RTA Financial Group, Inc.

10/22/2022

Closing a Business for Good
If you're a small business owner who is thinking about closing your business for good, you should be aware that there is more to closing a business than laying off employees, selling office furniture, and closing the doors - you must also take certain actions as required by the IRS to fulfill your tax obligations. For example, if you have employees, you must file final employment tax returns as well as make final federal tax deposits of these taxes.

You must also file an annual tax return for the year you go out of business. You also need to attach a statement to your return listing the name and address of the person that keeps the payroll records (this could be you or another person). If you are disposing of business property, exchanging like-kind property, and/or changing the form of your business, you must file a return to report these actions.

Depending on your type of business structure, you may need to take the some or all of the following steps:

File final federal tax deposits
File final quarterly or annual employment tax form (Forms 94x)
Issue final wage and withholding information to employees (Form W-2, Wage and Tax Statement
Report information from W-2s issued (Form W-3, Transmittal of Income and Tax Statements)
File final tip income and allocated tips information return (Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips)
Report capital gains or losses
Report partner's/shareholder's shares (Schedules K-1)
File final employee pension/benefit plan
Issue payment information to sub-contractors (Form 1099-MISC, Miscellaneous Income)
Report information from 1099s issued Form 1096, Annual Summary and Transmittal of U.S. Information Returns)
Report corporate dissolution or liquidation
Consider allowing S corporation election to terminate
Report business asset sales
Report the sale or exchange of property used in your trade or business.
If you find yourself in the difficult position of having to close your business and have more questions than answers, help is just a phone call away.

Cerrar un negocio para siempre
Si usted es propietario de una pequeña empresa y está pensando en cerrar su negocio para siempre, debe tener en cuenta que cerrar un negocio es más que despedir empleados, vender muebles de oficina y cerrar las puertas; también debe tomar ciertas medidas según lo requiera el IRS para cumplir con sus obligaciones tributarias. Por ejemplo, si tiene empleados, debe presentar declaraciones de impuestos sobre el empleo finales, así como también hacer depósitos de impuestos federales finales de estos impuestos.

También debe presentar una declaración de impuestos anual para el año en que cierra el negocio. También debe adjuntar una declaración a su declaración que incluya el nombre y la dirección de la persona que lleva los registros de nómina (puede ser usted u otra persona). Si está enajenando propiedad comercial, intercambiando propiedad similar y/o cambiando la forma de su negocio, debe presentar una declaración para informar estas acciones.

Dependiendo de su tipo de estructura comercial, es posible que deba seguir algunos o todos los siguientes pasos:

Presentar depósitos finales de impuestos federales
Presentar el último formulario trimestral o anual de impuestos sobre la nómina (Formularios 94x)
Emitir el salario final y la información de retención a los empleados (Formulario W-2, Declaración de salarios e impuestos)
Informar información de los W-2 emitidos (Formulario W-3, Transmisión de declaraciones de ingresos e impuestos )
Presente la declaración final de información sobre ingresos por propinas y propinas asignadas (Formulario 8027, Declaración anual de información del empleador sobre ingresos por propinas y propinas asignadas )
Informar ganancias o pérdidas de capital
Informe acciones de socios/accionistas (Anejos K-1)
Presentar el plan final de pensión/beneficios del empleado
Emitir información de pago a subcontratistas (Formulario 1099-MISC, Ingresos Misceláneos )
Informe la información de los formularios 1099 emitidos Formulario 1096, Resumen anual y transmisión de declaraciones de información de EE. UU .)
Informe de disolución o liquidación societaria
Considere permitir que la elección de la corporación S termine
Informe de ventas de activos comerciales
Reporte la venta o permuta de bienes utilizados en su oficio o negocio.
Si se encuentra en la difícil posición de tener que cerrar su negocio y tiene más preguntas que respuestas, la ayuda está a solo una llamada de distancia.

10/22/2022

Cash Management Tips for Small Businesses
Cash flow is the lifeblood of every small business but many business owners underestimate just how vital managing cash flow is to their business's success. In fact, a healthy cash flow is more important than your business's ability to deliver its goods and services.

While that might seem counterintuitive, consider this: if you fail to satisfy a customer and lose that customer's business, you can always work harder to please the next customer. If you fail to have enough cash to pay your suppliers, creditors, or employees, you are out of business.

What is Cash Flow?
Cash flow, simply defined, is the movement of money in and out of your business; these movements are called inflow and outflow. Inflows for your business primarily come from the sale of goods or services to your customers but keep in mind that inflow only occurs when you make a cash sale or collect on receivables. It is the cash that counts! Other examples of cash inflows are borrowed funds, income derived from sales of assets, and investment income from interest.

Outflows for your business are generally the result of paying expenses. Examples of cash outflows include paying employee wages, purchasing inventory or raw materials, purchasing fixed assets, operating costs, paying back loans, and paying taxes.

A tax and accounting professional is the best person to help you learn how your cash flow statement works. He or she can prepare your cash flow statement and explain where the numbers come from. If you need help, don't hesitate to call.

Cash Flow versus Profit
While they might seem similar, profit and cash flow are two entirely different concepts, each with entirely different results. The concept of profit is somewhat broad and only looks at income and expenses over a certain period, say a fiscal quarter. Profit is a useful figure for calculating your taxes and reporting to the IRS.

Cash flow, on the other hand, is a more dynamic tool focusing on the day-to-day operations of a business owner. It is concerned with the movement of money in and out of a business. But more important, it is concerned with the times at which the movement of the money takes place.

In theory, even profitable companies can go bankrupt. It would take a lot of negligence and total disregard for cash flow, but it is possible. Consider how the difference between profit and cash flow relate to your business.

Example: If your retail business bought a $1,000 item and turned around to sell it for $2,000, then you have made a $1,000 profit. But what if the buyer of the item is slow to pay his or her bill, and six months pass before you collect on the account? Your retail business may still show a profit, but what about the bills it has to pay during that six-month period? You may not have the cash to pay the bills despite the profits you earned on the sale. Furthermore, this cash flow gap may cause you to miss other profit opportunities, damage your credit rating, and force you to take out loans and create debt. If this mistake is repeated enough times, you may go bankrupt.

Analyzing your Cash Flow
The sooner you learn how to manage your cash flow, the better your chances of survival. Furthermore, you will be able to protect your company's short-term reputation as well as position it for long-term success.

The first step toward taking control of your company's cash flow is to analyze the components that affect the timing of your cash inflows and outflows. A thorough analysis of these components will reveal problem areas that lead to cash flow gaps in your business. Narrowing, or even closing, these gaps is the key to cash flow management.

Some of the most important components to examine are:

Accounts receivable. Accounts receivable represent sales that have not yet been collected in the form of cash. An accounts receivable balance sheet is created when you sell something to a customer in return for his or her promise to pay at a later date. The longer it takes for your customers to pay on their accounts, the more negative the effect on your cash flow.

Credit terms. Credit terms are the time limits you set for your customers' promise to pay for their purchases. Credit terms affect the timing of your cash inflows. A simple way to improve cash flow is to get customers to pay their bills more quickly.

Credit policy. A credit policy is the blueprint you use when deciding to extend credit to a customer. The correct credit policy - neither too strict nor too generous - is crucial for a healthy cash flow.

Inventory. Inventory describes the extra merchandise or supplies your business keeps on hand to meet the demands of customers. An excessive amount of inventory hurts your cash flow by using up money that could be used for other cash outflows. Too many business owners buy inventory based on hopes and dreams instead of what they can realistically sell. Keep your inventory as low as possible.

Accounts payable and cash flow. Accounts payable are amounts you owe to your suppliers that are payable at some point in the near future - "near" meaning 30 to 90 days. Without payables and trade credit, you'd have to pay for all goods and services at the time you purchase them. For optimum cash flow management, examine your payables schedule.

Some cash flow gaps are created intentionally. For example, a business may purchase extra inventory to take advantage of quantity discounts, accelerate cash outflows to take advantage of significant trade discounts or spend extra cash to expand its line of business.

For other businesses, cash flow gaps are unavoidable. Take, for example, a company that experiences seasonal fluctuations in its line of business. This business may normally have cash flow gaps during its slow season and then later fill the gaps with cash surpluses from the peak part of its season. Cash flow gaps are often filled by external financing sources. Revolving lines of credit, bank loans, and trade credit are just a few of the external financing options available that you may want to discuss with us.

Monitoring and managing your cash flow is important for the vitality of your business. The first signs of financial woe appear in your cash flow statement, giving you time to recognize a forthcoming problem and plan a strategy to deal with it. Furthermore, with periodic cash flowanalysis, you can head off those unpleasant financial glitches by recognizing which aspects of your business have the potential to cause cash flow gaps.

Need Help?
Without adequate funds to cover day-to-day expenses, your business could fail. Why take that chance? If you need help analyzing and managing your cash flow more effectively, please call and speak to a tax professional who can help.

07/12/2022

BIG ANNOUNCEMENT!

IRS Problems are a very personal type of problem and people often do not know where to turn for help. IRS Problems generally affects all aspects of your life. Many people just live with the problem for months and sometimes years, assuming that nothing can be done about it.

Imagine how relieved you or someone you know who has IRS Problems would feel if you could just put him/her in the hands of a competent expert who deals with the IRS on a daily basis and who really cares about helping people. A person who would give them the peace of mind they and their family deserve so they can stop looking over their shoulder once and for all, knowing that they do not need to meet or speak with the IRS any longer.

As your representative we can PROTECT your income and assets from aggressive IRS enforcement tactics. It’s easy for good, hard-working Americans to fall behind. Providing IRS Tax help to New Jerseyans and clients nationwide was a natural evolution for us at RTA Financial Group, Inc.

Our compassionate team wants to help people like you. I have come across many people who have tried to handle their IRS situation themselves (or with their current CPA or person
who prepared their taxes) but didn’t receive the relief they were seeking. The professionals on our staff know the “ins and outs” of the tax system and can negotiate a personalized solution for you.

My firm now handles IRS representation services which include: Preparation of Unfiled Income Tax Returns, Penalty Reduction, Offers in Compromise, Payment Plans, Financial Hardship Plans, Wage Garnishment/Bank Levy Releases, Audits and IRS Appeals.

We’ll listen to your IRS difficulties in our office in complete confidence at NO CHARGE. We’ll answer your questions, explain your options and suggest solutions and provide you with a written estimate of our fees to permanently resolve your IRS difficulties.
Schedule a free consultation at www.rtaadvisors.com

07/11/2022

Summer Activities That Could Affect Your Tax Situation
Although the tax return filing deadline has come and gone, it's never too early to start planning for next year's tax return. With that in mind, let's take a look at some common summertime situations that could affect your taxes:

Getting married. Getting married this summer? Be sure to report any name changes to the Social Security Administration (SSA). Taxpayers should also report address changes to the United States Postal Service, employers, and the IRS. To report a change of address for federal tax purposes, taxpayers must complete Form 8822, Change of Address and submit it to the IRS. This will help make sure they receive the documents they will need to file their taxes.

Sending kids to summer day camp. The cost of sending your children to a summer day camp may count towards the child and dependent care credit (see above for more details on this credit). Overnight camps do not qualify, however.

Working part-time. While summertime and part-time workers may not earn enough to owe federal income tax, they should remember to file a return. They'll need to file early next year to get a refund for taxes withheld from their checks this year.

Gig economy work. Summer income earned by providing on-demand work, services, or goods, often through a digital platform like an app or website, is taxable income. Examples of gig work include ride-sharing, delivery services, and other activities. Please call the office to learn more about how participating in the gig economy can affect taxes.

Typically, employees receive a Form W-2, Wage and Tax Statement, from their employer to account for the summer's work. Taxpayers use this information when filing their tax returns, and they should receive the W-2 by January 31 next year. Employees will get a W-2 even if they no longer work for the summertime employer.

Keep in mind that employers determine whether the people who work for them are employees or independent contractors. Independent contractors aren't subject to withholding, making them responsible for paying their own income taxes plus Social Security and Medicare taxes.

Adjust Withholding Now To Avoid Tax Surprises Next Year

Life events like marriage, divorce, having a child, or a change in income can affect taxes. Taxpayers should remember that, if needed, they should submit their new W-4 to their employer, not the IRS. Taxpayers can avoid a tax surprise next filing season by using the IRS Tax Withholding Estimator to assess their income tax, credits, adjustments, and deductions. The tool helps taxpayers determine whether they need to change their withholding by submitting a new Form W-4, Employee's Withholding Allowance Certificate.

Please contact the office if you have any questions or concerns about this topic. Help is just a phone call or email away.

02/25/2022

02/25/2022

Non-Profits: Electronic Filing of Form 1024
Starting January 3, 2022, nonprofit organizations applying for recognition of exemption must submit Form 1024, Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code, electronically online at Pay.gov. Form 1024, which was previously filed using a paper version, has been revised by the IRS to allow electronic filing. There is, however, a 90-day grace period during which the IRS will continue to accept paper versions of Form 1024 (Rev. 01-2018) and letter applications.

The revised Form 1024 is part of the IRS’s ongoing efforts to improve service for the tax-exempt community and make it easier to complete an application for tax-exempt status while reducing errors and reducing processing time. Electronic filing will also shorten the time it takes the IRS to process these forms.

Organizations requesting determinations under Section 521 are now also able to use the electronic Form 1024 instead of Form 1028, Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code.

The required user fee for Form 1024 remains $600 for 2022. Applicants must pay the fee through Pay.gov when submitting the form, and payment can be made directly from a bank account or by credit or debit card.

In addition, applications for recognition of exemption under Sections 501(c)(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), (29) and 501(d) can no longer be submitted as letter applications. Instead, these requests must be made on the electronic Form 1024.

Accordingly, organizations that are described in Section 501(c) (other than 501(c)(3) and (c)(4)) and 501(d) applying for tax-exempt status must now use the electronic Form 1024. Section 501(c)(3) organizations must continue to use Form 1023 or Form 1023-EZ, and Section 501(c)(4) organizations must continue to use Form 1024-A. Those forms also must be filed electronically.

Please contact the office if you need assistance applying for IRS recognition of tax-exempt status or have any other questions about applying for tax-exempt status.