Beware of a 100% Personal Liability Penalty

July 27, 2017

A “100% penalty” can be assessed against a responsible person when federal income tax and/or federal employment taxes are withheld from employee paychecks but aren’t handed over to the government.Personal Liability Penality

This Trust Fund Recovery Penalty got its informal “100% penalty” moniker from the fact that the entire unpaid amount can be assessed against a responsible person (or several responsible persons). The purpose of the penalty is to collect withheld but unpaid federal taxes from individuals who had control over an employer’s finances.

Often, operating a business as a corporation protects the individual owner from personal liability for some corporate debts. In cases of unpaid payroll taxes, however, the corporate shield or corporate veil is “pierced” and the IRS looks past the corporation to the responsible person to pay the debt.

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Relief from Student Loan Debt: What Are the Tax Implications?

July 25, 2017
Student Loan

Be aware of the tax implication of student loan relief.

Today’s college students often leave school with an overwhelming amount of debt. In some cases, student loans are discharged (also known as being cancelled or forgiven). In other cases, these loans are paid off by an employer. Both actions have tax consequences for the student loan borrowers. We’ll explain the tax implications, but first, let’s cover some necessary background information.

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Brace Your Business for Disaster Scams

July 18, 2017

Construction work in the wake of a disaster is a prime target for scams. Be cautious in selecting your construction firm.

Few things in life are certain, but when disaster strikes, the number of fraud incidents will probably skyrocket. In the wake of a hurricane, tornado, flood, fire, earthquake or other unexpected catastrophe, fraudulent operators are always quick to surface. Often, however, they carry warning signs to alert savvy business owners.

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Know the Rules for Amending a Federal Income Tax Return

July 13, 2017

What should you do if you discover an error on a previously filed individual tax return? For example, you might have missed some tax-saving deductions and credits on your 2016 personal federal income tax return that you filed in February. Or you might have recently discovered that you failed to claim some legitimate tax breaks on your 2015 return that you filed last year. Here are the rules for filing an amended return.

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Why Job Costing Is Important

July 11, 2017

Every construction company, regardless of whether they are a general contractor, subcontractor, or something in between, must be able to win and complete jobs efficiently. Business owners and project managers need information to accurately bid and estimate projects. It is imperative that the company generates accurate and timely reports. While some project managers rely solely on experience, the most successful project managers know how to best utilize the job schedule.  The job schedule tells the story of construction projects at a point in time by providing a summary of all contracts the company has in process or has completed  on a contract by contract basis.  The job schedule relies on several factors, however, the most important is proper job costing.  Proper project costing leads to better profitability, project estimating, management decisions, and timely financial reporting.

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Achieve Sustainable Cost Cutting At Your Organization

July 6, 2017

Taking costs out of a business can be deceptively easy to do — at least initially. Cutting low-hanging fruit such as providing coffee in break rooms, consulting services, laying off temporary employees or removing a layer of management can result in considerable savings. However, these savings are often not sustainable. Slowly but surely, decisions will be made by front line employees and managers alike that add costs back into the business. Within short order, many companies find themselves back in the exact same place they were before the costs were cut; only now employee morale has suffered and there is a general resistance or apathy to cost cutting throughout the organization.

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