Tax Tips

Date:  04/27/2014 Beware Scammers Posing as the IRS

Featured in Wall Street Journal by Tom Herman

Watch out for con artists posing over the phone as representatives of the Internal Revenue Service.  It’s an old idea, but Treasury and IRS officials say thousands of people have fallen for increasingly sophisticated phone scams designed to steal money or identities.

“The increasing number of people receiving these unsolicited calls from individuals who fraudulently claim to represent the IRS is alarming,” J. Russell George, the Treasury inspector general for tax administration, said last month.

The IRS recently issued a fresh warning, saying the scams may come in various forms.  In recent months people have reported “a particularly aggressive phone scam,” the IRS said.  Targets often include immigrants.  “Potential victims are threatened with deportation, arrest, having their utilities shut off, or having their driver’s licenses revoked,” the IRS said.

In some cases, callers tell victims they  are “entitled to big refunds, or that they owe money that must be paid immediately to the IRS,” the IRS said.

What to do?  Keep in mind that the IRS says it “will always send taxpayers a written notification of any tax due via the U. S. mail.”  The IRS “never asks for credit card, debit-card or prepaid-card information over the telephone.” (For more details, go to irs.gov and type “scam” in the search box.)

If you get such a call, just hang up – and consider the following advise from the IRS:

• Call the IRS at 800-829-1040 if you know you owe taxes, or think you might owe taxes, or think you might.
• If you are sure you don’t owe taxes, or have no reason to think you might, report suspicious calls to the Treasury inspector general for tax administration at 800-366-4484.
• Contact the Federal Trade Commission (ftc.gov) and use its “FTC Complaint Assistant” on that site.  “Please add ‘IRS Telephone Scam’ to the comments of your complaint,” the IRS Says.
  

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303-232-8300

How to Handle an Impending Audit

No matter how carefully you prepare and file your taxes, the IRS may still choose to audit your company. This can be due to a discrepancy that their computer noted, unfiled tax returns, or you may have simply been selected randomly. You will always receive a letter in the mail informing you of the impending audit. What should you do?

1. Call your trusted financial advisor immediately. Your advisor can help you find out why the IRS is choosing to audit your company and therefore narrow down the documentation you will need to have prepared for the day of the audit. ATS is able to represent you during the audit, once a power of attorney is executed with the taxing agency.
2. Start pulling your documents. Remember that the IRS can audit you any time within three years of a tax return so while it’s 2014 you could receive a notice for a 2011 filing. Make it a practice before you ever receive an audit notice to always keep and file documentation and receipts. This will ease the process of compiling your information and allow you to prepare quickly for your audit.
3. Remain calm. An IRS audit is no reason to panic, and much of the time is due to random selection or a relatively minor error. If you feel like you do have a cause for concern take it up with your trusted financial advisor long before the audit begins and ensure that you are protected. You will want to be honest about any concerns you have with your advisor so they can be prepared for what’s to come and can intervene on your behalf.
4. Don’t sign anything! Never sign any decisions or documents until your trusted advisor has had the chance to review them. You are well within your rights to insist that your representation review a document before you put pen to paper. If the decision made is negative you will want your financial advisor to review the document and the appeals process to ensure you are able to file a timely appeal to protect your business.

When those unwanted letters arrive in the mail, ATS should be your first call. Our highly trained and experienced accounting management solutions advisors can help guide you through the process from beginning to end. Call us today at 303-232-8300 – you don’t want to wait until after you’ve received an audit notice to start taking control of your finances and your tax filings.

As you take the first steps toward choosing the entity type for your new business, you will find that there are multiple options for you to choose from. The differences can be difficult to understand and it can be frustrating trying to make the right choice for you and your new business.

One of the most common entities is an LLC, Limited Liability Company. An LLC is a type of business that separates your finances from those of your business. Similar to an LLC is a PLLC which provides the same protections for business owners providing services that require a license such as those opening a medical practice.

An S-corporation protects your finances the same way an LLC does, but it can be daunting for a new business. An S-Corp requires a board of directors and the filing of multiple reports, which an LLC does not. One difference between an LLC and an S-Corp is the level of regulatory commitment you would be undertaking. An advantage of an S-Corp is the potential savings of self-employment taxes. Of note, an S-Corp is limited to 100 shareholders and all shareholders must be domestic.

A C-Corporation, like both the LLC and S-Corp options before it, protects your finances in the event of your business being sued. Like the S-Corp it relies on shareholders, but it does not have a limit on how many shareholders can be a part of the company. A major disadvantage not seen with an S-Corp or an LLC is what’s referred to as “double taxation,” wherein the Corporation’s profits are taxed, distributed, and taxed again as dividends to the shareholders.

Each business type comes with unique advantages and disadvantages. As experts in accounting management solutions, ATS is well-versed in each of the options available to your new business. Call us today at 303-232-8300 and speak to one of our friendly affordable accounting advisors to schedule your free consultation.

Accounting Tax Solutions – Your Trusted Business Advisor

Businesses have a unique set of needs when it comes to accounting and tax work.

At Accounting Tax Solutions, we’ve developed a comprehensive business advisor program that arms growing businesses of any size with the tools they need to succeed in today’s increasingly competitive market place.

ATS not only offers monthly accounting but is also a part of the management team, acting as a business partner and advisor. This is based on our unique combination of skills, ability, knowledge and strategic alliances. While we may not have the answers in all of these areas, we have the resources available to act as a “general contractor” in obtaining the expertise in these areas. Our goal as your trusted advisor and member of your management team is to hold you accountable to address these business decisions on a regular basis.

To schedule a free consultation with an Accounting and Tax Solutions business advisor, call (303) 232-8300.

IRS issues new regulations for tax preparers

Tax season is already in high gear, and businesses should be mindful of new IRS regulations regarding tax preparation. Don’t forget to meet your deadlines and choose a competent business tax professional.

According to the IRS, all paid tax return preparers to have a Preparer Tax Identification Number (PTIN).  It is important to find out if the preparer is affiliated with a professional organization, and if so, if there are any disciplinary actions or complaints registered with the Better Business Bureau, state boards of accountancy for certified public accountants, the state bar associations for attorneys and the IRS Office of Enrollment for enrolled agents.

After confirming the preparer has a registered PTIN number, the next thing you should do is confirm they are experienced with business tax returns. Then find out about service fees and if the preparer offers electronic filing. The IRS recommends avoiding any preparer who base their fee on a percentage of your return. You should also make sure funds are deposited directly into your account or sent to you, not to the preparer. Electronic filing is safe and secure and should be used by anyone not specifically requesting a paper return. The preparer is required to sign the return per IRS regulations.

Let Accounting and Tax Solutions be an integrated part of your business. Let us use our experience, knowledge and expertise to be your trusted business advisor and ongoing part of your management team. Contact Accounting and Tax Solutions for a consultation (303) 232-8300.

FOR IMMEDIATE RELEASE

Accounting & Tax Solutions Debuts New Website and Trusted Business Advisor Concept

LAKEWOOD, CO—

Accounting & Tax Solutions, Inc. is pleased to announce the launch of its new website www.acctaxsolutions.net this month. This site combines a more user-friendly approach with exclusive content from our accounting professionals. It also offers quick and easy access to essential information that will help businesses make a better, well-informed decision when choosing an accounting or tax solutions service.

Some of the highlighted new features include new video capabilities, a client portal to give customers easy access to their accounts at any time of the day, a monthly eNewsletter that will keep Accounting Tax Solutions clients up to date on the newest happenings in the industry and at the company. The new website also features links to our social media page to encourage client and affiliate interaction.

Accounting & Tax Solutions’ Trusted Business Advisor service is an enhancement to our Monthly Accounting Services. Becoming your trusted business advisor will help your organization plot a course for your future success. This is based on our unique combination of skills, ability, knowledge and strategic alliances. While we may not have the answers in all of these areas, we have the resources available to act as a “general contractor” in obtaining the expertise in these areas. Our goal as your trusted advisor and member of your management team is to hold you accountable to address these business decisions on a regular basis.

Visit www.acctaxsolutions.net today, watch our informative service area videos, search our resources and follow our blog and social media posts for the latest tools to help your business thrive in the challenging environment of business.

About Accounting & Tax Solutions, Inc.

Accounting & Tax Solutions, Inc. is a comprehensive business advisory firm specializing in individual and business accounting services. We provide tailored packages and independent products according to the prioritized needs of our clients. We excel in bookkeeping, business and individual tax planning and preparation, business startup plan consultations, and our concierge business controller program where we function as part of your management team fulfilling all the roles of an in-house tax and accounting firm.

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IR-2013-82, Oct. 22, 2013

WASHINGTON – The Internal Revenue Service today announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems following the 16-day federal government closure.

The IRS is exploring options to shorten the expected delay and will announce a final decision on the start of the 2014 filing season in December, Acting IRS Commissioner Danny Werfel said. The original start date of the 2014 filing season was Jan. 21, and with a one- to two-week delay, the IRS would start accepting and processing 2013 individual tax returns no earlier than Jan. 28 and no later than Feb. 4.

The government closure came during the peak period for preparing IRS systems for the 2014 filing season. Programming, testing and deployment of more than 50 IRS systems is needed to handle processing of nearly 150 million tax returns. Updating these core systems is a complex, year-round process with the majority of the work beginning in the fall of each year.

About 90 percent of IRS operations were closed during the shutdown, with some major workstreams closed entirely during this period, putting the IRS nearly three weeks behind its tight timetable for being ready to start the 2014 filing season. There are additional training, programming and testing demands on IRS systems this year in order to provide additional refund fraud and identity theft detection and prevention.

“Readying our systems to handle the tax season is an intricate, detailed process, and we must take the time to get it right,” Werfel said. “The adjustment to the start of the filing season provides us the necessary time to program, test and validate our systems so that we can provide a smooth filing and refund process for the nation’s taxpayers. We want the public and tax professionals to know about the delay well in advance so they can prepare for a later start of the filing season.”

WASHINGTON — The Internal Revenue Service is providing tax relief to individual and business taxpayers impacted by severe storms, flooding, landslides and mudslides in Colorado.

IRS Provides Tax Relief for Victims of Colorado Storms

The IRS announced today that certain taxpayers in the counties of Adams, Boulder, Larimer and Weld will receive tax relief, and other locations may be added in coming days following additional damage assessments by the Federal Emergency Management Agency (FEMA).

The tax relief postpones certain tax filing and payment deadlines to Dec. 2, 2013. It includes corporations and businesses that previously obtained an extension until Sept. 16, 2013, to file their 2012 returns and individuals and businesses that received a similar extension until Oct. 15. It also includes the estimated tax payment for the third quarter of 2013, which would normally be due Sept. 16.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.

Practitioners located in the covered disaster area who maintain records necessary to meet a filing or payment deadline for multiple taxpayers outside the disaster area may contact the IRS to identify such clients using the procedures described on the IRS website.

Practitioner Procedures for Disaster Relief

Full details, including information on how to claim a disaster loss by amending a prior-year tax return, can be found in IRS.gov. The IRS encourages taxpayers and tax practitioners to monitor the Tax Relief in Disaster Situations in IRS.gov for updates.

IRS YouTube Videos:
Help for Disaster Victims

The Colorado Secretary of State sent this bulletin at 09/28/2012 10:59 AM MDT.

The Colorado Secretary of State’s office is notifying Colorado businesses of a possibly deceptive solicitation issued by “Compliance Services.” The entity has mailed solicitations titled “Annual Minutes Requirement Statement Directors and Shareholders ” to businesses in Colorado. These solicitations offer to prepare documents to satisfy the annual minutes requirement for a $125 fee. Though most corporations are required to keep records of annual minutes, they are not required to file these records with any third party.

Although the solicitations contain disclaimers stating that “The preparation of minutes of annual meetings does not satisfy the requirement to file the Periodic Report required by COLORADO REVISED STATUTES SECTION 7-90-501,” the solicitation is creating confusion. Please be aware, the minutes of annual meetings are not required to be filed with the Colorado Secretary of State’s Office or any other government agency or third party. In addition, records of annual meetings are separate from the annual report filing with the Secretary of State’s Office, which for most businesses is just a $10 fee, online at www.sos.state.co.us.