November 14, 2022
Here’s what you should know about an IRS audit: The IRS generally has three years from the date taxpayers file their returns to assess any additional tax for that tax year. Thus, if the IRS audits you, the audit would likely occur within 3 years from the date your tax return was filed. There are...Read More →
Accounting-in-a-Box welcomes Probity Tax Recovery, expanding service offerings to R&D Tax Credits
July 26, 2022
Accounting-in-a-Box is pleased to welcome Probity Tax Recovery to its network of member firms, expanding service offerings to Research and Development (“R&D”) tax credits. Probity Tax Recovery is a Houston based tax consulting firm specializing in tax credits and incentives for small and midsize businesses across the United States. The Probity team works alongside businesses’...Read More →
Does the IRS pay interest on refunds?
February 25, 2022
Normally, the IRS is required to pay interest on a refund if the refund is issued after a statutory period. By law, the interest rate on both overpayment and underpayment of tax is adjusted quarterly. The IRS announced this week that interest rates will increase for the calendar quarter beginning April 1, 2022. The rates...Read More →
January 30, 2022
In the event you need to work with the IRS on a personal tax matter including, but not limited to, filing a return, paying taxes, responding to a letter, going through an audit or appealing an IRS decision, you can expect the following rights: 1. The Right to Be Informed 2. The Right to Quality...Read More →
Earn-outs in Selling Your Business
September 16, 2021
What is an earn-out? An earn-out is a contingent portion of the purchase price of an acquisition determined post-closing based on the target company’s performance against certain contractually defined criteria or benchmarks. Typically, payments to the seller would be structured so that part of the purchase price will be paid at closing, followed by a...Read More →
Are business owner wages qualified for Employee Retention Credit?
August 9, 2021
A few weeks ago, Forbes published an article highlighting the fundamental misunderstandings about the Employee Retention Credit (ERC) and the reason why small and mid-sized businesses are missing out on billions of dollars. The latest guidance that the IRS issued last week illustrates how confusing this tax credit is and why many CPAs and business...Read More →
How often should you update your business valuation?
June 15, 2021
Any private company that issues equity-based compensation to U.S. employees (and advisors) would need to comply with Section 409A of the U.S. Internal Revenue Code, which essentially requires, among other things, that stock options and other equity incentives issues are not priced below fair market value when issued. How often do companies need to update...Read More →
Employee Retention Credit (ERC) and What To Consider
April 26, 2021
Per a recent survey conducted by AICPA, 12% of respondents planned to take advantage of Employee Retention Credit (ERC) while 24% planned to apply for a PPP loan in 2021. Why has ERC become so popular? There are many rules associated with the ERC. Because of its complexity and broad coverage, we do not cover...Read More →
How small businesses can benefit from the recent COVID-related Tax Relief Acts
January 8, 2021
***UPDATE*** The Consolidated Appropriations Act, 2021 (Act) was signed into law on Sunday December 27, 2020. The American Rescue Plan Act was enacted on March 11, 2021. These two bills contain many changes and updates to the previous relief bill for COVID-19, and it would be impossible to cover all of them in one article....Read More →
Looking Back on 2020 with Dao CPA, P.C.
December 24, 2020
As 2020 draws to a close, we finally have a moment to look back and reflect on such an unprecedented year. Even with all the challenges it has presented, we feel encouraged and inspired! This year, more than ever, has given us the opportunity to reconnect with old friends and to demonstrate that an accounting...Read More →
Are Expenses Paid With PPP Loan Proceeds Tax Deductible?
November 22, 2020
***Update*** Expenses paid with forgiven Paycheck Protection Program (PPP) loan proceeds are tax deductible per the Consolidated Appropriations Act, 2021 that was signed into law on December 27, 2020 . This Act reverses previous guidance from the Treasury and IRS. We will post another article to provide more details. Compiled by Dao CPA PC Staff...Read More →
Great news if you borrowed $50,000 or less in PPP Loans!
October 9, 2020
The federal government announced yesterday major changes to the current PPP loan forgiveness process for those who borrowed $50,000 or less in PPP loans. The borrowers can now use a simpler application, Form 3508S. The changes include: The new application doesn’t require borrowers to show how they calculated their loan forgiveness amount. It appears not...Read More →
Tax credits related to COVID-19 for small businesses
September 30, 2020
**UPDATE** The Consolidated Appropriations Act, 2021, H.R. 133 was signed into law on December 27th. Among many tax provisions, the bill also extends the refundable payroll tax credits for paid sick and family leave voluntarily provided by employers through the end of March 2021. (It was previously set to end 12/31/2020). However, the Act did...Read More →
Why high-net-worth families may benefit from Covid-19?
July 10, 2020
This year, COVID-19 has caused tremendous disruptions to our lives and businesses. Companies have to pivot their operations and put more efforts in planning, not only for short-term but also long-term perspectives. Family businesses start to think hard about their intended transition from the founder generation to their children. At Aspen Valuations, during the last...Read More →
Aspen Valuations Joins Accounting in a Box, Expanding Service Offerings for Businesses With Ties to Canada
July 7, 2020
Accounting in a Box is pleased to welcome Canada-based Aspen Valuations Inc. to its network of independent firms, allowing for enhanced services to U.S. clients with subsidiaries and operations in Canada, especially within the energy sector. Aspen Valuations Inc. is a boutique firm with offices in both Calgary and Vancouver that specializes in business valuation,...Read More →
PPP Flexibility Act
June 7, 2020
The much anticipated bill, Paycheck Protection Program Flexibility Act of 2020 was signed into law on Friday, June 5th, 2020. The new law provides for greatly expanded flexibility for PPP debt forgiveness by 1) extending the period during which eligible costs will be forgiven, 2) relaxing restrictions with respect to non-payroll costs, 3) extending the...Read More →
Status of Your Stimulus Payment
April 26, 2020
Millions of Americans have already received their stimulus payments authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The IRS continues to calculate and automatically send the payments to most eligible individuals, however some may have to provide additional information to the IRS to get their payments. You may be eligible to...Read More →
Should you amend your 2018’s tax return?
March 30, 2020
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020 as part of a $2.2 trillion aid package. Some parts of the bill do not require you to take any action such as the ‘stimulus check’ for eligible individuals ($2,400 for joint filers, $500 per qualifying child). However,...Read More →
IRS Tax Payment and Filing Deadline Extended to July 15, 2020 Due to COVID-19
March 18, 2020
The IRS today issued guidance allowing all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest. The guidance also allows corporate taxpayers a similar deferment of up to $10 million of...Read More →
How To Select Accounting Software for Construction Contractors
October 11, 2019
There is no one best software for all contractors. Although QuickBooks is known as the most popular software among the smaller-sized businesses, many contractors are still searching for alternatives. QuickBooks users find the software easy to use and affordable. However mid-size self-perform contractors opt for more expensive software because the software gives them detailed job...Read More →
Bookkeeping and Accounting – what are the differences?
October 11, 2019
Years ago when accounting software for small businesses was not as popular, the roles of a bookkeeper and an accountant were distinctively different. A bookkeeper typically handles and records daily transactions such as paying bills, creating invoices, collecting payments, making deposits, managing timesheets for payroll, reconciling bank accounts etc. Records kept by a bookkeeper reflect...Read More →
How long should you keep your tax returns and supporting documents?
October 11, 2019
In general, the IRS has three years from the due date of the return or the date on which the return was filed, whichever is later, to audit and adjust the return. However, the IRS has six years to audit a return if a person fails to report over 25% of gross income. If a...Read More →