Why should I keep business records?

Everyone in business must keep records. Keeping good records is very important to your business. Good records will help you do the following:

Monitor the progress of your business
Prepare your financial statements
Identify sources of your income
Keep track of your deductible expenses
Keep track of your basis in property
Prepare your tax returns
Support items reported on your tax returns

Keeping records will only benefit you and your business. Preparing for tax season is a year long job, and the better organized you are the easier tax season will be.
For more information contact Neikirk, Mahoney, & Smith at 502-896-299

Don't forget to file Health Coverage Information Returns

Reminder for Employers and Providers: File Health Coverage Information Returns

If you are a self-insured employer, applicable large employer or health coverage provider, remember that the deadlines to file information returns with the IRS are approaching. The deadline to provide information returns to employees or responsible individuals was March 31 but for some the deadline to file them with the IRS is just over one month away.

If you have any questions contact Neikirk, Mahoney & Smith at 502-896-2999.

Struggling to Pay Tax Bill?

People facing financial difficulties may find that there's a tax impact to events such as job loss, debt forgiveness or tapping a retirement fund. For example, if your income decreased, you may be newly eligible for certain tax credits, such as the Earned Income Tax Credit.
Most importantly, if you believe you may have trouble paying your tax bill, contact the IRS immediately. In many cases, there are steps we can take to help ease the burden. You also should file a tax return even if you are unable to pay so you can avoid additional penalties.

Contact Neikirk, Mahoney & Smith for more information 502-896-2999.

New Ruling Split-Dollar Arrangement Is Not a Gift

Last week the Tax Court, in a case of first impression, ruled that payments made by a decedent through a trust to pay premiums on life insurance policies obtained to fund buy-sell agreements should not be regarded as loans still owed to her estate.

The case, Estate of Morrissette v. Commissioner, 146 T.C. No. 11, is groundbreaking for the tax, wealth planning, and insurance communities because the court‘s decision opens the door to intergenerational split-dollar arrangements, thereby easing the passage of family assets such as closely held businesses through the generations with predictable estate and gift tax consequences to the original owners.

If you have any questions about a trust and how this ruling will affect you contact Neikirk, Mahoney & Smith at 502-896-2999

Did you file late? Here are some things you should know.

April 18 was this year’s deadline for most people to file their federal tax return and pay any tax they owe. If you are due a refund there is no penalty if you file a late tax return. If you owe tax, and you failed to file and pay on time, you will most likely owe interest and penalties on the tax you pay late. To keep interest and penalties to a minimum, you should file your tax return and pay the tax as soon as possible.
Here are some facts that you should know.

1. Two penalties may apply.
2. Penalty for late filing.
3. Penalty for late payment.
4. Combined penalty per month.
5. File even if you can’t pay.
6. Payment Options.
7. Late payment penalty may not apply.

For more details contact Neikirk, Mahoney & Smith at 502-896-2999.

Now is a good time to plan for your 2016 taxes.

You may be tempted to forget about your taxes once you’ve filed but some tax planning done now may benefit you later. Now is a good time to set up a system so you can keep your tax records safe and easy to find.  Here are some IRS tips to give you a leg up on next year’s taxes:

Take action when life changes occur.
Report changes in circumstances to the Health Insurance Marketplace.
Keep records safe.
Stay organized.
Shop for a tax preparer.
Think about itemizing.
Stay informed.

Let us help you stay on track for next year. Contact Neikirk, Mahoney & Smith at 502-896-2999 for more information.

Did you receive a letter from the IRS?

Why was I notified by the IRS?
The IRS sends notices and letters for the following reasons:
You have a balance due.
You are due a larger or smaller refund.
IRS has a question about your tax return.
IRS needs to verify your identity.
Additional information needed.
IRS changed your return.
To notify you of delays in processing your return.
If you do not agree with the letter or have any questions you can contact us at Neikirk, Mahoney & Smith 502-896-2999.