Small business insights

Building Hearts of Hospitality: How Padgett helped Savanna bring her vision to life

Savanna Traub, the founder and heart and soul of Hearts of Hospitality, has been in the cleaning industry for over two decades. Growing up helping her mom with cleaning jobs, Savanna developed a love for homemaking and service. “I was kind of that nerdy kid who really enjoyed homemaking,” she reminisces. “I fell in love with the life lessons I learned along the way, especially from my mom. The hard work ethic, the importance of delighting clients—that’s really what I fell in love with.”  Though she didn’t initially intend to stay in the cleaning industry, a combination of life circumstances and a love for serving families brought her back. “I really fell in love with serving homes and families on […]

5 Key tax considerations for your Partnership or LLC agreement

Running a partnership or LLC comes with its own set of tax rules, and making sure your business complies with federal tax law is essential. Here are five important areas to cover when drafting your partnership or LLC operating agreements: 1. Guaranteed Payments to Partners Guaranteed payments are made to partners for services or capital, regardless of the partnership’s income. They should be clearly outlined in your agreement since they are treated as ordinary income and have specific tax implications. Be sure to define these payments to avoid surprises at tax time. 2. Accounting for Tax Basis from Partnership Liabilities Partners can benefit from additional tax deductions by including their share of the partnership’s liabilities in their tax basis. Different […]

Empowering Tax Practitioners: The Hidden Opportunities in IRS Collaboration

“The IRS wants your input.” If that statement surprises you, it’s time for a paradigm shift. As revealed in a recent episode of the Federal Tax Updates podcast featuring IRS officials and tax professional leaders, a new era of collaboration is emerging in tax administration. Gone are the days of an insular IRS. As Terry Lemons, the IRS’s Chief Communications and Liaison Officer, states today, “We can’t run the tax system by ourselves at the IRS. We need help. Tax professionals play a vital role.” This focus on partnering with tax pros offers practitioners new opportunities for input, education, and problem-solving. In a live podcast from the bustling halls of the IRS Nationwide Tax Forum, hosts Roger Harris, EA, and […]

IRS audit efforts on the rise: What small businesses should know

The IRS has been ramping up its audit efforts, targeting large corporations and high-income individuals. By 2026, audit rates for corporations with over $250 million in assets are set to nearly triple. Additionally, partnerships with assets above $10 million will face a tenfold increase in audits. This initiative, funded by the Inflation Reduction Act, is part of a broader IRS strategy to focus on wealthier entities and noncompliant high-dollar returns. Are Small Businesses Affected? For most small businesses and individuals earning less than $400,000, audit rates are unlikely to increase. The IRS’s priority remains on more complex returns involving wealthier taxpayers. For instance, taxpayers who use business aircraft for personal travel are under added scrutiny, as only business-related flights can […]

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