Today's The Day

The end of January is here and by now taxpayers should receive their income tax information (W-2’s and 1099’s) for correct tax filing. I am sure for the small business owner, “information returns” had to be one of your many priorities for the first month. It is important that workers are properly classified when preparing W-2 and 1099’s to ensure that the small business is in compliance with IRS regulations. The IRS looks at 3 areas to determine if a worker is an employee or independent contractor.

1. Behavioral control – the right to direct the performance of specific tasks

2. Financial control – the right to direct the financial opportunities of the worker

3. Relationships – Actions and agreements between the two parties

Be sure to review these areas before submitting your information returns in the coming months. The next deadlines will be here before you know it.

Keeping Your Business N Synergy

News Regarding IRA’s and the IRS

With the US economy trying to get a boost recently, those nearing retirement are worried about how their investments will perform. Well the IRS has stepped in and has given a bit more flexibility on penalties for early withdrawals (before age 59 ½). In a private ruling, the IRS stated a divorce related transfer will not incur a 10% penalty. Distributions from an IRA before age 59 ½ will not incur a penalty if the owner takes substantially equal annual payments over at least 5 years.

Watch Out though…if a payout change is made due to financial need and the payments change, all prior withdrawals will be hit with a penalty. Speak to your tax advisor for the details regarding IRA’s and their tax advantages.

Keeping your personal Business N Synergy

What’s In What’s Out This Tax Season

Thanks to everyone who attended our “Are You Getting All Your Tax Deductions?” seminar at the College Park Library this past Saturday. We will be having another session for tax season a week from today Wednesday Jan 23 2008 6:30-7:30PM if you were not able to attend. Reservations are required.

One of the topics was the expiring federal tax provisions for the upcoming years (actually to the year 2020). Check out the following information to ensure that you get all your tax deductions this season and beyond.

Listing of Expired Federal Tax Provisions

Keeping Your Business N Synergy

The 411 on 2/11

The IRS officially starts accepting tax returns for the 2007 tax season today, but the problem now lies with those taxpayers who file certain forms affected by the AMT patch. Those returns will be accepted a whole month. (February 11th 2007). If you file any of these forms you will have to wait another month:

New Features in QuickBooks 2008

- Education credits (Form 8863)
- Residential energy credits (Form 5695)
- Mortgage interest credit (Form 8396)
- Child and dependent care expenses on Schedule 2 of their Form 1040A

Be sure to speak with your tax advisor to see if you will be delayed this tax season

Keeping Your Business N Synergy

Winter Seminars for Individuals and Small Businesses

New topics to help individuals and small business owners save money, start your business successfully, and operate your business more efficiently. All seminars are FREE and will be at the College Park Library Meeting Room

3647 Main Street
College Park GA 30337
404-762-4060

Saturday Jan. 12 2008 2-3PM "Are You Getting All Your Tax Deductions?"

Wednesday Jan 23 2008 6:30-7:30PM "Are You Getting All Your Tax Deductions?"

Saturday February 9 2008 2-3PM "Start Your Business Successfully"

Wednesday February 20 2008 6:30-7:30PM "Start Your Business Successfully"

Saturday March 8 2008 2-3PM "Using Technology to Grow Your Business"

Wednesday March 19 2008 6:30-7:30PM "Using Technology to Grow Your Business"

Space is limited and reservations are required.

Stay on Track This Tax Season

Another tax season is here and I hope that everyone is ready. There have been a lot of tax laws changes so be sure to check your software for updates if you will be preparing your own return. If your tax advisor or tax preparation office will be doing the return, be sure to ask the person preparing the return if their software is up to date.

Buy Quicken and TurboTax Bundle & Save up to $25 + Free Shipping!

If you know that you will owe money, consider using the Electronic Federal Tax Payment System (EFTPS) service that is offered free.

Happy Filing Season

Keeping Your Business N Synergy

IRS cleans up the Block

Happy New Year everyone out there in blog land. As we close out the first week of 2008, everyone puts their focus from friends and family to all those bills and debt that piled up during the holidays. Many use their tax refunds to pay down those bills and they also request refund anticipation loans (RAL’s) when their taxes are prepared to get the money quicker. If you are not familiar with RAL’s check out this post from last year for more details.

Well the news coming from the IRS regarding RAL’s may finally stop the tax preparation shops (H&R Block, Jackson Hewitt, Liberty Tax) from offering these products because doing so encourages fraud. According to acting IRS Commissioner Linda Stiff, because the loans are often limited to the size of refunds, unscrupulous tax preparers might be tempted to inflate refunds to collect higher fees.

It is good to see that the IRS and Treasury Department are finally stepping in to regulate this part of the industry. I hope that this change is implemented swiftly.

Keeping Your Business N Synergy