Charles Dean Smith, Jr., CPA

In mid November, the IRS announced that interest rates will decrease by a percentage point for the calendar quarter beginning January 1, 2025. Learn more about what that means for individuals and corporations.

Tax planning is a critical piece of managing a franchise; however, many franchise owners simply don’t have the time or background knowledge to adequately or strategically tackle the tax implications of owning a franchise.
Learn about 5 of the most important and commonly overlooked tax considerations impacting franchisees and provide practical steps you can take to begin optimizing your tax situation.

The IRS took action quickly after Hurricane Helene traveled 400+ miles, claiming lives and wreaking havoc in the Southeast. Learn about the important information regarding deadline extension and penalty relief.

Explore this practical guidance for those thinking about taking the first step toward owning a franchise.

Taxpayers impacted by Hurricane Debby in South Carolina, North Carolina, Florida, and Georgia now have until February 3, 2025 to make certain tax payments and file various tax returns, including 2023 individual and business tax returns currently on extension.

Charles Dean Smith, Jr. recently attended the UPS Store Convention 2024 in Las Vegas. Read his top takeaways for franchise owners which are based on trends industry experts from around the country are seeing in the marketplace.

Whether you’re a young entrepreneur or a seasoned professional looking to make an investment or mid-career pivot, the decision to buy a franchise requires careful consideration and extensive planning.
This guide explores key considerations to help you navigate the decision to buy a franchise

The IRS has announced tax relief measures for individuals and businesses in 67 Texas counties affected by Hurricane Beryl. Taxpayers in these counties now have an extended deadline until February 3, 2025, to file various federal individual and business tax returns and to make any necessary tax payments.

When deciding between buying a franchise or starting an independent business, consider your long-term vision for your business. In this guide, learn about the pros and cons of buying a franchise.

In April, the U.S. The Department of Labor (DOL) released a new overtime rule that will raise the salary threshold for overtime pay eligibility by approximately 65 percent by 2025.

Whether a franchise is expanding operations, upgrading technology, or navigating through an economic downturn, the availability of financial resources is critical. Learn more about the many questions related to Small Business Administration (SBA) loans.

For those interested in starting their own business, buying a franchise can be an attractive option. We break down five key considerations to keep in mind when contemplating buying a franchise.

Learn about the basics of ROBS 401k Financing, benefits and challenges of the method, and what franchisees should consider before taking the first step.

By Charles Dean Smith, Jr., CPA Strong accounting practices lay a solid foundation for building success as a franchise owner. In this article, the experts […]

A small business owner and CPA, Charles Dean Smith understands firsthand what it’s like wearing many hats. Listen as he discusses the intricacies of managing franchises in this podcast.

When considering purchasing a franchise, it’s helpful to first become familiar with various terms and concepts. In this article, we’ll outline common franchising terms in four categories.

The IRS warns of phishing and smishing as top threats in its 2024 “Dirty Dozen” tax scams list. These tactics use fraudulent emails or texts posing as the IRS to extract personal and financial data. IRS Commissioner Danny Werfel urges caution, emphasizing the IRS does not initiate contact via email or text for such information.

In this article, we’ll outline types of strategic management tools for franchises and dive further into the various benefits.

Learn about the future of the franchise model and best practices of successful franchises.

In this podcast, we discuss a new piece of legislation, the Tax Relief for American Families and Workers Act of 2024. We do not know what will be in the final bill or if we will even have one. But what is in the bill that has many excited?

The IRS launched the Employee Retention Credit Voluntary Disclosure Program (ERC-VDP), providing an opportunity for employers to correct mistaken Employee Retention Credit (ERC) claims penalty-free, with submissions due by March 22, 2024.

On January 31, 2024 the House of Representatives passed the Tax Relief for American Families and Workers Act, providing business tax breaks and expanded child care credits. Learn if you should consider filing an extension for your 2023 individual and business tax return and consult with a professional tax advisor for evaluation.

The IRS has introduced a $1 billion penalty relief program to assist approximately 4.7 million taxpayers who did not receive automated collection reminders during the COVID-19 pandemic.

The IRS delayed implementing new, lower reporting requirements for Form 1099-K in 2023 and announced a phased-in approach for 2024.

The IRS has delayed the new Roth catch-up contribution rule for high earners until 2026. This change provides a strategic window for retirement planning, especially as fewer than 20 percent of eligible employees still don’t utilize catch-up contributions.

Following a pause on new Employee Retention Credit claims in September, the IRS is giving businesses an option to withdraw ERC claims if there is concern about the claim’s inaccuracy.

On September 14 2023, the IRS halted all new employee retention credit claims to combat rampant tax fraud. If a business has an open ERC refund claim, they are strongly encouraged to evaluate their eligibility with a professional tax advisor.

IRS announces new Hurricane Idalia tax relief and a new February 15, 2024 tax deadline for all individuals and businesses in South Carolina. 

A more tech-savvy IRS? That’s the plan, and it’s happening soon. In the 2024 tax filing season, taxpayers will have the option to go entirely paperless with the IRS.

The deadline for claiming the Employee Retention Credit (ERC) is getting closer. If you are an eligible business or nonprofit organization, you still have time to determine your eligibility and file your claim. That time, however, will run out soon with strict filing deadlines coming up in 2024 and 2025.

The FTC recently issued a consumer alert on the five most troubling myths about investing in a new franchise.  Potential franchise investors should consider these myths when evaluating potential investments. 

By Charles Dean Smith, Jr., CPA | Bipartisan proposed legislation would prevent individual taxpayers from incurring federal penalties for failing to accurately calculate estimated payments for current-year tax liability when requesting tax filing extension

If you had a surprise tax bill this past filing season, it may be an opportune time to review your paycheck withholdings and estimated tax payment requirements by using the free IRS tax withholding estimator. Changes to income tax withholding amounts on Form W-2s or 1099s can be made at any point during the year by filing an updated Form W-4.  

New battery sourcing requirements for electric vehicles took effect after April 18, 2023. This change means that far fewer vehicles qualify for the full $7,500 Clean Vehicle Tax Credit.

The IRS has warned taxpayers about pandemic relief fraud before. Employee retention credit fraud is now so widespread that the IRS added it to its annual list of Dirty Dozen tax scams.

The Internal Revenue Service (IRS) issued significant final regulations requiring most businesses to begin electronically filing certain kinds of business income tax and informational returns starting in 2024 for any returns first due after January 1, 2024. 

The Internal Revenue Service recently issued guidance clarifying the federal taxability of special one-time tax rebates and refunds issued by 21 states in 2022, including South Carolina and Virginia.

High-income retirees pay more in monthly Medicare premiums, but with careful planning – and an appeal when necessary – the premiums can potentially be reduced.

The Social Security Administration recently announced their annual inflation changes to the Social Security wage base, annual wage cap, and benefit amounts that will be effective January 1, 2023. These 2023 inflation increases are the largest percentage increases since 1981 and the fourth-largest increase ever for the Social Security program.

The IRS recently warned employers to beware of advertisements and solicitations that promise tax refunds that seem too good to be true. They promise business owners lucrative tax refunds from the Employee Retention Credit through filing amended payroll tax returns.

The IRS announced its annual inflation adjustments on October 18 in Revenue Procedure 2022-38.  As expected due to soaring inflation over the past year, the tax adjustments are significant this year with most adjustments increasing around 6 to 7 percent.   

IRS announces new Hurricane Ian tax relief and a new February 15, 2023 tax deadline for all individuals and businesses in both North Carolina and South Carolina. 

Millions of Americans will avoid paying more for healthcare next year, thanks to the Inflation Reduction Act. Employers need to be aware of potentially higher penalties related to the family glitch, and individuals can take steps to project income and avoid paying back excess tax credits.

South Carolina’s new $13.8 billion budget for the 2022-23 fiscal year includes a significant rate reduction and tax rebate checks for residents.

North Carolina’s legislature recently changed state tax laws governing employers’ ability to deduct the employee retention credit from state taxable wages and significantly expanded eligibility for a business grant program with an application deadline of June 1, 2022.

When inflation is high, certain companies could use it as an opportunity to save on taxes. Electing LIFO for the 2021 tax year might be a smart move, but time is running out. It’s also not too early to begin evaluating LIFO calculations for 2022.

For the first year, some S-corporation shareholders will be required to include Form 7203 with their individual or trust tax returns. With shareholder basis continuing to be a major IRS audit focus, shareholders need to make sure they are consistently tracking their basis on Form 7203 with all the required annual adjustments.

The IRS is sending taxpayers new letters about the 2021 Economic Impact Payments and Advanced Child Tax Credit payments. The letters contain information necessary for calculating your tax refund correctly.

In 2021 and 2022, a temporary change to the tax code allows companies to deduct 100 percent of most business meal and entertainment expenses. Guidance on per diem deductibility has also been clarified.

Health savings accounts provide a triple-tax benefit but are heavily underutilized. Learn how to maximize HSA savings and use them in retirement in this timely article for open enrollment season.

The long-awaited 2021-2023 biennial North Carolina budget was passed by the General Assembly and signed by Governor Roy Cooper on November 18, 2021. Media outlets have focused on high-profile provisions, such as raises for teachers and other state employees. Other provisions – including historic tax cuts – immediately impact all North Carolina taxpayers.

On November 5, 2021, Congress passed a $550 billion Infrastructure Investment and Jobs Act. This bill is separate from the Build Back Better Act, which includes the highly discussed and more significant tax proposal changes. Read on for a summary of tax changes passed by the infrastructure bill and proposed changes from the Build Back Better Act.

Businesses that started during the pandemic have a new opportunity to claim the Employee Retention Tax Credit for the 3rd and 4th quarters in 2021. There are minimal eligibility requirements to net up to $100,000 in tax credits for the year. Act now to include the credit on your 2021 3rd quarter payroll tax return.

North Carolina is on the verge of passing major tax changes affecting corporate, pass-through, and individual taxpayers. If passed, the state’s corporate income tax would be eliminated and 250,000 taxpayers would be removed from state tax rolls.