The cash method of accounting is one that is commonly used by small and medium size business of all types. The simplicity of record keeping and reporting makes the cash method an attractive alternative.
However, a broad reaching tax reform plan recently introduced in the U.S. House of Representatives would make significant changes in which businesses would be allowed to utilize the cash method of accounting. The proposal from Representative David Camp, which is designed to simplify the rules on the cash method, would modify the gross receipts threshold that currently precludes some companies from using the cash method. Continue reading
Businesses have long been able to fully expense the costs of advertising in the year that the costs were incurred. However, a new proposal from the chairman of the House Ways and Means Committee would gradually reduce this advertising deduction by half, with the remaining costs being amortized over 10 years. Continue reading
Timing is everything, and that is especially true when it comes to getting your taxes filed on time. Late filing can result in penalties and fees, which are completely avoidable with a little planning and preparation. The first step is to know your filing deadlines for the coming year. We have listed the most important filing dates for this year below. Continue reading
Beware of an interest assessment surcharge from your state!
Private sector employers pay both federal and state unemployment taxes, which are based on wages paid. The federal tax is 6.0%, which is usually offset by a credit of 5.4% when an employer also pays state unemployment insurance taxes. This reduces the effective federal unemployment tax rate to 0.6%. Continue reading
Identity theft used to be the type of crime most people assumed would happen to other people. But the widespread exposure of personal financial information that has occurred across the country in recent months has brought this danger to the attention of more people. But with the highly publicized theft of customer information from some of America’s largest retailers, it’s no surprise that most Americans now have a greater chance of having their identity information stolen than being held up at gunpoint. Instead of facing a pistol, Americans are being robbed by skilled hackers using cyber weapons.
These on-line thieves work in nearly every country trying to steal credit, debit and other personal financial information. However, we are especially susceptible here in the U.S. because we have yet to adopt the European standards of embedded chip and PIN code for credit and debit cards. Our continued use of the magnetic swipe style of card leaves our system open to malware and hacking. Continue reading
It is with great pleasure that we welcome Richard P. Feilteau, CPA as a new partner at Gray, Gray & Gray! In the words of fellow partner Mark Kashgegian, “Rich brings so much to the table as a partner, including his passion, commitment, loyalty, and dedication to his career, clients and the people he works with on a daily basis.”
Clients have always relied on Rich’s timely advice and thorough understanding of their business operations to assist them in achieving success. We look forward to what the future holds with Rich continuing to lead the way in going beyond the numbers for Gray, Gray & Gray clients.
Congratulations on this well-deserved promotion, Rich!
The July 3rd issue of Gray, Gray & Gray’s The Advisor newsletter featured an article outlining the many possible advantages that same-sex married couples will now have as a result of the Supreme Court’s recent Defense of Marriage Act (DOMA) decision. The potential advantages of this ruling, which indicated that the federal law that prohibited same-sex couples from being treated as married is unconstitutional, are extremely important from a tax point of view.
Over the last few years we have recommended that married same-sex couples consider filing a claim for protective refund, if it would be beneficial. Now that the Supreme Court has ruled, it is important for same-sex couples to determine if it is beneficial to file amended returns for open years. In addition, same-sex couples should review any gift tax returns that have been filed.
If you have questions about tax implications of the DOMA decision and whether amending returns might be beneficial, please contact Gray, Gray & Gray’s Tax Department at (781) 407-0300.