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Tax Tips Newsletter
Serving you since 1993
April 2014 - Vol 9, Issue 4
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Greetings!
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We are very busy working on tax returns as you would imagine. If you got your information in before the March 10 deadline, we will get your returns done unless there is something missing that is beyond our control. If you got your information in after March 10, we will make every effort to get your returns done by April 15th.

If your returns are put on extension, we do not anticipate working on them until after June 1st. This is because there are other business deadlines after April 15th that we need to turn our attention to. In addition, we all need a little time off.

The office will be closed on April 16th and will reopen on April 17th. I will be on vacation from April 18th through May 5. The office will be closed on Fridays beginning May 2. As always, the best way to reach any of us is by e-mail.

Many thanks for your referrals. We have met some wonderful new clients this tax season that have been referred to us. I appreciate your confidence in my staff and me.

After you file your tax return, the last thing you want to see is a notice from the IRS questioning your return. Some IRS notices involve very minor corrections; some are for serious changes that could involve a lot of money. Sometimes the IRS is correct in what they are seeking; sometimes they are wrong.

An IRS notice can be something as simple as a correction to a social security number or as significant as a billing for more taxes, interest, and penalties due for an adjustment to your total tax liability.

So, what should you do if you get a letter from the IRS?

Here is a list of do's and don'ts concerning contact from the IRS.

* Don't ignore the notice; the problem will not go away.

* Act promptly. A quick response to the IRS may eliminate further, more complicated correspondence.

* If you agree with the IRS adjustment, you do not need to do anything unless a payment is due.

* If the IRS is requesting more money or a significant amount of new information, be sure to contact your tax preparer immediately.

* Always provide your tax preparer with a copy of any IRS notice, regardless of how minor it appears to be.

* Keep a copy of all the IRS correspondence with your tax return copy for the year in question.

The most important thing to remember is not to ignore correspondence from the Internal Revenue Service. Bring any notice you receive to my office and let me assist you in resolving the problem quickly.
Filinf the form
The IRS has issued regulations intended to clarify for businesses which costs related to fixed assets must be capitalized and which can be currently expensed. The 200 pages of regulations are complex, but the safe harbor provisions on improvements are perhaps of most concern to small businesses. Here's an overview.

If your average annual gross sales are $10 million or less, you may choose to write off the cost of improvements made to an "eligible building." An eligible building is one that is owned or leased by the qualifying taxpayer and the unadjusted basis of the building is $1,000,000 or less..

Also, to be able to deduct the expenditures on your current-year's tax return, the yearly total paid for repairs, maintenance, and improvements cannot exceed the lesser of $10,000 or 2% of the building's unadjusted basis.

The regulations contain numerous complex provisions that could result in tax savings or additional costs for your business. The rules are effective for tax years beginning after 2013, so they will apply to your 2014 federal income tax return. In some cases, you can apply the new rules to prior years. If your company owns or leases fixed assets, contact me for assistance in applying the rules to your business.
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Tax Tip of the Week: Did you know that there are other tax credits available when raising your children? Depending on your filing status and tax credits there may be additional benefits! Read this article and see if any of these credits pertain to you.

Business Tip of the Month: As a business owner in today's market you must keep up with technology. If you're not tech savvy, are you reaching out to someone who is? Maybe creating a blog for your business is the next marketing step for you. Read this article for more info about how a blog may help your business.

Financial Tip of the Month: If you're a savvy shopper then you definitely have visited an "outlet mall." Shopping outlet malls should be the same as shopping at your favorite department store; buy on sale, use additional discounts and buy off-season for the best discounts. The "outlet malls' are just like any other mall. Most of the product is made specifically for the outlet stores and were never in their "real mall" store. Check out this article for more "outlet mall" shopping tips!

Fraud Alert: Our smart phones have become our computer-in-a-pocket that we take everywhere we go! Do you do your banking and bill paying on your phone? That may not be as secure as you think. Read this article for more info before making your next money transaction over your phone.
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Let me know if I can help you with any Quickbooks problems.

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Sincerely,
Linda Heineman
Linda L. Heineman, CPA

phone: 626-577-0979