Newsletter

Tax Help!

by: Mike Ward, EA

Finding yourself bogged down with tax problems?

Do you feel like you are unable to properly explain your unique situation to the IRS and other government agencies? Have these agencies become relentless on their collections?

Or maybe you just have questions regarding your new business?

Well you are not alone!

A clear path out of complicated tax situations can feel daunting.  Finding sound tax advice from your local tax professional can make the process of reconciliation much less financially and emotionally trying. OC Tax Service specializes in these exact situations.

 

 

Below are some of the most common tax situations and the ways OC Tax can help tackle these tax problems:

Timely filing your individual 1040 tax returns and/or your business (1120, 1120S, 1065) tax returns.

  • OC Tax Service specializes in Individual and small business tax filing and will help you get caught up on your personal and business tax return filing. If you have back tax debt the IRS will not negotiate until all due tax returns are filed.
  • OC Tax Service will guide you through penalty relief and offer and compromise options that the IRS offers.

 

Tax filing for 1099 income or independent contractor income. If you are a new or seasoned independent contractor and you are not properly preparing for income tax liabilities then you may be headed for, or already in “tax trouble”. You may need tax help.

  • OC Tax Service can help you take full advantage of all the tax deductions you are entitled to under the current tax code. After all the deductions are considered we will set up an estimated tax payment plan that will avoid large unexpected tax obligations at the end of the year.
  • Tax filing for 1099R. Early IRA distributions are taxed and penalized differently than other investments. The tax implications should be reviewed thoroughly before these tough decisions are made. If you are considering taking early distributions, or are unsure how your retirement will be taxed, than you may need tax advice from a tax professional.
  • At OC Tax Service, we have seasoned tax professionals available to explain any tax situation. We will discuss the tax implications of an early distribution from your IRA and the exceptions that may or may not apply to these rules.

 

Incorrect withholding on your W2 or 1099R. Setting up the proper withholding on your W2 or 1099R may keep you out of tax trouble and possibly save you from many tax headaches and tax problems.

  • OC Tax professionals can explain the different withholding on tour W2 or IRA and help you decide what is best for your unique situation.

 

Call OC Tax Service today and speak with of our knowledgeable Enrolled Agents or Registered Tax Preparers. (410)973-2742

 

 

 

Commingling Accounts: Keeping Business Accounts Separate from Personal Accounts

By: Mike Ward EA, OC Tax LLC

 

As a seasoned Tax Professional at OC Tax Service in Berlin, MD I have had the opportunity to meet and work with many talented and driven small business owners.  New and experienced entrepreneurs alike make the common mistake of comingling there business and personal accounts thus leaving themselves vulnerable to costly legal and financial roadblocks. Piercing the “Corporate veil” is a legal concept used in law suits to access your personal assets. This happens when businesses and individual shareholders or company owners commingle funds and/or accounts.   Keeping accurate records and making sound financial choices when setting up your business structure can save many headaches.  These are the most common mistakes, and steps that can be taken to avoid future complications.

Common Mistake:

  • Using 1 bank account for personal and business activities
  • Paying personal expenses with a business credit card or writing checks for personal expenses from the business account.
  • Using personal accounts to pay business expenses
  • Depositing company funds into personal accounts
  • Mixing bank accounts with multiple businesses

Solutions:

  • Use a separate account for all business activities
  • Never pay personal bills with business accounts.
  • Keep accurate records of any business expenses paid with personal funds and issue corresponding reimbursement checks.
  • If you have multiple businesses keep accurate records and maintain separation on all activities.
  • Have a qualified professional help when structuring your financial workflow and account set up.

Setting up a company for accurate bookkeeping is a quintessential tool for the success of any size business. Small individually owned businesses struggle with allotting the proper time for administrative duties such as bookkeeping and tax preparation. OC Tax LLC has qualified professionals available for services ranging from basic consultation all the way to full service on site bookkeeping.  We can customize a Tax and Bookkeeping package that works best for your individual needs.

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