Tax Preparation, Personal and Small Business Finance
Don’t forget to pay your estimated tax payments on or before June 17th. If you need our assistance in calculating how much you should pay please give us a call. If you need an estimated tax voucher please click on following link.
2nd Qtr 2013 Estimated Voucher
House of Representatives Ways and Means Chairman Dave Camp and Senate Finance Committee Chairman Max Baucus have teamed up to launch TaxReform.gov, a new website dedicated to obtaining input from the American public on United States tax reform. Developed in partnership with the Joint Committee on Taxation, TaxReform.gov will serve as a platform for the American public to weigh in on tax reform. Visitors to the website can learn about tax reform and submit ideas on how to improve the tax code. The site has been built around three sections: Why reform the Tax Code? What’s already underway? Share your story and ideas. Mr Camp commented: “The tax code is littered with special interest provisions that Washington has put in over the last 27 years. It is time to go line-by-line through the tax code and clean it up.
This tax season again brought an active conversation regarding business structures and taxes. This is a good time to think about the issue; to ask the right questions.
The current hot topic for small businesses seems to be the “S Corporation.” The question I am hearing is: “How do I convert my small business to an “S Corporation”?
I think a better question is: “Should I convert my small business to an S Corporation?”
The answer to that question will give you the answer to: “Will my conversion to an S Corp put more after tax money in my pocket?”
There can certainly be advantages for certain businesses but S Corp election is not a “one size fits all” solution. S Corps come with disadvantages as well and you should think them through before changing. Some of them are:
The tax savings and solidity of the S-Corp also come with a price and you should know what it will be for your business. Don’t rush into a new and more complex business structure on vague promises of lower taxes. It is not that simple! The more information you have, the better!!
Now that tax season is coming to an end:
If you receive a letter from the IRS or DRS let us know, don’t assume they are right.
The IRS will never send you an email. If you receive an email from the IRS do not respond and do not give any financial information.
And…thank you for your continued support! It is greatly appreciated.
Don’t miss the deadline for contributing to your 2012 IRA. You have until April 15, 2013 to make this contribution.
Your SEP and individual 401k contribution is different. You have up until October 15, 2013 to make this 2012 contribution if you have filed an extension.
First quarter estimated taxes for 2013 are also due on or before Monday, April 15, 2013.
As always, contact us if you have questions.
If we have not already received your 2012 tax documents, time is running out! Please note, if we do not receive all of your information by March 31st we cannot guarantee that your return will be filed by the April 15th tax deadline.
If you need an extension of time to file please contact our office by April 7th.
The IRS has warned people to be vigilant for “scammers”. The most common scam is false emails and the IRS reminds everyone that they do not send messages through e-mail, texts, or social media. Most contact is done through mail. If you have questions with what you may think is a scam, feel free to call our office.
Small businesses sometimes barter to get products or services they need. Bartering is the trading of one product or service for another. Usually there is no exchange of cash. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services.
The fair market value of property or services received through a barter is taxable income. Both parties must report as income the value of the goods and services received in the exchange.
Here are four facts about bartering:
1. Barter exchanges. A barter exchange is an organized marketplace where members barter products or services. Some exchanges operate out of an office and others over the internet
2. Bartering income. Barter and trade dollars are the same as real dollars for tax reporting purposes. If you barter, you must report on your tax return the fair market value of the products or services you received.
3. Tax implications. Bartering is taxable in the year it occurs. The tax rules may vary based on the type of bartering that takes place.
4. Reporting rules. How you report bartering varies depending on which form of bartering takes place. Generally, if you are in a trade or business you report bartering income on Form 1040, Schedule C, Profit or Loss from Business.
If you want to address this further…we are here to help!
If you believe you are due a refund we are advising our clients to get their information in to us as soon as possible. With the “sequestration” looming, across –the-board federal spending cuts will fall on the IRS during this tax season. The IRS is formulating a plan should sequestration occur. By Friday, just one third of the anticipated 149 million federal tax returns were processed and seven out of 10 filers are due a refund, said IRS spokesman David Stewart. All IRS activities at the 110,000-employee agency are on the table, he said. He did add that it’s too early to conclude that sequestration will slow return processing.
But, from our perspective…why delay your refund?
The IRS has stepped up its efforts to collect tax debts from OJ Simpson. Two different tax liens $179,435.07 for 2007 to 2010, and $17,015,99 for 2011 have been issued on Mr. Simpson, however, because he is in prison serving 33 years for kidnapping and armed robbery, the IRS has been unable to recoup any of its money. Mr. Simpson despite being behind bars still receives an NFL pension of $19,000 a month, although due to legal obligations that money cannot be tapped.
“I am so pleased to have the opportunity to tell anyone, from friend to various groups or associations, of how much I value my association with MJW EA. After years of dealing with various smart, but cold, and hurried tax accountants—always … [Read More...]
