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Expert tax tips, accounting insights, and financial guidance from George Dimov, CPA — serving clients across all 50 states for over a decade.
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Small business bookkeeping refers to the process of recording, organizing, and managing a business’s financial transactions. It involves tracking income, expenses, assets, and liabilities to ensure accurate financial reporting. Proper bookkeeping helps businesses stay compliant with IRS regulations, manage cash flow, and prepare for tax filings. Learn more about bookkeeping guidelines on the IRS website.
The IRS Verify Identity process is a security measure used to confirm the identity of taxpayers when suspicious activity is detected. It ensures that the rightful person is filing the tax return and receiving any refunds. To verify your identity, the IRS may send a letter asking for confirmation through online, phone, or in-person methods. For more information, visit the IRS Identity Verification Page.
The Net Investment Income Tax (NIIT) is a 3.8% tax applied to individuals, estates, and trusts with income that exceeds specific thresholds. It applies to investment income like interest, dividends, capital gains, rental income, and certain passive activities. This tax is calculated on the lesser of your net investment income or the amount by which your modified adjusted gross income (MAGI) exceeds the IRS thresholds.
NYC Deferred Comp is a retirement savings program available to eligible New York City employees. It allows participants to defer a portion of their salary into tax-deferred accounts such as the 457(b) and 401(k) plans. Contributions lower current taxable income and grow tax-free until withdrawn during retirement. For 2024, the contribution limits have increased to $23,000, with an additional $7,500 allowed for employees aged 50 or older, based on IRS guidelines.
In 2025, Form 1040-X remains the primary tool for correcting errors on previously filed tax returns, with an updated processing time typically ranging from 8 to 12 weeks, though some cases may take up to 16 weeks. To claim a refund, you must generally file within three years of the original filing date or two years from the date tax was paid. You can now e-file amendments for the current and two prior tax years and request direct deposit for resulting refunds.
Corporation tax is a tax imposed on the profits of a corporation. In the U.S., corporations are required to pay taxes on their earnings at the federal, state, and sometimes local levels. C corporations are taxed directly at a flat rate of 21%, while S corporations are pass-through entities, meaning the income passes to the shareholders’ individual tax returns.
In 2025, capital gains are taxed at 0%, 15%, or 20% for assets held over a year, while short-term gains are taxed at ordinary rates up to 37%. The One Big Beautiful Bill Act (OBBBA) has increased the standard deduction to $15,750 (single) and $31,500 (joint), helping offset these costs.
The Home Office Deduction allows eligible taxpayers to deduct expenses related to the portion of their home used exclusively and regularly for business. It applies to both homeowners and renters. There are two methods to claim this deduction: the simplified method (up to $1,500) and the regular method, which involves itemizing actual expenses such as mortgage interest, utilities, and insurance.
In 2025, the One Big Beautiful Bill Act (OBBBA) has made the Qualified Business Income (QBI) deduction permanent, allowing eligible pass-through owners to deduct 20% of their business income if their taxable income is below $197,300 (single) or $394,600 (married), with a new guaranteed minimum deduction of $400 for those with at least $1,000 in QBI.
The first quarter’s payment, covering income earned from January 1 to March 31, is due by April 15, 2025. The second quarter’s payment, covering income from April 1 to May 31, is due by June 17, 2025. For the third quarter, covering June 1 to August 31, the payment must be made by September 16, 2025. Lastly, the fourth quarter’s payment, covering income from September 1 to December 31, is due by January 15, 2026.
In 2025, Easy Payroll Services provide full-scale automation for wage calculations, multi-state tax compliance, and direct deposits, significantly reducing administrative risks for small businesses. These platforms now feature AI-powered error detection and integrated Employee Self-Service (ESS) portals, allowing workers to access their 2025 W-2s and payslips instantly via mobile apps.
In 2025, backup withholding remains a federal safeguard where payers deduct 24% from certain payments—like dividends, interest, and contractor fees—if a taxpayer fails to provide a correct Tax Identification Number (TIN) or underreports income. While the One Big Beautiful Bill Act (OBBBA) introduced sweeping changes, the IRS confirmed that withholding procedures for 2025 remain unchanged to ensure stability.
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