KR Hoffman & Co. LLC

07/10/2022

Tax & Business Counsel Newsletter - Massive New FinCEN Requirement Is Coming -

Do you own or advise a corporation, limited liability company (LLC), limited partnership, limited liability partnership, limited liability limited partnership, or business trust?

11/16/2020

If you own a small business in Broward County Florida, if you need rent or food assistance because of Covid; Broward county has grant money to disperse.

Go to www.broward.org/cares to apply.

10/16/2019

Information Letter Explains Why Religious Objectors Can’t Claim Child Tax Credit

Kenneth Hoffman of K.R. Hoffman & Co., LLC is a highly sought after tax and business counselor. As a trusted senior advisor and counselor working closely with Entrepreneurs, Professionals and Select Individuals, Mr. Hoffman provides counsel to his clients who are navigating through the complexity o...

08/12/2018

I love this computer. It was a golden era.

ON THIS DAY IN 1981, IBM introduced its "Personal Computer" known as the IBM Model 5150. The first PC ran with a 4.77 MHz Intel 8088 microprocessor, operating on PC DOS 1.0 by Microsoft.

Happy 37th birthday to the glorious PC!

10/09/2016

Amazon may have been breached, time to change password.

https://www.hackread.com/amazon-sends-password-reset-email/

Amazon security breach notice email confirms that a list of login credentials was found posted online --- So change your password now. Amazon, the electron

03/12/2016

Don't forget - if you have a Corporation, or an entity taxed as a corporation - Tax Returns are due March 15th. Don't forget to file an extension if you aren't going to get it filed on time.

06/05/2015

Bill.com over charged my account. I canceled my account. I asked for a refund and they refuse to issue a refund, even for the overage. I'll dispute the charge with my credit card company.

05/07/2015

My clients paid less taxes than you! Contact me to find out how they did. www.krhoffman.com/contact

01/18/2015

Ten Issues for Businesses in 2015

With the New Year in full swing, small business owners are focused on implementing their strategic plans for 2015. An important component of those plans should include monitoring potential regulatory changes and understanding how they may impact the small business landscape.

Staying up-to-date with the ever-changing regulatory environment can be the difference between your business maintaining compliance and potentially facing steep IRS penalties. K.R. Hoffman Co., LLC keeps a close eye on regulatory issues to help business owners plan for changes that may be required in the New Year.

Kenneth Hoffman, managing member of K.R. Hoffman & Co., LLC, a highly sought after tax and business counselor to entrepreneurs, professionals and select individuals, has offered his list of the top 10 regulatory issues that small business owners need to be aware of in 2015.

Tax Extenders and Tax Reform. On December 19, 2014, President Obama signed the Tax Increase Prevention Act of 2014 into law. Approximately 50 tax breaks, known as “tax extenders,” were retroactively expanded through December 31, 2014. Some of these, such as bonus depreciation and accelerated expensing of certain asset purchases, are particularly beneficial to small businesses. IRS leadership has noted that despite the delay in the initial passage of the extenders, the tax filing season will start on time; however, due to budget constraints, the processing of returns and refunds may be affected. Additionally, the short-term extension could complicate a possible rewrite of the tax code in 2015. Business owners will want to monitor any tax reform developments for potential ramifications.

The Affordable Care Act. The New Year brings additional responsibilities for businesses defined as Applicable Large Employers in the Employer Shared Responsibility (ESR) provisions of the Affordable Care Act (ACA). Applicable Large Employers will need to be prepared to meet new IRS mandates to file annual information returns with the IRS and provide statements to their full-time employees about the health insurance coverage the employer offers in 2015.

Taxation of Online Sales. Taxation of online sales is likely to be an issue affecting many businesses this year. To level the playing field between brick and mortar retailers and online merchants, and respond to state concerns about lost revenue, the U.S. Senate passed the Marketplace Fairness Act in May 2013, which would have allowed states to collect sales tax on purchases made by state residents regardless of where the seller is located. The bill stalled in the 2014 session of Congress. Because of the amount of tax revenue at stake, businesses should expect this legislation to be resurrected this year.

Immigration Reform. President Obama announced late in 2014 his plan to use his executive authority to make changes to our nation’s immigration laws. Federal agencies are currently moving forward to implement the president’s plan. Employers will need to continue to monitor changes to the immigration system that may impact their internal hiring and staffing procedures, particularly in terms of Form I-9 procedures and work authorization documentation, as well as address potential labor gaps should newly authorized workers decide to look for higher paying positions.

Overtime Regulations. The U.S. Department of Labor is expected to release proposed guidelines in the first quarter of the year to modernize and streamline the existing overtime regulations under the Fair Labor Standards Act. The revised regulations are expected to expand the number of workers eligible for overtime pay by increasing the minimum salary levels required for exempt status employees, and by expanding the duties defining “administrative” employees exempt from overtime pay. In the interim, employers are encouraged to review their employee classifications, focusing on job duties and salary levels for those workers classified as exempt. Employers should anticipate the potential need to track and pay overtime rates where applicable.

Employment-Related Legislation. Employers will need to remain diligent in their efforts to comply with new legislation in their jurisdictions this year. The trend of local and state governments passing minimum wage increases is expected to continue. In addition, hiring procedures and employment applications will need to be revised for employers in jurisdictions covered by “ban-the-box” laws that prohibit pre-employment inquiries into applicants’ criminal histories. Lastly, paid sick leaves and the tracking and notice requirements that go along with this benefit will require employers to review current sick day benefits and comply with what can be complex provisions in order to avoid violations.

Privacy. After some have called 2014 “The Year of the Data Breach,” there is a greater likelihood that in the upcoming 2015 legislative session, Congress will look to pass baseline cybersecurity legislation. Businesses should begin analyzing the relationships between technology and their customers’ personal data. Customer privacy should be appropriately protected through such means as secure networks, timely detection of malware, enhanced credit card security, and strong encryption. Businesses can expect increasingly vigorous enforcement actions from agency regulators following violations of Federal and state privacy laws.

Retirement. There are a number of developments coming, or currently under consideration, which may impact small business owners who currently offer a retirement plan to their employees, or are thinking about offering one. The U.S. Treasury in 2015 will more broadly introduce its non-mandatory workplace savings program – myRA – which will allow employees to place deferred funds into a program that is similar to a Roth IRA. Additionally, 14 states have proposed legislation that would create workplace savings programs through employers not currently offering a retirement plan for their employees. Other proposed legislation would offer further incentives to small businesses to open retirement plans, provide for lifetime income information on plan statements, and require further disclosures around target-date funds included as plan investment options.

FUTA Credit Reduction. Some states continue to have outstanding federal unemployment loans in 2015. Employers in these states will continue to have their FUTA credit amount reduced as a way to pay back the outstanding debt. The final list of credit reduction states was published by the Department of Labor in November. Employers in the impacted states should plan to pay higher FUTA taxes for tax year 2015, due in January 2016, and may want to consider planning for the additional tax amount early in order to avoid an unexpected tax expense at the end of the year.

Banking Developments. With the surge in use of mobile payment applications such as Apple Pay™, businesses will also see the parallel move toward increased payment security and mobile payment acceptance. Small businesses should consider implementing technology that will allow them to accommodate these trends. Additionally, heightened regulatory pressures on banks to know the parties they are dealing with may result in increased requests for data from business owners or extended account-opening procedures. Payroll cards will also continue to be an area of focus in 2015, as several states are expected to introduce legislation relating to this popular method of pay. Employers should ensure their payroll card provider is up to speed on the evolving regulations in this area.

Kenneth Hoffman is a trusted senior tax advisor and counselor working closely with Entrepreneurs, Professionals and Select Individuals, Mr. Hoffman provides counsel to his clients who are navigating through the complexity of today's business, tax, and accounting challenges. To have a conversation on how Mr. Hoffman can protect you and your business from the IRS, contact him at 954-591-8290 or [email protected].

01/18/2015

Trick Play Backfires; Team Thrown for a Loss

College football fans have been crying for a season-ending playoff tournament for years, to replace the invitational "bowl championship" series that usually prompted as many questions as it answered. Monday night they got their wish, as the third-string quarterback Cardale Jones and the Ohio State Buckeyes overcame four turnovers to stun the Oregon Ducks, 42-20, in the very first College Football Playoff Championship Game.

Somewhere lower in the college football hierarchy, the University of South Dakota Coyotes aren't anyone's idea of national champions. They didn't even play Division I ball until 2008, when they joined the Missouri Valley Football Conference. This year's squad eked out just two wins, against William Penn's Statesmen and Northern Arizona's Lumberjacks. But one group of players took an even tougher hit. And their opponents weren't even wearing pads or cleats! What happened? Well, they challenged the team at the IRS — and they got thrown for a big loss.

Alphonso "Rico" Valdez grew up in Tampa, Florida, and graduated from Chamberlain High School before heading to the prairie to play cornerback for the 'Yotes. Maybe he felt exploited, playing for scholarship money instead of cold hard cash. But he didn't have the chops to go pro. So he recruited his own team of 11 conspirators, picking up some of his USD teammates, a former student government president who had been impeached for misusing student funds, and some friends from back home. Together, the group collected random names, addresses, and Social Security numbers, then used that information to file false tax returns on behalf of the victims and request fraudulent refunds in the form of prepaid debit cards.

We're not sure if any of the conspirators majored in accounting or not, but either way, pre-law probably would have been a smarter choice. The scheme came to light on a warm April day in 2012, when the criminal mastermind Valdez traded his helmet for sunglasses and a stocking cap, then made trip after trip to an ATM to convert those cards into cash. A concerned citizen noticed his unsportsmanlike conduct and called local police, who used surveillance video to pull the first string that eventually unwound the entire scheme.

The team scored $421,000 over the course of their "season" before officials threw a flag. Prosecutors don't know what happened to the money — they say there were no Mercedes-Benzes, no Louis Vuitton, and no Tiffany jewelry. USD athletic director Dave Herbster said "I'm not even sure that any of them had a car while they were here, and if they did, it probably wasn't a nice one."

At least they had the good sense to plead guilty to various charges of conspiracy and identity theft, and save real taxpayers the cost of a trial. They're even saying they're sorry! Valdez wants to become a high school football coach and show children they can further their education despite their mistakes. His girlfriend, Melissa Dinataly, said "the world is corrupt enough as it is. I shouldn't have done this." Of course, these aren't five-yard penalties — the whole team is headed to jail, for terms ranging from two to five years. They say prison life is structured — more than some people care for! So we'll see if the same discipline that helped Valdez excel on the field helps him excel in the yard.

Let's Talk! For a deeper conversation on our services, or to become a client, call Kenneth Hoffman at (954) 591-8290 Monday - Friday for a no cost consultation, or drop me a note.

Kenneth Hoffman of K.R. Hoffman & Co., LLC is a highly sought after tax and business counselor. As a trusted senior advisor and counselor working closely with Entrepreneurs, Professionals and Select Individuals, Mr. Hoffman provides counsel to his clients who are navigating through the complexity of today's business, tax, and accounting challenges.

Click here to schedule an appointment with Kenneth Hoffman.

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http://www.krhoffman.com/blog/2015/1/14/trick-play-backfires-team-thrown-for-a-loss

College football fans have been crying for a season-ending playoff tournament for years, to replace the invitational "bowl championship" series that usually prompted as many questions as it answered. Monday night they got their wish, as the third-string quarterback Cardale Jones and the Ohio State B…

07/24/2014

Tip of the Day

Electronic funds transfers . . . If you use a general office computer or any computer that's exposed to internet usage (e-mail, web surfing, etc.) you run the risk of malware, intercepted passwords, etc. A simple approach is to purchase an inexpensive laptop and use it only for checking bank accounts, making EFTs, etc.

Since you're not running software that would tax the system, you don't need a machine that's particularly fast and memory requirements are minimal. You'll still need virus protection and a firewall. Restrict access to the machine and password protect it.

Finally, reconcile your electronic funds transfers daily. While you may have recourse to the bank, they'll be looking for ways to avoid responsibility. There may be other safeguards you can take. Contact me if you have any questions - http://www.krhoffman.com/contact

07/23/2014

Are you the owner of a profitable business, you're wasting money by over paying your taxes. Learn to stop wasting money NOW! http://www.krhoffman.com/contact

To start the conversation or to become a client, call Kenneth Hoffman at (954) 591-8290 Monday - Friday, for a no cost telephone consultation, or use our contact form to the right.