Nevada DETR Audits - What You Need to Know

Have you received an audit notice from the Nevada Department of Employment, Training, and Rehabilitation (DETR)? Try not to panic. Here’s what you should know:

The primary purpose of the audit is to verify that the numbers reported to DETR match the numbers in your books. The letter you received lists a bunch of documents the auditor wants to see at the audit meeting. The auditor will check your numbers against the ones you reported to DETR and make sure they match.

The secondary purpose of the audit is to make sure you haven’t been misclassifying your employees. This is where most companies get hosed.

If you have paid workers as independent contractors, the auditor wants to see backup documentation that they are, in fact, independent contractors

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How to Start a Business in Las Vegas Video Series

I’m Gina Bongiovi. I’m a lawyer who works with startups and small businesses. Whether you’re in the startup phase or whether you just have an idea rolling around in your head you might want to turn in to a business one day, you need to know how to start a business in Las Vegas. If you’ve done any research, you have found out that the process is pretty complicated and involves a whole bunch of steps; you have to go to a bunch of different agencies, you have to figure out a name, you have to figure out what entity you want to be, you have to figure out what sort of tax permit you need from the state, how you want the IRS to

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IRS Issues Guidance on Tax Treatment of Cell Phones; Provides Small Business Recordkeeping Relief

September 14, 2011

From the IRS NewsWire, issue IR-2011-93

 

WASHINGTON — The Internal Revenue Service today issued guidance designed to clarify the tax treatment of employer-provided cell phones.

The guidance relates to a provision in the Small Business Jobs Act of 2010, enacted last fall, that removed cell phones from the definition of listed property, a category under tax law that normally requires additional recordkeeping by taxpayers.

The Notice issued today provides guidance on the treatment of employer- provided cell phones as an excludible fringe benefit. The Notice provides that when an employer provides an employee with a cell phone primarily for noncompensatory business reasons, the business and personal use of the cell phone is generally nontaxable to the employee. The IRS will

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Burdensome 1099 Rule Repealed

Last year I wrote about a rule buried deep within the cavernous provisions of the healthcare reform act which would have required small businesses to file 1099 forms for every purchase over $600.  Small business owners across the nation could be heard grumbling about the provision, which would have placed an additional administrative burden on companies already spread thin.  

We can now breathe a collective sigh of relief because President Obama signed a bill to repeal this provision earlier this month.  Whew!  

Nevada Tax Amnesty Starting July 1, 2010

By Guest Blogger Rich Vallari Southwest Sales Tax Solutions (702) 233-0049

Nevada Governor Jim Gibbons has approved a tax amnesty program that will be effective from July 1, 2010 to September 30, 2010. Specific rules regarding the amnesty program have not yet been announced, but are expected soon.

In general, tax amnesty programs encourage people to file and to pay back taxes without incurring interest or penalties. In return, the tax jurisdiction benefits by collecting delinquent revenues and fees.

Nevada last enacted a tax amnesty in 2008. For that amnesty, companies with delinquent Sales/Use Tax liabilities, Modified Business Tax liabilities, and Business License Fees were included in the group allowed to participate in the amnesty program. Under the 2008

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New 1099 Rules for Businesses

Many businesses are familiar with the method of reporting payments to independent contractors to the IRS. Request a W-9 form from the contractor, keep track of how much you pay them, and any contractor who receives more than $600 in a year gets a 1099-MISC form from the company. Easy, right?

Now imagine you have to apply that $600/year threshold to everyone you pay, including vendors, suppliers, and service providers. Ridiculous, huh?

Unfortunately, it may become reality. According to a small section on page 737 of the new healthcare bill, companies will have to start issuing 1099 forms to any vendor who receives more than $600 a year starting in 2012. This includes goods AND services. Stop and think about how many of your vendors would be included. “Hi, Apple,

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IRS to Increase Focus on Self-Employeds

By Guest Blogger Reg Baker, CPA (702) 360-2823

If you are self-employed; beware! The Internal Revenue Service plans to increase audits of the self-employed by checking for unreported or understated income during correspondence audits.

Estimates by the IRS show that at least $68 billion of the tax gap (tax gap is defined as the difference between what the IRS estimates should have been collected in taxes and what was actually received; the gap was estimated at $345 billion in 2001) was due to self-employeds not filing or not accurately reporting revenues and expenses. The IRS conducted over 5 million correspondence examinations during the past 5 years that resulted in about $35 billion in additional taxes. For

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Nevada Use Tax – Are You at Risk?

By Guest Blogger Rich Vallari Southwest Sales Tax Solutions (702) 283-4686

Nevada Use Tax may be an area of exposure for individuals and businesses that purchase goods from out of state.

Nevada Use Tax is imposed upon property purchased for storage, use or consumption within Nevada. As a corollary to Nevada Sales Tax, Nevada Use Tax is imposed upon purchases from non-resident vendors and is intended to remove any incentive to avoid Nevada Sales Tax. Businesses and individuals risk exposure when the transaction meets the following criteria:

Tangible property is purchased from a non-resident vendor; The non-resident vendor does not assess Nevada Use Tax upon the purchase; The purchaser would have paid Nevada Sales tax had the transaction occurred within state borders.

Consider this example: Your Nevada

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Why Incorporate in Nevada – Low Taxes

I recently attended a luncheon where Nevada’s Secretary of State Ross Miller spoke about why Nevada has become an attractive state in which to incorporate. Chief among them is the low tax climate. Nevada has no state personal income tax; in fact, it’s prohibited by our constitution. Nevada similarly doesn’t charge income tax on domestic or foreign corporations. We also don’t have an estate tax or a franchise tax, which can be a costly startup expense for a new business. Nevada has no gift tax, which allows business owners to pass on their property and money without having to put money in our state coffers. Businesses enjoy no tax on inventory and no tax on corporate shares or LLC membership interests. Finally, our laws are written to limit tax increases,

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