Schwartz & Hofflich LLP, Norwalk CT CPA Firm

Keep Pace with Your Customers

Russ — Tue, 27 Jul 2010 18:36:59 +0000

Want to grow your bottom line faster? Try location marketing.

As consumers increasingly boost their dependence on mobile devices, it makes sense that

Help Avoid an Examination By Knowing the Red Flags

Russ — Tue, 27 Jul 2010 18:34:56 +0000

There are several ways the IRS collects money after taxpayers have payroll deductions taken, make estimated payments and file balance due amounts with their returns.

Of course, the IRS can assess additional taxes after auditing the tax returns of those who arouse suspicion based on what is claimed.

Time to Rethink Your Investment Strategy?

Russ — Thu, 01 Jul 2010 19:09:04 +0000

The stock market may have recovered in the hours following the “flash crash,” but many investors are still in shock over the deep losses their portfolios suffered when the stop loss order so infamously failed. The Securities and Exchange Commission (SEC) is not only investigating the May 6 debacle, but working on instituting safeguards to prevent a repeat incident. However, in the end, the onus is on the investor.

What is a Personal Guarantee and Should I Grant One?

Russ — Thu, 01 Jul 2010 19:04:20 +0000

Most lenders require the individual owner of a small business to personally guarantee loans made to a business. This pledge indicates the owners’ commitment and helps ensure that the loan obligation won’t be abandoned.

The problem: A personal guarantee means your personal assets are available as collateral. It opens an individual — or a husband and wife if they both sign – to personal legal exposure.

Even if it’s difficult to avoid giving a guarantee, there may be a few steps you can take to limit exposure:

If possible, attempt to limit the length of the guarantee in time, or the amount that you are personally responsible for. Try to recover your personal guarantee as soon as the business can carry the debt on its own.
Limit the amount of the guarantee to a dollar amount or loan percentage, rather than allowing it to be unlimited.
Refuse to have your spouse guarantee the loan. This limits the assets covered by the guarantee to those solely in your name as the principal – and not your spouse. Assets held in your spouse’s name, such as bank accounts, would be outside of the guarantee.
A further limitation would be to specifically exclude certain assets from the guarantee — such as a personal residence, certain securities or funds. Consider pledging the cash value of life insurance as an alternative for other collateral. This is an asset you may not miss as much as others while it is tied up as collateral for a loan.
Another option is to limit the guarantee solely to any deficiency the lender may have after it has exhausted all remedies against the borrower.

So while personal guarantees are usually required, there might be ways the impact can be minimized.

College Graduate Checklist

Russ — Mon, 07 Jun 2010 21:42:49 +0000

The time you’ve waited for has arrived. You’re a graduate, you’ve found a job and are on the verge of exercising newly gained independence.

Have you created a budget? It will help set spending limits and determine savings amounts. Start with mandatory expenses such as rent, utilities and student loan payments. Then go down the list of variables, such as food, gas, furniture and entertainment.

The financial responsibilities ahead can be daunting. You will have to start paying bills, as well as saving for essential purchases such as food, furniture, a car, and a house.

In the meantime, if you are like many graduates, you will have to start paying down student loans, take on new debt and deal with credit cards.

On the other hand, time is on your side. One of your biggest assets as you work toward setting and achieving financial goals is the value of compound growth over several decades.

The financial decisions you make now involving spending, saving and budgeting can mean the difference between struggling for the rest of your life or building toward solid financial freedom.

Here is a checklist of some of the important issues you will confront along with tips on how to maximize the money you have available to retain and reinforce your security.

Get Ready for Onerous New 1099 Reporting Rules

Russ — Mon, 07 Jun 2010 21:40:39 +0000

Businesses and not-for-profit organizations are accustomed to IRS rules that require them to report certain payments on annual Form 1099 information returns. However, the recently enacted healthcare law imposes surprising new Form 1099 reporting requirements. Complying with them may add significantly to your organization’s paperwork burden. While the new rules don’t apply to payments made before 2012, it’s not too early to start gearing up to deal with them.

Key Point: For many organizations, the new rules will require issuing 1099s for all sorts of business payments that they never had to worry about before. And the IRS will receive 1099s detailing how they spend money on a whole new range of business expenses. However, the healthcare legislation does not require Form 1099 reporting of payments that are made for non-business reasons.

The First Three Steps To Starting A Business

Russ — Tue, 11 May 2010 19:02:22 +0000

By Mike Tolla

Not everyone is prepared to be an entrepreneur, so start with an honest self-assessment. Ask yourself a few questions: Are you ready to work possibly twelve or more hours a day and maybe seven days a week?; Are you a risk taker?; Are you ready to risk your savings?; Do you have the emotional strength to deal with pressure?; Do you have a passion for this business?; Do you like competition?; Is your family in favor of this new venture?; Do you have management skills?; Are you a good planner?; and Do you have the experience and skills needed for your new business?

Employee Benefit Tax News

Russ — Tue, 11 May 2010 19:00:24 +0000

The IRS made three announcements recently that are of interest to certain business and individual taxpayers:

1. The COBRA subsidy for those who have lost their jobs has been extended again until May 31.
2. Tax-free employer health coverage is now available for children under age 27.
3. Average small group premiums for each state have been issued by the IRS to determine the amount of the new small business health care tax credit.

Make Sure You Pay Over Payroll Taxes on Time

Russ — Tue, 20 Apr 2010 20:58:37 +0000

Uncle Sam wants you to deposit federal payroll taxes on time. That means your organization must fork over amounts withheld for income tax, FICA and FUTA during the course of the year.

What is the Status of My Tax Return?

Russ — Tue, 20 Apr 2010 20:52:50 +0000

To get your refund status, click IRS Web site to go to the web site. Once there, click on Where’s My Refund? and provide the following information shown on your return:

Your Social Security number or Tax Identification Number.
Your filing status.
The refund amount.