Capital Gains: Plan Ahead to Minimize Taxes

By John W. Cashman, Jr., CPA
Tax Manager at Gray, Gray & Gray, LLP

capital gains compass_164252669The ongoing economic recovery has resulted in a return of an extended bull market on Wall Street. One offshoot of this is an increase in capital gains generated by activities such as portfolio reallocation and the sale of appreciated assets. While many factors go into making a buy/sell decision, one of the most important concerns is the tax implication of any transaction that results in capital gains. Continue reading

Is Your Small Business Susceptible to an IRS Audit?

By John W. Cashman, Jr., CPA
Tax Manager at Gray, Gray & Gray, LLP

IRS Audit road sign_140360947_squareThe U.S. economic recovery has been spurred in many ways by the spirit of entrepreneurship that has led to an expansion of small businesses. The appeal of working for oneself and creating your own success is strong.

But running a small business also carries an increasing amount of scrutiny from the Internal Revenue Service (IRS). The financial controls present in a large corporation are not always so rigid in a closely held business. The IRS can come down hard on small companies that take advantage of “gray” areas in the tax code, or that get overly aggressive in claiming deductions.

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Gray, Gray & Gray, LLP and Green & Green, LLC Announce Merging of Firms

Massachusetts Accounting Firms MergeThe Partners and Teams of Gray, Gray & Gray, LLP and Green & Green, LLC are pleased to announce the merger of our firms – effective November 1, 2014. The combined firm will operate as Gray, Gray & Gray, LLP, with consolidated offices located in Canton, MA.

“We are very pleased to be joining forces with Green & Green, and look forward to working with their outstanding staff and clients,” said Joe Ciccarello, CPA, Managing Partner of Gray, Gray & Gray. “We have taken this step for many reasons – primary among them being our desire to provide our clients with a wider and deeper range of services. Our combined talents and abilities mean our clients will benefit from a more comprehensive scope of accounting, tax strategy, business advisory and wealth management services.”

For more details about the merging of firms, please click here to read the full press release.

Latest Online Scam Targets Banks

scam alert squareThe Internal Revenue Service (IRS) office is alerting financial institutions to be wary of fraudulent emails, ostensibly from the IRS, requesting personal financial data on account holders under the Foreign Account Tax Compliance Act (FACTA). The emails request data such as account holder identities, account information, and confidential passwords.

The IRS says it does not request specific account holder identity information over the phone, by fax or by email, and does not solicit FACTA passwords or other confidential account information. They report that incidents of these “phishing” scams involving FACTA have occurred in multiple countries.
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New Massachusetts Tax Incentives & Credits Announced

New Massachusetts Tax Incentives & Credits AnnouncedThe Massachusetts legislature was very busy during the last few weeks of the session just concluded, passing a fiscal year 2015 state budget of approximately $36.5 billion. Among the provisions passed and enacted were several new and expanded tax credits and incentives that offer taxpayers in the Commonwealth a number of opportunities to reduce their tax burden. Continue reading

Changes Proposed for “Cash Method” of Accounting

AnnouncementThe 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

Yet Another Tax-Related Scam Discovered

Underscoring the need to be vigilant during tax season, the Internal Revenue Service’s Taxpayer Advocate Service (TAS) recently issued a warning about an e-mail “phishing” scam targeting taxpayers. The Taxpayer Advocate Services is the “voice of the taxpayer” at the IRS, helping to ensure taxpayers are treated fairly and understand their rights. Continue reading