|
|
|
| Quick Links | |
My Nohre
Clients Only
|
|
2012 Mileage Rates | |
With gas prices rising, will IRS raise the standard mileage rate at midyear?
 There's a good chance. When the price of gasoline spiked in the first half of 2008 and 2011, the IRS boosted the standard mileage rate by 8 cents per mile and 4.5 cents per mile, respectively, effective for the final six months of those years. This year, the price at the pump is expected to keep increasing throughout the spring, high enough to trigger another adjustment. Any hike will likely be announced in June.
Source: Kiplinger Letter 03-16-2012 |
|
Employment numbers from the Bureau of Labor Statistics | |
Some recent employment trends from the Bureau of Labor Statistics:
In August 2011, 14.5 million people were self-employed, a decline of 2.1 million from the number of self-employed reported in December 2006.
In October 2009, women held 49.99% of U.S. jobs. The current percentage of women in the job force is 49.4%.
As the employment numbers improve, it's noteworthy that the majority of new jobs are being filled by men rather than women. An estimated 1.28 million men found jobs in 2011 compared with 600,000 women. |
|
|
|
IRS expands "Fresh Start" program for those who owe taxes | |
Taxpayers who are struggling to pay their taxes may get some relief from the IRS's expansion of its "Fresh Start" initiative, a program started back in 2008. The new Fresh Start provisions provide penalty relief to the unemployed and make installment agreements for paying taxes available to more people.
Normally, a failure-to-pay penalty of one-half of one percent per month, up to a 25% maximum, is charged for overdue taxes. The "Fresh Start Penalty Relief" initiative gives eligible taxpayers a six-month extension to fully pay 2011 taxes -- that is until October 15, 2012, before the penalty begins to apply. Interest of 3% will still be assessed starting from April 17, 2012.
The penalty relief is available to workers who have been unemployed at least 30 consecutive days during 2011 or 2012 and to self-employed individuals who experienced a 25% or larger reduction in business income in 2011 due to the economy. Income limits apply: the relief is not available to singles with adjusted gross income over $100,000 or to couples with income over $200,000. Also, taxes due cannot exceed $50,000.
The Fresh Start program also changes the eligibility threshold for streamlined installment agreements from $25,000 to $50,000 and increases the maximum term for these agreements from five to six years.
For details or tax assistance, contact your Nohre & Co., S.C. Account Manager @ 715.834.2225. |
|
What if you can't file your 2011 tax return on time? | | If you need more time to file your 2011 income tax return, you can get an extension -- and no explanation is necessary.
You may have a very good reason for wanting more time to file your 2011 individual income tax return. For instance, you might want to hold off funding a retirement plan such as a Keogh or SEP until you can save more money. Perhaps you're waiting for a tax form from a trust, a partnership, or an S Corporation. Or maybe you've just been busy.
It doesn't matter. Whatever the cause or motivation, you can usually put off filing for up to six months beyond April 17. That means you could have until October 15, 2012, to finalize your return -- assuming you follow the rules.
Here's what you need to do:
* Estimate your total tax liability for 2011, subtract what you've already paid in withholding or estimated payments and remit most or all of the balance, and
* File an extension request form (generally Form 4868 for an individual return) by April 17.
You can file the extension request form electronically, by phone, or by mailing it to the IRS. If you owe taxes, you can pay with an electronic funds transfer, your credit card, or a check.
Requesting an extension for your personal return also gives you additional time to file a gift tax return for 2011. The gift tax return extension is automatically included. You don't even have to check a box. But if you owe gift tax (or generation skipping transfer tax), or are requesting an extension only for a gift tax return, you'll need to use Form 8892.
One more quirk: If you live and work outside the United States, you may qualify for an automatic two-month extension of time to file without having to send in a form.
If you have special circumstances such as military service, or think you might have difficulty paying the tax due with your extension, please contact us. We can help you work through the rules.
Please contact your Nohre & Co., S.C. Account Manager for assistance with an extension @ 715.834.2225. |
Peachtree 2012 Payroll Problem | |
The problem seems to be with users who upgraded from older versions of Peachtree and have switched from user-maintained tax tables to the Peachtree tax service. A simple test is to generate a summarized Tax Liability Report for the current quarter.
- If the test looks like the wrong FUTA or missing FICA/Med, then knowledge base article kb28739 needs to be performed on your company file.
- Also, user-maintained tax formulas that are not needed should be deleted so they don't override the formulas provided by the Peachtree payroll tax service.
If you need assistance with this maintenance please contact your Nohre & Co., S.C. Account Manager @ 715.834.2225.
Payroll checks entered in the 2012 Payroll Year are not calculating correctly due to payroll fields not resetting to zero after running the Year End Wizard.
|
|
|
IRS impersonation schemes flourish during filing season.
The IRS does not send taxpayers unsolicited emails about their tax accounts, tax situations or personal tax issues. If you receive such an email, most likely it's a scam. |
| Nohre & Co. CPA Firm Wishes You a ... |  |
|
|
|
Internal Control Framework | |
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has released an exposure draft updating its nearly 20-year-old internal control framework.
A small business has limited resources, and management must be active and vigilant to protect those resources. Good internal controls help you manage resources and make sure operations are efficient and effective.
The definitions of internal control and objectives of the framework have not changed. Internal control is defined as a process designed to assure three objectives
- reasonable assurance of effectiveness and efficiency of operations;
- reliable reporting; and
- compliance with laws and regulations.
COSO wanted to provide greater clarity on how to design and maintain an effective system of internal control. They have updated the original control framework to adapt to increasing complexity, mitigate risks and support sound decision making.
The final framework is scheduled for release in the fall of 2012. The full text of the updated framework can be found at www.ic.coso.org .
Submitted by: Drew Schulner, CPA
Source: Journal of Accountancy, COSO Releases Draft of Updated Internal Control Framework |
|
Essential Windows 7 Shortcuts |  Windows provides many shortcuts to executing a command which may eliminate three or four clicks with your mouse to find the ultimate icon you are trying to find. Shortcuts combine two or more keys pressed simultaneously that each key will not do if individually pressed. For example, you can navigate to the file menu and select the print command, or you can press the Ctrl button and the letter P simultaneously. They can be big time savers. Here are 20 shortcuts for starters that might help you become more productive.
Get to know the basics
There are certain shortcuts I use all day, every day. They work whether I'm doing stuff with photos, music, documents, or spreadsheets.
- Copy a selected item: Ctrl+C
- Cut a selected item: Ctrl+X
- Paste a selected item: Ctrl+V
- Undo an action: Ctrl+Z
- Redo that thing I just undid: Ctrl+Y
- Select everything: Ctrl+A
- Print: Ctrl+P
Manage open windows
Chances are you use your PC to do a lot of things at once. Shortcuts go a long way towards cutting the clutter.
- Switch between open windows Alt+Tab: If you have lots of open windows and you're not sure exactly which one you need, press Alt+Tab, and get a quick thumbnail view of all open windows.
- Clear away everything and show the desktop +D: Use this shortcut when you want to minimize a lot of open windows at once to check something on your desktop.
- Minimize the window +Down Arrow: Minimizing a window is a surefire way to see what's underneath it.
- Maximize the window +Up Arrow.
Get even funkier with window management
It may surprise you to learn that there are even more options when it comes to dealing with your open windows and programs.
- Compare and contrast in a snap +Left Arrow or Right Arrow: Snap is the easiest way I know to compare two documents or to write up something while also looking at a web browser.
- Multitask with multiple monitors +Shift+Right Arrow or Left Arrow: Do you use more than one monitor at a time? Now you can shift an open window to your other monitor in less than a second.
Manage tasks
You might already be using a shortcut Ctrl+Alt+Delete to open up Task Manager or to lock your computer. There are even shortcuts for this shortcut.
- Open Task Manager Ctrl+Shift+Esc : This simple shortcut whisks you straight to Task Manager without any intermediary steps.
- Lock your PC or switch +L: This shortcut locks your PC and instantly displays the login screen.
- Display your way
No matter how you want to view your PC, shortcuts help you get there faster.
- Choose a presentation display mode +P: Whether you're giving a presentation or are using multiple monitors, it's simple to switch settings.
- Zoom in, zoom out +Plus Sign or Minus Sign: The Plus Sign key (+) zooms you in, the Minus Sign key (-) zooms you out. This lets you see small text on a webpage or to check out the pixels in a photo.
A few last tricks
Here are a few final shortcuts.
- Search for files and folders +F: In the past, finding a file could be a headache. Use this shortcut to get a search window, type in a few keywords to find your file.
- Open a new instance of a program +Shift+Click a taskbar icon: I like Internet Explorer tabs, but sometimes I want a whole new browser window. To get one, I just click the Internet Explorer icon while holding down Shift.
- And when you need help +F1
Submitted by: Al Mazorol, IT Specialist |
|
Employee vs. Independent Contractor | |
As a small business owner you may hire people as independent contractors or as employees. There are rules that will help you determine how to classify the people you hire. This will affect how much you pay in taxes, whether you need to withhold from your workers' paychecks and what tax documents you need to file.
Here are seven things every business owner should know about hiring people as independent contractors versus hiring them as employees.
- The IRS uses three characteristics to determine the relationship between businesses and workers:
- Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training or other means.
- Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker's job.
- Type of Relationship factor relates to how the workers and the business owner perceive their relationship.
- If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
- If you can direct or control only the result of the work done -- and not the means and methods of accomplishing the result -- then your workers are probably independent contractors.
- Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
- Workers can avoid higher tax bills and lost benefits if they know their proper status.
- Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.
- You can learn more about the critical determination of a worker's status as an Independent Contractor or Employee by contacting your Nohre & Co., S.C. Account Manager @ 715.834.2225.
Source: irs.gov |
| Calendar Updates | |
Major Tax Deadlines
For April 2012
April 2 - Deadline for payers who file electronically to file 2011 information returns (such as 1099s) with the IRS.
April 2 - Deadline for employers who file electronically to send copies of 2011 W-2s to the Social Security Administration.
April 17 - Individual income tax returns for 2011 are due.
April 17 - 2011 calendar-year partnership returns are due.
April 17 - 2011 annual gift tax returns are due.
April 17 - 2011 income tax returns for calendar-year trusts and estates are due.
April 17 - Deadline for making 2011 IRA contributions.
April 17 - Deadline for employers to make contributions to certain retirement plans.
April 17 - First installment of 2012 individual estimated tax is due.
April 17 - Deadline for amending 2008 individual tax returns (unless the 2008 return had a filing extension).
April 17 - Deadline for original filing of 2008 individual income tax return to claim a refund of taxes. Each year some taxpayers have tax refunds due them for prior years, and unless a return is filed to claim the refund by the three-year statute of limitations, the refund is lost forever.
NOTE: Businesses are required to make federal tax deposits on dates determined by various factors that differ from business to business.
Payroll tax deposits: Employers generally must deposit Form 941 payroll taxes (income tax withheld from employees' pay and both the employer's and employees' share of social security taxes) on either a monthly or semiweekly deposit schedule. There are exceptions if you owe $100,000 or more on any day during a deposit period, if you owe $2,500 or less for the calendar quarter, or if your estimated annual liability is $1,000 or less.
Monthly depositors are required to deposit payroll taxes accumulated within a calendar month by the fifteenth of the following month.
Semiweekly depositors generally must deposit payroll taxes on Wednesdays or Fridays, depending on when wages are paid.
For more information on tax deadlines that apply to you or your business, contact your Nohre & Co., S.C. Account Manager @ 715.834.2225.
|
|
|
This newsletter is designed to present information on business and tax matters in general terms and is not intended to be used as a basis for specific action without obtaining further advice. Please contact your Nohre Account Manager @ 715.834.2225 or 800.960.2225.
Editor: Deb Stange, Nohre & Co., S.C.
Please forward comments to nohre@nohre.com
|
|
|
|
|
