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If you’re a small business owner, time is running out to take advantage of some income tax reduction strategies before the end of the year.  As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year.  Factors that compound the planning challenge this year include overall economic uncertainty and Congress’s customary failure to act on important tax breaks that will expire at the end of 2016. 

Many business owners, non-profit entities or those who use independent contractors, are still unclear as to how to properly classify workers, especially in the eyes of the IRS. While it is understandable to be naïve to the nuances of business law, it will not prevent a business owner from incurring penalties for worker misclassification. Penalties, along with interest, can be steep as they include unpaid payroll and unemployment taxes, overtime, minimum wages, employee expenses and other employee payments. 

You decided to not only play Powerball, but also are sure you will win Powerball. With the purse hovering and climbing at 800M, it is easy to understand why lottery fever has captured the attention and — dollar bills, of countless people across the country. 

Whether you are among the lucky folk whose net worth increases January, 9, 2016 at 11pm, or as the odds predict, simply a few dollars lighter when you wake up on Sunday, there are some aspects you must consider from gambling winnings and losses. Mainly, understanding the tax rules for reporting your gambling activity on your tax return.

Gambling is a 240 billion dollar generator to the U.S. economy and some of us at one time or another have likely been part of the mix.  If you’re fortunate enough to win a qualified prize from the Powerball lottery, a contest, jackpot, or a similar game that gives you the option of receiving multiyear payments, you may not have to pay tax on the future years’ payments until they’re received.  This is an exception to the general rule that could otherwise require the entire prize to be taxed in the year of the win.