by Leif Jensen | Feb 11, 2012 | General |
The IRS has added an additional hoop for tax preparer to jump through this year. They insist in wanting to know if self-employeds, farmers, landlords, partnerships, regular corporations and S firms who made payments that must be reported on 1099s are reported. If so,...
by Leif Jensen | Feb 11, 2012 | General |
There has been a lot of discussion recently about the potential threats to the designation “Certified Public Accountant” (CPA). The IRS, in an attempt to identify all who are preparing any and all tax returns for a fee, has implemented a program that requires everyone...
by Leif Jensen | Jan 24, 2012 | General |
2011 ended up with a U6 unemployment rate of 15.2% The U6 unemployment rate counts not only people without work seeking full-time employment (the more familiar U-3 rate), but also counts “marginally attached workers and those working part-time for economic reasons.”...
by Leif Jensen | Jan 24, 2012 | General |
The audit rate for individuals held steady in 2011 at 1.11%. That is one out of every 90 returns. The number of exams actually fell slightly. The audit rate remained the same because the number of returns filed also dropped (non-filers? Is there any follow-up?)....
by Leif Jensen | Jan 24, 2012 | General |
The most recent statistics available from the IRS is FY2009. This show that the bottom 50% of all taxpayers, half of the country paid only 2.25% of all of the taxes collected. This consisted of those whose Adjusted Gross Income (AGI) was less than $32,396. So that...
by Leif Jensen | Jan 12, 2012 | General |
I just saw an ad for a national tax return preparation company. They were offering a free review of your past returns for an accuracy check. Now I personally find this hysterical, because of the fact that every, and I mean every return from this company that I have...
by Leif Jensen | Jan 8, 2012 | General |
Our wonderful lawmakers in Washington failed to extend many popular tax breaks beyond 2011! Gone for the moment are write-offs for state sales taxes, college tuition and up to $250 of teachers’ classroom supplies. We have in place the higher AMT exemptions and the...
by Leif Jensen | Jan 8, 2012 | General |
Since late December and early January I have been meeting with clients to line up everything for the preparation of 2011’s 1099’s. It is looking like there are more for each client then ever before. I also expect this trend to continue. With the costs of everything...
by Leif Jensen | Jan 8, 2012 | General |
The Social Security wage base increases to $110,100 for 2012. This is a $3,300 increase above the 2011 level and the first increase since 2009. Obviously Congress thinks the is fixed now. For the average employee the Social Security tax rate is currently at 4.2%...
by Leif Jensen | Jan 8, 2012 | General |
MARRIEDS: If taxable income is The tax is Not more than $17,400 10% of taxable income Over $17,400 but not more than $70,700 $1,740.00 + 15% of excess over $17,400 Over $70,700 but not more than $142,700 ...
by Leif Jensen | Jan 8, 2012 | General |
The estate tax exemption for 2012 rises to $5,120,000, thanks to inflation, this is definitely a boon to small business owners. The tax rate stays at 35%. The annual gift tax exclusion remains at $13,000 per donee. The special estate tax valuation of real estate is...
by Leif Jensen | Jan 8, 2012 | General |
IR-2012-4, Jan. 6, 2012 WASHINGTON — The Internal Revenue Service today released a new set of tax gap estimates for tax year 2006. The tax gap is defined as the amount of tax liability faced by taxpayers that is not paid on time. The new tax gap estimate represents...
by Leif Jensen | Dec 31, 2011 | General |
I have to post this as an Urban Myth since I cannot find documentation to substantiate. But it is a potential fun fact and has lead to lively discussions with several copier technicians. Can you still copy US currency with a color copier? I know that this has been...
by Leif Jensen | Dec 26, 2011 | General |
With the holiday’s drawing ever closer, the time is coming for the ever popular New Year’s Resolutions! What do you have planned for 2012? Was 2011 everything you wanted, happy with your job, pay and bonus? Or is it finally time to find your passion and start that...
by Leif Jensen | Dec 19, 2011 | General |
I was recently asked to write a quick guest article for Michael Erickson PC’s Newsletter. Below is a copy of the article: It is that time of year again… Think about your Business and Marketing Plans Guest article by Leif Jensen Typically I suggest that a...
by Leif Jensen | Dec 19, 2011 | General |
Did you ever wonder what happens to those Powers of Attorney when your CPA retires, dies, closes their practice, fire you as a client or you fire them? If nothing is done the government keeps acting upon your initial request. If possible the practitioner should...
by Leif Jensen | Dec 18, 2011 | General |
CPA’s since the very beginning keep their clients information confidential. This is also enforced by many state laws. CPA’s take great steps to ensure the safety of client’s information. I have installed a security system in my office and where I stall files off...
by Leif Jensen | Dec 18, 2011 | General |
According to IRC §1411 for tax years beginning January 1, 2013 certain trust and estates will be subject to an additional 3.8% on investment income if their MAGI exceeds the following thresholds. The Medicare contribution tax for trusts and estates applies if the...
by Leif Jensen | Dec 18, 2011 | General |
IRC§152(e) clarified the meaning of custody for dependency purposes. As usual this is not always a good thing; in general typically a custodial parent can sign a written release for the noncustodial parent may claim the child. Now if the child is (court) emancipated...
by Leif Jensen | Dec 14, 2011 | General |
The various deadlines for retirement plans, IRAs and Coverdells are noted below. Generally, employer plans must be established (applications executed) by Dec. 31 to get a 2011 deduction. This includes Keoghs (these still exist?). For SEPs, you have until the due date...
