Certified Public Accountant
Blog
Current tax and accounting news and helpful tips for businesses and individuals.
Posted in General on Feb 22, 2012
Extension of payroll tax cut. The 2% payroll tax cut has been extended through 2012.
Unemployment benefits. The new law changes several unemployment benefit provisions, including the following:
? Temporarily extends benefits for up to 99 weeks, depending on the state.
? Requires an unemployment insurance beneficiary to be able to work, available to work, and actively seeking work.
? Under certain circumstances, states may enact legislation to require an applicant to submit to and pass a drug test for the unlawful use of controlled substances.
? Allows states to create self-employment assistance programs to help unemployed workers while they are establishing businesses.
Last Updated by Liz Weaver on 2012-02-22 10:29:04
Posted in Taxes on Feb 22, 2012
Last Updated by Liz Weaver on 2012-02-22 10:24:17
Posted in Taxes on Feb 17, 2012
The Internal Revenue Service issued its annual ?Dirty Dozen? list of tax scams, reminding taxpayers to use caution during tax season to protect themselves against a wide range of schemes ranging from identity theft to return preparer fraud.
http://www.irs.gov/newsroom/article/0,,id=254383,00.html
Last Updated by Liz Weaver on 2012-02-17 12:54:38
Posted in Taxes on Feb 16, 2012
Last Updated by Liz Weaver on 2012-02-16 09:35:01
Posted in Individual Taxes on Feb 14, 2012
If you didn't receive a W-2 from an employer IRS advises the following steps:
1) Contact employer to verify address
2) If the W-2 is not received by February 14, 2012 contact the IRS and provide the employer's information, dates of employment and estimated wages and taxes withheld.
3) File the 1040 by April 17, 2012 and attach Form 4852 Substitute for Form W-2.
4) Prepare an amended 1040 if the W-2 is eventually received and differs from the tax return numbers used.
Last Updated by Liz Weaver on 2012-02-14 11:47:04
Posted in Taxes on Feb 07, 2012
National Taxpayer Advocate Nina E. Olson released her annual report to Congress, identifying the combination of the IRS? expanding workload and declining resources as the most serious problem facing taxpayers. The result, the report says, is inadequate taxpayer service, erosion of taxpayer rights, and reduced tax compliance. The advocate expressed her continuing concern that the IRS? expanding use of automated processes to adjust tax liabilities is causing harm to taxpayers and recommended that Congress enact a comprehensive Taxpayer Bill of Rights.
Last Updated by Liz Weaver on 2012-02-07 09:13:02
Posted in Business on Feb 03, 2012
Those who bought a home in 2008 and claimed the First-Time Homebuyer Credit must repay the credit in 15 equal annual installments beginning on the 2010 return. Some tax professionals have confusion with new clients on whether or not the client needs to repay the credit; they claimed the 2009 credit, which requires no repayment or how much has already been paid back. The IRS has released a new tool, First Time Homebuyer Credit Account Look-up, which allows taxpayers to see their balance of the credit and repayment amount.
Last Updated by Liz Weaver on 2012-02-03 08:40:32
Posted in Business on Feb 03, 2012
Minnesota Sales Tax deadline for Annual Filers and Use Tax Returns is February 6th. All businesses must file a Use Tax return even if they don't normally submit sales tax returns.
Last Updated by Liz Weaver on 2012-02-03 08:36:51
Posted in Payroll on Jan 11, 2012
You may hear about the requirement to report the cost of employer-sponsored health insurance on each employee's 2012 W-2. This requirement is for information purposes only and does not create taxability for the benefit. And, since only employers that filed 250 or more W-2s in 2011 will be required to do this reporting, it will not affect most employers reading this blog.
Last Updated by Liz Weaver on 2012-01-11 13:45:01
Posted in Business on Jan 06, 2012
1099-MISC forms are due out by January 31st. If your business has paid at least $600 for rents or services during 2011 to an individual, sole properietor, partnership or LLC, you will need to prepare form 1099-MISC.
Payments to corporations are not subject to 1099-MISC except attorneys. Payments of at least $600 to attorney would require a 1099-MISC even if they are incorporated.
To prepare the forms you will need name, address and social security number or EIN. You can obtain this information by having form W-9 filled out for each service provider. It is a good idea to get this form filled out and signed before payment is made whenever possible.
If you receive a social security number, you will fill out the 1099-MISC with the person's name even if they have a business name. If you receive an EIN, you must use the business name.
Last Updated by Liz Weaver on 2012-01-06 12:40:22
Posted in Taxes on Dec 22, 2011
Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2011 and the years ahead.
The saver?s credit helps offset part of the first $2,000 workers voluntarily contribute to IRAs and to 401(k) plans and similar workplace retirement programs. Also known as the retirement savings contributions credit, the saver?s credit is available in addition to any other tax savings that apply.
from e-News for Tax Professionals
Last Updated by Liz Weaver on 2011-12-22 09:29:26
Posted in Taxes on Dec 12, 2011
The IRS released standard mileage rates for use in 2012:
Business miles - 55˝ cents per mile.
Medical or moving miles - 23 cents per mile
Charitable miles - 14 cents per mile.
Rather than using the standard mileage rates, taxpayers may instead use their actual costs if they maintain adequate records and can substantiate their expenses.
Last Updated by Liz Weaver on 2011-12-12 07:50:38
Posted in Business Taxes on Nov 29, 2011
From the St. Paul Pioneer Press: Minnesota, the US Department of Labor and the IRS are teaming up to go after employers that misclassify workers. There will be both educational outreach and many more investigations. This is a serious problem as employers who correctly report their employees are put at a competetive disadvantage with those who don't.
Last Updated by Liz Weaver on 2011-11-29 14:21:25
Posted in Taxes on Nov 16, 2011
401(k) & 403(b):
Maximum contribution - $17,000
Catch-up contribution (50 and older) - $5,500
SIMPLE or SIMPLE 401(k):
Maximum contribution - $11,500
Catch-up contribution (50 and older) - $2,500
SEP:
Maximum contribution - 25% of wages up to $50,000 or
20% of SE income after 1/2 SE tax up to $50,000
Traditional & Roth IRA:
Maximum contribution - $5,000
Catch-up contribution (50 and older) - $1,000
Last Updated by Liz Weaver on 2011-11-16 10:43:00
Posted in Taxes on Aug 31, 2011
The IRS has made changes to its lien filing practices that will lessen the negative impact on taxpayers. The changes include:
- Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.
- Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.
- Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
- Creating easier access to Installment Agreements for more struggling small businesses.
- Expanding a streamlined Offer in Compromise program to cover more taxpayers.
Last Updated by Liz Weaver on 2011-08-31 12:03:19
Posted in Individual Taxes on Aug 16, 2011
Following are some tax tips for taxpayers seeking employment:
You can deduct employment and outplacement agency fees paid while looking for a job in your current occupation.
Amounts spent for preparing and mailing copies of resumes to prospective employers are deductible as long as you are looking for a job in your current occupation.
Travel expenses to another location in search of a job in your current occupation are deductible if the primary purpose of the travel is to look for a new job.
You should keep receipts for expenses and documentation of travel to substantiate job search expenses. Qualifying expenses are taken as a miscellaneous itemized deduction on Schedule A (Form 1040), Itemized Deductions, subject to the 2% AGI limitation.
You cannot deduct job search expenses if there is a substantial break between the end of the last job and the time you begin looking for a new job. Also, expenses for taxpayers searching for a job for the first time are not deductible.
Information is from The TaxBook
Last Updated by Liz Weaver on 2011-08-16 10:57:16
Posted in Individual Taxes on Aug 16, 2011
The Affordable Care Act increased the amount of the credit to as much as $13,170 and made it refundable.
The IRS has indicated that inflation adjustments may be made for 2011 to the phaseout amount, as well as to the maximum credit amount.
Information is from The TaxBook.
Last Updated by Liz Weaver on 2011-08-16 10:35:39
Posted in Individual Taxes on Aug 10, 2011
Last Updated by Liz Weaver on 2011-08-16 10:40:25
Posted in Individual Taxes on Jul 20, 2011
Effective for taxable years beginning on or after January 1, 2011, the owner of the account or a person authorized to contribute to the account such as a parent, grandparent, great-grandparent, aunt, or uncle of the beneficiary is allowed the subtraction from income for up to $3,000 of the amount the person contributed to the college savings account or tuition expense program if the beneficiary of the account is the owner's or authorized person's child, grandchild, great-grandchild, niece, or nephew.
Last Updated by Liz Weaver on 2011-07-20 08:01:55
Posted in Business Taxes on Jul 11, 2011
Last Updated by Liz Weaver on 2011-07-11 13:16:17
Posted in Rental on Jul 11, 2011
Sch E is being re-designed for 2011 - more data will be required, including:
Type of Property - Single Family Home, Condo, Commercial, etc.
Number of Days Occupied
Number of Days Used for Personal Purposes
You will want to start tracking this data right away to make your life easier at tax time!
Last Updated by Liz Weaver on 2011-07-11 13:01:23
Posted in General on Apr 08, 2011
In the event the government shuts down after midnight on Friday, April 8, all taxpayers should continue filing their tax returns and paying their taxes as normal. The April 18 deadline remains in effect.
The IRS plans to continue accepting all tax returns -- both electronic and paper. Refunds will continue to be processed normally for electronically filed tax returns, and most taxpayers will not see delays for e-filed returns. However, taxpayers should expect delays for paper tax refunds.
Taxpayers can still expect to receive refunds in less than two weeks with direct deposit.
If people have already filed their return and the IRS has started processing their tax return, they generally will see no delays in their refunds being issued. The best source for information will be checking "Where's My Refund" at www.IRS.gov.
Last Updated by Liz Weaver on 2011-07-11 13:02:31
Posted in Individual Taxes on Mar 18, 2011
Due to a computer processing glitch, the IRS mailed 200,000 CP-14 balance due notices to taxpayers who filed electronically. These notices told the taxpayers that their balance was due by April 15, even if they had already designated automatic withdrawal from their bank accounts.
These notices were not to be processed in the middle of tax season, and instead should have been processed after the database had been updated to account for direct debit payments.
The IRS has stated that if a taxpayer consequently pays twice using direct debit and check, the IRS will automatically issue a refund for any overpayment.
It is important to note that not all taxpayers have received a Notice CP-14 in error. If the bank account listed on the tax return was listed incorrectly, a taxpayer would receive this notice.
Last Updated by Liz Weaver on 2011-07-11 13:03:20
Posted in Quickbooks on Mar 16, 2011
Microsoft has released Internet Explorer 9. There may be some compatibility issues with Quickbooks so if you are using Quickbooks you may want to hold off on upgrading your Internet Explorer.
Last Updated by Liz Weaver on 2011-07-11 13:04:07
Posted in Business Taxes on Mar 11, 2011
The IRS has a new online tool to make it easier to remember important tax and deposit deadlines. Download the free IRS CalendarConnector and keep it on your computer desktop to check important tax dates on a daily, weekly or monthly basis.
Last Updated by Liz Weaver on 2011-07-11 13:04:48
Posted in Individual Taxes on Mar 03, 2011
Refunds totaling more than $1.1 billion may be waiting for nearly 1.1 million people who did not file a federal income tax return for 2007, the Internal Revenue Service announced. However, to collect the money, a return for 2007 must be filed with the IRS no later than Monday, April 18, 2011.
Last Updated by Liz Weaver on 2011-07-11 13:05:37
Posted in Individual Taxes on Feb 23, 2011
Last Updated by Liz Weaver on 2011-07-11 13:06:09
Posted in Individual Taxes on Feb 10, 2011
IRS will begin accepting tax returns with itemized deductions and other delayed forms after 11 am Eastern time next Monday.
Last Updated by Liz Weaver on 2011-07-11 13:06:56
Posted in Non-Profit on Jan 21, 2011
The IRS has announced that for tax years beginning on or after Jan. 1, 2010, most tax-exempt organizations whose gross annual receipts are normally $50,000 or less can file the e-Postcard. The threshold was previously set at $25,000 or less. (However, supporting organizations of any size must file the standard Form 990 or, if eligible, Form 990-EZ).
Last Updated by Liz Weaver on 2011-07-11 13:08:11
Posted in Business Taxes on Jan 19, 2011
When you have a few minutes to spare, surf over to Microsoft's Office at Work website. You may find that investing just a few minutes there may save you many hours in the future. The site is loaded with business templates (from analysis worksheets to Excel expense reports), software tips and budget designs, all of which are free to download. The website is tinyurl.com/dhghvu.
Last Updated by Liz Weaver on 2011-07-11 13:08:59
Posted in Individual Taxes on Jan 12, 2011
A dependent has to file a return if the dependent has:
1) Only earned income (W2s, 1099s etc) and the total is more than $5,700
2) Only unearned income (interest, dividends etc) and the total is more than $950
3) Both earned and unearned income and the totalincome is more than $5700 or the unearned income is more than $300
Last Updated by Liz Weaver on 2011-07-11 13:09:36
Posted in Payroll on Jan 04, 2011
The new tax act reduced employee share of social security from 6.2% to 4.2% for 2011 only. Medicare remains unchanged at 1.45%.
Last Updated by Liz Weaver on 2011-07-11 13:10:18
Posted in Payroll on Jan 04, 2011
The IRS reminds employers about the new withholding tables released Friday for 2011. Employers should implement the 2011 withholding tables as soon as possible, but not later than Jan. 31, 2011. Publication 15, (Circular E), Employer's Tax Guide, containing the extensive wage bracket tables that some employers use, is available on IRS.gov.
Last Updated by Liz Weaver on 2011-07-11 13:10:59
Posted in Individual Taxes on Jan 04, 2011
Following last week's tax law changes, the Internal Revenue Service announced Monday that taxpayers affected by three recently reinstated deductions need to wait until mid- to late February to file their individual tax returns. In addition, taxpayers who itemize deductions on Form 1040 Schedule A will need to wait until mid- to late February to file as well.
You can still bring all your return in and have it prepared at your usual time but we may have to delay the actual e-filing. The IRS will announce specific dates in the near future.
Last Updated by Liz Weaver on 2011-07-11 13:11:42
Posted in Business Taxes on Dec 31, 2010
2011 2010
Business Miles .51 .50
Medical Miles .19 .165
Moving Miles .19 .165
Charitable Miles .14 .14
Last Updated by Liz Weaver on 2011-07-11 13:12:31
Posted in Business Taxes on Dec 22, 2010
Last Updated by Liz Weaver on 2011-07-11 13:13:03
Posted in Individual Taxes on Dec 20, 2010
Last Updated by Liz Weaver on 2011-07-11 13:13:36
Posted in Payroll on Dec 20, 2010
Attention! As of January 1, 2011, businesses will be required to make federal tax deposits electronically.
You must be enrolled in EFTPS to pay. If you recently were pre-enrolled in EFTPS and cannot find your PIN, call 888.434.7338. Payments must be scheduled by 8 p.m. ET the day before the due date to be received timely.
Last Updated by Liz Weaver on 2011-07-11 13:14:20
Posted in Individual Taxes on Dec 17, 2010
Congress has passed the compromise bill and the President is expected to quickly sign it into law .
Last Updated by Liz Weaver on 2011-07-11 13:14:53
