Sterling Tax & Accounting

Business owners, especially those with family involvement, should pay close attention to buy-sell agreements in their succession plans. These agreements are crucial for managing transitions in ownership due to events like death, disability, or changes in employment status. 💼 A buy-sell agreement outlines how an owner's interest in the business will be handled under specific circumstances, often funded by life or disability insurance. This planning is vital to prevent potential conflicts and ensure the business's continuity. 📜 Two common formats for buy-sell agreements are cross purchase and redemption arrangements. Each has its complexities and implications, especially concerning taxes and valuation methods. 🔄💰 A recent tax case, Thomas Connelly v. United States, highlights the importance of clarity in buy-sell agreements. The case involves a dispute over the valuation of a closely held business's shares after one owner's death. 🏛️ Key takeaways from the case and general buy-sell agreement considerations include: ✔️Follow valuation procedures outlined in the agreement to avoid disputes. ✔️Clearly define how life insurance proceeds will impact the business's value. ✔️Consider backup appraisal methods to ensure fair valuations. ✔️Understand the tax implications of different buy-sell formats, such as basis adjustments for surviving shareholders. ✔️Regularly review and update buy-sell agreements to reflect changing circumstances and laws. 📝 The Supreme Court's forthcoming decision in the Connelly case could have significant implications for business succession planning. Stay informed and consult with legal and financial experts to ensure your buy-sell agreements are robust and aligned with your business goals. 🤝 #BusinessSuccession #BuySellAgreements #CPA #SmallBusinessOwner #Accountant #Bookkeeper #SRQTax #SterlingTaxAndAccounting #Bookkeeping

🚨 Attention Personal Taxpayers! Don't stress if you missed the April tax-filing deadline! The IRS wants to help you get back on track. 📅💸 It's crucial to file your tax return as soon as possible to avoid penalties and interest. Remember, an extension to file doesn't mean an extension to pay! ⏳💳 If you owe taxes, file quickly to reduce penalties and interest. Even if you can't pay the full amount, file and pay what you can to minimize penalties. 💪 The IRS offers options for payment plans if you're unable to pay all at once. Check out IRS.gov for details. Good news for some taxpayers: you might qualify for penalty relief or extra time to file without penalties and interest. 💡 U.S. citizens abroad and those in certain disaster areas get automatic extensions. And if you're owed a refund, don't delay! Missing the deadline could mean missing out on money you're entitled to. 🤑 The deadline to claim 2020 refunds is approaching, so file before May 17, 2024! Don’t hesitate to call us about your business tax strategy and filing! We’re here to help! #TaxHelp #IRS #FileOnTime #SRQTax #CPA #TaxStrategy #Accountant #Bookkeeping #SterlingTaxAndAccounting #TaxSpecialist

📢 Big News from the IRS! 📢 In a fact sheet released on April 16, the IRS declared that work-life referral services provided to employees through an employee assistance program should be excluded from taxable gross income as a de minimis fringe benefit. 🌟 What does this mean? Essentially, de minimis fringe benefits are so small in value and frequency that accounting for them would be unreasonable or impracticable. This exclusion not only benefits employees but also relieves administrative burdens for employers. 💼💡 Work-life referral programs offer valuable assistance services, including informational consultations and support in navigating life challenges like child care, elder care, financial matters, and more. 🤝 These services are now officially recognized as non-taxable benefits, providing relief for both employers and employees. 🎉 #IRSUpdate #WorkLifeReferralServices #EmployeeAssistance #CPA #SRQTax #Accounting #TaxDeductions #SterlingTaxAndAccounting #Accountant #Bookkeeping

Unlock Tax-Free Fringe Benefit Deductions for Your Smartphone 📱💰 How you structure your business matters! Whether you're a proprietorship, corporation, or partnership, your entity type can unlock valuable tax benefits for your smartphone expenses. Thanks to recent IRS updates, small business owners can enjoy tax-free fringe benefits on personal smartphone costs, like Androids or iPhones. And here's the best part - no need to track your phone use for tax purposes! 🙌 If you have employees or contractors, you can also offer this perk by covering their smartphone expenses without requiring detailed usage records. 📞 Say hello to tax savings with a tech twist! #TaxFreeSmartphonePerks #SmallBusinessWins #CPA #SRQTax #SterlingTaxandAccounting #TaxDeductions #SRQ

🌟 Did you know that employers can claim the Work Opportunity Tax Credit (WOTC) for hiring individuals certified as members of specific targeted groups? Here are some of those groups under section 51 of the Internal Revenue Code: ◼️Formerly incarcerated or those previously convicted of a felony. ◼️Recipients of state assistance under part A of title IV of the Social Security Act (SSA). ◼️Veterans. ◼️Residents in designated empowerment zones or rural renewal counties. ◼️Individuals referred to an employer after completing a rehabilitation plan. ◼️Families receiving supplemental nutrition assistance under the Food and Nutrition Act of 2008. ◼️Recipients of supplemental security income benefits under title XVI of the SSA. ◼️Families receiving state assistance under part A of title IV of the SSA. ◼️Individuals experiencing long-term unemployment. This tax credit is a great incentive for businesses to hire from these groups and make a positive impact. Check if your business qualifies and seize this opportunity for both financial benefits and social impact! 🚀💼 #WOTC #TaxCredit #HiringIncentives

💰 Did you know about the Work Opportunity Tax Credit (WOTC)? It's a tax credit available under section 51 of the Internal Revenue Code, designed to benefit employers who hire individuals from specific target groups. This credit can be claimed for wages paid to eligible employees who start working on or before December 31, 2025. Here's how it works: ✔️The WOTC is equal to 40% of up to $6,000 of wages for eligible employees in their first year of employment. ✔️The maximum credit per employee is generally $2,400. ✔️For employees who work fewer than 400 but at least 120 hours, a 25% credit rate applies. ✔️Certain qualified veterans can have up to $24,000 of wages taken into account for the credit. ✔️Employers can't claim the WOTC for rehired employees. Taxable employers can carry forward any unused WOTC to the next year or back one year, with a total carry-forward period of 20 years. Make sure to check if your business qualifies for this tax credit and take advantage of potential savings! 💼💵 #TaxCredit #BusinessTips #FinancialSavings #SRQ #TaxSavings #SRQTax #CPA #Accountant #SterlingTaxAndAccounting

As we approach the 2024 elections, a fascinating dynamic emerges with both Biden and Trump, former presidents, presenting tax proposals reflecting their prior policies and current visions. 🌟 During his tenure, Trump's Tax Cuts and Jobs Act of 2017 marked a significant shift in tax policy. For businesses, it lowered corporate tax rates to 21%, introduced a 20% qualified business income deduction for pass-through entities, among other provisions. Many of these changes were made permanent, while others, like 100% business expensing, have expired or are set to expire. 💼 On the individual front, Trump's tax reforms reduced marginal rates, increased the standard deduction, and revamped various deductions and credits. 💵 #SRQTax #TaxStrategy #CPA #SterlingTaxAndAccounting #BusinessTax #Accounting #Bookkeeping #SarasotaCPA #VirtualCPA On the other side, Biden's early tax enactments addressed pandemic relief and clean energy incentives. He's now eyeing changes such as raising the top corporate tax rate to 28%, taxing foreign profits, and adjusting the corporate minimum tax rate. For individuals, Biden plans to raise rates for higher earners while expanding credits like the Child Tax Credit. 🔄 Amidst this political landscape, the Tax Relief for American Families and Workers Act of 2024 stands as a bipartisan effort, emphasizing an expanded Child Tax Credit and restoring certain Trump-era business provisions. This bill underscores a potential area of compromise in an otherwise polarized tax debate. 🤝 Ultimately, the upcoming elections and Congressional balance will determine which tax proposals materialize, with significant implications for businesses and individuals alike. Stay tuned for the evolving tax policy landscape in #Tax2024. 🗳️💼 We consistently stay on top of tax legislation to make sure you are saving the most amount of money legally possible for your small business. #TaxLaw #CPA #SterlingTaxAndAccounting #SmallBusiness #SRQTax #SRQ #SarasotaCPA

❓Do you trust your CPA to handle the financial health of your business? Most small business owners do, but many of them are actually paying more taxes than they should. This often amounts to thousands of dollars each year, and it's been going on for quite some time. Here's why this happens: Many business owners hire a tax preparer, but there's a significant difference between a preparer and a strategist. A preparer simply calculates what you owe, while a strategist delves deep to find out how much you can save legally. One approach ensures compliance, while the other maximizes your savings. During our free consultation at Sterling, we'll share valuable insights with you: 💲Specific business tactics to significantly reduce your tax burden. 💲The ideal legal entity structure for your business. 💲Effective retirement strategies. 💲Unexplored deductions that could benefit you. Starting ASAP in 2024 can lead to substantial savings for your small or medium-sized business! Set up time to talk with us about this and other strategies to reduce your tax liability. Click on the link in the comments to set a meeting. 🗓️

🎉 We're thrilled to announce that Sterling Tax and Accounting has been voted the TOP CPA FIRM in the 2024 Best of SRQ Local Readers' Competition, winning the Platinum Award for the second consecutive year! We also secured the TOP TEN places to work slot AGAIN! This achievement is a testament to the hard work and dedication of our team, and we couldn't have done it without the support of our amazing clients and community partners. THANK YOU to Sarasota for believing in us! 🌟 #AwardWinners #Grateful #TeamWork #SmallBusiness #SRQMagazine #CPA #TopCPAFirm #BestofSRQ #CPA #SterlingTaxAndAccounting #Accounting

🚨 Important Notice Regarding Employee Retention Credit (ERC) Claims 🚨 The Internal Revenue Service (IRS) is cautioning businesses about misleading information regarding the ERC and is urging them to watch out for six red flags that could signal a problematic claim. Here are the key points to be aware of: 🚩Overclaiming Quarters: Some promoters may encourage claiming the ERC for all available quarters, which might not align with eligibility criteria. Carefully review each quarter for eligibility. 🚩Misleading Government Orders: Claims based on inaccurate interpretations of government orders or OSHA communications are invalid. Ensure that your operations were genuinely impacted by government orders related to COVID-19. 🚩Inaccurate Employee Count and Calculations: Avoid overclaiming credits by accurately calculating qualified wages and considering the changing regulations throughout 2020 and 2021. 🚩Misrepresentation of Supply Chain Issues: Claims solely based on supply chain disruptions may not qualify. Verify if your supplier's government order aligns with ERC requirements. 🚩Incorrect Claim Periods: ERC can't be claimed for periods when wages weren't paid or when the business didn't exist. Ensure your claim aligns with actual payroll records and eligibility periods. 🚩Risk of Invalid Claims: Promoters suggesting there's nothing to lose with ERC claims may not fully disclose the potential risks of incorrect claims, including penalties, interest, and audits. The IRS has implemented special programs and deadlines, including the ERC Voluntary Disclosure Program with a discount until March 22, 2024, to rectify improper claims and avoid penalties. Seeking guidance from a trusted tax professional here at Sterling is crucial for navigating ERC compliance and avoiding future issues. Stay informed and protect your business from potential repercussions. #IRSCompliance #ERC #TaxAdvice #StayInformed