Tax Tips Newsletter
Serving you since 1993
April 2015 - Vol 10, Issue 3
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Greetings!
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Whew! Tax season is over and it was a great success. We were able to get out some of the returns that came in after the cut-off date. The feedback we got from many of our clients was very positive for both the new portal at SecureDrawer and the e-signature option.

A huge amount of thanks goes out to my wonderful staff, Sandi, Mary-Ann and Felix. They were rock stars during tax season and things ran smoothly while we were all getting used to new file cabinet and portal software. I'm so proud of the job that they do and I'm fortunate to have them on my team.

We have other types of returns that are due at the end of April and the beginning of May. We are also each taking a little time off so we do not anticipate working on extensions until June.

The office will be closed on Fridays beginning this Friday, April 24th. The best way to contact us is by e-mail.

As always, your referrals are greatly appreciated.

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Remember the tax form you filled out when you first got your job - the form that told your employer how to calculate your federal income tax withholding? That was Form W-4, Employee's Withholding Allowance Certificate. If you received a big tax refund or owed the IRS a lot of money for 2014, it's probably time to update your W-4.

Filing a new Form W-4 with your employer allows you to adjust your income tax withholding to avoid overpaying or underpaying tax for 2015. The form comes with a worksheet to figure out how many allowances you should claim. These allowances are similar to dependency exemptions on your income tax return. However, the total allowances on your W-4 don't have to agree with the exemptions you claim on your return. For example, say you're single and you want to have the maximum amount withheld from your paycheck. You can claim zero allowances on Form W-4. You'll still claim your personal exemption on the federal income tax return you file next April.

One caution: You should not claim more exemptions than you're entitled to on Form W-4.

What if you want to increase the tax withheld from your paychecks? You can specify an additional dollar amount on Form W-4. This can be useful when you receive income not subject to withholding and you don't make estimated tax payments.

When updating your W-4, keep a few rules in mind. Generally, you must pay (through withholding or quarterly estimated payments) at least 100% of last year's tax liability (110% if your adjusted gross income is over $150,000), or at least 90% of what you'll owe for this year.

Updating your W-4 can help adjust your withholding to match the tax you expect to owe. If you need assistance completing the form, give me a call.
Tax Deadline
Suppose you discover a mistake or omission of an item on the 2014 federal tax return you recently filed. Should you ignore the error? The answer is generally "no" unless the error involves a mathematical miscalculation or forms you forgot to attach. The IRS will correct those types of mistakes and send you a notice.

You'll fix other mistakes by filing an amended return. Reasons to amend include changing your tax filing status or dependency exemptions, or overlooking available deductions or credits.

Typically, you want to file the amended return as soon as you discover your error. If you owe additional tax, filing quickly will minimize interest and penalties. However, if the change will result in a larger refund, wait until you receive the refund shown on your original return.

Amended returns must generally be filed within three years from the date you filed your original return. After that, you may no longer be able to claim any additional refund.

If you discover an error or missing information on a return you already filed, give me a call. We can review the situation with you and help you prepare an amended return if necessary.
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Tax Tip of the Week: Did your business have a net operating loss in 2014? Read this article for more info on how you may be due a refund for past and future years. Call me if this may be your situation.

Business Tip of the Month: Does your business provide good online customer service? It's just as important to make a good impression to your online customer as it is servicing them face-to-face. Sometimes virtual conversations can be misunderstood so it's important to choose your words wisely. Read this article for some good tips on how to improve your online customer service.

Financial Tip of the Month: How long should we keep our financial records? I get asked quite regularly, how long we should keep our tax returns. I recommend for individuals to keep their tax returns for 7 years, and for businesses, 10 years.. This article is full of good info for protecting all of your financial records.

Fraud Alert: Watch out for telemarketing fraud! We've all received those calls telling us about the big prize we've won or offering those "once in a lifetime, act now" deals This article gives very specific ways to find out if you have a scammer on the other end of the phone. Be informed - don't be scammed!
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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