Axley & Rode, LLP

An employee stock ownership plan (ESOP) is a type of qualified retirement plan that invests solely or mainly in the stock of the business sponsoring the plan. However, an ESOP can also help business owners with succession planning because it facilitates the gradual transfer of ownership shares to heirs or employees in a tax-advantaged manner. Contrast this with a buyout, which usually occurs suddenly and demands a substantial amount of cash to change hands. ESOPs do have their challenges. Only C or S corporations can create one, substantial administration and compliance costs are involved, and independent plan valuations must support ESOP transactions. Contact an Axley & Rode advisor for more information or visit our website: https://bit.ly/4gj8aOV

Family businesses often start out small, with casual operational approaches. However, informal (or nonexistent) policies and procedures can become problematic as such companies grow. If you’re ready to take your company to the next level, take aim at these four areas: 1) Performance management; write job descriptions, provide training and implement an equitable employee performance management system. 2) Business processes; document and enhance every process to reduce manual effort and redundancies. 3) Strategic planning; build a leadership team, hold regular meetings and share goals with staff. 4) Information technology; work on integrating your systems and fortifying cybersecurity. Please contact an Axley & Rode advisor for any further inquiries or visit our website: https://bit.ly/3OXzvdu

Happy Birthday to our employees celebrating their special day this April! Wishing you a fantastic year ahead filled with joy and success. Thank you for being an amazing part of our team! #HappyBirthday #TeamCelebrations #AxleyRode

Getting ready to file your 2024 return and finding your tax bill is higher than you’d like? There may still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA up until this year’s April 15 filing deadline and benefit on your 2024 return. An eligible taxpayer can make a 2024 IRA contribution of up to $7,000 ($8,000 if you’re 50 or older). You must meet income requirements to qualify. Business owners can also set up and contribute to SEP plans up until the filing due date, including extensions. For 2024, the most you can contribute to a SEP is $69,000. Contact an advisor for more information about growing your nest egg on a tax-favored basis or visit our website: https://bit.ly/3X7kri6

The April 15th tax filing deadline is right around the corner. However, you might not be ready to file. Sometimes, it’s not possible to gather your tax information by the due date. If you need more time, you should file for an extension on Form 4868. An extension will give you until Oct. 15 to file and allow you to avoid “failure-to-file” penalties. However, it only provides extra time to file, NOT TO PAY. Whatever tax you estimate is owed must still be sent by April 15, or you’ll incur penalties, and they can be steep. Contact us if you have questions about IRS penalties or about filing Form 4868. For more information go to our website: https://bit.ly/3TPEkrv

HOW TO CHECK YOUR REFUND STATUS Here's a quick guide on how to check your tax refund status. It's easy and can be done right from your home. 💻 Need more help? Don't hesitate to reach out for assistance with the IRS website or contacting an Axley & Rode advisor! #TAXTIP #2024TAXREFUND

Does your company’s balance sheet include acquired goodwill? This indefinite-lived intangible asset must be regularly monitored for impairment, which happens when the fair value of goodwill falls below its cost. Goodwill impairment potentially signals that a business combination failed to meet management’s expectations due to internal or external factors. In recent years, uncertain markets, lingering inflation and high interest rates have caused goodwill impairments to spike. We can help ensure transparent reporting of past M&A transactions and evaluate prospective deals to reduce the risk of overpaying. Contact an Axley & Rode advisor for more information on valuing goodwill for accounting purposes. For any further questions, please visit our website: https://bit.ly/4gz6OPR

Do you understand how auditors verify account balances and transactions? This knowledge can minimize disruptions when auditors conduct fieldwork and maximize your audit’s effectiveness. Five common sources of “substantive evidence” include: 1) Confirmation letters 2) Original source documents 3) Physical observations 4) Comparisons to external market data 5) Recalculations. To streamline your upcoming audit, let’s discuss the types of evidence we expect to gather for each financial statement category. We can help you anticipate document requests and inquiries. Please contact an Axley & Rode advisor for further assistance. For any further inquiries, please visit our website: https://bit.ly/3P1EdXL

Employee Spotlight: Christine Elliot an Administrative Assistant, at Axley & Rode, LLP. Christine attended the University of Texas at El Paso. She has worn many hats during her career ranging from a Substitute Teacher to an Accounting Clerk. Christine is a former military spouse and has lived in many places around the country, because of this she has learned how to become a driven and resourceful administrative professional with 20+ years experience under her belt. Christine’s favorite inspirational quote Live, Love, Laugh: Live everyday like it was your last; Love everyone just as you should be loved; and Laughter is like taking good medicine. Christine is motivated best by learning new things. She is also motivated by spotting flaws/errors and making sure that the end result of a project is the best that it can be. Christine loves to meet new people in the industry and learning from them to better understand the ins and outs so as to be more knowledgeable in the field. She chose to work at Axley & Rode because of its long history of helping people in local communities with their tax and accounting needs. Christine and her husband have 5 grown daughters and one 3 year-old grandson with another on the way! They also have 2 dogs, a Boxer and an English Bulldog. Her favorite movie is Top Gun, a classic! Christine and her husband also own their own laser engraving business where they create custom projects for customers. #ourpeoplemakethedifference #employeespotlight #axleyrode #meettheteam #trustedadvisor

The 2025 standard deduction will increase to $15,000 for single taxpayers, $30,000 for married couples filing jointly and $22,500 for heads of household. This is up from the 2024 amounts of $14,600 for singles, $29,200 for joint filers and $21,900 for heads of household. For 2025, the highest tax rate of 37% will affect singles and heads of households with income exceeding $626,350 ($751,600 for joint filers). This is up from 2024 when the 37% rate affects single taxpayers and heads of households with income exceeding $609,350 ($731,200 for joint filers). The 2025 gift tax exclusion is $19,000, up from $18,000 in 2024. For any further questions, please contact an Axley & Rode advisor or visit our website: https://bit.ly/41yGDVj