Joel Handler, CPA

Proper payroll recordkeeping is critical for every business to ensure tax compliance and guard against litigation. Most companies must keep information regarding federal income, Social Security and Medicare taxes for at least four years after the due date of an employee’s personal income tax return for the year in which the payment was made. This is known as the “records-in-general” rule, and various data and documents fall under it. Contact us at (718) 374-5051 to schedule a review of your payroll recordkeeping processes today!

The IRS generally follows strict collection processes but acknowledges that some people face real hardships. In such cases, the IRS may assign a tax debt to “currently not collectible” status until the debtor’s financial condition improves. While the debt remains unpaid, the total will continue to rise due to penalties and interest. Also, a federal tax lien may be filed, giving the government an interest in the individual’s assets. The IRS doesn’t grant this status lightly. It demands extensive financial proof, which can feel like an uphill climb. Contact us for help with tax debt at (718) 374-5051.

Thinking about what you’ll do with your business when you’re ready to move on to something else or retire? Common exit strategies include buy-sell agreements, family succession, management buyouts, employee stock ownership plans and sales to outside buyers. Each has unique benefits and tax implications. But to be successful, all require planning well in advance of your target exit date. Call us at (718) 374-5051 to start discussing the best strategy for achieving your goals.

If you’ve recently sold your home and realized a capital gain, you may be able to exclude some or all of the gain from the sale. To claim the exclusion, you must pass IRS ownership and use tests. During a five-year period ending on the date of sale, you must have owned the home and lived in it for at least two years. If qualified, you may be able to exclude a capital gain of up to $250,000 from your income ($500,000 for married joint filers). Be aware that the exclusion is available only for your main home (not a second home). If you realized a loss on the sale, it’s not deductible. For more information from the IRS: https://bit.ly/3GCMQqz or contact us at (718) 374-5051 with questions.

Fraud can drain your company’s assets and erode its value, often before you realize it’s happening. Protect your business with strong internal controls, such as segregation of duties. This means dividing key responsibilities among different individuals. Take the petty cash drawer: One employee should authorize disbursements, another should have custody of the drawer and dispense cash, and a third should record and reconcile the transactions. These built-in checks can reduce the risk of any one person committing fraud. Need help reviewing your internal processes? Call us at (718) 374-5051.

Worried about taxes during retirement? Roth IRAs offer tax-free retirement income. But there’s a current tax cost to this future benefit: Contributions aren’t deductible. Also, the annual contribution limits are relatively modest, and your maximum contribution might be reduced or eliminated based on your income. Nevertheless, the Roth IRA’s tax-free growth potential can be a powerful wealth-building tool. And annual Roth IRA contributions aren’t the only way to take advantage of this potential. Call us at (718) 374-5051 to discuss how a Roth account might fit into your strategy.

Avoid underpayment penalties by staying on top of estimated tax payments and paycheck withholding. If you expect to owe at least $1,000 in taxes after subtracting credits and withholding, quarterly estimated payments may be required. Withholding and estimated payments must generally cover 90% of this year’s tax or 100% of last year’s tax (or 110%, depending on your income). Unsure if you’re on track? Let’s review your situation now to help avoid surprises when you file your 2025 return next year. Call us at (718) 374-5051.

Two commonly misunderstood tax terms are deductions and credits. What’s the difference? Deductions reduce the amount of a taxpayer’s income before tax is calculated. For example, on your individual return, you can take the standard deduction or itemize deductions depending on which strategy will most reduce your taxable income. Credits, on the other hand, reduce the actual tax due, dollar-for-dollar, generally making them more valuable than deductions. Certain credits, such as the Child Tax Credit, are partially or fully refundable. This means that if a taxpayer’s bill is less than the amount of the credit, he or she may receive the difference as a refund. Contact us at (718) 374-5051 with your tax questions.

Your financial future deserves more than guesswork. We’ll work with you to align your tax planning, retirement planning and estate planning strategies to help achieve your goals — and financial peace of mind. Whether you're growing your wealth or preparing to pass it on, we’re here to help you plan with purpose. Contact us at (718) 374-5051 to get started.

Many small businesses overpay sales tax without realizing it. Exemptions vary widely by state, and relying on vendors to get it right can lead to costly mistakes. A reverse audit can uncover overpayments and help you recover lost dollars. Don’t wait! Refunds are usually time limited. Contact us at (718) 374-5051. We can help make sure you’re not leaving money on the table.

Tax law changes make it even more important to have a knowledgeable tax professional on your side. We can help you stay on top of changes, make informed decisions year-round, and avoid costly surprises. And when the 2025 tax filing deadline approaches next April, we can save you time, headaches and taxes by preparing your return. If you want clarity and confidence around your taxes, we’re here to help. Call us at (718) 374-5051.

The IRS Whistleblower Office (WBO) plays a key role in tax collection. The federal tax system relies on voluntary compliance, investigations, data analytics and information from people with knowledge of noncompliance. A tip that leads to the collection of proceeds may result in a valid claim for a cash award. What makes a claim valid? To qualify for an award, a claim must provide specific and credible information regarding tax underpayments or violations. Generally, an award ranges from 15% to 30% of the proceeds collected that are attributable to information from the tipster. Contact us with questions at (718) 374-5051 and learn more about the WBO claim process here: https://bit.ly/3RleVWh