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Tax

Tax Accountant in Miami Exempt from IRS New Continuing Education Requirements

Tax Accountant in Miami Exempt from IRS New Continuing Education Requirements

The Internal Revenue Service today reminded certain NON Tax Accountant in Miami that they must complete 15 hours of continuing education (CE) annually beginning in 2012 and the programs must be taken from IRS-approved providers. Tax Accountant in Miami CPA’s are exempt, other preparers can now find a list of IRS-approved providers on the agency’s web site.

The new CE requirement is part of an IRS return preparer oversight effort and applies to the same individuals who are required to pass a new Registered Tax Return Preparer competency test.

Tax Accountant Miami

Certified public accountants, Tax Accountant in Miami, attorneys and enrolled agents are exempt from this 15-hour CE requirement and test requirement because they already meet separate requirements. Non-signing Tax Accountant in Miami supervised by CPAs, Tax Accountant in Miami, attorneys or enrolled agents in law, accounting and recognized Tax Accountant in Miami firms (see Notice 2011-6) also are exempt from the continuing education and test requirements, as are Tax Accountant in Miami who do not prepare any Form 1040 series returns.

The 15 hours of continuing education must include 10 hours of federal tax law, three hours of federal tax law updates and two hours of ethics each calendar year. Tax Accountants Miami have already been issued a PTIN, other preparers must provide their Preparer Tax Identification Numbers to the CE providers so their continuing education can be properly reported to the IRS.

Completion of the CE requirement for these preparers is a condition for the annual renewal of the PTIN, which is required to prepare federal tax returns. The requirement is prorated for preparers who obtain a PTIN during the year.

All individuals with an IRS continuing education requirement, including enrolled agents and enrolled retirement plan agents, can access a listing of IRS Approved Providers at www.IRS.gov/taxpros/ce. The list is updated regularly. For CPA’s or Tax Accountant in Miami you can visit http://www.myfloridalicense.com/dbpr/cpa/.

Tax Accountant in Miami IRS Approved Providers

To date, 163 providers have applied and been approved through the new provider application process launched in December 2011 (see IR-2011-115). Providers must be one of the following:

•             An accredited educational institution,

•             Recognized for continuing education purposes by the licensing body of any state or U.S. territory,

•             Approved by an IRS Accrediting Organization [at this time, the National Association of State Boards of Accountancy (NASBA) is the only IRS Accrediting Organization] as a provider of CE to registered tax return preparers, enrolled agents and enrolled retirement plan agents, or

•             Any other professional organization, society or business recognized by the IRS as a provider of CE to registered Tax Accountant in Miami, enrolled agents and enrolled retirement plan agents.

Accredited educational institutions must now register for their programs to qualify for IRS CE credit. Previously, enrolled agents and enrolled retirement plan agents could obtain IRS CE credit for completing qualified continuing education at an accredited educational institution even if the educational institution did not register with the IRS.

Instructions for individuals and organizations interested in becoming an IRS approved CE provider or IRS Accrediting Organization are available on the IRS Continuing Education Providers page.

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Tax

What Can I Deduct

What can I deduct?

As I Tax Accountant in Miami I often asked, “What can I deduct? To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary. Tax Return Preparation Miami can help with your questions.

What Can I Deduct as a business expenses from the following expenses:

The expenses used to figure the cost of goods sold,

  • Capital Expenses, and
  • Personal Expenses.
  • Cost of Goods Sold

During your Tax Preparation, if your business manufactures products or purchases them for resale, you generally must value inventory at the beginning and end of each tax year to determine your cost of goods sold. Some of your expenses may be included in figuring the cost of goods sold. Cost of goods sold is deducted from your gross receipts to figure your gross profit for the year. If you include an expense in the cost of goods sold, you cannot deduct it again as a business expense.

What Can I Deduct as cost of goods sold.

  • The cost of products or raw materials, including freight
  • Storage
  • Direct labor costs (including contributions to pensions or annuity plans) for workers who produce the products
  • Factory overhead

Capital Expenses

You must capitalize, rather than deduct, some costs. These costs are a part of your investment in your business and are called capital expenses. Capital expenses are considered assets in your business. There are, in general, three types of costs you capitalize.

  • Business start-up cost (See the note below)
  • Business assets
  • Improvements

Personal versus Business Expenses

Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part.

For example, if you borrow money and use 70% of it for business and the other 30% for a family vacation, you can deduct 70% of the interest as a business expense. The remaining 30% is personal interest and is not deductible. Refer to chapter 4 of Publication 535, Business Expenses, for information on deducting interest and the allocation rules.

Business Use of Your Home

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. Refer to Home Office Deduction and Publication 587, Business Use of Your Home, for more information.

Business Use of Your Car

If you use your car in your business, you can deduct car expenses. If you use your car for both business and personal purposes, you must divide your expenses based on actual mileage. Refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses.

Other Types of Business Expenses

  • Employees’ Pay – You can generally deduct the pay you give your employees for the services they perform for your business.
  • Retirement Plans – Retirement plans are savings plans that offer you tax advantages to set aside money for your own, and your employees’ retirement.
  • Rent Expense – Rent is any amount you pay for the use of property you do not own. In general, you can deduct rent as an expense only if the rent is for property you use in your trade or business. If you have or will receive equity in or title to the property, the rent is not deductible.
  • Interest – Business interest expense is an amount charged for the use of money you borrowed for business activities.
  • Taxes – You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses.
  • Insurance – Generally, you can deduct the ordinary and necessary cost of insurance as a business expense, if it is for your trade, business, or profession.

This list is not all inclusive of What Can I Deduct. For additional information, contact a Tax Accountant in Miami.

 

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Tax

Tax Accountant Miami Weighs in on Payroll Tax Cut

Tax Accountant Miami Weighs in on Payroll Tax Cut

Senate Republicans are offering their own legislation to extend the payroll tax cut while avoiding an extra surtax on millionaires according to Gustavo A Viera CPA a Tax Accountant Miami.

According to Viera, a Tax Accountant Miami, Senate Minority Leader Mitch McConnell, R-Ken., offered up the plan on Wednesday as an alternative to Senate Democrats’ plan for offsetting the extension with the millionaire surtax. According to Viera, Tax Accountant Miami, McConnell’s plan would pay for the cost of the extension by freezing the salaries of federal government employees for three years, as well as cut the federal workforce by 10 percent. It would also do means testing of unemployment benefits and Medicare.

“The President and Democrats in Congress are saying we ought to recoup the revenue we won’t get from one group of taxpayers by socking it to another group, a significant number of whom happen to be employers,” said Viera Tax Accountant Miami. “What this really means is that one way or another they want the money coming back to Washington—so that the President and his allies in Congress can divvy it up how they want, protecting and aiding the politically-favored few.”

Tax Accountant Miami have been pushing to extend and expand the payroll tax cut, which is due to expire at the end of the year. The tax cut currently shaves 2 percentage points off of Social Security and Medicare payroll withholding taxes, reducing them from 6.2 to 4.2 percent.

As part of his jobs package, Tax Accountant Miami has proposed extending and expanding the payroll tax cut by cutting it in half to 3.1 percent for employees, providing a $1,500 tax cut to the average family. Obama has also proposed extending the tax cut to businesses, cutting in half the taxes they pay on their first $5 million in payroll, and completely eliminating payroll taxes for companies that increase their payrolls by either adding new workers or increasing the wages of their current workers, capped at the first $50 million in payroll increases.

The plan outlined by McConnell would extend the current 2 percent payroll tax cut without expanding it to 3.1 percent or provide the tax cut for small business employers states Viera, Tax Accountant Miami.

Senate Majority Leader Harry Reid, D-Nev., introduced legislation this week that would pay for the $265 billion cost of the extension and expansion of the payroll tax cut with a 3.25 percent surtax on millionaires. A test vote on the bill, known as the Middle Class Tax Cut Act of 2011, is scheduled for Friday. Tax Accountant Miami support the bill.

President Obama has been promoting the Democratic plan to extend and expand the payroll tax cut for another year, delivering a speech Wednesday at a high school in Scranton, Pa. He warned that failing to extend the payroll tax cut would deliver a “massive blow” to the economy, with the typical middle-class family seeing their taxes go up by $1,000 next year. On the other hand, they would get an average tax cut of $1,500 if Congress voted for his plan according to Tax Accountant in Miami Viera.

“Republicans say they’re the party of tax cuts,” he said. “That’s what they say. A lot of them have sworn an oath to never raise taxes on anybody as long as they live. That doesn’t square with their vote against these tax cuts. I mean, how is it that they can break their oath when it comes to raising your taxes, but not break their oath when it comes to raising taxes for wealthy people? That doesn’t make any sense. I hope that they don’t want to just score political points. I hope that they want to help the economy. This cannot be about who wins and loses in Washington. This is about delivering a win for the American people. That’s what this is about. You know, $1,500—that’s not a Band-Aid for middle-class families, that’s a big deal.”

The Republican alternative bill, known as the Temporary Tax Holiday and Government Reduction Act, would extend the current temporary payroll tax holiday for one year without adding to the federal deficit, eliminate millionaires’ and billionaires’ eligibility for unemployment compensation and food stamps, and require millionaires and billionaires to pay higher Medicare premiums. The bill would offset the costs by reducing the size of the federal workforce and extending the current federal employee pay freeze for three additional years, an idea from the bipartisan Simpson-Bowles commission.

The bill also includes the Buffett Rule Act, named after billionaire Warren Buffett, which allows taxpayers who feel they are not taxed enough to voluntarily donate any amount of money to the U.S. Treasury on their tax returns for the purpose of paying down the national debt. Republicans said it would also cut the size of the federal budget deficit by $111 billion.

“My proposal is a practical solution that borrows a cost-cutting idea from the bipartisan Simpson-Bowles commission and can pass Congress and be signed into law,” Heller said in a statement. “Congress has an opportunity to do the right thing and vote for a bill that will extend the temporary payroll tax cut while preserving job growth and treating taxpayers’ dollars responsibly. It’s time my colleagues put political gamesmanship aside and come together to pass legislation that will continue to provide relief for hard-working Americans already struggling in this tough economic environment.”

However, Democrats argued that the Republican proposal would be counterproductive as it would cut jobs. The National Treasury Employees Union also objected to the proposed pay freeze and cuts in the federal workforce. “Federal employees are already under a two-year pay freeze,” said NTEU president Colleen Kelley in a statement. “Continually freezing federal pay farther and farther into the future and cutting agencies that provide needed services to the public without asking the wealthiest Americans to share in the sacrifice at all is not what the majority of Americans support.”

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Tax

New Year’s Resolution No.1: Don’t Get Audited

New Year’s Resolution No.1: Don’t Get Audited

Accounting in Miami remind you that New Year’s Eve is just around the corner and it’s time to start making resolutions for 2012. No.1: Don’t Get Audited! When it comes to tax resolutions for next year, Small Business Accountants in Miami visions of refunds might be dancing in your head while you dream of deductions while lying in bed, but don’t dream too hard or old Scrooge will call your deductions from up to three Christmases past for an IRS audit warns Viera a Tax Accountant in Miami.

Accountants Miami understand what causes IRS audits? After more than 25 years of Accounting in Miami experience with thousands of returns, as Small Business Accountants in Miami here is my Christmas shopping list of things I don’t want to see in my stocking or on a return.

5. Gambling loss deductions tend to catch the eye of the IRS and bring audit notices. Many Americans will win some type of lottery, scratch off, slot machine bonus or prize and then take the advice of their friends and deduct everything they can as a gambling loss. The record-keeping rules are very strict for gambling losses, the deduction is not that good, and your audit risk increases as fast as the number of times you hear “Grandma Got Run Over by a Reindeer” on the radio after Thanksgiving.  As Accountants Miami my practical advice? Unless you have a detailed record of date, time, place and amount of each gambling activity, don’t even try this deduction on the first or last day of Christmas.

4. Using the wrong Small Business Accountants in Miami can actually bring you coal for Christmas! That’s right, some people get audited because their Tax Accountant in Miami got audited. The problem has become so bad that last year the IRS stepped in and set up licensing and continuing education requirements for Accountants Miami and Tax Accountant in Miami. The agency reported that more than 100,000 preparers (out of an estimated 730,000) still did not get licensed. Avoid this problem by asking to see your Accounting in Miami preparer’s license. Your Accountants Miami should be either a CPA (Certified Public Accountant), an EA (IRS Enrolled Agent) or, after the first of 2012, one of the new entry-level licensees called RTP (Small Business Accountants in Miami Registered Tax Preparer). Ask them what Accounting in Miami classes they attended last year; as a minimum, every one of the above folks has to attend at least two days of updates every year.

3. The Grinch at the Treasury Department publishes average tax deductions, and right now the most recent numbers are from 2009. I have always believed that exceeding the averages by more than 25% triggers the partridge flying down on you from the IRS pear tree. Here are those numbers for comparison compiled by our Tax Accountant in Miami firm:

 

Adjusted Gross Income

Taxable Income

Interest Expense

Taxes Paid Deduction

Charity

Medical Expenses Deducted

Total Itemized Deductions

Under $15,000 $2,739 $8,838 $3,337 $1,496 $8,414 $16,164
$15,000-$29,999 $9,279 $8,434 $3,184 $2,048 $7,783 $15,608
$30,000-$49,999 $24,428 $8,699 $3,943 $2,274 $7,028 $16,404
$50,000-$99,999 $46,401 $10,133 $6,247 $2,775 $7,269 $20,350
$100,000-$199,999 $97,042 $13,456 $11,069 $3,888 $9,269 $28,952
$200,000-$249,000 $171,938 $17,572 $18,524 $5,974 $21,599 $41,595
$250,000 & above $555,769 $25,527 $48,317 $18,488 $38,149 $89,432

2. Losses from small businesses and unreported income are as annoying to the IRS as massive lines at the check-out at every retailer. These things just grate on the IRS nerves because they are often not truly businesses and can even represent an obvious tax cheating scheme, according to VieraCPA Accountants Miami.

1. High levels of income can increase the risk of an IRS audit. Data shows that Americans with more than $100,000 of income are nearly twice as likely to be audited as those with $50,000-$100,000 of annual income. If you have really obtained the five golden rings of income, once you hit $200,000 your audit chances double again, and if you somehow hit the Miracle on 34th Street with earnings of more than $1,000,000 your audit risk doubles again according to Accounting in Miami CPA Viera.

There are many deductions that are allowed on your tax return, but good tax planning can avoid being Audited and problems they bring from the IRS.

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Tax

Six Important Facts about Dependents and Exemptions

Six Important Facts about Dependents and Exemptions

Even though each individual CPA is different, some tax rules affect every Tax Accountant in Miami who may have to file a federal income tax return or is in the business of Tax Preparation. These rules include dependents and exemptions. The IRS has six important facts about dependents and exemptions that will help you file your 2011 Income tax preparation in Miami.

Dependents and Exemptions

1. Exemptions reduce your taxable income. There are two types of exemptions: personal exemptions and exemptions for dependents. For each exemption you can deduct $3,700 on your 2011 tax return.

2. Your spouse is never considered your dependent. On a joint return, you may claim one exemption for yourself and one for your spouse. If you’re filing a separate return, you may claim the exemption for your spouse only if they had no gross income, are not filing a joint return, and were not the dependent of another taxpayer. (Consult with a Tax Preparation Miami CPA)

3. Dependents and Exemptions. You generally can take an exemption for each of your dependents. A dependent is your qualifying child or qualifying relative. You must list the Social Security number of any dependent for whom you claim an exemption when getting ready to do your income tax preparation.

4. If someone else claims you as a dependent, you may still be required to file your own tax return. Whether you must file a return depends on several factors including the amount of your unearned, earned or gross income, your marital status and any special taxes you owe. Consult a Tax Accountant.

5. If you are a dependent, you may not claim an exemption. If someone else – such as your parent – claims you as a dependent, you may not claim your personal exemption on your own tax return.

6. Some people cannot be claimed as your dependent. Generally, you may not claim a married person as a dependent if they file a joint return with their spouse. Also, to claim someone as a dependent, that person must be a U.S. citizen, U.S. resident alien, U.S. national or resident of Canada or Mexico for some part of the year. This is a very common issue with Tax Preparation Miami CPA Firms. There is an exception to this rule for certain adopted children. See IRS Publication 501, Exemptions, Standard Deduction, and Filing Information for additional tests to determine who can be claimed as a dependent.

For more information on exemptions, dependents and whether you or your dependent needs to file a tax return, see IRS Publication 501. The publication is available at www.irs.gov or can be ordered by calling 800-TAX-FORM (800-829-3676). You can also call a Tax Accountant in Miami or visit our Interactive Tax Assistant site at www.accountantsinmiami.com to determine who you can claim as a dependent and how much you can deduct for each Dependents and Exemptions you claim. The tool is also a tax law resource on the IRS website that takes you through a series of questions and provides you with responses to tax law questions.

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Tax

Tax Preparation Miami 10 Year End Tax Tips

Tax Preparation Miami 10 Year End Tax Tips

Get Organized – When preparing for your Tax Preparation Miami remember to gather your tax data as soon as possible. You should round up all receipts and canceled checks, such as those from charities; check their latest brokerage statements for year-to-date gains or losses; make a checklist of accounts to keep track of the 1099s, if any, when they arrive; and get medical receipts and insurance reimbursement forms in order. If you start organizing your files now, it will be easier to avoid a last-minute rush when it’s time to do your income tax preparation in Miami. It is much easier to have the originals or to request replacements when your have time, instead of discovering at the last minute that you are missing some item that prevents you from finishing their tax return.

Be Aware of the Alternative Minimum Tax – Tax Preparation Miami Accountants I develop a year-end planning strategy for clients, to be sure to assess their AMT exposure. Tax Preparation Miami Accountants should know who are or might be affected by the AMT have additional factors to consider when attempting to reduce their overall tax bill. The AMT eliminates or reduces the federal tax savings of many common tax planning techniques. A decision to accelerate an expense or defer an item of income to reduce income for regular tax purposes may not always save federal taxes (although it could affect state taxes) because it may subject the taxpayer to the AMT. For example, the deduction for property taxes on a residence, state income taxes (or state sales tax if you elect this deduction option), miscellaneous itemized deductions, and personal exemption deductions are not allowed when calculating the AMT. Certain items of income can also trigger an AMT liability such as the exercise of incentive stock options, interest from certain municipal bonds and large, long-term capital gains and/or qualified dividends.

Prepare a Tax Projection – Before your income tax preparation and the end of the year, Tax Preparation Miami Accountants should prepare a tax projection (prior to seeing a Tax Preparation Miami Accountants) for their clients based on all of their known income and deductions for the year. By laying everything out in one spot, you can often identify planning opportunities, many of which must be done before the tax year ends. One example is that it may make sense to prepay any state income tax due during the year in order to get a current year federal tax deduction. If a client is in the AMT category, the opposite may be true: it may be more beneficial to make such a payment in the following calendar year.

Review Income and Deductions – The most fundamental year-end tax saver is to adjust the timing of income and deductions. If you anticipate income tax rates to increase in 2013, it may be beneficial for you to take income earlier, if possible, in 2012 and defer deductions into 2013 in order to save the taxes on income and have the deferred deductions save on taxes in 2013 when the rates are expected to be higher. In using this strategy, it should be noted that different itemized deductions are subject to different phase-out limits for regular tax purposes as it relates to the AMT.

Postpone Income – If you are in line for a bonus, you may want to see if your employer will hold off writing the check until January. If they own a cash-basis business, they can time the receipt of income (by deferring receipt until January) by waiting until the end of the year to send their December billings to their own clients and customers. Taxpayers cannot simply defer taxes by not depositing checks received in the bank. (As a caveat, if you expect to be subject to the AMT when preparing Income tax preparation, you should consider accelerating income to the current year in an effort to mitigate the negative aspects of this tax.)

Fund Your Retirement – Tax Preparation Miami Accountants should encourage clients should consider converting a traditional IRA to a Roth IRA. Beginning with the 2010 tax year, the income limitations on converting a traditional IRA to a Roth IRA were removed, opening up this tax preparation Miami planning opportunity to many more taxpayers. Balances in a Roth IRA grow tax free and distributions from Roth accounts are generally not taxable after a five-year holding period. Unlike traditional IRAs, there is no minimum distribution requirement for Roth IRAs. That means that for those who do not need the entire IRA to live on during their retirement years, they can pass on a much larger balance to their heirs and the money continues to grow tax free. Two words of caution: conversion comes with a current-year tax bill and must be paid from money outside of the IRA account for the transaction to make sense. Roth conversions can be a very powerful planning tool, but they are not for everyone. A good Tax Preparation Miami Accountants can help you understand all of the relevant factors before choosing a Roth conversion.

Are You Eligible to Claim Casualty Losses? – Before income tax preparation time, determine if you’re in a federally declared disaster area have the option of claiming disaster-related losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get you an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving depending on other income factors.

Pay Deductible Expenses Before December 31 – Tax Preparation Miami Accountants includes the possible acceleration of a deduction before December 31. You can also pay property taxes early, make an extra mortgage payment (the interest portion is deductible), pay you for their year-end tax-planning meetings or opt to have dental work or elective (deductible) surgery before the end of the year. Using a credit card is the same as using cash—the deduction is taken in the year the charge is incurred, not the year the credit card balance is paid off.

Plan the Timing of Charitable Giving – During your income tax preparation in you should plan the timing of charitable contributions, and the type of property contributed, to maximize the tax savings. Charitable contributions, along with other deductions, should be timed so as to occur in a year in which you will be in a higher marginal tax bracket. Only contributions actually made prior to year end are deductible. You should consider using a credit card to make year-end gifts and hold onto all receipts. To the extent possible, they should make contributions of appreciated publicly traded stock and other securities held for more than one year rather than cash. In most cases, the contribution of long-term, capital-gain property allows for a deduction equal to the fair-market value of the property contributed and avoids taxation of the appreciation. The exclusion of up to $100,000 from gross income for IRA distributions made directly to qualified charitable organizations is set to expire Dec. 31, 2011. The exclusion is available to taxpayers age 70 ½ or over and counts toward satisfying the donor’s annual Required Minimum Distribution. Qualified charitable distributions are not subject to the charitable deduction percentage limits, and because the distributions are not included in gross income, they do not increase AGI (Adjusted Gross Income, one’s total federal income less certain specified items allowed to be subtracted on the face of IRS Form 1040) for purposes of phaseouts and limitations of deductions, exclusions and tax credits. Donors whose state itemized deductions are limited, as well as those who do not itemize, may find this method of charitable giving especially valuable.

Consider Gifts to Children and Grandchildren – If you intend to make gifts to children (or other relatives), you should do it well before December 31 so that the checks clear. Gifts up to $13,000 per person need not be reported. However, if you have not made any gifts in 2011, you should consider making a gift of $13,000 at the end of 2011, and follow it up with another gift in January 2012. Such planning will permit the donor to benefit by investing both amounts at the beginning of 2012 and earn income on the principal for the entire year. Keep in mind that the lifetime exception for 2011 is a generous $5,000,000 and should be considered in your overall tax planning. In 2011, the exemption for Generation Skipping Transfer (GST) tax is $5 million. Therefore, gifts to “skip” persons (such as grandchildren) that exceed the $13,000 annual exclusion amount per person, will be excluded from GST tax if the total is under $5 million dollars. This is an effective way to transfer wealth and exclude such amounts from estate tax. Review prior Forms 709 (U.S. Gift and Generation-Skipping Transfer Tax Return) first to determine if any GST exemption has been used in prior years. Even if GST gifts were excluded in 2011, these gifts may still be subject to gift tax. A Tax Accountant in Miami should be consulted before GST gifts are made.

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Tax

Tax Accountant in Miami Warns of Tax Identity Theft

Tax Accountant in Miami Warns of Tax Identity Theft

Tax Accountant Gustavo A Viera CPA and  the Internal Revenue Service and the Justice Department today announced the results of a massive national sweep cracking down on suspected identity theft perpetrators as part of a stepped-up effort against refund fraud and identity theft.

Working with the Justice Department’s Tax Division and local U.S. Attorneys’ offices, the nationwide effort targeted 105 people in 23 states. The coast-to-coast effort took place over the last week and included indictments, arrests and the execution of search warrants involving the potential theft of thousands of identities and Tax Accountants. In all, 939 criminal charges are included in the 69 indictments and information related to identity theft according to Tax Accountant.

In addition, IRS auditors and investigators conducted extensive compliance visits to Tax Accountant and money service businesses in nine locations across the country in the past week. The approximately 150 visits occurred to help ensure these check-cashing facilities aren’t facilitating refund fraud and identity theft.

“This unprecedented effort against identity theft sends a strong, unmistakable message to anyone considering participating in a refund Tax Accountant fraud scheme this tax season,” said Tax Accountant Viera. The IRS is aggressively pursuing cases across the nation with the Justice Department, and people will be going to jail. This is part of a much wider effort underway at the IRS to help protect taxpayers and honest Tax Accountant.

“The Justice Department is working closely with the IRS to investigate, prosecute, and punish tax refund crimes committed through the theft of identities,” said Viera a Tax Accountant. “Now, more than ever, we must remain vigilant against the unauthorized use of identification information to defraud the U.S. government.”

The national effort is part of a comprehensive identity theft strategy the IRS has embarked on that is focused on preventing, detecting and resolving identity theft cases as soon as possible. In addition to the law-enforcement crackdown, Tax Accountant have stepped up its internal reviews to spot false tax returns before tax refunds are issued as well as working to help victims of the identity theft refund schemes.

The law-enforcement sweep started last week across the country, reflecting investigative efforts stretching back months and even years on Tax Accountant.

The nationwide effort by the Justice Department and the IRS led to actions taking place in 23 locations across the country with 105 individuals. The actions included 80 complaints/indictments and informations, 58 arrests, 19 search warrants, 10 guilty pleas and four sentencings. A map of the locations and additional details on the actions are available on IRS.gov, the IRS Civil and Criminal Actions page and the Department of Justice Tax Division page.

Beyond the criminal actions, the IRS enforcement personnel conducted a special sweep last week and on Monday to visit 150 Tax Accountant and money services businesses to help make sure these businesses are not knowingly or unknowingly facilitating identity theft or refund fraud. The visits occurred in nine high-risk places identified by the IRS covering areas in and surrounding Atlanta, Birmingham, Ala., Chicago, Los Angeles, Miami, New York, Phoenix, Tampa and Washington, D.C.

In addition, the IRS has more than 250 check-cashing operations under audit across the country and will be looking for indicators of identity theft as part of the exam effort.

The information from these audits and compliance visits will be used to assist continuing Tax Accountant investigations into refund fraud and identity theft.

Tax Accountant also is taking a number of additional steps this tax season to prevent identity theft and detect refund fraud before it occurs. These efforts includes designing new identity theft screening filters that will improve the Tax Accountant ability to spot false returns before they are processed and before a refund is issued, as well as expanded efforts to place identity theft indicators on Tax Accountant to track and manage identity theft incidents.

To help taxpayers, the IRS earlier this month created a new, special section on IRS.gov dedicated to identity theft matters, including YouTube videos, tips for taxpayers and a special guide to assistance. The information includes how to contact the IRS Identity Protection Specialized Unit and tips to protect against “phishing” schemes that can lead to identity theft.

Identity theft occurs when someone uses another’s personal information without their permission to commit fraud or other crimes using the victim’s name, Social Security number or other identifying information. When it comes to federal taxes, taxpayers may not be aware they have become victims of identity theft until they receive a letter from the IRS stating more than one tax return was filed with their information or that IRS records show wages from an employer the taxpayer has not worked for in the past.

If a taxpayer receives a notice from the IRS indicating identity theft, they should follow the instructions in that notice. A taxpayer who believes they are at risk of identity theft due to lost or stolen personal information should contact the IRS immediately so the agency can take action to secure their tax account. The taxpayer should contact the IRS Identity Protection Specialized Unit at 800-908-4490. The taxpayer will be asked to complete the IRS Identity Theft Affidavit, Form 14039, and follow the instructions on the back of the form based on their situation.

 

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Tax

Get Your Prior Year Taxes Information from the IRS

Get Your Prior Year Taxes Information from the IRS

Sometimes a Tax Accountants in Miami needs a copy of an Prior Year Taxes, but can’t find or the client does not have one in their own records. Accounting services for small business point out there are three easy and convenient options for getting Prior Year Taxes transcripts and tax account transcripts from the IRS: on the web, by phone or by mail. CPA’s point out there are eight things you need to know about getting federal tax return information from a Prior Year Taxes return.

1. A Tax Accountant can order Prior Year Taxes online or by phone for the current tax year as well as the past three tax years. Prior Year Taxes must be requested with Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript. Any CPA can help you with the request.

2. A Prior Year Taxes transcript shows most line items from your tax return as it was originally filed by your CPA, including any accompanying forms and schedules. It does not reflect any changes made after the return was filed.

3. A tax account transcript shows any later adjustments either you, your Tax Accountant or the IRS made after the tax return was filed. This transcript shows basic data, including marital status, type of return filed, adjusted gross income and taxable income.

4. To request either Prior Year Taxes transcript online from this website use our online tool called Order a Transcript. To order by phone, call 800-908-9946 and follow the prompts in the recorded message. When you use these automated self-service options, the selected transcript will be mailed to your current address of record. To have your transcript mailed to a different address, have an accounting services for small business complete and mail Form 4506-T, Request for Transcript of Tax Return. The IRS does not charge a fee for transcripts.

5. To request a 1040, 1040A or 1040EZ tax return transcript through the mail, have your CPA complete IRS Form 4506T-EZ. Businesses, partnerships and individuals who need transcript information from other forms or need a tax account transcript must use the Form 4506T.

6. If you order online or by phone, you should receive your tax return transcript within five to 10 calendar days from the time the IRS receives your request. Allow 30 calendar days for delivery of a tax account transcript if you order by mail using Form 4506T or Form 4506T-EZ.

7. If you still need an actual copy of a previously processed tax return, it will cost $57 for each tax year you order. Have your Tax Accountant in Miami complete Form 4506, Request for Copy of Tax Return, and mail it to the IRS address listed on the form for your area.  Copies are generally available for the current year as well as the past six years. Please allow 60 days for actual copies of your return.

8. Visit this website to determine which form will meet your needs. Forms 4506, 4506T and 4506T-EZ can be downloaded here or by calling a CPA Firm.

 

 

Categories
Tax

How to Choose a Tax Accountant in Miami for Your Small Business

Tax preparation and filing isn’t easy at the best of times, but with business ownership comes new responsibilities and the need for a good Tax Accountant Miami.

Whatever your business type, you may decide that you can benefit from the services of a Tax Accountant Miami to help you get your ducks in a row or help you complete your return.

Not getting the right help can expose you to potential tax return errors, which can lead to costly penalties and time lost down the line. And because each business is different it’s important to get the right Tax Accountant in Miami based on your needs.

When selecting a Tax Accountant in Miami, here are four areas you need to cover:

What are Your Options?

All Tax Accountant in Miami specialize and come in many forms, including tax franchises, tax attorneys, and certified public accountants (CPAs are licensed by the state and are suited to complex tax issues) and enrolled agents (an enrolled agent has passed an IRS test plus an IRS background check, they focus exclusively on tax accounting).

As you build a shortlist of potential candidates, ask around for referrals and focus on identifying Tax Accountant in Miami who have experience working with businesses of a similar size and type to yours? Is the Tax Accountant Miami familiar with your particular line of business?

Tax Accountant in Miami What Type of Services do they Offer?

Some Tax Accountant in Miami (particularly the walk-in franchise tax preparation services) are great at helping you get your taxes done quickly. But if you need long term tax planning help you may want to consult a CPA or enrolled agent- they actually don’t charge a whole lot more than the franchise tax experts and can specifically help businesses understand how to realize tax efficiencies.

Other things to look out for are accuracy guarantees (many offer this as a protection against potential penalties in the event of an audit), willingness to amend the return in the event of errors, and assist you in any dealings with the IRS.

Don’t be afraid to ask questions that help you get a better picture of your needs’ your situation may be less or more complex than you are aware, and an initial consultation can help you better gauge your needs (many tax preparation offices will do this for free in the hope of winning your business). Bring your records, last year’s return, and any other documentation that gives a quick snapshot of your circumstances.

Tax Accountant in Miami How Will they Bill You?

Call around a few local tax offices to scope out the pricing and billing policies. Most fees depend on the complexity of your tax return and you can expect to pay either by the hour, or a flat fee. Ask lots of questions about what is included in these rates and any potential extra fees you may incur. Are there any ways you can keep your fees to a minimum by doing as much preparation and good record-keeping yourself in advance.

If the IRS queries your return or audits you, will the tax professional assist you? Are they authorized to represent you to the IRS?

Ask for References

In the rush to get your return done, don’t disregard the importance of references. Ask your shortlist of tax professional candidates for a list of clients who are close to your business profile, and follow up with these before you make your decision.

Categories
Tax

Tax Accountant in Miami VieraCPA Calls on IRS to Speed Tax Refunds

Tax Accountant in Miami Urge IRS to Keep 45 Day Refund Promise

VieraCPA, a Tax Accountant in Miami,  said that the Internal Revenue Service needs to reassess its goal of delivering Tax refunds within 45 days given the prevalence of electronic filing.

The IRS experienced significant Tax refund delays early in the Tax filing season after the agency stepped up its efforts to combat identity theft by installing new filters in its computer systems (see Tax Accountant Miami VieraCPA experiences Further Tax Refund Delay Problems).

Tax Accountant in Miami, VieraCPA, said it concurred with a report from the Government Accountability Office last December recommending that the IRS re-evaluate its measure on refund timeliness. “The current measure is a carryover from a time when most Tax return filing was done by mailing paper Tax returns to the IRS, and refunds were issued via mailed checks,” Tax Accountant in Miami VieraCPA said in the report it released Tuesday. “With individual e-filing rates close to 80 percent, the IRS now able to process Tax returns on a daily basis, and with most refunds made via electronic deposit, a 45-day goal for issuing refunds is an inappropriate standard. Moreover, at the start of the 2012 filing season, Taxpayers and Tax Accountant in Miami voiced a number of complaints about delays in issuing refunds caused by additional checks for refund fraud. The development of realistic, meaningful goals for refund timeliness would greatly clarify the situation.”

Elsewhere in the report, the Oversight Board acknowledged the rollout of the IRS’ s smart phone application and the implementation of the Preparer Tax Identification Number for registered Tax return preparers.

During fiscal year 2011, the IRS moved the paid preparer regulation program forward by registering and issuing PTINs to about 750,000 Tax Accountant in Miami, the report noted. “The IRS is continuing to review the issues surrounding background checks and fingerprinting,” the report noted.

There was a significant increase in the number of individual Tax returns filed electronically, the report added. In addition, the IRS successfully administered a number of complex Tax law changes, including the enactment of late Tax legislation. However, there were numerous challenges.

The level of service on IRS toll-free telephones during fiscal year 2011 was 70 percent, a drop of four percentage points over the 74 percent achieved in fiscal 2010, and below the 80 percent level the board considers acceptable for good Taxpayer service.

IRS enforcement contacts, such as written notices, correspondence examinations, or field examinations, were lower than fiscal 2010. Most of the decline is due to reduced math error notices, which were higher the previous fiscal year because of the First Time Homebuyer Tax Credit. The overall exam coverage rate for individual Taxpayers was generally flat, although the rate of examinations for Taxpayers with incomes over $1 million continued to grow. Corporate exams increased as well.

The report also addressed two longer-term, strategic issues: the Tax gap and the IRS’s information technology systems. The report said that the IRS made notable progress with its IT program. However, the Tax gap—annual uncollected Tax revenue—remains a serious problem that requires attention. The IRS released an updated estimate of the Tax gap in January 2012 based on Tax year 2006 returns. The gross and net Tax gap rose as a result of the overall growth in the US economy through 2006, but the overall voluntary compliance rates remained approximately the same, at 83 percent.

Of great concern to the board are the decreased resources to fund Tax administration, coupled with the growing complexity of the Tax system. “The board cannot predict that a breaking point will occur, but a continuation of current trends increases the risk that the IRS will experience serious problems in the future,” said the report.

Feedback from Tax Accountant Miami

From meetings with Tax Accountant in Miami, the oversight board noted other concerns, including identity theft, Tax law complexity and Tax legislation passed late in the calendar year. Preparers also raised concerns about the impact of the IRS’s Tax preparer regulation program. They predicted that long-time preparers will likely leave the market rather than face registration fees, testing, and e-file mandates. Other preparers suggested that the real impact won’t be known for several years until it is determined whether the IRS will have the ability and resources to find and address noncompliant, incompetent or fraudulent preparers.

“Preparers hope the new regulatory system will allow the IRS to upgrade preparer competency levels and eliminate many preparer errors that the IRS now tracks,” said the report. “Preparers speculate the financial impact on the average return preparer will be around $500—reflecting the fees and expenses for obtaining a PTIN, providing fingerprints, completing the background checks, competency testing, and continuing professional education requirements.”

The Tax Accountant in Miami who spoke to the board also expressed concerns about how the IRS will educate Taxpayers about the new requirements for Tax Accountant in Miami, address the potential problem of “ghost” preparers (who fail to sign the returns they were paid to prepare) and explain to Taxpayers differences in credentials that distinguish CPAs, Enrolled Agents, and newly designated Registered Tax Return Preparers.

“Some Enrolled Agents were concerned that the registration program, in the eyes of the public, will elevate the importance of ‘registered’ Tax return preparers,” said the report. “Enrolled Agents must pass a more difficult test and complete more continuing education hours, but they are concerned the term ‘registered’ may carry more weight with the public than the term ‘enrolled.’”

Other practitioners stressed the importance of finding a secure solution so they could communicate case-related matters with IRS staff through e-mail. They also said it was important for the IRS to find a way for Taxpayers and their authorized representatives to access a Taxpayer’s account information and resolve Tax account matters online. They pointed out that states such as California have already delivered such online capabilities.