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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Don’t Like Paying for Your 401(k) Plan Audit? Here’s an Alternative.

Companies set up a 401(k) plan for their employees for many reasons. As a vehicle that can help supplement social security income for their employees’ retirement years, a 401(k) is an important recruiting and retention tool and an excellent alternative to a traditional, company-funded pension plan. Plus, it can be rewarding to know that you are offering this support to your hard working employees. Continue reading

Time to File “Change in Accounting Method” For Repairs

The temporary repairs regulations, which were issued last December, will affect many businesses, regardless of what industry they cater to.  Businesses have until the end of the 2013 tax year to file for a Form 3115, “Application for Change In Accounting Method,” to comply with the new complex and lengthy regulations.  At the recent ABA Tax Conference, Sunita Lough, Acting Director (prefilling and technical guidance) of the IRS Large Business and International Division, provided some insight on the new regulations filing timeline. She indicated that taxpayers, who choose not to file Form 3115 in order to comply with the temporary tangible property regulations during the first year of the two year window, will not be at risk for an IRS audit as long as they do file before the end of the two years. This means that it is important for all affected businesses to file Form 3115 at some point during this two year window. Continue reading

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Welcome to GG&G’s Blog, GG&G News. We will consistently use this platform to share relevant and important news and updates for our readers to ensure that they are kept up-to-date on all tax related issues which will help them stay successful and in compliance. Thanks for reading and please sign up on the link to have all updates to this blog sent straight to your email.