All insights by: Kruggel Lawton CPAs

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 »

Value-added Budgeting for Nonprofit Organizations

While the need for improved budgeting is obvious for many organizations, numerous budget models, theories, and ideas tend to prevent any concrete clarity in which direction to go. This tends to lead to an organization trying one model one year, finding out it doesn’t create value, and trying something else the next year. This can Read More »

Tax Law Changes and Your Business’s 401(k) Plan

When you think about recent tax law changes and your business, you’re probably thinking about the new 20% pass-through deduction for qualified business income or the enhancements to depreciation-related breaks. Or you may be contemplating the reduction or elimination of certain business expense deductions. But there are also a couple of recent tax law changes Read More »

Supreme Court Rules in Internet Sales Tax Case

On June 21, 2018, the Supreme Court of the United States issued its widely anticipated decision in South Dakota v. Wayfair, et al. No. 17-494. In a 5-4 decision, the Court held that the physical presence requirement for state tax jurisdiction is incorrect and not a requirement under the Commerce Clause of the U.S. Constitution. Read More »

2018 Q3 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 third 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. July Read More »

Three Ideas for Recruiting Nonprofit Volunteers

Most charitable not-for-profits have a never-ending need for volunteers. But finding new ones can be time-consuming — and volunteer searches aren’t always successful. Here are three recruitment ideas that can help. 1. Look nearby Is your nonprofit familiar to businesses, residents and schools in the surrounding community? People often are drawn to volunteer because they Read More »

Does Your Nonprofit Properly Report Donations?

Your nonprofit profit probably already ensures that donors receive a receipt with information about claiming a charitable contribution deduction on their tax return. But your obligations may go further than that. For noncash donations, you might have responsibilities related to certain tax forms. Form 8283 for donors When filing their tax returns, donors must attach Read More »

Is Your Nonprofit’s Income Sponsorship or Advertising?

Many nonprofits supplement their usual income-producing activities with sponsorships or advertising programs. Although you’re allowed to receive such payments, they’re subject to unrelated business income tax (UBIT) unless the activities are substantially related to your organization’s tax-exempt purpose or qualify for another exemption. So it’s important to understand the possible tax implications of income from Read More »

Financial Sustainability and Your Nonprofit

If your nonprofit organization relies heavily on a few funding sources — for example, an annual government or foundation grant — what happens if you suddenly lose that support? The risk may be compounded if you generally spend every penny that comes in the door and fail to build adequate reserves. Bottom line: If your Read More »

Hiring Your Child for the Summer Could be a Tax Benefit

If you own a business and have a child in high school or college, hiring him or her for the summer can provide a multitude of benefits, including tax savings. And hiring your child may make more sense than ever due to changes under the Tax Cuts and Jobs Act (TCJA). How it works By Read More »

QuickBooks Desktop 2015 Service Discontinuation

An important reminder for all QuickBooks Desktop 2015 users. After May 31, 2018, access to add-on services will be discontinued for all versions (Pro, Premier, Enterprise Solutions, Accountant Edition) of QuickBooks Desktop 2015 (Windows and Mac). If you do NOT use any of the add-on services in QuickBooks Desktop 2015, your product will continue to work Read More »

IRS Audit Red Flags

IRS examiners use Audit Techniques Guides (ATGs) to prepare for audits — and so can business owners. Many ATGs target specific industries, such as construction. Others address issues that frequently arise in audits, such as executive compensation and fringe benefits. These publications can provide valuable insights into red flags that might surface if your business Read More »

South Bend Regional Economy Continues to Show Improvement

The first quarter 2018 Michiana Benchmark Business Index (BBI), compiled by Kruggel Lawton CPAs, increased for the fourth straight quarter. The overall BBI was 62.77 out of a maximum possible score of 100, up over two percent from the first quarter of 2017. Kruggel Lawton conducts this confidential survey of CFOs in for-profit companies in Read More »

Financial Controller vs CFO – Which One Do I Need?

It is not surprising that many presidents, CEOs, and business owners struggle to understand the difference between the role of a controller and chief financial officer (CFO). After all, the two unique skill sets commonly become blurred, especially in many smaller companies where administrative costs are kept as low as possible. However, the differences between Read More »

Businesses Should Plan to Reimburse for Employee Expenses

Prior to the Tax Cuts and Jobs Act, which went into effect January 1, 2018, unreimbursed work-related expenses were generally deductible on an employee’s individual tax return as a miscellaneous itemized deduction (Schedule A) if they exceeded 2% of an individual’s AGI. Starting in 2018, these deductions will be eliminated for tax years through 2025. Read More »

Second Quarter Tax Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the second 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. April Read More »

Help for DC Plan Sponsors with Missing Participants

The Pension Benefit Guaranty Corporation (PBGC) is helping defined contribution (DC) and other plan sponsors looking to terminate their plans by expanding its Missing Participants Program. For more than 20 years, the program has been available to PBGC-insured single employer defined benefit (DB) plans only. Now, the final rule, published in the Federal Register on December 22, Read More »

Tax Reform Planning Checklist for Businesses

As the biggest change to the tax code in a generation, the new tax regime will have broad implications on both businesses and the people behind them. But what does the new law really mean for your business and your industry both now and in the years to come? As we near the 100th day Read More »

Indiana S Corps Receiving Balance-Due Notices

Any S corporation doing business in Indiana and deriving gross income from sources within Indiana must file an annual return, Form IT-20S, with the Indiana Department of Revenue (DOR). Over the last month or so, Indiana taxpayers have been receiving notices after filing their IT-20S disallowing the credit for nonresident withholdings even though the payment Read More »

Don’t forget: March 15 Tax Filing Deadline for Pass-Through Entities

When it comes to income tax returns, April 15 (actually April 17 this year, because of a weekend and a Washington, D.C., holiday) isn’t the only deadline taxpayers need to think about. The federal income tax filing deadline for calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for Read More »

Indiana Diesel Buyers May be Eligible for a Tax Refund

Changes to Indiana law that were designed to sustain the state’s road funding went into effect July 1, 2017. Part of this law relates to the International Fuel Tax Association (IFTA) tax. The law places a 21-cent-per-gallon Motor Carrier Surcharge Tax that is included in the price at Indiana pumps, but only for “special fuels” Read More »

Reduced Tax Benefits for Meals & Entertainment in 2018

Meals, entertainment and transportation may cost businesses more under the TCJA Along with tax rate reductions and a new deduction for pass-through qualified business income, the new tax law brings the reduction or elimination of tax deductions for certain business expenses. Two expense areas where the Tax Cuts and Jobs Act (TCJA) changes the rules Read More »

What to Do Now That 2017 Tax Extenders Have Finally Passed

It is February 9, 2018, the snow is falling, and we are in the midst of a very busy 2018 tax season that just keeps getting more interesting. This morning President Trump signed a budget bill that was written to keep the federal government’s lights on until March 23. It seems that “long-term” for Washington Read More »

What Nonprofits Need To Know About the New Tax Law

The number of taxpayers who itemize deductions on their federal tax return — and, thus, are eligible to deduct charitable contributions — is estimated by the Tax Policy Center to drop from 37% in 2017 to 16% in 2018. That’s because the recently passed Tax Cuts and Jobs Act (TCJA) substantially raises the standard deduction. Read More »

Navigating the Benton Harbor City Income Tax

On November 7, 2017, the City of Benton Harbor (the “City”) joined 22 other cities in the State of Michigan by initiating a city income tax, under the City Income Tax Act of 1964, which took effect January 1, 2018. Impact on Individuals All domiciled residents of the City will be required to file an Read More »

CFOs in the Region Bullish on Business Outlook

The 4th quarter 2017 Michiana Benchmark Business Index (BBI) compiled by the certified public accounting and consulting firm of Kruggel Lawton CPAs increased for the third straight quarter. The overall Benchmark Index was 61.33 out of a maximum possible score of 100, up slightly from the 3rd quarter. Kruggel Lawton conducts this confidential survey of Read More »

Charitable IRA Rollovers More Popular Under Tax Reform

Much has been written and discussed about charitable deductions in light of the recently passed Tax Cuts and Jobs Act (TCJA). With the increased standard deduction of $12,000 (single) and $24,000 (married filing jointly) and other limitations on itemized deductions under the TCJA, fewer taxpayers will benefit from itemizing on their individual income tax returns Read More »

Valuable Deduction for Pass-Through Businesses

Although the drop of the corporate tax rate from a top rate of 35% to a flat rate of 21% may be one of the most talked about provisions of the Tax Cuts and Jobs Act (TCJA), C corporations aren’t the only type of entity significantly benefiting from the new law. Owners of noncorporate “pass-through” Read More »

Arriving in Mailboxes: ACA Penalty Letters

The IRS has begun notifying Applicable Large Employers (ALE) of potential penalties under the Affordable Care Act for tax year 2015. These penalties are more commonly referred to as “Employer Shared Responsibility Payments” or ESRPs. Starting in 2015, ALEs were required to offer their full-time employees minimum essential health insurance coverage. An ALE is generally Read More »

How to Manage Travel and Entertainment Expenses

Whether you’re taking a client out to dinner or attending a conference, the costs of those activities can add up quickly. Good record keeping for travel and entertainment (T&E) expenses is key in order to take advantage of any possible tax deductions for your business. Saving receipts for all activities is just one piece of Read More »

Tax Reform Bill Signed by the President- What it Means for You

Earlier today, Friday, December 22, President Donald Trump signed the GOP tax bill into law. The conference report was agreed to by the House and Senate conferees last week and reflects the resolved differences between the House bill and the Senate amendment.  While the final compromise looks more like the Senate bill, it reflects many Read More »

Year-End Tax Planning Recommendations

With tax reform moving full speed ahead, there are a number of planning ideas to consider before we wrap up 2017. The biggest push is to defer income and accelerate deductions before the end of the year. This is because there are significant savings that could be achieved when you consider the proposed tax rate change from Read More »

House and Senate Reach Tax Reform Compromise

On December 13, 2017, House and Senate Republicans reached a compromise on tax reform legislation, the “Tax Cuts and Jobs Act.” The compromise bill reportedly includes agreements on corporate and individual tax rates, the treatment of pass-through income, the estate tax, and itemized deductions such as those for mortgage interest and state and local taxes, Read More »