Are you a small to medium sized business near the Peoria, IL area? Do you need help with business tax preparation? Then you have come to the right place. It can be confusing and difficult to prepare your business’ taxes, so we are here to help clear up any confusion. Each business is different as well, and we know the ins and outs of taxes. Your taxes will be different depending on if:
- You are a Sole Proprietorship, S Corporation, C Corporation, Limited Liability Corporation (LLC), or Partnership
- You have started your business in the current year
- Sold part or all of your business
- Are considering selling your business in the near future
- Have added partners or shareholders, or they have left your company
- You need guidance on “reasonable compensation” for shareholders
- Knowing you are taking advantage of all the deductions you are entitled to
- Is it time to change the Business Structure of your company to minimize taxes?
We can help you minimize your taxes each year! Each year, businesses lose tons of money because they aren’t aware of regulations and constantly changing laws. David Mills CPA is here to help guide you through your tax season.
Individual Tax Preparation
We also provide tax preparation near the Peoria, IL area to individuals looking for guidance. You may think your taxes are simple, but that couldn’t be farther from the truth. There are constant changes to the tax laws. Each year there are hundreds of changes. Can you keep up with those tax laws and regulations? Probably not. But we can! We will help you get the biggest return possible.
Contact us today and we will help you or your business with tax preparation. We look forward to being able to guide you or your business through the maze that can be taxes. It’s better to prepare now so you have peace of mind all year! Give us a call today.
April 15th is behind us and if you’ve filed your tax return you’ve probably had the chance to see how the Tax Act affected you. Here are some thoughts on this past tax season and about the tax seasons going forward:
- In 2018, the look of the 1040 tax form was completely different than in previous years. That didn’t diminish the amount of information needed. It will be a bit harder to trace your income and deductions from previous years.
- If you are 70 ½ or older consider charitable contributions directly from your IRA required minimum distribution (RMD). This reduces your taxable income and is a much more tax effective way than the usual cash contributions. This distribution must be from your account-do not take the money first and give to the charity.
- The IRS is already issuing guidance on more information they will require for the 2019 tax season in 2020. If you are divorced or separated we will need to know the date of the decree if we don’t already have it on file.
- As you have read, Illinois wants to replace the current flat tax to a graduated rate. For household incomes up to $250,000 the rate will be 4.95% or lower. If your family income is $250K or more, your rate goes to 7.75%. The top rate is 7.95% for incomes at $1,000,000 or more. Also, if you are at this level the higher tax is effective for all income, not just the incremental amount. There is no inflation indexing in these rates.
- If this tax change occurs, the State Business Tax Climate index estimates the overall tax rate will be 48th out of 50 states. It currently is at #36. Our property taxes rate the 45th highest (only 5 states are higher).
- The Illinois corporate rate will be 10.45% the third highest in the nation.
- Indiana, Iowa, Kentucky and Missouri have all lowered tax rates.
- Illinois has instituted the $15 minimum wage requirement by 2025.
- If you’re an S Corporation shareholder the IRS is requiring additional information if the company has loss, if you loaned the company funds and were repaid (full or partial), or dispose of your stock. They require that “basis” information be provided with the tax return. If we prepare your corporate tax return we’ll provide this information. If another tax preparer provides form K-1 please ask them for the basis statement.
- Illinois is sending notices requesting additional information on property tax payments and verification of Illinois withholding payments. If you receive a notice it’s not that something is wrong-Illinois wants further information. Failure to provide this information can result in you losing your Illinois refund.
There are some big changes that are happening and it will be interesting to see their effects. It’s best to stay on top of the changes. We can help you there! Contact us about your financial needs.
This tax season, make sure you are getting the tax return you deserve with our help. Taxes are a complex system and having a knowledgeable and experienced professional at your back can be the best way to improve your return. We offer tax planning and preparation for both individuals and small to medium sized businesses.
Tax Preparation for Businesses
For business owners, your personal and businesses taxes are closely linked. It’s especially important for business owners to have proper tax preparation. One issue many business owners face is that sometimes business owners think only of yearly taxes, but they are subject to many more such as:
- Federal and state payroll withholding and taxes
- Appropriate tax deposits to avoid penalties
- Sales tax and use tax issues
- Worker’s compensation issues
- Local sales taxes
- Union reporting
- Retirement plan contributions and deductions
We have the experience and knowledge required to guide you through the many regulations and laws. Minimizing these taxes is a goal of every business. We can help you and your business through our advising!
Tax Preparation for Individuals
Many individuals believe that their tax return is relatively simple. You can go the simple route, but you are likely making mistakes and missing out on deductions you are able to claim. We can help you get the most out of your tax return.
- If you are a new client, we review your last 2-3 years tax returns to check for accuracy.
- No matter if you owe money on your return or have a large refund, we will help you adjust your withholding tax to eliminate problems.
- Tax returns are carefully reviewed to ensure you take all the deductions you are entitled to.
- As part of our income tax preparation process, we electronically file your tax return.
- We prepare most state income tax returns.
- We can also help you with out-of-state individual tax preparation.
Get the most out of your tax return, call us today so we can provide you with professional tax preparation. You’ll see the difference for yourself and your business.
If you are like most people when it comes to taxes, you don’t feel confident in what you are doing. A tax consultant can help relieve stress and reduce mistakes while filing taxes. Check out five reasons why you should consider hiring a tax consultant.
1. You Find A Mistake On A Previous Return
Have you found a mistake on a previous tax return in the past three years? You can work with a tax constant to file an amended return. A consultant can help to minimize any damage that may have been caused. It can also provide you with peace of mind in knowing that your tax return will be properly handled.
2. Your Marital Status Has Changed
Have you gotten married or divorced in the last year? If so, your tax filing may be affected.
- Newly Married Couples: A consultant can help you decide whether to file your taxes together or separate. It is helpful to get a tax consultant’s opinion of what will be most beneficial since every couple’s situation is different.
- Recently Divorced Couples: A consultant can help you determine if it is best to file separate or together. They can also help ensure that alimony has either been paid or received properly.
3. Filling Your Own Taxes Can Be Time Consuming
Filling Your taxes can be time-consuming. A tax consultant will be able to work quickly and efficiently. They will be able to save you the stress of making sure your taxes are done right.
4. You Work or Live In Different States
Taxes can become confusing if you live and work in different states. If you’ve recently moved to a new state it can be confusing as well.
A tax consultant will be able to assist you in the different states’ tax rules and can help you sort out any issues that arise.
5. You’ve Started A Business
A common mistake of new business owners is waiting to hire a tax professional. How you file your taxes the first year can impact future tax filings. It is important to start off right.
David Mills Can Assist You With Taxes
David Mills is proud to assist our customers with their taxes and make recommendations that fit your needs. Check out our Income Tax Planning service HERE. If you need assistance with your taxes, contact David Mills today. We look forward to working with you!
Planning & Preparation For Taxes
With tax season approaching, it is time to start planning and preparing for taxes. In order to effectively plan for taxes, it is important to plan with an experienced professional. Continue reading to learn about David Mills’ approach to tax planning and tax preparation.
How does David Mills help you and your company with effective tax planning? We take into consideration the following things:
- Interviewing you to find out what your goals are
- Review past year’s returns
- Advise on current and proposed tax legislation.
If you are a business owner, we take into consideration both your personal and business objectives. At David Mills, we take a long-term approach to planning. Our team will provide several planning scenarios that consider both your short and long term goals.
In recent years, there have been over 300 tax law changes and revisions. Several of the laws have limited time frames. The David Mill’s team keeps up with all of the current tax law developments that affect you and your business.
We also can answer any questions about any returns that you have prepared yourself or by someone else who prepared them for you. Our team can review your past tax returns to ensure they are accurate and provide you with advice. Click HERE to learn more about our tax preparation service.
Contact David Mills CPA Today
As tax season approaches, it is time to call David Mills. Our team will be happy to help you with both planning and preparation for taxes. Contact our team today for all of your tax needs!