cpasense

Property Tax Bills To Fuel Appeals Across Metro Detroit

2009-03-04T12:17:00.002-05:00

Officials across region extend hearing schedules, expecting a wave of challenges to assessments.

Communities across Metro Detroit are bracing for a flood of property tax appeals from homeowners, and some residents haven't even received this year's assessments........

Detroit News.

After A Layoff. Carefully Pick What To Cash Out First

2009-02-28T11:28:00.005-05:00

Unless you got fired for driving your boss's car into a lake, there's nothing funny about losing your job. And unfortunately, 3.6 million people — more than the population of Chicago — have lost their jobs since the recession began in December 2007.

If you're suddenly unemployed, you have a number of unpleasant choices to make. Can you keep your car? Your house? If so, for how long?........

John Waggoner USA

2009-02-26T06:53:00.002-05:00

Support Greg Baker in his Pursuit of a Seat on President Obama’s Stimulus Review Board!

The $787 billion stimulus package has been signed into law. Now President Obama must choose who will monitor how this money is spent. Many people are frustrated with the lack of accountability which was demonstrated by the government regarding the first “bailout package”.

Now Obama has disclosed his vision of a “stimulus review board” which will include professionals from the private sector.

Logicalis is proud to support CFO, Greg Baker, for a seat on this very important committee.The combination of Mr. Baker’s skills and experience with Logicalis’ innovative cost-cutting solutions make him an excellent choice.

How Can You Show Your Support for Greg Baker?By filling out the petition at www.us.logicalis.com/obama, you can voice your support for Mr. Baker’s pursuit of a seat on the Stimulus Review Board.

All petitions will be sent directly to President Obama’s economic advising team.Thank You for the Support!

Follow us on Twitter: logicalisJoin the Logicalis Facebook page

Note: Greg Baker Is the nephew of Milt Baker CPA Editor of CPASense

2009-02-25T11:15:00.002-05:00

Client Perceptions

One unfortunate misperception among a certain group of taxpayers is that the return preparer who "gets them" a big refund must be smart, and those who tell them that tax is owed or a smaller refund are below par.

An essential part of the strategy requires client communication. The tax preparer should educate clients about the benefits of lowering withholding and estimated tax by showing them how they overpaid in 2008 and then have them proactively make the choice between a big refund later ( a government free loan) and more cash over the course of this year's economic uncertainty.

American Recovery & Reinvestment Act Of 2009 - Spending Recap

2009-02-25T07:51:00.002-05:00

Appropriations Provisions: That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2009, and for other purposes, namely:..........

CaseyResearch.com

Michigan Tax Scofflaws May Be Exposed

2009-02-24T07:30:00.002-05:00

LANSING , MI.-- The state is considering a new weapon against tax deadbeats: a public list intended to humiliate -- and motivate -- companies and individuals who are at least $100,000 behind in state taxes.

The "cybershaming" of the worst tax scofflaws by prominently listing their names, addresses and tax debts on a state Web site could embarrass them into paying their debt, advocates believe. The list, if published today, would have 350 names............

The Detroit News

IRS New Withholding Tables Now Available

2009-02-23T10:20:00.002-05:00

WASHINGTON ―Feb. 21, 2009 -- The Internal Revenue Service today released new withholding tables that will result in more take-home pay this spring for millions of American workers.

The new tables incorporate the new Making Work Pay credit, one of the key tax provisions included in the American Recovery and Reinvestment Act of 2009 that became law earlier this week.

“For most taxpayers, the additional credit will automatically start showing up in their paychecks this spring,” said IRS Commissioner Doug Shulman. “Since employers and payroll companies will handle this change, people typically won’t need to take any additional action. The IRS will continue working to implement this and other provisions of the new law as quickly as possible........

Internal Revenue Service

Borrowing From A Qualified Plan

2009-02-20T12:17:00.003-05:00

In times of economic contraction, retirement plan participants often look to their plan as a source of loans to help them through cash flow difficulties. This is especially so for the many taxpayers that have a large part of their savings tied up in retirement plans. If done properly, such loans can be made without adverse tax consequences, so long as they are repaid in a timely manner. Such loans will not be treated as a taxable distribution from the plan.......

Rubin On Tax

Reasons For Audits

2009-02-20T09:18:00.002-05:00

If you are among the thousands of Americans audited every year by the IRS, you might wonder what the specific reasons are for the audit and what alerted the IRS to audit you.

The IRS computer system determines most of the audits. It compares the details on the tax return that you file with the details it already has from the W-2 and 1099 form. These numbers need to match. If not, you will probably receive an IRS notice for audit. This commences the correspondence audit.

Factors including low or no business profit, low gross profit margin, high travel and entertainment deductions, high use of cars in the business, and high car expenses are also looked into by the computer system. The elements might mark you for an audit.

You might be subject to additional investigation based on: ...........

IRS Problem Solver

The Tax Saver's Credit Toolkit

2009-02-19T10:33:00.004-05:00

A new resource from AARP—a Retirement Made Simpler partner—has been developed for HR professionals to help employees make the most of the Saver's Credit—a federal income tax credit of up to $1,000. Toolkit materials include intranet content, an e-mail message, materials for open enrollment packets, FAQs and more.

Click on either the Automatic 401(k) or Traditional Defined Contribution Plan Toolkit below to learn more about how you can help eligible employees claim this valuable tax credit.............

Retirement Made Simpler

Taxpayer Appeal Rights: When & How To Appeal IRS Actions

2009-02-19T08:23:00.002-05:00

You have the right to appeal any IRS action, determination, decision or ruling.

The method and manner of the appeal varies depending on the nature of the dispute.

IRS Appeals Rights Chart
The following chart shows the various IRS appeals processes and how and when to apply for them............

The Tax Lawyer's Blog

Avoiding A "Nanny" Tax Sting

2009-02-19T08:16:00.002-05:00

Your client is considering hiring a nanny to care for his children. With the recent news about cabinet members and tax issues, he wants to know what the rules are.......

Investment News

Michigan Governor's 2010 Executive Budget

2009-02-17T14:01:00.002-05:00

Message from the Director, Bob Emerson

As Director of the Office of the State Budget, I would like to invite you to explore and make use of the many areas of our Web site. The State Budget Office is responsible for coordinating all aspects of the state budget including development of the Executive Budget recommendation, presentation of the budget to the Legislature and implementation of the budget after enactment. The Office also supervises and manages the collection and dissemination of educational data through the Center for Educational Performance and Information.

I am committed to providing comprehensive and useful information regarding the state budget and responsibilities of this office. I hope you find what you are looking for within our Web site.

**Governor Granholm's 2010 Executive Budget Addresses Structural Deficit, Protects Families
**Fiscal Year 2010 Executive Budget

Michigan Treasury

IRS E-File: Filing Your Taxes Was Never Easier

2009-02-16T08:27:00.003-05:00

Your Electronic Alternatives to Filing Paper Returns

IRS e-file Options For:
Individual Taxpayers File your 2008 Individual Income Tax Return electronically (available through October 15, 2009).

You can file online for free through the Free File program.

Business and Self-Employed Taxpayers Electronic filing and payment options for businesses including employment taxes, information returns, partnerships, corporations, and estates & trusts.

Includes information on the new Modernized e-File (MeF) program for partnership returns, Forms1065/1065-B.

Large and Mid-Size Corporations Certain large and mid-size corporations are required to electronically file their Forms 1120 and 1120-S, while others may do so voluntarily. We've included information for corporations who prepare and transmit their own corporate returns and for those using the services of third-party tax professionals.

Tax Professionals IRS e-file information for tax professionals. Several online e-services products are available including the electronic IRS e-file application.

Includes information on the new Modernized e-File (MeF) program for filing partnership returns electronically.

Charities and Non-Profits Electronic filing options for tax-exempt organizations. New requirements mean large tax-exempt organizations are now required to e-file their returns.

Excise Tax Filers Legislation now requires filers of certain Excise Forms to file their returns electronically.

e-file Software Developers and Transmitters

Internal Revenue Service

New Michigan EITC Highlights Available Tax Relief

2009-02-15T17:09:00.002-05:00

For the first time, Michigan taxpayers who claim the Federal Earned Income Tax Credit on their 2008 federal tax return are eligible to claim a Michigan Earned Income Tax Credit for 2008.

"Individuals who qualify for the Federal EITC will be able to claim a Michigan credit equal to 10 percent of their Federal credit," said State Treasurer Robert J. Kleine. "It is estimated that about 20 percent of those who qualify for the Federal EITC fail to claim it, and therefore miss out on tax savings.".......

Michigan Treasury

Michigan Business Taxes E-File 2008

2009-02-15T09:04:00.002-05:00

Michigan participates in the MBT Fed/State e-file program for tax year 2008, and will begin accepting MBT e-file returns in January 2009. Filing of tax returns electronically is Secure, Fast, and Convenient. Treasury is committed to processing MBT e-file returns in less than half the time of paper returns, and account resolution for MBT e-file returns receives priority..........

Michigan Treasury

Michigan Individual E-File - 2008

2009-02-15T08:59:00.005-05:00

E-file enables you to submit your Michigan and federal individual income tax returns using a computer instead of mailing paper returns. You can even e-file your Michigan return separately from your federal return (State-Only e-file). If you choose to e-file your Michigan tax return alone, be sure to calculate your federal return first before completing and e-filing your Michigan return. You may be able to e-file for FREE............

Michigan Treasury

2009-02-12T09:27:00.006-05:00

What to Do If You Are Missing a W-2

Did you get your W-2? These documents are essential to filling out most individual tax returns. You should receive a Form W-2, Wage and Tax Statement, from each of your employers each year.

Employers have until February 2, 2009 to provide or send you a 2008 W-2 earnings statement either electronically or in paper form. If you haven’t received your W-2, follow these steps:

1. Contact your employer. If you have not received your Form W-2, contact your employer to inquire if and when the W-2 was mailed. If it was mailed, it may have been returned to the employer because of an incorrect or incomplete address. After contacting the employer, allow a reasonable amount of time for them to resend or to issue the W-2.

2. Contact the IRS. If you still do not receive your W-2 by February 17th, contact the IRS for assistance at 800-829-1040. When you call, have the following information:

Employer's name, address, city, and state, including zip code;
Your name, address, city and state, including zip code, and Social Security number; and
An estimate of the wages you earned, the federal income tax withheld, and the period you worked for that employer. The estimate should be based on year-to-date information from your final pay stub or leave-and-earnings statement, if possible.

3. File your return. You still must file your tax return on time even if you do not receive your Form W-2. If you have not received your Form W-2 by February 17th, and have completed steps 1 and 2 above, you may use Form 4852, Substitute for Form W-2, Wage and Tax Statement. Attach Form 4852 to the return, estimating income and withholding taxes as accurately as possible. There may be a delay in any refund due while the information is verified.

4. File a Form 1040X. On occasion, you may receive your missing documents at a later date and some may have conflicting information. You may receive a Form W-2 or W-2C (corrected form) after you filed your return using Form 4852, and the information differs from what you reported on your return. If this happens, you must amend your return by filing a Form 1040X, Amended U.S. Individual Income Tax Return.

Form 4852, Form 1040X, and instructions are available on the IRS Web site, IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Links:
Form 4852, Substitute for Form W-2, Wage and Tax Statement (PDF 29K)
Form 1040X, Amended U.S. Individual Income Tax Return (PDF 123K)
Instructions for Form 1040X (PDF 43K)

Internal Revenue Service

Tax Relief For Innocent Spouses - The Basics

2009-02-11T18:42:00.004-05:00

When you sign a joint tax return with your spouse you are jointly and severally liable for the tax, penalty and interest shown due on the return and for any assessments arising from a later audit of that return.

In certain clearly defined cases, a spouse can get relief from this joint and several liability...........

Tax Lawyer's Blog

Smart Retirement Savings Steps To Take Now

2009-02-11T08:54:00.001-05:00

The recent turmoil in the financial markets has touched virtually every sector of the economy. One great source of anxiety for many people is the state of their retirement savings. Late last year, many saw the value of their retirement nest egg dwindle as stocks and stock mutual fund shares tumbled lower. The market will always be subject to ups and downs, but the Michigan Association of CPAs advises that there are steps you can take to better protect yourself for the future.............

Michigan Association of CPAs

Foreclosures

2009-02-10T12:40:00.002-05:00

Foreclosures are treated as the sale of property for tax purposes. Homeowners going through a foreclosure will need to calculate their gain or loss for tax purposes, as well as consider any tax that might be due on the forgiveness or cancellation of debt.......

About.com

Your Rights As A Taxpayer

2009-02-10T12:26:00.002-05:00

It may come as a surprise to some that there is a special bill of rights that deals only with the rights of U.S. taxpayers.

In fact, there are 3 of them:

Tax Lawyer's Blog

Tax Benefits For Disabled Taxpayers

2009-02-10T12:11:00.002-05:00

There are several tax credits and benefits available to qualifying taxpayers with disabilities as well as to the parents of disabled children. Listed below are several tax credits and other benefits available if you or someone else listed on your federal tax return is disabled..........

Internal Revenue Service

Find A CPA

2009-02-10T09:06:00.003-05:00

CPAs Best Choice for Tax Help, AICPA Tells Taxpayers

Washington, D.C.– The American Institute of Certified Public Accountants encourages the more than 81 million taxpayers who hire professional assistance each year to make an appointment now with a CPA tax preparer before their schedules fill up.

“It’s simple: always choose a CPA,” said Tom Ochsenschlager, vice president of taxation for the AICPA. “CPAs are business people in your community who will be there for you, year after year.” Tax season is underway. Most Americans last week received their W-2 forms from employers telling them how much money they earned in 2008, and the April 15 filing deadline is just 10 weeks away. “To be licensed by the states in which they practice, CPAs must pass a rigorous professional exam after they finish their college education,” Ochsenschlager said. “After they are licensed, mandatory continuing professional education requirements make sure that CPAs stay current with regulatory and legal changes. In addition, AICPA members must adhere to strict ethical standards, and additional rules apply to CPAs who are tax practitioners.”

Ochsenschlager pointed out that storefront tax form preparers may be of little help if your return is questioned. “If the IRS raises a question about your return, only CPAs, attorneys and enrolled agents are authorized to represent taxpayers before the IRS,” he said. “CPAs are the best trained and most skilled professionals taxpayers can hire.”

2009-02-09T16:57:00.004-05:00

Feel Good About Filing Your Taxes: Donate to Michigan Cancer Funds this Year

For the first-time ever, Michigan residents can show their support in the fight against cancer by contributing to two cancer funds when filing their state income taxes through the Breast and Prostate Cancer Income Tax Check-Offs.

Amanda's Fund for Breast Cancer Prevention and Treatment and the Prostate Cancer Research Fund are two new funds added to the Voluntary Contributions Schedule (Form 4642) associated with the Michigan Income Tax Form. Dollars collected from Amanda's Fund go directly to the Michigan Breast and Cervical Cancer Control Program (BCCCP), which provides free breast and cervical cancer screening services to low-income women in our state.

The MACPA partners with the BCCCP in reaching out to low-income women during our tax assistance programs held at Focus HOPE in Detroit.

Michigan Association of CPAs

Important Reminders For Payers' Backup Withholding Responsibilities

2009-02-09T15:15:00.002-05:00

Payers must make sure they meet their withholding responsibilities on payments made to payees who have not provided them with a proper Taxpayer Identification Number. Businesses often make payments to both employees and non-employees (independent contractors). When making payments to non-employees, the Internal Revenue Code generally requires the businesses to report these payments to the Internal Revenue Service. These payments are called “reportable payments” if the payments equal $600 or more during the calendar year...........

Internal Revenue Service

Tax Scams/ Consumer Alerts

2009-02-08T09:10:00.002-05:00

Don't fall victim to tax scams. Remember that if it sounds too good to be true, it probably is. If you think you're being scammed, you can report suspected tax fraud activity by sending completed Form 3949-A, Information Referral, to Internal Revenue Service, Fresno, CA 93888. You can download the form or call 1-800-829-3676 to order by mail.

Some of the common scams the IRS sees include:.......

Internal Revenue Service

What Income Is Taxable?

2009-02-06T13:01:00.002-05:00

While most income you receive is generally considered taxable, there are some situations when certain types of income are partially taxed or not taxed at all.

Some common examples of items that are not included in your income are:........

Internal Revenue Service

Highlights Of 2008 Tax Law Changes

2009-02-05T21:04:00.003-05:00

AMT exemptions rise; several expiring deductions and credits get a new lease on life; a new standard property tax deduction and a special first-time homebuyer credit are available to some homeowners; and retirement savings incentives expand. These are among the changes taxpayers will find when they fill out their 2008 tax returns. More information about these and other changes, summarized below, can be found on IRS.gov and in various IRS documents, including the Instructions for Form 1040..........

Internal Revenue Service

Talking To Your Kids About Tough Economic Times

2009-02-05T12:31:00.003-05:00

The nation has been facing uncertain economic times for a while now, a fact that has had an impact on many Americans. That means that many families have had to tighten their budgets and cut back on some of their spending. As this occurs, kids may have a tough time understanding why their parents can no longer afford the toys, electronic gadgets, activities or trips that they want. The Michigan Association of CPAs offers this advice on how to address the economy with your children.........

Michigan Association of CPAs

Smart Retirement Savings Steps To Take Now

2009-02-04T16:19:00.001-05:00

The 2010 Census - A Great Way To Earn Extra Money

2009-02-04T15:00:00.001-05:00

The U.S. Census Bureau is recruiting temporary part-time census takers for the 2010 Census. The pay is good, the hours are flexible, and the work is close to home...........

U.S.Census Bureau

Can Somebody Making $7 An Hour Really Beat A CPA?

2009-02-04T09:23:00.003-05:00

That is what H&R Block wants you to believe with their radio and television ads.

Our members are getting annoyed, so we started looking into this a little deeper and found this post from a fellow CPA and his blog over at Virtual CFO.

Turns out he knows exactly what we (and they) are talking about from his own first-hand experience. See his posts titled I Have People ...........

Maryland CPAs (CPA Success)

EITC Eligibility Rules Outlined

2009-02-03T13:05:00.001-05:00

The Earned Income Tax Credit (EITC) is a tax credit for people who work but do not earn high incomes. The EITC is a valuable tool helping eligible taxpayers to lower their taxes or to claim a refund. The IRS wants all eligible taxpayers to claim this credit.

Many taxpayers who qualify for EITC may also be eligible for free tax preparation and electronic filing by participating tax professionals and volunteers. Taxpayers and tax professionals should review the rules before attempting to claim the EITC.

Do You Qualify for EITC?..............

Internal Revenue Service

Tips For Finding The Right Tax Accountant

2009-02-03T12:39:00.002-05:00

Taxpayers of all types can benefit from hiring a tax accountant. But before you spend your hard-earned cash, here's some simple steps you can take to protect yourself, to find the right professional for your situation, and some questions to ask...........

About.com

Qualifying For A Mortgage In A Tough Economy

2009-02-03T10:38:00.002-05:00

Getting a mortgage has become increasingly challenging during recent months. One recent survey showed that 67% of those who applied for a mortgage found it more difficult. Although banks now may have stricter lending rules, it is still possible to qualify for a mortgage, according to the Michigan Association of CPAs. Here are a few steps that may make it easier.........

Michigan Association of CPAs

The "What Ifs" Of An Economic Downturn

2009-02-03T09:59:00.002-05:00

The Internal Revenue Service recognizes that many people may be having difficult times financially. There can be a tax impact to events such as job loss, debt forgiveness or tapping a retirement fund. If your income decreased, you may be newly eligible for certain tax credits, such as the Earned Income Tax Credit.

Most importantly, if you believe you may have trouble paying your tax bill contact the IRS immediately. There are steps we can take to help ease the burden. You also should file a tax return even if you are unable to pay so you can avoid additional penalties.

Here are some “What if” scenarios and the possible tax impact:.......

Internal Revenue Service

Client Letter On Tax Changes For Your 2008 Return

2009-02-02T21:27:00.004-05:00

Dear Client,

By now you should have received your Forms W2, 1099s, and broker's statements, and you may be getting ready to organize your tax records. Some things have changed for 2008 and I thought you might find some of the following information useful as you prepare to file and look ahead to 2009........

Accounting Web

Michigan Property Tax And Inflation Information

2009-02-02T21:05:00.003-05:00

Proposal A, which was approved on a statewide ballot in 1994, set certain property tax changes into the Michigan Constitution. Proposal A limited the yearly property tax increase to be equal to the lesser of the general price level (Inflation Rate Multiplier) or 5%.

How: The equation for the Inflation Rate Multiplier is mandated in MCL 211.34d. Each year Treasury's Tax Analysis Division is required calculate the rate, using the Bureau of Labor Statistics data. The Inflation Rate Multiplier is equal to the ratio of:............................

Michigan Treasury

For Many Investors, Year-End Forms To Arrive Later

2009-01-31T14:32:00.002-05:00

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

H&R Block Tax Advertising

2009-01-27T12:01:00.003-05:00

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

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

2009-01-26T22:19:00.005-05:00

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

Report Bartering Income

2009-01-21T14:01:00.001-05:00

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?

2009-01-21T13:44:00.003-05:00

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

2009-01-21T13:08:00.003-05:00

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?.............

Michigan Business Act - (As Amended January 2009)

2009-01-20T08:02:00.006-05:00

EHT & Co. PC

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

2009-01-19T18:01:00.003-05:00

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

2009-01-19T16:43:00.002-05:00

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

2009-01-19T09:02:00.003-05:00

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

Wolters Kluwer

Owe The IRS A Prior Year Return?

2009-01-16T13:18:00.005-05:00

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

Metro Detroit Tax Bills Tumble

2009-01-15T13:16:00.003-05:00

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

AICPA: Speeches / Powerpoint Presentations

2009-01-14T11:38:00.007-05:00

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

2009-01-14T10:07:00.002-05:00

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

2009-01-14T08:18:00.002-05:00

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

2009-01-14T06:40:00.002-05:00

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

E-File And Other Electronic Options For 2009

2009-01-13T15:43:00.001-05:00

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

2009-01-13T13:54:00.002-05:00

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

2009-01-13T08:33:00.004-05:00

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

IRS Recovery Rebate Credit Information Center

2009-01-11T08:53:00.002-05:00

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

How Much Was My 2008 Stimulus Payment Home

2009-01-09T11:43:00.004-05:00

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

2009-01-09T07:26:00.001-05:00

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

2009-01-09T07:18:00.001-05:00

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

Nine Financial Resolutions For 2009

2009-01-07T13:35:00.001-05:00

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

Five Smart Steps To Take If You're Laid Off

2009-01-06T13:36:00.001-05:00

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

2009-01-06T13:33:00.001-05:00

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

2009-01-06T08:30:00.002-05:00

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

2009-01-06T07:11:00.002-05:00

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

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

2009-01-02T09:17:00.001-05:00

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

Tax Law Changes Reduce Taxes In 2009

2009-01-01T08:34:00.003-05:00

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

Lawmakers Ask Bush To Suspend RMDs For 2008

2008-12-29T10:47:00.002-05:00

Sixty-one members of Congress are displeased with the Treasury Department's recent decision not to provide relief from required minimum distributions from IRAs and similar arrangements for 2008 (TAXDAY, 2008/12/22, T.1). The bipartisan group of lawmakers asked President Bush to use his executive authority to suspend RMDs for 2008 and, moreover, to allow individuals to recontribute RMDs already taken for 2008.........

CCH News

Gov't Letter On Minimum Distributions -2008

2008-12-23T08:58:00.004-05:00

The Honorable
U.S. Senate / U.S. House of Representatives
Washington, DC

Dear _______________:

This letter follows up on our previous response to your letter regarding required minimum distributions from individual retirement arrangements (IRAs) and 401(k) plans in light of the recent financial downturn.............

Kiplinger

Christmas Video - Awesome Christmas Lights

2008-12-23T07:39:00.004-05:00

Happy Holidays To All !

Medicare Part D: Penalties For Brand Drugs Hidden From Beneficiaries

2008-12-20T11:44:00.004-05:00

PART D GUIDE
Click here for the complete Part D guide

It's Open Enrollment For Drug Coverage To December 31, 2008
Many Plans Will Cost More In 2009
It Pays To Compare

AARP has called on Medicare to prohibit a little-known practice that some Part D drug plans are using to charge enrollees a sometimes substantial penalty if they choose certain brand-name drugs instead of their generic equivalents. Under a formula known as reference-based pricing, Medicare currently allows plans to charge enrollees the full price of the brand-drug plus the normal copay for that drug minus the full price of the generic............

AARP

The IRS Examination (Audit) Process

2008-12-18T19:34:00.003-05:00

January 2006

The IRS examines (audits) tax returns to verify that the tax reported is correct.

Selecting a return for examination does not always suggest that the taxpayer has either made an error or been dishonest. In fact, some examinations result in a refund to the taxpayer or acceptance of the return without change..............

Internal Revenue Service

Bad News For Seniors: No IRA Help For 2008

2008-12-18T19:00:00.003-05:00

December 18, 2008 --The Treasury has decided against granting any relief to retirees who were hoping to take smaller 2008 distributions from their depleted individual retirement accounts. ..........

Forbes

IRS Comprehensive Tax Guide Available Free At IRS.gov

2008-12-17T14:20:00.002-05:00

WASHINGTON — December 17, 2008 --The IRS has placed its comprehensive tax guide for individuals on IRS.gov, updating it for tax year 2008. The updated on-line version of IRS Publication 17, “Your Federal Income Tax,” contains more than 900 interactive links..........

Internal Revenue Service

Tax Planning Before Year-End - Bonus & Section 179 Depreciation Deductions

2008-12-16T15:03:00.006-05:00

The Bonus Depreciation provision allows you to depreciate 50 percent of the adjusted basis of certain qualified property during the year that the property is placed in service.

To take advantage of this bonus depreciation provision for 2008, you must place the property in service (that is, buy it and have it operating) after December 31, 2007 and before January 1, 2009......................

About.com

Credit-Card Issuers Get Stingy

2008-12-14T09:55:00.002-05:00

For consumers drowning in high-rate credit-card debt, balance transfers -- those "0% for 12 months!" offers -- are often important, if temporary, lifelines. For anyone else with credit-card debt, they're a useful way to keep interest-rate payments low.

But as credit-card issuers themselves flail in stormier economic seas, some are making such offers more restrictive and expensive. That means consumers must make sure that transferring their debt makes prudent financial sense............

Wall Street Journal

Banks And Consumers Brace For New Credit Card Rules

2008-12-14T09:17:00.003-05:00

WASHINGTON (Reuters) – December 13, 2008 -- The U.S. credit card industry, harshly criticized for imposing surprise fees and interest rate hikes on consumers, may face a day of reckoning on Thursday................

Yahoo News

Will Gift Cards Keep On Giving When Company Goes Bankrupt?

2008-12-14T09:00:00.002-05:00

Gift cards should be worry-free, thanks to a new Michigan state law that bars hidden fees and extends expiration dates to no less than five years.

But shoppers have another concern: Will those retailers be around in 2009 to redeem those cards?........................

MILive

Required Minimum Retirement Withdrawals waived....In 2009

2008-12-13T06:26:00.003-05:00

What about 2008?
The temporary suspension of RMDs is great news for older account holders who would be facing this task in 2009. But the new soon-to-be law doesn't do a thing for folks who have a Dec. 31, 2008, RMD deadline to meet and are confronting the same lost value concerns.

There's still hope that Treasury will issue a ruling to help out those folks via a regulatory pronouncement. Several members of Congress have been urging Secretary Henry Paulson and crew to do just that.............

Don't Mess With Taxes Blog

Don't Miss These Last Minute Tax Breaks

2008-12-12T11:20:00.003-05:00

The tax season deadline is the last thing most of us want to think about during the holidays. Although April 15 may seem a long way off, now is the time to make sure you’ve taken advantage of some of the tax breaks available to you in 2008, according to the Michigan Association of CPAs. That’s because many opportunities to reduce your tax bill will expire once the new year begins. With that deadline in mind, here are some that you shouldn’t miss...........

Michigan Association of CPAs

Social Security Podcast: When Should You Start Receiving Benefits?

2008-12-12T11:01:00.003-05:00

If you wondered about the best age to retire, listen to Social Security’s new podcast, “Deciding When to Start Receiving Retirement Benefits,”.............

Social Security Administration

IRS Reminder: Make Use Of Recent Tax Law Changes For 2008 And December 31 Is The Last Day For Most Of These Actions

2008-12-11T17:05:00.002-05:00

Hear a podcast in English or Spanish.
WASHINGTON — Tax year 2008 is quickly nearing an end. The Internal Revenue Service reminds taxpayers to avoid putting off important financial tasks until the last minute. The important deadline of Dec. 31 is fast approaching for many tax-planning issues..........

Internal Revenue Service

IRS Interest Rates Drop for 1st Quarter 2009

2008-12-11T13:35:00.003-05:00

WASHINGTON – December 10, 2008 -- The Internal Revenue Service today announced in Revenue Ruling 2008-54 that interest rates for the calendar quarter beginning Jan. 1, 2009 will drop by one percentage point. The new rates will be: ......................

Internal Revenue Service

Smart Tips About Gift Cards

2008-12-11T07:45:00.001-05:00

Many people find gift cards to be a convenient and thoughtful way to allow friends and family to choose their own presents at the holidays. While this may be true, the Michigan Association of CPAs warns of some potential pitfalls to be aware of when giving or receiving a gift card..........

Michigan Association of CPAs

Michigan's New Gift Card Law

2008-12-11T07:38:00.003-05:00

Here’s some welcome news just in time for the holidays. The state of Michigan has put into place new consumer-friendly laws governing the sale of certain gift cards. As of Nov. 1, stores must honor the gift cards and gift certificates they sell for at least five years from the date of purchase...................

Consumer Reports

Year-End Planning For Businesses

2008-12-10T20:11:00.002-05:00

This is a particularly tricky year for tax planning. While 2008 may have been a bad year for your business, 2009 could be even worse. If there were ever a year to get professional advice, this is it........................

Small Business Taxes & Management

IRS Offers Tips For Year-End Donations

2008-12-10T20:04:00.002-05:00

WASHINGTON — December 9, 2008 -- Individuals and businesses making contributions to charity should keep in mind several important tax law provisions that have taken effect in recent years.................

Internal Revenue Service

Stimulus Payments - What You Need To Know

2008-12-06T12:46:00.001-05:00

If you missed the Oct. 15 deadline for filing an income tax return for a economic stimulus payment, don't worry. You can receive a payment in 2009 by filing an income tax return when the filing season opens in January. The IRS will have more information shortly.............

Internal Revenue Service

IRS Frequently Asked Tax Questions & Answers

2008-12-04T08:37:00.003-05:00

To search the Frequently Asked Questions (FAQs), enter your search terms or questions in the box below..............

Internal Revenue Service

Michigan Income Tax - Frequently Asked Questions

2008-12-03T16:28:00.004-05:00

Individual Income Tax

List of Topics

Michigan Treasury

Michigan Business Tax - Frequently Asked Questions

2008-12-01T14:58:00.002-05:00

NOTICE: The MBT was amended by 145 PA 2007 on December 1, 2007. Act 145 imposes an annual surcharge to taxpayers' MBT liability, as well as makes other changes. Due to PA 145, some of the FAQs have been rescinded and revised answers have been issued. See below for a list of the rescinded answers................

Michigan Treasury

Don't Rush On Mandatory Withdrawals From Retirement Accounts

2008-11-28T11:10:00.002-05:00

Some relief might be on the way for senior citizens required to take minimum withdrawals from their individual retirement accounts at a time when the stock market has blown a hole in their financial portfolios............

AccountingWeb

Year- End Tax Planning For Individuals

2008-11-28T09:14:00.002-05:00

It's about that time to do some serious year-end tax planning. We'll deal with your personal return first, then cover business planning. If you have your own business please read both sections before taking any action.

Don't underestimate the importance of year-end planning. You can save big tax dollars by deferring or shifting income from one year to another. Next year is too late; even the end of December may be too late for some techniques...........

Small Business Taxes Management

IRS Announces 2009 Standard Mileage Rates

2008-11-25T11:29:00.002-05:00

WASHINGTON — November 24, 2008 -The Internal Revenue Service today issued the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be:...................

AICPA Aims "Feed The Pig" at 25-34 Year Olds

2008-11-24T06:04:00.002-05:00

The American Institute of CPAs is launching a new series of ads for its "Feed the Pig" financial literacy campaign at adults in the 25-to-34 age group.

The public service announcements, co-produced with the Ad Council, aim to teach young adults how to save money even in today's difficult economic environment.......

WebCPA

CCH Projects Inflation-Adjusted 2009 Personal Vehicle Use Limits

2008-11-21T10:11:00.004-05:00

CCH has projected the maximum allowable value for employer-provided vehicles under the cents-per-mile method for computing the fringe benefit of personal use of a company vehicle. Relying on the consumer price index recently published for October 2008 (the measuring month specified under Code Sec. 280F(d)(7)), these amounts will remain at $15,000 for cars and drop to $15,200 for trucks and vans........

Information About Your Michigan Business Tax Account

2008-11-21T09:50:00.001-05:00

Coming Soon! Businesses will soon be able to view their Michigan Business Tax (MBT) account information. Taxpayers will not be able to access self service until after the filing of their first MBT return. Note: in order to protect the privacy and security of taxpayer records, taxpayers will be required to provide shared secrets. Shared secrets are account and tax year specific........

Michigan Treasury

Baucus And Colleagues Unveil Pension Modifications, Tax Relief Legislation

2008-11-20T12:21:00.002-05:00

A bipartisan group of senators, including Senate Finance Committee Chairman Max Baucus, D-Mont., announced legislation on November 19 that includes modifications to pension distribution requirements and expansion of some earlier tax breaks for small businesses. The Worker, Retiree, and Employer Recovery Bill of 2008 alters provisions included in the Pension Protection Technical Correction Bill of 2008 (HR 6382), extends for one year business tax relief that was included in the first economic stimulus package, and allows companies to write off a greater percentage of their investments in business assets to increase their cash flow..........

CCH