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Greetings!
Welcome to our first email newsletter designed especially for business clients. Why this new format?
Last year a number of clients requested that they receive our annual tax planning publication by email so we began exploring ways we could respond to their request. As a result, we created an e-Tax Planning Guide and Web Tax Guide and moved forward to convert printed publications for business and individual clients to electronic newsletters.
Using electronic communications, as opposed to mail delivery, saves time, and clients can read the newsletter at anytime and anywhere at their convenience. This new format allows us to include visual images, rather than a textual message of a basic email. In addition, it is definitely more environmentally friendly, which is a priority for our firm and for many of the clients who requested this format.
Through this email newsletter, we can also direct you to websites and other information which may assist you in your tax- and financial-planning efforts. A copy of the newsletter will be posted on our firm's website so you will always have access to the information.
Let us know how you like this new format by sending us an email. If you would like a printed copy of this issue of Insight, send us your request. All future issues of INSIGHT will be electronic.
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Congress' Last Minute Compromise Package Avoids Fiscal Cliff
What the Legislation  May Mean for You
The last-minute fiscal cliff legislative compromise, H.R. 8 known as the American Taxpayer Relief Act of 2012 (ATRA), extends the majority of tax cuts that were scheduled to expire at the end of 2012 and retroactively reinstates some rules that had expired in 2011. The legislation passed the House and Senate on January 1, and President Obama signed the bill the next day.
With some modifications targeting the wealthiest Americans with higher taxes, the act permanently extends provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, P.L. 107-16 (EGTRRA), and Jobs and Growth Tax Relief Reconciliation Act of 2003, P.L. 108-27 (JGTRRA). It also permanently takes care of Congress' perennial job of "patching" the alternative minimum tax (AMT). It temporarily extends many other tax provisions that had lapsed at midnight on December 31 and others that had expired a year earlier.
Among the tax items not addressed by the act was the temporary lower 4.2 percent rate for employees' portion of the Social Security payroll tax, which was not extended and has reverted to 6.2 percent.
Many of the tax breaks in the new law are subject to a variety of rules and limitations. So be sure to discuss them with your Whalen tax adviser to determine exactly how they'll affect you. We'd be pleased to help.
READ MORE from the Journal of Accountancy.
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Incumbent Workforce Training Voucher Program Begins Soon
Determine If Your Business Is Eligible
Applications for Ohio's new Ohio Incumbent Workforce Training Voucher Program will be available on a first-come, first-served basis, starting January 7.
The goal of this program is to allow employers to retain and grow their existing Ohio workforce and to create a statewide workforce that can meet the present and future demands in an ever-changing economy.
Under the program, employers would receive a grant agreement reimbursing 50 percent of eligible employee training costs, up to $4,000. A number of requirements must be met by both the employer and employee to be eligible for financial assistance.
An eligible employer must be in specific industries with a facility located in Ohio that has been in continuous operation for the 12 months immediately prior to the application submittal.
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Learn More about Accounting, Tax, Financial and Business Matters
January's Featured Articles for Businesses and Individuals Include:
Limiting Personal Liability
Certain business structures offer protection.
Social Security in 2013
Cost-of-living adjustments
New on Form 1099-B
Cost basis reporting for mutual fund shares
Setting up a personal budget
Absenteeism
Some tips for tackling this perennial problem
Did You Refinance in 2012?
You may qualify for these tax breaks.
READ MORE.
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State of Ohio Returning $13 Million
in CAT Overpayments
Refunds are the First Resulting from a New Kasich Administration policy
The state is returning more than $13 million to 3,500 Ohio businesses that unknowingly overpaid commercial activity tax (CAT).
The commercial activity tax (CAT) is an annual tax imposed on the privilege of doing business in Ohio, measured by gross receipts from business activities in Ohio. Businesses with Ohio taxable gross receipts of $150,000 or more per calendar year must register for the CAT, file all the applicable returns, and make all corresponding payments.
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College Planning and Funding Strategies
Workshop for  Parents and Grandparents
On January 29, Whalen & Company and The Bishoff Financial Group are teaming up to help families learn about how to identify good-fit colleges and universities, what strategies to use to get accepted and what investment vehicles are available to fund college education. Participants will also learn ways to minimize time spent on the completion of the Department of Education's Free Application for Federal Student Aid (FAFSA).
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Many Clients Opt to Begin New Portal Service in January
Efficiency, Security and Environmental
Protection Cited as Key Factors
Almost a quarter of the firm's business clients have already signed up for the new online portal service that Whalen & Company announced in December.
The new service, which became effective at the beginning of January, makes use of web-based, client portals to facilitate the exchange of documents between clients and Whalen staff members.
One of the first clients to take advantage of the new service was Dale Perdue, an attorney at Clark, Perdue & List Co, LPA in Columbus. "We fully support this and thank you for spending the time to research this and set it up," Dale wrote. "We are paperless and have, for some time now, been hoping for a means to transfer sensitive documents to Whalen via a means more secure than email."
READ MORE.
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BUSINESS BRIEFS
Minimum Wages Increase
Effective January 1, Ohio's minimum wage increased by 15 cents, making the new minimum wage in the state $7.85 per hour. In addition, the new minimum wage for tipped employees will be $3.93 per hour, an increase of 8 cents.
IRS Increases Standard Mileage Rates a Penny
The Internal Revenue Service has raised the standard mileage rates by 1 cent per mile for 2013 when calculating the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
READ MORE.
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CLIENT AND FIRM HAPPENINGS
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 Chad Osler has been hired as senior audit manager. Chad has more than 15
years of experience in public accounting serving clients in the manufacturing, distribution, service and retail industries. He is also experienced with the employee benefit plan practice with a primary focus on family-owned and privately held businesses.
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Two clients were recognized for their accomplishments recently by the Building Industry Association of Central Ohio. Honored at the eighth annual Building Industry Awards event were: Suburban Steel Supply Co., material supplier; and R.J. Landis Design and Construction, Inc., remodeling project.
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Jeff Zaye,  associate director and audit department manager, and his team of auditors leave a big impres-
sion when working with a client. So it is fitting that Jeff was the male master winner in the Big Foot 50K event on December 1.
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Kumar Patel,  senior staff accountant, recently qualified as a certified Quickbooks ProAdvisor.
This certification means that the quality of consulting that Kumar provides to clients meets the highest standards as set by  Quickbooks.
READ MORE. |
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Four members of the firm are celebrating anniversaries in January. They are: Karen Botti, CPA, staff manager of tax services, 18 years; Tax Specialist Patti Carey, seven years; Kumar Patel, CPA, CFP, senior lead accountant, third year; and Partner Laura Wojciechowski, CPA, EA, PFS, 23 years.
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Partner Richard Crabtree is known for his focus and concentration in addressing client needs. He used these same skills to take down a white-tailed buck on the second day of the deer-hunting season on November 27 near Logan, Ohio. The deer was a nine-point buck and weighed approxi-mately 170 pounds (field dressed). If you are a hunter and were successful this season, contact Richard with the details.
Richard says that the Vance Outdoors cap that he wears when hunting gives him good luck. Vance Outdoors, a long-time client of the firm, is a full-line firearms, hunting, fishing, archery retailer serving the central Ohio area.
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Office Hours Extended during Upcoming Tax Season
To serve clients as effectively as possible, the firm will extend its office hours during the tax season.
Starting January 2, office hours will be 8 a.m. to 5 p.m., Monday through Friday. Saturday hours, from 9 a.m. to 3 p.m., will be in effect from February 16 through April 13. The tax-filing deadline is Monday, April 15.
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Deadlines Set to Submit Tax Information
For Both Corporate and Individual Returns
In order to ensure timely completion of business and individual tax returns, the firm asks that all corporate tax information be received in our office no later than Friday, February 22. In addition, all individual and partnership tax information should be received by Friday, March 15.
Any information received after these deadlines will likely be placed on extension for preparation to occur subsequent to the original filing due dates of March 15 (corporate) and April 15 (individual and partnership).
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Fiscal Cliff Law May Delay Tax Season
Tax forms from the federal government and Ohio may be delayed due in part because of the late congressional approval of the American Taxpayer Relief Act of 2012.
The IRS had indicated that it would not begin to process any tax returns until January 22. Returns will likely be delayed until at least February.
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