Chase

Insogna CPA Amongst Top 18 Best Accountants in Austin for 2021

In October, Insogna CPA was notified of its inclusion in the Expertise.com Best Accountants in Austin list. Out of over 170 accountants ranked for this award, Insogna CPA was nominated via customer referral and was then ranked #18.

“Our goal is to connect people with the best local experts. We scored Austin Accountants on more than 25 variables across five categories, and analyzed the results to give you a hand-picked list of the best.” the Expertise website states.

Selection Criteria

Availablity
Qualifications
Reputation
Experience
Professionalism

It’s an honor to be named among the winners and receive a score of A+ for reputation and professionalism,” commented Chase Insogna, CPA, and managing partner. ” We truly love helping our communities members and providing the best services we can to clients.”

Availablity
Qualifications
Reputation
Experience
Professionalism

Our Other Awards

The Buzz About QSB Stock

With so many promising companies in the early stages of development, QSB stock gives everyday investors the chance to support the businesses they believe will be the next successful venture. With the attractive business tax benefits of qualified small business stock (QSBS) adding to the allure of investing in startups, QSBS is fast becoming a popular option for private shareholders looking to invest in shares with low minimum investment requirements.

For those who are not yet familiar with QSBS, it is helpful to understand what it is and what QSBS offers so you, too, can reap the benefits.

Breaking Down QSB Stock

Qualified small business stock (QSBS) refers to shares of stocks from qualified small businesses in the United States as defined under 1202 of the Internal Revenue Code. It is stock purchased from qualified small businesses after August 10, 1993. QSBS comes from any active domestic C corporation with assets valued at its original cost not exceeding $50 million soon after the stock issuance.

Qualified Small Business Eligibility Provisions

Qualified small businesses that may sell QSB stocks can include organizations in industries such as retail, manufacturing, and technology. It excludes hospitality, professional services (law, healthcare, architecture), agriculture, mining, and finance (banking and insurance). The companies, to be eligible, must use at least 80 percent of their assets actively in one or more of the qualified businesses and remain as a C corporation for the investor’s withholding period of the QSB.

QSB Tax Benefits

People who invest in QSBS can enjoy the following benefits:

100-percent exclusion from U.S. federal capital gains tax
100-percent exclusion from the AMT (alternative minimum tax)
100-percent exclusion from the 3.8 percent NIIT (net investment income tax)

However, for QSB stock issued before September 28, 2010, section 1202 gives a lower percentage tax exclusion, usually 50 or 75 percent. There is also a 28 percent tax rate for gain not excluded and subject to the NIIT.

Gain Exclusion Limitation

The tax savings under Section 1202 provide a generous limitation to the amount of gain from QSBS each taxpayer and issuer can exclude Section 1202 limits savings from business taxes of individuals to greater than:

$10 million, or $5 million for married couples who are filing separately.
Ten times the taxpayer’s combined basis in the amount of QSBS sold during the taxable year.

QSB Tax Exemption Eligibility Requirements

For individuals to claim the business tax benefits from a QSBS, they must meet the following requirements.

The investor should be an individual, not a corporation.
The investor should be US citizens or non-United States citizens living in the US.
The investor must have purchased the stock directly from the company and not in a secondary market such as the New York Stock Exchange (NYSE) or NASDAQ.
The investor must hold the QSBS for at least five years before selling and must have purchased the stock with either property, cash, or as a payment for service rendered. However, if the investor wants to sell the QSB stock before the required five-year holding period, the investor may avoid paying tax by investing the profit from the sale into another QSB stock granting the investor has held the QSB stock traded for over six months. If the QSBS meets these requirements, the investor has 60 days to complete the rollover into another QSB stock.
The C corporation that issued the stock must use 80 percent of its assets in qualified trades of businesses.

Insogna CPA will ensure that you get maximum benefits from your QSB stock. Contact our team of wealth building experts today to get started!

INSOGNA CPA Ranks No. 126 on Inc. Magazine’s List of the Fastest-Growing Private Companies in Texas

Companies on the 2021 Inc. 5000 Regionals: Texas list employed more than 44,000 people.

Austin, TX, March 16, 2021 – Inc. magazine today revealed that Insogna CPA is No. 126 on its second annual Inc. 5000 Regionals: Texas list, the most prestigious ranking of the fastest-growing Texas-based private companies. Born of the annual Inc. 5000 franchise, this regional list represents a unique look at the most successful companies within the Texas economy’s most dynamic segment—its independent small businesses.

“We are excited to be recognized, for the 2nd year in a row, by Inc. Magazine”, said Chase Insogna, Founder and President of Insogna CPA. Our experienced team of professionals work diligently to serve our valued customers every day. This dedication to delivering great customer experiences has led to significant year-over-year growth at Insogna CPA”, he continued. “We are extremely proud of our team’s success and look forward to continue providing ongoing financial expertise to our valued customers.”

The companies on this list show stunning rates of growth across all industries in Texas. Between 2017 and 2019, these 250 private companies had an average growth rate of 210 percent and, in 2019 alone, they employed more than 44,000 people and added more than $9 billion to the Texas economy. Companies based in the largest metro areas—Dallas, Houston, and Austin—brought in the highest revenue overall.

Complete results of the Inc. 5000 Regionals: Texas, including company profiles and an interactive database that can be sorted by industry, metro area, and other criteria, can be found at https://www.inc.com/inc5000/regionals/texas.

“This list proves the power of companies in Texas no matter the industry,” says Inc. editor-in-chief Scott Omelianuk. “The impressive revenues and growth rates prove the insight and diligence of CEOs and that these businesses are here to stay.”

More about Inc. and the Inc. 5000 Regionals

Methodology

The 2021 Inc. 5000 Regionals are ranked according to percentage revenue growth when comparing 2017 and 2019. To qualify, companies must have been founded and generating revenue by March 31, 2017. They had to be U.S.-based, privately held, for profit, and independent—not subsidiaries or divisions of other companies—as of December 31, 2019. (Since then, a number of companies on the list have gone public or been acquired.) The minimum revenue required for 2017 is $100,000; the minimum for 2019 is $1 million. As always, Inc. reserves the right to decline applicants for subjective reasons.

About Inc. Media

The world’s most trusted business-media brand, Inc. offers entrepreneurs the knowledge, tools, connections, and community to build great companies. Its award-winning multiplatform content reaches more than 50 million people each month across a variety of channels including websites, newsletters, social media, podcasts, and print. Its prestigious Inc. 5000 list, produced every year since 1982, analyzes company data to recognize the fastest-growing privately held businesses in the United States. The global recognition that comes with inclusion in the 5000 gives the founders of the best businesses an opportunity to engage with an exclusive community of their peers, and the credibility that helps them drive sales and recruit talent. The associated Inc. 5000 Conference is part of a highly acclaimed portfolio of bespoke events produced by Inc. For more information, visit www.inc.com.

How Businesses Increase Cash Flow by Having A Proactive Tax Strategy

Regardless of how well your business is doing, the tax levied on your revenue probably feels like an extra expense, and it’s often treated this way. Properly managed, however, your tax responsibilities can be turned into an opportunity for growth and stability. Adjusting your attitude towards and treatment of your taxes and adopting a proactive tax strategy can actually increase cash flow for your business.

Instead of thinking about taxes at the end of the fiscal year, it’s in your company’s best interest to create a proactive tax strategy while there’s still plenty of time to implement it. In this article, we will outline the benefits of creating a proactive tax plan early that will improve your cash flow, build more resilience into your business model, and allow you to pay less tax at the end of the year.

What Is Cash Flow?

When you’re running a business, whether small or large, cash flow management is vital to your success. Your cash flow is how much money is available to your business at a given time and how it is best used to maintain operations.

The net income your business receives from sales or services, less expenses, is taxable. So, while you will most likely put that money back into operating your business, you must always put a percentage aside to pay an appropriate amount of tax. So what is an appropriate amount? That is where ongoing advisory can help.

A large tax bill at the end of the year has the potential to cripple your businesses cash flow if not managed properly. Applying forecasting strategies will ensure that you’ll have the funds you need when taxes are due.

Save for Future Costs

When your business is going strong and gushing cash, using that extra cash can be tempting to invest, increase salaries, and embrace growth strategies. You want to be visionary when deploying cash flow based on your business and personal financial goals.

Most businesses have a cyclical nature, which means they are more profitable at a certain time than others. This requires critical cash flow forecasting so not to overspend during strong cash months and not leave enough for lower cash-flow months (plus taxes owed).

If you want to strengthen your balance sheet and use cash-flow forecasting for planning growth and achieving financial goals, it’s advisable to regularly update your forecast in real-time. Additionally, you want to set aside savings in an account to pay your estimated taxes.

Understand Tax Obligations

It’s important to understand the taxes you need to pay before it comes time to pay them. The tax system in the USA regarding sales tax, for instance, permits each state to set its own rates for particular items. It is also regional, meaning that areas of a state have the autonomy to set their own rates, too. Self-employment tax, personal property tax, excise tax, franchise tax and more comprise the taxes you may be subject to paying.

To make matters more difficult, tax laws change from year to year. Research your state and region’s rules regarding tax payments and employ a Certified Public Accountant (CPA) if necessary; a CPA can ensure your books are correct, your tax is paid on time, and will save you money where legally possible.

Consulting with a CPA throughout the year will ensure that your strategic cash-flow forecast and tax strategy plan is on-target for year-end. As you make investments, face new challenges, and set new goals, your CPA will make sure that you aren’t missing out on possible deductions and other opportunities to deliver the most savings legally possible.

How Can A CPA Help?

You can get in touch with a Certified Public Accountant (CPA) for help with tax strategizing. Outsourcing these responsibilities can help alleviate inexperience in these subjects, allowing you to focus on things that make you great.

The right CPA can help create an ongoing cash-flow forecast and proactive tax strategy that helps you maximize savings and reach your financial goals.

Contact us at Insogna CPA for our team approach to helping manage your cash-flow forecast and ongoing tax planning strategies so you avoid paying the IRS more than you have to.

Want help managing your cash-flow forecast and ongoing tax planning? Contact Insogna CPA today to learn more about how our team approach can help your business achieve its financial goals.

A Guide to Sales Tax for Online Sellers

Sales tax is not a cut and dry subject; on the contrary, it has a lot of moving parts. When it comes to sales tax for online sellers, however, things can get even more complicated.

Different states require a different tax on different items, and policies are always changing and adapting. Furthermore, within a state, there may be regions where sales tax rules vary from one state to another. Not taking the time to understand this can have serious repercussions, and potentially unnecessary cash out of your pocket.

Know Your State’s Laws

One of the tricky things about sales tax is the fact that individual states are permitted to set their own—there is no such thing as a national sales tax. This means that states are allowed to select which items to tax and how much tax to charge.

Furthermore, many states allow local areas to set their sales tax independent of the state. While it’s impossible to list each of the sales tax jurisdictions differing sales tax regulations, the main takeaway is that it’s important to research your state and region’s sales tax rules as there may be a considerable variation that you aren’t already familiar with.

Know Your Company’s Obligations

Online Sellers and local retailers in the USA are only required to collect sales tax when they have ‘Nexus’ in that state. A Nexus means a significant presence and refers to factors such as a physical location, personnel, affiliates, or other business activities.

You also need to know what items are taxable and which ones aren’t. While most states tax items such as clothing, textbooks, and groceries, others do not. This means that online Sellers and local retailers in different states or in different state localities can have different combinations of sales tax requirements.

Understand Filing Frequency

After you determine whether or not you have Nexus in a state you will need to register for a sales tax permit. When you do this, your state will inform you of your filing frequency. This means the frequency for filing your tax returns.

Typically the filing frequency will be monthly, quarterly, semi-annually, or annually. The frequency will be determined by the size of your Nexus and state’s rules. The more tax revenue you generate in a state, the more frequently it will be collected, as a general rule. The money is used for local infrastructure, so states would prefer that it be active instead of sitting in an account.

Avoid Fines and Penalties

Due to the variation in state sales tax, it can be easy to make an honest mistake. The two most common mistakes businesses make are not collecting sales tax when they should be, and not paying these taxes ontime. Once you realize how complex the process is, it’s not surprising why these mistakes are made.

Sales tax is due in some states on the 20th of the month. In other states, it’s due on the 15th, or the 23rd. Depending on your state it’s easy to get the dates mixed up. It’s also easy to confuse the amount of sales tax to pay as an online seller.

Mistakes like these can result in penalties and extra interest. However, if something falls through the cracks it’s always worth discussing this with your state’s tax authority as some are willing to waive innocent mistakes.

Know the Standards and Guidelines

Sales tax policy is always changing, so you need to stay up-to-date. In some cases, the sales tax rate changes, at other times, it’s the filing frequency. Sometimes a state will start taxing an item it didn’t tax before or reduce the number of items taxed.

When it comes to online sales tax, the policy is even more varied. Current guidelines say that sales tax should be paid at the point of sale, which means the buyer/end user. At present, this is the case, but it is subject to change at any point.

Hire a CPA

Outsourcing these complex tasks to a Certified Public Accountant (CPAs), especially when utilizing technology to streamline the calculation of your sales tax and whether Nexus is applicable or not, will save you time and money so you can focus on growing your business.

A CPA has the professional experience needed to organize your sales tax and ensure you pay the right amount at the right times. With so many moving parts when it comes to selling online, it is worth investing a little in a CPA to ensure you’re compliant and avoid penalties. Having professional help will ensure you are collecting from your customer and remitting the correct sales tax to the State, and avoid this money coming out of your own pocket.

Sales tax got you scratching your head? Avoid paying sales taxes out of your own pocket. Contact Insogna CPA today for ongoing accounting advisory.

Tax Planning vs. Tax Preparation

If you run a small business or are self-employed and need to pay business taxes annually, you could be losing money due to inefficiencies in your tax planning process. Paying your tax bill all at once at the end of the fiscal year might seem like the most efficient thing to do, but it can result in poor cash flow and IRS penalties.

In this article, we look at the tax-efficient process of tax planning with a Certified Public Accountant (CPA) versus the more inefficient transactional tax preparation process. If you don’t know where to begin, then a CPA can help you get organized and ensure that you aren’t paying too much, or too little, in taxes.

What Is Tax Preparation?

Tax preparation is the once-a-year process of preparing the fiscal year’s tax return. It involves gathering all the documents and data you will need to file your taxes, and organizing this data in line with present IRS reporting. tax preparation is a transactional course of action that doesn’t allow for ongoing advice that can help lower taxes, especially when compared with the ongoing nature of tax planning.

Depending on what industry you’re in, or the level of experience you have, your tax preparation can take a while to arrange and complete. It’s recommended that you start tax preparation early, but tax preparation generally doesn’t give you the time you need to maximize your savings.

If you are unsure of the complexities preparing your taxes can bring, along with confusions of how to legally minimize your taxes as much as possible, the process can be frustrating and extremely time consuming.

What Is Tax Planning?

Find yourself filing taxes in the spring and hear ‘you should have contacted me last year to help save you money’? If this is you, a CPA can help!

When you own a pass-thru business, each year your tax due on your taxable business profits are due when filing your personal IRS1040 tax return. The amount of tax payable is determined by several factors, including how much revenue is earned less related expenses. Many companies wait until taxes are due and pay in a lump sum, but this is extremely tax-inefficient, and depending on how much is owed may result in additional IRS late-payment penalty.

Tax planning is the process of estimating your tax-due regularly throughout the year by understanding and keeping track of what you owe. This can include continual, ongoing advisory based on your income less expenses and making recommendations throughout the year that not only helps advise on taxes due for the year, and also deferral options to lowering your taxable income for the year before the year is over.

Consulting with your CPA on an ongoing basis throughout the current tax year is an excellent way to stay on top of things. Tax planning takes into account your cash flow needs and wealth goals, and it gives you time to uncover deductions in the current tax year. Efficient tax planning can improve your cash flow and save you money.

For example, if a company waits until the end of the year to prepare its taxes, it may have overspent through the tax year. Conversely, with ongoing tax planning, the company is able to manage its taxable income throughout the year, only pay the required taxes when necessary, and know what cash flow is available for wealth planning and deferring taxable income.

Why Is Tax Planning Beneficial?

Tax planning is all-around beneficial to a business. As mentioned above, ongoing planning will alleviate cash flow when taxes are due in April each year and increase tax-efficiency lowering your taxable income during the current tax year as much as legally possible.

Additionally, ongoing planning can reduce the amount of tax you pay, give you control over when and how you pay taxes, and prevent you from paying unnecessary tax. When implemented correctly, tax planning is the most reliable way to operate your business.

What Can A CPA Firm Do?

Certified Public Accountants (CPAs) are professionally licensed individuals dedicated to understanding all things tax, understanding the IRS Code, and working closely with businesses like yours helping with monthly accounting in order to provide ongoing tax planning strategy. Ongoing advisory throughout the tax year allows CPAs to advise you are only paying the right amount of tax due and helping save current taxes with tax deferral strategy planning.

CPAs are also trained in federal tax laws. They know the most up-to-date regulations and can advise you accordingly. This information can be extremely beneficial as the IRS often changes policy, and if you are not in the loop of changes this can result in missed deduction opportunities, or worse—penalties and fines.

A CPA firm can do the planning for you, alleviating pressure and allowing you to focus on your day-to-day operations. Paying taxes might feel like an enormous expense if you are shouldering your business’s tax planning, but outsourcing to CPA professionals can save you money and even help you grow your wealth.

Tax planning is an effective, essential way to maintain your company’s tax responsibilities. With planning, you create financial structure in your business and are continually looking for ways to save on taxes. With a qualified CPA team, tax planning can be a huge win for your business and your personal tax savings.

Are you ok paying more to the IRS this year? Tax planning strategy happens year-round with ongoing clients at Insogna CPA. Contact us today for ongoing tax strategy planning.