Wednesday, December 11, 2013

Year End Tax Tips from the IRS



For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz

Wednesday, November 20, 2013

Tax Checklist

This is to assist you in gathering your income tax information. Use it as a guide for information you need to provide.

GENERAL INFORMATION:

□ First, middle initial, and last names of taxpayers and dependents as written on the Social Security cards, and dates of birth for taxpayers and all dependents, especially new dependents.
□ Address (city, state, zip), telephone number, and e-mail address.
□ Marital Status: Single ___ Married ___ Head of Household ___ Separated ___
□ Number of Dependents: ___ Did any dependents have any income? Yes ___ No ___
□ Do all dependents live with you? Yes ___ No ___

TYPES OF INCOME AND TAX REPORTING FORMS:

□ Wages: All W-2's □ Income from Rentals: All 1099-MISC
□ Pensions/Retirements: 1099-R □ Business Income: All 1099-MISC & 1099-K
□ Social Security: SSA-1099 □ Farm Income
□ Bank Interest: 1099-INT □ Alimony Received: Total amount
□ Dividends: 1099-DIV □ Unemployment: 1099-G
□ Commissions: 1099-MISC □ State Tax Refund: 1099-G
□ Tips and Gratuities □ Miscellaneous: Jury Duty, Gambling, Other
□ Sales of Stock, Mutual Funds: 1099-B

BUSINESS INCOME & EXPENSE ITEMS:
This list is not all encompassing. If you don’t see an expense listed below, ask.

Total (Gross) Income Advertising Auto: Parking &Tolls
Business Phone Expense Cell Phone Expense Subcontractors
Commissions Paid Insurance Interest Paid
General Office Expense Rent/Lease Fees Paid Legal or Professional Fees
Repairs Cleaning/Maintenance Dues & Publications
Equipment/Supplies Tools License Fees/Taxes Paid
Utilities Education Expense Association Dues
Bank/Credit Card Fees Postage Meals/Entertainment
Business Miles & Total Miles Asset Purchases Hotel/Travel Expense

ADDITIONAL ITEMS FOR RENTAL PROPERTIES:

Keys Condo/PUD Fees Management Fees
Mortgage Statements Yard Work Termite Treatment Expense
Utilities Mileage/Travel Other

DEDUCTIONS/CREDITS TO INCOME:

Self-employed Health Insurance IRAs /Keogh/SEPs Retirement Saver’s Credit
Medical Savings Account Teacher Expenses Adoption Expenses
Penalty on Early Withdrawal of Savings Moving Expenses
American Opportunity/Lifetime Learning/Student Loan Interest/Education Expenses

* Total Alimony Paid: Must have name and Social Security number of recipient, and amount paid.
* Child Care/Day Care Credit: Must have name, address, Social Security number or EIN of provider, and amount paid per child.

ESTIMATED TAXES PAID:

Date of payment and amount paid for each Federal and State quarterly tax estimate.

ITEMIZED DEDUCTIONS:

MEDICAL
Medical & Dental bills Prescriptions Glasses/Contact Lenses
Out-of-pocket expenses Medical miles Lab fees
Hearing Aids Medical/dental/long term care insurance

TAXES
Prior year state tax paid City/local tax Sales tax
Real estate tax Personal property tax Other

CHARITABLE CONTRIBUTIONS
Church Boy/Girl Scouts United Way/CFC
March of Dimes American Heart Easter Seals
Red Cross MDA/MS YWCA/YMCA
Salvation Army FoodBank Payroll deductions
Out-of-pocket Volunteer Expenses Charitable miles Other

Date of donation, list and Fair Market Value for each donation of household goods and clothing items donated to a Charitable Organizations.

For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz

Wednesday, November 6, 2013

Fast Track Settlement Program Now Available Nationwide

Fast Track Settlement Program Now Available Nationwide; Time-Saving Option Helps Small Businesses Under Audit
IR-2013-88, Nov. 6, 2013

WASHINGTON — The Internal Revenue Service today announced the nationwide rollout of a streamlined program designed to enable small businesses under audit to more quickly settle their differences with the IRS.

The Fast Track Settlement (FTS) program is designed to help small businesses and self-employed individuals who are under examination by the Small Business/Self Employed (SB/SE) Division of the IRS. Modeled on a similar program long available to large and mid-size businesses (those with more than $10 million in assets), FTS uses alternative dispute resolution techniques to help taxpayers save time and avoid a formal administrative appeal or lengthy litigation. As a result, audit issues can usually be resolved within 60 days, rather than months or years. Plus, taxpayers choosing this option lose none of their rights because they still have the right to appeal even if the FTS process is unsuccessful.

Jointly administered by SB/SE and the IRS Appeals office, FTS is designed to expedite case resolution. Under FTS, taxpayers under examination with issues in dispute work directly with IRS representatives from SB/SE’s Examination Division and Appeals to resolve those issues, with the Appeals representative typically serving as mediator.

The taxpayer or the IRS examination representative may initiate Fast Track for eligible cases, usually before a 30-day letter is issued. The goal is to complete cases within 60 days of acceptance of the application in Appeals.

SB/SE originally launched FTS as a pilot program in September 2006. For more information on taking advantage of the Fast Track Settlement program, please view the short FTS video. Additional background is available on IRS.gov on the Alternative Dispute Resolution webpage and in IRS Announcement 2011-05.

For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz

Thursday, September 12, 2013

Fourth Quarter Interest Rates 2013

Last week the IRS announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2013. According the the announcement the rates will be:

* three (3) percent for overpayments [two (2) percent in the case of a corporation]
* three (3) percent for underpayments
* five (5) percent for large corporate underpayments
* one-half (0.5) percent for the portion of the corporate overpayment exceeding $10,000.

To read full article CLICK HERE

For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz

Thursday, June 13, 2013

Limited Liability Company Classification

A Limited Liability Company (LLC) is a business structure allowed by state statute. Every state has its own regulations so it’s important to be aware of state requirements.

For example, in some states any business that requires special licensing may not be an LLC. Banks and insurance companies are typically prohibited from operating as an LLC. Also there are special rules for foreign LLCs.

Owners of an LLC are known as members. In most states there are no restrictions regarding ownership so members may be individuals, corporations, foreign entities and other LLCs.

Classification

Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a “disregarded entity”). Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation. And an LLC with only one member is treated as an entity disregarded as separate from it’s owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it files Form 8832 and affirmatively elects to be treated as a corporation.

Effective Date of Election

An LLC that does not want to accept its default federal tax classification, or that wishes to change its classification, uses Form 8832, Entity Classification Election, to elect how it will be classified for federal tax purposes. Generally, an election specifying an LLC’s classification cannot take effect more that 75 days prior to the date the election is filed, nor can it take effect later than 12 month after the date the election is filed. An LLC may be eligible for late election relief in certain circumstances.

See form 8832 general instructions for more information.
http://www.irs.gov/pub/irs-pdf/f8832.pdf

For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz

Wednesday, May 29, 2013

What is an Enrolled Agent?

An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee.

Enrolled agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.

Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.

At Elite Bookkeeping & Tax Services we currently have two enrolled agents (EAs)- Sara Zaro and Robyn Yelton. They both have many years of experience handling corporate and personal tax returns for multiple states and they also hold titles as Certified Bookkeepers (CBs).

Read more about Certified Bookkeepers below.
http://elite.homestead.com/certifications.html

For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz

Wednesday, May 8, 2013

IRS Audits and Record Keeping

When the IRS conducts an audit on a Corporation, the agent will ask for the corporate record book. The Agent will review organizational documents, meeting minutes, stock ledger and resolutions.

If these documents are not kept current, the IRS can determine that you are running your business as a Sole Proprietor and change the taxation rules for your business. This could have a large tax impact on the owners of the business as some of the tax deductions taken as a corporation are not allowed as a sole proprietor.

This could result in higher personal income tax along with self employment tax before penalties and interest are added, which add up quickly. In some cases thousands of dollars have been owed by the owners because of poor record keeping of the corporation.

Corporate record keeping is just as important as filing the tax return, preparing the necessary minutes and resolutions annually makes the task relatively simple.

To obtain a Corporate Record Book or for assistance updating your records contact our office.

For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz

Wednesday, April 3, 2013

IRS Released Dirty Dozen Tax Scams for 2013

The Internal Revenue Service recently 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.

The Dirty Dozen listing, compiled by the IRS each year, lists a variety of common scams taxpayers can encounter at any point during the year. But many of these schemes peak during filing season as people prepare their tax returns.

"This tax season, the IRS has stepped up its efforts to protect taxpayers from a wide range of schemes, including moving aggressively to combat identity theft and refund fraud," said IRS Acting Commissioner Steven T. Miller. "The Dirty Dozen list shows that scams come in many forms during filing season. Don't let a scam artist steal from you or talk you into doing something you will regret later."

Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice (DOJ) to shutdown scams and prosecute the criminals behind them.


IRS Releases the Dirty Dozen Tax Scams for 2013

For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz

Wednesday, March 6, 2013

Winter 2013 Statistics of Income

The Internal Revenue Service today announced that the winter 2013 issue of the Statistics of Income Bulletin is available at IRS.gov. The winter 2013 issue features preliminary data from more than 145 million individual income tax returns for tax year 2011.

The Statistics of Income (SOI) Division produces the SOI Bulletin on a quarterly basis. Articles included in the publication provide the most recent data available from various tax and information returns filed by U.S. taxpayers.

Read more at http://www.irs.gov/uac/Winter-2013-Statistics-of-Income-Bulletin-Now-Available

For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz

Thursday, February 14, 2013

About Our Services

In addition to having Certified Bookkeepers we also have Enrolled Agents to assist you. Call us any time if you have any questions. Toll free (800) 416-3820.



For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz

Wednesday, February 13, 2013

1099 vs. W-2: What You Need to Know

Whenever a business starts there is always the question of how the people that provide services for the business will be paid. Will those services be performed by employees or will independent contractors be used?

Before the business can determine how to treat payments they need to know and make clear the business relationship. It is important to establish this relationship because an employee has taxes withheld, social security and medicare matched by the employer, unemployment insurance paid, workers compensation insurance paid and often benefits provided. An independent contractor just gets paid. It is a big expense difference.

To determine whether an individual is an employee or and independent contractor, the relationship of the business and worker must be examined. It comes down to does the business have control over what and how a job will be done or do they just control the results of the job. The determination falls into three categories: behavior control, financial control, and type of relationship.

Behavioral Control

Employees are generally subject to instructions about when, where, and how to work. The employer controls when and where the work is performed and what hours the person will be at the job. The person is told what tools and equipment to use, who else can be hired to assist with the work and where to purchase supplies and services. They are told what work is to be performed by a specific individual and what order or sequence to follow. Employees also may be required to receive training by the employer.

Independent Contractors can be hired to do a certain job in a certain place and be completed by a certain time. However, how the job is done is up to the contractor. When the work is performed, what equipment is used, who is hired to assist and where materials and supplies are purchased are up to the Independent Contractor. They also obtain and pay for their own training.

Financial Control

An employee is generally guaranteed a regular wage amount for an hourly, weekly or other period of time, even if the wage or salary is connected with a commission. They may be paid whether work is being performed or not. An employee generally does not have an investment in the company unless there are stock options available. They usually have any expenses they incur for things such as travel, phone, or equipment reimbursed.

An Independent Contractor is not reimbursed for any expenses. They generally have a business of their own or a significant investment in the facilities and equipment used to perform the work. An Independent Contractor is free to offer services to the general public and can take on jobs for other companies or individuals. They generally advertise their services and maintain a home office or visible business location. They generally get hired and paid by the job, usually a flat fee. Although some jobs can be billed hourly. An Independent Contractor can make a profit or loss on the job.

Type of Relationship

An Employee generally signs a employee contract. The employee is generally provided benefits such as insurance, pension plan, vacation and sick pay. Employee's are engaged for an indefinite period of time. They perform activities that are a regular daily part of the business. They fill out an IRS W-4 form that tells the employer how much taxes to withhold. They are not free to do business for other companies and in fact some companies have penalties if they do.

Independent Contractors have job by job contracts or for specific project or periods of time that state they are responsible for their own taxes. They are not provided with any benefits. They fill out an IRS W-9 form telling the IRS that no taxes are required to be withheld.

It is important to determine what kind of relationship from the beginning of your business. If you treat an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that person. Also, if you pay an individual as an Independent Contractor, they do not qualify for unemployment of workers compensation so if they try to collect it, you will want to be ready to verify they are not an employee.


For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz

Friday, January 25, 2013

Help Your Bottom Line- Tap Into Human Nature

What company does not want to help their bottom line? Often one of our best resources is right under our nose. Read this helpful post by Betsy Kosier, President of Interaction Alliance.

BUSINESS ACHIEVEMENT CENTER BLOG: Tap Into Human Nature: Contributed by Betsy Kosier, MA JD President/Owner of Interaction Alliance Connecting People, Process & Purpose We all know that one of...

For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz

Thursday, January 24, 2013

Frequently Asked Questions

Below is a list of the most frequently asked questions regarding our services. If you have any additional questions, feel free to call our us at any time. We're here to help your business succeed.

1. What do I did when I hire my first employee?

Your company will need to apply for a State Unemployment account, the Nevada Modified Business Tax, as well as make sure you have workman’s compensation coverage in force. We can assist you with these applications.

2. How do I know whether to pay someone as an employee or a sub-contractor?

The IRS has issued a list of rules to be reviewed before you can classify someone as a contractor. Contact our office for assistance with these rules. Read more about it here.

3. Should my company have payroll?

A C Corporation or S Corporation will most likely have payroll. An LLC or Partnership will only have payroll if they hire employees. We are glad to review the details regarding this issue with you as every business has different circumstances.

4. How many hours will you spend on my account?

This can be a difficult question to answer because every business has a different number of transactions. Currently we are able to complete the bookkeeping tasks at half the time the business owner spends, as we do not have interruptions a business owner has when trying to complete these tasks. We will gladly sit down with you and review a month’s worth of bank statements and give you a formal estimate of time to be spent.

5. What expenses can I or should I be deducting?

Any business expense incurred by a business activity most likely can be deducted. For a detailed list contact our office as each business will have different deductions. There are also expenses that are limited and we will want to review those with you as well.

6. What do you need from me to set up the accounting system?

Usually we ask for the bank statements, check registers and business credit card statements. We will meet with clients on a monthly or quarterly basis to gather this information. Once financial statements are completed we will review the statements with them to help them understand how their business is doing financially.

7. For bill paying services, how often do you pay bills?

Checks are issued twice per week (Tuesdays & Fridays). With this service we will reconcile the bank statement and provide monthly reports to the client.

8. How do I set up my new business?

We can assist you with understanding all of the ways you can organize and run your business. Whether it be with a formal entity or a sole proprietorship, we can help you understand the differences in operations. We can also assist you with organization of your new entity with the State.

9. Do you come to our office?

Yes, but we do charge a travel fee. Most of our client’s work is completed in our office with the ease of online services.

10. Will you complete my personal tax return?

Yes, we will complete personal tax returns for our clients

Recommended article Protect Yourself from Your Small Business

For IRS information visit http://www.irs.gov.

Additional note: Every business should have a team of experts that include a Tax Advisor, Attorney, Insurance Broker/Agent and a Financial Advisor.

For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz

Tuesday, January 8, 2013

IRS Plans Jan. 30 Tax Season Opening for 1040 Filers

Here's an important news release by the IRS regarding the opening of tax season. Per the article following the January tax law changes made by by Congress under the American Taxpayer Relief Act (ACTRA, the IRS plans to open the 2013 filing season and begin processing individual tax returns on January 30th.

http://www.irs.gov/uac/Newsroom/IRS-Plans-Jan.-30-Tax-Season-Opening-For-1040-Filers


For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz