How We Helped Some Past Clients

A new client came to us frustrated by their continued low profits. Although they were able to increase sales, their losses became larger. R. P. Minich PC sent out a team to document the financial reporting of the business. We reviewed the accounting system, modified the transaction flow and instituted a cost accounting program and paperless workflow system.

After implementing these changes, it became evident that components were not being purchased in the most cost effective manner and the purchasing manager had been involved in some fraudulent transactions.
Our client, a real estate investor, was selling a building in a municipality that imposes a high real estate transfer tax. We knew that the transfer tax was only one piece of the puzzle to reducing our clients’ overall tax. We worked with our client in structuring this as an installment sale and in doing so, were able to avoid not only the transfer tax, but also the alternative minimum tax and passive investment income tax.
An elderly client with significant assets came to us to assist him in transferring wealth to his heirs. We reviewed his assets and his health exposure. We then transferred his assets into a trust. He received monthly income from the trust and upon his demise he did not have any estate or inheritance tax on his transferred assets. The family was relieved because the estate was very simple to administer.
A client engaged us to represent them in an IRS payroll tax matter. The company was required to deposit payroll taxes with the federal, state and local taxing authorities. The internal revenue service assessed the business and the responsible party taxes due. We negotiated with the IRS to settle the balance for the trust fund portion of the tax and terminated the company to avoid paying penalty and interest.

Keep Your Business & Personal Expenses Separate

Business Owners – Do not pay your personal expenses from your business accounts. Transfer the money to your personal account and pay your personal expense from your personal account. Why? Because the accounting work will be easier and if your business is a Corporation or an LLC you could have a problem protecting your personal assets in a lawsuit. Attorneys will use the payment of personal expenses as a way to pierce your corporate veil. If the corporate veil is removed you will not receive the Limited Liability and personal assets are subject to being attached for use in the settlement of a lawsuit.

In the Event of an audit the IRS will reclassify these payments as wages on a corporation and guaranteed payments if you are a Limited Liability Company. This will increase your taxes.