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Wayland & Vukadinovich LLP Website
Important Filing Dates

 

 

 

 

September 15 2014

Third 2014 estimated tax payment due

 

Extended corporation and partnership tax returns due

 

October 15 2014

Extended personal income tax returns due 

 

 

 

 

 

 

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The South Bay Tax Report    
September 1 2014

Since students are slowly filing back into the classrooms here in Hermosa Beach and Manhattan Beach, 
we here at Wayland & Vukadinovich LLP -
A Daily Breeze Favorite Tax Preparation Firm - 
have decided to give you a 
POP QUIZ.
That's right, it's our turn to ask YOU the questions.
You can't use notes, you can't Google the answers, 
here we go!

 

Question 1 

How many stories are there in the 

Wayland & Vukadinovich International Tax Headquarters?

 

Well, we must say that there are HUNDREDS of stories here at Wayland & Vukadinovich.

Did we tell you about the farmer that tried to take his pig as a dependent?

Never mind....what we really mean is that there is only 

one story to our building, 

a building that we've been in since 1982 and a building that 

looks like we've been in it since 1982.

You can tell that we take far more time working on your tax returns that we spend working on our building.

You liked our partner picture last month so here's a picture of the international tax headquarters of

Wayland & Vukadinovich LLP! 


 

 


 


 

Question 2

While you are comfortably planted on your couch, 

watching your favorite college team play an important rival, you receive a phone call from 

"Mr. Johnson from the Internal Revenue Service." 

Mr. Johnson indicates you owe over $4,000 and promises to send a federal marshal to your house in the next ten minutes AND take your money AND your famous guacamole dip if you don't pay the balance due RIGHT NOW.

You -

a - Give him your credit card number;

b - Promise you will send a check to the Nigerian post office box he provides; 

c - Wander in to the kitchen to fix more dip to have it ready for the marshal or

d - Ignore the telephone scam, and consider calling the IRS at 800 366 4484 to report the call.


 

The answer is, of course, "d."

The IRS always sends letters (and letters and letters) 

to collect money. 

They don't send marshals and 

they don't send marshals looking for dip.


 

Question 3    

Which of the following statistics is true for 

2012 individual tax returns?

a - 90% were electronically filed?

b - 15% included a deduction for self-employment tax?

c -  54% claimed itemized deductions or 

d - More individuals reported dividends than taxable Social Security.

The answer is "D" and we're not sure why we included this question but we thought it was interesting.


 

Question 4 

True or False

The IRS has recently provided a new "safe harbor" for home office deductions. If you use a separate room in your house for business, you can deduct $1,000 for every cute picture you have of your kids in your home office.

 

Of course, the answer is false.

The safe harbor rules says you can deduct $3 per square foot of the office space, to a maximum of $1,500 

(or 500 square feet).

The cute picture safe harbor is better but don't try it.

 

Question 5

You have been a diligent saver.

You have an IRA.

You have a 401k.

You have a pension plan which you rolled over to an IRA.

The IRS requires that you begin to take

"Required Minimum Distributions ("RMDs").

You must begin to take these RMDs 

a - When you turn 50

b - When you start to get a senior discount at Denny's

c - When you are 70 1/2 or

d - What? I have an IRA?


 

Well, of course, the answer is "when you turn 70 1/2".

Make sure you and your investment planner review your account to insure that you take the proper RMD each year.

And remember, you can be 102 and you still have to pay tax to the IRS and California Franchise Tax Board.

Taxes have no age limit!


 

Question 6

 In 2013, ___% of total tax collections the IRS received were generated from income tax.

a - 21%

b - 33%

c - 54%

d - Are you serious? how would I know that? 

I pay you geniuses at 

Wayland & Vukadinpvich 

to know this stuff!

 

Okay, okay, - relax.

The answer is "C"

54% of the government's tax collections comes from you.

Well, actually, it doesn't all come from you - it comes from you. your neighbors, friends and a few of those billionaires that started those companies in Silicon Valley that don't earn any money but sell for billions.

31% comes from employment taxes;

11% comes from corporation taxes;

2% from those pesky excise taxes, and 

Only 2% comes from estate, gift and trust taxes.


 

Question 7  

I'm really busy watching my favorite college football team and preparing bowls and bowls of my famous guacamole dip - see Question 2 above - 

I may not have time to submit my tax return prior to the extended due date of October 15th.

What happens if I don't file on time?

a - Relax, no problem. The IRS LOVES college football as much as you do. There's nothing to worry about.

b - A U.S. marshal appears on your front door on October 16th and he's looking for you - AND he hates guacamole dip!

c - You'll be subject to penalties for failure to file timely and failure to pay timely, penalties that can significantly increase what you owe.

The IRS can even assess penalties when you are due a refund.

 

The answer is, of course, C. 

The IRS is allergic to good times and dip.

 

Question 8

Estimated tax payments -

a - Are voluntary, making them is just a way to say 

"thank you" to our government;

b - Are due April 15th, June 15th, September 15th and January 15th;

c - Are necessary if you have income from several sources (like pensions, self employment, social security) where no tax is taken out, and

d - Can cost you a penalty if you don't make them and you should have made them.

 

We sandbagged you here - the answers are b, c, and d.

Your next estimates are due September 15th - make sure you contact us if you have any concerns about whether you should be making them or not.

 

Question 9

For 2011 the average tax rate based on taxable returns for individuals with adjusted gross income ("AGI") of at least $30,000 but less than $50,000 was ____% ,

and for individuals with AGI of $1 million or more, the average tax rate was _____%

a - 0% and 30%

b - 2.5% and 31.4%

c - I haven't understood a thing you said or

d - 7.1% and 23.4%

 

Yes - the answer is "D"

We LOVE these statistics

Remember, we're accountants!

Numbers! Numbers! Numbers!

 

Question 10

What deduction or exclusion provides the largest amount of tax relief?

a - Mortgage interest deduction;

b - Earned income tax credit;

c - Lower tax rate for dividends and capital gains;

d - Tax exclusion for employer - provided health insurance.

 

Okay - I suspect we fooled you here - the exclusion for employer-provided health insurance costs the Federal government over $785 BILLION.

As the late Senator Everett Dirksen said many years ago, 

"A billion here, a billion there, and 

pretty soon your're talking serious money."

 

 

 

Remember - 

You don't have to receive these emails.

Simply scroll to the bottom and unsubscribe, 

and we'll disappear.

Thanks for opening this newsletter - it helps our statistics!!!

Have a wonderful end of summer!!!

 

 

 


 

 

 

   

 

  

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wayland 2Contact Us

 Visit our website:

   

 Gary Wayland - [email protected]
Mike Vukadinovich - [email protected]
Susan Patterson - [email protected]
Sonia Tramel - [email protected]
Midge Leatherbury - [email protected]
Debbie Reasor - [email protected]
Gina Stevens - [email protected]
Shelly Milam - [email protected]
Emily Yamate - [email protected]

 

Certified Public Accountants
1097 Aviation Blvd
Hermosa Beach CA 90254
(310) 376-0455   (310) 379-4523 fax