Do-It-Yourself Bankruptcy - Should You Consider It?

Many years ago, my friend Sam owned a rental business. After a year, he realized he wasn’t going to make it and that he would have to go out of business. Rather than go through a formal bankruptcy process, either Reorganization (Chapter 11) or Liquidation (Chapter 7), he decided to do it himself. He was basically doing a liquidation bankruptcy. The Do-It-Yourself Process * First, he closed the doors... [Read More]

Man Arrested for Setting up Fake IRS Free File Sites

A 23-year-old Russian has been arrested for stealing about $105,000 in tax refunds after he set up a set of fraudulent Web sites that claimed to prepare taxes for free. Maxim Maltsev of Novosibirsk, Russia, who resided in San Diego between May 26, 2006, and Sept. 27, 2006, was arrested last Wednesday upon his arrival in the U.S. at Los Angeles International Airport. Maltsev was charged in a sealed... [Read More]

Your First Business Tax Return

It’s your first year in business, and tax time has arrived. How does the new business owner prepare for getting those returns filed accurately, timely and achieving the most favorable results for the business? Review the form completely First, take a look at a copy of the business tax return you will file to see what line items on the return the government expects you to fill in with amounts. Also,... [Read More]

Crushed by Taxes? Little Known Steps SMBs Can Take

Now that the dust has almost settled on the 2009 tax filing season, small business owners who are already hard-pressed by the economy have something else to worry about: a knock on the door from an Internal Revenue Service agent. More likely the “knock” will come in the form of a letter, but for an increasing number of small business owners, audits and examinations are a growing fact of... [Read More]

2009: Keep More Cash!

Key strategies for maximizing your deductions and holding on to the cash your business needs. When your accountant prepares your business tax, you may feel a bit like Bill Murray’s character in Groundhog Day, only this time forced to relive the indignities of 2008 again and again. Yes, last year was a bummer for many American entrepreneurs. But like Murray’s cynical weatherman, you have... [Read More]

Putting Money Into Your Startup Business

What is the Best Way to Do That? You are starting a business and you need to put some money in the business - call it “seed money” if you want. What is the best way to account for that money? Should it be a loan or an investment? My post last week about a Tax Court case involving a loan to a business (that turned out not to be a loan) got me to thinking about this subject. Even if you don’t... [Read More]

10-Point Tax Return Checklist

You finally finished your taxes. But before you drop your return in the mailbox or hit the “send” button, do a last-minute review to ensure it’s really ready to go. If you use tax preparation software to complete your forms, the program should help you catch some of these oversights. But if you’re one of the millions who still sends paper forms, you need to pay special attention... [Read More]

Tax Tips for an Economic Slump

Here are some answers to common questions about taxes for consumers: The economy has many taxpayers wondering about special circumstances involving the loss of a job, home foreclosure, and other pressing money matters. Here are answers to some common questions provided by the IRS. What if I can’t pay my taxes? Don’t panic. If you cannot pay the full amount of taxes you owe by Apr. 15,... [Read More]

Advice for Tax Procrastinators

For last-minute filers who run their own businesses, tips for reducing liability, making the most of online services, and classifying expenses properly. Tax procrastinators take heart: You’re not alone, and there’s no need to panic. Gather your paperwork, download your online records, and take a deep breath. You’ve still got time before Apr. 15 rolls around. Before you double-check... [Read More]

Last-Minute Small-Business Tax Tips

We get it, you’re busy. But you still have to deal with the tax man. Here’s some help. Uncle Sam is calling, and cash and time are in short supply. Entrepreneurs have plenty on their plates this tax season without having to ferret out every last loophole in the tortuous U.S. Tax Code. With less than two weeks left before April 15, we can only hope you’ve secured a competent accountant,... [Read More]