DID YOU FORGET YOUR JUNE 15TH ESTIMATED PAYMENT? HOW TO PREVENT MISSED QUARTERLY TAX PAYMENTS

Like most of us, something that only has to be done four times a year is often forgotten.  And so it goes with quarterly estimates.  These late or forgotten payments can cause you to incur underpayment penalty.

The US Treasury offers a payment mechanism that may help. It is the “Electronic Federal Tax Payment System,” or “EFTPS” for short.

EFTPS is a secure, free system where, after enrollment, you can schedule required quarterly federal payments up to one year in advance.  […]

THE ROTH 401(K) – A GOOD ALTERNATIVE TO THE ROTH IRA?

Brian Wynne, CPA

As my colleague mentioned last week, the income limitations on Roth IRA conversions (moving qualified retirement plan or traditional IRA assets into a Roth IRA) were removed beginning in 2010.  That change opens the door for all taxpayers to take advantage of the Roth IRA – specifically the tax-free growth (as opposed to tax-deferred in a 401(k) or traditional IRA) and the lack of required minimum distributions (RMDs).  You pay the tax once on conversion to move […]

0 PROTECTING YOUR TAX IDENTITY

An estimated nine million people each  year are subject to identity theft based on reports from the Federal Trade Commission.  This is certainly an alarming figure and this type of fraud can take many forms.  Thieves have been targeting victims to commit credit card, utilities and bank fraud.  Most people are aware that checking your credit score and monitoring other online banking reports help to determine if your identity has been stolen.

Your tax returns can be subject to fraud, […]

THE NEW HIRE ACT HIRING INCENTIVES AND RETENTION CREDIT. IS YOUR SPOUSE ELIGIBLE?

Glenn Bailey, CPA

A new law can provide you a payroll tax savings for hiring new workers, and may allow you to take advantage of them if you hire your spouse. The Hiring Incentives to Restore Employment Act, P.L. 111-147 provides two tax benefits for employers that hire workers this year: payroll tax forgiveness for hiring unemployed workers and a tax credit for as much as $1,000 for keeping them on the payroll for at least one year.

Under this […]

THE TAX MAN COMETH!

Like most tax professionals, I am relieved that April 15th has now come and gone.  As a member of the tax department here at Bond Beebe, tax compliance has been the center of my universe for the past three and a half months.  With many returns completed and the rest safely extended, my thoughts now turn to other areas of tax practice, including representing various clients in audits before the IRS and other state and local taxing authorities.  This […]

ELECTRONIC TAX FILING IS IN YOUR FUTURE – ARE YOU READY?

Glenn Bailey, CPA

Electronic tax filing (or e-filing) is a process where tax returns are submitted to the Internal Revenue Service or your state’s department of taxation through the Internet or direct connection, usually without the need to submit any paper documents.  E-filing can be done through tax preparation software programs, Web sites run by software producers or state tax departments, or by your tax professional.

Have you e-filed your tax return yet?  According to the IRS, 87 million of the […]

Snow Bound Musings: The Tax Implications of Telecommuting

Like most people in the Mid-Atlantic states, I spent most of last week stuck at home as a virtual prisoner of the snow storms that pounded our area beginning on February 5.   During this period, the “busy season” for accountants and tax preparers, these lost work days could have been disastrous.  Fortunately, by using computer technology, most of the professionals in my firm were able to remain productive and work remotely from home.

With the proliferation of computer technology and […]

PLANNING FOR ESTATE TAXES

Glenn Bailey, CPA

The New Year commencing January 1, 2010 brought the repeal of Federal estate and generation skipping transfer taxes, while retaining transfers on gifts with the highest gift tax rate of 35%.  This dawn of the post estate tax era, which was created through legislation enacted in 2001, led some to conclude the best planning for certain taxpayers was to pass on during the one year window of 2010 and escape estate taxation.  Absent corrective legislation, estate and […]

THE RETURN OF THE REQUIRED MINIMUM DISTRIBUTION

Brian Wynne, CPA

Because of the economic downturn in late 2008, the federal government allowed taxpayers to skip required minimum distributions from their IRAs and qualified retirement plans for 2009 only.  The purpose of the suspension was to avoid forcing taxpayers to sell stock while at its weakest if the taxpayer didn’t need the money.  As we move into the New Year, don’t forget that these required distributions are now back in place.

Required Minimum Distributions (RMDs) are payments that must […]

YOUR TAX PREPARER IS A FRIEND

Individual tax return preparation is in many ways like putting together a jig saw puzzle without  seeing the picture on the box. Unless the preparer has intimate knowledge of the taxpayer’s situation, he/she must rely solely on the information provided and ask questions when items appear to be missing. A picture of the tax situation, given this information and answers to those questions will soon emerge. Will  it be the correct picture? That will depend on completeness of the […]