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Returning Value Blog

Jessica L. Pagan, CPA

Jessica Pagan has worked with Machen McChesney since 2003. She specializes in reviews, business and individual tax and construction accounting. She participates in core processes, mentoring and training at the firm.

Recent Posts

Know the Ins and Outs of "Reasonable Compensation" for a Corporate Business Owner

Posted by Jessica L. Pagan, CPA on Apr 22, 2021

Owners of incorporated businesses know that there’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason: A corporation can deduct the salaries and bonuses that it pays executives, but not dividend payments. Thus, if funds are paid as dividends, they’re taxed twice, once to the corporation and once to the recipient. Money paid out as compensation is only taxed once — to the employee who receives it.

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Posted in Business Advisory

IRS to Recalculate Taxes for Unemployment Break

Posted by Jessica L. Pagan, CPA on Apr 07, 2021

The legislation signed in March allows taxpayers who earned less than $150,000 in modified adjusted gross income to exclude unemployment compensation up to $20,400 if married filing jointly and $10,200 for all other eligible taxpayers. The legislation excludes only 2020 unemployment benefits from taxes.

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Posted in Individual Tax

The Latest on COVID-Related Deadline Extensions for Health Care Benefits

Posted by Jessica L. Pagan, CPA on Mar 16, 2021

The U.S. Department of Labor (DOL) recently issued EBSA Disaster Relief Notice 2021-01, which is of interest to employers. It clarifies the duration of certain COVID-19-related deadline extensions that apply to health care benefits plans.

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Posted in Business Advisory

"No Surprises Act" Protects Patients From Unexpected Medical Costs

Posted by Jessica L. Pagan, CPA on Feb 05, 2021

According to research, millions of Americans receive a surprise medical bill each year, most often as a result of emergency room visits where out-of-network providers perform services at an in-network facility. While the average surprise bill is roughly $600, bills can reach into the tens of thousands. In fact, a COVID-19 patient received a surprise air ambulance bill that was over $52,000.

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Posted in Individual Tax

Forecasting For 2021

Posted by Jessica L. Pagan, CPA on Jan 22, 2021

Planning for what lies ahead is an important part of running a healthy business. Forecasting your company’s financial statements can help you manage inventory and other working capital accounts, offer competitive prices, identify impending cash flow shortages and keep your business on solid financial footing.

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Posted in Accounting & Outsourcing

2021 Q1 Tax Calendar: Key Deadlines for Businesses and Other Employers

Posted by Jessica L. Pagan, CPA on Jan 08, 2021

Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2021. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements.

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Posted in Business Tax

Put Your Company's Financial Statements to Work for You.

Posted by Jessica L. Pagan, CPA on Dec 17, 2020

It’s almost time for calendar-year businesses to prepare their year-end financial statements. If used correctly, these reports can be a valuable management tool. Use them in benchmarking and forecasting to be proactive, not reactive, to market changes.

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Posted in Business Valuation

The Importance of S Corporation Basis and Distribution Elections

Posted by Jessica L. Pagan, CPA on Dec 04, 2020

S corporations can provide tax advantages over C corporations in the right circumstances. This is true if you expect that the business will incur losses in its early years because shareholders in a C corporation generally get no tax benefit from such losses. Conversely, as an S corporation shareholder, you can deduct your percentage share of these losses on your personal tax return to the extent of your basis in the stock and any loans you personally make to the entity.

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Posted in Business Tax

Tax Responsibilities if Your Business Is Closing Amid the Pandemic

Posted by Jessica L. Pagan, CPA on Nov 03, 2020

Unfortunately, the COVID-19 pandemic has forced many businesses to shut down. If this is your situation, we’re here to assist you in any way we can, including taking care of the various tax obligations that must be met.

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The Tax Rules for Deducting the Computer Software Costs of Your Business

Posted by Jessica L. Pagan, CPA on Oct 14, 2020

Do you buy or lease computer software to use in your business? Do you develop computer software for use in your business or for sale or lease to others? Then you should be aware of the complex rules that apply to determine the tax treatment of the expenses of buying, leasing, or developing computer software.

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Posted in Business Tax

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