IRS to use new tool in audits

The Internal Revenue Service recently issued a Request for Proposal to software companies for specialized software to comb through social media and collect information on audit suspects. It is not clear when the new program will start; however, in the RFP, the IRS expressly stated that the software is to target those already under audit and not to sweep social media for potential audit targets.

Regardless, this is yet another reason businesses and individuals need to be careful with their official and personal posts on Facebook, Instagram, Twitter, etc.

 

IRS turns to artificial intelligence to identify potential audits

The Internal Revenue Service is adding artificial intelligence (or “AI”) to the agency’s tool box for identifying potential audits or criminal tax evaders. The AI works by taking in all available information from past and present IRS audits and prosecutions to discover any pattern of factors that results in more changes at audit or convictions for tax fraud.

The AI will then apply any patterns when reviewing new tax returns and mark any that the computer thinks demonstrate increased likelihood of significant changes under audit or criminal conviction.

As voluntary compliance with US tax code is declining and the number of tax returns the IRS most process, expect the Service to turn to more and more advanced technology like AI in its fight to collect as much money as possible.

If you want advice on avoiding problems in the future or you under audit and need help now, contact P. Christopher Wegner at 239.449.9200 or cwegner@wegnerlawfirm.com.

 

New Business Owner Beware!

If you just formed a new business in Florida, you will start receiving all types of unsolicited mail. Some of the mail will look official and display names such as “Florida Corporation Register Inc.” or “Florida Annual Reports LLC.” These letters almost always start with some form of warning or call to action in big bold or red letters instructing you to do any of a number of things supposedly required to keep your new company open.

The letters will then include some sort of form asking for information and telling you to send check or money to an address in Tallahassee. Everything from the envelope to the print is made to appear official.

The problem, they are not official. Countless companies inundate new business owners with letters attempting to take money from an unsuspecting small business owner. Each company trying to take between $50 to $250 from the confused entrepreneur.

While some of these letters are very convincing, you may disregard any letters that you receive via the mail regarding a newly formed business. The State of Florida only contacts business regarding their state registration or annual report via email. Therefore, you can save a significant amount of frustration, uncertainty and money by throwing out any imposter asking for money via the postal service.

In addition, as we approach the new year and the limited liability companies, partnerships and corporations have to file their annual reports with the State of Florida, there is another scam business owners should know about. Almost everyone has seen a letter claiming the need to file corporate records with the state. The State of Florida does not require businesses to create or file any corporate or company minutes or other similar records.

Starting a new business can be scary and it is hard enough without con artist and scammers working hard to take advantage of you. Hopefully, this post will help Florida business owners avoid becoming prey to these scams.

If you are confused or concerned, you can always come to Wegner Law PLLC for help. Call 239.449.2900 or email cwegner@wegnerlawfirm.com for answers to all your questions.

How much should you expect to pay on taxes in 2019

While we are not yet out of 2018, it is about time to begin thinking about 2019 liabilities. (That said, there is still time to lower your 2018 taxes by deferring income and accelerating expenses, etc.).

Before we can design a tax strategy for you and your business, it may help to get an idea of what your rates could be:

2018 tax brackets and income ranges for single taxpayers

  • 10%: $0 to $9,525 of taxable income
  • 12%: $9,526 to $38,700
  • 22%: $38,701 to $82,500
  • 24%: $82,501 to $157,500
  • 32%: $157,501 to $200,000
  • 35%: $200,001 to $500,000
  • 37%: over $500,000
  • Standard deduction: $12,000

2018 tax brackets and income ranges for married taxpayers filing jointly and surviving spouses

  • 10%: $0 to $19,050 of taxable income
  • 12%: $19,051 to $77,400
  • 22%: $77,401 to $165,000
  • 24%: $165,001 to $315,000
  • 32%: $315,001 to $400,000
  • 35%: $400,001 to $600,000
  • 37%: over $600,000
  • Standard deduction: $24,000

2018 tax brackets and income ranges for taxpayers filing as head of household

  • 10%: $0 to $13,600 of taxable income
  • 12%: $13,601 to $51,800
  • 22%: $51,801 to $82,500
  • 24%: $82,501 to $157,500
  • 32%: $157,501 to $200,000
  • 35%: $200,001 to $500,000
  • 37%: over $500,000
  • Standard deduction: $18,000

Tax brackets and deductions from Business Insiderhttps://www.msn.com/en-us/money/taxes/how-the-new-gop-tax-law-will-affect-your-finances-next-year/ar-BBQ1vNi?ocid=spartanntp

Contact Wegner Law PLLC today to learn what we can do for you.

End of Year Tax Planning

End of year tax planning can reduce your taxes significantly for both this year and next (and beyond) with minimum investment of time and money. With the new tax laws passed last year, there are even more reasons to reevaluate your “tax circumstances.” From deferring taxes on large end of the year payments to shifting income into lower tax brackets, end of year tax planning is something small business owners should be taking advantage of now.

To learn more, contact P. Christopher Wegner today at 239 449 9200 or cwegner@wegnerlawfirm.com.

The reindeer have a good lawyer.

Wegner Law PLLC Closes $1.4 Million Offering

Wegner Law PLLC helped a technology client raise $1,400,000 in capital as part of private offering. P. Christopher Wegner was lead attorney for the offering drafting all significant documents and providing advice on how to follow the complex state and federal securities laws.

To learn more about how Wegner Law PLLC can help you, call us at 239.449.9200 or email us at cwegner@wegnerlawfirm.com.

IRS Announces Additional Audit Focus

The IRS announced that it its Large Business and International division will continue to look at international tax compliance in taxpayer audits. This is no big surprise as the division has named cross-border taxation as an issue of primary concern each year for almost the past decade.

As such, this announcement serves as a reminder that the IRS is serious about enforcing the international tax laws and that ignorance of the rules will not protect you or your company from a costly audit and, possibly, penalties.

Call or email Chris Wegner today for more information.

P. Christopher Wegner to give presentation on asset protection for business owners

Join Wegner Law PLLC and P. Christopher Wegner, Esq., LL.M., on October 31, 2018, at the Naples Business Accelerator for a discussion on how you can protect your assets for yourself and your family.

Chris will discuss using limited liability companies and corporations for simple, yet extremely effective, asset protection as well as more complex techniques utilizing trusts. He will also explain why most Florida attorneys fail to properly set up single member limited liability companies that will protect their clients from liability. More importantly, Chris will tell you a simple way to avoid or correct this mistake and add extremely effective asset protection for you and your family for next to nothing.

The presentation titled CYA: Covering Your Assets. Modern Asset Protection for Entrepreneurs and Business Owners will start at 12:00pm on Wednesday, October 31, 2018 (Halloween), on the second floor of the Naples Business Accelerator Building located at 3510 Kraft Road, Naples, Florida 34015. There is no need to register; however, you should bring your own lunch to this Brown Bag Lunch at the Accelerator presentation.

For more information or questions, you may call Wegner Law PLLC at 239.449.9200 or email Chris at cwegner@wegnerlawfirm.com.

 

Wegner Law PLLC closes $1.2 million capital raise for client

Wegner Law PLLC helped another client raise funds this week when P. Christopher Wegner closed on a $1.2 million capital raise. Chris has been working with the client for eight months from formation through today and assisted by: (1) drafting the operating agreement; (2) drafting employment agreements; (3) filing paperwork to convert from a Delaware limited liability company to a Delaware corporation; (4) drafting bylaws; (5) drafting shareholders’ agreements; (6) drafting convertible debt instruments for the offering and much more.

The client is currently in discussions to form a joint venture with a publicly traded power house in the client’s industry. Wegner Law PLLC is excited for the client and looks forward to doing many more great things in the future.

 

Senators attempt to delay Wayfair

A small number of Senators have put forth a bill that would prohibit states from imposing sales tax on out of state retailers with less than $10 million in annual sales until the states can agree on how best to implement the new taxes.

North Dakota v. Wayfair, Inc. is the recent Supreme Court case holding that states can impose sales tax on out of state retailers. This proposed legislation is one of the many different ways that federal and state governments are dealing with this drastic change.

To learn more about Wegner Law PLLC or contact us with questions, visit www.wegnerlawfirm.com or call P. Christopher Wegner at 239 449 9200 today. You may also email Chris at cwegner@wegnerlawfirm.com for more information.