News & Resources

Named Top Workplace in Minnesota

Smith Schafer, a Minnesota-based public accounting and business consulting firm, has been named one of the Top Workplaces in Minnesota for the second year in a row. Top Workplaces recognizes the most progressive companies based on employee opinions measuring engagement, organizational health and satisfaction. Over 2,000 companies were invited to participate. 

Reclassifying Business Expenses as Constructive Dividends

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that is helpful and appropriate for your business.

The IRS sometimes challenges deductions claimed for certain types of business expenses. In doing so, an examiner might claim payments made by a corporation to a shareholder for personal items or that are above or below fair market value constitute "constructive dividends." Reclassifying business expenses as dividends has adverse tax consequences, as a recent case demonstrates.

Green Tax Breaks: Are You Claiming All the Credits You Deserve?

In recent years, the IRS has offered "green" tax credits to individuals who purchase qualifying residential energy-efficient equipment and certain electric vehicles. Some of these breaks expired at the end of 2016. But others are still ripe for the taking in 2017 and beyond. Here is what you need to know to take advantage.

Tax Considerations Before Tying the Knot

Summer — the traditional wedding season — is just around the corner. Marriage changes life in many ways. Here is how it may affect your tax situation.

Marital Status

Your marital status at year end determines your tax filing options for the entire year. If you are married on December 31, you will have two federal income tax filing choices for 2017:

• File jointly with your spouse, or
• Opt for "married filing separate" status and then file separate returns based on your income and your deductions and credits.

Here are two reasons most married couples file jointly:

10 Simple Ways to Cut Taxes This Summer

It is already starting to feel like summer in many parts of the country. But the forecast for Washington remains unclear as officials continue to discuss various tax-related issues. No matter what happens in Washington, do not get stuck in a holding pattern yourself. Give some attention to business and personal tax planning this summer.

Here are 10 ideas that combine tax planning with summertime fun.

Thank You 2017 Interns!

Each year we hire interns to assist us during busy season. They work alongside professionals at all levels and explore what works best for them. We would like to take this opportunity to thank them for all their hard work this past busy season!

We did a Q&A with our 2017 interns about their experience with us and what they learned along the way. Here is what they had to say...

"Great culture, wonderful employees and a very welcoming atmosphere."

“As an intern the “feel” that I felt the most, and really appreciated about the organization, was I felt what I was doing mattered, not only in my own perception of the work, but also from the feedback I received about the work I was doing.”

Six Financial Survival Tips for Recent College Graduates

Graduation can be one of the most exciting — and intimidating — times in your life. You are officially an adult, and with that new-found independence comes financial responsibilities. No pressure, but the decisions you make today about spending and saving can mean the difference between struggling for the rest of your life and building a solid financial future.

Here's a list of important questions to consider as you start your journey:

Establishing Residency for State Tax Purposes

Have you been contemplating moving to another state with lower taxes? Your move could lower your state tax bill, but you want to make sure to establish that the new state is your place of legal residency (also known as your "domicile") for state tax purposes. Otherwise, the old state could come after you for taxes after you have moved. In the worst-case scenario, your new state could expect to get paid, too. Here is what you need to do to establish residency in the new state — and why moving your pet could be a deciding factor.

Tax Day is Here!

It's Tax Day! Today we are celebrating all those who filed with us this season. We would like to take this opportunity to say THANK YOU for choosing Smith Schafer for your accounting and tax needs. We are truly grateful for your business.

Tax Day also means specials, freebies, and deals. Click here to learn more.

Also, THANK YOU to our great employees, whose dedication and hard work have brought us through another successful season!

Spring Cleaning: When Can You Purge Your Old Financial Records?

Feeling the urge to purge? Tomorrow, April 18, is the deadline for individuals and C corporations to file their federal income tax returns for 2016 (or to file for an extension). Before you clear your filing cabinets of old financial records, it is important to make sure you won't be caught empty-handed if an IRS auditor contacts you.

For Individuals

In general, you must keep records supporting items shown on your individual tax return until the statute of limitations runs out — generally, three years from the due date of the return or the date you filed, whichever is later. That means that now you can generally throw out records for the 2013 tax year, for which you filed a return in 2014.