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Daniel Weintraub, CPA, Partner |
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The Internal Revenue Service (IRS) has begun sending out questionnaires and letters to 1,200 randomly selected 401(k) plan sponsors. Employee Plan Examinations previously conducted by the IRS indicate that 401(k) plans are by far the most non-compliant plan type in the retirement plan universe. These plans have a significant impact on the health of private retirement in America and make up over 60% of the retirement plan universe.  It is important that they maintain the highest level of compliance possible: the Questionnaire is intended to assist the IRS in identifying compliance areas where additional education, guidance and enforcement are needed. |
Archive for June, 2010
Watch Out for IRS 401(k) Plan Questionnaires
Tuesday, June 22nd, 2010Cut Taxes on the Sale of Your Home
Friday, June 18th, 2010|
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| Despite the slumping real estate market, houses are still being sold and there is money to be made. Sellers need to take a close look at the exclusion rules and cost basis of their home to reduce taxable gain on their house.First, The IRS home sale exclusion rule now allows an exclusion of a gain up to $250,000 for a single taxpayer or $500,000 for a married couple filing jointly. This exclusion can be used over and over during your lifetime, unlike the previous one-time exemption, as long as you meet the following Ownership and Use tests.During the 5-year period ending on the date of the sale, you must have: |
Getting the Right Amount of Tax Withheld
Thursday, June 17th, 2010|
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In most situations, the tax withheld from your pay will be close to the tax you figure on your return – if you follow these two rules. But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. This is most likely to happen in the following situations: |
Summer Travel Tax Deductions
Wednesday, June 16th, 2010|
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The summer travel season is almost upon us. Keep in mind that if your summertime travel is primarily for business or career-related education, then a portion of the trip may be tax-deductible. As long as most of your travel days are for business purposes, you can deduct the cost of travel (airfare, trains, car), hotel, parking, taxi service, meals, and so on. As defined by the IRS, travel expenses are the Ordinary and Necessary expenses of traveling away from home for your business, profession, or job. An Ordinary expense is one that is common and accepted in your field of trade, business, or profession. A Necessary expense is one that is helpful and appropriate for your business. An expense does not have to be required to be considered necessary. |
Generating Professional Reports with QuickBooks
Tuesday, June 15th, 2010|
Chris Blach, QuickBooks ProAdvisor |
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 Let’s take a look. Reporting changed a lot between QuickBooks 2009 and 2010 in terms of interface, navigation, and access to reports. We’ll look at version 2010 since the core reporting mechanisms are similar, and wrap up with a brief summary of the new features in 2010.  (more…) |
How Long Should You Keep Your Tax Records?
Tuesday, June 8th, 2010|
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| Storing tax records: How long is long enough?
Spring is a great time to clean out that growing mountain of tax and financial papers that clutters your home and office. Here’s what you need to keep and what you can throw out without fearing the wrath of the IRS. Generally you to maintain copies of your tax returns and supporting documents for at least three years from the date you filed your return. This is called the “three-year rule ” and leads many people to believe they’re safe provided they retain their documents for this period of time. However, there are some exceptions. For example, if the IRS believes you have significantly underreported your income (by more than 25 percent ) it may go back six years in an audit. To be safe, use the following guidelines. (more…) |
Financial Planning Tips for June 2010
Tuesday, June 8th, 2010|
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Review Your Insurance Policies Lower Your Utility Costs Analyze Budget vs Actuals  |
Are Your Social Security Benefits Taxable?
Tuesday, June 8th, 2010|
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How much, if any, of your Social Security benefits are taxable? It depends on your total income and marital status. Generally, if Social Security benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return. If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status. (See below for more on base amounts.) This quick computation will help you determine whether some of your benefits may be taxable:
The 2010 base amounts are:
According to the Social Security Administration, less than one-third of all current beneficiaries pay taxes on their benefits. Call us for additional information on the taxability of Social Security benefits. Â |
Timing Mistakes That Cost Thousands of Dollars
Tuesday, June 8th, 2010|
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Sometimes we need to talk about costly taxpayer mistakes that could have been avoided with professional consultation. Take the recent case of a securities firm owner doing business as an S corporation. An S corporation’s income is directly taxable to its owners, and its losses pass through to owners for deduction on their tax returns. S corporations are like partnerships in this respect, and the problem we’ll describe arises with partnerships, too. |
Federal Tax Due Dates for June 2010
Tuesday, June 8th, 2010|
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