CPA | TaxConnections

31 Jan 2014

5 Survival Tips For Tax Season

Tax Season Stress Relievers –

It’s almost that time of year that we all look forward to, especially accountants buckling down with their survival kits! It goes without saying that money and stress go hand in hand. For that reason it is easy to understand that the tax preparation season can be a stressful time of year for CPAs. It is not uncommon for them to put in 70-80 hours/week during the tax season including sleepless nights, lots of coffee, and weekends at the office. To help reduce some stress for our CPAs this tax season, we have put together a list of tips to help ease the stress and make these coming weeks as painless as possible: Read More

Written by Eric Larson | Posted in Individual • Tax Tips

20 Dec 2013

Tax Advisors Marketing For Tax Clients – Learn How These Tax Professionals Attracted The Attention of 1000s

Congratulations to Peter Scalise of Prager Metis CPAs, LLP who received the highest number of searches to his tax professional profile page on TaxConnections during 2013. With more than 7125 views in the year, everyone would like to know how Peter had so many prospective clients paying attention to his tax services. The answer is he utilized every feature available on www.taxconnections.com to build visibility and trust for his tax services and expertise. Marketing experts know that you need to build familiarity with clients first, familiarity builds trust, and trust is why people come to you for tax services. There are many of our gold annual members who made it to the top of the search results in TaxConnections including: Brian Mahany, Hugo van Zyl, Kathryn Morgan, Howard Liebman, Larry Langdon, Steven Potts and so many others who took the lead in marketing their tax reputations online Read More

Written by Kat Jennings | Posted in TaxConnections

20 Nov 2013

Are You Missing the Boat? Do You Find Tax Credits Too Complex? We Don’t!

Today, there currently are nearly 3,000 tax credits and incentives programs in the United States, sponsored by federal, state and local governments to drive job creation, employee training, capital investment and new business development. These statutory and negotiated opportunities – including point-of-hire tax credits, to property & sales tax incentives, to utility & infrastructure abatements, to name a few – are available to companies of all sizes, across a broad range of industries.

But a relatively small number of companies, regardless of their size or financial sophistication, are benefiting fully from the tax credit and incentive-related benefits to which they are entitled. Industry estimates suggest that fewer than 25 percent of eligible US businesses participate in Read More

Written by Eric Larson | Posted in Affordable Healthcare Act • Corporate • Federal • Individual • IRS • North America • Tax Policy

15 Nov 2013

California’s Governor Brown Signs Bill Increasing Minimum Wage – Increasing Enterprise Zone Credit Value

Governor Brown has signed AB 10 which will increase the minimum wage from $8 an hour to $9 an hour on July 1, 2014 and again to $10 an hour starting January 1, 2016.

An unintended consequence of the legislation will be an increase in the amount of Enterprise Zone tax credits qualified employers will be able to claim. Employers may still claim credits for qualified employees hired through December 31, 2013 for up to five years of employment. The credit is calculated as a function of the hourly wage with a limit of 150% of the minimum wage per hour. Currently, the maximum credit an employer can claim is $12 for an hour of qualified work; starting in July of next year that cap will increase to $13.50. Read More

Written by Eric Larson | Posted in Individual • North America

23 Oct 2013

CPAs: Review California Clients Today for Enterprise Zone Credits (Up to $50,000 Per Qualified Employee)

On June 27, 2013, the California State Assembly passed AB 93, which eliminates the current Enterprise Zone (EZ) program, replacing it with a new set of incentives, which will be statewide in application. This change requires businesses to take action now to get the most out of existing credits while also preparing to take advantage of the new credits that will be effective January 1, 2014.

The EZ program was first established in 1986 and has been used to attract business to depressed areas in California and to support new and existing businesses located in depressed areas of the state. The program has allowed qualified businesses to claim hiring credits on qualified employees and sales tax credits on qualified purchases.

Do your clients need help understanding the immediate steps they must take? If your clients (CPAs: review your California clients) are in one of California’s 42 EZs, pay California income tax, and have employees, they are a prime candidate to review the various credits that remain available. These credits and refunds can be reviewed for the last four (4) open tax years. The time to act is now. After December 31, 2013 — your clients will have forfeited up to $50,000 per qualified employee. Read More

Written by Eric Larson | Posted in Corporate • Individual • North America • Sales/Use Tax • Specialty Tax Incentives • State And Local Tax (SALT) • Tax Controversy • Tax Policy • Tax Provision/Tax Reporting

27 Sep 2013

CPAs Can Help Clients Stave Off IRS Scrutiny

Preventing A Challenge To (Un)Reasonable Compensation- CPAs Can Help Clients Stave Off IRS Scrutiny With A Little Foresight

As the IRS increases scrutiny of executive compensation, CPAs need to proactively advise their clients on how to withstand these inquiries. As a result of IRS training initiatives, three types of entities draw the most attention and therefore need good advice from CPAs.

(1) closely-held C corporations are examined to determine whether they have overpaid their shareholder-employees. These corporations are allowed to deduct only “reasonable” compensation paid to shareholder-employees. So, examiners are looking for a disguised dividend, which is corporate profit being treated as compensation. Since a dividend is not deductible, but compensation is, the IRS may treat the portion of the compensation that it considers excessive as a dividend. The result is that the corporation loses its deduction for that amount and is assessed tax, interest, and penalties on the resulting increase in income.

(2) S corporations are audited to determine whether they have underpaid their shareholder-employees. These shareholders may have set their own pay levels unreasonably low and simultaneously increased their profit distributions. Since compensation is subject to payroll taxes, but distributions are not, some tax savings can Read More

Written by Harold Goedde | Posted in Corporate • Federal • IRS • United States

03 Apr 2013

What Is An Enrolled Agent (EA) And Why Is This Designation Superior To Certified Public Accountant (CPA)

The Enrolled Agent (EA) is arguably the longest standing professional tax designation. Although at times overshadowed by other tax professionals EA’s are the only federally licensed tax practitioners who specialize in taxation.

The EA was established in 1884 when Congress acted to regulate persons who represented citizens in their dealings with the U.S. Treasury Department. Only Enrolled Agents, Attorneys and CPA’s have unlimited rights to represent taxpayers. Enrolled Agents focus specifically on the US Tax Code.

To become a candidate for the EA designation one must pass the Special Enrollment Exam (SEE), a three-part examination covering Individuals, Businesses, and Representation, Practices and Procedures. If successful an EA candidate is then subjected to a rigorous background check conducted by the IRS. Once approved as an EA each person must fulfill annual continuing education requirements.

Empowered by the U.S. Department of the Treasury, Treasury Circular 230 provides the rules of practice for Enrolled Agents as well as certified public accountants, and tax attorneys; with oversight provided by the Office of Professional Responsibility (OPR).

Due in large part to the stringent testing required to become an enrolled agent and the requirements to maintain the license, there are only about 46,000 practicing enrolled agents.

Basically Enrolled Agents are federally authorized with licenses issued by the US Treasury enabling practice in all states in the United States. Alternatively CPA’s are state licensed and as such can only practice in the states where they are licensed.

Ultimately though the biggest difference is that the most astute CPA’s rely on the expertise of Enrolled Agents when seeking clarity on the US Tax Code.

Written by John Dundon | Posted in TaxConnections

01 Mar 2013

No, We Can’t. Yes, We Can!

A while back Seth Godin did a blog post online titled, “On Behalf of Yes”

It struck a cord with me on how many times, inside public accounting firms, partners, managers and even team members lean towards thinking, “No, we can’t.”

While it comes to understanding complex tax laws and changing to comply with those demands and performing audit services with the utmost perfection, CPAs think – “Yes we can, this is our profession and we love this stuff.”

Yet when it comes to taking care of their own business, keeping pace with the times and what is going on in the management world, CPAs think, “No way, I like things just the way they are. It’s worked well for us all these years.”

What have the most successful firms embraced? They have embraced a YES attitude.

– Nearly 30 years ago, most CPAs did not believe an administrative person could plan CPE, select the right people to hire, lead the marketing efforts and help bring the newest technology into the firm. Then they discovered the power of hiring a firm administrator.
– We cannot advertise. It’s not professional and we don’t know how. Yes, we did.
– I remember one of my first “No, we can’t” situations. We can’t possibly do away with our legal size files and move to letter size. Yes, we did.
– No, we cannot let someone work a flexible schedule. Yes, we did.
– No, we simply cannot put a computer on everyone’s desk. Yes, we did.
– No, we cannot go paperless. Yes, we did.
– No, we cannot allow our people access to the internet. Yes, we did.
– No, we cannot get into all of this social media stuff. Yes, we did.

You might not even be aware you are displaying a “No” attitude and demeanor. Become aware! Stop thinking and saying “No” and identifying all the reasons why something cannot be done.

Think of the kid’s show “Bob the Builder“. His motto: