IRS Solver

09/26/2024

Looking for some help for Andrew - he is on the hunt for a summer internship job for 2025. He's a junior - mechanical engineering major. If you know someone that is in HR or an engineer that works for a company that wants or has a student engineering internship program or owns an engineering firm that would like to have a summer intern let me know. I can share with you Andrew's resume and transcript to forward to your colleague OR if you provide me with your colleagues information and you can do a soft introduction and Andrew will contact your colleague directly. Thanks in advance.

06/10/2024

On 6/7/2024 the IRS confirmed there is a nationwide delay in processing tax payments which is resulting in CP14 Balance Due notices being issued even after you've made full payment for tax year 2023.

The IRS is requesting that you take no action for at least 6-8 weeks to allow them to catch up on payment processing and posting to their various systems.

If you find yourself in this situation and need some professional assistance, feel free to reach out to me.

Steven C Leibold, EA
San Diego Business Advisors

06/03/2024

9 High-Level Tax Strategies

1. Keep accurate records. Proper record-keeping facilitates smoother tax filing and allows you to identify opportunities for deductions and optimization.

2. Maximize your deductions. Essential deductions include office rent, utilities, travel expenses, employee salaries, and business-use equipment. Consult with a tax professional to pinpoint all applicable deductions for your situation.

3. Maximize retirement plan contributions. Remember, contributions to a 401(k) are made with before-tax income, and thereby lower your tax rate come tax season.

4. Claim available credits. Tax credits directly reduce the taxes you owe. Look for credits like the Work Opportunity Tax Credit, Small Business Healthcare Tax Credit, Qualified Business Income Deduction, and others.

5. Defer income and accelerate expenses. Be mindful of your cash flow and consider shifting income and expenses to your advantage. The method to defer income depends on the accounting method your business uses: cash-basis or accrual-basis.

6. Plan for estimated taxes. As a small business owner, you likely need to pay estimated taxes quarterly to avoid underpayment penalties. It's crucial to stay on top of these deadlines.

7. Consider adjusting your business structure. Depending on your business goals and growth, transitioning to another legal structure like an LLC, S Corporation, or C Corporation may provide tax advantages. Weigh the pros and cons with a tax professional before making the switch.

8. Pay for health insurance. Self-employed health insurance deductions can reduce your overall tax liability. They can be applied to premiums for medical, vision, dental, and long-term care.

9. Use your car for work. By using a personal car for business you can enjoy significant tax advantages. To calculate your deductible car expenses, you can opt for the standard mileage rate — 67 cents per mile for tax year 2024 — or itemize your actual expenses.

As always, reach out if you have questions or needs. Whether it's optimizing your tax strategy or preparing for potential changes in the future, I'm here to help you make sense of it all.

Steven Leibold, EA
www.sdbizadv.com
619-294-4286

Comprehensive Tax Planning and Accounting Solutions for Small Business Owners. Work With a Qualified Tax Strategist to Ensure Your Success. Benefit From 25+ Years of Tax Planning Experience.