Why Hire A Portable CFO?

Why Hire a Portable CFO?

Let’s be honest: Entrepreneurs and small business owners wear many hats. During the regular course of a day, you may find yourself handling customer tasks or orders, interfacing with vendors, or dealing with couriers and shipping companies. More often than not, business owners find there is little time left to cope with the financial aspects of the company. If this sounds familiar, it may be time to explore the Dukhon’s Portable CFO services.

Portable CFO – An À La Carte Menu of Services

Small businesses typically do not require a full-time or even part-time Chief Financial Officer. As an alternative to this traditional role, companies are now outsourcing their financial needs to accounting firms like Dukhon.

In working with our clients, the team at Dukhon realized there was a demand for an à la carte menu of services. Our Portable CFO offerings ensure we are working on what you need, when you need it. And as your company grows, so can the level of support. In essence, as your Portable CFO – we can design a plan of customized services just right for you.

Portable CFO Duties

The duties of a Portable CFO can range from banking and analysis, to policies, procedures and business strategy. Specific tasks can include cash flow monitoring, financial planning and reporting, advice on resources and capital structure, risk assessments, relationship management with creditors and banks, in addition to a full range of accounting and advisory services.

Supporting Your Business Growth

At Dukhon Tax and Accounting, we want to ensure business owners have the support they need to efficiently run and grow their business. To learn more about the Dukhon Portable CFO services or to discuss how we can can help oversee your financial activities, contact our Allston, Massachusetts office at 617.651.0531 or email [email protected]

The IRS Tools of Last Resort: Tax Levies and Liens

April 15th is in most taxpayers' rearview mirrors--except for those with an outstanding tax debt.

There are provisions for extending the deadline date for filing, but the extension must be accompanied by a payment, or the clock starts ticking for accruing of interest and penalties and setting in motion a levy or a lien.


Settle up or face the dreaded L-words

With its power to levy, the IRS can seize and sell off your property or assets. Said property could include your home, car or boat. The IRS could also seize your wages and other financial assets such as:

  • retirement, bank and investment accounts
  • rent incomes
  • cash value of your life insurance policy

There are three basic criteria that must be met before the IRS enforces a tax levy:

  1. You actually owe taxes and have received a Notice and Demand for Payment in the mail.
  2. You did not pay the tax owed after receiving the final notice, including a notice of your right to a hearing.
  3. You had the hearing and appeal, but couldn't prove your case.

The foregoing process occurs over a period of about 60 days. It also includes an opportunity for you to appeal an adverse ruling, which is a lengthy and complicated process where the services of a qualified tax expert would be helpful.

A lien weighs down your property and credit standing.

A lien, on the other hand, is a legal claim against your property because of a tax debt. It differs from a levy in that the government does not actually take your property. Rather, the lien prevents you from liquidating or otherwise disposing of the property.

The criteria the IRS uses for imposing a lien are the same as a levy.

What a lien does

A lien attaches itself to all your assets--property, vehicles, and securities including future assets you acquire when the lien is in effect. A lien will also significantly handicap your personal credit rating.

If you own a small business, all the property owned by the business may be subject to the lien. Bankruptcy is not an escape, because a federal tax lien continues past the bankruptcy settlement and any debt divestiture.

Relief from levies and liens

The IRS has the option to release a levy if you can prove "immediate economic hardship." Such release won't erase the tax bill, but will give you time to work out a payment plan or find other means to discharge your tax debt.

Likewise, the IRS will remove a tax lien on your property when you pay the outstanding balance in full or satisfy the outstanding balance through a successful offer in compromise, for example. Also, a lien determination can become unenforceable if it is overtaken by the ten-year statute of limitations.


Financial and business setbacks sometimes happen to responsible, honorable people. The IRS has no interest in punishing or impoverishing those who make an honest effort to discharge their tax obligations.

Don't panic and don't procrastinate. You have 30 days to respond to the IRS written notice, and your best course of action is to get professional assistance. Contact us today to find out how we can help.

When You Need to File an Amended Tax Return

Tax season is over and you might think that you can rest easy now that your return has been filed but that's not always the case. Sometimes you need to file an amended tax return, whether you realize it or not. Here are some of the common reasons for filing an amendment.
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Taxes & Recordkeeping For Uber, Lyft & Other Rideshare Drivers

The rise of the sharing economy brings about a great deal of tax concerns, whether you rent out your home on Airbnb or pick up groceries on Instacart. Rideshare services like Uber and Lyft are a fact of life today. Whether you drive for these apps full-time or as a side hustle, you'll get a 1099 so the IRS gets a copy and you have to report this income on your tax return. What to do?

Do Lyft, Uber, Sidecar, etc. Drivers Have to Pay Self-Employment Tax?

taxes for uber driver 1099Yes. When you work for a rideshare app, you're not considered an employee of the company so you're subject to self-employment tax. However, the good news is that there are ways to help mitigate how much you'll owe by deducting your related expenses which are primarily car-related.

What Kinds of Expenses Can I Deduct?

Unless you have a car specially meant for driving for Uber and Lyft, you must figure out a business percent of your personal car for your auto expenses. This would include:

  • Gas
  • Insurance
  • License and registration
  • Repairs and maintenance
  • Cleaning and car wash
  • Leasing a car
  • Car payments (with some limits)

You can always deduct parking fees and tolls in full provided that it's for when you're on duty with Uber or Lyft, but devices like EZ-Pass would have to use the business percent if you also use it in your personal driving. Speeding tickets and other fines are never deductible.

Other common expenses for rideshare drivers that aren't subject to the business percent would include things like mints, bottled water, and other refreshments that you stock for your passengers.

How Should I Keep Track of My Car Expenses?

When it comes to deducting auto expenses for rideshare drivers, you need to keep good time logs and mileage logs of when you're on duty and when you're not. Based on how much time and mileage you're putting in as a rideshare driver, you need to compare this to how often you use your car on your own time in order to figure out your business percentage.

If you're bound to lose things like gas receipts, you can also use the standard mileage method to figure out your deduction. The IRS sets a business mileage rate every year, it is $0.575/mile for the 2015 tax year but you can only use one method. If you live in an area where gas and other car-related expenses have relatively low costs, it might benefit you more to use the standard mileage method. You can still deduct tolls in full, but can't deduct your other car expenses. Whereas if you live in an area where maintaining your car is pretty expensive, it probably pays to keep good records of how much you pay for gas, license renewal, and car payments among other things.

Keeping good mileage logs is important so that you can not only prove you're using your car for business reasons, but also so you can compare which way to deduct auto expenses will save you the most on taxes.

Dukhon Tax is available for any questions and concerns about Uber driver taxes and helping you determine whether your actual auto expenses or the standard mileage is best for cutting your tax bill.

Source: Standard Mileage Rates

Estimated Taxes: Who Has to Pay Them and How?

The majority of taxpayers pay their taxes due annually when filing their tax return for the year. In some circumstances, however, taxes must be paid to the IRS on a quarterly basis. These tax payments are called estimated taxes because they are based on the amount of income that an individual or business expects to make for the year.
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4 Questions You Should Ask Your Tax Advisor This Tax Year

According to a piece in Business News Daily, tax year 2015 brings some new challenges and opportunities for small business owners in Boston and throughout the U.S. business landscape. If you want to stay ahead of the curve, you probably should ask our tax advisor a few questions.

Here are four to get you going:

Question 1. How does The Affordable Care Act (aka: Obamacare) affect my business?

The challenge: The act added another 2,400 pages to the already prodigious tax code. The IRS is now the gatekeeper for employee insurance coverage rules, which go into effect as follows:

  • January 1, 2015: Businesses with 100 or more workers must offer health insurance to 70 percent or more of their full-time employees.
  • January 1, 2016: The minimum number of employees drops from 100 to the 59-99 range.

tax planning services bostonTax penalties include up to $2,000 per non-covered employee. The IRS will audit employees’ W2 forms as employers report the cost of health coverage they provide. One tax expert from a Los Angeles-based tax advisory firm puts it succinctly: “It’s going to be a big regulatory nightmare.”

Question 2. I rely on online sales to out-of-state buyers. Will I have to report and collect sales taxes for states other than my own?

The short answer:  If you do business on line, your days of out-of-state “tax-free clicks” are probably numbered.  The reintroduction of the so-called “Marketplace Fairness Act” gives each state the authority to force out-of-state businesses to collect sales tax from online or catalog purchases.

The bill is now in the Senate and has bipartisan support. (See https://www.congress.gov/bill/114th-congress/senate-bill/698/actions for updates.)

Question 3.  How will Republican control of both houses affect the tax laws that regulate my business?

Again, the short answer: The Republicans are in charge and  “everything is on the table.”   Now in control of both houses of Congress, the Republicans could have significant impact on taxes.  According to the chairman Senate Finance Committee, there could be “new momentum” for overhaul of the U.S. tax code in 2015, which could impact the business tax burden.

Stay tuned to find out if Republican election promises materialize beyond the bluster, inaction and finger pointing that has characterized the U.S. Congress for so long.

Question 4. What can I do to keep from being overwhelmed by tax laws and IRS regulations?

A partial answer involves staying ahead of the curve.  Business owners don’t have to become overwhelmed. Take the following steps to go from reactive to proactive:

  • Keep taxes top of the mind all year long. Tax planning has to be a year-round effort. Just as in personal tax returns, waiting until the last minute complicates the process and limits options.
  • Avoid business decisions based on assumptions that existing tax breaks will continue. One expert advises clients “to make sure the tax tail isn’t wagging the dog.” Don’t make business decisions based solely on taxes. Keep the business in the forefront. If the tax breaks come, that is definitely a bonus.
  • Stay aware, and informed. Business owners need to keep up with laws and the myriad IRS regulations. Even with expert help, business owners need to stay alert to stay ahead.

Finally, if you haven’t already done so, hire a pro. If you overlooked business tax credits and deductions because of poor record keeping, or you are simply unready to cope with the burden of Obamacare, it’s not too late to catch up. Make 2015 the year you finally got the year-round tax planning, guidance and professional tax practice can provide.

Contact Dukhon Tax about all your tax concerns and start tax planning in advance to increase your bottom line!