January 2020 Newsletter

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January 2020

If you have an IRS or
State of Michigan tax
issue that you would
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Michael Franskoviak, CPA President

Tax Season 2020 is Officially Here!

Now that the New Year is upon on us, and January 2020 kicks off tax season, it is time to begin thinking about income taxes and specifically what tax forms are due this month If you are a small business owner. 

Deadlines Due in January

January 7th 2020 – the IRS is officially open for e filing 2019 C Corporation business tax returns. January 27th 2020 the IRS will begin accepting 1040 returns for e filing.
Some other deadlines to take note of in the month of January are as follows:
January 15th 2020 – deadline for Fourth Quarter estimated payments for self-employed.
January 31th 2020 – deadline for filing forms W2 and 1099 to employees and subcontractors that you paid in your trade or business. If you pay more than $600 to an individual or unincorporated business for services, you are required to send them a form 1099. This is not optional, it is the law. You also are required to prepare and issue your landlord a 1099 for rent paid during the year. 


Read more important dates in January 2020 ….

A List of Things to Consider as You
Begin Your 2019 End-of-Year Review

A List of Things to Consider as You
Begin Your 2019 End-of-Year Review


As tax season is close ahead, now is the time to take a closer look at your company’s current tax strategies to make sure they are still meeting your needs and take any last-minute steps that could
save you money before tax time is in full swing. It’s also a good opportunity to start planning for the new year’s tax needs.With all of that in mind, please contact us at your earliest convenience to discuss your tax situation so we can develop a customized plan to address your business’s specific financial needs.Here’s a look at some of the issues we’re recommending clients consider as they begin their end-of-year review.


Key tax considerations you should be aware of:

By now, we’re in full swing under new tax laws. The Tax Cuts and Jobs Act (TCJA) was signed into law at the end of 2017, with taxpayers seeing the real affects when they filed their returns in 2019. This legislation has made a profound impact on many taxpayers and has created new planning opportunities. Here are a few items to note:


• Choice of entity — With the decrease in the corporation tax rate to 21% and the addition of the qualified business income deduction, it may be time to reconsider your type of business entity. This is a complex decision that has more than tax implications.We can help you walk through the pros and cons.

• Entertainment expenses are no longer deductible. Although that sounds simple, there are many complications. Business meals are still 50% deductible, but there are additional stipulations. This
could mean you need to track your expenses differently in your accounting system than you have in the past. It could also mean you need to request more information on invoices that could involve both
entertainment and meals.

• Purchases of property and equipment — With tax favorable options available to businesses, many purchases can be completely written off in the year they are placed in service. Let us help you determine when and how to purchase equipment as year-end approaches, so you receive the best tax treatment.

Method of accounting — More businesses have the opportunity to use the cash method of accounting. This can be he helpful for cash flow purposes and is simpler than the accrual method. There are qualifications that must be met, but we can help you understand if your business would benefit.

We’re here to help you navigate tax law changes and ensure you receive the most favorable tax treatment.


Partnership audit and adjustment rules:

New audit and adjustment rules are in effect. Careful planning today will help mitigate any unfavorable consequences on both the entity and the partners themselves. Also, be aware that even if your business isn’t a partnership, you’ll want to evaluate the effect these new rules could have if you’ve invested in any partnership.


Note state return due dates for tax returns:

Due dates changed for several types of business returns a few years ago. States are continuing to adopt new due dates in response to the changes and we can help you determine the due date in the states in which you are required to file a return.


Fraudulent activity remains a significant threat:

Our firm takes security very seriously and your business should as well. Fraudsters continue to refine their techniques and tax identity theft remains a significant concern. Beware if you:

• Receive a notice or letter from the Internal Revenue Service (IRS) regarding a tax return, tax bill or income that doesn’t apply to you.

• Get an unsolicited email or another form of communication asking for confidential information such as payroll or employee data.

• Receive a robocall insisting you must call back and settle your tax bill. Make sure you’re taking steps to keep financial information safe. Let us know if you have any questions or concerns about how to go about this.


The Affordable Care Act (ACA) and your taxes:

Recent tax law changes repealed the penalty that the ACA imposes on individuals who do not have health insurance. However, other aspects of the ACA are still in place. Contact us if you have questions about how this affects your business.

Preparing for disasters:

We hear in the news all the time about natural disasters such as fires, tornados and hurricanes. Do you have a disaster recovery plan in place for your business and, if so, have you updated it recently? We can help you review your plan, especially as it relates to financial information.

Wayfair ruling and sales and use tax:

The recent U.S. Supreme Court ruling in the case South Dakota v. Wayfair, Inc. affects where some businesses must file and pay sales and use tax. States are still making changes to their laws and filing requirements. Please ask us how this case impacts your business.


Be sure your retirement planning is up to date:

Have you revisited your company’s retirement plan lately? Take a look at the many retirement savings options in order to make sure that you are taking advantage of tax deductions as well as providing opportunities for owners and employees to save for retirement.


Year-end planning equals fewer surprises:

There are many other opportunities to talk about as the new year begins. And, many times, there may be strategies such as deferral of income, prepayment of expenses, etc., that can help you save taxes. We are here to help.

Please contact our office today to set up your 2019 year end review. As always, planning ahead can help you minimize your tax bill and position you for greater success in 2020.

Office News 


Mike attended a year end tax seminar titled “Tax Season Update” on December 12th that reviewed all the changes and legislative updates for the past year – 2019.

Our team is educated and ready to help our clients save taxes for the upcoming 2019 filing season.

2020 News!!!  We’re Moving!!

We are growing and we need more space. We will still be located in Troy.

Stay tuned in for more info.

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~  C. S. Lewis

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~ Dawn D. , Waterford MI


IRS Offer in Compromise Settlement Services

“Continue doing good for your clients. You doing so can be life changing. It was for us. Happy New Year and I hope you have a blessed Christmas!”

~ Jim & Mary B. , Dearborn MI 


If you are having State of Michigan or IRS tax problems we can help you, give us a call at 855-TAX-FIXX (855-829-3499), or click the button below.

667 E. Big Beaver Rd, Suite 107, Troy, MI 48083 | 855-TAX-FIXX | www.FranskoviakTax.com

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