Free Tough Times Seminar Invitation

We know that times are tough…we know that it is harder to make a profit in today’s economy than ever before, and that attracting and keeping customers is more difficult as they have less to spend.  We also know that you opened your business to pursue a dream, and that, even though it may be challenging right now, you still have what it takes to turn your dream into a success.

That’s why we’re offering business owners like you the opportunity to meet with some of the area’s top tax and business accounting professionals to share some of their tips with you.   Over the years, we have noticed that business owners in particular do not always take advantage of some of the tax breaks that are available.  These tax breaks are not “loopholes”; they are incentives built into the tax code to allow you to keep more of your income so that you can continue to grow your business.

Please join us at one of our FREE upcoming seminars so that we can help your business succeed and grow.  Our February seminars are scheduled for:

              Wednesday February 3^rd at 5:30 PM

              Thursday February 11^th at 5:30 PM

              Saturday February 20^th at 10:00 AM

In addition to offering tax planning and preparation, we can help in other areas of your business operations including:

-         Payroll services: Tax Partners’ payroll services are far less expensive than other providers and less time-consuming and frustrating for business owners than doing it themselves.  We ensure that your payroll and paperwork is done right and on time.

-         Marketing services: ALM Direct Marketing Solutions offers free evaluations of your sales and recommends marketing that fits your budget and achieves the desired results.  We are in the business of connecting companies to customers and can help you reach new customers or communicate more effectively with the ones you already have.

We will also be prepared to discuss these areas and more during our time together!  We hope that you’ll have time to join us for an informative, idea-filled session that will help you achieve your goals and dreams.  Space is limited, so please RSVP today by calling 217-241-4597 or emailing us at taxpartner@gmail.com

If you are interested in learning more about how we might help you, but can’t attend any of the seminars listed above, please call us to schedule a free personal consultation at a time that is convenient for you!  We’d be happy to help!

Why we had second thoughts and finally said no to refund anticipation loans.

A client came into the office last week and wanted us to prepare his taxes again this year.  Good news.  However, he said he didn't want to go the refund anticipation loan route like he did last year.  Why?  He couldn't cash his refund loan check.  So the allure of getting his money quicker...approximately seven days...after paying a hefty bank fee, turned into a real problem.

"Nobody would cash my check without paying an additional fee" he said.  " So I finally deposited the money into my bank and waited five business days until they released the funds.  I wasn't really ahead of the game.  I lost money."

Refund anticipation loans (RAL) are bank loans secured by taxpayer's refunds.  They are marketed to moderate and low income consumers, those who we believe can least afford it.  They have proven to be huge source of revenue to the largest tax preparation firms in American. Hundreds of millions of dollars for H & R Block.  Never popular with consumer groups, the IRS, or state regulators because of their high costs, refund anticipation loans are generally filed by those taxpayers elgible to received earned income credit. Earned income credit is designed to assist low income working families by supplementing their refund based on family size and income earned.  The Consumer Federation of America estimated that various fees and charges drained $2.1 billion from the earned income credit program last year. 

This year the refund anticipation loan world became even dicier.

Panic struck the tax preparation industry on Christmas Eve 2009 after it was revealed that just weeks away from the beginning of the tax season rush, California-based Pacific Capital Bancorp, a major player in the lucrative refund anticipation loan business, was ordered by federal banking regulators to halt its RAL origination services.


The announcement was a shock to the tax prep industry, which includes big names such as Jackson-Hewitt Tax Service, Liberty Tax and H&R Block, all of which rely on RALs for a healthy percentage of their income.
A troubled bank these days isn't catastrophic except for the fact that fewer than a handful of banks fund RALs, loans sold to customers in advance of their government tax refund. Such a small number of RAL originators leaves little wiggle room should one find itself in trouble, as is the case with PCB's Santa Barbara Bank & Trust.


Now we learn that Illinois, Gov. Pat Quinn has barred currency-exchange stores from offering the loans without state permission. Is more regulation on the way?

This month, the IRS said  it would review RAL practices and its own Debt Indicator program and refund delivery service as part of its efforts to protect taxpayers using tax-prep services.  

And finally we learn that some lenders are now saying it will take two to three weeks before some taxpayers to get their refund anticipation loan because of new scrutiny by the remaining lenders.  So what is the point when you can get your refund in about ten days electronically filing your tax return with a direct deposit.

So does this mean an end to the refund anticipation loan program?

Probably.  But the current recession has seen somewhat of a resurgence in popularity of the program with some tax preparers.

We weighed the possibility of losing some billing by opting out of the program this year versus the long term client good will by saying don't spend all that money to get your refund back this year.  We landed on the side of our clients.

January 24, 2010 Client Update

We have finished virtually all W-2 forms and have turned our attention to 1099 forms for your non-employees.  Remember that all forms have to be mailed no later than February 16, 2010 to avoid any IRS inquiry. We will mail any necessary copies to the IRS and the Social Security Administration on your behalf. We do strive for perfection but occasionally we miss.  Please let us know if there is a problem or any questions about your employees W-2 forms.

Interestingly the IRS changed the deadline last year for mailing 1099 brokerage and retirement accounts to February 15th or later if the 15th falls on a weekend.  Congress in 2008 changed the law, requiring brokers to include cost basis statements for securities sold when they send their annual 1099 forms to their customers. This later due date has frustrated some clients expecting refunds when it came time to file their taxes, no 1099, no filing, delayed refund.

Speaking of delays, the Illinois Department of Revenue has yet to release, as of today, the final version of its 1040 and schedules to mail/file your 2009 income tax return.  Although you can efile the Illinois return, you cannot mail it in. Unbelievable.     

If the IRS Commissioner has his way, Congress may legislatively fix the Internal Revenue Code to match the modern-day use of employer-provided cell phones. Currently, when an employee engages in personal use of an employer-provided cell phone, the employer is required to report that personal usage as income to the employee. For many employers, such as you and me, distinguishing between business and personal use is so burdensome that they simply have neglected to comply with the law; risking the consequences if audited by the IRS.

However, IRS Commissioner Doug Shulman recently issued an announcement declaring that the current law is so obsolete, the IRS has asked Congress to enact legislation so that the personal use of employer-provided cell phones will no longer be taxable. Importantly, the Commissioner’s announcement does not suggest that the IRS will not enforce the current law.  Indeed, last June, the IRS issued Notice 2009-46 seeking comments on three suggested approaches for determining the amount of personal cell phone usage to be included in employee income:  minimal personal use requiring an employee to keep track, safe harbor percentage method, perhaps 75 %, or statistical sampling of the employee's usage.    It should be mentioned that the aforementioned Notice and its three methodologies was not well-received by the general public, let alone employers and their tax advisers.

Remember the due date for your corporate return is March 15, 2010.  If you do not want us to apply for an automatic six month extension for filing your income tax return, please let us know.

More than three years ago I got into a rather heated argument with our Yellow Page advertising rep. It was my prediction then, that the internet would soon replace the Yellow pages.

From our August 2008 client newsletter:

For 20 years I firmly believed that no other medium could provide us with a larger amount of motivated buyers than the Yellow Pages.

However, things were changing and changing rather quickly.

Back in 2005, we discovered that instead of looking for us in the Yellow Pages paper book, our customers were looking for us on the internet.

We soon discovered that the advantages of a web site are overwhelming.

I told our Yellow Page rep to think of a web site as a super Yellow Page ad.  The trends in 2005 showed that usage of the paper Yellow pages was dropping.  More and more, we found that our  potential clients were forsaking those heavy Yellow Pages paper books for Google and other search engines. It's easy and fast to do a search for "travel agents Springfield, Illinois "  We bravely cut our expensive Yellow Page advertising to just a listing and never looked back.

Of course our Yellow Page ad rep disagreed, at the time predicting our demise.

But just a year later, our Yellow Page ad rep returned with a proposal that included guess what?

A new online internet local search proposal....by R H Donnelley targeting the growth in internet searches for local businesses.  Of course there was a cost involved.  For several hundred dollars R H Donnelley would give us a local listing in their online Yellow Pages and help place us on Google’s local listing.

And here is where I let the cat out of the bag.

There is no reason to pay R H Donnelley to get a Yellow Pages internet listing.  Google and Yahoo will give a listing free on their web sites.

From the John Jantsch’s Duct Tape Marketing Blog:

    For local type businesses, those that just want business from around town, the Internet is becoming more and more important. As the search engines move to implement their local search strategies, local businesses will need to understand the playing field

    Here’s a tip: The Internet Is the New Phone Book and you better make sure you get listed.

    Today, Google announced the Google Local Business Center, a free tool for businesses to easily add or update their business listings that appear in Google Local. The Google Local Business Center is available for all businesses in the United States regardless of whether or not their listing already exists in Google Local.

    To access this new feature, businesses must visit the Google Local Business Center and request that their Google Local business listing be added or edited. After completing the listing information, businesses will receive a mailer from Google with a PIN. The PIN is used to confirm their addition or requested changes to the Google Local business listing. Various information about a business can be added or edited including address, phone number, hours of operation, type of cuisine, payment accepted, website and email.

    This one is a no brainer - get listed! - They have even integrated their very cool mapping system into the listings and hint that they may use the data when someone executes a “local looking search” like - Accountant Kansas City. This kind of search is already starting to include some directory type listings. (2)
  
Let me repeat Google and Yahoo will let you list your business free.

Let us say you were a savvy business owner who wants to list your travel agency on Google.  After logging into Google Maps Local Business, creating a free account, and answering a few questions, Google will give you the following listing free:








Click on this link to see our Planet Travel free listing

Along with creating a correct listing in Google Maps, each time you edit or create a new listing the information gets added to a central database that shares the business contact information with other Google services. These include Froogle shopping, Google Earth and Google Web search to name a few. All mobile Google products also interface with this database, so you are actually increasing your exposure through many other Google products and services.   Google will even keep track of how many people viewed your web page and where they came from. (By the way 57 people looked at our listing last week) Something that the Yellow Pages can never do.  They will even attach a coupon to your ad, let you add photographs or videos to your ad page.  Again, this service is absolutely free.

If you have questions or need some guidance on how to implement this free (alright I am guilty of mentioning that this service is free too much ) no - brainer call our office we are here to help.

Over-looked tax deductions .... including 16 new ones for this year

From Kiplinger.com:



Every year, the IRS dutifully reports the most common blunders that taxpayers make on their returns. And every year, at or near the top of the “oops” list is forgetting to enter their Social Security number at the top of the tax form -- or making a mistake when entering those nine digits.

No doubt about it: The opportunity to make mistakes is almost unlimited, and missed deductions can be the most costly. About 46 million of us itemize on our 1040s -- claiming nearly $1 trillion worth of deductions. That’s right: $1,000,000,000,000, a number rarely spoken out loud until Congress started debating economic-stimulus plans to combat the Great Recession.

Another 85 million taxpayers claim more than a half-trillion dollars’ worth using standard deductions—and some of you who take the easy way out probably shortchange yourselves. (If you turned 65 in 2009, remember that you now deserve a bigger standard deduction than the younger folks.)
Yes, friends, tax time is a dangerous time. It’s all too easy to miss a trick and pay too much. Years ago, the fellow who ran the IRS at the time told Kiplinger's Personal Finance magazine that he figured millions of taxpayers overpaid their taxes every year by overlooking just one of the money-savers listed below:

Click the above link to read more.

The 7 Things Most Taxpayers Get Wrong When Filing Their Tax Return With The IRS

Dear Mr. or Ms. Taxpayer, Congress has passed some very confusing new tax laws which go into effect THIS tax season! By changing everything around, Congress (and the IRS) have made filing an accurate tax return almost impossible for regular hard-working taxpayers like you!
But that's NOT the worst part!
New complicated tax laws including the NEW EARNED INCOME CREDIT change
could stop many people from receiving tax refunds from Uncle Sam which are supposed to be theirs!
And you can rest assured no IRS agent is going to show up on your door step offering to give you an extra check for the tax refund money you didn't know how to claim. (But if you owe THEM money ... now that's a different story. They'll be on you like white on rice!)
Oh, and just for the record, many tax experts are predicting an increase in IRS audits after the April 15th deadline. Why? Well, since there are so many new tax law changes affecting this year's tax filing season, the IRS computer "check system" is expected to pick up a higher number of "red flagged" tax returns.
And with an increase in "incorrectly" filed tax returns comes the assurance of more nasty IRS letters and the possibility of those seemingly "never-ending" IRS agents following up for years. (Boy you want to talk about bureaucratic red tape ... I've seen a simple mistake on a 1040 tax return never get resolved for close to two years just because the person could never talk to the same IRS agent!)
Obviously, dealing with the IRS alone (especially THIS tax season) is NOT recommended if you want real peace of mind once you've filed your tax return.
So Read The Following SECRETS Before Filing Your Tax Return This Year!

The 7 Things Most Taxpayers Get Wrong When Filing Their Tax Return With The IRS:

1. THE NUMBERS DON'T ADD UP! Yes, it's true. Few people know (and those folks probably wouldn't tell you) the biggest problem the IRS has when checking tax returns is the math is wrong! And 99% of those incorrectly calculated tax returns are prepared by hand. (Dirty Little Secret: Make sure you file your tax return on a computer generated tax form. Just this alone will reduce many possible mistakes, increase the efficiency with which your tax return gets accepted by the IRS and drastically lower your chances of an IRS audit compared to a tax return prepared manually.)
   
   
2. SOCIAL SECURITY NUMBER(S) ARE WRONG! You'd think something as simple as inputting a social security number onto a tax form would be the easy part of preparing a tax return. Well, while it is easy, it still is the second biggest problem area the IRS has. If your S.S. #, your spouses' and even your kids' nine digit number is off just by one number, the whole tax return is going to get rejected by the IRS which will delay your refund. (* SECRET: Taxpayers NOT electronically filing their tax return leave themselves vulnerable to IRS employees making input errors on their tax return.) *This is especially frustrating when you have been careful to get all of the social security numbers correct on your tax return and seasonal, part-time "key punch" operator makes a mistake which causes unwanted delays on the acceptance of your tax return.
   
   
3. INCORRECT CLAIMING OF DEPENDENTS! There are so many stipulations for who or whom you may or may not claim as a dependent that it is only logical this is a major problem area for people trying to file their taxes with the IRS. SECRET: A common dependent not claimed by families is an elderly parent living in the home. Another common dependent problem happens when a person tries to claim head of household, but does so with unqualified dependents. No matter what your situation is, re- review the "Personal Exemptions & Dependent" sections in your federal tax booklet.
   
   CAUTION: The IRS will throw the book at you for getting this one wrong. Many dishonest people try and defraud the government in this area.
   
   
4. EARNED INCOME CREDIT VIOLATIONS! This is another major area where fraud takes place in our tax system and the IRS is cracking down more than ever! If you think you qualify for the EIC, read over this section carefully in your IRS booklet (especially since the IRS will randomly pull an extra 12,000 EIC tax returns for review this year.) SECRET: There are so many NEW LEGAL ways to receive some form of the EIC credit, many people file their taxes unknowingly and leave hundreds (and sometimes thousands) of dollars unclaimed that's supposed to be theirs! Don't make that mistake!
5. NEW CHILD TAX CREDITS! These forms are extremely complicated and most taxpayers will need a computer program just to get the math calculations correct. SECRET: Unlike most tax breaks which only adjust your income before computing the tax, this is a credit which reduces your TAX LIABILITY dollar for dollar!
6. REDUCE CHANCES OF IRS AUDIT! This question gets asked a lot, "How can I reduce my chances of being audited by the IRS?" SECRET: Electronically file your tax return instead of mailing it. EF returns get accepted by the IRS the next day and are rarely ever reviewed again by IRS agents for audit.
   
   Little Known "Scary"Fact: One of the biggest reasons for audits is because of mistakes made by the IRS. In 1998, the IRS received over 85 million paper tax returns. The IRS hires employees for the tax season at minimum wage. Those underpaid employees must wade through stacks of returns. It's difficult to scan returns into computers because people fill them out on manual typewriters, with ballpoint pens, even in crayon. Teams of IRS workers tear open millions of tax returns, sort the paper and checks into slots at worn, wooden tables and then stamp a number on each by hand and then manually enter sensitive financial information into computers. The average warehouse is spread over seven acres. Is there any wonder the IRS will make a mistake. (Sounds like another "Florida Recount" situation to me.)
   
   With electronic filing there's no chance of a mistaken keystroke or a return placed in the wrong wooden slot. Nobody has to try and read a taxpayer's handwriting in crayon. Heck, if you owe money you can authorize the bank to electronically take the money from your checking account which eliminates them loosing the check! ELECTRONIC FILING SHOULD BE THE ONLY WAY YOU FILE YOUR RETURN!
7. FILE BY THE APRIL 15TH DEADLINE EVEN IF YOU CAN'T PAY! For all you people who will be writing a check to Uncle Sam this year, please remember this. SECRET: Filing your taxes on time (and at least paying a $1) is better than filing a tax return AFTER April 15th! You will still owe money to the federal government, but at least you will not have to pay the LATE-FILING PENALTY!

Here's how you can "NEVER Have To Worry About Your Taxes Again!!" All you have to do is ... Choose Us To Professionally Prepare And Electronically File Your Taxes This Year!

As a taxpayer, you need to protect yourself from filing an "incorrect" tax return and missing out on the BIGGEST POSSIBLE REFUND available from Uncle Sam.

Why we are your better choice for tax preparation

1. Fair fees
2. Experience 28 years
   
3. The safe warm feeling.
4. IRS representation
5. We are not a big firm with a big advertising budget.
6. Passionate about our clients and our business.
7. Free electronic filing.
8. Early filing discount.
9. Enrolled to practice with the Internal Revenue Service.
10. We guarantee our work.  Accuracy and reliablilty
11. Open year round.
12. Saving you tax dollars.
13. Open weekends and evenings.
14. Credit cards accepted.