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Murry Guy, CPA

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Back to School Sales Tax Holiday Weekend for 2025

Posted by Murry Guy, CPA on Jul 17, 2025

Alabama's Back-to-School Sales Tax Holiday Weekend: July 18–20, 2025

The State of Alabama will participate in its 20th annual Back-to-School Sales Tax Holiday Weekend, beginning Friday, July 18, 2025, at 12:01 a.m. and ending at midnight on Sunday, July 20, 2025. During this three-day event, shoppers can purchase a variety of school-related items free of the state’s 4% sales tax.

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Posted in News & Events

How to Prepay Expenses Strategically and Report Them Accurately

Posted by Murry Guy, CPA on Jul 14, 2025

In accrual-basis accounting, timing is everything. One core principle of U.S. Generally Accepted Accounting Principles (GAAP) is the matching concept, which requires organizations to recognize expenses in the same period as the revenue they help generate. Prepaid expenses — payments made for goods or services before they’re used — must be handled carefully to conform to this principle. Here’s an overview of the accounting rules for reporting prepaid items and guidance to help you manage them effectively.

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Posted in Accounting & Outsourcing

Dos and Don'ts to Help Protect Your Business Expense Deductions

Posted by Murry Guy, CPA on Jun 24, 2025

If you’re claiming deductions for business meals or vehicle expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax auditors are adept at rooting out inconsistencies, omissions, and errors in taxpayers’ records, as illustrated by one recent U.S. Tax Court case. (T.C. Memo. 2024-82)

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Posted in Business Tax

The IRS Recently Announced 2026 Amounts for Health Savings Accounts

Posted by Murry Guy, CPA on Jun 11, 2025

The IRS recently released the 2026 inflation-adjusted amounts for Health Savings Accounts (HSAs).Employees will be able to save a modest amount more in their HSAs next year.

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Posted in Tax Updates, Tax Planning

Hiring Independent Contractors? Make Sure You're Doing it Right

Posted by Murry Guy, CPA on May 20, 2025

Many businesses turn to independent contractors to help manage costs, especially during times of staffing shortages and inflation. If you’re among them, ensuring these workers are properly classified for federal tax purposes is crucial. Misclassifying employees as independent contractors can result in expensive consequences if the IRS steps in and reclassifies them. It could lead to audits, back taxes, penalties, and even lawsuits.

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Posted in Accounting & Outsourcing

Old Invoices, New Rules: Tap Into the Power of the AR Aging Report

Posted by Murry Guy, CPA on May 13, 2025

For many businesses, accounts receivable (AR) are more than just a line item on the balance sheet. This account provides a key indicator of potential cash flow, customer relationships and overall financial health. So proactive AR management is critical. The AR aging report has long been a cornerstone of expediting collections and reducing credit risk, but it’s taken on greater significance with the implementation of new accounting rules for recognizing credit losses.

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Posted in Accounting & Outsourcing

Watch Out for the 100% Penalty

Posted by Murry Guy, CPA on Apr 11, 2025

Some tax sins are much worse than others. An example is failing to pay over federal income and employment taxes that have been withheld from employees’ paychecks. In this situation, the IRS can assess the trust fund recovery penalty, also called the 100% penalty, against any responsible person.

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Posted in Accounting & Outsourcing

How a Business Owner's Home Office Can Result in Tax Deductions

Posted by Murry Guy, CPA on Mar 26, 2025

As a business owner, you may be eligible to claim home office tax deductions that will reduce your taxable income. However, it’s crucial to understand the IRS rules to ensure compliance and avoid potential IRS audit risks. There are two methods for claiming this tax break: the actual expense method and the simplified method. Here are answers to frequently asked questions about the tax break.

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Posted in Business Tax

Questions About Taxes and Tips? Here Are Some Answers for Employers

Posted by Murry Guy, CPA on Feb 11, 2025

Businesses in certain industries employ service workers who receive tips as a large part of their compensation. These businesses include restaurants, hotels, and salons. Compliance with federal and state tax regulations is vital if your business has employees who receive tips.

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Posted in Business Advisory

The Standard Business Mileage Rate Increased in 2025

Posted by Murry Guy, CPA on Jan 22, 2025

The nationwide price of gas is slightly higher than it was a year ago, and the 2025 optional standard mileage rate used to calculate the deductible cost of operating an automobile for business has also gone up. The IRS recently announced that the 2025 cents-per-mile rate for the business use of a car, van, pickup, or panel truck is 70 cents. In 2024, the business cents-per-mile rate was 67 cents per mile. This rate applies to gasoline and diesel-powered vehicles as well as electric and hybrid-electric vehicles.

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Posted in Business Tax

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