Planning for retirement comes with many financial decisions, and one of the most critical is choosing between a Roth IRA and a traditional IRA. While both offer tax advantages, understanding the differences, benefits, and strategies can help you make the most of your...
Imagine turning your old, unused car into a meaningful contribution to a charity—while also securing a valuable tax deduction. Donating a vehicle to charity can be a win-win, but only if you understand the rules. The IRS has specific regulations about how vehicle...
Picture this: you’re hunched over last year’s budget, erasing line items you assume you can do without—only to see those same expenses reappear the next cycle. It’s a familiar cycle for many small business owners. At Key2 Accounting, we know that every dollar matters....
In the midst of the bustling tax season, unsettling news has emerged: the IRS is set to lay off roughly 6,700 employees. For many taxpayers and small business owners alike, this development raises pressing questions. How will these staffing changes affect your tax...
Imagine being a small business owner eager to attract top talent and secure your team's future. You’ve poured your heart into building your company, and now you’re considering adding a robust employee pension plan. But where do you start—and how can you manage the...
Remember the days when “downsizing” meant clearing out your closet each spring? Today, downsizing has evolved into a major financial decision—one that can redefine your retirement journey. For many Baby Boomers and Gen Xers, selling that long-held family home isn’t...
Every successful business, no matter its size, relies on a well-structured budget. But as a small business owner, have you ever found yourself struggling to manage cash flow, track expenses, or plan for growth? Without a solid budgeting strategy, businesses can...
Cash flow is the lifeblood of any business. Whether you’re a startup or an established company, managing cash flow effectively can mean the difference between success and failure. Have you ever found yourself struggling to pay suppliers or employees despite having...
As a small business owner, managing your taxes can feel overwhelming, especially when it comes to quarterly tax payments. Are you required to pay them? How do you calculate what you owe? Where do you make your payments? These are common questions we hear at Key2...
Depreciation isn’t just an accounting term—it’s a powerful tax tool that can significantly impact your business’s bottom line. At Key2 Accounting, we’ve seen firsthand how understanding depreciation can transform your financial planning. Have you ever wondered how...
Remember that collective gasp when Bench suddenly closed its doors on December 27? If you relied on their online platform for your business bookkeeping, you likely experienced a moment of panic: “Who’s managing my books now?” How do you trust a system when it vanishes...
As a small business owner, you juggle countless tasks—from managing cash flow to nurturing client relationships. Amid the chaos, one critical compliance detail can easily be overlooked: issuing your 1099 forms on time. At Key2 Accounting, we know that even a minor...
Navigating the world of tax withholdings can seem overwhelming. Have you ever wondered how your paycheck deductions are determined or why tax withholdings vary between employees and small business owners? At Key2 Accounting, our dedicated accounting consultants are...
Tax season can be one of the most stressful times of the year. Have you ever felt overwhelmed by missing documents or unsure if you can meet the filing deadline? A tax extension might be the answer, but what exactly does it mean for your business? At Key2 Accounting,...
Planning your financial future when managing a disability can feel overwhelming—but it doesn’t have to be. At Key2 Accounting, we believe that smart tax preparation can transform your financial outlook. Whether you’re managing your own disability, caring for a child...
Introduction Running a small business is a journey full of challenges, surprises, and opportunities. At Key2 Accounting, our business accounting services are at the heart of everything we do. We understand that your financial strategy should work as hard as you do....
In the world of business, financial crises can strike without warning. From economic downturns to industry-specific challenges, many factors can jeopardize your company’s stability. How can your business remain resilient in the face of uncertainty? What steps should...
Facing an IRS audit can be intimidating for any business owner. Questions like, "What does the IRS want?" or, "am I prepared?" often lead to anxiety and stress. However, with the support of skilled business accountants, you can navigate the process with confidence and...
Managing finances is a critical skill for every small business owner, yet many struggle with keeping personal and business finances distinct. The consequences of commingling these two financial realms can be far-reaching, affecting everything from tax filings to...
When it comes to taxes, two terms often come up: tax planning and tax preparation. While they might sound similar, they serve very different purposes. Many business owners and individuals in Fort Collins and beyond wonder: Do I need both? Is one more important than...
Individuals and small businesses should consider various ways of starting off on the right foot for the 2025 tax year. W-4 Updates – If you are employed, then your employer takes the information from your Internal Revenue Service (IRS) Form W-4 and applies it to the...
The Inflation Reduction Act (IRA) aims to provide, "transformational change" for tax payers. After being signed into law by President Biden in 2022, set to impact fiscal years 2023-2031, we can all expect to see strides towards modernizing the IRS following decades of...
Mastering Cash Flow: Strategies for Navigating Seasonal Slowdowns As autumn's vibrant hues fade into the quiet of winter, many businesses prepare for the typical seasonal slowdown. Whether triggered by weather changes or election cycles, these downturns can challenge...
Since the inception of taxes, there’s been a quest to find loopholes to reduce tax burdens — and some of these methods are so unusual they belong in the annals of tax history. While most individuals rely on accountants to legally reduce their tax obligations, others...
As a small business owner, planning for retirement can feel like a daunting task. Between managing daily operations and growing your business, setting aside time to think about your future (and your employees’ futures) might not be a top priority. However, offering a...
As Autumn is well under way, many small business owners are already planning for the next year's budgets, taxes, and goals. Family owned businesses may also be planning around their kids. Are your kids getting to the age where they're a little old for summer camp, and...
Finding out you owe taxes can be stressful, especially if you're unable to pay the amount in full. However, it’s important to understand that ignoring the issue won't make it go away. The IRS offers several options to help taxpayers navigate this challenge and avoid...
In 1938, the Fair Labor Standards Act (FLSA), established basic rules and principles to ensure a hard day's work received a fair days pay. Amongst these rules were minimum wage, rules regarding child labor, rules about what was considered hours worked, and overtime...
As a taxpayer and business owner, you may be considering converting your personal vehicle to business use. This decision can offer significant tax and financial advantages, but it's crucial to understand the process and legal implications. Here's a step-by-step guide...
Year-end is rapidly approaching, as are the holidays. So, before you become distracted with the seasonal celebrations, it may be in your best interest to consider year-end tax moves that can benefit you for both 2022 - 2023 and 2023 - 2024. Here are last-minute tax...
The holiday season is customarily a time of giving gifts, whether to your favorite charity, family members or others. Some gifts have tax implications and can even provide a variety of tax benefits. But be wary; during the holiday season, you may receive phone...
If your partnership has been treating you and other partners as employees of a disregarded entity owned by the partnership so the partners can participate in employee benefit plans and receive other employee benefits, you’d better read this. Tax regulations (1) issued...
As the current 30-year mortgage rate hovers at 8%, and the 10-year treasury approaches 5%, it's crucial to understand the implications of rising interest rates on personal finances. Depending on your life stage and financial situation, these changes can bring both...
Despite warnings from the IRS, AICPA, and other professional tax organizations many business owners are being misled into filing for the Employee Retention Tax Credit for which they do not qualify. Amid rising concerns about a flood of improper Employee Retention...
If your partnership has been treating you and other partners as employees of a disregarded entity owned by the partnership so the partners can participate in employee benefit plans and receive other employee benefits, you'd better read this. Tax regulations issued by...
On the one hand, it's almost a prerequisite for entrepreneurs of all types to have that "can-do spirit." That sense that nobody else sees things quite like they do so, whatever it is they want to accomplish, it becomes something they know they'll have to do...
Back in August of 2022, President Biden issued an executive order that would forgive federal student loan debt for lower-income individuals. The program would have provided up to $20,000 in loan relief to borrowers with loans held by the Department of Education (DOE)...
While it's true that every business is different from the next - and every entrepreneur will go on his or her own unique journey - there are still a few constants that we know to be true. The start-up phase, for example, is when you write a formal business plan. You...
As the summer break from school approaches, many students are looking for part-time summer employment. Both parents and students should be aware of the tax issues that need to be considered when working a summer job. Here is a rundown of some of the more common...
To say that things are uncertain right now when it comes to the economy is, in all probability, a bit of an understatement. Inflation is at levels we haven't seen in decades. Employment costs are rising across the board. Materials in a number of industries are more...
Married taxpayers generally have the option to file a joint tax return or separate returns, a filing status commonly referred to as married filing separate (MFS). If you are married and you and your spouse are filing separate returns, or are considering doing so, you...
According to one recent study, there are currently more than 32 million small businesses operating in the United States. For the sake of discussion, know that this term refers to those organizations with fewer than 500 employees To put that number into perspective,...
Carrying long-term debt is a challenge, but when the money is owed to the government and you see no way to pay what you owe, it can be psychologically and emotionally debilitating. Some people think they can turn to bankruptcy, but that is not the case – bankruptcy...
Congress created Achieving Better Life Experience (ABLE) accounts in 2014. Prior to the creation of the ABLE accounts, individuals with disabilities who were eligible for Medicaid or federal Supplemental Security Income were limited to a maximum of $2,000 in assets,...
Many people know IRS.gov has the latest filing info and tax forms, but they may not be aware that it also has a wide range of other tax-related topics. Here are five things people can find on IRS.gov besides filing info. 1. Find the Taxpayer Bill of Rights. Each...
Many people work for a family member, whether it’s a child helping out at their parent’s shop or spouses running a business together. When someone is employed by a family member, the tax implications depend on the relationship and the type of business. It’s important...
Read the letter carefully. Most IRS letters and notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes specific instructions on what to do. A notice may reference changes to a taxpayer's account, taxes owed, a...
The Internal Revenue Service today that interest rates will increase for the calendar quarter beginning Oct. 1, 2022. For individuals, the rate for overpayments and underpayments will be 6% per year, compounded daily, up from 5% for the quarter that began on July 1....
With a potential recession on the horizon, most small businesses, in particular, are looking for avenues to cut costs wherever they can. However, that doesn't mean that your business can't still grow - you just have to be savvy about how you do it. With that in mind,...
The word “audit” tends to strike fear in the hearts of American taxpayers, but the truth is that not every audit is a result of a problem, or that the Internal Revenue Service suspects you of wrongdoing. There are several reasons why the IRS might want to audit your...
Anyone pursuing higher education, including specialized job training and grad school, knows it can be pricey. Eligible taxpayers who paid higher education costs for themselves, their spouse or dependents in 2021 may be able to take advantage of two education tax...
There's an old saying in life that reminds us that "the only things that are certain are death and taxes." It seems that, occasionally, some celebrities seem to forget that second part. It's true. Just because you've got the number one movie at the box office, or just...
The Work Opportunity Tax Credit (WOTC) is a general business credit that is jointly administered by the Internal Revenue Service (IRS) and the Department of Labor (DOL). The WOTC is available for wages paid to certain individuals who begin work on or before December...
There is a little-known disaster provision of the tax code that, where if an employer has adopted a leave-based donation program, the employees can forgo paid vacation, sick, or personal leave in exchange for their employer making equivalent cash payments to qualified...
With gas prices soaring it has been expected the IRS would increase the mileage rate that business owners can deduct for vehicle use instead of keeping a record of actual expenses. Sure enough, the IRS recently announced a 4-cent increase in the optional mileage rate...
Here’s what taxpayers need to know about business-related travel deductions Business travel can be costly. Hotel bills, airfare or train tickets, cab fare, public transportation – it can all add up fast. The good news is business travelers may be able off-set some of...
One of the cardinal rules of accounting is this: Go through your new transactions every day. If you wait until there are too many of them, you’re likely to give them short shrift. You may miss problems, just as you might skip categorizing some of them because it...
Not too long ago in Orlando, Florida, a federal investigation uncovered a situation where 22 workers were denied overtime by a Florida-based equipment rental company. The company was paying flat salaries to certain employees, regardless of how many hours they worked...
Have you ever wondered how long the IRS has to question and assess additional tax on your tax returns? For most taxpayers who reported all their income, the IRS has three years from the date of filing the returns to examine them. This period is termed the statute of...
Estimated tax payments are not just for the self-employed. They are for anyone whose withholding and tax credits are significantly less than their projected tax liability, and if used properly, can protect a taxpayer from underpayment penalties. Employees who will...
Managing Your Finances During an Inflationary Period It’s hard to ignore the real-life impacts inflation is having. While gas and grocery prices are having the most immediate effect, the price of almost everything is going up. People who are looking for ways to...
A prior blog article posting included an article about the IRS’ plans to use ID.me facial recognition software for taxpayers and others to authenticate access to their online accounts. Under pressure from privacy activists and several members of Congress, the...
This could be another rough tax season for the IRS and taxpayers. Although this year’s filing season opens January 24, 2022 (i.e., it is the first day the IRS will accept and start processing 2021 returns), the Service still has a backlog of prior year returns to...
As the old saying goes, "If you fail to plan, you plan to fail." Whoever coined that phrase was talking about finances, whether they realized it or not. According to one recent study, a general lack of financial education costs Americans a collective $415 billion...
Early in 2021, Congress passed the American Rescue Plan which included a provision that increased the child tax credit amount and upped the age limit of eligible children. Normally, the credit was $2,000 per eligible child under age 17. For the 2021 tax year, the...
If you have purchased, owned, sold, gifted, made purchases with, or used cryptocurrency in business transactions, there are certain tax issues you need to know about. Unfortunately, there are some unanswered questions and little specific guidance offered by the IRS...
As it does every year, the Internal Revenue Service recently announced the inflation- adjusted 2022 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on...
If you use independent contractors to perform services for your business, for each one that you pay $600 or more for the year, you are required to issue the worker and the IRS a Form 1099-NEC no later than January 31, 2022, for 2021 payments. Generally, a 1099-NEC is...
Is Your QuickBooks company file ready for 2022? Three things you can do to put things in order. January is always such a transitional month. You’re trying to wrap up everything that didn’t get done during a hectic December. At the same time, you have to jump into the...
It seems hard to believe, but the holiday season is almost upon us, and that means that the 2021 tax preparation season will soon follow. With the end of the tax year just around the corner, tax-savvy individuals need to take some time from their busy schedules to...
President Biden signed the Infrastructure Investment and Jobs Act (IIJA) into law on November 15, 2021. One of the provisions of that legislation retroactively terminated the employee retention credit (ERC) early. The credit was previously available to eligible...
A common question among parents is, “How might I save for a child’s post-secondary education in a tax beneficial way?” The answer depends on how much the education is expected to cost and how much time is left until the child heads off to college or a university or...
Here’s What Happened in the World of Small Business in October 2021 Here are five things that happened this past month that affect your business. 1) Higher corporate rate appears to fall out of economic package Biden’s advisers said that they are pursuing a range of...
The Covid-19 pandemic has had a significant impact on the labor market – mandated government lockdowns and workers’ and customers’ fears of contracting the illness resulted in businesses closing or temporarily cutting back and laying off or furloughing millions of...
Steps all business owners should take when closing a business. • File a final tax return and related forms. The type of return to file and related forms depends on the type of business. • Take care of employees. Business owners with one or more employees must pay any...
We will be transitioning to a new portal called Client Center. Client Center is a secure web portal that will be used to easily exchange files and communications (tax questions, e-signatures, supporting documents and tax returns) between our Accounting/Tax team and...
Taxes are like vehicles in that they sometimes need a periodic check-up to make sure they are performing as expected, and if ignored, can cost you money. That is true of taxes as well, especially for 2021, as the pandemic benefits begin to wane and President Biden’s...
The normal April 15, 2021 filing deadline for 2020 individual tax returns was extended by the IRS to May 17, 2021 due to the continuing Covid-19 pandemic. If you could not complete your 2020 tax return by May 17 and are now on extension, that extension expires on...
Not to overstate the obvious, but the last 18 months have seen major modifications in the ways that most Americans spent their money. Without the ability to visit department stores, malls, and big-box stores, retail therapy was significantly curtailed. Spending on...
Melissa Clary Key 2 Accounting Owner Years in industry: 23 College, University: Colorado State University Melissa Clary has been self employed since 2005 and is the former owner of Kruger and Clary, CPAs. She decided to branch out and form Key2...
If you are a small business owner, chances are good you’re paying more attention to your accounts receivables and deliverables than to a three-year-old Supreme Court decision. But knowing what happened in the Wayfair decision on June 21st of 2018 is important if you...
All too often, taxpayers wait until after the close of the tax year to worry about their taxes and miss opportunities that could reduce their tax liability or financially assist them. Mid-year is the perfect time for tax planning. The following are some events that...
The Internal Revenue Service (IRS) is reminding entities with Employer Identification Numbers (EINs) of their responsibility to update that information whenever the contact information or responsible party changes. IRS regulations require EIN holders to update...
It will be many years before we have a full understanding of what COVID-19 cost us as a society. But as that information is incrementally collected and released, we’re starting to see the picture take shape. One of the most recent reports on the subject was issued by...
We are making some changes with our tax software and will be using a different platform. This new platform will cause an update to our client portals. We will be sending out registration emails in the next couple of months. These new portals do not require Citrix...
The Internal Revenue Service has released a midyear report to Congress that details a significant backlog of tax returns dating back to the end of tax filing season, and many of those returns have yet to be processed. While backlogs are not unusual, this year’s is far...
With home mortgage rates at historic lows, it may be appropriate for you to consider refinancing your current mortgage. However, refinancing may not always be the greatest idea, even though mortgage rates are low, and even when your friends, relatives, and coworkers...
A taxpayer who is in the business of providing family day care in their home may deduct the ordinary and necessary expenses of their business. The two primary deductions include the business use of their home and the cost of providing meals and snacks to children in...
If you are considering starting a business, the simplest and least expensive form of business is a sole proprietorship. A sole proprietorship is a one-person business that reports its income directly on the individual’s personal tax return (Form 1040) using a Schedule...
If you’re thinking about moving from your current locale, you’re not alone. Americans are on the move for many different reasons: Remote work is increasingly popular and allows employees to live wherever they have access to WiFi, while tax changes introduced by the...
Now that most tax refunds are deposited directly into taxpayers’ bank accounts, the dream of opening your mailbox and finding an IRS refund check is all but a thing of the past. However, since the IRS now does most of its auditing through correspondence, an IRS letter...
We are happy to announce our move into a brand new office space. In the same building, but a few steps higher, you will find our newly renovated office space in Suite #202. As we continue to grow as your tax, accounting, and payroll area leaders, our goal is to...
No matter what type of business you operate, you rely on having a predictable flow of income to keep your bills paid. If you only have a single source of income and it suddenly falters, you’re going to be in trouble. Having more than one income stream is an insurance...
President Biden presented his proposed American Families Plan (AFP) during his Joint Session of Congress address on April 29, 2021. What follows is an overview of what is included in the plan. But this is only his wish list; Congress will need to draft proposed...
The IRS has begun issuing notice CP508C to taxpayers with “seriously delinquent” tax debt and the service has resumed its program of notifying the State Department of taxpayers’ unpaid federal debts. The U.S. Department of State generally will not renew a passport or...
As U.S. businesses continue to recover from COVID-19’s economic devastation, the U.S. Small Business Administration (SBA) is expanding loan opportunities. The agency announced that beginning the week of April 6th, nonprofits and small businesses will be able to borrow...
The IRS announced on March 31, that it will take steps to automatically refund money this spring and summer to people who filed their tax returns reporting unemployment compensation before the recent law change made by the American Rescue Plan Act. The American Rescue...
