The South Bay Tax Report
July 2015
This month,
we've got no news about the weather,
we've got no news about our coffee pot,
nor news about new staff members or
Hermosa Beach's famous 4th of July
Ironman competition
(where participants have to run a mile, swim a mile and chug a six pack of beer; okay, it's
Hermosa Beach, what did you expect...)
No!
The news this month is that,
once again,
the newspaper of record in the South Bay,
our favorite,
the Daily Breeze,
has named
Wayland & Vukadinovich LLP as
South Bay's Favorite Tax Return Preparer.
This honor,
bestowed after a vote of subscribers,
is yet another validation of the efforts we here at
Wayland & Vukadinovich LLP
take to make sure we do everything we can to insure that you pay ONLY your true tax - not a dollar more!
The Daily Breeze named us the BEST tax preparer in 2011
We were downgraded to the FAVORITE tax preparer in 2012 and 2014 and now, once again, in 2015.
We're not quite sure what happened to us in 2013 but we suspect we forgot to ask our mothers and fathers to vote for us, but
we're thrilled with this year's honor and thank all five of you who likely voted for us.
We will work hard to maintain our lofty title next year.
Remember, should you tire of us outlining our numerous honors and awards, note that you can always
"Unsubscribe"
safely to this blatant attempt to stroke our ego by visiting the "Unsubscribe" button at the bottom of this page.
This month, we step back from our wildly successfully
"Salute to our Favorite Tax Forms" feature
and return to more familiar ground with
"Frequently Asked Questions"
Enjoy your Summer!
I tried to call the IRS to ask a question about
my refund.
I waited 40 minutes and never got thru.
What's going on???
The US Treasury Department Inspector General
(wow, that's a good title)
just released a report
(that's what they do in Washington)
indicating that the IRS only answered about 38% of your calls during the 2015 filing season,,
down from 75% last year.
The average wait time was 25 minutes,
up from 12 minutes the year before.
What should you do?
Be sure you have a good book, lots of email to respond to
or a LARGE glass of wine while you wait.
The Inspector General
(Is there an Inspector Private?)
also indicated that the IRS has seen far fewer criminal investigations this year.
Investigations initiated decreased from 5,314 last year to 4,297 this year.
The number of special agents decreased from 2,541 to 2,465 in the same period.
Fewer agents, fewer answered phone calls, fewer investigations, fewer audits?
Can a grandparent pay for a grandchild's college tuition and still be able to give a $14,000 gift to cover other expenses?
Now, there's a serious question, and we will admit, prior to answering it, that we found it in a recent Wall Street Journal but we still see it frequently asked here in the hallowed - and awarded - halls of
Wayland & Vukadinovich LLP
There are two things for you, as a grandparent, to remember
1 - TUITION is the operative word. The payment must be for tuition at a qualified institution, not board, not books, not flip flops, not beer, not dues at the fraternity.
2 - the tuition payment must be made directly to the institution by the giver. The funds can't go to the student, the parents or anyone else except the college.
The California Franchise Tax Board has not
(a) cashed my check or
(b) issued my refund.
What's going on in Sacramento?
The Franchise Tax Board recently emailed us
(yes, the FTB actually uses email)
indicating that they received 645,000 personal income tax returns AND $2.72 BILLION in payments on April 15th this year.
According to the FTB, both the number of returns and payments received were new records
(and apparently the FTB keeps track of these types of things, much like Major League Baseball keeps track of who hit the most home runs).
They accomplished this feat with about 15% fewer employees than they had two years ago.
Our guess is that about half of that $2.72 billion is still sitting on various FTB desks waiting to be deposited and likely more than a few of those refund submissions are still waiting for someone at the FTB to hit the "Refund" button on the computer so be patient, they are working hard -
so they say -
to process everything on a "timely" basis.
I've refinanced fourteen times in the last two years.
My interest rate is down to 1.2% and I continue to look for a lower rate.
I need you at
Wayland & Vukadinovich LLP
to write a letter to my lenders indicating
I am self-employed,
that I will continue to make the same level of income I made in 2014
and that you see absolutely no reason why I will not pay back my new $2 million loan.
And can you make sure that letter is sent in the next fifteen minutes?
We're happy to help you refinance
We're happy to send you electronic copies of your tax returns.
We're happy that your mortgage interest rate is practically nothing, but
We're tax accountants, not economic forecasters.
Generally, we can assist by writing letters about what we have done for you in past years, we can never forecast what may happen in future years.
We can generally prepare what you need within 48 hours of your request, and because we have to actually make a living at what we do, we actually charge for these letters
Thanks for understanding.
I just received a letter from the IRS indicating that I missed a quarterly tax payment last September, and they have assessed several nasty penalties.
I never look at my bank statements, I didn't realize the check had not been cashed.
I sent the check with an estimated tax voucher and mailed it at my local post office.
Do I have any recourse?
No.......
Okay, let's expand that answer a bit.
We weren't named a Favorite Tax Preparer for nothing.
Electronic tax payments are typically the best and safest method for getting money to the IRS. Electronic payments generate a digital trail that shows the money leaving your account and landing - safely - at the IRS.
If you insist on paying with checks, use certified mail, return receipt requested. This paper trail isn't a sure way of proving your case but at least you have something to show our friends at the IRS.
I need more tax deductions.
Can I deduct my life insurance premiums?
My Bushwood Country Club dues?
The contributions I make to the
INSERT NAME HERE for President campaign fund?
We admit it - no one actually asked this entire question; but we wanted to cover several quick topics that you do ask about.
First, we all want more tax deductions - your task this year is to maintain great records detailing what you spend for personal deductions like contributions, medical costs, taxes, and unreimbursed business expense.
Second, life insurance proceeds are never taxable so that means that life insurance premiums are rarely deductible.
Third, Congress, several years ago, outlawed deduction of dues such as country club dues, health club dues, sports club dues, social clubs and alike.
Stay healthy but don't deduct it
Lastly, political contributions, while important in our democracy, are not deductible.
Will the IRS audit my business?
Well, not according to a report recently released by the IRS Commissioner. The IRS audited just .57 percent of American businesses (57,211) in 2014, down from a robust .61 percent in 2013 and .71 percent in 2012.
Large corporations (those with $10 million of assets) had an audit rate of 12.2 percent in 2014 while small businesses had an audit rate of .36 percent.
And One Final Reminder
The Internal Revenue Service doesn't call you, promising to send the local sheriff to lock you up if you don't scurry down to your local bank and withdraw money to pay a 2009 delinquent tax bill you never remember seeing.
These phone calls are scams; they are not from the IRS.
Ignore their calls, hang up on them and go back to enjoying your summer!
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