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Location: Westland, Michigan, United States

Graduate of Walsh Institute Of Accountancy (Now Walsh College) Michigan in 1959. Retired in 1987, but still active in the profession **World War II Veteran (Pacific) **PHONE 734-261-1979 **E-MAIL -cpabakem01@yahoo.com **(Domain Name CPASENSE Registered) **Mentioned in the Journal of Accountancy, SmartPros, Tax Prof Blog, CPA2BIZ, CPA Journal, AccountingWEB, CPATrendlines & More **Search Accounting Blogs: http://www.blognetnews.com/accounting (Includes cpasense)**TOPICS - FINANCE - FEDERAL & MICHIGAN TAXES ** Making Sense Of Your Finance & Taxes

Saturday, January 31, 2009

For Many Investors, Year-End Forms To Arrive Later

WASHINGTON ― Many investors will receive their year-end tax statements later than in past years, but these forms are likely to be more accurate, according to the Internal Revenue Service.A new law, enacted last fall, changed the deadline from Jan. 31 to Feb. 15, when brokers, including brokerage firms, mutual fund companies and barter exchanges, must furnish year-end Forms 1099-B to their customers. Where a broker furnishes these forms by mail, this means that the forms must be mailed, not received by that date.

Because Feb. 15 falls on Sunday in 2009, and Monday, Feb. 16 is a federal holiday, the deadline is Feb. 17 this year. In addition, the IRS said earlier this month that for calendar-year 2008 reporting, the Feb. 17 deadline also applies to other tax information that brokers report to their customers, including such items as interest and dividends, on a combined year-end statement.

This change is designed to make it easier for brokers to provide investors with accurate year-end statements on stock sales and other transactions. Inaccurate year-end statements that have to be corrected later often force investors to file amended individual returns.

In its 2006 annual report, the Information Returns Program Advisory Committee (IRPAC) recommended changing this deadline from Jan. 31 to Feb. 15. The report noted that, “Form 1099 reporting has become very complex over recent years. As a result, many broker dealers are currently experiencing 20% amended Forms 1099. There is insufficient time to make the necessary changes in January, verify the data, print the forms and mail them by Jan. 31.” IRPAC is a federal advisory committee that advises the IRS on issues related to information returns, such as Forms 1099.

The long-standing Jan. 31 deadline for providing other year-end forms remains unchanged. However, because Jan. 31 falls on Saturday, employers, banks and other businesses have until Monday, Feb. 2 to mail or otherwise make available various 2008 year-end tax statements. This includes forms in the W-2, 1098 and 1099 series.

Taxpayers can make the tax-filing process faster and easier and often avoid follow-up correspondence with the IRS by carefully reviewing all year-end statements. Make sure all social security numbers are correct, check income and withholding amounts and contact the issuer promptly, if any mistakes are found.

Related Item:

  • Notice 2009-11, Brokers May Furnish Certain Composite Annual Tax Reporting Statements by February 17, 2009

Tuesday, January 27, 2009

H&R Block Tax Advertising

MONTGOMERY, AL—January 26, 2009 --As many of our members are well aware, for the past few years, H&R Block has sometimes engaged in aggressive advertising promoting their respective tax services at the expense of the CPA profession. When this occurs, the AICPA and the ASCPA respond accordingly.....,........

Alabama Society of CPAs

Monday, January 26, 2009

4 Things Every Taxpayer Should Know About Claiming The Recovery Rebate Credit On 2008 Tax Return

Four Tips to Help Taxpayers Avoid Errors On the Recovery Rebate Credit

Most taxpayers who received the economic stimulus payment last year will not be able to claim the Recovery Rebate Credit on their 2008 federal income tax returns. A small number of taxpayers who did not receive the full economic stimulus payment last year may be eligible to claim the Recovery Rebate Credit on their 2008 federal income tax return. Figuring the Recovery Rebate Credit incorrectly or entering inaccurate information will delay the processing of your tax return and any refund due.

Below are the four things every taxpayer should know about this one-time credit, which is related to last year’s Economic Stimulus Payment:........

Internal Revenue Service

Wednesday, January 21, 2009

Report Bartering Income

Bartering is the trading of one product or service for another. Usually there is no exchange of cash. It is the most ancient form of commerce. Any business owner or professional who has a product or service to offer can barter.........

Internal Revenue Service

Earned Income Tax Credit (EITC) - Should I Claim It?

Find out if you are eligible for the Earned Income Tax Credit or EITC by answering some questions and providing basic income information. The program also assists you in determining your correct filing status, determining whether your child(ren) meets the tests for a qualifying child, and estimating the amount of credit you may receive........

Internal Revenue Service

Counting Down To Tax Day: Business Tax Completion Checklist

By Jean Murray, About.com

Business tax deductions - IRS form 1120, IRS form 1120s, IRS Schedule C, IRS form 1065

First, Have You Used the Correct Tax Return for Your Business?.............

Tuesday, January 20, 2009

Michigan Business Act - (As Amended January 2009)

EHT & Co. PC

Monday, January 19, 2009

IRS Free-File Opens With New Features To Expand Taxpayer Access, Speed Refunds

In addition, most taxpayers qualify for free tax preparation offered through Free File on IRS.gov. Regardless of income level, taxpayers who are comfortable with filling out paper tax forms and who don't need extra assistance can use the IRS's new Free File Fillable Forms. These new online versions of paper tax forms that can be e-filed are available for the first time by visiting the IRS.gov Free File site............

Internal Revenue Service

MACPA - Protecting Michigan Citizens During Tax Season

A Powerpoint Presentation

In an effort to protect underserved Michigan taxpayers from fraudulent tax return preparers, the Michigan Association of CPAs is re-launching its Taxpayer Awareness campaign. Arming taxpayers with knowledge will help them avoid unscrupulous tax preparers, according to members of the Association’s Taxpayer Awareness Task Force.........

Michigan Association of CPAs

IRS Favorably Clarifies New February 17 Deadline For Broker 1099 Delivery

Why Investors May Not Receive Their Form 1099 Information from Their Brokers Until February 17 This Year.................

Wolters Kluwer

Friday, January 16, 2009

Owe The IRS A Prior Year Return?

Don’t delay; file your prior year return now! The failure to file a federal tax return can be costly — whether you end up owing more or missing out on a refund.

If you owe taxes, a delay in filing may result in a failure-to-file penalty and interest charges. The longer you delay, the larger these charges grow..........
________________

Prior Year Forms, Instructions and Publications:
http://tinyurl.com/54088

Internal Revenue Service

Thursday, January 15, 2009

Metro Detroit Tax Bills Tumble

But assessment drops pinch municipal budgets

As home values across Metro Detroit continued their free-fall last year, a record number of homeowners this year may get what they have long wished for: a tax break.

But for municipalities and counties, the falling assessments mean less tax revenue and another year of figuring out what to cut from already lean budgets.........

The Detroit News

Wednesday, January 14, 2009

AICPA: Speeches / Powerpoint Presentations

For Individuals:
Tax Saving Tips for 2008
College Planning: Easing the Financial Burden
How To Afford A Long, Happy Retirement
Setting Your Financial Records Straight
360 Degrees of Financial Success

For Businesses:
Securing Your Business Financing
Ten Ways to Protect Your Business
Selecting the Right Structure for Your Business

What Records To Keep

You probably already keep records in your daily routine. This includes keeping receipts for purchases and recording information in your checkbook. Keeping these and other records will help you avoid headaches at tax time. Good recordkeeping will help you remember the various transactions you made during the year, which in turn may make filing your return a less taxing experience.

Records help you document the deductions you’ve claimed on your return. You’ll need this documentation should the IRS select your return for examination. Normally, tax records should be kept for three years, but some documents — such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property — should be kept longer.

In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, however, you should keep any and all documents that may have an impact on your federal tax return:.,.........

Internal Revenue Service

IRS May Expand Enforcement During Tax Processing

Washington, D.C. (January 13, 2009) A new report by the Government Accountability Office on last tax-filing season suggests the Internal Revenue Service beef up its enforcement efforts while it processes returns.........

WebCPA Staff

IRS Gives Advice On Choosing Tax Preparers

Washington, D.C. (January 14, 2009) The Internal Revenue Service has offered taxpayers tips on choosing tax preparers as part of the agency's efforts to combat tax preparer fraud..........

WebCPA Staff

Tuesday, January 13, 2009

E-File And Other Electronic Options For 2009

Most taxpayers and tax preparers this year will use IRS e-file to file their tax returns or get extensions of time to file. During this process, they will not have to send a single scrap of paper to the Internal Revenue Service.

The IRS expects the total number of individual tax returns, both electronic and paper, to reach about 140 million in 2009. And it expects e-file returns to exceed last year’s record of nearly 90 million taxpayers.

E-filers enjoy these benefits:..............

Internal Revenue Service

5 Ways To Protect Your 401(k) If You're Laid Off

How to keep your nest egg intact even if your company goes under

Unexpected job loss can derail retirement plans in an instant. American employers shed 524,000 jobs in December, and 31 percent of employed adults ages 45 and up think it's likely that their job will be eliminated this year, according to a recent AARP survey. The good news is that if you do get laid off, you can still keep your retirement plan intact. Here's how to handle your 401(k) if you lose your job or your company goes under:.............

U.S. News

IRS Issues Regs To Safeguard Taxpayer Information

IRC Section 7216 (Effective January 1, 2009) prohibits anyone who is involved in the preparation of tax returns from knowingly or recklessly disclosing or using the tax-related information provided other than in connection with the preparation of such returns. Anyone who violates this provision may be subject to a fine or even imprisonment..............

American Institute of CPAs

IRS: Frequently Asked Questions http://tinyurl.com/8ghzwd

Sunday, January 11, 2009

IRS Recovery Rebate Credit Information Center

The recovery rebate credit is a one-time benefit for people who didn't receive the full economic stimulus payment last year and whose circumstances may have changed, making them eligible now for some or all of the unpaid portion.

Generally, a credit adds to the amount of your tax refund or lowers the amount of taxes owed. Therefore, the amount you receive for the recovery rebate credit will be included as part of your refund, as shown on your tax return...............

Internal Revenue Service

Friday, January 09, 2009

How Much Was My 2008 Stimulus Payment Home

Why Do I Need To Know This Amount?

Most people received the maximum Economic Stimulus Payment in 2008. However, some people may be eligible for a first time credit or for a larger payment than they were eligible for last year.........

Internal Revenue Service

How To Choose A Tax Preparer And Avoid Preparer Fraud

Return preparer fraud involves the preparation and filing of false income tax returns by preparers who claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients. Preparers may, for example, manipulate income figures to fraudulently obtain tax credits, such as the Earned Income Tax Credit.

In some situations, the client, or taxpayer, may not know of the false expenses, deductions, exemptions and/or credits shown on his or her tax return...........

Internal Revenue Service

What To Do If Your Wallet Is Stolen

You check your purse or pocket and discover the worst has happened--your wallet has been stolen. What should you do first? Your wallet contains not only your money but also credit cards, your driver’s license and other identification. If you find yourself in this situation, the Michigan Association of CPAs offers some advice.......

Michigan Association of CPAs

Wednesday, January 07, 2009

Nine Financial Resolutions For 2009

After a month of indulging on eggnog, holiday cookies, and other seasonal goodies, many Americans mark the New Year by making resolutions, often dealing with losing weight and living a healthier lifestyle. With the current economy, financial fitness is more likely to be your priority for 2009........

AccountingWeb

Tuesday, January 06, 2009

Five Smart Steps To Take If You're Laid Off

In a troubled economy, many companies are cutting back on jobs. But if you are laid off, there’s no need to panic, according to the Michigan Association of CPAs. Here are some strategies for keeping your finances in order even if you lose your job.......

Michigan Association of CPAs

How To Save On Gasoline Costs

The cost of fuel may have dropped since its surge last year, but saving money on gasoline is always a top priority for consumers. While you may have no control over prices at the pump, the Michigan Association of CPAs advises that there are steps you can take to be a smarter gas consumer............

Michigan Association of CPAs

Keeping Good Tax Records

In a tax emergency, would you be ready? Well–organized records not only help you prepare your tax return, but they also help you answer questions if your return is selected for examination or prepare a response if you are billed for additional tax.

Fortunately, you don’t have to keep all tax records around forever. Normally, tax records should be kept for three years, but some documents — such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property — should be kept longer...........

Internal Revenue Service

Michigan Property Tax Assessment Limitation Dies In The Senate

After collecting dust the last three months in the House Clerk's office, HJR III finally found its way to the Senate where it was officially left to die. HRJ III would have allowed Michigan voters in 2010 to stop annual property tax increases on land that decreased in value. If on the ballot, it's widely accepted that the measure would have passed, particularly after a year like 2008, when many homeowners were forced to cough up more in taxes for their depreciating property..........

Ed Kisscorni CPA Blog

Friday, January 02, 2009

I'm Bernard Madoff -- I'm Telling All, Right Here - Trust Me

Real confessions from me, Bernie Madoff, the guy that made off with tens of millions of dollars for myself and my family by diverting BILLIONS in the biggest Ponzi Scheme in History! And, Thanks to all my friends at the SEC! ...........

Bernard Madoff

Thursday, January 01, 2009

Tax Law Changes Reduce Taxes In 2009

Lawmakers have passed more than 100 new tax law changes that could help millions of individual taxpayers save money on their taxes this coming season........

By WebCPA staff