Cardarelli & Ricci, Inc. CPA's

Did you know that if you lost your job during the year, you can claim tax deductions related to job-search expenses? Ask a tax professional about the rules regarding deductions for job-search expenses.

Did you know that the best way to avoid tax penalties is to know the IRS rules surrounding these? Ask a professional tax preparer how you can avoid owing the IRS more money though tax penalties.

File an extension on your taxes to avoid being assessed a late payment penalty by the IRS. The IRS will impose a late filing penalty of 5 percent per month on any tax due plus a late payment penalty of half a percent per month if you do not file on time. The extended deadline for taxes is October 18.

Once your business successfully passes the five-year hurdle, it will be time to talk with a Certified Public Accountant about switching your company from sole proprietor to another business entity. A simple bookkeeping entry allows business owners to transfer all of the business assets from sole proprietorship to the new entity without any tax penalties.

One of the most important aspects of avoiding an IRS audit is making sure your tax return is accurate and does not contain any math errors. This is the biggest reason for audits, since the IRS often assumes your tax return contains other errors if you calculate things incorrectly.

When keeping records of your business expenses and charitable donations, it is important to keep business finances separate from personal finances. Set up separate checking accounts, and write yourself a check or make a cash withdrawal when your small business needs funds. Tracking expenses and budgeting will be much easier when you keep personal and business finances separate.

If you're not saving all of your receipts, you are essentially throwing away money. Receipts and other documentation have become increasingly important as the IRS is demanding official records of charitable donations.

Did you know that some certified public accountants (CPAs) service all areas of accounting, whereas others choose to specialize in one or two areas? Tax preparation and representing clients to the IRS during audits are the two most common accounting specialties.

Want to know if your business is losing or making money? Talk with your CPA, bookkeeper, or consultant on a regular basis. Your financial guru should be able to provide a quarterly breakdown of your company's finances, highlighting which areas are weak and which are strong. A reliable financial advisor will also provide advice and help you devise an action plan for future success.

Plan your tax-deductible expenditures early in the tax year to take advantage of itemizing expenses. Also known as creating a bunching strategy, deduction-savvy taxpayers move, or bunch, expenditures into one tax year so they can clear deduction hurdles.

They say you should never take spiritual, medical, or financial advice from an unqualified source. What's the worst accounting advice you ever received from someone who didn't know better?