What Kind Of Business Records Should I Keep?

You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes. Your recordkeeping system should also include a summary of your business transactions. This summary is ordinarily made in your business books (for example, accounting journals and ledgers). Your books must show your gross income, as well as your deductions and credits. For most small businesses, the business checkbook is the main source for entries in the business books........

Internal Revenue Service

Insuring Your Home-Based Business

Depending on who is doing the counting, there are anywhere from 10 million to 25 million home-based businesses in the U.S. But there is little disagreement that too few.......

Michigan Association of CPAs

How Much Tax Will I Pay On My Business Income?

Business owners in the start-up phase often ask who much will I owe in taxes? Unfortunately, the answer depends on a number of factors. This FAQ is designed to answer the question in general terms .........

Smbiz.com

Federal Minimum Wagw Hike Impacts Few States

July 20, 2007 (Smart Pros)
— Workers in most states will not be affected by the upcoming increase in the federal minimum wage to $5.85, according to CCH, a Wolters Kluwer business.

Editors Note: Federal rate increases to $5.85 on 7-24-07, but the Michigan rate increased on 7-1-07 to $7.15 and prevails as it is higher

Gambling Winnings And Losses

Your summer vacation may mean a trip to the casino or the racetrack. What will you owe Uncle Sam if Lady Luck happens to be on your side?

Gambling winnings are fully taxable and must be reported on your tax return.

You must file Form 1040 and include all of your winnings. Gambling income includes, among other things, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. You can find more information in Publication 525, Taxable and Nontaxable Income.

Anyone who pays your winnings or awards you a prize is required to issue you a Form W-2G if your winnings are subject to Federal income tax withholding or if your winnings are over a certain amount.

To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show both your winnings and losses.

For more information, refer to Publication 529, Miscellaneous Deductions.

The publications are available at IRS.gov or ordered by calling 800-TAX-FORM (800-829-3676).

Links:
Publication 525, Taxable and Nontaxable Income
Publication 505, Tax Withholding and Estimated Tax
Publication 529, Miscellaneous Deductions

Internal Revenue Service

Warning on Scam E-Mails

Members of the public are receiving phony e-mails falsely claiming to come from the IRS. Take steps to protect yourself.........

Internal Revenue Service

Keeping Good Records

In a tax emergency, would you be ready? Well–organized records not only help you prepare your tax return. They also help you answer questions if your return is selected for examination or prepare a response if you are billed for additional tax.

Fortunately, you don’t have to keep all tax records around forever. There are laws known as statutes of limitations that impact how long you must keep receipts, canceled checks, and other documents that support an item of income or a deduction on your return.

Publications are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Links:
IRS Publication 552, Recordkeeping for Individuals.
IRS Publication 583, Starting a Business and Keeping Records
IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses

Internal Revenue Service

When Paying IRS, Leave No Doubt

Fred A. Windover included a check and his return in the same envelope. The amount of the check was the exact amount due on his return. The IRS applied some of the check to Windover's other past-due amounts and then later assessed penalities for not paying his taxes in full. The Tax Court ruled if a check doesn't specify the tax year, the IRS can apply the funds "in the order of priority that the Service determines will serve its best interest."

The moral? If you owe taxes, write the tax year and form on your check. Better yet, e-file and have the balance due direct-debited from your bank account. That leaves no room for the IRS to lose your check or put it where it doesn't belong.

Joe Kristan Roth & Company CPAs

Savings Strategies for Any Stage in Your Life

Some habits are good – like saving money. While most people would admit that saving money is critical to their financial well-being, many people lack the discipline or...

Understanding the Home Office Deduction Can Lower You Tax Bill

One of the many benefits of working from home is the home-office tax deduction. Home based workers who qualify get to deduct a portion of their expenses related to operating...

Michigan Association of CPAs

New Michigan Business Tax Signed Into Law July 12

Senate Bill 94, creating the new Michigan Business Tax (MBT) was passed by the Senate and House on June 28, and signed by Governor Granholm on July 12. Please continue checking the Treasury and Taxes pages for updates and analysis as it becomes available.

> Granholm Signs Historic Michigan Business Tax into Law> SB 94

Michigan Treasury

Governor Signs MBT Legislation

On July 12, 2007, the Governor signed and approved the enacting legislation for the Michigan Business Tax (MBT). A copy of the approved bill language can be downloaded in PDF format here. The House Fiscal Agency legislative analysis is available...

Michigan Business Tax Bill Language

House Fiscal Agency legislative analysis of Michigan Business Tax Bill


Michigan Assocation of CPAs