WBC News

Choosing a Tax Preparer

Eight Tips to Help You Choose a Tax Preparer  

The IRS urges people to use care and caution when choosing a tax preparer.  Remember, you are legally responsible for what’s on your tax return even if it was prepared by an another individual or firm.

Most tax return preparers are professional, honest and provide excellent service to their clients. However, unscrupulous tax return preparers do exist and can cause considerable financial and legal problems for their clients.  Therefore, it’s important to find a qualified tax professional.

The following tips will help you choose a preparer who will offer the best service for your tax preparation needs.

1.     Check the person’s qualifications Ask if the preparer is affiliated with a professional organization that provides its members with continuing education and resources and holds them to a code of ethics.

2.     Check on the preparer’s history Check to see if the preparer has any questionable history with the Better Business Bureau, the state’s board of accountancy for CPAs or the state’s bar association for attorneys.

3.     Find out about their service fees Avoid preparers that base their fee on a percentage of the amount of your refund or those who claim they can obtain larger refunds than other preparers.

4.     Make sure the tax preparer is accessible  Make sure you will be able to contact the tax preparer after the return has been filed, even after April 15, in case questions arise.

5.     Provide all records and receipts needed to prepare your return Most reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items.

6.     Never sign a blank return Avoid tax preparers that ask you to sign a blank tax form.

7.     Review the entire return before signing it  Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.

8.     Make sure the preparer signs the form  A paid preparer must sign the return as required by law. Although the preparer signs the return, you are responsible for the accuracy of every item on your return.  The preparer must also give you a copy of the return.

You can report abusive tax preparers and suspected tax fraud to the IRS on Form 3949-A, Information Referral or by sending a letter to Internal Revenue Service, Fresno, CA 93888.  Download Form 3949-A from IRS.gov or order by mail at 800-829-3676.

Posted on January 12, 2010


Keeping Good Records Reduces Stress at Tax Time

The tax filing season is just around the corner, so if you haven’t already done so, it’s time to organize your records.   Whether you are a business owner or an individual taxpayer, you can avoid headaches at tax time with good records because they will help you remember transactions you made during the year. 

Keeping well-organized records also ensures you can answer questions if your return is selected for examination or prepare a response if you are billed for additional tax. In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, you should keep any and all documents that may have an impact on your federal tax return. 

Small Business Owners 

If you are a small business owner, you must keep all your employment tax records for at least four years after the tax becomes due or is paid, whichever is later.

Examples of important documents business owners should keep Include: 

• Gross receipts: Cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips and Forms 1099-MISC

• Proof of purchases: Canceled checks, cash register tape receipts, credit card sales slips and invoices

• Expense documents: Canceled checks, cash register tapes, account statements, credit card sales slips, invoices and petty cash slips for small cash payments

• Documents to verify your assets: Purchase and sales invoices, real estate closing statements and canceled checks 

 

For more information about recordkeeping, check out IRS Publications:  

·        Pub 552 at http://www.irs.gov/pub/irs-pdf/p552.pdf, Recordkeeping for Individuals

·        Pub 583 at http://www.irs.gov/pub/irs-pdf/p583.pdf   Starting a Business and Keeping Records

·        Pub 463 at http://www.irs.gov/pub/irs-pdf/p463.pdf, Travel, Entertainment, Gift, and Car Expenses  

These publications are available on the IRS Web site, IRS.gov or by calling 800-TAX-FORM (800-829-3676).

 

Posted on November 24, 2009


Five Facts about the Home Office Deductions

With technology making it easier than ever for people to operate a business out of their house, many taxpayers, entrepreneurs and small business people may be able to take a home office deduction when filing their 2009 federal tax return next year. Here are five important things the IRS wants you to know about claiming the home office deduction. 1. Generally, in order to claim a business deduction for your home, you must use part of your home exclusively and regularly: 

  1. As your principal place of business, or as a place to meet or deal with patients, clients or customers in the normal  course of your business, or in the case of a separate structure which is not attached to your home, it must be used in connection with your trade or business
  2. For certain storage use, rental use or daycare-facility use, you are required to use the property regularly but not exclusively.
  3. Generally, the amount you can deduct depends on the percentage of your home that you used for business. Your deduction for certain expenses will be limited if your gross income from your business is less than your total business expenses.
  4. There are special rules for qualified daycare providers and for persons storing business inventory or product samples.
  5. If you are self-employed, use Form 8829, Expenses for Business Use of Your Home, to figure your home office deduction. Report the deduction on line 30 of Schedule C, Form 1040.
  6. Different rules apply to claiming the home office deduction if you are an employee. For example, the regular and exclusive business use must be for the convenience of your employer. For more information see IRS Publication 587, Business Use of Your Home, available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Posted on August 27, 2009


Industry Issue Resolution Program

IRS Seeks New Issues for the Industry Issue Resolution Program


IR-2009-70, Aug. 3, 2009 
WASHINGTON - The Internal Revenue Service is encouraging business taxpayers, associations and other interested parties to submit to the Industry Issue Resolution (IIR) Program tax issues for resolution that involve a controversy, dispute or an unnecessary burden on business taxpayers.The objective of the IIR program is to resolve through issuance of new and improved guidance business tax issues common to significant numbers of taxpayers. In past years, issues have been submitted by associations and others representing both small and large business taxpayers, resulting in tax guidance that has affected thousands of taxpayers. Submissions received are reviewed semi-annually with selections next being made from issues submitted by Aug. 31, 2009.The IIR program recently accepted for review the topic of technical terminations of publicly traded partnerships. Guidance issued as a result of the IIR program includes: Auto Last In First Out (LIFO) for automobile wholesalers, manufacturers and dealers regarding the proper treatment of the dollar-value, LIFO inventory method for pooling purposes of crossover vehicles, which have characteristics of trucks and cars. (Revenue Procedure 2008-33). Valuation of Parts Inventory by Heavy Equipment Distributors. (Revenue Procedure 2006-14). Clarification regarding circumstances when facsimile signatures may be used to sign employment tax forms. (Revenue Procedure 2005-39). An explanation of the circumstances under which insurance companies that make incentive payments to health care providers will be permitted to include those payments in unpaid losses and how a taxpayer may obtain permission to change their accounting method for such payments. (Revenue Procedure 2004-41)  For each issue selected, an IIR team, consisting of IRS and Treasury personnel, gathers relevant facts from taxpayers or other interested parties affected by the issue. Their goal is to recommend guidance to resolve the issue. This benefits both taxpayers and the IRS by saving time and expense that would otherwise be expended on resolving the issue through examinations.IIR project selections are based on the criteria set forth in Revenue Procedure 2003-36. For each issue selected, a multi-functional team of IRS, Chief Counsel, and Treasury personnel will be assembled. The teams will gather and analyze the relevant facts from industry groups and taxpayers for each issue and recommend guidance. Requests for guidance on tax issues under the IIR program can be submitted at any time to IIR@irs.gov.

Posted on August 12, 2009


Hispanic Hotline

A Spanish phone line is now available for the clients of the Women's Business Center (WBC) at Cornerstone Alliance. The number is 269-925-0171. Additionally, a toll-free phone number is available at 1-866-477-9WBC.

Cornerstone Alliance Senior Vice President and Chief Operating Officer Greg Vaughn said, "We are pleased to be able to offer a Spanish line for the clients of the Women's Business Center and Cornerstone Alliance Small Business Services. Because we serve Berrien, Cass, and Van Buren counties it is important to us that, we insure that our services are accessible to anyone requiring our assistance."

The WBC provides assistance and/or training in finance, management, marketing, procurement, and the Internet, and addresses special topics such as home-based businesses, and welfare-to-work. The mission of the Women's Business Center is to provide women and others from diverse backgrounds, many of whom are facing social or economic barriers, with opportunities to develop the skills and acquire the knowledge needed to achieve financial independence.

The Women's Business Center at Cornerstone Alliance is partially funded by the SBA. All SBA programs are extended to the public on a non-discriminatory basis. Cornerstone Alliance is an equal opportunity employer and provider.

Posted on March 26, 2009


Michigan Business One Stop Shop

An online service making it easier to do business.

On behalf of Governor Jennifer M. Granholm, the Michigan Economic Development Corporation has launched the Michigan Business One Stop Shop, www.michigan.gov/business, a new state-of-the-art initiative that streamlines state services in one place providing Michigan entrepreneurs and busiensses 24 hour online access to state government.

The One Stop Shop will offer assistance to entrepreneurs and businesses with issues like licenses, permits, and tax registrations and offer features like safe and secure e-payments.  It is backed up by a dedicated call center with highly-trained customer service specialist available at (877) 766-1779.

This revolutionary new service is designed to help grow Michigan businesses. 

 

Posted on March 24, 2009