Mayday Innovations, Inc.

Only 10 Electric Vehicles Qualify for Full $7,500 US Tax Credit Only 10 electric and plug-in hybrid vehicles will qualify for $7,500 federal tax credits in the US after stricter battery-sourcing rules take effect and render most plug-in models ineligible.

http://www.cpapracticeadvisor.com/news/12417886/us-supreme-court-rules-in-favor-of-south-dakota-in-wayfair-sales-tax-case

In short, several other states will quickly follow suit and initiate mandatory online sales tax collections for all tangible products. Make your online purchases now while the prices are lower.

Amazon resellers will be required to collect and remit sales taxes to the jurisdiction the product is delivered to.

U.S. Supreme Court Rules in Favor of South Dakota in Wayfair Sales Tax Case The Supreme Court on Thursday standardized taxing rules for traditional retailers and online transactions, ruling that states and localities may collect sales taxes on all purchases over the internet. By a 5-4 vote, the justices that...

Homeowners: If you've already filed a tax return for 2017, you may benefit from filing an amended tax return. This morning, Congress passed a budget deal that will extend certain deductions and credits. President Trump is expected to pass these into law for the 2017 tax year.

The most notable changes are as follows. The previously expired Mortgage Interest Premium Deduction (MIP). This allows you to deduct the MIP paid to your mortgage company as interest. Credit are also extended for Non-Business Energy Credit, and the Residential Energy Property Credit, which allows you to receive additional money for installation of energy efficient property into your home. (A/C's, Roofs, windows, insulation, solar panels, etc.)

If you need help in obtaining these deductions/credits, please feel free to reach out.

Respectfully,
Christopher Kearnes
Mayday Innovations, Inc.
Accounting | Payroll | Tax Preparation
(727) 831-7526

Back-to-School Sales Tax Holiday (3 Days Only)
August 4 through August 6, 2017

Click for a complete list of non-taxable items.

https://revenuelaw.floridarevenue.com/LawLibraryDocuments/2017/06/TIP-121182_TIP%2017A01-07%20BTS%20RLL.pdf

Ready for a Bitcoin price surge???

Japan is one of the first adopters and largest influencers of Bitcoin pricing. In April, Japan recognized Bitcoin as an approved currency for payments to merchants. This has significantly helped shape the market. As of July 1st, Japan is removing the 8% Consumption Tax on Bitcoin and other digital currency transactions. For those people in Japan that use Bitcoin, I’m sure their purchase and use has been limited these last few weeks as they’ve been waiting for the adoption of this tax reduction. To top it off, it has just been announced that Bitcoin accepting retailers in Japan will now be insured against losses in Bitcoin due to transaction delays, failures and gateway issues. Analysts are expecting an additional 300,000 Japanese retailers will begin accepting Bitcoin by the end of 2017.

No person or company can predict the market at all times, but this is huge! Perhaps there will be a flood which slows down the Bitcoin system and causes short term losses, but this is planned to be addressed on August 1st with the incorporation of Bitcoin’s Segwit2x…..that’s a story for another day. In the meantime, get ready because Bitcoin and the other altcoins may see significant inclines during the next couple of days and/or weeks.

The cryptocurrency market will be very interesting for the next 45 days as some game changers are already set in place!

Employee or Independent Contractor?

The IRS, workers' compensation boards, unemployment compensation boards, federal agencies, and even courts all have slightly different definitions of what an independent contractor is though their means of categorizing workers as independent contractors are similar.

One of the most prevalent approaches used to categorize a worker as either an employee or independent contractor is the analysis created by the IRS, which considers the following:

1. What instructions the employer gives the worker about when, where, and how to work. The more specific the instructions and the more control exercised, the more likely the worker will be considered an employee.
2. What training the employer gives the worker. Independent contractors generally do not receive training from an employer.
3. The extent to which the worker has business expenses that are not reimbursed. Independent contractors are more likely to have unreimbursed expenses.
4. The extent of the worker's investment in the worker's own business. Independent contractors typically invest their own money in equipment or facilities.
5. The extent to which the worker makes services available to other employers. Independent contractors are more likely to make their services available to other employers.
6. How the business pays the worker. An employee is generally paid by the hour, week, or month. An independent contractor is usually paid by the job.
7. The extent to which the worker can make a profit or incur a loss. An independent contractor can make a profit or loss, but an employee does not.
8. Whether there are written contracts describing the relationship the parties intended to create. Independent contractors generally sign written contracts stating that they are independent contractors and setting forth the terms of their employment.
9. Whether the business provides the worker with employee benefits, such as insurance, a pension plan, vacation pay, or sick pay. Independent contractors generally do not get benefits.
10. The terms of the working relationship. An employee generally is employed at will (meaning the relationship can be terminated by either party at any time). An independent contractor is usually hired for a set period.
11. Whether the worker's services are a key aspect of the company's regular business. If the services are necessary for regular business activity, it is more likely that the employer has the right to direct and control the worker's activities. The more control an employer exerts over a worker, the more likely it is that the worker will be considered an employee.

Minimize the Risk of Misclassification

If you misclassify an employee as an independent contractor, you may end up before a state taxing authority or the IRS.

If you’re the independent contractor, but should be an employee, you’re probably paying too much F**A taxes.

If you have any questions about how to classify workers, or need clarification for your position, please don’t hesitate to call. (727) 831-7526

The federal tax filing season will begin Monday, Jan. 23, the IRS announced, also noting that taxpayers claiming certain tax credits should expect a longer wait for refunds. The last day to file and pay will be April 18, 2017.

NEVER, listen to a phone operator who tells you that you owe money to the IRS. The IRS will NEVER contact you by phone, or email, and demand payment. If you're unsure about a letter that you received from the IRS, call us and we'll help you resolve any potential tax issue in a professional, timely manner. Unfortunately, this call center in India was able to illegally retrieve $55 million dollars from hard working Americans within only 1 year.

Fake Call Centers In India Scam Americans Of Millions At least 70 suspects were arrested and about 600 more questioned by Mumbai police in connection to a massive tax scam.

STARTING A BUSINESS? SOME THINGS YOU MUST KNOW

Starting a new business is an exciting, but busy time with so much to be done and so little time to do it in. And, if you expect to have employees, there are a variety of federal and state forms and applications that will need to be completed to get your business up and running. That's where a seasoned tax professional can help.

Employer Identification Number (EIN)
In many cases, securing an Employer Identification Number (also known as a Federal Tax Identification Number) is the first thing that needs to be done, since many other forms require it. EINs are issued by the IRS to employers, sole proprietors, corporations, partnerships, nonprofit associations, trusts, estates, government agencies, certain individuals, and other business entities for tax filing and reporting purposes.

State Withholding, Unemployment, and Sales Tax
Once you have your EIN, you need to fill out forms to establish an account with the State for payroll tax withholding, Unemployment Insurance Registration, and sales tax collections (if applicable). In certain circumstances, it’s necessary to be established on a state level prior to filing for your EIN on a federal level.

Payroll Record Keeping
Payroll reporting and record keeping can be very time-consuming and costly, especially if it isn't handled correctly. Also, keep in mind, that almost all employers are required to transmit federal payroll tax deposits electronically. Personnel files should be kept for each employee and include, at minimum, an employee's employment application as well as forms W-4 and I-9.

There are other questions to consider when starting your own business. What type of business entity should I be set up as? (Corporation / LLC / Sole Proprietor / other) Do I need to file Articles of Incorporation? When is the right time to establish a business checking account? Can paying unemployment taxes actually increase my profits? If you need help setting up or completing any tax-related paperwork needed for your business, don't hesitate to call. We’ll have an experienced tax professional answer any questions you have.

Mayday Innovations, Inc. is proud to inform you about, Summer Meals for Kids & Teens, a money savings strategy which may help you, your family and your friends. More importantly, this program sponsored by the USDA can help ensure your children are eating properly during the summer months.

You may be surprised to find out you can receive 'Summer Meals' through your child’s current school or local Boys and Girls Clubs.

Click or Copy - to learn more about this free program.
http://www.fns.usda.gov/sites/default/files/sfsp/SFSP-Fact-Sheet.pdf

Click or Copy - to find the locations nearest you.
http://www.fns.usda.gov/summerfoodrocks

Mayday Innovations, Inc. - Helping you save your hard earned tax dollars.

100,000 IRS TAX ACCOUNTS COMPROMISED.

The IRS announced on Tuesday that criminals have used taxpayer-specific information to gain access to approximately 100,000 taxpayers’ accounts through the IRS’s Get Transcript online application and steal those taxpayers’ data. The hacking apparently started in February and involved approximately 200,000 attempts (300,000 total taxpayers) to access the Get Transcript app. The Get Transcript app is not hosted on the IRS computer system that handles tax return filing submissions, and the IRS says that the filing submission system remains secure. The IRS says it will provide a free credit monitoring service for those taxpayers whose accounts were hacked. It is also notifying all 200,000 taxpayers whose accounts were the targets of the unauthorized access attempts. Those letters will start going out this week.

Please keep in mind that any tax data should be kept secure. We, at Mayday Innovations, Inc., strongly recommend only using reputable tax professionals and highly advise against using apps or any other cell phone provided service for accessing highly confidential information. Data security is at the top of our "concern list". If you receive one of these letters from the IRS, please do not hesitate to contact us for further advice. Steps should be taken now to prevent delays for future tax filings and refunds.

Information provided, in part, by the IRS and the Journal of Accountancy.

TURN YOUR VACATION INTO A TAX DEDUCTION

Summer is almost here and many of you will be enjoying vacations with family and friends. I’d like to show you some examples of how to take advantage of tax saving opportunities.

Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did--and was able to legally deduct every dime that he spent on his vacation. Here's how he did it.

1) Make all your business appointments before you leave for your trip.

Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible.

Wrong.

You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS. Keeping this in mind, before he left for his trip, Tim set up appointments with business colleagues in the various cities that he planned to visit.

Let's say Tim is a manufacturer of green office products and is looking to expand his business and distribute more of his products. One possible way to establish business contacts, if he doesn't already have them, is to place advertisements looking for distributors in newspapers in each location he plans to visit. He could then interview those who respond when he gets to the business destination.

Example: Tim wants to vacation in Hawaii. If he places several advertisements for distributors, or contacts some of his current distributors to perform a presentation, then the IRS would accept his trip for business.

Tip: It would be vital for Tim to document this business purpose by keeping a copy of the advertisement and all correspondence along with noting what appointments he will have in his diary.

2) Make Sure your Trip is All "Business Travel."

In order to deduct all of your on-the-road business expenses, you must be traveling on business. The IRS states that travel expenses are 100 percent deductible as long as your trip is business related and you are traveling away from your regular place of business longer than an ordinary day's work and you need to sleep or rest to meet the demands of your work while away from home.

Example: Tim wanted to go to a regional meeting in Boston, which is only a one-hour drive from his home. If he were to sleep in the hotel where the meeting will be held (in order to avoid possible automobile and traffic problems), his overnight stay qualifies as business travel in the eyes of the IRS.

Tip: Remember: You don't need to live far away to be on business travel. If you have a good reason for sleeping at your destination, you could live a couple of miles away and still be on travel status.

3) Be sure to deduct all of your on-the-road expenses for each day you're away.

For every day you are on business travel, you can deduct 100 percent of lodging, tips, car rentals, and 50 percent of your food. Tim spends three days meeting with potential distributors. If he spends $50 a day for food, he can deduct 50 percent of this amount, or $25.

Tip: The IRS doesn't require receipts for travel expense under $75 per expense--except for lodging. (I still recommend keeping any receipts you do have.)

Example: If Tim pays $6 for drinks on the plane, $6.95 for breakfast, $12 for lunch, $50 for dinner, he does not need receipts for anything since each item was under $75.

Tip: He would, however, need to document these items in your diary. A good tax diary is essential in order to audit-proof your records. Adequate documentation includes amount, date, place of meeting and business reason for the expense.

Example: If, however, Tim stays in the Bates Motel and spends $22 on lodging, will he need a receipt? The answer is yes. You need receipts for all paid lodging.

Tip: Not only is your on-the-road expenses deductible from your trip, but also all laundry, shoe shines, manicures, and dry-cleaning costs for clothes worn on the trip. Thus, your first dry cleaning bill that you incur when you get home will be fully deductible. Make sure that you keep the dry cleaning receipt and have your clothing dry cleaned within a day or two of getting home. (Subject to limitations)

4) Sandwich weekends between business days.

If you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.

Example: Tim makes business appointments in Key West, Florida on Friday and one on the following Monday. Even though he has no business on Saturday and Sunday, he may deduct on-the-road business expenses incurred during the weekend.

5) Make the majority of your “trip days” count as business days.
The IRS says that you can deduct transportation expenses if business is the primary purpose of the trip. A majority of days in the trip must be for business activities; otherwise, you cannot make any transportation deductions.

Example: Tim spends six days in San Diego. He leaves for San Diego early on Thursday morning. He had a seminar on Friday and meets with distributors on Monday and flies home on Tuesday, taking the last flight of the day home after playing a complete round of golf. How many days are considered business days?

All of them. Thursday is a business day since it includes traveling - even if the rest of the day is spent at the beach. Friday is a business day because he had a seminar. Monday is a business day because he met with prospects and distributors in pre-arranged appointments. Saturday and Sunday are sandwiched between business days, so they count, and Tuesday is a travel day.

Since Tim accrued six business days, he could spend another five days having fun and still deduct all his transportation to San Diego. The reason is that the majority of the days were business days (six out of eleven). However, he can only deduct six days' worth of lodging, dry cleaning, shoe shines and tips. The important point is that Tim would be spending money on lodging, airfare, and food, but now most of his expenses will become deductible.

To make sure that you can legally deduct your vacation when you combine it with business, call the office before you plan your trip.

**The above information only contains examples and may not apply in all situations. We, at Mayday Innovations, have many years’ experience navigating the ins-and-outs of the Internal Revenue Code. If you would like more personalized advice, please feel free to contact us at any time. We’re always here to help you save your hard earned money.

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