Archive for the Tax Category

It’s time to consider using some strategies that will lower this year’s tax bill. Attached are a few year-end tax planning strategies for individuals and businesses as well as a link to our online tax guide, which is updated regularly. Read the rest of this entry »

Mandatory charges, such as automatic large party gratuities, have been a long misunderstood Washington State Tax issue for the Restaurant Industry.  With the state in need of increased tax revenue, Department of Revenue audits of restaurant operators have been on the rise.  Making sure you are not caught off guard with the treatment of mandatory charges is important. Read the rest of this entry »

Many individuals who receive income from real estate investments may be required to file Form 1099-MISC for rental property expense payments over $600.  The Health Care bill carried some provisions that pertain to 1099-MISC reporting, some or most of which have been relieved by congress.  Read the rest of this entry »

For restaurants in the state of Washington, a vexing part of the Washington State Retail Tax law is the requirement that employers who provide free meals to their employees must pay retail sales tax and B&O tax on the value of the meals.  This has changed with the regular legislative session of 2011 and Senate Bill 5501.

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In light of several email scam reports, we’d like to remind you that the Internal Revenue Service (IRS) and Electronic Federal Tax Payment Systems(EFTPS) will never attempt to contact you via email.

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If you have an ownership interest in or control over foreign bank accounts, security accounts, real estate, corporations, partnerships, trust or other assets, you may have a disclosure requirement.  

U.S. income taxation requires inclusion of all U.S. taxpayer’s worldwide income.  A rental condominium in Whistler, an account established on vacation in Europe, an account your grandparents set-up for you, etc. are all subject to U.S. income taxation and potential information return reporting annually.   Read the rest of this entry »

On December 17, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.  The new law solidifies many parts of the tax law that expired at the end of last year or were scheduled to expire on December 31, 2010.  Here is a rundown of the significant provisions affecting individuals and businesses in 2011.  As always, please consult with your Clothier & Head tax adviser for information specific to your situation. Read the rest of this entry »

The impacts of the Health Care Reform Bill have been widely discussed everywhere from board rooms to dinner tables. The provisions of the new legislation will phase in over several years and additional guidance will be forthcoming on the implementation of the legislation. The following is a summary of the important tax implications of the legislation that will phase-in during the remainder of 2010 and 2011. Read the rest of this entry »

On September 27th, President Obama signed the Small Business Jobs Act of 2010 (HR 5297) into law. The purpose of the bill is to stimulate activity in the small business sector by providing increased access to capital and substantive tax relief. The following is a summary of the important tax implications of the new tax law. Read the rest of this entry »

Background
Under the current general accepted accounting principles (GAAP) standard (FASB 13), leases are categorized as either a capital lease or operating lease.  Critics of this current standard argue that it creates a lack of transparency, as operating leases indeed represent an asset and liability that should be disclosed on a company’s balance sheet.  These non-recorded and non-recognized operating leases could potentially represent significant fixed and contingent liabilities, particularly for retailers.  Read the rest of this entry »