Wilson Toellner CPA

A widely circulated article about the COVID-19 pandemic, written by author Tomas Pueyo in March, described efforts to cope with the crisis as “the hammer and the dance.” The hammer was the abrupt shutdown of most businesses and institutions; the dance is the slow reopening of them — figuratively tiptoeing out to see whether day-to-day life can return to some semblance of normality without a dangerous uptick in infections. Many business owners are now engaged in the dance. “Reopening” a company, even if it was never completely closed, involves grappling with a variety of concepts. This is a new kind of strategic planning that will test your patience and savvy but may also lead to a safer, leaner and better-informed business. When to move forward The first question, of course, is when. That is, what are the circumstances and criteria that will determine when you can safely reopen or further reopen your business? Most experts agree that you should base this decision on scientific data and...

One of the most impactful aspects of our firm's COVID-19 response has been an increased emphasis on customer service. Dating back to March of this year, with changes to the IRS calendar, volumes of legislative rule changes, and anxiety-inducing economic uncertainty all hitting our clients at once, we knew we'd be faced with unique challenges related to meeting the growing needs of our clients during the pandemic. Faced with the challenge of balancing new tasks like PPP (Paycheck Protection Program) consulting and payroll tax credits with normal tax-season obligations and business consulting, we set the goal of raising the bar when it comes to customer service and communication, so our clients would know we had their best interests at heart at all times. We have found that even when the balancing act is difficult, a customer-first mindset eases stress and achieves better outcomes.  You’d be hard-pressed to find a business that doesn’t value its customers, but tough times put man...

The tax filing deadline for 2019 tax returns was extended until July 15 this year, due to the COVID-19 pandemic. Now that your 2019 tax return has been successfully filed with the IRS, there may still be some issues to bear in mind. Here are three considerations: 1. Some tax records can now be thrown away You should keep tax records related to your return for as long as the IRS can audit your return or assess additional taxes. In general, the statute of limitations is three years after you file your return. So you can generally get rid of most records related to tax returns for 2016 and earlier years. (If you filed an extension for your 2016 return, hold on to your records until at least three years from when you filed the extended return.) However, the statute of limitations extends to six years for taxpayers who understate their gross income by more than 25%. You’ll need to hang on to certain tax-related records longer. For example, keep the actual tax returns indefinitely, so you ca...

If you’re updating or creating your estate plan, or if you have inherited assets, "cost basis" is an important topic to understand and consider.  Fair market value rules Under the fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a basis in inherited property equal to its date-of-death value. So, for example, if your grandfather bought ABC Corp. stock in 1935 for $500 and it’s worth $5 million at his death, the basis is stepped up to $5 million in the hands of your grandfather’s heirs — and grandpa's heir escape federal income tax on that gain. Had grandpa gifted his shares to his heirs before his death, this would not be the case.  The fair market value basis rules apply to inherited property that’s includible in the deceased’s gross estate, and those rules also apply to property inherited from foreign persons who aren’t subject to U.S. estate tax. It doesn’t matter if a federal estate tax return is filed. The rules apply t...

The IRS has provided guidance to employers regarding the recent presidential action to allow employers to defer the withholding, deposit and payment of certain payroll tax obligations. The three-page guidance in Notice 2020-65 was issued to implement President Trump’s executive memorandum signed on August 8. Private employers still have questions and concerns about whether, and how, to implement the optional deferral. The President’s action only defers the employee’s share of Social Security taxes; it doesn’t forgive them, meaning employees will still have to pay the taxes later unless Congress acts to eliminate the liability. (The payroll services provider for federal employers announced that federal employees will have their taxes deferred.)  Deferral basics President Trump issued the memorandum in light of the COVID-19 crisis. He directed the U.S. Secretary of the Treasury to use his authority under the tax code to defer the withholding, deposit and payment of certain payro...

No company can afford to operate without the right accounting software. When considering whether to buy a new product or upgrade their current solutions, however, business owners often fall prey to some common mistakes. Here are five gaffes to avoid: 1. Relying on a generic solution. Some companies rush into buying an accounting system without stopping to consider all their options. Perhaps most important, they may be missing out on specific versions for their industries. For instance, construction companies can choose from many applications with built-in features specific to how their businesses work. Nonprofit organizations also have industry-specific accounting software. If you haven’t already, check into whether a product addresses your company’s area of focus. 2. Spending too much or too little. When buying or upgrading something as important as an accounting system, it’s easy to overspend. Those bells and whistles can be enticing. Then again, frugal-minded business owners may u...