AFS Blog
Converting Your Business to an S Corporation
There are a number of reasons to convert your business to an S Corporation but the most common is to reduce self-employment (SE) taxes. Any one operating their business as a sole proprietorship or an LLC taxed as a disregarded entity (fancy way of saying sole prop) or...
Add a Home Office to your business return to increase deductible mileage.
A home office can eliminate the 'commuting' portion of your trip, adding additional deductible business miles each day. Is it worth it? You bet. An additional 30 mile round trip can add up to over 4000 additional deductible business miles a year worth almost $900 on...
How to Handle Unfiled Tax Returns
Unfiled tax returns are a common occurrence. Often they come to light when a taxpayer tries to get a mortgage and 2 years of tax returns are needed for the loan application. Sometimes they come to light when an IRS letter is received. Sometimes people just want to...
IRS warns of another Social Security number cancellation scam
We recently heard of a new twist on an old scam where fraudsters call up victims and threaten to cancel their Social Security number if they don't pay their taxes. These scammers claim that they can suspend or cancel a victim's SSN in an attempt to frighten people...
IRS Audits-How do they Choose the Target?
Many believe that returns filed later in the season are less likely to be audited. That's an urban legend. All returns, whenever filed, are scanned for arithmetic errors and scored against top-secret internal algorithms. The higher the score, the more likely the...
IRS auditing small businesses that have reported losses in several consecutive years
Apparently the IRS is focusing on small businesses that have reported losses in 3 or more consecutive years. Letters have gone out for the 2017 tax year advising some taxpayers that their business is being reviewed to determine if their 'business' is actually a hobby....
IRS is now sending letters to taxpayers with virtual currency (Bitcoin) transactions
As part of it's outreach efforts, the IRS is sending letters to some clients with virtual currency transactions advising them of potential failure to report income and pay taxes resulting from currency transactions or advising that transactions may have been reported...
7 MAJOR TAX LAW CHANGES THAT WILL AFFECT MOST TAXPAYERS
WE REVIEWED THE NEW TAX LAW AND THINK WE HAVE LISTED THE CHANGES HERE THAT AFFECT MOST PEOPLE. THIS IS NOT A COMPLETE LIST, JUST THE ITEMS THAT I THINK MOST PEOPLE WILL SEE. OUR RATINGS REFER TO THE EFFECT ON TAX LIABILITY. IF CHANGE COULD RAISE TAXES, IT IS POOR...
SMALL BUSINESS STARTUPS AND STARTUP EXPENSES
Starting up a business is exciting, but can be a confusing task. There can be a number of traps that can result in extreme frustration down the road and could cost you money. We help dozens of people setup a business or change their entity each year at very...
IRS CP504 Letter-Notice of Intent to Levy- What do you do?
The CP 504 letter is one of many form letters the IRS sends to taxpayers for common tax debt situations. If you have received a CP 504 notice (the notice number is shown in top right-hand corner along with tax year the notice refers to and the date the letter was...
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