Tax advisory & Consultant

Your firm survived 2020. Now you may be asking yourself when will the economy return to pre-pandemic levels? Will it be this fall? A year from now? Longer? Until the economy fully emerges from the pandemic, small businesses can help one another stay afloat. By collaborating with other like-minded firms, your business can find creative ways to strengthen local markets and encourage consumer loyalty. Consider the following ideas of how you can help each other: Partner with industry peers.  One Vietnamese restauranteur in New York City was eager to open his business for in-person dining. Then the pandemic hit. According to a Time Magazine article, two years of careful planning, hard work and sacrifice seemed fruitless. But sympathetic restaurant owners in nearby Chinatown reached out with an innovative idea: offer a punch card to encourage customers to support local businesses. By partnering with this newly-minted entrepreneur and introducing him

D onating to charity not only helps others, it can reduce your tax bill — but only if the charity qualifies as a tax-exempt organization. Checking for qualified status If you plan on itemizing your deductions on your tax return, make sure the organization you're donating to is designated by the IRS as a 501(c)(3) organization in good standing. You can find a list qualified  501(c)(3) organizations  on the IRS website. Remember, even last year's qualified organizations could lose their non-profit status if they do not submit their annual tax filing! Is it a good charity? Ensuring a tax-exempt status is not your only step. You should also conduct research on your charitable organization. There are many websites that evaluate organizations, how they spend their funds, and how efficient your donation is being used. So check out your charities on sites such as  Charity Navigato r ,  Charity Watch  and   BBB Wise Giving Alliance . Get your documentation right Here are

In a recent Information Letter, the taxpayer was participating in her employer's qualified transportation fringe benefit plan when she was fired. At that time, she had approximately $380 of unused commuter benefits. (The benefits were obtained through compensation reduction contributions.) According to the IRS, employees who stop participating in a qualified transportation benefit plan without cancelling their compensation reduction election can't receive a refund of any amount (even if contributions exceed actual benefits). This is the case whether the employee is fired or quits voluntarily. The IRS also concluded that the terminated employee can't use the funds for continued transportation expenses.  Source : Thomson Reuters/ http://www.sadhcpa.com