Tax News
Tax Compliance Efforts Continue
The economic slowdown our country has been experiencing since 2008 has resulted in decreased tax revenue at the federal and state levels. As a result, the IRS, Franchise Tax Board and California State Board of Equalization (sales tax) are working to increase compliance, close the "tax gap" and improve enforcement.
Tax Year 2011 saw the beginning of a number of new compliance and enforcement efforts aimed at identifying unreported income (the underground cash economy) and uncollected taxes, especially sales and use taxes. For more information visit our new Taxes in 2012 page.
Don't forget to File 1099's
The Deadline for filing and delivering 2011 Form 1099-Misc's is January 31. ALL businesses must file 1099's for 2011 payments of $600 or more:
- In services (including parts and materials) to an individual or partnership
- In rent to an individual or partnership
- To an attorney
Failure to file 1099's or filing them late will result in fines and penalties.
If you would like us to assist you with your 1099 filings we will need to receive the necessary information NO LATER than January 13. Call or email Vikki ASAP to begin the process.
Employee or Independent Contractor?
Yet another area of increased enforcement efforts by federal and state agencies is insuring that individuals are properly classified as either an employee (subject to payroll withholding taxes and income is reported on a W-2) or an independent contractor (no payroll withholding taxes, payments reported on Form 1099). Determining the correct classification can be difficult, and getting it wrong will result in fines and penalties.
For more information visit the IRS website and search for"employee vs. contractor".
Important Dates:
- January 17—Fourth federal and state estimated tax payment due
- January 31—W2 and 1099-Misc filing and delivery deadline
- March 15—Corporate tax filing deadline
- April 17 (Not the 16th because of Emancipation Day, again):
- Personal tax filing deadline
- Last day to establish or contribute to a Tax Year 2011 IRA
- Partnership filing deadline
- First Estimated tax payments due for 2012
Accountability News
Tax Season 2012 Is Here—Time To Start Getting Ready!
The keys to preparing an accurate tax return (and paying the least amount of tax) are education, great record keeping and organization. We've been developing our website to provide both information on the tax code and tools that our clients can use to organize their records.
A good starting point is our Getting Ready page. This page contains a list of items to bring to your appointment along with links to questionnaires and other tools you can use to organize your records.
Owners of S-Corps will benefit from our Strategies for S-Corps page.
If you're self-employed, check out Strategies for the Self-Employed.
If you'd like to receive an e-organizer containing your tax info from your 2010 return, email us with subject line "E-Organizer".
New Client Referrals
We are accepting new clients and appreciate referrals. As a thank you, for each new client you refer who completes a return we'll send you a check for $20. (Full details here.)
Tax Season 2012 Appointments
Tax Season 2012 "officially" begins January 13, the first day that we can e-file returns. Our tax season hours will begin January 14. Appointments will be available:
- Mon-Thurs 9:00 a.m. to 8:30 p.m.
- Fri- Sat 9:00 a.m. to 4:30 p.m.
— Karen Spencer
President