This is my latest information from California DDS its a bit long to post, but here is the link. I hope this is helpful to you. If you have further questions, please post to this site or call me. I am more than happy to help. DDS Audit Letter
We will update you are we have more information.
Bob Rojas
Tags: CPA Audit DDS, DDS Audit, DDS Review, DDS Vender, DDS Vendor, Quickbooks and DDS
Recently PC Magazine published an article on how to stay safe on the internet. These are basic ideas but I thought worth repeating. Good advice is always worth repeating.
1. If you write into blogs, don’t use your e-mail address as your user name. Spammers and Web Crawlers love to copy these off public places and send your lots of span and ads. Don’t put your email address in any Facebook comments. Just because you have good privacy settings does not mean all your friends have good privacy settings.
2. Do not write back to spammers. Your angry note asking the to remove you from their list actually verifies your address. They can now sell your email address as confirmed and charge more money.
3. I know you are smarter than this, but do not click links from people you do not know. The bigger the prize the bigger the hoax. You always hope your anti virus software will protect you, but how lucky do you feel?
4. Do not give people your password. They may only want the password for a harmless log in. The problem is that that password may also give access to your credit card or bank account.
5. Do not do banking over public WiFi. You have no idea how secure the network is. The shop owner may be saving every bit of your info which passes through his server. The guy next to you could use Firesheep to copy your session. Only use secure networks for your finances.
These are really basic simple steps, with no guarantees, but they are a good start.
Yi Grizzell
This is from the IRS Web Page and I hope you find it interesting.
“IRS Tax Tip 2011-71, April 11, 2011
After you file your taxes, you will have many records that may help document items on your tax return. You will need these documents should the IRS select your return for examination. Here are five tips from the IRS about keeping good records.
Links:
New IRS ruling gives businesses a break. Need to re classify a worker? Read this straight from the IRS guidelines.
New IRS rule on worker classification If you had employees classified as contract workers here is an easy way to get them back on your payroll and avoid an audit. The above link gives you the whole code, but the meat of the article says:
“The new Voluntary Classification Settlement Program (VCSP) is designed to increase tax compliance and lower the 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:
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.”
There are some penalties, but not interest or fines. Cost is approx 1% of total wages for 1 year. As always, I recommend consulting your CPA tax professional on this mater before taking any action.
Low gross profit margin
High auto expenses
High business use of autos
Number of Autos used in the business
High travel and entertainment
Little or no profit from business operations
High number of deductions
Estate tax return
At home office
Official documents which are incorrect
Large casualty loss deduction
The IRS.gov website claims audits are triggered by:
Tags: Audit, how to avoid an irs audit, irs audit
Help for IRS Audits
We’re seeing an increase in IRS audits in 2011 for 2009 and 2010 returns. Restaurants are being audited. Individuals with schedule Cs are being audited for travel; automobile; and meals and entertainment.
TIP ONE: If you’re audited, never represent yourself. We’ve represented two tax attorneys in the past! Taxpayers talk too much and give the IRS too much information. We’ve been retained by 3 new clients this week alone. Each will be represented by one of two MBAs in tax.
TIP TWO: Be respectful. The IRS will not go away. If the notice says reply in 10 days, reply in 10 days.
TIP THREE: Hire a representative that knows the rules but is there to win for you.
TIP FOUR: NEVER GIVE UP ON THE NEGOTIATION. If the IRS is correct and there is no documentation for certain deductions or if income is not reported, and if they find it, remember you can always try to set up a payment plan.
TIP FIVE: If there is an IRS audit adjustment remember to amend the state return immediately.
TIP SIX: Be optimistic. Get some sleep. We can’t guarantee anything but the last two audits we just closed, the taxpayers got refunds.
Tags: 2010 taxes, 2011 taxes
More good news for those of us with College Students
The tax code gives many tax incentives for parents and students who are saving for, or already paying, higher education costs or are trying to re pay student loans.
There is a Hope and Lifetime Learning Credit for the qualified tuition and related expenses of the students in your family (i.e., you, your spouse, or an eligible dependent) who are enrolled in eligible educational institutions. Different rules apply to each credit. If you claim a Hope Scholarship Credit for a particular student, none of that student’s expenses for that year may be applied toward the Lifetime Learning Credit.
You may be able to claim a tuition deduction of up to $4,000 of qualified education expenses paid during the year for yourself, your spouse, or your dependent. You cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return. The qualified expenses must be for higher education.
You may be able to deduct interest you pay on a qualified student loan. If your student loan is canceled, you may not have to include the amount as income. The deduction is claimed as an adjustment to income so you do not need to itemize your deduction using schedule A form 1040.
The tax code has something for everyone!
This Blog is about accounting and taxes, however the point of both these topics is to save money. I will sometimes digress to money saving tips. These will include topics from travel to entertainment to real estate. As my Uncle Joe always said “A buck is a buck.”
My family has been using Netflix for the past four years. Netflix recently raised their prices. Now as the marketplace evolves there are now more choices.
Amazon.com now offers movie streaming to Amazon Prime customers for free. Amazon Prime customers pay $79/ year and get free 3 day shipping for 1 year. This membership also lets people do free movie streaming from Amazon, however the access is a bit restricted and for more current movies you have to pay .99 to 5.00 for a movie for 40-48 hours.
Blockbusters.com has been reduced to just $10/month. Its a great alternative to premium movie channels. This is a great solution to Dish Network subscribers. This is not an option if you are not a Dish Network customer.
Personally I find Netflix is still the best deal and when I want something not available to Netflix I just rent a RedBox video for 1.00.
I look forward to future price drops and choices from the free market.
Tags: blockbuster, cheap entertainment, money, netlfix, video
This is the time of year when everyone starts thinking about changing accountants. Here’s my list of what you should look for in your new or existing CPA.
1. Do they represent their client base well in front of the Internal Revenue Service. How would you know this? Ask about him about his experiences within the last twelve months. What were the issues and how were they resolved.
2. Can they tell you exactly how much money they save you every year? You should be able to ask him this.
3. Tax laws change every year. Is he asking you new questions about your return every year. An example of this is estate tax rules. Is he letting you know about estate rule changes.
4. Has his firm completed Peer Review yet? All firms are now required to submit to this evaluation. What were the findings?
5. Is he a one man show? No one is an expert in everything. A good firm has several accountants with different talents. The best tax accountant may not be who you want representing your case with the IRS. A good researcher may not make you the best deal with an IRS agent.
I was talking with a client, an airline pilot, about travel expense record keeping. He uses a great system. Use your I Phone or Smart Phone to input expenses as they happen in your calendar. As soon as the check comes from dinner, he puts the amount and location. At the end of the month his costs are all in one place and its easy to have a clean record for his accountant. This is a simple way to get all the deductions you can while keeping the pain and suffering to a minimum.
Tags: ftb, IRS, taxes, travel expenses
