Archives for July 2020

Time to Pay Up! Why it’s in Your Best Interests to File Your Taxes Early

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With the filing deadline moved to July 15th, you may have put off filing your taxes for as long as possible. Maybe you even requested an extension for October 15th. Most taxpayers dread the tedious task of compiling their financial documents and filing their taxes. Unfortunately, the longer you procrastinate, the greater the chances that something will go wrong. No matter the deadline, it’s always smarter to file your taxes sooner rather than later. Here’s why:

Help avoid tax identity theft. Tax return fraud is one of the most common and fastest growing forms of identity theft. In a nutshell, an identity thief steals your employment information and Social Security number, and files a fraudulent tax return on your behalf. They can steal your refund, or put you in the hole owing back taxes you might not actually owe. By filing your taxes as early as possible, a thief won’t have the chance to file a fraudulent return.

Find and correct mistakes sooner. Give yourself more time to fix any mistakes on your tax documents. For example, your employer might record the wrong earnings on your W-2. If you discover the mistake right before the filing deadline, you aren’t going to have enough time to get it resolved. Your tax return will end up getting delayed, which can result in having to request an extension and accrue penalties and interest.

Pay smaller penalty fees. Unfortunately, many taxpayers underestimate their tax liability during the year. That means they underpay and end up owing the government money. The IRS charges taxpayers a penalty for underpaying their taxes, as well as interest on the amount of taxes that they owe. So the sooner you file and pay any remaining taxes, the smaller your financial penalty and interest will be. If you can’t pay up front, you may have tax relief options to help you settle your debt.

Get it over with. There’s no better tax relief than just finally taking care of your taxes. If you are one of the many taxpayers that get stressed over taxes, you will actually feel better if you don’t procrastinate filing your tax return. Even if you owe back taxes, having a firm like ours represent you can be worth it in the long run.

Magone & Company specializes in tax resolution, and we’re experts in navigating the IRS maze. Reach out to our firm at (973) 301-2300 to schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax challenges.

Taxation in a Time of Crisis: 4 Tips to Make Tax Time Less Taxing

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Whether it’s a global pandemic shutting the economy down for months, a stock market crash that terrifies investors or a housing industry slide that makes real estate a risky bet, living through tough economic times is never easy. But how you handle yourself and your money during a crisis can make all the difference. If you do it right, you could emerge stronger, wiser and richer on the other side.

If your income is uncertain, it can be hard to predict how much you might owe the IRS or how you can make those payments. And if you’re self-employed or a gig worker, this economic uncertainty can be even greater. So what can you do about your taxes when the economy takes a downturn? Here are some tips to make tax time less taxing when a crisis hits.

  1. Research filing extensions and be aware of new deadlines. During a period of economic turmoil, tax filing deadlines may be extended or relaxed. Do your homework and see how much time you really have. In the wake of the COVID-19 pandemic, the IRS extended the normal tax filing deadline to July 15, and many state and local governments followed suit. The same may happen in future crises, and it never hurts to find out for sure.
  2. File promptly if you’re expecting a refund. Getting extra time to file can be a welcome relief if you owe money to the IRS. But if the government owes you, it makes sense to file as quickly as possible. The processing of tax refunds is often disrupted during a crisis, due to short staffing and different procedures suddenly in place. The sooner you file, the sooner you will have your tax refund money.
  3. File promptly even if you’re NOT expecting a refund or might owe back taxes. The IRS is starting to enforce collections again, but they’re not oblivious to the financial crisis that many Americans are experiencing. The unemployment rate recently jumped to almost 15% — the highest unemployment rate since the Great Depression. And the outlook is uncertain. The IRS will likely consider settlements and more favorable terms to taxpayers in trouble, especially if their income drastically decreased due to COVID-19. So it’s important to file your taxes and be current in order to explore tax relief options.
  4. Use investments to cover the amount you owe. It’s easy to feel depressed when the stock market is reaching new lows every day. That’s why engaging in strategic tax loss harvesting could reduce your tax bill substantially when filing season rolls around. Tax loss harvesting is when you sell investments at a loss in order to reduce your tax liability. If you have investments that have not worked out as you’d hoped, selling them now and locking in the loss can be a great way to offset capital gains and lower your taxable income. As always, this is general guidance for informational purposes only. Be sure to consult your tax advisor for advice specific to your situation.

An economic crisis can make tax time even more difficult. That’s why it’s critical to have the right CPAs in your corner. Reach out to the experts at Magone & Co at (973) 846-8265, and we’ll schedule a no-obligation confidential consultation to explain your options.

 

6 Trends That Can Impact Your Talent Acquisition Strategy

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Now more than ever, having the right talent is critical to the health of your business, giving it the best chance to grow and thrive. Though it may seem like a hirer’s market right now, having a flood of candidates can make finding the right fit even more of a challenge.

As any HR pro will tell you, success means prioritizing the candidate experience and staying up to date on these current talent acquisition trends:

Collaborative hiring. Did you know that 66% of candidates believe interactions with employees are the best way to get insight about a company? So when you have a team that loves where they work, why not involve them in the recruiting process? By tapping into the personal networks and reach of current team members, you won’t just expand your talent pool; you’ll also generate referrals from candidates who’ve heard about all the advantages of working for your company.

Personalization. Do you treat each job offer as a unique proposition for the individual or a generic package that you hand out to anyone filling that position? By tailoring employee perks and benefits to better meet the needs of specific demographics, your organization can set itself apart from the competition. From volunteer time off to student loan repayments, think about how you can make your next offer uniquely attractive to the person receiving it.

Workplace flexibility. Today’s job candidates are increasingly looking for companies that provide an appealing work/life balance. Offering remote workplace hours or even a four-day workweek can help attract new prospects and increase engagement with your current workforce. Flexibility can be the deciding factor on whether someone accepts your offer or goes elsewhere.

Culture. What makes your business stand out? How do you support your employees day in and day out? Twenty-two percent of American workers say that culture matters most when it comes to employee satisfaction. It’s critical to create and foster a workplace environment that makes people want to come to work each day.

Employer branding. In today’s job market, employer branding is more significant than ever. How visible is your brand? Is your presence consistent across every touchpoint? Cohesive branding done right will embody your business philosophy and values throughout every interaction, building your reputation as a desirable place to work.

Artificial Intelligence (AI). Automated recruiting platforms help hiring managers cut through the clutter of unqualified candidates and better focus their resources on bigger-picture issues. From screening resumes and scheduling interviews, AI can help ensure you’re only dealing with the best people for the job.

Step back and take a fresh look at how your organization approaches talent acquisition. If your recruiting efforts are falling flat, it may be time to rethink your strategy with these trends in mind. The success of your business is counting on it.