Are you ready to take your business to the next level? When you change the way your customer views your value, your business thrives. This means more consistent streams of revenue, higher revenue, and increased customer respect. How do you accomplish this? Let your client see you as transformative rather than simply trusted. If you provide any type of service for your customer, you want them to see you as competent, attentive, and punctual. But what if they saw you as transformational, as someone they couldn’t carry on without? When you do this, you solidify a partnership and make your business invaluable to your client. At Ingram, Wallis, & Co., we aim to help you be as successful and profitable as possible, so we put together a list of four things you can apply today to go from being trusted to being transformative.

Are you ready to take your business to the next level? When you change the way your customer views your value, your business thrives. This means more consistent streams of revenue, higher revenue, and increased customer respect. How do you accomplish this? Let your client see you as transformative rather than simply trusted. If you provide any type of service for your customer, you want them to see you as competent, attentive, and punctual. But what if they saw you as transformational, as someone they couldn’t carry on without? When you do this, you solidify a partnership and make your business invaluable to your client. At Ingram, Wallis, & Co., we aim to help you be as successful and profitable as possible, so we put together a list of four things you can apply today to go from being trusted to being transformative.

1. Narrow Your Focus

Determine the sweet spot where your passion meets your expertise. Once you’ve established your niche, begin seeking and serving clients within that niche only. It may sound counterintuitive, but you will find a more committed, consistent customer when you narrow your focus, rather than trying to meet the needs of every potential customer. Think of your ideal customer like a target. When you know exactly where you’re aiming, you have a much better chance of hitting the target. When you have no target, there’s no way you’ll hit it. Know who your business is aiming to reach and you’ll find that your ideal customer is looking for your business, too.

2. Know Your Value

As a society, we associate price with value. You probably do this subconsciously, but this is why you’re willing to pay for an expensive meal at a 5-star restaurant. You know the quality of both food and service is worth every penny, but you would never pay that amount of money for a fast-food burger and fries. When it comes to your business, you need to know your value. What is your service worth? When you charge more money for a product or service, you’re telling your customer that what you have to offer has a high value and will be worth every penny. We recommend that you consider the value of your service when you set your prices, rather than simply charging by the hour. If your product or service will transform your client's life, then your price needs to reflect that.

3. Manage Change Effectively

As you narrow your focus on your ideal client and determine your company’s value, you may need to make changes to your business strategy. You can follow a start-stop-continue plan of action to make sure you hit your target customer and transform your business. You may need to start something new that will impact your client and your revenue. When you start something new, for it to succeed, you’ll need to stop doing something that isn’t working. “Because this is how we’ve always done it” is a terrible reason to keep putting time and resources towards a project or idea that has little benefit to you or your client. Then, you need to establish day-to-day activities that are crucial to keep your business functioning and continue doing those things. When your business is focused on completing “business as usual” tasks and

creating and implementing new ideas that will generate excitement, customer loyalty, and profits, you’ll see your business thrive.

4. Cultivate Client Love

Your job is to offer more than just customer service, but customer love. You want to establish a relationship between you and your client, a relationship where they feel important and feel that they need you. This is achievable when you create an atmosphere of love for your customer—you look out for them, take the initiative to meet their needs, and treat them like they mean more to you than a transaction. Once they see that you provide a service or product that specifically meets their needs, make your value known, and care for them individually, you’ve cultivated client love. You go from being a trusted business to a transformative business—a business your customer can’t live without.

If you’re ready to apply these four steps to transform your business, but want to consult with an advisor first, contact us at Ingram, Wallis, & Co. We can help you determine the most profitable adjustments your company needs to make and help you successfully prepare to transform your business.

When it comes to business expenditures, every dollar counts. So does every deduction. If you’re not careful, you may be ignoring easy tax-deductions that can have a big impact on your finances. At Ingram, Wallis, & Co., we don’t want you to miss a single dollar in your tax return. Pay attention to the four expenses listed below and consider using them as a key business strategy.

When it comes to business expenditures, every dollar counts. So does every deduction. If you’re not careful, you may be ignoring easy tax-deductions that can have a big impact on your finances. At Ingram, Wallis, & Co., we don’t want you to miss a single dollar in your tax return. Pay attention to the four expenses listed below and consider using them as a key business strategy.

1. Electronic Devices

Any of your electronic devices or supplies used for your business can be included in your tax write-off. This includes computers, laptops, smartphones, cameras, iPads, speakers, video cameras, and drones. Anything that you use for 100% business use, is 100% deductible. But you may need to evaluate how much you use your electronic devices for personal reasons. It may be better to claim 80% or 50% if you use the same device for both personal and business use.

2. Internet and Phone Service

Because WiFi, phone, and internet services are crucial to the productivity of your business, you can write off the cost of these services. This is true whether you work from home or work in a traditional office space. If you have a dedicated phone line for your home, then you can write off 100% of your mobile phone service. If you work from home and share your internet or WiFi with your family, you won’t be able to deduct 100% of the cost, but any amount is better than nothing. 

3. Travel Expenses

You can deduct 100% of your travel expenses if your travel is business-related. This includes airfare, hotel, car rental, taxis, and valet parking. You can also write-off home rental expenses through services such as VRBO and Airbnb or rideshare trips through services like Uber or Lyft. Unsure if your travel can be counted as business-related? Consider meeting with a client or vendor while you’re on the road. Find a conference or training event nearby that can provide networking opportunities or professional growth. Hold an annual board of directors, shareholders, or member meeting to make the trip tax-deductible.

When claiming a tax write-off for travel expenses, you need to be cautious about how much you attempt to deduct. We recommend only writing off expenses for travel days and days you do a minimum of four hours of actual work.

4. Entertainment and Meals

Business is often conducted over meals, which is why this is an important line item on your tax return. However, dining deductions are currently limited to 50%. Dining experiences that are tax-deductible include meals with a client, potential client, vendor, or partner, and meals that you consume alone while traveling on a business trip, and food provided in the office for employees. Food provided at a presentation or event for customers is 100% deductible. It is important to track this separately so that you can receive the full deduction. 100% deductions are also available for special employee events like a company holiday party, training activity, or reward. 

Currently, entertainment with employees, board members, employees, vendors, or clients is non-deductible, but that is subject to change with the new tax code coming in 2023.

It’s important to keep receipts or copies of receipts for every expense that falls within the discussed categories to get the most out of your tax return. As long as you keep good records, our skilled CPAs at Ingram, Wallis, and Co. can help you find the most deductions and save an incredible amount of money. Ready to trust us with your business? Contact us today.

You’ve worked hard for your wealth, so why leave it up for grabs when creditors and lawsuits start lurking? Don’t you want to see your assets passed down to your children or set aside for your family to enjoy? We want that for you, too! It’s time to take a defensive stand and set up a hedge of protection around you. Scott Schomer, an Estate Planning Attorney makes this statement: “The general rule is – you need to start planning before your creditor’s start making claims against you.” Our team at Ingram, Wallis, & Co. wants to educate you on potential lawsuits you may face and how you can protect what’s yours. 

You’ve worked hard for your wealth, so why leave it up for grabs when creditors and lawsuits start lurking? Don’t you want to see your assets passed down to your children or set aside for your family to enjoy? We want that for you, too! It’s time to take a defensive stand and set up a hedge of protection around you. Scott Schomer, an Estate Planning Attorney makes this statement: “The general rule is – you need to start planning before your creditor’s start making claims against you.” Our team at Ingram, Wallis, & Co. wants to educate you on potential lawsuits you may face and how you can protect what’s yours. 

9 Professional Liabilities

Don’t get too comfortable believing that nothing can threaten your hard-earned wealth. The deeper your pockets, the bigger the target on your back. Beware of these nine professional liability problems you may have to face.

• Trademark Infringement Laws

Original trademark owners could sue you for using their songs, displaying their characters, or copying their name if you’re not careful. Don’t assume no one will find out or that it’s not a big deal. It is.

• Sexual Harassment Accusations

When it comes to sexual harassment, you’re just one accusation away from a lawsuit. Be smart and be above board with every employee to keep your name clear.

• Employment Discrimination

This includes the hiring and firing process. And unfortunately, you can face a lawsuit even if it’s not justified. Make sure managers know exactly what they can and cannot say before they put your company at risk.          

• Faulty Products

You may be liable for damages if someone gets injured by using one of your products.

• Malpractice Claims

Malpractice claims don’t solely affect doctors and lawyers. A financial advisor could be held personally liable if he or she is accused of selling an unsuitable investment.

• Breach of Contract Claims

You could be held responsible for someone else’s financial loss if you fail to uphold your end of a contract. Be sure to carry out every term on the agreement to avoid this potential lawsuit.

• Work-Related Vehicle Accidents

If a driver from your catering company hits a pedestrian while out on a delivery, you can be held responsible for all damages, even though you are not technically at fault.

• Workers Compensation

If one of your employees gets hurt on the job, you will be the one responsible for covering all treatment and rehabilitation. Many workers compensation insurance laws will require you to have insurance for both your employees and your business.

• “Slip-and-Fall” Accidents

            If a client or customer injures themselves by slipping and falling on your property, their attorney will surely come after you as the responsible party.

9 Personal Liabilities

Maybe everything about your business is above board. There are still other ways you could face a lawsuit. The following nine possibilities are considered personal liabilities.

• Divorce

Because your former spouse most likely knows the ins and outs of your finances, divorce often leads to a messy problem for your bank account and your business. Consider a prenuptial agreement to make sure the business can thrive if you and your spouse should ever divorce.

• Auto Accidents

You could be held liable even if you weren’t the one behind the wheel. Double-check your coverage for you and your family to make sure it’s sufficient.

• Social Host Liability

If you host a party and serve alcohol to your guests, you could be held responsible for any accident or injury caused by one of your guests after they leave the party. This also applies to teenagers, should one of your children host a party while you’re out of town.

• Vicarious Liability

You could face a lawsuit if your business partner or employee gets in a car accident.

• Employee Actions

Your company could be sued if your employee causes damage. Even more, you could personally be held liable if your assets are not protected from business debts.

• Debt

If you lose your job and acquire too much debt, it may result in bankruptcy.

• Medical Issues

If serious medical problems leave you unable to work and therefore, unable to pay your bills, you are still liable. Even good insurance coverage may not be enough for various expenses which can also result in bankruptcy.

• A Callable Loan

Sometimes, lenders will “call” the loan, forcing you to pay the debt immediately. If you are unable to refinance the debt, you’ll be expected to sell the asset to repay the lender. Failure to do so could lead to bankruptcy.

• Foreclosure

The bank can seize your property in foreclosure if you fail to make your mortgage payments. While there are certain restrictions on your residence, no restrictions are applied to commercial loans. If you’re not careful, a commercial foreclosure could leave your other assets at risk.

6 Ways to Protect Your Assets

Rather than allowing this information to make you anxious, let it motivate you to take the proper steps in protecting your assets. There are many potential threats which is why it’s crucial to put defensive measures in place. Here are six ways you can make it difficult for creditors to seize your assets.

• Use Business Entities

As an entrepreneur, it’s vital to separate your assets from business assets. Failure to take legal steps to create a business entity like a corporation, limited liability company (LLC), or limited partnership could cost you everything in a business dispute.

• Own Insurance

Insurance is necessary for all business owners, especially those who are in a field that is threatened by malpractice lawsuits. Regardless of your type of business, be sure to have adequate homeowner’s insurance, commercial liability insurance, worker’s compensation insurance, auto insurance, umbrella coverage, and long-term care insurance.

• Use Retirement Accounts

Utilize the protection under retirement accounts like IRAs and ERISA-qualified plans. Know the Texas state laws regarding retirement protection and consider moving excess money into retirement accounts to best protect long-term savings.

• Homestead Exemptions

In Texas, state law protects an unlimited amount of home equity. This means that courts cannot award your home equity to creditors if you are forced to declare bankruptcy.

• Annuities and Life Insurance

You may benefit from state legislation that protects annuity balances and assets in cash value life insurance policies. Because each state varies in its protection, it’s important to speak with a licensed attorney in Texas.

• Get Rid of It

Creditors cannot take what you do not own. So you may consider transferring your ownership of assets to irrevocable trusts. You can also give assets away directly to family members through a strategic gifting program that excludes you from paying a gift tax. Or, consider an “advance on your will” and transfer assets to your children early.

Do not wait until there is a lawsuit breathing down your neck to make a move. Protect your assets today. If you need a trusted financial advisor in the Bryan-College Station area, contact us at Ingram, Wallis & Co. Let our team of accounts and advisors help you make the smartest financial decision that will protect you and your business for years to come.

Your company may be clear on your budget cycle, but do you have a clear understanding of the accounting cycle? The budget cycle helps you plan for the future and gauge your operating performance. It is generally used internally. However, the accounting cycle manages information for external use and therefore, plays a significant role in the financial health of your business. At Ingram, Wallis, & Co. we are dedicated to helping you report every financial transaction correctly. If you’re hesitant about whether or not you’re utilizing the accounting cycle effectively, let us answer your questions and put you at ease today.

Your company may be clear on your budget cycle, but do you have a clear understanding of the accounting cycle? The budget cycle helps you plan for the future and gauge your operating performance. It is generally used internally. However, the accounting cycle manages information for external use and therefore, plays a significant role in the financial health of your business. At Ingram, Wallis, & Co. we are dedicated to helping you report every financial transaction correctly. If you’re hesitant about whether or not you’re utilizing the accounting cycle effectively, let us answer your questions and put you at ease today.

What Is the Accounting Cycle?

The accounting cycle identifies, analyzes, and records the accounting history of your company. Each transaction signifies the start of the accounting cycle and, after multiple steps, the cycle concludes when that transaction is listed on the correct financial statements. Accounting records such as the general ledger and trial balance are also included in the accounting cycle.

What Are the Steps of the Accounting Cycle?

There are typically eight steps in the accounting cycle:

1. Identify Transactions: Any transaction that involves the use of, or the exchange of, your company’s assets must be noted. Receipts and invoices can help identify such transactions, so it’s important to keep financial documents until you are certain you no longer need them.
2. Record Transactions: Utilize the appropriate journal to make entries of each transaction. List every financial transaction in chronological order. It’s best to keep your journal current by noting transactions as they happen.
3. Posting: Once it’s recorded in the appropriate journal, each transaction must be posted to the correct account in the general ledger. Known as the book of final entry, the general ledger keeps track of all changes made to every account in your books.
4. Unadjusted trial balance: A trial balance lets your company know if your books are in balance. In the middle of your accounting cycle, we recommend using an unadjusted trial balance to determine whether or not your debits and credits match. Find the balance of every account.
5. Worksheet: The fifth step allows you to adjust entries in order to balance the book. When you create a worksheet, you add all debt balances and all credit balances and determine if the two totals are equal. If they are not, then a specific entry may need to be adjusted, or there may be an error in your books. 
6. Adjusting Journal Entries: The adjusting entries that were tracked in your company’s worksheet, are then posted to the right accounts. This step allows you to ensure your debits and credits are equal.
7. Financial Statements: Generate your financial statements after you make all adjusting entries.
8. Closing the Books: The final step in the accounting cycle is to close your books. Then, you can begin the cycle again with a zero balance. At this point, you can determine which transactions or processes are propelling your company forward. We recommend filing all paperwork from the accounting cycle and shredding old documents if they are no longer needed.

What is the Timing of an Accounting Cycle?

The accounting cycle must begin and end within the given accounting period. This period depends on various factors and can vary, although, the most common accounting period is an annual period. Within the year, all transactions must be recorded and financial statements must be prepared by a certain date.

How Can Ingram, Wallis, & Co. Help?

Ingram Wallis has helped thousands of local business owners and entrepreneurs in the Bryan/College Station area over the last 40 years. Our certified CPAs are skilled at helping you establish an accounting cycle for your business or help you with the day-to-day details of bookkeeping so that you can focus on managing your company. Set an appointment with someone on our team today by calling 979-776-2600. We’ll help your business thrive by taking care of your accounting needs.

Have you recently inherited a large sum of money? This is known as a windfall, and while it can be a huge blessing, it can also be a curse if you don’t know what to do with it. In fact, intergenerational wealth transfers fail by the time it reaches the second generation because the recipient is clueless. Clueless about how to effectively manage the windfall and how to educate other families on handling the money expertly. At Ingram, Wallis, & Co., we want to help you establish a plan that protects the windfall and successfully grows your wealth for generations to come. We’re here to guide you through this transition so that it can actually be a blessing for you and your family.

Have you recently inherited a large sum of money? This is known as a windfall, and while it can be a huge blessing, it can also be a curse if you don’t know what to do with it. In fact, intergenerational wealth transfers fail by the time it reaches the second generation because the recipient is clueless. Clueless about how to effectively manage the windfall and how to educate other families on handling the money expertly. At Ingram, Wallis, & Co., we want to help you establish a plan that protects the windfall and successfully grows your wealth for generations to come. We’re here to guide you through this transition so that it can actually be a blessing for you and your family.

Step 1: Hire A Financial Advisor

Once you receive a windfall, you should immediately hire a financial advisor who will assemble a team that helps you effectively manage your inheritance. Your team will include tax, legal, risk management, and investment professionals to ensure the money is not squandered.

Step 2: Create A Plan

This may be a slow process and that’s okay. You have probably never had to manage this amount of money before, so it’s natural to take your time as you create a plan that will protect your newfound wealth. Working alongside a team will give you the education and confidence you need to ensure the money lasts for future generations. If you make choices too quickly or without a full understanding of the repercussions, you risk losing your inheritance. But, with the help of a trusted advisory team, you can make sure that you are receiving, protecting, and spending your money in a way that sets you up for success.

Step 3: Bring In The Next Generation

To make sure your family’s wealth is successfully passed down to future generations, it’s crucial that you educate the next generation. When they have a full understanding of your family’s wealth and understand the plan for managing the money, you solidify your future success. Many people choose to shelter their children, but this does the family an injustice. We encourage you to teach the generation below you how to work with the advisory team and give them a clear view of your family’s financial plan.

Receiving, and handling, a windfall can be daunting at first. But when you utilize the expertise of financial advisors, you will set yourself and your family up for generations of prosperity. Let us help you reach, and maintain, your financial goals. Our advisors at Ingram, Wallis, & Co. are committed to teaching you how to successfully manage a windfall so that you can successfully protect and enjoy your family’s wealth. Call our office today at 979-776-2600 to set up an appointment with a financial advisor

There are four basic financial statements that are necessary, three that are most valuable, to effectively convey the health of your business. These financial statements are records that show the activity and financial performance of your business. Each of these statements can be used by investors, financial analysts, and creditors to analyze your company’s performance, make predictions about future stock prices, determine your earnings potential. Maintaining accurate financial statements is key in the event that you are audited. At Ingram, Wallis & Company, we want to help our clients understand the purpose behind each financial statement and how to utilize them properly. We care about the overall health of your business, and we understand that a thriving business is best articulated through the correct use of each financial statement.

There are four basic financial statements that are necessary, three that are most valuable, to effectively convey the health of your business. These financial statements are records that show the activity and financial performance of your business. Each of these statements can be used by investors, financial analysts, and creditors to analyze your company’s performance, make predictions about future stock prices, determine your earnings potential. Maintaining accurate financial statements is key in the event that you are audited. At Ingram, Wallis & Company, we want to help our clients understand the purpose behind each financial statement and how to utilize them properly. We care about the overall health of your business, and we understand that a thriving business is best articulated through the correct use of each financial statement.

1. Income Statement

This is perhaps the most valuable of the four financial statements because it displays the operating results of the entire company. The Income Statement includes revenues, expenses, profits/losses that were generated during a specific period. Quarterly statements are analyzed as well as an annual statement that is created at the end of the fiscal year. Expenses are subtracted from the revenue which identifies the company’s overall profit—net income.

2. Balance Sheet

The Balance Sheet is the second most important financial statement because it supplies pertinent information about the liquidity and capitalization of the company. At the close of the fiscal year. The balance shot will give an overview of assets, liabilities, and stockholders’ equity. The formula for the Balance Sheet (also known as the accounting equation) is Assets=(Liabilities+Owner’s Equity)Assets=(Liabilities+Owner’s Equity).

Your balance sheet will provide the total assets for the given period. On a separate listing, you’ll find the total of all liabilities. When you locate the shareholders’ equity, you’ll add the number of total liabilities. Your assets total should equal the total of liabilities as well as the total equity within that time period. Assets on the balance sheet will be listed in order of liquidity, and liabilities in order of expected payment.

3. Cash Flow Statement

This statement will be most necessary when issuing financial statements to an outside party. However, it can be a helpful comparison to your income statement and balance sheet. The Cash Flow Statement reports the cash inflows and

outflows during the reporting period. It tells you—and investors—how effectively a company generates cash to pay its debts (financing activities), fund operating expenses (operating activities), and fund investments (investing activities). This statement provides information about your company’s overall operations, identifies where the money is coming from, and how that money is being spent. Investors can easily determine whether or not a company has solid financial footing from the Cash Flow Statement.

4. Statement of Retained Earnings

This statement identifies changes in equity during the reporting period. This statement is not generally used but is necessary in the event of an audit. While there is not a standard reporting format for the Statement of Retained Earnings, it can include the sale or repurchase of shares and dividend payments. It may also report any changes that are caused by profits or losses.

Our team of talented CPAs at Ingram, Wallis, & Company are not only skilled accountants, but promise to offer every client honesty, accuracy, impartiality, and confidence. We will assist you in preparing your financial statements to ensure every line is in accordance with professional standards. We will set you up accurate reporting without expressing any opinion. If you need our help so that you can run your business successfully and efficiently, call us today at 979-776-2600.

Financial success, freedom to set your own schedule, and more time for the things that are truly important are three reasons you may have started your own business. You’re not alone if you find yourself frustrated that none of these goals are actually true. Instead, you increased your workload, have an overstuffed schedule, and see very little profit. The long weekends to take family vacations, the steady cash flow, and a growing staff? You feel as though it was all a mirage.

Financial success, freedom to set your own schedule, and more time for the things that are truly important are three reasons you may have started your own business. You’re not alone if you find yourself frustrated that none of these goals are actually true. Instead, you increased your workload, have an overstuffed schedule, and see very little profit. The long weekends to take family vacations, the steady cash flow, and a growing staff? You feel as though it was all a mirage.

Why Is There No Freedom in My Business?

This common trap most small business owners fall into is affectionately called “the small busyness trap.” When you first launched your business, your business model and long-term plans were to grow— to get clients and keep them. So, you most likely initiated and managed all client relationships. Now, whether it’s been months or years, you are still the sole person in total control of every aspect of your business. In order to experience the financial and scheduling freedom you dream about, you have to realize it’s not your job to take care of your business. It is your job to create a team and establish a system that effectively manages clients. The team should take care of the business and your business should take care of you. When you neglect to create a system, you fail to have the freedom that led you to start your business in the first place.

How Can Establish a System?

In order to create a business model that supports the lifestyle and income you desire, you’ll have to answer these two questions: Why did you start this business? What will you do to reach your goals?

Once you are confident about your purpose and intent, you need to determine how you will receive your income. Income can be divided into these three categories:

Active, Non-Recurring Income

This is an infrequent or unique form of revenue that is likely to happen again within the normal course of business. But it is not necessarily consistent. Depending on the type of work you provide for your clients, this type of income is similar to a one-time sale. It may be centered around solving a problem, troubleshooting, or taking on a specific task. Despite the fact that it’s non-recurring, these services have a high potential for commoditization and are beneficial to your business plan.

Active, Recurring Income

As the name infers, this type of income is repetitive but it is dependent on the physical work of an employee. You will receive payment for the same work completed on a monthly or yearly basis. For example, if you establish an advertising or consulting contract with your client, you will see a steady stream of income. If your clients have a product subscription with your business, you will continuously supply their order and they will submit payment. Recurring services are desirable for your client and ensure cash flow for your business. Just remember that efficiency and certainty are crucial if you want your client to stick around.

Passive, Recurring Income

A steady stream of revenue that requires minimal effort and little to no daily upkeep is passive, recurring income. In many cases, you may need to partner with a software vendor in order to generate a continuous income. This idea stems from the subscription model, where customers pay an ongoing fee to access your product. For you, all of the work is completed on the front end. You create a desirable solution for your client one time and package it in a way that your client receives the entire solution over the course of time. They pay a monthly fee, but the (hard) work is finished. Your product could include a webinar series or access to an online resource library your team created. This takes a little creativity, but the payoff is worth the effort.

The most successful business plan includes a mix of active and passive recurring income. This will add more margin to your schedule and increase your cash flow. It’s best to look at your business model, assess the types of products and services you offer, and make sure the entirety of your income is not dependent on active, non-recurring revenue.

If you want assistance in establishing a successful business model, are ready to entrust someone else to take care of the bookkeeping, or need help developing a payroll system, it’s time to contact Ingram-Wallis & Co. Our trusted team of accountants is dedicated to helping your small business thrive. We offer countless services to our clients so that they can do what they love. Call us today at 979-776-2600.

Most people underutilize the knowledge and expertise of an accountant. They recognize the need for a professional to file their taxes but don’t rely on an accountant throughout the rest of the year. If you want your business to succeed financially, hiring an accountant is the best decision you will make. This frees you up to do what you’re best at—running your business. By allowing an accountant to manage your finances, you will be set up for a prosperous future. Nearly 80% of small businesses fail within the first 18 months as a result of poor financial planning. But this doesn’t have to be true for you. At Ingram Wallis, we want to see your business flourish and remain in a healthy financial state. Our goal is to guide you and help you make the right financial decisions for your business so that you don’t become a statistic. We’ll show you five reasons why hiring an accountant is beneficial to the financial success of your business.

Most people underutilize the knowledge and expertise of an accountant. They recognize the need for a professional to file their taxes but don’t rely on an accountant throughout the rest of the year. If you want your business to succeed financially, hiring an accountant is the best decision you will make. This frees you up to do what you’re best at—running your business. By allowing an accountant to manage your finances, you will be set up for a prosperous future. Nearly 80% of small businesses fail within the first 18 months as a result of poor financial planning. But this doesn’t have to be true for you. At Ingram Wallis, we want to see your business flourish and remain in a healthy financial state. Our goal is to guide you and help you make the right financial decisions for your business so that you don’t become a statistic. We’ll show you five reasons why hiring an accountant is beneficial to the financial success of your business.

 1. Claim Every Possible Deduction

Many business owners don’t consider tax deductions until it’s time to file at the end of the year. But by then, it’s too late. Your accountant is aware of every possible deduction. They can give you advice on decisions to make throughout the year that will maximize your year-end deductions. While you may forget to track things like out-of-pocket expenses, home office space, and depreciation, your accountant won’t let you leave money on the table.

 2. Avoid An Audit

Businesses can be audited for a variety of reasons: multiple mistakes on tax forms, excessive write-offs, or charitable claims that are too high. An accountant will eliminate errors and red flags from appearing on your tax forms. An accountant is unable to fix problems once they’ve occurred, so having an accountant on your team before an audit is more beneficial than waiting until you’re under the scrutiny of the IRS.

 3. Maximize Your Time and Energy

Your time is your most valuable resource and your energy is limited. So instead of exerting your energy and using your time to keep track of financial details, focus your time on energy on running your business. Leave the rest to your accountant. The cost of an accountant is worth every dollar you’ll save by reporting your taxes correctly, avoiding poor financial decisions, and using your extra time to make another sale.

 4. Access To A Financial Advisor

Your accountant is invested in the success of your business. Consider your accountant as a business partner with whom you can collaborate on financial decisions. Your accountant can

serve as your financial advisor who helps you with budgeting, monitoring cash flow, and understanding the implications of making large purchases or expanding your business. When you share your vision and financial goals with your accountant, they can keep you on track and help you reach your goals.

5. Be Confident In Your Future

As you focus on the day-to-day operations, your accountant is able to see the big picture and support the long-term vision for your business. Your accountant can help you understand when it’s time to order new inventory or budget for investment items that will not only keep your business healthy but also thriving. As your business partner and financial advisor, your accountant will give you advice on how to plan for the future so that you’re set up for success years down the road.

Thousands of business owners and individuals in Bryan-College Station have trusted Ingram, Wallis & Co to help manage their accounting needs over the last 40 years. We have many accounting services that give us the opportunity to partner with you so your business can be successful for years to come. To schedule a meeting with one of our accountants, call 979-776-2600 today.

Once you file your tax return, you probably don’t want to hear from the IRS—unless they’re sending you a refund. You certainly don’t want to receive a notice saying there was a red flag on your tax return. These notices can often be confusing and cause unnecessary stress on your part. The best thing you can do is take extra care when you’re filing to avoid any mistake that may raise a red flag. If you follow these five steps, you’ll have nothing to worry about.

Once you file your tax return, you probably don’t want to hear from the IRS—unless they’re sending you a refund. You certainly don’t want to receive a notice saying there was a red flag on your tax return. These notices can often be confusing and cause unnecessary stress on your part. The best thing you can do is take extra care when you’re filing to avoid any mistake that may raise a red flag. If you follow these five steps, you’ll have nothing to worry about.

Record amounts on the correct line

If you report the full amount of your income but report it incorrectly, you’re sure to receive a notice from the IRS. This is especially common for taxpayers who report non-employee compensation from a 1099-MISC as “Other Income.” Instead, it must be reported on the Schedule C, Profit and Loss from a Business. When filing your tax return, it is imperative that income amounts are recorded in the category that directly matches the line item on your return.

Do not group income amounts

When processing tax returns, the IRS systems are looking for an exact match between your return and the information they already have. Therefore, you cannot combine income amounts in an attempt to simplify your return. If you worked multiple jobs, be sure to enter each W-2 separately. If you have several stock trades on Form 1099-B, you will need to report each trade separately. You can do this by including every trade on Form 8949, or you can combine trades within the short-term or long-term category on your Schedule D. You’ll also want to attach a spreadsheet showing each trade as reflected on your Schedule D.

Include delayed or corrected payer documents

If you have a corrected W-2 or 1099, you need to note this on your return. If the corrected statement isn’t sent to you prior to filing your tax return, you will need to correct your tax return and attach the corrected statement. If you are waiting to receive a delayed or corrected information statement, file an extension and pay the tax you estimate you’ll owe. This will help you avoid interest and other expensive penalties. 

Include schedule and information statements (if paper filing)

If you are filing your return electronically, you can submit electronic copies of your information statements like a W-2 or 1099 as well as your Form 1040 Schedules. If you are mailing your return, you’ll need to send physical copies of these documents. You do not need to include copies of receipts or other records, however, we recommend keeping them for a minimum of three years just in case you are audited.

Use gross income amounts

Do not report your net amount unless the return specifically requests it. Amounts due or paid to other sources should also be gross amounts. By reporting your net income, you will raise a red flag for the IRS who assumes you are withholding information. It is important to always be upfront when filing your tax return. 

If you are concerned about whether or not you’re filing correctly, make an appointment with Ingram, Wallis, & Co. at 979-776-2600. Our team is dedicated to accuracy and honesty as we file taxes for businesses and individuals. Confidently avoid IRS red flags by trusting us to file your tax return.

We see you scouring the internet for clues about how you can increase your tax refund and reduce the amount of taxes you owe. You wish you knew an expert who could tell you all about tax breaks and whether or not you can take advantage of them. We’ll give you insight into the 10 most popular tax credits and deductions, so you save money and expand your refund.

We see you scouring the internet for clues about how you can increase your tax refund and reduce the amount of taxes you owe. You wish you knew an expert who could tell you all about tax breaks and whether or not you can take advantage of them. We’ll give you insight into the 10 most popular tax credits and deductions, so you save money and expand your refund.

1.The Child and Dependent Care Credit

If your work or job search prevents you from taking care of your child or dependent full time, consider the Child and Dependent Care Credit (CDCC). This credit can be used towards care expenses as long the hired caregiver is not a parent or a spouse. You may be eligible for up to 35% of care costs, however, there is a limit of $3,000 for one dependent or $6,000 for multiple dependents.

2. The Child Tax Credit

Unlike a credit toward care expenses, the Child Tax Credit (CTC) is a tax break to help support parents as they take on additional costs having a child brings. If your child is 17 years old or younger and is listed as a dependent on your tax return, this credit may apply to you. Each qualifying child may give you a credit up to $2,000 if you do not reach the income limit. The CTC is “phased out” at $400,000 for those filing jointly and $200,000 for single filing.

3. The Additional Child Tax Credit

While the name may be confusing, the Additional Child Tax Credit (ACTC) is an additional credit for your child, not an indication of an additional child. If you were unable to claim the full CTC, you may be able to receive the remainder as a refund. CTC requirements still qualify. Under this credit, you may receive up to 15% of your taxable earned income minus $2,500. There is also a limit of $1,400 per child.

4. The Credit for Other Dependents

If your dependents do not qualify for the CTC or ACTC, a new Credit for Other Dependents is available. You can receive a non-refundable $500 credit for each adult dependent under your care. This includes parents, grandparents, or children over the age of 17. 

5. The Earned Income Tax Credit

The Earned Income Tax Credit (EITC) is available for low to moderate-income taxpayers. This includes working families or individuals who receive an earned income. Your income can come from wages, salaries, tips, long-term disability payments, or net earnings from self-employment. You are not eligible for EITC if you receive an income through retirement, social security benefits, interest or dividends, alimony or child support, or unemployment benefits.

6. Saver’s Credit

The Saver’s Credit gives you a credit of up to $1,000 for single filers and up to $2,000 for married couples if you are saving for retirement. When you file, note any contributions you make to a retirement plan such as a 401(k), IRA or Roth IRA.

7. The American Opportunity Tax Credit

The American Opportunity Tax Credit (AOC) applies to expenses incurred during the first four years of an undergraduate degree. The credit is worth $2,500 but up to $1,000 is refundable even if you didn’t overpay your taxes. However, there is an income limit before the credit begins decreasing. The limit is $80,000 for a single filer or $160,000 for married couples filing jointly.

8. The Lifetime Learning Credit

The other tax credit offered for those pursuing higher education is the Lifetime Learning Credit (LLC). This credit applies to taxpayers who are in graduate school, or who participate in post-secondary, career-related, or vocational courses. The credit is not refundable but can give you a tax break up to $2,000.

9. State and Local Tax Deduction (SALT)

You can claim deductions for a portion of your income tax if you live in a state with a state or local income tax. This deduction is worth up to $10,000 or $5,000 if you are married and filing separately.

10. Charitable Donations and Expenses

You can receive a tax deduction for donations made to qualifying charities. You can also receive a tax break for unreimbursed expenses incurred while volunteering. This includes gas mileage and supplies as long as the organization does not reimburse you. You may even be eligible for a deduction up to 50% of your adjusted gross income.

In order to save more money or receive more money in your tax refund, you need to understand which of these tax breaks applies to you. But if you trust Ingram, Wallis & Co. with your taxes, you can eliminate the guessing game and walk into Tax Day with confidence. We will work to find the tax breaks that benefit you. Contact us for an appointment today at 979-776-2600.

Source: https://www.1040.com/blog/2019/1/30/top-10-most-popular-credits-and-deductions/

https://www.1040.com/tax-guide/taxes-for-families/child-tax-credits/

https://www.1040.com/tax-guide/tax-savings-strategies/qualifying-for-the-eic/

Many changes have been made in the new legislation that will affect nearly every taxpayer. So, as you prepare to file your 2018 taxes, we want you to understand the new tax reform laws. You’ll have more confidence as you file when you know how you’ll be impacted by the new tax provisions. Below are several categories that have been adjusted in the bill and how these changes will affect you.

Many changes have been made in the new legislation that will affect nearly every taxpayer. So, as you prepare to file your 2018 taxes, we want you to understand the new tax reform laws. You’ll have more confidence as you file when you know how you’ll be impacted by the new tax provisions. Below are several categories that have been adjusted in the bill and how these changes will affect you.

Tax Rate

The tax rate was lowered across the board. The income thresholds associated with each tax rate were also adjusted.

The previous tax brackets were: 10%, 15%, 25%, 28%, 33%, 35% and 39.6%

The 2018 brackets are: 10%, 12%, 22%, 24%, 32%, 35% and 37%

This chart shows how your income aligns with the new tax rate. 

 Standard Deduction

The standard deduction is a set amount that reduces your taxable income. Under the new bill, the standard deduction for every filing status is nearly doubled compared to previous years. You have the choice to claim your standard deduction or itemize your deductions when it’s time to file. At Ingram Wallis, we’ll help you make the right decision.

Miscellaneous Deductions

Under the tax reform bill, miscellaneous items are suspended if it exceeds two percent of your Adjusted Gross Income (AGI). Miscellaneous items include unreimbursed employee expenses, investment management fees, safe deposit fees, and union dues. If you typically deduct miscellaneous items, don’t plan on it this year.

Personal Deductions

The tax reform bill also eliminated personal deductions, meaning you cannot claim a personal exemption for yourself, your spouse, or any dependents. 

State and Local Tax

In previous years, the deduction for state and local income tax was unlimited. Under the new law, there is a cap at $10,000 for joint or single filers. The cap moves to $5,000 for a married person filing separately.  This means that you can still deduct property and income tax or sales tax as itemized deductions, but it cannot exceed the amount of $10,000.

Tax Laws can be confusing, especially this year as we experience the tax reform. That’s why you should trust Ingram, Wallis and Company with your taxes. Our team is educated on the tax reform bill and dedicated to taking care of you or your business. We aim is to minimize both your current and your future tax liabilities. If you have questions about our tax services for both individuals and business, call us at 979-776-2600.

Source: https://blog.taxact.com/2018-tax-return-tax-reform-changes/

As you prepare to file your taxes, the process can feel overwhelming. At Ingram, Wallis & Company, we want to help make your filing experience as simple and pain-free as possible, so we’ve created a list of most of the forms you need to gather before you file. Please note that every form and category may not apply to you. This is simply a guide to help you collect the correct information.

As you prepare to file your taxes, the process can feel overwhelming. At Ingram, Wallis & Company, we want to help make your filing experience as simple and pain-free as possible, so we’ve created a list of most of the forms you need to gather before you file. Please note that every form and category may not apply to you. This is simply a guide to help you collect the correct information.

Personal Information

First, find last years tax return so that you can quickly locate personal information for your spouse, dependents, or the previous year’s adjusted gross income. Then, be sure you have your social security number or tax ID numbers as well as your childcare record for dependents. You may need to provide your childcare providers tax ID number as well as the total number of fees paid to the provider.

Income

For traditional employment, you’ll need a W-2 for each full-time or part-time position you’ve held this year. If you were unemployed at some point, or are currently unemployed, you need a 1099-G form. This form will also be provided to you if you received a state refund during the previous tax year.

If you are self-employed, you will have a 1099-MISC form, a 1099-K form, and/or a Schedule K-1. Be sure to collect business expense records such as receipts and credit card statements. Check Form 1040-ES for your estimated tax payment records. If you work from home, know the square footage of your home office or locate payment receipts if you rent office space. You also need to know your business-use asset information for tracking deprecation

If you have rental property, you will need to submit current income and expense records and estimated tax payment records. Identify rental asset information for tracking deprecation.

Retirement

When filing your retirement information, you may need any combination of the following forms. Form 1099-R records any pension, IRA, or annuity income. You can also compile the amount of money you contributed to an IRA that was already taxed through a traditional IRA basis. If you have receipted social security benefits during the year, you need to file form SSA-1099. Those who work for the railroad will file form RRB-1099 to report payments received from the Railroad Retirement Board and form RRB-1099-R to indicate the pension payments received from the Board. You may also need to locate form 5498-SA, form 5498, form 5498-QA, and form 5498-ESA.

Savings and Investments

If you used funds from an HSA during the year, form 1099-SA will indicate the distributions you took. Form 1099-LTC reports any benefits you received from long-term care. You may also have forms 1099-INT, 1099-OID, and 1099-DIV.

Locate forms 1099-B or 1099-S to report your investments. Find your current record of expenses related to your investments as well as investment acquisition dates, cost records, and estimated tax payments to cover the tax bill on the income from your investment(s).

Deductions and Charitable Donations

You may need form 1098, real estate tax records, personal property tax records, medical expense records, and receipts on energy-saving home improvements to file for a tax deduction.

Locate a record of the donations that you made to a charitable organization over the year. You can also include the number of miles you drove while volunteering for a charity.

Education

Locate receipts for educational expenses such as tuition, books, and other supplies as well as records for scholarships or fellowships. You may also have form 1098-T and form 10989-E.

State and Local Taxes

Find the record of state or local income tax you paid during the year. You may also need a vehicle sales tax invoice. You may also need to determine the amount of sales tax you paid during the year. 

The IRS has noted that they will not issue refunds to those claiming the Earned Income Tax Credit or the Additional Child Tax Credit until the middle of February. When refunds are delayed, there is greater protection against tax-related identity theft. However, it’s never too soon to start compiling your information. Let this year of filing taxes be smooth and efficient by trusting Ingram, Wallis & Company with your taxes. Contact us today at 979-776-2600 to learn more about our tax services. 

At Ingram Wallis, we provide a number of top-notch services that can greatly aid you or your business in getting your finances in order. At the core of these services are our taxes, consulting, and accounting services provided by our world-class staff of Certified Public Accountants.

Although we offer several useful accounting services from general ledgers and booking to computerized payroll services, and consulting services ranging from software selection and implementation to financial and retirement decisions, we are ready to help our clients take a step further with our wide range of tax services. With tax season upon us, we strive to provide financial information to our clients in a timely and accurate manner. This commitment is comprised of maintaining meaningful, well-organized financial records that can set up your business for success.

At Ingram Wallis, we provide a number of top-notch services that can greatly aid you or your business in getting your finances in order. At the core of these services are our taxes, consulting, and accounting services provided by our world-class staff of Certified Public Accountants.

Although we offer several useful accounting services from general ledgers and booking to computerized payroll services, and consulting services ranging from software selection and implementation to financial and retirement decisions, we are ready to help our clients take a step further with our wide range of tax services. With tax season upon us, we strive to provide financial information to our clients in a timely and accurate manner. This commitment is comprised of maintaining meaningful, well-organized financial records that can set up your business for success.

We’d like to delve a bit more into these services to give you a better glimpse into how our firm could potentially help you and yours.

Tax Services: At Ingram Wallis, we prefer taking a proactive approach to conquering your taxes. We do our best to stay ahead of tax law trends and regulatory changes, which puts us in a position to cater our tax plans to each of our clients. We strive to identify planning opportunities that will minimize both your current and future tax liabilities. More than this, we strive to provide the constant insight and extensive expertise that our clients deserve throughout filing season and the year. Some of the services we offer include:

Tax Planning and Return Preparation

• We provide tax planning and return preparation for a variety of different types of clients including individuals, corporations, partnerships, LLCs/LLPs, non-profit organizations. Time and time again, we have used this winning combination of services to ensure our clients are prepared for the upcoming tax season and well cared for throughout it. Our CPAs keep regulations old and new in mind, developing creative strategies that take advantage of new laws and regulations for the benefit of you or your business.

Estate and Trust Tax Preparation Services

• Effective estate and gift planning facilitates the orderly transfer of assets to your beneficiaries, provides security for your surviving spouse, and can reduce or eliminate the tax due on the transfer of your business and other assets. For business owners, providing for business continuity and succession of ownership is essential. We can guide you through the complex process of getting your financial affairs in order.

Divorce and Support Issues

• In the unfortunate scenario that our clients should be facing a divorce, we can help this transition in terms of proper filing status, tax exemptions and credits, potential alimony, property transfers, and tax liability issues.

Taxing Authority Representation

• In the unlikelihood that our clients should need legal representation, we are prepared to ensure our clients are being properly represented before various federal and state tax agencies. Throughout our many years of experience, we have gained the competence necessary to effectively represent our clients.

Tax Effects of Buying and Selling a Business

• Before you decide to buy or sell your business, or enter into any substantive negotiations, be sure you have reviewed with a qualified tax advisor the myriad of tax considerations involved. Only after you have considered the transaction structuring options considering your particular business’ structure and financial situation, should you engage in meaningful negotiations with a buyer or as a seller. Our tax experts are here to help you every step of the way.

IRS Representation

• In our many years of experience, knowledge, and expertise in working with many taxing authorities, we have attained a level of competence that helps ensure our clients that they are in the best hands and are being properly represented before the various federal and state tax agencies.

Payroll Services

• If your business is or will predictably experience considerable growth, it is likely the size of your staff will as well. This results in increased payroll administration, an area that the professionals at Ingram Wallis can assist with. We can help implement the necessary controls to ensure a reliable and efficient payroll system. Additionally, we are here to help prepare any necessary payroll tax returns as well.

Sales Tax Services

• No matter what kind of sales tax vicinity our clients and their business’ are responsible for collecting and submitting, we can assist your company in gathering all necessary information and in the preparation of sales tax returns in a manner that is efficient and timely for you.

The Ingram Wallis Difference

Looking for a trustworthy partner dedicated to meeting your or your business’s specified accounting needs? At Ingram Wallis, we help our clients daily with a wide variety of issues, and help answer important questions like “Am I doing my taxes right?” or “Is my company being thorough in our auditing process?” While these questions are not a substitute for financial advice from a qualified professional, they can be used as a starting point in your decision-making process – a decision we hope ends with the beginning of a partnership with us. Our clients have come to trust our dedicated professionals because of the results they readily produce.

With over 40 years serving the BCS community Ingram Wallis is one of the most established CPA firms in the area. Thousands of business owners and individuals have trusted Ingram Wallis to help manage their accounting needs. Call Ingram Wallis today to start a conversation about your accounting needs.

The relationship between accountant and client isn’t based on money; it’s based on trust.  There’s an invaluable connection from “Who do you trust with your finances?” to “Who do you trust with your future?” or “Who do you trust with your family?” At Ingram Wallis, our day-to-day operations and actions revolve around this central idea of trust. It’s a foundation that drives us to remain client-centered; we value the trust our clients place in us and set out each day to return on their investment with insight, counsel, guidance, accuracy, innovative services, and an ever-evolving portfolio of products. Our expansive accounting and auditing services, which are founded upon trustworthy client relationships, has allowed our dedicated staff of Certified Public Accountants to achieve innovative, efficient, and profitable financial solutions for our clients.

The relationship between accountant and client isn’t based on money; it’s based on trust.  There’s an invaluable connection from “Who do you trust with your finances?” to “Who do you trust with your future?” or “Who do you trust with your family?” At Ingram Wallis, our day-to-day operations and actions revolve around this central idea of trust. It’s a foundation that drives us to remain client-centered; we value the trust our clients place in us and set out each day to return on their investment with insight, counsel, guidance, accuracy, innovative services, and an ever-evolving portfolio of products. Our expansive accounting and auditing services, which are founded upon trustworthy client relationships, has allowed our dedicated staff of Certified Public Accountants to achieve innovative, efficient, and profitable financial solutions for our clients.

Why is Trust So Important to Us?

Trust is the foundation of our practice – but why? At Ingram Wallis, we believe the basis of the relationship between the accountant and the client is trust. Of course, the concept of accounting itself is based on money – simply put, our job is to ensure our clients’ finances are aptly overseen. However, we believe that definition to be far too simplistic and dedicate ourselves to fostering fruitful relationships with our clients which can only be achieved through a foundation of trust. At Ingram Wallis, we take everything a step further, starting with our relationships. We believe these relationships are built on a few specific principles:

Every clients’ needs are different – As a leading firm in the region with over 40 years of combined experience, we have worked with a number of different clients. Doing so has led us to realize the importance of catering to each of our clients in order to best hone in on their needs. Because of these successful, unique relationships, we have come to recognize a variety of client needs and have developed an expansive portfolio to meet such needs. Our qualified CPA’s experience in collaborating with a wide variety of clientele has equipped them with skills to adapt to each new and unique client we take on. Check out our entire list of services and descriptions here.

No matter the client, our commitment is the same – At Ingram Wallis, we re-commit ourselves to our work every time we take on a new client. We guarantee the highest level of reliability – we do what we say we will. We maintain high-quality results and reliability because of our top-tier leadership, shareholders, and CPA’s. Our founders, Tom Wallis and James D. Ingram III have extensive experiences working first and foremost in accounting and auditing, but their experience is widespread. Under their leadership, our firm has accumulated an experienced staff committed and capable of gaining the trust and achieving success for our current and prospective clients. It is important for us to share this with our prospective partners, but we know our actions will speak much louder.

The Ingram Wallis Difference

Looking for a trustworthy partner dedicated to meeting your or your business’s specified accounting needs? At Ingram Wallis, we help our clients daily with a wide variety of issues, and help answer important questions like “Am I doing my taxes right?” or “Is my company being thorough in our auditing process?” While these questions are not a substitute for financial advice from a qualified professional, they can be used as a starting point in your decision-making process – a decision we hope ends with the beginning of a partnership with us. Our clients have come to trust our dedicated professionals because of the results they readily produce.

For more information, don’t hesitate to contact us. At Ingram, Wallis & Co., our standards of integrity and responsiveness have earned our clients’ trust. 

Thank you for voting Ingram, Wallis, & Company, P.C. as the 2018 Readers’ Choice for “Best Tax Service” and “Best Accountant/Tax Professional.” After receiving this recognition in each individual category in previous years, we are extremely honored to receive recognition for both categories in the same year. We truly appreciate the support from all of our clients and friends who voted for us and look forward to being the trusted source for all of your accounting and tax needs in the years to come.

Thank you for voting Ingram, Wallis, & Company, P.C. as the 2018 Readers’ Choice for “Best Tax Service” and “Best Accountant/Tax Professional.” After receiving this recognition in each individual category in previous years, we are extremely honored to receive recognition for both categories in the same year. We truly appreciate the support from all of our clients and friends who voted for us and look forward to being the trusted source for all of your accounting and tax needs in the years to come.

We have served the B/CS area since 1979 by prioritizing our clients, our people and this community. We are passionate about the needs of our clients and dedicated to creating an environment of open communication, honesty, compassion and respect, as well as actively participating in the community. We accomplish this by selecting and retaining great people, serving great clients and focusing on great execution.

The relationship between an accountant and client isn’t based on money; it’s based on trust. Your trust is an investment not taken for granted at Ingram, Wallis & Company, P.C. Each day we strive to provide clients a return on their trust with insight, counsel, guidance, accuracy, innovative services and an ever-evolving portfolio of products.

The firm’s reputation for integrity and leadership is consistently recognized by professional and civic organizations in which our employees participate. Our employees have served in leadership positions in numerous local organizations including the Chamber of Commerce, St. Joseph Foundation, Leadership Brazos Alumni Association and the Bryan Viking Club.

Within the profession we are recognized as leaders locally and at the state level. Several of our officers have served as President of the local chapter of the Texas Society of Certified Public Accountants. In addition, officers have chaired statewide committees of the Texas Society of Certified Public Accountants, and have received awards for service to the profession.

Whether you are an individual navigating the complex tax laws, a business seeking to maximize profit potential or an organization requiring an audit, review or compilation, let Ingram, Wallis & Company, P.C. be your one-stop shop for all of your accounting needs.

Contact us at 979-776-2600.

NEW YORK—The Internal Revenue Service needs to find ways to better communicate how it is handling technology modernization and transformation, including in areas such as the use of artificial intelligence in its processes, agency Office of Internal Consulting Chief Joseph Zeigler said.

NEW YORK—The Internal Revenue Service needs to find ways to better communicate how it is handling technology modernization and transformation, including in areas such as the use of artificial intelligence in its processes, agency Office of Internal Consulting Chief Joseph Zeigler said.

Speaking during a plenary session August 18, 2026, at the IRS Nationwide Tax Forum, Zeigler said it is his “hope that the IRS is going to a better job of telling this story” about how the agency is using technology to help improve its operations and make lives easier for taxpayers and the tax professionals who assist them.

As an example, Zeigler specifically highlighted some of the work the agency is doing with AI.

“When we talk about AI, AI is not meant to replace bodies or people and computers doing the work and there is no human input,” he said. Rather it is about how the IRS “can give our employees tools and resources [and] technology to make them better, more efficient” and improve the quality of their work. “All of those things is what I believe that AI and technology were meant for.”

He continued: “It’s taking our world-class employees and putting them on steroids, giving them the ability to come to the right answer sooner.”

And at the end is the ultimate goal of making the taxpayer experience that much better and more in line with what they expect from their customer interactions with the private sector.

“If we can come to an answer that right the first time, and we can come to it quick, and we can report it to the taxpayer [and say] here’s what’s going on,” he said. “All those things are at our fingertips.”

The IRS issued guidance in the form of sample forms and proposed rollover procedures to simplify, standardize, and expedite the completion of direct rollovers to or from a retirement plan. The guidance is designed to comply with Section 324 of the SECURE 2.0 Act (P.L. 117-328). Use of the sample forms and proposed rollover procedures is optional.

The IRS issued guidance in the form of sample forms and proposed rollover procedures to simplify, standardize, and expedite the completion of direct rollovers to or from a retirement plan. The guidance is designed to comply with Section 324 of the SECURE 2.0 Act (P.L. 117-328). Use of the sample forms and proposed rollover procedures is optional.

The IRS indicates that these sample forms are not inftended to be used for rollovers and transfers between IRAs. According to reports made by the Government Accountability Office and the IRS's conversations with IRA stakeholders, IRA-to-IRA transfers are already completed through an electronic transfer system that is considered uniform and efficient.

The guidance includes:

• (1) a proposed rollover procedure;
• (2) the participant's rollover request form;
• (3) the receiving plan's request to the distributing plan;
• (4) the distributing plan's rollover certification; and
• (5) the receiving plan's rollover acceptance.

The IRS is considering additional guidance to facilitate rollovers. Guidance under consideration includes: (1) eliminating the safe harbor that allows plans to send paper checks to participants to complete a direct rollover; (2) requiring administrators and trustees to complete rollovers via electronic transfers or paper checks sent directly to the receiving plan; and (3) providing for new safe harbors based on the use of sample forms.

Notice 2026-49

IR 2026-91

The IRS and Treasury have announced their intension to propose regulations relevant to Code Sec. 6433 and the SECURE 2.0 Act of 2022 (P.L. 117-328). For tax years beginning after December 31, 2026, Code Sec. 6433 allows certain low- and moderate-income individual taxpayers who have made qualified retirement savings contributions to receive matching contributions of up to $1,000 as saver’s match contributions.

The IRS and Treasury have announced their intension to propose regulations relevant to Code Sec. 6433 and the SECURE 2.0 Act of 2022 (P.L. 117-328). For tax years beginning after December 31, 2026, Code Sec. 6433 allows certain low- and moderate-income individual taxpayers who have made qualified retirement savings contributions to receive matching contributions of up to $1,000 as saver’s match contributions.

Background

On April 30, 2026, President Trump issued an executive order to (1) increase public awareness of saver’s match contributions; (2) facilitate participation in eligible retirement savings vehicles; and (3) establish a website that informs about high-quality, low-cost IRAs and taxpayers without an employer-sponsored retirement plan. These taxpayers include independent contractors.

Saver’s Match Contributions vs Saver’s Credit

For tax years beginning after December 31, 2026, Saver’s Match contributions would replace the Saver’s Credit under Code Sec. 25B. This would apply to elective contributions, qualifying retirement plans and IRAs.

However, the Saver’s Credit would continue to be available after December 31, 2026, with respect to contributions made to ABLE accounts under Code Sec. 529A. Saver’s match contributions would be claimed on a new (unpublished) Form 8880-A, Saver’s Match for Qualified Retirement Savings Contributions.

Eligibility

Individual taxpayers who make qualified retirement savings contributions could be eligible for a Saver's Match contribution based on those contributions. The contributions to a new or already-existing IRA after the end of a tax year could be made until the tax filing deadline. The contributions should be designated as being made for the prior tax year.

Tax Status

An eligible individual taxpayer’s saver’s match contribution directly paid by the Treasury to a retirement plan is generally treated as an elective deferral made by the individual taxpayer. The contribution is not taken into account for any elective deferral and catch-up limitations that apply to Code Secs. 401(k), 403(b), or governmental 457(b) plans.

Comments Requested

The Treasury Department and the IRS request comments on the issues addressed on or before October 5, 2026. Comments can be submitted electronically via the Federal eRulemaking Portal at www.regulations.gov.

Notice 2026-48

IR 2026-89

The Treasury Department and IRS have issued initial guidance on the employer credit under Code Sec. 45S for premiums paid on family and medical leave insurance as provided by the One Big Beautiful Bill Act (OBBBA) (P.L. 119-21). Beginning in 2026, an employer may elect to determine the credit based on premiums paid or incurred during the tax year with respect to an insurance policy that provide such leave instead of based on wages paid to a qualifying employee during paid family and medical leave. The Treasury intends to issue proposed regulations that include this guidance.

The Treasury Department and IRS have issued initial guidance on the employer credit under Code Sec. 45S for premiums paid on family and medical leave insurance as provided by the One Big Beautiful Bill Act (OBBBA) (P.L. 119-21). Beginning in 2026, an employer may elect to determine the credit based on premiums paid or incurred during the tax year with respect to an insurance policy that provide such leave instead of based on wages paid to a qualifying employee during paid family and medical leave. The Treasury intends to issue proposed regulations that include this guidance.

Premium Method for Credit

The credit may be claimed under the premium method beginning in 2026 only to the extent the insurance premium funds a benefit that would be creditable under the wage method. Thus, the premium must be for insurance coverage with respect to leave that is:

• paid family and medical leave as defined under the Family Medical Leave Act (FMLA), or required by state local law or paid for by a state or local government,
• payable to an individual who is a qualifying employee of the employer at the time the premium is paid or incurred, and
• provides a benefit that would constitute wages to the employee.

In the case of a premium paid or incurred for an insurance policy that provides both creditable coverage and noncreditable coverage, the employer must allocate the premium between the creditable coverage and the noncreditable coverage using any reasonable method. For example, a blended premium would be a premium for coverage that provides both qualifying paid family and medical leave and other types of leave, or coverage for qualifying employees and nonqualifying employees.

An employer may calculate the tax credit using both the wage method with respect to certain leave and the premium method with respect to other leave. However, an employer may not use the wage method to claim a credit for wages paid to the extent that the employer claims a credit using the premium method for creditable coverage that funds such benefits (or vice versa).

Notice 2026-28

IR 2026-86

The IRS updated frequently asked questions (FAQs) for qualified overtime compensation. The FAQs update guidance on (1) the qualified overtime compensation deduction; (2) coverage and exemptions under the Fair Labor Standards Act (FLSA); (3) Form W-2, Form 1099-MISC, and Form 1099-NEC requirements; and more.

The IRS updated frequently asked questions (FAQs) for qualified overtime compensation. The FAQs update guidance on (1) the qualified overtime compensation deduction; (2) coverage and exemptions under the Fair Labor Standards Act (FLSA); (3) Form W-2, Form 1099-MISC, and Form 1099-NEC requirements; and more.

Qualified Overtime Compensation Deduction

The deduction is up to $12,500 of qualified overtime compensation earned for the year per individual tax return. It is $25,000 for joint return. The deduction is reduced if a taxpayer’s modified adjusted gross income (MAGI) for the tax year exceeds $150,000, and $300,000 for joint filers.

Coverage and Exemptions Under FLSA

The IRS noted that overtime under the FLSA must be paid to individual taxpayers who are (1) covered by the FLSA; and (2) not exempt from the FLSA’s overtime requirement. Ineligible taxpayers would not receive qualified overtime compensation regardless of other laws or circumstances. Employees who are exempt from the FLSA’s overtime requirement include teachers, academic administration personnel, employees of certain seasonal amusement or recreational establishments and more.

Employee-owners of businesses are not FLSA overtime-eligible employees. An employee who owns at least a bona fide 20-percent equity interest in the enterprise in which they are employed is ineligible.

Reporting Requirements

Starting in tax year 2026, payors and employers are required to separately report qualified overtime compensation on a Form 1099-MISC, Form 1099-NEC or Form W-2. Independent contractors would only report qualified overtime compensation on a Form 1099- MISC or Form 1099-NEC.

FS-2026-13

IR 2026-88

The Fifth Circuit Court of Appeals held that the original public meaning of "limited partner" in Code Sec. 1402(a)(13) is a partner who plays no significant role in managing or running a business. The court rejected the "passive investor" rule followed by the IRS and the Tax Court in Soroban Capital Partners LP (Dec. 62,310). The Fifth Circuit also withdrew its prior opinion in Sirius Solutions, L.L.L.P. (this was the prior name of the limited liability limited partnership in this litigation).

The Fifth Circuit Court of Appeals held that the original public meaning of "limited partner" in Code Sec. 1402(a)(13) is a partner who plays no significant role in managing or running a business. The court rejected the "passive investor" rule followed by the IRS and the Tax Court in Soroban Capital Partners LP (Dec. 62,310). The Fifth Circuit also withdrew its prior opinion in Sirius Solutions, L.L.L.P. (this was the prior name of the limited liability limited partnership in this litigation).

Background

A limited liability limited partnership operated a business consulting firm, and was owned by several limited partners and one general partner. For the tax years at issue, the limited partnership allocated all of its ordinary business income to its limited partners. Based on the limited partnership tax exception in Code Sec. 1402(a)(13), the limited partnership excluded the limited partners’ distributive shares of partnership income or loss from its calculation of net earnings from self-employment during those years, and reported zero net earnings from self-employment.

The IRS adjusted the limited partnership's net earnings from self-employment, and determined that the distributive share exception in Code Sec. 1402(a)(13) did not apply because none of the limited partnership’s limited partners counted as "limited partners" for purposes of the statutory exception. The Tax Court upheld the adjustments, stating it was bound by Soroban.

Limited Partners and Self Employment Tax

Code Sec. 1402(a)(13) excludes from a partnership's calculation of net earnings from self-employment the distributive share of any item of income or loss of a limited partner, as such, other than guaranteed payments in Code Sec. 707(c) to that partner for services actually rendered to or on behalf of the partnership to the extent that those payments are established to be in the nature of remuneration for those services.

In Soroban, the Tax Court determined that Congress had enacted Code Sec. 1402(a)(13) to exclude earnings from a mere investment, and intended for the phrase "limited partners, as such" to refer to passive investors. Thus, the Tax Court there held that the limited partner exception of Code Sec. 1402(a)(13) did not apply to a partner who is limited in name only, and that determining whether a partner is a limited partner in name only required an inquiry into the limited partner's functions and roles.

No Significant Role in Management

The Fifth Circuit stated that the backdrop against which Congress enacted Code Sec. 1402(a)(13) in 1977 suggested that some participation is allowed, so long as the partners do not exercise control over the business, and that the plain text of the statute points towards this conclusion. The court observed that all relevant sources suggested that when the statute was enacted, the ordinary public meaning of"limited partner" included a partner who did not play a significant role in managing or running the business.

The Fifth Circuit rejected the Tax Court’s Soroban decision, which held that that the term "limited partner" could refer only to passive investors. The court stated that the Tax Court had selected a rule that was divorced from statutory text and that appeared to prohibit even the most minor involvement in corporate affairs. In the Fifth Circuit's view, it would have been understood at the time Congress enacted Code Sec. 1402(a)(13) that a limited partner could not manage the partnership, but perhaps could participate in certain nonmanagerial aspects of the business.

The court also stated that the Soroban decision could not be squared with decades of IRS-approved guidance insisting that what mattered was limited liability alone. The court characterized the IRS's position to be that it could change the meaning of "limited partner" from "limited liability alone" to the "passive investor" standard with no action from Congress to amend the text of Code Sec. 1402(a)(13). Even assuming that the IRS could unilaterally effectuate such changes through tax instructions, the court stated that the IRS's instructions must comport with the original public meaning of the text enacted by Congress.

Withdrawing Sirius Solutions, L.L.L.P., CA-5, 2026-1 ustc ¶50,109, and vacating and remanding an unreported Tax Court opinion.

K Alain, L.L.L.P., CA-5

The IRS has issued final regulations that clarify when backup withholding applies to payments made in settlement of third party network transactions. The final rules reflect amendments to Code Secs. 6050W and 3406 made by the One Big Beautiful Bill Act (OBBBA) (P.L. 119-21), and apply to payments made in calendar years beginning after December 31, 2024.

The IRS has issued final regulations that clarify when backup withholding applies to payments made in settlement of third party network transactions. The final rules reflect amendments to Code Secs. 6050W and 3406 made by the One Big Beautiful Bill Act (OBBBA) (P.L. 119-21), and apply to payments made in calendar years beginning after December 31, 2024.

Under the de minimis payment rule of Code Sec. 6050W(e) for information reporting purposes, a third party settlement organization (TPSO) must report payments made in settlement of third party network transactions to a payee only if the payments exceed $20,000 and 200 transactions in a calendar year. The final regulations align the backup withholding obligations under Code Sec. 3406 with this reporting threshold.

A payment will be considered a reportable payment subject to backup withholding only if both the $20,000 and 200 transaction thresholds are exceeded during the calendar year. The amount subject to backup withholding includes the entire amount of the transaction that causes either threshold to be breached, whichever occurs later, and the amount of any subsequent transactions made to the payee during the same calendar year. Further, if the TPSO made payments in settlement of third party network transactions to the payee in the previous calendar year that were reportable payments under the backup withholding rules, the de minimis exception to backup withholding would not to payments made to that payee in the current calendar year.

Participating Payees

In the preamble to the Treasury Decision, the Treasury Department and the IRS used the opportunity to clarify that de minimis TPSO reporting and the backup withholding thresholds apply with respect to each participating payee, as defined by Code Sec. 6050W(d)(1).

T.D. 10053

The Financial Crimes Enforcement Network (FinCEN) has issued a final rule that permanently removes the requirement that U.S. companies and U.S. persons must report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act. The final rule adopts, with limited changes, an interim final rule issued on March 26, 2025, that narrowed the BOI reporting requirements.

The Financial Crimes Enforcement Network (FinCEN) has issued a final rule that permanently removes the requirement that U.S. companies and U.S. persons must report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act. The final rule adopts, with limited changes, an interim final rule issued on March 26, 2025, that narrowed the BOI reporting requirements.

The Corporate Transparency Act (CTA) was enacted in 2021 as part of the broader Anti-Money Laundering Act of 2020. Its reporting requirement had been characterized as an important step in the fight against money laundering, financing of terrorism, proliferation financing, serious tax fraud, human and drug trafficking, counterfeiting, piracy, securities fraud, financial fraud, and acts of foreign corruption.

In late 2024 and early 2025, however, several federal district courts preliminarily enjoined FinCEN from implementing and enforcing the reporting rule. The Treasury Department announced in March 2025 that it was suspending enforcement of the CTA and its reporting requirements against U.S. citizens, domestic reporting companies, and their beneficial owners, and issued the interim final rule.

BOI Reporting Exemptions

The final rule:

• adopts exemptions that make the rollback of beneficial ownership reporting by U.S. companies permanent,
• exempts foreign pooled investment vehicles registered in the United States from reporting the BOI of a U.S person in control of the investment vehicle, and
• confirms that FinCEN will delete information about any individual that it reasonably believes is a U.S. person (for example, information that is linked to a U.S. passport or U.S. driver's license).

The final rule also makes substantive changes that expand on the relief in the interim final rule, by:

• exempting foreign companies from the requirement to report U.S. person “company applicants” (i.e., the individuals who helped those foreign companies register to do business in the United States), and
• exempting U.S. persons who have applied for FinCEN Identifiers (FinCEN IDs) from having to update or correct the information they provided to FinCEN when they applied.

Foreign entities that are reporting companies are still required under the final rule to report BOI for foreign individuals.

FinCEN has also issued answers to frequently asked questions on the final rule.

FinCEN Final Rule RIN-1506-AB67