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Krutika Chheda Articles

Guest post by: Krutika Chheda

Top Tax Audit Traps for H1, L1 and Information Technology (IT) Consultants - Click To Read Article
With a view to benefit the H1 L1 visa holder community, this article covers at a high level the potential tax audit issues that H1 L1 information technology (IT) consultants may be facing. The Tax Audit department in our office has come across several IRS Audit cases involving H1, L1 tax payers. Most of these tax returns were prepared and filed by offshore based tax preparers. The audit trigger seems to have been the excessive business travel expense deduction. Before we dive deeper into the issue, let us cover some fundamentals around the tax laws.

What to look for when buying a Business? - Click To Read Article
Businesses that have a sound business and financial model are likely to flourish and grow as the economic activity picks up. This may be the perfect time for investors and entrepreneurs with good credit and access to investment funds to benefit by buying these successful businesses at a relatively lower price. But before you jump in and invest your hard earned savings into your dream business, you may want to conduct a thorough due diligence to make sure the business is right for you.

Tax Documents you must Maintain - Click To Read Article
What a great year this year has been for the tax payers in the US. Perhaps this may have been the best year for tax payers to get tax refund in recent history. We shall wait for the official figures from the US treasury, but from what we have seen at K&M Accounting and Tax Services in Charlotte, this year has been a bonanza of huge tax refunds for our clients. Now that the tax returns have been filed, what to do with all the paperwork and documents? This may be a good time to clean out the growing pile of tax and financial papers that clutters your home and office. Here's a list of what you need to keep

Is your Accounting System Broken? - Click To Read Article
In the past few months we have heard so much about Greece’s large debt burden and budget deficit leading to a contagion of problems that are likely to take the entire Euro Zone down. You wonder how this problem just revealed itself so suddenly without any prior warning. After all didn’t the Government of Greece and the Euro Zone’s central bank know they were taking on too much debt? Wouldn’t their accounting system tell them the level of debt and growing deficit as it got worse over the years? The reason why Greece's problems went undetected for so long is that they had a broken accounting system. Every year, K&M Accounting and Tax Services come across small and large businesses in Charlotte and Carolinas that have accounting systems that just don’t work. Here's some tips to find out if your accounting system is working for you.

Audit Proof your Business and Individual Tax Returns - Click To Read Article
While it is very encouraging to maximize legitimate deductions and receive big tax refund, it can be extremely painful to come under an IRS audit scrutiny. Many in the tax community believe that the audit-free ride for tax payers is likely to get over soon. IRS is likely to step up its audit enforcement in coming years as the federal government decides to close the massive budget deficit gap. IRS audits around 1.2 to 1.5 million tax returns – a small fraction of the total tax returns filed in the US. So, while it is still unlikely that you will be audited, the odds are increasing rapidly in middle to high income groups.

Small Businesses and Professionals can Save on Taxes - Top Tax Deductions - Click To Read Article
Most small business owners and professionals overlook their Biggest Expense in the Year – Taxes. Independent studies estimate that Small Businesses pay up to $150 Billion in excess taxes each year. This is money you can save through proper tax planning. As with everything else in your business, it takes careful planning and professional execution. Here are Top 5 Tax Deductions for Small Businesses and Professionals to Save on Taxes.

Choosing the Right Program for Tax Return Preparation and Filing - Click To Read Article
In recent years every aspect of our lives has been transformed by technology. Just as Google and Online Shopping have become part of our life, preparing and filing Tax Returns is no exception to the internet revolution. Almost 75% of individual tax returns are paperless and received by the IRS through the electronic filing (E-file) service and $180 Billion in tax refunds is paid electronically through direct deposit. Paper Returns are quickly becoming a thing of the past, but there is still the difficulty of choosing the right tax program and getting maximum tax refund from the IRS with peace of mind.

Do you Qualify for Home Office Tax Deduction for Small Business Owners and Professionals? - Click To Read Article
For several years taking a Home Office Tax Deduction was considered a red flag, inviting the IRS to Audit your tax return. But that may no longer be the case, with more and more businesses and individuals taking advantage of working from home and maintaining a healthy work-life balance. IRS is well aware of the rising trend in working from home office. As long as you use the ‘Home Office’ as IRS defines it. This one tax deduction alone may save you several thousand dollars in tax. For example if you are an independent Information Technology contractor and mostly work out of your client’s office, however you use part of your home to manage the administrative aspects of your profession or business, you may qualify to take the Home Office Tax Deduction. IRS has specific rules to qualify Home Office Tax Deduction.

How much Home Office Tax Dedcution can I Take? - Click To Read Article
Home Office deduction can probably save you thousands in expenses as well as Taxes. As more and more professionals and small business owners recognize the need to cut down on office expenses and have a better work life balance and with the growing square footage of American Homes in the past decade, it makes sense to use part of your home as an office. Not only can you save thousands on office expenses, you may also be able to reduce your taxes. IRS code provides a special tax deduction for Business use of your Home. You can deduct insurance, utilities, rent or mortgage expense as part of the Home Office dedcution. However there are specific guidelines and limits to the extent of how much you can deduct.

H1, L1 Visa Holder Special Tax Situation - Click To Read Article
Among the different tax situations we come across, H1 L1 visa holder tax situation stands out as a special tax situation. Several H1, L1 tax payers find out the uniqueness of the H1, L1 visa holder tax situation and special deductions available for hi-tech consultants. With the technology spending tightening and IT consultant billing rates getting crushed, every dollar saved in taxes seems like gold!





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