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“This one click will release torrents of cash flow today!” Filing season can be confusing. Without social media posts and hashtags providing another layer of mental clutter. Solution? Pay attention to warnings from the IRS about bogus help. Shield your business through education. Which begins right now! Dangers of Social Media Tax Advice for Free For many conservative small to mid-sized business owners, false information on TikTok isn’t new. But other Big Tech platforms are just as guilty. Normally, it won’t cause significant harm if followed. Unless the advice leads to a need for tax resolution services. Beyond owing the Internal Revenue Service (IRS) cash, large civil and criminal penalties are also possible. Tarnishing your hard-earned reputation. Also consider that the average first-year failure rate of small businesses is 21.9 %. This avoidable situation only increases the likelihood of shuttering your doors. Two suppliers of inaccurate tax tips: Scammers Attention-seekers Cyber-literate criminals are ultimately seeking to steal your identity. An increasingly likely outcome for many Americans. How common? In 2022, the FTC saw over 1.43 million cases of this theft. If you or someone you know has been a victim, describing it as frustrating is an understatement. But not every misleading information spreader is nefarious. Some marketers use what’s called “clickbait” to draw your eyes to their content. Cutting through all the online noise. However, its widespread use doesn’t equate to clear-cut unethical behavior. I see this falling into the “bit exaggerated” category. I never like having to tell clients that their excitement is misplaced. Seeing the shift from smile to frown is difficult. Schemes to avoid: Form W-2 Form 8944 Let’s zero in more closely for a minute. W-2 Scammers will tell you to falsify: Income Withholding Employer They claim the e-file withholdings will generate up to five figures. A bold claim. Resist it. Here’s why. The IRS will verify your W-2 figures. Variations: Fraudulent Form 7202 Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals. Here, a credit is promised based upon status as an employee. Instead of your actual status as self-employed. One major detail rules this one out. It was only available for 2020 and 2021 tax years. Moving on. Fraudulent Schedule H Household Employment Taxes. Also disregard this ploy. It deals with a refund sought from sick and family medical leave wages. For made up employees. Yikes! Resist the temptation. And keep a clear conscience. Form 8944 Preparer e-file Hardship Waiver Request. Unless you’re a tax pro, this form shouldn’t be in your return. It allows professionals to file by paper. It won’t magically deliver a refund in the mail. Prevent a $5000 penalty and criminal prosecution by resisting any urge for dishonesty. I know our economic times aren’t the best. But don’t risk your family’s future. There’s a better way. Business Tax Services Are a Better Path Forward A tip for tax advice online. Free doesn’t always equate to “correct or helpful.” That’s what I’ll quickly cover before sharing authentic solutions to maintain good standing with the IRS. A Final Word of Caution Sometimes you’ll see tax suggestions that are accurate at the federal level. But what’s missing is funds owed to the state. I’ve seen some cases where these unmentioned state taxes negate any federal savings. Suspicious omissions. Which usually means that your best interest isn’t being factored in. Now we can get into reputable sources of tax guidance. Trusted Aid for Your SMB IRS Commissioner Danny Werfel states, “There are many ways to get good tax information, including @irsnews on social media and from trusted tax professionals. But people should be careful who they’re following on social media for tax advice.” The government agency suggests their online hub of IRS.gov for verifying what you come across. Specifically: Double-checking facts Filling out forms correctly Locating other federal websites Going directly to the source is always warranted. They furnish good advice. But still not the best. Your safest bet will involve a financial investment. Handing off tax preparation to a pro . The top reason to do so is scalability. Insulating your operation through expansion. Furthering your practical legacy to children and grandchildren. Practical in terms of financial stability. Since the goal every tax season is to break even, not loan the government money, outsourcing is effective. Extra Evidence for Adding Expertise Beyond growth, you can enjoy other perks. Additional ways their protective umbrella helps your business: Decrease risk of errors or penalties Increase deductions/credits Ensure compliance with complex tax laws Provide direction for future filings Tax prep software isn’t perfect. Neither are the companies that provide it. Despite these true statements, it still offers benefits. Particularly in the hands of a tax professional. Because they should be double checking everything by hand. Your state has credits and deductions it chooses not to advertise. A hired expert can find out if you qualify. Reducing any tax burden. Neither the Internal Revenue Code (IRC) or Internal Revenue Manual (IRM) are considered light reading. You can rest easy knowing that you may never need to crack them open. That’s something your outsourced help is responsible for. They are intimately familiar with the specifics. Even if you owe this year, it doesn’t mean you always will. An expert guide assists in the creation and exercise of your strategic plan. Speaking of those proficient in this area, allow me to wrap up. Blue Slate Accounting Tax Advice for Small and Mid-Sized Businesses Something is missing from the field. A human approach to business tax services. Zelienople, PA is our home, but we’ve worked with SMBs across this great nation. Whether that’s aiding their successful filing or dealing with an IRS audit. Our small, but dedicated team of certified tax professionals and an IRS Enrolled Agent assist with: Federal, state, and local taxes Navigating tax regulations Increasing money you’re legally entitled to Limiting any tax burden Quarterly filings We can clean up the debacle of that unorganized box of tax documents. For a monthly fee, we can counsel you on deductions and breaks to use next time. Your return will be double-checked by hand for ultimate accuracy. Because we strive for excellence just like you do. Offload your business tax needs today. And take the first step towards reclaiming your joy and happiness!

You probably don’t have a “Going Out of Business” sign on your storefront or website. But you might as well. Poor management of cash flow is like a slow bleed of your capital. That could spell doom for your operation. Unless you take a purposeful approach to its financial health. That’s why you’re here, to learn the basics. I’ll be your guide as we shore up any vulnerability right now. Effects of Small Business Cash Flow Problems You need a handle on small business cash flow . Confusion reigns when processes are disconnected. Lean Six Sigma exists because of the abundance of gaps in established systems. A term you’ll hear when you learn about this technique is the “swiss-cheese effect.” In simple terms, it says that an incomplete process will continue to cause problems until someone addresses it. Closing the “hole” in the cheese. The trend towards digital contributes another wrinkle. Because your business has various online tools, uniform processes are even harder to build. And follow. Take invoicing for example. A difference between sales and what you invoice has undesirable consequences: Bill disputes Payment delays Discount requests Outstanding debt compounds as the months and years go by. And without realizing it, your business is now teetering on the edge of a cliff. One shove from a hit to the economy could be enough to have you free falling. Payroll can also take a hit. In a time where staff loyalty is low among certain age demographics, you don’t want this. The fact that you’re a wonderful boss won’t be enough to keep them around. Because they have mouths to feed too. Possible Scenarios When Cash Flow is Restricted Consider your business as a river for a minute. A steady flow of cash allows you to reinvest. When it gets stopped up, the different areas of your operation experience a barrenness. And to take the analogy further, a desert forms where previously there was lush vegetation. Outcomes when it’s lacking: Inability to make informed financial decisions moving forward Higher likelihood of your business closing down Unpredictability in the long-term prevents you from adapting to market changes. Making it more difficult to achieve a competitive advantage. Your business and marketing plans may be solid. But they aren’t enough to compensate for unwise decision-making. When your picture of financial vitality is blurred, risk grows. Add those two together and you have a toxic recipe. If you sell services, invoicing and identifying revenue becomes harder over product-based ventures. When you’re the main provider for your family, budgeting also becomes difficult. Leading to overspending. Businesses are more likely to fold because of low liquidity. Poor management or a flawed model aren’t normally to blame. Factoring in the incalculable hours you invest in your operation; this outcome is painful. Here’s the good news. It can be avoided. That’s where we’re headed next. Become a Small Business With High Cash Flow Now, I’ll show what having an accurate forecast of cash flow looks like. Your leadership team will have a better grasp of margin. Leading to a higher level of precision in predicting the flow of cash. Resulting in a boost for both short and long-term choices. There’s another perk as well. Satisfaction among your customers will rise due to their self-sufficiency. Namely in resolving their own inquiries. Which leads me to some essentials you’ll need in your toolbox. Whether you’re hearing this for the first time or 10 th , it’s worth hearing again. Accounting basics: Open a separate business bank account Purchase accounting software Set up backup records Schedule a review every month Commingling funds will attract unwanted attention from the Internal Revenue Service. Even though it’s a common mistake new business owners make. Unless you started an accounting firm, numbers may not be your forte. Aid your success by not allowing yourself to dip into personal funds when revenue slows. Your spouse will thank you. As will your children when it’s time to feed their every growing bodies. Purchasing technology to streamline your record keeping is smart. Even if you hire a professional to manage it, the benefits far outweigh the cost. Compensation for Handing Off Management of Your Books I understand that you’re busy. But gaining insights from periodic review of your financials will return value to your workday. Plus, you’ll feel better about the direction you’re headed. Because you’ll no longer be wandering aimlessly. Making uninformed decisions which increase risk to your longevity. Reasons to hand off bookkeeping: Provides clear snapshot of your fiscal health Gives back more time for revenue generation Helps clean up past financial recording disasters Allows you to sample outsourcing for your business You need to eventually move away from working in your business. And shift to working on it. There’s no shortage of tasks on your calendar. Have you audited them to find out which make you money and which ones don’t? You may be surprised once you do. Focus on CEO tasks and stagnation will stay far away. “Outsourcing” unfairly receives criticism. Everyone has been disappointed by offshore call centers that can’t solve your issue. I’ll give you that. But don’t write it off completely. Start in your home by hiring the local neighborhood kid to mow your lawn. Then consider a house cleaning service. Before you know it, you’ll enjoy the rewards in your family. Then apply this same logic to your venture. To conclude, I’ll give you an opportunity to put this into practice today. Blue Slate Accounting Outsourced Bookkeeper Something is missing from the bookkeeping field. A human approach to personalized business services. Zelienople, PA is our home, but we’ve worked with small to mid-sized businesses across this great nation. Aiding their pursuit of a financially healthy venture. Expect tailored recording from your personal Blue Slate Accounting team member: Matching receipts to bank and credit card statements Bank account, credit card, and loan reconciliations Applying customer payments to in-house generated invoices Accounts Receivable tracking and invoicing services, including reminder letters Accounts Payable tracking and bill payment services We provide a quick, realistic weekly snapshot of your cash flow. Allowing you to make informed monetary decisions. Outsource your bookkeeping solutions today. And take the first step towards profitability and contentment in your business.

A dollar doesn’t stretch as well nowadays. Our economy has room for improvement. I know, that’s an understatement. But you can weather the ups and downs by using strategic thinking and embracing change. Alternative revenue streams may be the golden ticket. Determining how to list them during tax season will make their value more apparent. I hope to simplify your proper filing. Let’s begin. What is a Qualified Trade or Business? The qualified trade or business definition can’t be found in the Tax Code. But the standard used by courts comes from Groetzinger, 480 U.S. 23. This determination was made 37 years ago. Dealing with a deduction from a professional gambler. Highlights: Continuous and regular Income or profit focus So, one aspect is the frequency. For example, an on and off foray into the commodities market wouldn’t count. Even though it potentially adds money in your pocket. Another condition deals with profit. Sec. 183 basically says that activity marked by higher revenue than deductions can qualify. If this ratio happens at least three out of five successive years. When the IRS challenges this claim, they use a loss conclusion. Should you find yourself being questioned in this area, nine comprehensive related factors are considered. The IRS website relays how they define the entity. Activity conducted to produce income from either goods or services Your trade or business likely has a main source of revenue. Next, I’ll cover secondary sources. Dealing with Alternate Revenue Streams A revenue stream is taking advantage of a potential or adopting a creative way to produce income. As a business owner, you likely have multiple. Extra income sources for your active trade or business: Expanding your service line Community outreach Membership website Crowdfunding There’s something to be said for specializing in a certain product or service. However, you can tap into new customer bases by broadening what they can buy. Sponsoring local events or a booth at the county fair double as wonderful promotions too. More importantly, you can directly tie new business to these happenings. Once you’re an expert in your field, consider charging for your knowledge in the digital realm. You can provide free advice via a blog or social media. But offer exclusive content to members. Companies like Angel Studios have successfully used crowdfunding as a model. Depending on your industry, it might make sense to test it out. Reasons for Expansion Whether you are self-employed or an SMB owner, having excess capital in 2024 is valuable. It allows you to invest elsewhere or reinvest in your operation. Additional benefits: Greater stability in the market Adapt to changing conditions quicker Unique differentiation from competitors Drives innovation through creative thinking Occasionally the demand for your service may wane. Diversifying your offerings helps balance your overall business health. In the age of AI, this step is important. Switching out your core product in this situation also becomes easier. You won’t have to start from scratch because marketing is already running. The number of solopreneurs multiplied from 2020 to present day. Some were let go, but many left good jobs of their own fruition. Finding the freedom and potential enticing. Standing out in the crowd becomes possible through market research. Find a product or service that your closest competitors are lacking and launch it! Any business owner can become stagnant and face “writer’s block.” Inject fresh thinking and learning through professional development. Your qualified trade or business should include these streams in one tax return. Except when they are under a different registered venture or DBA name. If the latter situation applies, consult a tax professional. They will make sure that you remain in good standing with the IRS. Okay, you’re now clearer on the categorization of your pursuit. Next, I’ll help you when it comes time to file. Filing Requirements for Your Business or Trade Accountants like myself don’t exactly jump for joy when tax reason rolls around. My guess is that you can relate. But understanding your business composition helps when it’s time. Various options: Sole proprietorship/qualified joint venture with your spouse Partnership Corporation Solopreneurs fill out a Schedule C and IRS Form 1040. Filing jointly with a spouse only adds one document to what you’d normally submit to state and federal. Schedule C will list your profits or loss from the applicable tax year. Expect to pay the self-employment tax (15.3%) also. Finally, estimated quarterly payments will need to be sent. Both Form 1065 and Publication 541 detail the constitution of a partnership. It must have two or more members. Plus divide its profits from a “business, financial operation, or venture.” Three types are limited liability, general, and limited. All of them must go beyond splitting expenses. A two person LLC is automatically considered a partnership. As such you’d be expected to file a partnership return. Unless you elected to be taxed as a corporation. If so, file Form 1120 or 1120-S. Your corporation classification will determine the correct one to use. Taxes don’t need to be confusing or create anxiety. All you need is the right guide. Keep reading for the introduction. Blue Slate Accounting Tax Services Company Something is missing from the field. A human approach to personalized tax services. Zelienople, PA is our home, but we’ve worked with businesses and individuals across this great nation. Whether that’s aiding their successful filing or dealing with an IRS audit. Our small, but dedicated team of certified tax professionals and an IRS Enrolled Agent assist with: Federal, state, and local taxes Navigating tax regulations Increasing money you’re legally entitled to Limiting any tax burden Quarterly filings We can clean up the debacle of that unorganized box of tax documents. For a monthly fee, we can counsel you on deductions and breaks to use next time. Your return will be double-checked by hand for ultimate accuracy. Because we strive for excellence just like you do. Offload your personal tax needs today. And take the first step towards reclaiming your joy and happiness!

The latest and greatest. Our society is programmed to desire the “new.” Artificial intelligence (AI) is simply the current installment. And it won’t be the last.  But does it make sense in the tax field? Two popular software providers seem to think so. Come along as I break down how realistic this technology is for your filing needs. Issues With TurboTax and H&R Block AI Tax Assist This past December, H&R Block released a generative AI tax assistant. It’s backed by Microsoft’s Azure OpenAI service. The target market is small business owners, self-employed entrepreneurs, and individuals. Tax areas it helps with: Information Preparation Knowledge It won’t fill out or file your forms, answering questions instead. And apparently your personal tax information won’t be shared with the tool. TechRadar was asked to try it out and found that the prompts it generated were reasonable. Other commercial AI products have been knocked for biased and inaccurate information. This is because the technology has been trained on search information from sources like Google. H&R Block says this isn’t applicable in their case. Using data from The Tax Institute and its 60,000 tax professionals, they aim to present more relevant answers. According to the company’s press release, it’s “backed by H&R Block’s 100% accuracy and maximum refund guarantees.” Only one issue. Both it and TurboTax’s AI product are off to a rocky start. They both have been critiqued for accuracy. Cue the dramatic music. Lawsuit Raises More Concerns Around Tax AI What normally happens if the artificial intelligence can’t find the correct answer? Responses are simply invented. A common problem among current offerings. Experts in the field are concerned that this obstacle may never be solved. Aditya Thadani, VP of Artificial Intelligence Platforms for H&R Block, commented on this topic. “We’re sitting on a lot of really personal, private information. As much as we want to use that to answer questions effectively, we have to continue to find the balance.” Their main competitor TurboTax also launched an AI-powered tool around the same time. It didn’t take long for conflict. In January, Intuit (owner of TurboTax) sued for “misleading marketing.” Charging that H&R Block made false statements on pricing for AI help. Specifically, that TurboTax was significantly more expensive. The company has refuted this claim and is seeking restitution. It’s interesting because both H&R Block and Intuit are currently dealing with the Federal Trade Commission (FTC) surrounding their marketing messaging. It reminds me of two siblings pointing the finger at the other when one knocked over a vase. Next, I’ll share about the outlook of AI’s integration into the tax world. Tax AI is Still Here to Stay Love it or hate it, AI isn’t going anywhere. But that doesn’t mean human tax professionals are obsolete. Far from it. Job security concerns are natural in the case of advanced large language models (LLMs). However, there’s a reason to be hopeful. Namely because most available options are chained. Providers are more worried about lawsuits and negative publicity. Gab AI is one exception. Limitations of the technology: Lacks creativity High costs Amplifies biases Context confusion Whatever guardrails a company sets up for their AI prevent original solutions to problems. When a taxpayer has a unique issue, they can find themselves frustrated. Like the irritation that consumers experience with an outsourced call center who goes off a script. Despite H&R Block’s stated target customer, self-employed individuals may find their AI assistant out of reach. As inflation increases, they must decrease expenses. Seeing this tool as a luxury and thereby unnecessary. Artificial intelligence learns from historical data. And uses inputs from the programmers. ChatGPT is one example, as there are certain prompts it won’t deliver. Namely those of a more conservative worldview. Humans can quickly pick up on the broader context of a situation. AI can miss these subtleties. An unwelcome limitation in decision-making situations. In the fast-paced business landscape, it can slow progress and growth. Constraints of Tax Software and How It Relates to AI Tax software is another example of tech that people trust too much. Expecting it to accurately generate a flawless return the first time. Be careful not to rely too heavily on programmed machinery. Simple returns are best handled by this software. Which doesn’t apply to businesses. The technology also struggles with more involved returns. Examples: Investments Dependents Mortgage Home-based business Even when our customers use these tools, we double check everything to verify correctness . Compliance with the IRS is the reason behind this attention to detail. Tax experts stay up with the evolving U.S. Tax Code. Pivoting and offering the most up-to-date advice. Something lacking from computer models. That’s because it must be entered manually into the algorithm or computer code. With software, you must assume the information includes these updates. But there’s nobody to verify that for you. A tax professional will explain it in real-time while you sit in front of them. Like AI, it doesn’t give you custom solutions either. Once again, chalk it up to a general lack of creativity. Your business is different from a competitor down the street. A cookie cutter output doesn’t help you. But that’s what you get when paying for “value.” In the same vein, tax benefit maximization is another missing piece. Breaks aren’t advertised by the IRS. Same for H&R Block and TurboTax’s products. I want to close by suggesting another course you can take. Blue Slate Accounting Tax Services Company Something is missing from the field. A human approach to personalized tax services. Zelienople, PA is our home, but we’ve worked with businesses and individuals across this great nation. Whether that’s aiding their successful filing or dealing with an IRS audit. Our small, but dedicated team of certified tax professionals and an IRS Enrolled Agent assist with: Federal, state, and local taxes Navigating tax regulations Increasing money you’re legally entitled to Limiting any tax burden Quarterly filings We can clean up the debacle of that unorganized box of tax documents. For a monthly fee, we can counsel you on deductions and breaks to use next time. Your return will be double-checked by hand for ultimate accuracy. Because we strive for excellence just like you do. Offload your personal tax needs today. And take the first step towards reclaiming your joy and happiness!

For years, H&R Block has been identified with tax season. Spending a ton on advertising hasn’t hurt. Recent headlines have placed a stain on this association. I’ll show how this news was a long time coming. Hopefully my professional insights will assist your filing decision for 2024. And beyond. If you’re ready, continue scrolling. H&R Block Software in Hot Water With FTC Per the Federal Trade Commission (FTC), H&R Block planned to, “present an obstacle course of tedious challenges to consumers, pressuring them into overpaying for its products.” They allege an intentional disincentivizing of more affordable options. That’s not all. As a large operation, hurdles to the customer should be uncommon. Making you go through H&R Block customer service seems a bit unnecessary. Downgrading should be a non-contact step. As is the case when you want to upgrade. If you decide to move forward with a lower-priced plan, expect frustration. The system deletes all the tax preparation data you’ve already entered. Really. Time to redo your return. Yahoo! Private companies are free to use legal loopholes. Employing deception puts them in another category, however. Joining TurboTax maker Intuit in scrutiny from the government agency, the company’s response was interesting. Their chief legal officer Dara Redler had the following to say. The service “allows consumers to downgrade to a less-expensive DIY Product via multiple mechanisms while ensuring the preparation of accurate tax returns.” But it’s what they didn’t say that stands out. Namely, a non-attempt to deny the assertions. Potential Outcome Based Off Finding Against Intuit The FTC hasn’t charged H&R Block. Yet. My guess is that those findings will come. And it’s informed by the recent ruling against Intuit. A complaint of this nature follows a certain process. What you’ll see next is a formal hearing in front of a judge. Possible results: Requirement to disclose actual percentage of qualified taxpayers Prohibition against claims of “free” unless everyone qualifies Violation of the FTC Act can lead to a tarnished public image. Couple that with the power of a negative review and you have a formula for disaster. Most companies the size of H&R Block recover. But not all. The marketing departments of corporate America have given the industry a bad name. Disenfranchising countless individuals and families. As was applied to this business unit of Intuit, another outcome is likely. A restriction on misleading facts in relation to: Price Refund Credits/Deductions Accuracy of free service Like my statement on Intuit, just because H&R Block says so, doesn’t make it true. Unfortunately, our society relies too heavily on technology. And the convenience that it breeds. That’s why I educate new clients. Helping them balance its usefulness as a tool without falling victim to its worship. Next, I’d like to touch on additional findings related to H&R Block. Filing H&R Block Taxes Isn't for Everyone 2019 reporting from ProPublica touched on additional trickery. H&R Block free was hidden from online organic searches. Instead directing them to paid tax services for ultimate profit generation. In fact, four of the other twelve Free File Alliance members joined in. Adopting a coding device to keep them out of queries. Telling Google and other search engines not to show the page isn’t illegal. In fact, it’s a step that many websites use to prioritize certain pages. Visitors already on the site could find it. So, what’s the big deal? Here’s why it makes H&R Block look bad. They’d signed a deal to assist lower-income Americans with free options. Outlined terms meant that the IRS wouldn’t create a competing, free online filing tool. From an ethical standpoint, it leaves more to be desired. The company later said that they updated their practices to make discovery easier. And in the same year, legal trouble arrived for the tax preparation giant. In the form of a lawsuit from plaintiffs in California. LA City Attorney Mike Feuer wrote that for years, they were “actively undermining public access to the IRS’s ‘Free File’ program.” COVID Smokescreen or Totally Unrelated? Potentially tied together, H&R Block discreetly left the Alliance during the 2020 pandemic. This was confirmed by the IRS. According to leaders, the decision was merely in the company’s best interests. Fellow tax software provider Intuit departed over the same period. Coincidence? The timing is interesting either way. With the pandemic now behind us, an improved image is still elusive. Taking a zoomed-out look at the company, worrisome trends arise: Fine print contains the detail that only simple returns qualify for free help Questionable advertising doesn’t detail what a simple return looks like Criteria for a straightforward filing is somewhat fluid Instead of transparency and learning from mistakes, their focus appears to be more of the same. Perhaps you’re ready for a change with this year’s filing. An answer for your family lies in personal tax services. Benefits: Accuracy and compliance Maximize your tax benefit Reduce stress and save time Business used to be conducted via a face-to-face interaction. Followed by a handshake. Times have changed. However, there’s no reason why this personal touch can’t make a comeback. With decreasing consumer trust in corporations, it’s probably long overdue. Rediscover trust in the companies you work with. And watch it translate to contentment as you receive value for your loyalty. To conclude, I’ll provide detail on this alternative. Blue Slate Accounting Tax Services Company Something is missing from the field. A human approach to personalized tax services. Zelienople, PA is our home, but we’ve worked with businesses and individuals across this great nation. Whether that’s aiding their successful filing or dealing with an IRS audit. Our small, but dedicated team of certified tax professionals and an IRS Enrolled Agent assist with: Federal, state, and local taxes Navigating tax regulations Increasing money you’re legally entitled to Limiting any tax burden Quarterly filings We can clean up the debacle of that unorganized box of tax documents. For a monthly fee, we can counsel you on deductions and breaks to use next time. Your return will be double-checked by hand for ultimate accuracy. Because we strive for excellence just like you do. Offload your personal tax needs today. And take the first step towards reclaiming your joy and happiness!

On the surface, working with a tax professional may appear tedious. But there’s a purpose behind their requests. Namely, decreasing the risk of an audit. “This is why we make you do it our way.” That’s the unspoken statement I want to explain. Keep moving those eyes down the page. And discover the “why” behind their process. Your business will appreciate it. What Triggers Tax Audit? In the business world, the biggest stressor is a tax audit. IRS scrutiny keeps many owners up at night. Just ask Microsoft executives. How they distributed income and expenses globally caught the attention of our government. And the Y.O.U. (You Owe Me) totals $28.9 billion! They’ve appealed, but there’s no guarantee of mercy. I don’t want your day-to-day being disrupted. Because drawing the ire of IRS agents can put your family’s economic future in limbo. There are certain events that trigger an audit: Failure to report all income Substantial cash deposits Large percentage of foreign assets Running a cash business Commingling funds Audit of investor/business partner Should one be initiated, the tax audit process kicks in. The first document to expect is an “Information Document Request (IDR).” This formal request to examine your records shouldn’t be ignored. Paperwork sought: Books Files Financial papers Electronic records Thanks to the Supreme Court case United States v. Powell, the authorities have limits on their summoning power after issuing an IDR. Checks and balances in action. Here’s the good news. With the IRS now acting as a political weapon, they can’t use this summons to intimidate or punish indiscriminately. Take a moment to celebrate if you’d like. As mentioned before, an answer to their request is still advised. Because the District Court can compel your appearance. Major fines or imprisonment are a possibility with a non-response. I’ve touched on what launches an audit. Next, let’s look at when they occur. How Often Does the IRS Audit? Before a need to search “ tax audit help near me” arises, it’s worth understanding the odds. According to the IRS website, taxpayers with higher income face a greater likelihood of examination. Between 2010 and 2015, those who earned $10 million or more experienced a larger percentage of audit rates. But if you earn less, a random review is still possible. From when you file, they have three years to determine that inspection is warranted. Recent news may equate to an increased risk, however. Tax compliance technology provider Avalara released a report at the end of January. It touches on the Inflation Reduction Act of 2022, which earmarked $80 billion to fund the IRS. With a stated goal to hire 20,000 more agents, including data scientists, you can bet enforcement will only expand. The company’s VP of tax policy states, “Because state budgets aren’t experiencing the same windfalls as they were in the immediate impacts of the pandemic, legislatures will encourage an increase in audits to make up for any lost revenue. Businesses and consumers should all prepare for an uptick in audits in 2024.” Moving on, there are measures you can take to guard against needless analysis. Tax Audit Protection The best tax audit defense is a good offense. And it starts with honesty. That tried and tested attribute your parents raised you to demonstrate. A reputable tax audit accountant will further reinforce this. Resist the urge to speed through or be less than truthful. You are candid with your customers and staff. Maintain this pattern with our own government. It’ll help you sleep better at night. But if you’re preparing them yourself, consider the following: Recheck your math Focus on the details Claim legit deductions Tax software is good for an initial organizing of relevant information. It also allows easy comparison from year to year. Pay attention to the math on capital gains and losses. Double check that the totals in your columns add up correctly. You’d be surprised how many people forget to sign their return. This simple miss can lead to a closer survey by IRS agents. My challenge is to think like an editor. Their attention to detail during review catches typos and other small mistakes. Leading to a better finished product. And in this case, acceptance by federal and state government. Be Meticulous with Your Write Offs You may be a small to mid-sized business owner. Or self-employed. If the latter describes you, listen up. What you write off will likely be scrutinized. Especially the home office expense. Calculation = percentage of your work area in relation to overall square footage. Let’s say it comes to 10%. Now you can deduct that percent of the following: Cell phone dedicated to business Utilities Rent/Mortgage payment Internet And more Along with supplies and advertising, these deductions can aid your bottom line. Especially nice for startups, it still rewards more tenured owners. Should you also use a coworking or office space, talk to your tax professional. For two reasons. Home office must be main place of business Space should exclusively be for business Entrepreneurs need to invest in paid tax services. Not simply thinking like a CEO, but also acting like one. Outsourcing non-revenue generating activities allows them to focus on what they do best. Like scaling the business. Or seeking out investors. Wrapping up, I’ll share your optimum bet for dodging a tax audit penalty. Blue Slate Accounting Tax Resolution Services Company Something is missing from the accounting field. A human approach to business tax services. Zelienople, PA is our home, but we’ve worked with companies and individuals across this great nation. Aiding their arrival back to good standing with the federal and state governments. Our small, but dedicated team of certified tax professionals and an IRS Enrolled Agent assist with: Preparation of unfiled income tax returns Penalty reduction Offers in compromise Payment plans Financial hardship plans Wage garnishment/bank levy releases Audits IRS appeals We can clean up the debacle of that unorganized box of tax documents. For a monthly fee, we can counsel you on deductions and breaks to use next time. Offload your tax resolution needs today. And take the first step towards reclaiming your joy and happiness!

When does free cost you money? Allow me to answer the riddle for you. After you find out that a paid assistant is necessary to achieve the advertised results. During tax season, this is a situation worth avoiding. My goal is to help you discover another way. Join me for news on a major brand. And learn about a better way to file taxes. FTC Intuit TurboTax Opinion Digital marketing isn’t helping the industry recover its already stained image. Of course, this doesn’t mean all advertising and marketing folks are untrustworthy. Far from it. Nevertheless, I need to highlight a recent case. Specifically, a company in hot water with the Federal Trade Commission (FTC). Intuit was found to have deceived consumers with ads that promised free to those who didn’t qualify. The popular maker of TurboTax software violated the FTC Act. Outcome of the finding : Prohibited from claiming “free” unless all consumers qualify Or Must disclose the actual percentage of taxpayers that qualify Additionally, they can’t misrepresent facts on products and services: Price Refund Credits/Deductions Accuracy of unpaid service Here’s what it means for your filing. Just because TurboTax says so, doesn’t make it true. Or another way to say it, “technology is a tool, not a god.” What is advertised as effortless and simple can potentially lead to a need for tax resolution . You don’t want that. Especially considering our current economy. Software can still be helpful during this season though. I’ll touch on perks in the following section. Software Has Its Use Cases Perhaps you’re someone who normally starts your return well in advance. And has plenty of time to collect tax documents. A piece of technology like TurboTax may be sufficient. Advantages: Cost Speed Simplicity Convenience Record-keeping Fast refund Instead of paying for an expert’s time, your only cost is for the software package. Flexibility is another reward for doing it yourself. You can scan and store documents as the year goes on. And file in an hour or less if your return is considered uncomplicated. Choosing the right tool grants you access to support. Plus walks you through the process. Instead of travelling to a physical office, your home becomes the filing center. Allowing you to be more productive in other areas. Such as your family. Or business venture. Comparing year to year returns is a breeze as well. Access is available on your mobile, desktop, or laptop. Giving you an on-the-go reference tool. Set up notifications to track the status of your coveted refund check. As everything is done electronically, you know where you stand. No need to wonder aloud when the government will pay you back. For anyone with a more complex situation, your better bet is personalized tax services . Which I’ll talk about next. A More Accurate Picture via the Personal Touch Technology isn’t bad. It can enhance our ability to thrive as human beings. Be more productive. Cut costs in our businesses. Just don’t rely on it exclusively. Because it doesn’t make up for quality done-by-hand attention. And when you’re dealing with the IRS, details matter. Make tax season a stress-free time with the right professional help . I want to help you compare software to the human variety. Factors to consider when choosing: Complexity of your financial situation Your general tax knowledge Amount of time you want to devote I’ll unpack each one a bit more. Complexity TurboTax is more tailored towards those who have straightforward returns. But as life goes on, relationships are added. Spouse. Children. You might buy a house. Add investments. Start an online business. Reasons for human intervention: Need to itemize Major life events Business owner A divorce. Renting out your home. Either of these situations presents certain rules and tax breaks. If you know about them. When you start a business, you gain access to new deductions. Even during the startup stage, the benefit of expert advice is valuable. Doing so can increase the likelihood of success. Because you’ll have more capital to reinvest elsewhere. Proficiency Those with a gift for numbers aren’t intimidated by what the IRS asks for. But the rest of the population feels otherwise. Don’t take my word for it. Just poll a group of your friends on the subject. Odds are, most of them wish they could fast forward through tax season. Unfortunately, a remote with that ability doesn’t exist. Tax laws also change. Staying current requires following relevant publications. The average American prefers more entertaining reading. One note on available benefits in working with a pro. An IRS Enrolled Agent has passed a comprehensive exam. On the more than 70,000-page federal tax code! No small feat, the government has their stamp of approval on these folks. Giving you confidence in two areas: Reduced chance of an audit Increased likelihood of an accepted return Schedule According to the IRS, it will take you about 13 hours to complete a return. Unless you’re retired, devoting half a day might not be feasible. Especially if you’re a new parent. In which case even finding an extra hour is almost comical. How you spend your most precious asset is up to you. Wrapping up, I’ll provide an alternative to TurboTax and its misleading marketing. Blue Slate Accounting Tax Services Company Something is missing from the field. A human approach to personalized tax services. Zelienople, PA is our home, but we’ve worked with businesses and individuals across this great nation. Whether that’s aiding their successful filing or dealing with an IRS audit. Our small, but dedicated team of certified tax professionals and an IRS Enrolled Agent assist with: Federal, state, and local taxes Navigating tax regulations Increasing money you’re legally entitled to Limiting any tax burden Quarterly filings We can clean up the debacle of that unorganized box of tax documents. For a monthly fee, we can counsel you on deductions and breaks to use next time. Your return will be double-checked by hand for ultimate accuracy. Because we strive for excellence just like you do. Offload your personal tax needs today. And take the first step towards reclaiming your joy and happiness!

Your New Year’s celebration has come and gone. And now you’re facing an annual reality. Tax season. Running between January 1 st and April 15 th , this period can create a bit of anxiety. But it doesn’t need to. Join us as we reveal the benefits of custom tax services. Let’s begin! Understanding Personalized Tax Services Tax preparation software may be useful when you’re single. And young. Simple returns can be handled through this medium. Note that we said simple. But once you start “adulting,” their usefulness can wane. Necessitating another course of action. One that involves trusting another human to manage the required steps. With the ease of internet research and trusted review sites, you are equipped to choose the right partner. Examples of a more complicated tax return: Home-based business Mortgage Dependents Investments Because you want to get all the deductions you can, personalized tax services are a better option. Adding expertise and one-on-one attention gives you greater confidence and security. Both are beneficial, whether you’re the main breadwinner or not. Time is given back. To distribute to your children or spouse. And we all know how invaluable that is. Since you have a better understanding of its relevance, let’s move on to perks. Unlock Rewards with Tailored Tax Solutions Before you can justify outsourcing tax preparation, the opportunity cost must be factored in. We’ll make it much easier by laying out the benefits for you. No need to thank us. Compliance and Accuracy There’s a reason you don’t perform surgery on yourself and pay someone else to. Stick with us on this analogy. It’s because the operation can be delicate or require special training. This same thinking is applicable when dealing with the federal government. The language of compliance is foreign to the uninitiated. And familiar to your IRS Enrolled Agent. Confirmation of this fact comes from the comprehensive test they pass to earn that title. You can bet that the IRS is paying attention to detail. Don’t let them be the only ones. Speaking of checking off proper boxes, professionals support this effort: Decrease risk of errors or penalties Meet tax deadlines and comply with laws The best tax advisors will incorporate technology and double check the work by hand. This combination ensures that your return is truly complete. Every time. Besides relaying assurance as you move on to all your other responsibilities. As an employee, business owner , or family man. Filing correctly the first time will make the rest of 2024 more pleasant. Trust us on that point. Tax Benefit Maximization We have news for you. The government won’t advertise tax breaks that you can use. Unsurprisingly, they aren’t looking to save you money. But that’s okay. You can discover them through a certified tax professional. Ways that they lend a hand: Increase deductions/credits Utilize tax planning strategies Assistance with an audit or dispute Each state has credits and deductions available to taxpayers. Quickly determining whether you qualify is a hallmark of these authorities in their field. The goal is to break even or get a small amount back each year. But with an evolving tax code, it’s not a straightforward process. Change that. Create a plan of attack with experts in this area of government and watch savings grow. Tax resolution services can alleviate the burden you feel while indebted to the IRS. And competence during an audit is also reassuring. Save Time and Reduce Stress Time comes in a limited quantity. And stress is something we always want less of. Combing through filing cabinets and email to find relevant documents decreases the first while increasing the second. Not a great trade off. You can flip that equation in your favor, however. Outsourcing provides the following: Tap into professional knowledge of complex tax laws Guidance through the filing process Peace of mind with the IRS Life happens. Like an adoption. Or other major life change. Noting them when you file could require additional forms. Odds are you don’t have extra time to locate them. And properly fill them out. Not a problem with your industry guide. There’s two calls no person wants to receive. First, that they’re due for an invasive procedure. Second, that the IRS has questions for them. The last benefit nearly justifies the entire expense of personalized tax help. Remove that anxiety once and for all by bringing on an advocate between you and the government. Peace is possible. Custom Results Tax software applies a one-size-fits-all approach. The only problem is that your situation is completely different from your neighbor down the street. Sure, there may be some similarities. But your life isn’t a line of computer code. It includes subtleties and particulars. Programs can’t factor those in. A human being can though. Which leads to reasons for investing in assistance: Advice is specific and based on your financial situation Direction for future tax years Americans love personalization. We expect it at our coffee shop. For online shopping. So, why settle for anything less when you’re filing taxes? Earlier we mentioned how strategy can help decrease the odds of owing next year. And the following year. It won’t happen randomly. But taking a focused look at your tax situation allows experts to get you there. To conclude, we have a final suggestion for making tax season a breeze. Blue Slate Accounting Tax Services Company Something is missing from the accounting field. A human approach to personalized tax services. Zelienople, PA is our home, but we’ve worked with businesses and individuals across this great nation. Whether that’s aiding their successful filing or dealing with an IRS audit. Our small, but dedicated team of certified tax professionals and an IRS Enrolled Agent assist with: Federal, state, and local taxes Navigating tax regulations Increasing money that you’re legally entitled to Limiting any tax burden Quarterly filings We can clean up the debacle of that unorganized box of tax documents. For a monthly fee, we can counsel you on deductions and breaks to use next time. Your return will be double-checked by hand for ultimate accuracy. Because we strive for excellence just like you do. Offload your personal tax needs today. And take the first step towards reclaiming your joy and happiness!

“Will you be paying for this computer with cash or card?” asked the cashier. “I’ll be charging my personal credit card until I find clients. Thanks for asking!” responded no solopreneur ever. Well, maybe it’s been unspoken by a few. Either way, it brings up a topic that you should be aware of. Mixing funds between your personal and business accounts. Discover how you can shield your small business from any legal repercussions. What is Commingling of Funds? Many first-time entrepreneurs end up commingling business and personal funds. Some business books warn against it. But not enough of them do. An example would be purchasing a new office chair using a personal credit card. It may seem innocent, but it can create issues as you grow. Namely, in the form of IRS scrutiny. During the startup stage, you’re taking major leaps. From employee to employer. Shifting your mindset to that of an entrepreneur. And more. This is where a bad habit can form. Common reasons behind this practice: Rapid pace of business affects decision-making Limited cash flow early on Lack of a dedicated business bank account Gap in education for new business owners The move towards a cashless society appears to be accelerating. Creating a greater need for patience in your purchasing. It might look like ensuring that you grabbed the right card from your wallet before buying marketing software. Opening a separate checking account for your operation provides you with a business checking card. Having a visual reminder to keep funds distinct helps. Plus, it breaks the habit whether expenses are deducted automatically or manually. In the next section we’ll alleviate a concern you may have after reading this far. Is It Illegal to Use Business Funds for Personal Use? Commingling business funds may have occurred innocently. And in most cases, it does. But there are exceptions. Let’s look at an example. Solopreneur Steve took out a loan which he defaults on after a year in business. Over that period, he made various purchases from a personal account. Should the creditor take him to court, a judge could be swayed to rule against him. Even if fraud or embezzlement wasn’t the driver behind his actions. In this case, Steve might have to close shop. Or lose personal assets to pay off his debts. An LLC normally protects your home and car from repossession, but not your venture. Unless the corporate veil is pierced. Again, this determination is left up to the judge’s discretion. Although an extreme case, it’s obviously better to avoid this scenario. Creditors may also view it as a breach of trust, which is hard to get back. And makes getting another loan difficult. Why that matters: Growth is stunted when investors stay away Partnerships may not materialize Major changes in the economy have a greater impact Finally, if your business gets audited and you have personal funds intertwined it opens you up for a personal audit as well. Tax resolution services can assist if that happens. But it’s better not to need them. Next, we’ll give you steps to guarantee that commingling won’t affect your bottom line. Solutions to Commingling Funds There’s no need to be alarmed if your business transactions are muddled right now. It’s part of learning. And unites you with many others who’ve already walked the path you’re on. Ways to draw clear lines between your business and personal life: Open a business checking account right away Keep your receipts Outsource your bookkeeping to a professional Use reputable funding sources We encourage you to record transactions in a timely manner. This does take time but saves you from confusion later. It can be done weekly or monthly. A recurring task within your project management tool can remind you. Keeping a running total of expenses in the same task helps with budgeting as well. It’ll also hamper the notorious “shiny object syndrome.” A snapshot of spending can make a difference on your balance sheet. Physical receipts can be scanned into accounting software like Xero. It’s also a good idea to keep a backup copy. Make an investment and hand off this responsibility once cash starts coming in. Because revenue-generating activities should be your focus. Establish a relationship with credit sources before taking out a loan. If you’re having issues meeting payments, they’ll be more inclined to give you grace. Additional Reason to Keep Accurate Records Another benefit presents itself once tax season comes around. Organized books make the job easier for your CPA or accountant. Leading to an expedited filing of your return. Your bank statement is good, but accounting software is better. Because the professional you hire can access it for more accurate numbers. It centralizes the flow of cash in one place. Ultimately allowing you to minimize taxes and maximize deductions. This system helps you pay only what the law requires. Not a cent more. Extra perks of using technology: Ability to keep reporting simple or expand as you grow Better insights into the overall financial state of your operation Tutorial for new solopreneurs in metrics that matter From our experience, Xero performs better than QuickBooks. Despite it being a lesser-known option. Pros: Receive clear and easy to understand reports Real-time collaboration between your team is possible Simplify your inventory management More affordable for small businesses and solopreneurs Reduce delays or other issues by taking necessary steps now. It’s time to make commingling funds a distant memory. Keep reading to discover why your peace of mind is closer than you think. Blue Slate Accounting Tax Services Company Something is missing from the accounting field. A human approach to personalized tax services. Zelienople, PA is our home, but we’ve worked with businesses and individuals across this great nation. Whether that’s aiding their successful filing or dealing with an IRS audit. Our small, but dedicated team of certified tax professionals and an IRS Enrolled Agent assist with: Federal, state, and local taxes Navigating tax regulations Increasing money you’re legally entitled to Limiting any tax burden Quarterly filings We can clean up the debacle of that unorganized box of tax documents. For a monthly fee, we can counsel you on deductions and breaks to use next time. Your return will be double-checked by hand for ultimate accuracy. Because we strive for excellence just like you do. Offload your small business tax needs today. And take the first steps towards reclaiming your joy and happiness!