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Important Filing Dates

 

 


 


 

September 15 2015

Extended corporation and S corporation tax returns are due


 

September 15 2015

Third estimated tax payments are due


 

October 15 2015

Due date for extended personal tax returns


 


 

December 15 2015

Our Tax Appointment calendar opens.

You can also request a tax organizer that day.

Hooray!



 


 


 January 15 2016

Fourth and final estimated tax payments are due


 


 


 


 

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The South Bay Tax Report    
September 2015

We're writing this on September 9th, 
late in the afternoon. 
We know, it appears so easy but we expend a massive amount of effort on this newsletter. 
Our goal is to make sure you always pay the smallest legal tax bill.
We pour over tax journals, 
We take classes,
We scan the world of tax 
(yes, there is a dark and scary world of tax),
We even look out the window for inspiration, and
tonight it's 85 degrees and just about ready to rain in Hermosa Beach.
We can certainly use it but it looks a bit frightening out there so if you don't get this newsletter, it's because the international headquarters of 
Wayland & Vukadnovich LLP
( a Daily Breeze Favorite Tax Preparer)
may have been hit by a storm.
Let's hope not! 


It's almost October 15th, I've not done my tax return.
I'm beginning to panic.
What shall I do?

You're beginning to panic?
The staff found Mike hyperventilating and 
Gary was mumbling incoherently.
(Of course, Mike says Gary is always mumbling incoherently...)

If you haven't filed, October 15th is your deadline, and we need your information  no later than September 28th.
That means, of course, ALL of your information - not just your W-2s and a promise to get us more as time and your schedule permits.
If you have a partnership or corporation, YOUR deadline is September 15th and given that we're writing this on September 9th, we're not sure what we're going to do with YOU but get your individual, partnership or corporation information in to us as soon as possible.


What's going on at the California Franchise Tax Board these days?

Well, we can tell you what isn't going on - they aren't answering many phone calls, they aren't resolving problems, responding to your (and our) letters and providing any reasonable level of customer service.
Do we sound bitter?

We CAN tell you that, in spite of the above, they have decided to send out somewhere between 10,000 and 50,000 audit notices for 2011 and 2012 tax years to those of you who have deducted too many - in their minds - travel and entertainment expenses.
The FTB is increasing the number of these audits as they "noticed a large number of taxpayers who claim unreimbursed employee business expenses on Schedule A that appear questionable."
Well, we weren't sure they were noticing ANYTHING.

If you receive one of these nasty letters, please let us know AND you will need to provide - 
  • The name and address of your employer;
  • A detailed schedule of each unreimbursed expense;
  • A detailed transportation log if you deducted auto costs and
  • A copy of your employer's reimbursement policy, indicating that they do not reimburse for those expenses you claimed.
 
I have a Health Savings Account.
Why?
And how much can I contribute each year?

Health Savings Accounts (or HSAs) are like IRAs for health costs. You can make contributions each year to your HSA, deduct that contribution and use the amount you accumulate in your HSA to pay unreimbursed medical expenses. An HSA can often result in a lower monthly health insurance premium costs, you need a "high deductible" health insurance plan, and any interest you earn on the HSA is not taxable. Wow - sign me up!
In 2015, an individual can make a contribution of $3,350 while a family can make a contribution of $6,650 and those of you who qualify for that 55-year old senior discount at the movies can make an extra $1,000 annual contribution.
In 2016, we predict that the family contribution will increase to $6,750.
Okay, we admit it, we didn't predict that, the IRS recently announced it, but we do see possible lower tax bills in your future! 



Hugo, a wonderful Nigerian young man, called me the other day indicating I owed thousands to the Internal Revenue Service and offered to take my credit card number to guarantee the bill was paid before the Internal Revenue Service and the local sheriff swoop down on me, arresting me and throwing me in debtor's prison.

Well, this is wrong on so many levels. 
The IRS has recently released their list of 
"Top 25 Tax Scams" 
and your call covers several of them.
Remember, the IRS NEVER calls you to demand money.
They don't take credit cards over the phone, no matter how easy it may be.
It's likely no one calling from Nigeria EVER has something you should do, buy, or act upon.
Be careful, be wise, be alert! 

I've earned some additional money this year consulting/selling real estate/walking dogs/fixing up houses/selling children's clothes.
No problems, right?

Okay, let's dog walk over this question with three quick thoughts.
First, make sure you consider making estimated tax payments if the earnings you made from dog walking was substantial. The IRS and CA FTB prefer not to wait until April 15th for their money. They like it now and if they don't get it now, they bill you penalties and interest, so let us know what you made, we can help guide you regarding your estimated tax payment requirements.
The next round of estimates are due September 15th.
Let's talk!
Second, make sure you maintain great - not good - records of what you spent on your part-time work.
Keep track of all costs, keep an auto log, make sure you leave no expense unturned!
Lastly, we've had many phone calls lately as our clients have received letters from various cities indicating that our client - you - haven't applied for a business license in the city you are doing business.
California shares tax return information with cities so if you have a business in - let's say - Hawthorne - those charming folks in Hawthorne will come looking for you and your checkbook as you have a business license requirement.
Don't forget that when you and the dogs are out  walking! 


I know what a W-2 is.
I know what a 1099 is
What is a 1098-T?
And why do I care?

Form 1098-T is a Tuition Statement.
Colleges and universities are required to provide you with this form when you pay tuition for higher education. You use that tuition to claim higher education credits and tuition deductions.
This year, the IRS has indicated that they will no longer allow you to claim the American Opportunity Tax Credit, the Lifetime Learning Credit and the tuition and fees deduction UNLESS you have a Form 1098-T in your possession at the time you file.
We know, that SOUNDS like it means the IRS will knock on your door and demand that you flash your 
Form 1098-T the day after you file.
That's not exactly right (we think..)
It does mean they may issue audit notices when your tuition deduction does not match what they believe it should be as they WILL have a copy of the
Form 1098-T.
So watch your year-end mail 
(or log on to your student's college website)
for this very important form.

And What About Those Form 1099s?
I'm in business, I don't want to issue them.
I don't have to, right?

The IRS REALLY wants you to issue 1099 forms 
(remember, these are issued when you pay $600 or more to an unincorporated service provider for something you intend to deduct)
How much do they want you to issue 1099s?
Well, they've just increased the penalties.
You can be penalized $250 for each failure to issue the 1099 AND the IRS often disallows the deduction..
Yes, they REALLY want those 1099s issued. 


Is there anything new at Wayland & Vukadinovich?

Well, Mike and Gary continue to believe they get better with age while the staff continues to humor them.
Enjoy the balance of your summer and thanks for reading this far.








 

Wayland 2Contact Us

 Visit our website:

   

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

 

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