselling items. Any time you may be seen as running a business, especially with how blurry the line is online, you should contact a Reno Certified Public Accountant.

The last thing you want to do is get into tax trouble because of your actions online. Remember when you are making money you should always think about the potential tax implications. When in doubt, ask a Reno CPA about the situation. They will be able to tell you whether you owe taxes and, if so, they will likely be able to help you find deductions.

If you have further questions about this topic you can read more on the Internal Revenue Services’ Website: http://www.irs.gov/businesses/small/industries/article/0,,id=209314,00.html or you can contact Evans Nelson & Company CPAs today. (Contact us online or call 775-825-6008)

Reno’s Best CPA,

Tim Nelson

Ask A Reno CPA: When Is Online Income Taxable?encpaswp2016-09-22T16:13:50-07:00

Business Consulting | Start Up Businesses

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Have you recently opened a business? Are you starting to find some holes, or need help in your processes and aren’t sure how to fix them? A Reno CPA can help you find the best ways to ensure your business adapts to all rapidly changing needs a new business can go through.

Meeting with your CPA quarterly can keep you on track too. Are you aware you have to pay income taxes on an individual basis for your business earnings? What do you need to do with a person who is helping you out–should they be an employee or a general contractor? Understanding the advantages and disadvantages of both will help you make the best decision for your business—and bottom line.

Evans Nelson & Company CPAs is here to help you with these kinds of questions, decisions and choices. Our business experience and knowledge can help you ensure your new business is financially sound with smart choices that will better enable you to manage your business instead of worry about it.

Say it’s Dec 28th and you realize you have a huge tax liability. What can do you do to avoid paying this? Should you delay income, spend more income, or increase your expenditures before the end of the year to save money? Purchasing capital equipment, or a computer you need may help to actually save money, and help keep your business financially sound.

Many new business owners may not know these effective ways to save money, minimize your tax liability, and many other things that can affect the business long and short term, tax wise and financially. Certified Public Accountants can help businesses that have gotten started but really don’t have a good handle on where they can save money and avoid problems. Reno CPAs are here to help move your business forward to that next level of success.

Business Consulting | Start Up Businessesencpaswp2016-09-22T16:08:55-07:00

Elections & Tax Law Changes

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I often hear people say “Tax laws are constantly changing! How can I protect my business? How can I even keep up with how it will impact my bottom line?”

One of the constants in life is change…and you can be sure there will be constant tax law changes as well! How can you keep up with them all? What kind of impact does an election year have on tax laws?

A Reno CPA or certified public accountant is a huge help to individuals and businesses when dealing with tax law changes. After all, it’s our business to know the information that can help you pay the least amount of taxes and use all the tax advantages in the IRS tax code.

We understand how difficult it can be with all the constant IRS tax code and tax law changes, but at Evans Nelson CPAs, we keep up with tax law changes. Certified Public Accountants are required by law to complete a certain number of Continuing Education classes and seminars. At Evans Nelson, every one of our CPAs goes well beyond those minimum requirements, along with other research to stay informed. It’s our business to advise you and you deserve far more than just minimum requirements.

Whether it’s proposed changes investments in capital equipment–can it be all deducted in the first year–to health insurance deductions, to changes in business taxes, or personal write offs, tax law changes can affect when and how you may want to take certain actions. We help guide you with sound advice based on information from the IRS and our experience and understanding of how these tax law changes will affect your individual circumstances.

Simply consulting for an hour or two with your Reno CPA can save you 10, 20 or even more hours of research and frustration trying to determine what is best for your business, and also help you find the best ways to protect it.

So save yourself the struggle and time consuming research by hiring a professional. Evans Nelson stays informed, so you can focus on your passions.

Elections & Tax Law Changesencpaswp2016-09-22T16:02:27-07:00

Starting Your New Business

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Are you starting a new business but need some direction? Many potential and new business owners aren’t sure what questions to even ask!

Starting a new business can be exciting adventure or a wide awake nightmare. Think of it as a journey to a place you’ve never been before, while getting there in a borrowed car.

You can try to wing it, maybe jump in the car and just drive. But where do you end up when you don’t have a map to follow? Taking the wrong turn can be painful. Do you really understand the tax consequences of some of the new business choices you are thinking of making?

You may have driven a car before, or even owned another business, but learning and getting answers to questions you should ask before you start, or even while you are on your way, help make any journey (or business) more fun and productive.

There are many frequently asked questions potential and new business owners ask, such as “What business should I choose?” and “What is a business plan and why do I need one?” with plenty of standard answers and advice.

But what about the questions new business owners should ask when they are just starting out? “How much should I pay myself” is a frequently asked question, but the question you should ask is “How should I pay myself?” Or even “Should I pay myself?” How you compensate yourself can have tax ramifications that may be delayed, avoided or eliminated if the propershould askquestions are asked beforehand.

Choosing the right entity during the development stage of your new business can have huge tax implications in the future. A CPA can help you determine the best choice for your business and situation. At Evans Nelson, we have several members of our staff with the business background you need to help inform you of the choices and alternatives. We know what the should ask questions are; determining those answers can help save you valuable time and money!

Get a map for your next adventure. Talk to a Reno CPA with small business consulting experience before starting your new business, ask those frequently asked questions, and be open to the should ask questions–they can help you from getting lost!

Starting Your New Businessencpaswp2016-09-22T15:46:16-07:00

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