You probably think you already know the value of your business. After all, who would know it better than the owner? The reality is, however, that there are several factors that impact the value that many business owners are unaware of. In addition, the emotional investment one has in his business may cause him to underestimate risks or overestimate cash flows. Why is it important to know the true value of your business? Here are a few compelling reasons. [Read more…] about Do You Know the Real Value of Your Business?
The Pros and Cons of a Prenuptial Agreement
While no one enters a marriage expecting to split up, the unfortunate reality is that more than 1 in 2 marriages end in divorce. If you are a physician or business owner engaged to be married, odds are either a friend or family member has recommended you get a prenuptial agreement. Should you listen? Here’s a rundown of the pros and cons you ought to consider. [Read more…] about The Pros and Cons of a Prenuptial Agreement
IRS Improves Offer-in-Compromise Terms for Struggling Taxpayers
The IRS has announced an expansion of its “Fresh Start” initiative by offering more flexible terms to its Offer in Compromise (OIC) program. An OIC is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. It can only be done if the IRS believes the liability can’t be paid in full as a lump sum or through a payment agreement. This determination is made by looking at the taxpayer’s income and assets. The new expansion of the OIC program includes, in certain circumstances: [Read more…] about IRS Improves Offer-in-Compromise Terms for Struggling Taxpayers
Hiding Money From Your Spouse? It’s Not as Easy as it Used to be
Troubled couples often try to hide money from each other, whether to spend it on extramarital mischief or keep from sharing it in a divorce. They will often open up secret on-line brokerage accounts or hide cash in a safety deposit box. Whatever the method, the hiding spouse is forewarned: Electronic discovery has made it much easier to track your covert activity.
There are many ways a spouse can uncover secret financial dealings. A suspicious spouse might go through their partner’s web surfing history and social networks to uncover traces of hidden bank accounts and business deals. Some may even install software that records every keystroke their spouses make. Among the wackier tactics include replacing spouse’s GPS with a nearly identical one, allowing tracking of the vehicle’s location and even pictures of who’s sitting in the front seat. Smartphones, as well, are playing an increasingly large role in discovering hidden assets. Mr. Lewis, a data forensic expert in New York, says he recently worked on a case where the spouse enabled the “find my phone” software on all of her family’s smartphones, and quickly learned of her husband’s frequent trips to an ATM, where he withdrew cash she didn’t know about. [Read more…] about Hiding Money From Your Spouse? It’s Not as Easy as it Used to be
Employee Vs. Independent Contractor Status is Focus of New IRS Template
Should you be classified as an employee or independent contractor? This is an issue that has drawn a lot of attention from the IRS lately, as more employers have been trying to cut costs and classify employees as independent contractors thereby avoiding thepayroll taxes. To clarify how one determines his or her status the IRS has released Publication 1779, which looks at three areas: behavioral control, financial control, and the relationship of the parties to determine worker classification.
To view the template, click here: Employee Vs Independent Contractor Status
More on Retention of Records
For those who want to be extra cautious about retaining financial records, here are specific reasons why you should keep your actual tax returns even if the statute of limitations has expired. And what exactly are the statutes of limitations which are relevant?
Tax Records
Supporting documents, such as 1099’s, W-2’s, receipts for charitable contributions, etc. should be kept for 3 years after the return was filed or the due date, whichever is later. For example, the documents for your 2011 return filed March 1, 2012 should be retained until April 15, 2015. Note that if your 1099 is attached to a brokerage statement that shows evidence of the purchase cost of a financial asset it’s critical to hold onto the statement until you dispose of that asset.
As for the tax returns themselves, it’s a good idea to save them forever. They may be needed for Medicaid, immigration, pension, divorce and other purposes. They may also contain useful data in filing future returns. At a minimum we recommend retaining them for 10 years. Certain items on a tax return affect later years and need to be kept until the statutes of those later years’ tax returns expire. For example: [Read more…] about More on Retention of Records