Issue 2 – September 2012
As we gear up for the second tax season with the extension filing deadline arriving, check out the upcoming dates for your dairy to see if they affect you. There can be large penalties if you miss the deadlines.
If you have any topics or questions that you would like me to cover in the newsletter do not hesitate to call me on (480) 363-4808 or email me at email@example.com.
Mark Smith – September 2012
TOPICS IN THIS NEWSLETTER
Upcoming Dates For Your Diary
QuickBooks Tip – Excel Integration
Tax Year End Accounting Checklist
UPCOMING DATES FOR YOUR DIARY
September 10, 2012 – Any employees with more than $20 of tips in August 2012 need to report these to you.
September 17, 2012 – Individuals pay third estimated tax installment. If there have been any changes in your circumstances since the last tax installment you may need to change the amount of your payment. You may need to start making payments if you have made no previous estimated tax payments this year. Changes to consider include big increases in your income such as self-employment, capital gains or rental income. Call me on (480) 363-4808 if you need assistance calculating your estimated tax payments.
September 17, 2012 – Partnerships that filed an extension must file their 2011 tax return form 1065. If the return is filed late the late filing penalty is $195 per partner per month the return is late, up to 12 months late. It doesn’t take long for this penalty to build up.
September 17, 2012 – Corporations or LLCs taxed as corporations that filed an extension must file their 2011 tax returns forms 1120 or 1120S. For C Corporations filing form 1120 the late filing penalty is tax related as for individuals. It is 5% of the unpaid tax for each month the return is late up to a maximum of 25%. For S Corporations filing form 1120S the late filing penalty is the same as for partnerships at $195 per member per month the return is late, up to 12 months late.
October 15, 2012 – Individuals who filed an extension must file their 2011 tax returns, forms 1040, 1040A or 1040EZ.
This is the time of year when you might receive a notice from the IRS about a tax return that you have previously filed.
Firstly, if you receive a notice from the IRS, DON’T PANIC and don’t file it away in the " I’ll look at that later pile ". Read the notice to see what they are saying or asking. Some notices are requesting payment of taxes, some are amending your account and others are requesting more information about your tax return. Many of these notices can be dealt with easily and don’t involve meeting or talking to anybody from the IRS. In fact most notices are dealt with by correspondence.
If you don’t understand the notice or agree with it I would recommend you contact your tax preparer as soon as possible. This is particularly the case if the IRS is requesting more information about the return or is making changes to it. Your tax preparer will have the detailed knowledge about what decisions and calculations were made to prepare the return. They will also have the experience to make sure that the reply is crafted in a way to get the best result for you.
Finally, don’t save up your notices to bring in with the information to prepare your tax return next year. There is usually a time limit to reply to the notice so that is why you need to contact your tax preparer as soon as possible after you receive a notice.
If you need any help with a notice from the IRS call me on (480) 363-4808 or email me at firstname.lastname@example.org.
QUICKBOOKS TIP – EXCEL INTEGRATION
With the release of QuickBooks 2012 last fall there is now better integration between QuickBooks and Excel.
Although there are plenty of good reports provided in QuickBooks a user may sometimes want to change a report or perform calculations on the report data. This can be done by exporting the report to Excel. In previous versions of QuickBooks the exporting would lose any formatting changes made to an earlier version of the spreadsheet. This has been much improved in the 2012 version.
For more information read my article here….
TAX YEAR END ACCOUNTING CHECKLIST
Are you looking to get all your accounting information together to file your business or individual tax return by the upcoming extension deadlines?
If so, you might find it helpful to review my checklist of items to consider that will assist your tax preparer when they prepare your tax return and help them get the best tax position for you.
The checklist is located here….
If you are planning to employ any veterans before the end of 2012 make sure that you review if you will qualify for the Work Opportunity Tax Credit. This is worth up to $9,600 per veteran that you take on as an employee, so a very generous tax credit.
There are strict conditions that need to be satisfied in order to claim this tax credit and some of the conditions need to be completed before a job offer is made. So it is very important that you do advance planning if you think the credit will apply to you. It will be no good turning up to your tax preparer early next year expecting them to claim the credit on your tax return if you haven’t completed all of the advance paper work.
So, contact your professional advisors well before you start the recruitment process.
You can read more about the Work Opportunity Tax Credit in my article here….
In each newsletter I will be featuring an advisor who you may find helpful for your business or personal needs. If any of my clients would like to be featured send me an email with your up to date details and suggested wording to describe your services.
For this issue I am featuring a representative from LegalShield.
Name – Kimberly Bruns
Firm – LegalShield
Tel – 480-298-3790
Email – email@example.com
Web – http://www.williambruns.legalshieldassociate.com
Kimberly is an independent representative for LegalShield and GoSmallBiz. Their customers can access legal counsel and business advice from dedicated law firms with top rated attorneys across the country simply by calling a toll free number. Many other benefits are included, but even at the most basic level their plans allow you to have peace of mind, knowing that the promise of Equal Justice Under Law is a reality!
Disclaimer – This newsletter does not constitute personal accounting or tax advice to the reader and is only offering general information. You should seek professional advice for your own situation as the most appropriate accounting or tax planning depends on your personal and unique circumstances.