Wednesday, 10th March 2010.

Tax Preparation. 7 Considerations and Questions before hiring a tax preparer.

Posted on Thursday, 28th January 2010 by Jose A. Alvarez, CPA

Before you take your tax return in to the nearest tax preparation service around the block, consider this advice from the IRS:

“Taxpayers who decide they need assistance when preparing a tax return should choose a tax preparer with care and caution. Even if a return was prepared by an outside individual or firm, taxpayers should remember that they are legally responsible for what they file with the Internal Revenue Service.” IRS FS-2010-3

With this in mind, here is a list of considerations and questions you should ask before hiring someone to file your income tax return. (more…)

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7 Common Bookkeeping Errors committed by business owners.

Posted on Thursday, 24th September 2009 by Jose A. Alvarez, CPA

Frustrated with bookkeeping?

If you are like most business owners, you set up your venture based on something you love. Your vision includes building the next great widget or delivering a service superior to your competitors.  This passion, or entrepreneurial spirit,  is what energizes you. However, there is another side of business that can drain you of this energy…Bookkeeping and Payroll. I have yet to meet a business owner who wakes up each morning excited with the idea of entering transactions into Quickbooks.

It’s no wonder that we often come across business owners who ignore bookkeeping altogether or are making so many errors that their financial statements are almost meaningless. We want to share the 7 most common bookkeeping errors we run across with the hope that you avoid making these accounting mistakes yourself. Read the 7 Common Bookkeeping Mistakes

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Florida Ranked 6th Best State Tax System for Small Business

Posted on Thursday, 28th May 2009 by Jose A. Alvarez, CPA

The Small Business & Entrepreneurship Council (SBE Council) published the “Business Tax Index 2009: Best to Worst State Tax Systems for Entrepreneurship and Small Business”. As a small business owner in the Tampa Bay area, it’s nice to see that Florida is ranked 6th overall. Compare Florida’s Tax index score of 22.423 to Washington DC’s score of 58.315 and you realize we don’t have it so bad.

The Business Tax Index takes into account 16 different tax measures, including:

  1. Personal Income Tax Rates (Florida tied for 1st with 8 other states).
  2. Capital Gains Tax Rates (Florida tied for 1st with 8 other states).
  3. Corporate Income Tax Rates (Florida ranked 15th)
  4. Corporate Capital Gains Tax Rates (Florida ranked 17th)
  5. Additional Income Tax on S-Corporations
  6. Individual Alternative Minimum Tax
  7. Corporate Alternative Minimum Tax
  8. Indexing Personal Income Tax Rates
  9. Property Taxes (Florida ranked 31st)
  10. Local Sales, Gross Receipts, and Excise Taxes (Florida ranked 43rd)
  11. Adjusted Unemployment Tax (Florida ranked 4th)
  12. Death Taxes
  13. Tax Limitation States
  14. Internet Taxes
  15. Gas Tax (Florida ranked 48th)
  16. Disel Tax (Florida ranked 38th)

Download the full PDF report: Business Tax Index - 2009

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Reduce Your Late Filing Penalty to the IRS

Posted on Thursday, 23rd April 2009 by Jose A. Alvarez, CPA

Filing Tax Returns Late is costly.

Filing Tax Returns Late can be very costly.

Let’s face it, filing your tax return is not the most exciting task you’ll do every year.  For many people, they would rather get a root canal than worry about their tax return.  Nevertheless, it’s something that must be done and putting off the filing process can be costly.  Every year, for various reasons, an estimated 7 million Americans fail to file their tax returns.

Why You Should File Your Late Tax Return As Soon as Possible -
Reduce Your Late Filing Penalty to the IRS (more…)

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Alvarez Company to present “Entity Selection” at SouthShore Community Bank

Posted on Thursday, 12th February 2009 by Kevin Alvarez

José A. Alvarez, Managing Director of Alvarez Company PA CPA Firm, will be presenting “Entity Selection: Tax Consequences and Other Tax Saving Tips” at two SouthShore Community Bank branches.

José will be speaking at the Apollo Beach branch on Thursday February 19th, 2009 between 4:30 pm and 6:00 pm and will be at the Sun City Center branch on Tuesday February 24th between 4:30 pm and 6:00 pm.

During the free presentations, José will explain the tax benefits and consequences of the various entities and explaining the different types of ways to incorporate your business.
You will learn the basic principles of each entity type (Sole Prop, C-Corp, S-Corp, LLC, General Partnership, etc.) and why it’s important to carefully select the type that’s right for you.

Alvarez will also be including other tax saving tips for individuals.

SouthShore Community Bank - Apollo Beach Branch is located on 5998 US Highway 41 N., Ste A.
SouthShore Community Bank - Sun City Center Branch is located on 131 South Pebble Beach Blvd.

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Organizing Your Personal Financial and Tax Records Pays Off

Posted on Sunday, 8th February 2009 by Jose A. Alvarez, CPA

As we are a full month into 2009, I wonder how you are doing with any resolutions you may have made.  It seems every year I have a couple of clients tell me they need to get organized.

With tax season upon us, I thought I would be a good idea to provide advice on how to organize your personal financial records. Of course, businesses will have much stricter recordkeeping and document retention requirements.  Keeping track of your financial records will pay off in the long run and accomplish the following: (more…)

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New Mileage Rate Deductions for 2009

Posted on Wednesday, 7th January 2009 by Jose A. Alvarez, CPA

If you use your vehicle for work, medical purposes or moving, be aware of changes to the amount you can deduct for your mileage in 2009. You have the option of deducting the actual expenses, or you can use the standard optional mileage rate posted by the Internal Revenue Service.

In one of our blog post from last August, the IRS had increased the business mileage from 50.5 cents to 58.5 cents in the second half of 2008. The new rate starting in January 2009 will be 55 cents a mile. The 2009 rate for moving or medical costs will also decrease from 27 cents a mile down to 24 cents a mile. In 2008, the IRS unconventionally increased the rates for the second half of the year due to the surge in gasoline prices. The 2009 mileage rates “reflect generally higher transportation costs compared to a year ago, but the rates also factor in the recent reversal of rising gasoline prices,” according to an IRS spokesperson. If you are using your vehicle for charity work, the rate will remain at 14 cents per mile.

For more complete details, please visit this page on the IRS Website:  2009 Standard Mileage rates.

If you need more information on how this effects you personally, or to learn about other possible tax deductions you can claim, please feel free to email me or give us a call to schedule an appointment.

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18 Tips to help your business through the economic crisis.

Posted on Monday, 1st December 2008 by Jose A. Alvarez, CPA

Financial Crisis - courtesy of flickr.com/photos/44534236@N00/
The following article is adapted from a press release provided by the American Institute of CPAs.

The recent credit crisis is just a reminder of the importance and benefits of having a sound strategy that you can use to navigate through turbulent times. Don’t hesitate to contact a qualified Certified Public Accountant for objective guidance in helping you make intelligent financial decisions for the future of your business.

In the meantime, below are some tips to help you assess your current financial condition and start rethinking your business plan to face the current economic challenges you may find yourself in right now. (more…)

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IRS increases business mileage deductions.

Posted on Thursday, 14th August 2008 by Jose A. Alvarez, CPA

Effective July 1, 2008, the standard mileage rate deductible for Business purposes increases from the current 50.5¢ per mile to 58.5¢ per mile. That can add up to a significant tax deduction but you have to keep written records that can prove the business purpose for miles claimed.

If you only average 100 miles a week (5,200 miles per year), that would give you approximately $3000 worth of deductions per year that could lower your tax bill about $750 at a 25% marginal tax rate.  Depending on the number of business miles and your circumstances, the deduction and tax benefit could change.

If you forget to note the mileage for a particular trip, you can easily calculate by using the Google Maps or Mapquest features for directions which will calculate the mileage. For frequently used destinations, just keep a list of the roundtrip mileage and you don’t have to note the odometer start/end mileage readings.

You also need to keep track of the ALL the miles put on the vehicle(s) from January 1 through December 31. The easiest way to do this is by noting your odometer reading at the end of each year and then you only need keep track of actual business miles (also, keep track of “commuting” miles if you regularly commute to a worksite as an employee).

Also, effective July 1st, 2008 for personal deductions:

The medical (e.g., doctor visits) and moving mileage rates are increasing to 27¢ per mile.

The mileage rate for charitable purposes remains at 14¢ per mile.

Remember, track those miles! You’re going to continue paying for the high price of gas regardless. For a little more effort, why not have the IRS help offset some of your increased fuel costs?  The standard mileage deduction takes the place of the actual deductions (gas, repairs, insurance, depreciation on the vehicle, etc.) and it keeps you from having to keep back up receipts if you choose to go this route.

Best regards,

José A. Alvarez
jalvarez@alvarezcpa.com

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