The Blau Company, Ltd. Newsletter                                                                                                                  May 2011
 Greetings!

 

As another successful tax season comes to an end, we would like to thank all of you for your patience and understanding.  For those of you that have any tax questions please contact us.  We would like to keep you informed of tax implications that occur when buying a new house, changing jobs, or starting a family.

 

Please keep in mind, that since tax season is over our office is back to normal business hours, Monday - Friday 8:30am - 5pm. Appointment times will be from 10am - 4pm Monday - Thursday, and 10am - 3pm on Fridays.  We do make special accommodations outside of these hours if necessary.  To schedule your appointment, contact Kirstin at (480)946-7732 or kirstin@blauco.com.  Aaron will be in the Gilbert office on Wednesdays and Friday afternoons. 

 

For those clients who requested an extension, please call and set up your tax appointments so we can get your 2010 taxes finalized.  Please have a couple dates and times in mind when calling to set up your appointment.

 

For those clients that have businesses who requested an extension, please get all of your information to Denise Fisk so we can get your 2010 taxes finalized.  For any questions or concerns, call or email denise@blauco.com.    

 

Lastly, we would like to give a big "Thank you and Congratulations" to Suzy, who gave birth to a beautiful baby girl, Alana, on February 19th!!  We really appreciate all the hard work you do!!  We wish you and your family the best with your new little bundle of joy!     

 

If you are a new client and would like an organizer, we have posted a blank organizer on our website. 

 

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IMPORTANT INFORMATION FOR CLIENTS SCHEDULED IN GILBERT

Our satellite office is located at 690 E. Warner Road, Ste 105 inside the offices of FAMILY LIFE FINANCIAL.  The entrance is located next to the large fountain in the center of the complex. 

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What Happens After I File? 

Now that the federal income tax filing deadline is in your rear-view mirror, what happens after you file?  A lot of taxpayers have post tax-filing questions such as what records do I keep and more importantly, "Where's my Refund?"  The IRS has the answers for you below.

 

Refund Information

You can go online to check the status of your 2010 refund 72 hours after IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after you mail a paper return.  Be sure to have a copy of your 2010 tax return available because you will need to know your filing status, the first Social Security number shown on the return, and the exact whole dollar amount of the refund.  You have three options for checking on your refund:

  • Go to http://irs.gov and click on "Where's My Refund"
  • Call 800-824-4477 ~ 24 hours a day, 7 days a week, for automated refund information. 
  • Call 800-829-1954 during the hours shown in your tax form instructions.
  • Use IRS2Go if you have an Apple iPhone or iTouch or an Android device you can download an application to check the status of your refund.

What Records Should I Keep?

Normally, tax records should be kept for three years, but some documents - such as records relating to a home purchase or sale, stock transactions, IRAs and business or rental property - should be kept longer.

 

You should keep copies of tax returns you have filed and the tax forms package as part of your records.  They may be helpful in amending already filed returns or preparing future returns. 

 

Change of Address

If you move after you filed your return, send Form 8822, Change of Address, to the Internal Revenue Service.  If you are expecting a paper refund check you should also file a change of address with the U.S. Postal Service.

 

What If I Made a Mistake? 

Errors may delay your refund or result in notices being sent to you.  If you discover an error on your return, you can correct your return by filing an amended return using Form 1040X, Amended U.S. Individual Income Tax Return. 

 

 

 

Important Dates for March & April
May 2-6    Aaron is out of the office
May   8     Mother's Day
May 30     Memorial Day ~ Office Closed
June 14     Flag Day
June 19     Father's Day
June 20-22 Aaron is out of the office
June 20-23 Alan is out of the office

Health Insurance Tax Breaks for the Self-Employed 

Here is some information from the IRS about a special tax deduction for the self-employed.  You may be able to deduct premiums paid for medical and dental insurance and qualified long-term care insurance for you, your spouse, and your dependents if you are one of the following.

  • A self-employed individual with a net profit reported on Schedule C (Form 1040), Net Profit from Business, or Schedule C-EZ (Form 1040), Net Profit from Business, or Schedule F (Form 1040), Profit or Loss From Farming.
  • A partner with net earnings from self-employment reported on Schedule K-1(Form 1065), Partner's Share of Income, Deductions, Credits, etc., box 14 code A.
  • A shareholder owning more than 2% of the outstanding stock of an S corporation with wages from the corporation reported on Form W-2, Wage and Tax Statement.

The insurance plan must be established under your business.

  • For self-employed individuals filing a Schedule C, C-EZ, or F, the policy can be either in the name of the business or in the name of the individual.
  • For partners, the policy can be either in the name of the partnership or in the names of then partner.  You can either pay the premiums yourself or your partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income.  However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income.  Otherwise, the insurance plan will not be considered to be established under your business.  
  • For more-than-2% shareholders, the policy can be either in the name of the S corporation or in the name of the shareholder.  You can either pay the premiums yourself or your S corporation can pay them and report the premium amounts on Form W-2 as wages to be included in your gross income.  However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 wages to be included in your gross income.  Otherwise, the insurance plan will not be considered to be established under your business.   

 

Health Club Dues

In an information letter, the IRS Office of Associate Chief Counsel responded to a recent request to introduce legislation that would allow gym fees as a deductible medical expense.  

 

Existing regulations state that taxpayers cannot deduct personal, family or living expenses as medical care if the expense is only for general health and not for an acute medical condition under the care of a physician, as well as other factors.    

 

The Associate Chief Counsel does note that fees paid to a health facility or for participation in a weight-loss program may still be deductible, but only if for the purpose of curing a specific ailment or disease such as obesity or hypertension.  The info letter concludes that, if the following factors apply, gym membership can be deductible:

  •  A physician diagnosed the taxpayer with a specific disease
  • The taxpayer uses the gym to treat the specific disease; and
  • The taxpayer would not incur the gym fees except for the specific disease.  
If you would like more information the potential for deducting gym membership fees, please contact our office.  

1204 East Baseline Road, Suite 104           Tempe, Arizona 85283           Tel (480) 946-7732            Fax (480) 345-0033

690 E. Warner Road, Ste 105                       Gilbert, AZ 85296                   Tel (480) 788-7732            Fax (480) 355-6308