by Leif Jensen | Apr 8, 2012 | General |
The states are continuing to eye the marijuana industry (heroin second, crack third, cocaine fourth) as an additional source of new revenue. This, despite the fact that there are federal laws in place against marijuana possession. In November, Colorado voters may...
by Leif Jensen | Apr 8, 2012 | General |
I love a mystery. I have a client that is using a quote from G.K. Chesterton and I asked if he liked his work., unfortunately the client liked the quote but was unfamiliar with the author of Father Brown, The Napoleon of Notting Hill and the Club of Queer Trades. But...
by Leif Jensen | Apr 8, 2012 | General |
In an ongoing search for state revenue under every rock and crackpot idea. Some now believe that they can tax cloud computing services, no matter where they’re located? Utah is the first to try this approach, so others are likely to follow. A recent tax code change...
by Leif Jensen | Apr 8, 2012 | General |
In the following case a taxpayer decided to disregard a 1099-DIV. The investor owned stock in several publicly traded Canadian companies and received the actual dividends. Although the 1099-DIV’s were received by the taxpayer from each corporation saying the payouts...
by Leif Jensen | Mar 31, 2012 | General |
Whenever I meet with clients that want to start up a business together I suggest when they are forming the partnership/operations/organization agreement that they plan the divorce along with the marriage. I always then get that look. You know the one that I am...
by Leif Jensen | Mar 31, 2012 | General |
This tax season is definitely different then those in the recent past. Everyone seems content with their financial advisors, insurance agents, bankers, attorneys and thankfully their CPA. What they are no happy with is their property taxes. There is a lot of anger...
by Leif Jensen | Mar 31, 2012 | General |
The recent reductions in the IRS’ budget are negatively impacting taxpayer service. All are experiencing longer wait times to talk to a live person on the phone, processing delays with correspondence and more time standing in line at Taxpayer Assistance Centers. Also...
by Leif Jensen | Mar 31, 2012 | General |
In the past I have seen this from time to time. But, this year I seem to be seeing a few more employees with W-2’S that also received 1099’s from their employers. I know that the statisticians have been saying that this is where businesses are moving to and that last...
by Leif Jensen | Mar 31, 2012 | General |
The last couple of years I seem to be taking on clients that are a it behind in the filing of their tax returns. This is not a real problem for me, I prepare the returns for them to file. You cannot electronically file old returns. But something new has happened in...
by Leif Jensen | Mar 17, 2012 | General |
The IRS has changed the auto depreciation for autos that are put into service during 2012. There is a $100 increase from 2011, the 2012 first-year ceiling is $11,160 for new cars and $3,160 for used cars. The second- and third-year caps are $5,100 and $3,050. After...
by Leif Jensen | Mar 17, 2012 | General |
Have you ever wondered what happens to an owner who has less the 51% and is kicked out of the business? You were right it can be your worst nightmare. There has been a recent court case on this matter. A locked-out partner still has to report his share of partnership...
by Leif Jensen | Mar 17, 2012 | General |
Those of us who are unemployed and who are unable to pay their 2011 taxes on time get a break. The IRS will allow them six extra months to pay the taxes due without penalty. Those who qualify are wage earners who were jobless at least 30 consecutive days in 2011 or...
by Leif Jensen | Mar 17, 2012 | General |
It seems the IRS keeps issuing refunds to those who should never have them, and holding up those who should. They made improper payments of refundable tax credits. In 2011, the agency figures that it wrongly refunded up to $17 billion in earned income credits. Many...
by Leif Jensen | Mar 17, 2012 | General |
Apparently the first group of unenrolled preparers have passed the minimum competency test, scoring 70% or better on the test. This test is 120 multiple choice/true false open book exam on the 1040 only, that allows three hours to complete. Those who pass a tax...
by Leif Jensen | Mar 17, 2012 | General |
Winning the lottery can be a huge once in a life time event. Unfortunately many have little to no plan on how to properly deal this event. Here there was some planning but not nearly enough. In a recent court case a lotto winner who generously gave part of her prize...
by Leif Jensen | Mar 6, 2012 | General |
Have you purchase an e-book form Amazon? Do you know that you don’t own that book? This is a surprise to most when they find out. An e-book is definitely different from a real physical book. Most people believe that they do own it, even if there is nothing to...
by Leif Jensen | Mar 3, 2012 | General |
Good news for the those that sign the checks. Having the authority to write checks won’t always make you liable for back payroll taxes, as this case shows. A high-paid employee (non-officer) who signed more than 1,700 checks for a firm, including paychecks. During...
by Leif Jensen | Mar 3, 2012 | General |
IRS continues to go after S corporations (they do hate these entities) that pay low salaries to owners. Many owners of S companies take too low a salary and pass the bulk of the profits through to their own returns free of Social Security and Medicare taxes (see...
by Leif Jensen | Mar 3, 2012 | General |
Illinois is an unusual place. Yes, yes we all know that 4 of our last 9 governors ended up in prison, our credit rating and schools are in the toilet and the politicians only seem to know how to tax and spend and increase taxes and spend more… But also in Illinois is...
by Leif Jensen | Mar 3, 2012 | General |
I was having a discussion with a client that I took over a couple of years ago, he utilizes QuickBooks for his accounting. His taxes were recorded on a cash basis, and I agreed with this methodology. But QuickBooks is factory set to Accrual Basis, so wen we were...
