Mark your calendar for a free workshop at our office geared toward newly incorporated clients.
Mark your calendar for a free workshop at our office geared toward newly incorporated clients and for those who are already incorporated but want to avoid any tax problems and want to maximize their corporation status to reduce their personal tax liability. Introduction to the ten mistakes that cost business owners thousands.
Here are the dates for the workshops.
Saturday August 21, 2010 at 10:30 a.m.
Wednesday, September 1, 2010 at 5:30 p.m.
45 minutes or less guaranteed.
Refreshments served.
No charge to active clients.
Thursday, July 29, 2010
Wednesday, July 28, 2010
Quote of the day.
"Change creates an opportunity to learn. It’s in these times of great change that those who capitalize on it create inordinate wealth.”
Former Harrah’s CEO Phil Satre
Former Harrah’s CEO Phil Satre
What an interesting month July has turned out to be.
This week my assistant Bridget is enjoying a well deserved vacation to California. I am manning the office on my own this and have to admit I greatly appreciate her more and more each day.
This month I learned some interesting things:
1. If you are going to restructure your business, by firing a key employee, an employment and non compete contract in place, signed at date of hire, can make all the difference in the world. The only winners if you don't are the attorneys.
2. The internet continues to grow in use, popularity and the number source for finding your business telephone number. The internet has become today's yellow pages. Especially for anyone under the age of 35. The incredible beauty of the internet, especially Google is it is free. List Your Business on Google Add Photos, Hours & More. It's Free
3. The expiration of the Bush tax cuts on December 31, 2010 will become something of a Tax Tsunami. Here is a link to an incredibly eye opening article from Investor's Daily.
4. The old joke about how to tell when a politician is lying applies to the Federal Government's defense of the numerous Obamacare lawsuits. The President's vehemently defended the health care mandate portion of the bill for those who are not covered by a government approved health insurance and the penalties for non compliance as not being a tax. You got to love you tube. The tax discussion starts at 3:21.
5. Speaking of Obama Care say hello to a new IRS form: 1099 K. From David Frum at The Week.com:
Embedded in the new healthcare law, however, is a staggering requirement: using a new form — the 1099k — small businesses will have to start reporting all their purchases of goods from other businesses.
Did you rent a car or stay in a hotel? 1099K.
Buy ink and paper from Staples? 1099K.
Lease space in a local mall? 1099K.
Collect revenue from PayPal, eBay or Amazon merchants? 1099K.
And don’t forget to collect each company’s taxpayer ID number while you are at it!
This month I learned some interesting things:
1. If you are going to restructure your business, by firing a key employee, an employment and non compete contract in place, signed at date of hire, can make all the difference in the world. The only winners if you don't are the attorneys.
2. The internet continues to grow in use, popularity and the number source for finding your business telephone number. The internet has become today's yellow pages. Especially for anyone under the age of 35. The incredible beauty of the internet, especially Google is it is free. List Your Business on Google Add Photos, Hours & More. It's Free
3. The expiration of the Bush tax cuts on December 31, 2010 will become something of a Tax Tsunami. Here is a link to an incredibly eye opening article from Investor's Daily.
4. The old joke about how to tell when a politician is lying applies to the Federal Government's defense of the numerous Obamacare lawsuits. The President's vehemently defended the health care mandate portion of the bill for those who are not covered by a government approved health insurance and the penalties for non compliance as not being a tax. You got to love you tube. The tax discussion starts at 3:21.
5. Speaking of Obama Care say hello to a new IRS form: 1099 K. From David Frum at The Week.com:
Embedded in the new healthcare law, however, is a staggering requirement: using a new form — the 1099k — small businesses will have to start reporting all their purchases of goods from other businesses.
Did you rent a car or stay in a hotel? 1099K.
Buy ink and paper from Staples? 1099K.
Lease space in a local mall? 1099K.
Collect revenue from PayPal, eBay or Amazon merchants? 1099K.
And don’t forget to collect each company’s taxpayer ID number while you are at it!
Sunday, July 18, 2010
1099 = Health Care
From the Wall Street Journal online:
Ms. Olson (IRS Taxpayer Advocate) also exposed a damaging provision that she estimates will hit some 30 million sole proprietorships and subchapter S corporations, two million farms and one million charities and other tax-exempt organizations. Prior to ObamaCare, businesses only had to tell the IRS the value of services they purchase. But starting in 2013 they will also have to report the value of goods they buy from a single vendor that total more than $600 annually—including office supplies and the like.
Democrats snuck in this obligation to narrow the mythical "tax gap" of unreported business income, but Ms. Olson says that the tracking costs for small businesses will be "disproportionate as compared with any resulting improvement in tax compliance." Job creation, here we come . . . at least for the accountants who will attempt to comply with a vast new 1099 reporting burden.
Meanwhile, the IRS will be inundated with useless information, because without a huge upgrade its information systems won't be able to manage and track the nanodetails.
Stop the madness...this November.
Read more by clicking the above link.
Ms. Olson (IRS Taxpayer Advocate) also exposed a damaging provision that she estimates will hit some 30 million sole proprietorships and subchapter S corporations, two million farms and one million charities and other tax-exempt organizations. Prior to ObamaCare, businesses only had to tell the IRS the value of services they purchase. But starting in 2013 they will also have to report the value of goods they buy from a single vendor that total more than $600 annually—including office supplies and the like.
Democrats snuck in this obligation to narrow the mythical "tax gap" of unreported business income, but Ms. Olson says that the tracking costs for small businesses will be "disproportionate as compared with any resulting improvement in tax compliance." Job creation, here we come . . . at least for the accountants who will attempt to comply with a vast new 1099 reporting burden.
Meanwhile, the IRS will be inundated with useless information, because without a huge upgrade its information systems won't be able to manage and track the nanodetails.
Stop the madness...this November.
Read more by clicking the above link.
Thursday, July 1, 2010
July 1 2010 Client Newsletter
A quick reminder:
Minimum wage increases for Illinois Employers as of July 1, 2010.
New rate is $8.25 per hour. Tipped employees are now $4.95 per hour.
We will post a link to the Illinois Department of Labor web site for more information at our blog.
>>>>>>>>>>>>
http://www.state.il.us/agency/idol/laws/law105.htm
Ten Stupid Things Smart People Do To Mess Up Their Taxes
After every April 15th we kind of shake are heads and wonder why. How can really smart people, our clients, do such stupid things to their taxes. Each year we compile of list of mistakes our clients made with one purpose in mind. Don’t make the same mistake. Learn from their lessons.
Here is our current list of things to avoid this year.
1. Take money out of their IRA or pension plan and don’t have any money withheld for taxes. If you have to take money out of your tax sheltered plan don’t forget that there is a 10 percent penalty in addition to Federal tax owed on the distribution if you are under age 59 1/2. Don’t ever take money out of these plans without having the most Federal tax withheld from the distribution. Call our office if we can help.
2. Take money out of their IRA or pension plan or 401 K and not roll it over to another tax deferred plan. Back on this subject again. Leaving your job usually means cashing in a pension plan or 401 K. We understand that sometimes the money is needed to pay for day to day activities until you can find a new job. But if you don’t need the money don’t spend it roll it over. We can help you if you don’t know what to do. We can refer you to very competent people that can help with the rollover. Taking the money if you don’t need it means additional tax liability.
3. Sell stocks or mutual funds and not know what they paid for it. If you are dabbling in the market, you need to keep track of what you paid for the security and when you bought each security. We suggest keeping a permanent stock purchase file, and filing the confirmation each time you buy a security. That way, when you sell it you can easily locate the purchase price and purchase date. Remember that you only pay tax on the gain and you can deduct the loss of each security you sell.
4. Don’t keep any records. Records are very important in our imaginary tax world. Especially for business tax deductions like car expenses. Jotting down on a daily basis in a daily planner or pocket calendar is all you need. Keep a file nearby for tax deductible receipts. Better yet get a credit card that you use only business tax deductions. That way you all the receipts organized for you. Your credit card along with your milage calendar is all you need to make April 15th very less taxing.
5. Give charitable deductions, especially non cash and don’t make an attempt to value the donation. A note about the date and time of your deduction and a short list of the description of the deduction in your tax deduction file is all you need.
6. Not filing your taxes because you don’t have the money to pay. Always file, even if you do not have the money to pay the taxes you owe. The IRS considers not paying on time and not filing as two separate issues, and a penalty is involved for each. When you file your tax return, you have several options. You can apply for an "offer in compromise," make monthly payments through an IRS installment agreement, or temporarily delay paying. Whichever is best for you, we will help you contact the IRS right away to let them know you cannot pay. You should pay as much as you can when you file because the IRS assesses penalties and interest on the amount not paid.
7. Ignore those letters from the IRS. Do not ignore mail from the IRS. If you owe taxes, the IRS will collect. Persons who do not communicate with the IRS about inability to pay can expect a "Notice of Federal Tax Lien" to be filed against their property. In lien terms, this is a lien about the size of Alaska. Few carry more weight. The lien attaches all your property, including your house, car and any future property you might obtain. A levy, which is a legal seizure of property to satisfy a tax debt, is another legal means the IRS can use to collect taxes. This means the IRS can seize your car, boat or home and sell it to satisfy your tax debt or it can place a levy on your wages. More good news is that these liens often stay on your records long after the issue has been resolved or until the IRS gets around to removing it. So it's also the gift that keeps on giving!
8. Signing. It's not the toughest part of the tax return, but we have found that one of the most common mistakes occurs on the bottom of the tax form: the place where you're supposed to sign your name. A lot of taxpayers simply forget to do it. And, a return without a signature is like no return at all. Although the IRS won't send back your forms (it doesn't want them to get lost in the mail), everything is put on hold while you're sent a special form to sign certifying that your return is accurate. Only after you sign and send in that form, and the tax agency matches it up with your other forms, can your return be processed -- and any refund check issued.
9. Big refunds. Isn’t that the point of filing? Big refunds. In fact some clients rate the expertise of their tax preparer with the size of their refund. The bigger the refund the better the tax preparer. Nothing can be farther from the truth. Refunds are nothing more than interest free loans of your money, even earned income credit which can be advanced to you from your employer throughout the year, to the government. Then you have to go through the expense and the wait of getting your refund when you file your taxes. Extra withholding doesn’t benefit you, only the government. Don’t stand for big refunds. Stand for bigger paychecks. Your goal should be break even on April 15th.
10. Assuming the wrong filing status. Single taxpayers should be singled out for assuming that they should file as single tax payers when in fact they qualify for the much-more-favorable head-of-household (HOH) filing status. Say you're single and your non-adult child lives with you and pays for less than half of his or her own support. If you pay more than half the household's costs, you qualify. You may also qualify if you are still married and lived with your child but apart from your spouse for at least the last half of 2006. Finally, if you are single and can claim your parent as a dependent, you can probably file as HOH. This is true even if your parent has his or her own place. You are the HOH if you pay more than half the cost of your dependent parent's home.
Here’s How to Beat the IRS. Legally! Free Tax Coach Program Report until December 31.
Are you confident you’re taking advantage of every tax break you deserve?
At Tax Partners, we believe proactive tax planning is the key to keeping more of what you make. Proactive tax planning means scouring your income and expenses for every available deduction, credit, loophole, and opportunity. And without “aggressive” strategies, “gray areas” or “red flags.”
We’ve licensed a new planning tool – one that will help us more than ever before – to identify and explore opportunities with you to cut your tax bill. Innovative analysis, combined with our years of experience, gives you the proactive advice you need with the reliable service you trust.
Our tax coaching service gives you a plan for beating the IRS. Legally We have included a three page questionnaire to help you start the program today. After you complete the questionnaire, either mail it or drop it by our office. We will call you to make an appointment after your plan is completed. It is that simple. It is free. No obligation or strings attached.
Minimum wage increases for Illinois Employers as of July 1, 2010.
New rate is $8.25 per hour. Tipped employees are now $4.95 per hour.
We will post a link to the Illinois Department of Labor web site for more information at our blog.
>>>>>>>>>>>>
http://www.state.il.us/agency/idol/laws/law105.htm
Ten Stupid Things Smart People Do To Mess Up Their Taxes
After every April 15th we kind of shake are heads and wonder why. How can really smart people, our clients, do such stupid things to their taxes. Each year we compile of list of mistakes our clients made with one purpose in mind. Don’t make the same mistake. Learn from their lessons.
Here is our current list of things to avoid this year.
1. Take money out of their IRA or pension plan and don’t have any money withheld for taxes. If you have to take money out of your tax sheltered plan don’t forget that there is a 10 percent penalty in addition to Federal tax owed on the distribution if you are under age 59 1/2. Don’t ever take money out of these plans without having the most Federal tax withheld from the distribution. Call our office if we can help.
2. Take money out of their IRA or pension plan or 401 K and not roll it over to another tax deferred plan. Back on this subject again. Leaving your job usually means cashing in a pension plan or 401 K. We understand that sometimes the money is needed to pay for day to day activities until you can find a new job. But if you don’t need the money don’t spend it roll it over. We can help you if you don’t know what to do. We can refer you to very competent people that can help with the rollover. Taking the money if you don’t need it means additional tax liability.
3. Sell stocks or mutual funds and not know what they paid for it. If you are dabbling in the market, you need to keep track of what you paid for the security and when you bought each security. We suggest keeping a permanent stock purchase file, and filing the confirmation each time you buy a security. That way, when you sell it you can easily locate the purchase price and purchase date. Remember that you only pay tax on the gain and you can deduct the loss of each security you sell.
4. Don’t keep any records. Records are very important in our imaginary tax world. Especially for business tax deductions like car expenses. Jotting down on a daily basis in a daily planner or pocket calendar is all you need. Keep a file nearby for tax deductible receipts. Better yet get a credit card that you use only business tax deductions. That way you all the receipts organized for you. Your credit card along with your milage calendar is all you need to make April 15th very less taxing.
5. Give charitable deductions, especially non cash and don’t make an attempt to value the donation. A note about the date and time of your deduction and a short list of the description of the deduction in your tax deduction file is all you need.
6. Not filing your taxes because you don’t have the money to pay. Always file, even if you do not have the money to pay the taxes you owe. The IRS considers not paying on time and not filing as two separate issues, and a penalty is involved for each. When you file your tax return, you have several options. You can apply for an "offer in compromise," make monthly payments through an IRS installment agreement, or temporarily delay paying. Whichever is best for you, we will help you contact the IRS right away to let them know you cannot pay. You should pay as much as you can when you file because the IRS assesses penalties and interest on the amount not paid.
7. Ignore those letters from the IRS. Do not ignore mail from the IRS. If you owe taxes, the IRS will collect. Persons who do not communicate with the IRS about inability to pay can expect a "Notice of Federal Tax Lien" to be filed against their property. In lien terms, this is a lien about the size of Alaska. Few carry more weight. The lien attaches all your property, including your house, car and any future property you might obtain. A levy, which is a legal seizure of property to satisfy a tax debt, is another legal means the IRS can use to collect taxes. This means the IRS can seize your car, boat or home and sell it to satisfy your tax debt or it can place a levy on your wages. More good news is that these liens often stay on your records long after the issue has been resolved or until the IRS gets around to removing it. So it's also the gift that keeps on giving!
8. Signing. It's not the toughest part of the tax return, but we have found that one of the most common mistakes occurs on the bottom of the tax form: the place where you're supposed to sign your name. A lot of taxpayers simply forget to do it. And, a return without a signature is like no return at all. Although the IRS won't send back your forms (it doesn't want them to get lost in the mail), everything is put on hold while you're sent a special form to sign certifying that your return is accurate. Only after you sign and send in that form, and the tax agency matches it up with your other forms, can your return be processed -- and any refund check issued.
9. Big refunds. Isn’t that the point of filing? Big refunds. In fact some clients rate the expertise of their tax preparer with the size of their refund. The bigger the refund the better the tax preparer. Nothing can be farther from the truth. Refunds are nothing more than interest free loans of your money, even earned income credit which can be advanced to you from your employer throughout the year, to the government. Then you have to go through the expense and the wait of getting your refund when you file your taxes. Extra withholding doesn’t benefit you, only the government. Don’t stand for big refunds. Stand for bigger paychecks. Your goal should be break even on April 15th.
10. Assuming the wrong filing status. Single taxpayers should be singled out for assuming that they should file as single tax payers when in fact they qualify for the much-more-favorable head-of-household (HOH) filing status. Say you're single and your non-adult child lives with you and pays for less than half of his or her own support. If you pay more than half the household's costs, you qualify. You may also qualify if you are still married and lived with your child but apart from your spouse for at least the last half of 2006. Finally, if you are single and can claim your parent as a dependent, you can probably file as HOH. This is true even if your parent has his or her own place. You are the HOH if you pay more than half the cost of your dependent parent's home.
Here’s How to Beat the IRS. Legally! Free Tax Coach Program Report until December 31.
Are you confident you’re taking advantage of every tax break you deserve?
At Tax Partners, we believe proactive tax planning is the key to keeping more of what you make. Proactive tax planning means scouring your income and expenses for every available deduction, credit, loophole, and opportunity. And without “aggressive” strategies, “gray areas” or “red flags.”
We’ve licensed a new planning tool – one that will help us more than ever before – to identify and explore opportunities with you to cut your tax bill. Innovative analysis, combined with our years of experience, gives you the proactive advice you need with the reliable service you trust.
Our tax coaching service gives you a plan for beating the IRS. Legally We have included a three page questionnaire to help you start the program today. After you complete the questionnaire, either mail it or drop it by our office. We will call you to make an appointment after your plan is completed. It is that simple. It is free. No obligation or strings attached.
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