All insights by: Kruggel Lawton CPAs

Small Businesses: Stay Clear of a Severe Payroll Tax Penalty

One of the most laborious tasks for small businesses is managing payroll. But it’s critical that you not only withhold the right amount of taxes from employees’ paychecks but also that you pay them over to the federal government on time. If you willfully fail to do so, you could personally be hit with the Read More »

3rd Quarter CFO Survey Indicates Businesses Holding Steady

The third quarter 2019 Michiana Benchmark Business Index (BBI), compiled by the certified public accounting and consulting firm of Kruggel Lawton CPAs, showed improvement for the second straight quarter after reaching its lowest level ever in the first quarter of 2019. The overall third quarter BBI was 54.78 out of a maximum possible score of Read More »

Chances of an IRS Audit are Low But Business Owners Should Be Prepared

Many business owners ask: How can I avoid an IRS audit? The good news is that the odds against being audited are in your favor. In fiscal year 2018, the IRS audited approximately 0.6% of individuals. Businesses, large corporations and high-income individuals are more likely to be audited but, overall, audit rates are historically low. Read More »

When Nonprofits Need To Register In Multiple States

Many not-for-profit organizations use fundraising methods that cross state boundaries. If your nonprofit is one of them, it may need to register in multiple jurisdictions. But keep in mind that registration requirements vary — sometimes dramatically — from state to state. So be sure to determine your obligations before you invest time and money in Read More »

2019 Q4 Tax Calendar: Key Deadlines For Businesses and Other Employers

Here are some of the key tax-related deadlines that apply to businesses and other employers during the final quarter of 2019. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. October 15 Final Read More »

Why Kruggel Lawton Is Going Over the Edge

At Kruggel Lawton, we work hard to serve our KLients, not just as your accountants, but as active members of our community. That’s why KL is participating in Youth Service Bureau’s Over the Edge event on October 4, 2019. YSB’s Street Outreach team has highlighted the impact YSB is making in our community. This story Read More »

Business Valuation: What Steps To Take Before Buying A Business

With today’s fast pace in business, there are times when we are presented with opportunities that seem good at face value, but it’s worth taking the time to check in and do your research before making a big decision. This is especially true when you’re presented the opportunity to buy a business. Make sure that Read More »

Kruggel Lawton Introduces a New Online Payment Method

Kruggel Lawton is pleased to announce an easy, convenient, and secure on-line system for our KLients to make payments on their accounts. We have recently partnered with QuickFee, a service established in 2016 that specializes in online secure payment options for CPA firms. Because of QuickFee’s long-term history and specialization of serving CPA firms, Kruggel Read More »

Pick the Right Retirement Plan for Your Business

If you’re a small business owner or you’re involved in a start-up, you may want to set up a tax-favored retirement plan for yourself and any employees. Several types of plans are eligible for tax advantages. 401(k) plan One of the best-known retirement plan options is the 401(k) plan. It provides for contributions made at Read More »

Should You Elect S Corporation Status?

Operating a business as an S corporation may provide many advantages, including limited liability for owners and no double taxation (at least at the federal level). Self-employed people may also be able to lower their exposure to Social Security and Medicare taxes if they structure their businesses as S corps for federal tax purposes. But Read More »

Are Office Snacks Taxable Benefits?

QUESTION: Our break room has a refrigerator stocked with drinks that are available to everyone at the office, including guests. We also usually have cookies and other treats available. Are these snacks taxable benefits that we need to track? That would be a lot of trouble for a small benefit (and it would really undermine Read More »

Accountable Plans Save Taxes for Staffers and Their Employers

Have staffers complained because their expense reimbursements are taxed? An accountable plan can address the issue. Here’s how accountable plans work and how they benefit employers and employees. Be reasonable Under an accountable plan, reimbursement payments to employees will be free from federal income and employment taxes and aren’t subject to withholding from workers’ paychecks. Read More »

You Can Claim Your Foster Pet on Your Taxes

If you’ve ever fostered a pet, you know the costs can add up: food, toys to keep them entertained, maybe they need grooming or you have to kennel them for a trip, and probably a vet bill or two before your fuzzy little ward finds his forever home. But you foster anyway, because animals that Read More »

Businesses Can Utilize the Same Information IRS Auditors Use

The IRS uses Audit Techniques Guides (ATGs) to help IRS examiners get ready for audits. Your business can use the same guides to gain insight into what the IRS is looking for in terms of compliance with tax laws and regulations. Many ATGs target specific industries or businesses, such as construction, aerospace, art galleries, child Read More »

Results from Survey of Regional CFOs Rises Slightly in 2nd Quarter

The second quarter 2019 Michiana Benchmark Business Index (BBI), compiled by the certified public accounting and consulting firm of Kruggel Lawton CPAs, recovered slightly after reaching its lowest level ever in the first quarter of this year. The overall second quarter BBI was 53.01 out of a maximum possible score of 100, an increase of Read More »

Deducting Business Meal Expenses Under Today’s Tax Rules

In the course of operating your business, you probably spend time and money “wining and dining” current or potential customers, vendors and employees. What can you deduct on your tax return for these expenses? The rules changed under the Tax Cuts and Jobs Act (TCJA), but you can still claim some valuable write-offs. No more Read More »

Business Expenses You Can and Can’t Write Off

If you read the Internal Revenue Code (and you probably don’t want to!), you may be surprised to find that most business deductions aren’t specifically listed. It doesn’t explicitly state that you can deduct office supplies and certain other expenses. Some expenses are detailed in the tax code, but the general rule is contained in Read More »

2019 Q3 Tax Calendar: Key Deadlines For Businesses and Other Employers

Here are some of the key tax-related deadlines that apply to businesses and other employers during the second quarter of 2019. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing Read More »

Why You Should Run Your Nonprofit Like A Business

It’s a well-known truism in the corporate world: Organizations that don’t evolve run the risk of becoming obsolete. But instead of anticipating and reacting to market demands like their for-profit counterparts, many nonprofits hold on to old ideas about how their organizations should be run. Here are a few things your nonprofit can learn from Read More »

Eight Reasons to Outsource Your Accounting Functions

When I talk to clients about outsourcing their accounting functions, I often get a lot of questions. Won’t it be more expensive? Will someone outside our business really know the details of our finances? Won’t I have more liabilities and be at a higher risk to make mistakes? These are all valid concerns. Here are Read More »

Fight Occupational Fraud With Five Pillars of Internal Controls

Fraud never seems to go out of style — and much of it comes from within. Internal fraud, also known as occupational fraud, is defined by the Association of Certified Fraud Examiners (ACFE) as “the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the organization’s resources or assets.” The Read More »

Latest Survey of Regional CFOs Hits Its Lowest Level

The first quarter 2019 Michiana Benchmark Business Index (BBI), compiled by Kruggel Lawton, reached its lowest level since the survey began over eight years ago. The overall BBI was 51.86 out of a maximum possible score of 100, a decrease of over 11 percent from the fourth quarter of 2018. Kruggel Lawton conducts this confidential Read More »

2019 Q2 Tax Calendar: Key Deadlines For Businesses and Other Employers

Here are some of the key tax-related deadlines that apply to businesses and other employers during the second quarter of 2019. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing Read More »

SSA Sending Mismatch Letters to Employers

The Social Security Administration (SSA) recently announced that it is mailing “Employer Correction Request Notices” to employers and third-party submitters with at least one 2018 Form W-2 where the name and Social Security number (SSN) do not match the SSA’s records. The notice informs the employer that corrections are needed. While receiving the notice does Read More »

IRS Expands Penalty Waiver for Underwithholding

Back in January we told you about an IRS announcement which generally waived the penalty for any taxpayer who paid at least 85 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments or a combination of the two. There is more good news to share because Read More »

Tidying Up for Tax Time

There’s a good chance you’ve heard of Marie Kondo by now. Her book and popular Netflix show, “The Life Changing Magic of Tidying Up,” have become a worldwide phenomenon. Kondo has gotten millions of people to keep only the items in their home that “spark joy” by giving them guidance on getting rid of the Read More »

Benefit Plan Sponsors: Trends To Watch in 2019

Last year brought many challenges to the employee benefits world: wide-ranging tax reform; European controls on electronic data protection; a divided United States Congress; market fluctuations; and persistently low unemployment, among others. As plan sponsors outline their strategies and approaches for 2019, they need to be mindful of how these and other developing trends will Read More »

Eight Key Tax Planning Opportunities for 2019

More than a year after sweeping federal and state tax reform were enacted, businesses of all sizes are still wrapping their arms around the changes. Additional guidance and regulations have been issued nearly every month—indeed, change is the new normal. Strategic tax planning now is key to lowering businesses’ total tax liability. Read on for Read More »

Five Business Productivity Killers – and How to Slay Them

If you feel that business is harder today, you’re not alone. In addition to rising regulatory obligations and relentless technological change, the ability to attract and retain top talent has never been more difficult. To compete and thrive in this environment, businesses need to optimize their finance and accounting practices, and that means tackling challenges Read More »

Employer Tax-Related Limit Increases for 2019

A variety of tax-related limits affecting businesses are annually indexed for inflation, and many have gone up for 2019. Here’s a look at some that may affect you and your business. Deductions Section 179 expensing: Limit: $1.02 million (up from $1 million) Phaseout: $2.55 million (up from $2.5 million) Income-based phase-ins for certain limits on Read More »

How to Calculate Nondeductible Employee Parking Expenses

Employer business deductions for qualified transportation fringes ended in 2018. The 2017 tax reform known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, amended Sec. 274(a)(4) by eliminating employer business deductions for employee qualified transportation fringe (QTF) benefit expenses, including qualified parking, mass transit and van pool benefits (although such benefits continue to Read More »

Top 10 Property Tax Myths

Are you missing an opportunity to reduce your property tax liability? Nearly all local taxing jurisdictions, including municipalities, counties, and boards of education, generate tax revenue through the imposition of property tax, which is one of the most substantial sources of local government revenue. For many businesses, property tax is the largest state and local Read More »

Survey of CFOs Shows Resilience in Regional Economy

The fourth quarter 2018 Michiana Benchmark Business Index (BBI), compiled by the certified public accounting and consulting firm of Kruggel Lawton CPAs, reversed a downward slide of two straight quarters. The overall BBI was 58.64 out of a maximum possible score of 100, an increase of over five percent from the third quarter of 2018. Read More »

How the Government Shutdown Affects the IRS

Due to the lapse in appropriations that began midnight December 22, 2018, the federal government is in its fourth week of a partial shutdown, which includes much of the Internal Revenue Service (IRS). Indeed, although the IRS is working with a skeleton staff of excepted employees, most employees are not working during the shutdown. While Read More »

2019 Q1 Tax Calendar: Key Deadlines For Businesses and Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2019. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. January Read More »

Moved to a New State? Be Prepared for a Residency Audit

You’ve said your goodbyes, packed up all your boxes, and the moving truck is waiting outside. Soon you’ll be heading to a new home in a new state. Chances are, you probably haven’t given much thought to what this means for taxes. But you can bet that your new state will be glad to see Read More »

Fourth Quarter Tax Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2018. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. October Read More »

Now’s the Time to Review Your Business Expenses

As we approach the end of the year, it’s a good idea to review your business’s expenses for deductibility. At the same time, consider whether your business would benefit from accelerating certain expenses into this year. Be sure to evaluate the impact of the Tax Cuts and Jobs Act (TCJA), which reduces or eliminates many Read More »

Gauge of Regional Economy Declines Further in 3rd Quarter

The third quarter 2018 Michiana Benchmark Business Index (BBI), compiled by the certified public accounting and consulting firm of Kruggel Lawton CPAs, decreased for the second straight quarter. The overall BBI was 55.59 out of a maximum possible score of 100, down over six percent from the second quarter of 2018. Kruggel Lawton conducts this Read More »

Manufacturers Not Immune from Wayfair’s Sales Tax Impact

Earlier this summer, the U.S. Supreme Court ruled in the landmark case South Dakota vs. Wayfair that the “physical presence test” for determining if a seller is required to administer sales taxes is “incorrect.” States may now legally require sellers to administer sales taxes, even if the seller has no in-state physical presence. The case Read More »

Answers to Frequently Asked Wayfair Questions

The U.S. Supreme Court’s Wayfair decision issued June 2018 is one of the most significant changes to state tax in more than 50 years. States may now subject a business to state taxes even if the business has no in-state physical presence. While the implications for businesses are broad and complex, the most commonly asked Read More »

Preparing for Your First Employee Benefit Plan Audit

Growing beyond 100 employees is an important landmark in a company’s history. While companies may view crossing this threshold as cause for celebration, the Department of Labor (DOL) may view it as a trigger for increased scrutiny of your employee-benefit plan. Certain employee benefit plans with 100 or more eligible participants may be required to engage an Read More »

How to Reduce the Tax Risk of Using Independent Contractors

Classifying a worker as an independent contractor frees a business from payroll tax liability and allows it to forgo providing overtime pay, unemployment compensation and other employee benefits. It also frees the business from responsibility for withholding income taxes and the worker’s share of payroll taxes. For these reasons, the federal government views misclassifying a Read More »

Tips for Tailgating Safety

To some, Labor Day weekend signals the end of summer and the last hurrah. To others, it’s the beginning of the best time of the year. The temperature starts to drop, the leaves slowly change colors, and the aroma of burgers and beer fills the air. It’s football season! With football season comes tailgating. We Read More »

Understanding the New Sec. 199A Business Income Deduction

What the Qualified Business Income Deduction Means to Business Tax reform legislation included a number of provisions of interest to partnerships and their partners including the Section 199A deduction for qualified business income of pass-through entities for tax years beginning after December 31, 2017. What is Section 199A deduction? Section 199A generally provides taxpayers other Read More »

Fees For 401(K) Services: What Plan Sponsors Need To Know

Political candidates who don’t know the cost of a gallon of gas or a movie ticket usually wind up paying that price with voters and losing on election day. Likewise, many plan sponsors are finding themselves on the losing side of lawsuits because they allowed their defined contribution plan to pay unreasonable service fees. Plaintiff’s Read More »

Gauge of Regional Economy Cools Off in 2nd Quarter

The second quarter 2018 Michiana Benchmark Business Index (BBI), compiled by the certified public accounting and consulting firm of Kruggel Lawton CPAs, decreased for the April-May-June period. The overall Benchmark Index was 59.38 out of a maximum possible score of 100, down over five percent from the first quarter of 2018. Prior to this quarter’s Read More »

Timeline to Begin Collecting Sales Tax for Out-of-State Online Sales

You’ve probably heard about the recent U.S. Supreme Court decision allowing state and local governments to impose sales taxes on more out-of-state online sales. The ruling in South Dakota v. Wayfair, Inc. is welcome news for brick-and-mortar retailers, who felt previous rulings gave an unfair advantage to their online competitors. And state and local governments Read More »

Have You Received an IRS 5263C Letter? What You Need To Do!

We have all grown more suspicious of emails, letters and phone calls – for fear that it could be a scam. But fear not if you receive an Internal Revenue Service (IRS) 5263C letter. These letters are going out to businesses and will be identified in the upper right hand corner as “Letter Number: LTR5263C.” Read More »