Saturday, September 24, 2011

Cell Phones are a Tax Free Fringe

If an employer provides a cell phone for business reasons, the employee will not be taxed on the business or personal use of the phone. The employee will not have to keep a log of the business and personal calls.
Small business may want to provide cell phone to their spouse or children if they work for the company.
The same theory applies to health insurance assuming an employee/employer relation exist.

Hello to Leslie at the Bruce S concert.

Sunday, September 18, 2011

Another Tax Form to Track Income

For 2011, credit and debit card companies will begin to issue 1099K forms on payments to merchants, and third party networks such as PayPal.
The IRS will begin matching the income on the tax return to spot discrepancies and under reporting.
We always appreciate the IRS helping us keep accurate records. At some point in the future, the IRS will already have your taxable information and will just send you a bill for the tax you owe!