By TaxGuruHelp.com January 26, 2012
Review ...read more
By Scott Smith August 05, 2011
"Angela worked on my team at TravelCLICK (TC) as a Manager supervising the General Ledger team in the accounting organization. TC is a global technology services company doing business in over 100 countries. Her performance was uniformly excellent both in terms of her team's timely and accurate output and her skills as a manager. Angela guided her group through a difficult implementation of what we found out was a "not-ready-for-Prime-Time" update release of Oracle Financials. The software was extremely buggy and in need of heavy recoding and testing. The implementation overlapped both a year end and a sale of the company, and somehow everything got done as needed with minimal disruption to the business. Since I left TC, I have engaged Angela as a consultant at a subsequent company where I was CFO and recommended her without reservation to companies both large and small in all stages of development. This includes the business my wife owns and operates. Scott E Smith ...read more
By Scott Smith August 04, 2011
"I have engaged Angela as a consultant at a subsequent company where I was CFO and recommended her without reservation to companies both large and small in all stages of development. This includes the business my wife owns and operates, which sums up the confidence and trust I have in Angela's skills as a resource. She is a well-rounded accounting professional with technical strength in process improvement and internal controls. She is also a highly skilled manager and developer of people, and has the ability to maintain a fun, positive attitude even during times of great stress." ...read more
The Internal Revenue Service recently launched a new program that will enable many employers to resolve past worker classification issues and achieve certainty under the tax law at a low cost by voluntarily reclassifying their workers. This new program will allow employers the opportunity to get into compliance by making a minimal payment covering past payroll tax obligations rather than waiting for an IRS audit. This is part of a larger “Fresh Start” initiative at the IRS to help taxpayers and businesses address their tax responsibilities for which employers face no deadline. “This settlement program provides certainty and relief to employers in an important area,” said IRS Commissioner Doug Shulman. “This is part of a wider effort to help taxpayers and businesses to help give them a fresh start with their tax obligations.” The new Voluntary Classification Settlement Program (VCSP) is designed to increase tax compliance and reduce burden for employers by providing greater certainty for employers, workers and the government. Under the program, eligible employers can obtain substantial relief from federal payroll taxes they may have owed for the past, if they prospectively treat workers as employees. The VCSP is available to many businesses, tax-exempt organizations and government entities that currently erroneously treat their workers or a class or group of workers as nonemployees or independent contractors, and now want to correctly treat these workers as employees. To be eligible, an applicant must: > Consistently have treated the workers in the past as nonemployees,> Have filed all required Forms 1099 for the workers for the previous three years> Not currently be under audit by the IRS, the Department of Labor or a state agency concerning the classification of these workers Interested employers can apply for the program by filing Form 8952, Application for Voluntary Classification Settlement Program, at least 60 days before they want to begin treating the workers as employees. Employers accepted into the program will pay an amount effectively equaling just over one percent of the wages paid to the reclassified workers for the past year. No interest or penalties will be due, and the employers will not be audited on payroll taxes related to these workers for prior years. Participating employers will, for the first three years under the program, be subject to a special six-year statute of limitations, rather than the usual three years that generally applies to payroll taxes. A taxpayer participating in the VCSP will agree to prospectively treat the class or classes of workers as employees for future tax periods. In exchange, the taxpayer: > Will pay 10 percent of the employment tax liability (just over one percent of the wages paid ) that may have been due on compensation paid to the workers for the most recent tax year, determined under the reduced rates of section 3509(a) of the Internal Revenue Code.> Will not be liable for any interest and penalties on the amount; and> Will not be subject to an employment tax audit with respect to the worker classification of the workers being reclassified under the VCSP for prior years. Shulman and Secretary of Labor Hilda Solis signed an agreement earlier this week to improve their coordination on preventing businesses from misclassifying employees as independent contractors. Under the program, eligible employers can obtain substantial relief from federal payroll taxes they may have owed in the past, if they prospectively treat workers as employees. The VCSP is available to many businesses, tax-exempt organizations and government entities that currently erroneously treat their workers or a class or group of workers as non-employees or independent contractors, and now want to correctly treat these workers as employees. If you believe that you are about to be audited or investigated for your worker classifications – perhaps because a former worker or a competitor is about to blow the whistle or he already made a claim for unemployment benefits or workman’s comp, please call us to find out if you should be participating in this amnesty program. ...read more
By SK Tax Associates, CPAs January 26, 2012
IR-2011-95, Sept. 21, 2011 WASHINGTON – The Internal Revenue Service today launched a new program that will enable many employers to resolve past worker classification issues and achieve certainty under the tax law at a low cost by voluntarily reclassifying their workers. This new program will allow employers the opportunity to get into compliance by making a minimal payment covering past payroll tax obligations rather than waiting for an IRS audit. This is part of a larger “Fresh Start” initiative at the IRS to help taxpayers and businesses address their tax responsibilities for which employers face no deadline. “This settlement program provides certainty and relief to employers in an important area,” said IRS Commissioner Doug Shulman. “This is part of a wider effort to help taxpayers and businesses to help give them a fresh start with their tax obligations.” The new Voluntary Classification Settlement Program (VCSP) is designed to increase tax compliance and reduce burden for employers by providing greater certainty for employers, workers and the government. Under the program, eligible employers can obtain substantial relief from federal payroll taxes they may have owed for the past, if they prospectively treat workers as employees. The VCSP is available to many businesses, tax-exempt organizations and government entities that currently erroneously treat their workers or a class or group of workers as nonemployees or independent contractors, and now want to correctly treat these workers as employees. To be eligible, an applicant must: > Consistently have treated the workers in the past as nonemployees,> Have filed all required Forms 1099 for the workers for the previous three years> Not currently be under audit by the IRS, the Department of Labor or a state agency concerning the classification of these workers Interested employers can apply for the program by filing Form 8952, Application for Voluntary Classification Settlement Program, at least 60 days before they want to begin treating the workers as employees. Employers accepted into the program will pay an amount effectively equaling just over one percent of the wages paid to the reclassified workers for the past year. No interest or penalties will be due, and the employers will not be audited on payroll taxes related to these workers for prior years. Participating employers will, for the first three years under the program, be subject to a special six-year statute of limitations, rather than the usual three years that generally applies to payroll taxes. A taxpayer participating in the VCSP will agree to prospectively treat the class or classes of workers as employees for future tax periods. In exchange, the taxpayer: > Will pay 10 percent of the employment tax liability (just over one percent of the wages paid ) that may have been due on compensation paid to the workers for the most recent tax year, determined under the reduced rates of section 3509(a) of the Internal Revenue Code.> Will not be liable for any interest and penalties on the amount; and> Will not be subject to an employment tax audit with respect to the worker classification of the workers being reclassified under the VCSP for prior years. Shulman and Secretary of Labor Hilda Solis signed an agreement earlier this week to improve their coordination on preventing businesses from misclassifying employees as independent contractors. Under the program, eligible employers can obtain substantial relief from federal payroll taxes they may have owed in the past, if they prospectively treat workers as employees. The VCSP is available to many businesses, tax-exempt organizations and government entities that currently erroneously treat their workers or a class or group of workers as non-employees or independent contractors, and now want to correctly treat these workers as employees. If you believe that you are about to be audited or investigated for your worker classifications – perhaps because a former worker or a competitor is about to blow the whistle or he already made a claim for unemployment benefits or workman’s comp, please call us at 847.524.0001 to find out if you should be participating in this amnesty program. ...read more
By SK Tax Associates, CPAs November 15, 2011
If you own or have authority over a foreign financial account, then you may be required to disclose the bank account annually to the Internal Revenue Service. The IRS is eying over $100 billion in unpaid FBAR back taxes stashed in offshore accounts. So, don’t wait for the IRS to come after you. Each United States personmust filea Report of Foreign Bank and Financial Accounts (FBAR), if 1. The person has a financial interest in, or signature authority (or other authority that is comparable to signature authority) over one or more accounts in a foreign country, and2. The aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year. 100%of our clients are FBAR compliant over past few years and they enjoy peace of mind now. We are surprised to learn how thousands of taxpayers who were required to file this form were not even educated about this requirements. We are working with quite a few clients to make them compliant for this requirements either by filing late returns or amending prior returns or applying for OVDI as the case require. Definition of Terms: A“United States person”includes a citizen or resident of the United States, or a person in and doing business in the United States. Whether a person is considered, for FBAR purposes, to be in, and doing business in the United States is determined based on an analysis of the facts and circumstances of each case. Taxpayer and spouse are considered separate person for this purpose. You can be considered resident for tax purpose even if you are not permanent resident for immigration. So if you are filing your tax return as a resident (regular 1040 – and not 1040NR), you are covered under this definition. A“foreign country”includes all geographical areas outside the United States, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, and the territories and possessions of the United States (including Guam, American Samoa, and the United States Virgin Islands). A“financial account”includes any bank, securities, securities derivatives or other financial instruments accounts including mutual funds. The term includes any savings, demand, checking, deposit, or any other account maintained with a financial institution or other person engaged in the business of a financial institution. Individual bonds, notes, or stock certificates held by the filer are not a financial account nor is an unsecured loan to a foreign trade or business that is not a financial institution. Retirement accounts and life insurance policies with cash value are considered financial accounts. The“maximum value of account”is the largest amount of currency and non-monetary assets that appear on any quarterly or more frequent account statements issued for the applicable year. Reporting and Filing Information: A person who holds a foreign account may have a reporting obligation even though the account produces no taxable income. Checking the appropriate block on Form 1040 Schedule B, and filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, satisfies the account holder’s reporting obligation. A foreign account holder must mail the Form TD F 90-22.1 so that it isreceived on or before June 30of the following year. Post mark on June 30 is considered late. The FBAR is not required to be filed with the filer’s Federal income tax return. Postmark dated June 30 is not considered to be filed on time. The Form must be received by June 30th. The granting, by IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR. There is no extension available for filing the FBAR. Penalties: IRS has announced that it intends to vigorously enforce penalties for non-compliance. The maximum penalties for failure to file are as follows: Civil Penalties:$10,000 for non-willful noncompliance$100,000 or 50% of the amount of underlying accounts balance at the time of the violation if determined to be willful Criminal Penalties:$250,000 fine and 5 years imprisonment$500,000 fine and 10 years imprisonment if in tandem with any other US law If you fail to file the form in time: Taxpayers who failed to file FBARs but have properly reported and paid taxes on all taxable income will not be penalized if they properly file them and attach a statement explaining why the report or reports are late. They should do so without using the voluntary disclosure process. Please contact us immediately if you failed to reported this form in the past. Voluntary Disclosure: In 2009, Delinquent taxpayers had an option to use the IRS’ amnesty / Voluntary Disclosure program that expired on October 15, 2009 to catch up on past years’ failures to report accounts and/or related income and reduce certain penalties and risks of criminal prosecution by the IRS Criminal Investigation (CI) division. More than 14,000 US taxpayers who had secret bank accounts disclosed voluntarily on IRS amnesty program. Based on the billion plus dollar success of the offshore account FBAR amnesty program, the IRS has staffed up to find those offshore account holders who didn’t take the opportunity to avoid jail time. The IRS expects to get another $9 billion in back taxes over the next few years from offshore bank account holders. In February 2011, IRS once again announced Offshore Voluntary Disclosure Initiative (OVDI).CLICK HEREto learn more about OVDI 2011. A United States person can own foreign accounts. The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. The FBAR is a tool to help the IRS identify persons who may be using foreign financial accounts to circumvent United States law. Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad. If you own any financial or security account in any foreign country, consult your tax adviser to obtain FBAR compliance and reduce severe IRS penalties. If you have any questions on whether you are subject to FBAR or if you think you missed reporting it for any of the prior years, feel free to contact us at 847.524.0001 for a confidential call. Circular 230 Disclaimer:To ensure compliance with the requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any links or attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. Source: SKTaxes.com ...read more
By SK Tax Associates, CPAs November 15, 2011
Payroll accountants are responsible for tracking the expenditure of money and assets through a company. Their job is to help companies track their income and maintain a timely payment record for expenses and bills. If you are interested in becoming a payroll accountant, you will have to be... ...read more
Computer files can sometimes be deleted by accident, get lost or damaged. This could be a potential nightmare, especially if these are small business accounting files. You have peace of mind by knowing how to use the "Backup and Restore" function in Microsoft Small Business Accounting. With a few keys... ...read more
