Piles of cash represented by $100 US bills

File Cash Transaction Reports For Your Business

Does your business receive large amounts of cash or cash equivalents? You may be required to submit forms to the IRS to report these transactions.

Cash Filing Requirements

Each person engaged in a trade or business who, in the course of operating, receives more than $10,000 in cash in one transaction, or in two or more related transactions, must file Form 8300.

Any transactions conducted in a 24-hour period are considered related transactions. Transactions are also considered related even if they occur over a period of more than 24 hours if the recipient knows, or has reason to know, that each transaction is one of a series of connected transactions.

To complete a Form 8300, you will need personal information about the person making the cash payment, including a Social Security or taxpayer identification number.

You should keep a copy of each Form 8300 for five years from the date you file it, according to the IRS.

Reasons For The Reporting

Although many of the transactions are legitimate, the IRS explains that “information reported on (Form 8300) can help stop those who evade taxes, profit from the drug trade, engage in terrorist financing and conduct other criminal activities. The government can often trace money from these illegal activities through the payments reported on Form 8300 and other cash reporting forms.”

What’s Considered “Cash?”

For Form 8300 reporting, cash includes U.S. currency and coins, as well as foreign money. It also includes cash equivalents such as cashier’s checks (sometimes called bank checks), bank drafts, traveler’s checks and money orders.

Money orders and cashier’s checks under $10,000, when used in combination with other forms of cash for a single transaction that exceeds $10,000, are defined as cash for Form 8300 reporting purposes.

Note: Under a separate reporting requirement, banks and other financial institutions report cash purchases of cashier’s checks, treasurer’s checks and/or bank checks, bank drafts, traveler’s checks and money orders with a face value of more than $10,000 by filing currency transaction reports.

E-filing And Batch Filing

Businesses required to file reports of large cash transactions on Form 8300 should know that in addition to filing on paper, e-filing is an option.

The form is due 15 days after a transaction and there’s no charge for the e-file option. Businesses that file electronically get an automatic acknowledgment of receipt when they file.

The IRS also reminds businesses that they can “batch file” their reports, which is especially helpful to those required to file many forms.

Setting Up An Account

To file Form 8300 electronically, a business must set up an account with FinCEN’s BSA E-Filing System. For more information, interested businesses can also call the BSA E-Filing Help Desk at 866-346-9478 (Monday through Friday from 8 am to 6 pm EST) or email them at BSAEFilingHelp@fincen.gov.

At David Mills, CPA, LLC, we’re small business tax experts. Contact us with any questions or for assistance.

Thoughts on the 2018 Tax Season

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.
    • tax seasonIf 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.

Get Help with Tax Season for You or Your Business

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:

  • tax seasonFederal 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.

  • tax seasonIf 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.

5 Reasons to Hire A Tax Consultant

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 Tax consultant

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.  If you need assistance with your taxes, contact David Mills today. We look forward to working with you!

 

 

Planning & Preparation For Taxes

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.

Tax Planning planning and preparation for taxes

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.

Tax Preparation

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.  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!