Newsletter Article

Be Sure About Estimated Tax Payments

How to avoid underpayment penalties Even though you just put your 2016 tax return to bed, you cannot rest easy. It is already time to pay attention to your tax liability for 2017. Significantly, you may be required to pay installments of “estimated tax” for this year, especially if you are self-employed or retired. The


This Retirement Planning Move Avoids Tax

Benefit from a rollover to an IRA If you receive a distribution from an employer’s retirement plan, such as a 401(k), you are generally required to pay ordinary income tax on the payout. However, with a timely maneuver, you can continue to postpone paying the tax until you are ready to make withdrawals. Basic rules:


Last Minute Email Scams

Reprinted From the IRS Website – www.irs.gov The IRS, state tax agencies and the tax industry urged both tax professionals and taxpayers to be on guard against suspicious activity, especially email scams requesting last-minute deposit changes for refunds or account updates. Recommendations for tax professionals: Verbally reconfirm any change of address or direct deposit change


Another Successful Peer Review for KOS

As members of the American Institute of Certified Public Accountants (AICPA), our firm is required to have a peer review every three years. A peer review is an external review of our firm’s quality control system in accounting and auditing and is also known as the AICPA’s practice monitoring program. The program is designed to


Do You Have to Pay the NII Tax?

Computing tax liability on 2016 returns As the deadline for filing 2016 tax returns approaches, some taxpayers are still struggling with the rules for the 3.8% tax on “net investment income” (NII). The tax law provision authorizing this special tax was included in the Affordable Care Act (ACA), the law known as Obamacare. Although the


Immediate Tax Benefits for Business Property

Section 179 provides generous tax break There is a unique tax break for business entities of all shapes and sizes contained in Section 179 of the Internal Revenue Code. Under this section, a business can elect to “expense,” or currently deduct, the cost of qualified property placed in service during the year, up to a


Answers to Commonly Asked Questions About Roth and Traditional IRAs

By: Diana Spatoulas, KOS Senior Accountant dspatoulas@koscpa.com Individual Retirement Accounts, or IRAs, play an important role in retirement planning. Part of the planning process includes determining whether a Roth IRA or Traditional IRA is best for you. Presented below is a list of commonly asked questions regarding IRAs, the purpose of which is to provide


Getting out of Credit Card Debt

Do you need a Snowball or an Avalanche? By: Diana Spatoulas, KOS Senior Accountant dspatoulas@koscpa.com Now that 2017 is in full swing, the recent holidays of 2016 may seem like a distant memory. Colorful decorations and bright lights have been packed away and are out of sight. If it has not happened yet, soon a


Adjustments in Retirement Plan Limits

The IRS has announced its annual cost-of-living adjustments for certain retirement plan thresholds. Due to relatively low inflation rates, the adjustments for 2017 are minimal or nonexistent, as shown below. Maximum annual dollar benefit for a defined benefit plan                                


IRS Reminds Tax Payers of Common Scams

As the 2017 tax filing season unfolds, the IRS is reminding taxpayers about phishing and phone scams. Scammers have been contacting taxpayers via live and automated phone call, email, fax, regular mail, and text message. Here is a list of some of the most prevalent scams to watch out for: Students and their parents are