The Tech Accountant

Cut Your Taxes and Predict the Future

2012-01-04T09:52:00.000-05:00

Happy New Year!

As we welcome in 2012 and wave good-bye to 2011 (so goes many of the tax provisions that a lot of taxpayers have enjoyed for quite some time). Let’s take a moment to recap the end of the year.

Congress was able to extend the payroll tax cut but, a little over 50 tax provisions expired when the clock struck 12. For a list of the more important provisions that expired and to take a look into the future:

A Look into the Future

With the start of 2012, there are a few new tax provisions taxpayers will want to pay close attention to. The major new provisions include inflation adjustments, capital gains and loss reporting, credits for hiring veterans, and bonus depreciation.

So what’s in store for 2012? Since this is an election year, there is sure to be a great deal of talk about tax reform and deficit control as many taxpayers already have been hearing. The end of the Bush tax rates (2013) is also sure to be a hot topic for 2012 campaigns.

The bottom line is to have a plan and that way a taxpayer can ensure they don’t make any mistakes most taxpayers make every year.

Give to the Right Charity

2011-12-05T12:26:00.001-05:00

We are in the season of giving and many taxpayers would like to provide assistance to those less fortunate than they are. While charitable giving is always good, there are however some things taxpayers should know before giving their money, time, and other items to a charity. Here's a short video with the details. Enjoy.

The Tech Accountant

Travel Receipts Got You Sour as a Lemon??? Make Lemonade

2011-11-29T16:17:00.001-05:00

I hope everyone had a great holiday this past week. If you were one of the many people traveling this past week, I am sure you have quite a few receipts from your trip that you may want to organize to see how much you spent over the holiday.

Or maybe you are a constant business traveler that is tired of trying to keep up with all of your receipts when you travel for business.

If this describes you, I am sure that the time it takes to organize and tally up what you spent, and where has you as sour as a lemon.

Here's a quick video on a new web-based product with a corresponding smart phone app that can make lemonade out of those receipts. Let me know what you think.

The Tech Accountant

Facebook Employees Go Nuts As Zuckerberg Tells Them The IPO Is Coming - Nicholas Carlson

2011-11-19T10:37:00.000-05:00

Is there a Facebook IPO in the future....stay tuned.

Facebook Employees Go Nuts As Zuckerberg Tells Them The IPO Is Coming - Nicholas Carlson

The Tech Accountant

A Bonus for Small Biz

2011-11-14T07:13:00.000-05:00

Thanks to the IRS, small businesses can deduct the cost of bonuses they pay to employees even if they don't know which employees will receive a year-end bonus. Listen here for details:

Tax Bonus for Small Biz (mp3)

The Tech Accountant

Kids Say the Wildest Things

2011-11-10T11:11:00.002-05:00

Here's a cool video that explains what it is like to be a tax accountant....well maybe in the "old" world of accounting. Personally I could only relate my past experiences to what the kids describe in the video. The "new" world of accounting is so much more exciting.

So check out the video, send it to your accountant and see if they can relate.

The Tech Accountant

Warren Buffet and Jay-Z preach financial literacy

2011-10-20T12:49:00.000-04:00

Here's a coolcartoon video of rapper Jay-Z and Warren Buffet teaching kids good money management. Enjoy.

The Tech Accountant

Summer is Over - Time for Reports Cards and Football

2011-09-09T13:41:00.000-04:00

The summer is almost over, and school is back in session. If you have kids, you’ve probably already met the teachers. You may have even enjoyed college football and NFL starting recently.

It’s probably been a long time since you’ve sat in a classroom yourself. But school is never out if you’re looking to make the most of your money in today’s challenging economy.

Here are some classes I'm considering teaching this fall to keep more of your hard earned money in your pocket. Let me know what you think:

• Math 1040: Where are tax rates headed?

• History 2010: Lessons from last year’s mistakes?

• Social Studies 463: Write off meals and entertainment

• Chemistry 162: Is there a “secret formula” for paying less?

• Anatomy 213: What’s the best strategy for healthcare benefits?

If you want to keep the most of what you make, you can’t wait ‘til finals or game day for answers. You need to study now and have a playbook ready just like the football players and coaches. Putting tax-wise ideas and strategies in place today could help avoid an ugly surprise when “Report Cards” and the "Tax Playoffs" come due April 15!

The Tech Accountant

Know the Rules For Employees and IC's

2011-08-30T10:48:00.001-04:00

There is a difference when terminating and employee versus and independent contractor (IC). Better know the rules.

The Tech Accountant

Travelers RMplusonline

Protect Your Auto Deduction in an Audit

2011-08-21T10:44:00.000-04:00

Small business owners (SBO) will be under more scrunity now that the IRS has increased their enforcement efforts in an attempt to close the tax gap. What this means is that audits for SBO's are on the rise. One way to ensure that you are not caught in an audit. is to take a proactive approach to your tax situation and not a reactive one.

Here is a taxpayer that took a reactive approach to her tax situation and the outcome of their dealing with the IRS (this may hit home for the real estate professionals out there). You can read the entire court case here or get the quick recap below. Enjoy.

Protect Your Auto Deduction (mp3)

The Tech Accountant

Washington Changes Challenge the IRS

2011-08-18T22:16:00.000-04:00

Challenges are currently occurring at the IRS. No I am not referring to the time it takes for taxpayers to get assistance from the IRS or even the TAS (Taxpayer Advocate Service). I am talking about the problems the IRS is having with implementing many of the new tax law changes that have been enacted in recent legislation.

I had a chance to review a report from the Treasury Inspector General for Tax Administration and there are currently about 100 new tax provisions that the IRS will have to implement.

Did you know that the IRS is currently dealing with one of the largest tax law changes in the past 20 years? With all the changes on the horizon, the IRS has increased their collection and enforcement personnel (one would think that IRS would increase their efforts to implement the tax changes) and not in enforcement.

What does this mean? Basically that IRS is increasing their collection and enforcement efforts on taxpayers and small businesses (the number of tax returns examined increased for individual, corporate and S-Corps over the past 5 years). Bottom line, the IRS is getting tough on the taxpayer.

The best thing for taxpayers to do is to take a proactive approach to their tax planning and know what to expect in the future. Many of the tax changes can swing in favor of taxpayers and small business owners so now is the time to start thinking about tax savings and not getting caught in any IRS traps.

The Tech Accountant

Airline Tax Turnover

2011-08-09T13:44:00.000-04:00

I am sure many can remember the good old Charlie Brown episodes where Charlie Brown is attempting to kick the football and Lucy is the holder. Well we all know what happens, poor Charlie Brown thinks that he is going to finally kick that pigskin but right when he gets up to the ball, Lucy yanks it away and Charlie Brown falls on his face.

Well that scenario just played out in Congress recently in regards to the airline excise tax and potential refunds to small businesses and consumers and we already know who the characters were played by:

Lucy – Congress/IRS/FAA
Football – Excise Tax Refunds
And of course…
Charlie Brown – The Taxpayers

Yes folks all those potential refunds that many were expecting will never be sent. According to the IRS,

“passengers who purchased tickets prior to July 23 and traveled between July 23 and the date of enactment of today’s legislation are not entitled to a refund of the airline ticket excise tax.”

I guess there had to be a review from the booth on this one. Let me know your thoughts.

The Tech Accountant

IRS Summertime Tax Tip 2011-11: Seven Tax Tips for Job Seekers

2011-07-30T11:44:00.000-04:00

Save money on taxes while seraching for a job.

IRS Summertime Tax Tip 2011-11: Seven Tax Tips for Job Seekers

Summer Travel Tax Free...Until Congress acts

2011-07-25T11:11:00.002-04:00

Thanks to all the "waffling" in Congress, taxpayers that have late summer travel plans may be able to take advantage of a tax free airline holiday similar to many of the sales tax holidays for back to school. With all the delays in Congress regarding the debt ceiling, Congress has yet to approve the budget for the Federal Aviation Administration (FAA).

How much can you save on summer travel and when does the tax savings start? Get all the details here:

Tax Holiday on Summer Travel (mp3)

The Tech Accountant

Let Technology Wear Some of Your Hats

2011-07-21T10:19:00.001-04:00

Small business owners and entrepreneurs all know that starting and operating your own business is a rewarding but tough experience. Typically when a small business is in the start-up or growth stage, the owners will attempt to wear all the hats from being the sales manager to the bookkeeper. Although this will give a small business owner a wealth of experience in operations and processes, could their time be better spent doing what they do best?

Many small business owners want to know how they can break away from doing the back office functions and most times the solution is to hire someone to do the work or outsource. Sometimes when this solution is implemented, the costs are more than the benefit and the small business owner is back at square one.

The new way to get operational tasks done is to use technology in conjunction with and employee or contractor. This way a small business owner can continue to the be the backbone of the economy and cut their operational and overhead costs considerably.

Let's take marketing and public relations for example. In the past small business owners could not compete with their larger counterparts due to the high cost of websites, customer relationship management and public relations companies, tv, and radio, etc. Nowadays a small business owner can build their own website (or outsource) with WordPress, use social media sites and apps like Facebook and Twitter for public relations and CRM, broadcast themselves on YouTube, and podcasts, and get paid instantly with PayPal, Google Checkout and others.

These are just a few ways technology can help a small business owner cut costs and focus on what they do best. Feel free to post your ideas too.

The Tech Accountant

The IRS Gives Notice

2011-07-16T12:43:00.001-04:00

In an effort to collect on the 300 billion plus tax gap, the IRS will be ramping up the amount of notices they send to everyone. Currently there are about seven different kinds of notices that the IRS will send to taxpayers and small business owners and most of designated with the initials "CP" and a number. The CP stands for Collection Process meaning that the taxpayer' account is in collections with the IRS. Get more details of the different notices here:

Notice what the #IRS is doing (mp3)

If a taxpayer receives any of the notices outline in the audio, the first step is to get a copy of the tax return in question and review it. If there is a discrepancy, be sure to contact the IRS as soon as possible to get the issues resolved. There may be a chance that interests and penalties have accrued on the taxpayer's account, so be sue to speak with your tax professional on ways to have the penalties abated.

Be on the lookout in your mailbox taxpayers and small business owners, there may be a chance that the IRS notices you.

The Tech Accountant

IRS will take students money

2011-07-10T18:04:00.000-04:00

That's right students. If you get a summer job, the IRS is sure to take a chunk of your hard earned cash. If you have not already gotten your first paycheck from your summer job, then you will really want to know who that guy FICA is and why he (and the rest of his friends Fed, State and SS) are taking your money.

Here is a quick podcast to explain the what a student should be aware of when they start that summer job.

IRS wants your summer paycheck students. (mp3)

I hope these tips help you this summer students. Have a great summer.

The Tech Accountant

Fill Your College Coffers

2011-07-05T13:33:00.000-04:00

If you are a college student who has had a hard time finding a job this summer, then there may be another way for you to generate the much needed funs to pay for your college tuition and other needs. Surly a college student (and their parents) engages in one of the following activities:

Go Shopping
Go Out to Eat
Go Grocery Shopping
Hang with Friends

If you do any or all of the previous, then here is a quick video on how you can do those activities and still save for college, pay off current student loans or even pay for other college costs.

So if you were not able to find that perfect summer job to give you the money you were looking for, don't fret, just go out and shop.

The Tech Accountant

3 Cool Apps for Small Biz's

2011-06-26T21:31:00.000-04:00

The web and social media are definitely changing the way we do business and it would appear that the government does not want to be left behind. First the IRS introduced their informational videos for small biz owners and the self employed, then followed suit with a Facebook page (also a FB page for tax professionals). Now the IRS and other governmental agencies continue to throw their hats into the social media scene, with some rather neat apps lately.

The IRS, U.S. Department of Labor and the Small Business Administration all have introduced smart phone apps that allow small biz owners, and their employees access to governmental services while on the go. Here's is a quick video about their new apps.

Do you think that the new apps will provide small biz owners and taxpayers with faster more efficient access to governmental resources? Feel free to let us know your thoughts.

The Tech Accountant

IR-2011-69: IRS Increases Mileage Rate to 55.5 Cents per Mile

2011-06-23T14:28:00.001-04:00

IR-2011-69: IRS Increases Mileage Rate to 55.5 Cents per Mile

The IRS has increased the standard mileage rate for the rest of the year starting on July 1st to %55.5 cents a mile. The standard rate is used to deduct the costs of operating a vehicle for business or other purposes. The IRS attributes the increase to the rise in gas prices and their effort is to offset taxpayers costs.

The IRS also increased the rate for deducting medical and moving expenses to $23.5 cents per mile. The rate for charitable mileage remains the same.

Taxpayers who use their automobiles for business purposes may also want to track actual mileage to ensure that they are reaping the most tax benefit. There are special rules regarding actual versus standard mileage rates so be sure to speak with your tax professional for additional guidance.

The Tech Accountant

DOL Timesheet App for iPhone

2011-06-17T09:58:00.001-04:00

Travelers RMplusonline

Good ole Uncle Sam is at it again.

There's a new app for the iPhone that many small biz owners may not be to thrilled about. The DOL has recently released an iPhone app that will allow hourly employees to track their own hours to ensure that they are paid the correct amount. This may open up a can of worms for many small biz owners who may not have accurate employment records and may also increase the amount of fraudulent wage compliants filed with the DOL.

Take a look at the article and let me know your thoughts about this new app. Also if you have an iPhone, iPod touch, or iPad be sure to download the app and try it out for yourself and let us know what you think of it.

The Tech Accountant

15 Tech Factors to Watch For

2011-06-11T10:10:00.001-04:00

Small biz owners and consumers both will like this quick (about 7mins or so) video that provides 15 tech factors to watch for and a look into the future of the internet and how we all will use it. Much of the video confirms the information that I heard recently at a social media seminar regarding the growth of social networks and how consumers use the internet.

Watch the video here

What does this mean for a small biz owner? Technology will be an important and integral part of your marketing, operational, and long term strategy. Small biz's will look more to social networks for customers and clients, using cloud services can keep the small biz owner connected and by embracing technology your small biz will be better positioned for growth.

So what do you think small biz owner's? Are you currently using technology (social media, smart phones, cloud computing) in your small business?

Look forward to hearing from you.

The Tech Accountant

SBA Offers iPhone App for Small Businesses

2011-06-02T09:38:00.001-04:00

SBA Offers iPhone App for Small Businesses

Here's a cool way to stay interacted with the SBA and help get your small biz up and running. I just downloaded it and will play around with it today. Should be a great app since Palo Alto is know for there great business plan software.

The Tech Accountant

9 Factors to Legitimize Your Biz

2011-05-26T11:04:00.001-04:00

Recently I was privileged to speak at the Atlanta Professional Business Network (APBN) event celebrating National Small Business Week and the topic was how entrepreneurs can legitimize their businesses and minimize the chances of an IRS audit. We went over quite a bit of material that evening, but here are the major points:

According to the IRS, whether or not an activity is presumed to be operated for profit requires an analysis of the facts and circumstances of each case. Deciding whether a taxpayer operates an activity with an actual and honest profit motive typically involves applying nine non-exclusive factors contained in Treas. Reg. § 1.183-2(b). Those factors are:

1. the manner in which the taxpayer carried on the activity,

2. the expertise of the taxpayer or his or her advisers,

3. the time and effort expended by the taxpayer in carrying on the activity,

4. the expectation that the assets used in the activity may appreciate in value,

5. the success of the taxpayer in carrying on other similar or dissimilar activities,

6. the taxpayer's history of income or loss with respect to the activity,

7. the amount of occasional profits, if any, which are earned,

8. the financial status of the taxpayer, and

9. elements of personal pleasure or recreation.

No one factor controls, other factors may be considered, and the mere fact that the number of factors indicating the lack of a profit objective exceeds the number indicating the presence of a profit objective (or vice versa) is not conclusive. A profit objective in an earlier year does not automatically provide a taxpayer a blank check with regard to losses incurred in later years.

The bottom line for small business owners is to keep good records, operate in a businesslike manner and have a profit motive as your goal.

The Tech Accountant

IRS Marks Small Business Week by Showcasing Tools, Resources; Spotlights Tax Benefits Available in 2011

2011-05-18T10:38:00.001-04:00

IR-2011-54: IRS Marks Small Business Week by Showcasing Tools, Resources; Spotlights Tax Benefits Available in 2011

Get the assistance you need from the IRS. Also sign up for the webinar today at 2pm ET titled "Small Business Advantage"

The Tech Accountant

3 Ways to Fight Identity Theft & Tax Fraud

2011-05-07T10:11:00.001-04:00

As many taxpayers continue to get over the tax filing season, there are quite a few still waiting to hear from the IRS regarding their tax refunds. Most of the time the refund claim can be tracked by using the IRS’s “Where’s My Refund” system on their site but for those taxpayers that have been the victim of identity theft; locating their refund may be a bit more challenging.

Recently in the Tampa Bay area, there were numerous cases of identity theft where someone had used the taxpayers’ names and social security numbers to file fraudulent tax returns claiming refunds. Typical cases of identity theft and tax return information include complex schemes that either intercept taxpayer information via the mail or online email phishing communication that tries to get the taxpayer to enter their personal information on what appears to be an IRS site. Currently the IRS and the Postal Service investigate any cases of identity theft and tax information.

So what’s a taxpayer to do if they think they are a victim of identity theft and tax return information? Here are 3 Steps one should take:

1. If the IRS contacts you that your identity has been used for tax fraud, respond to the correspondence ASAP. Identity theft and tax issue notices will outline if more than one return has been filed with your information or that you have wages from an employer that you do not know.

2. If you have not been contacted by the IRS, and you think that you have been a victim of identity theft and tax fraud, submit a copy of your identification, a police report detailing the incident, and Form 14039 to the IRS.

3. Contact the IRS Identity Protection Specialized Unit at 1-800-908-4490

Identity theft and tax fraud are on the rise currently and taxpayers must do everything they can to protect their personal information from getting in the hand of unscrupulous persons. By taking a proactive approach, the risk of losing one’s identity can be minimized.

The Tech Accountant

3 Steps to a Smoother Tax Season

2011-05-04T10:30:00.002-04:00

Now that tax season is over, many small biz owners are getting back into the groove of running their operations and focusing on the rest of the year. As tax season was winding down, I had a great deal of small biz owners approach me and ask what they can do to make tax season move a bit more smoothly next year. The majority of the problems that small biz owners are facing are closing their books on time, organizing their important documents for tax season, and getting those documents to their tax professional for tax preparation.

Usually the answer is better organization and proactive tax planning throughout the year, but after I make that comment, most small biz owners look at me with a blank stare. Now I would like to provide a bit more detail regarding how to streamline their business operations and stay on top of everything before tax season comes back around. Here are three steps to getting your small biz ready for next tax season:

1. Use a computerized accounting system
2. Scan important documents
3. Use a file storing system

Listen here for more details on getting your biz ready for next filing season.

Listen!

These are just a few of the things that a small business owner can use to streamline their business operations and get them ready for a smooth tax season next year. With a little assistance, a small biz owner can have a less taxing season next year.

The Tech Accountant

More Business or More Work

2011-04-03T19:21:00.000-04:00

Do you want more work or more business?

Recently I was reading some comments in one of the LinkedIn groups I belong to regarding building your business and controlling the growth and one of the comments came from a husband and wife outfit (he handles the marketing and she handles operations). The husband stated that his wife wanted more business and not more work and the comment got me thinking “Do small business owners know the difference?”

I personally get asked similar questions by all kinds of people and organizations. Whether it is the survey from a vendor catering to small businesses, or a new person I just met at a networking function, the question always arises if my firm is seeking more work. Let’s take a closer look at the difference between more business and more work.

More Work

More work refers to a small business operation that the owner completes all or a majority of the tasks themselves. This type of business operation is okay for a start-up business. However, if and when a small business owner wants to take their business to the next level, the business owner must duplicate themselves and train other people to do part of the tasks or complete everything so that the business owner’s own efforts are used elsewhere.

More Business

Typically a small business can only take on more business once they have duplicated themselves efficiently and effectively and the majority of their efforts are focused on bringing in more “work” for others to do. If a small business owner is focused on completing the work, there is little time left to cultivate relationships and bring in more business. Hiring employees or outsourcing part of your business operations will allow the small business owner more time to grow their business.

So if you are a small business owner that wears all the hats in your operation, there’s a likely chance that you are taking on more work than business and once you reach your own personal capacity to do work, your business will have difficulty growing.

Let me know your thoughts on work versus business and feel free to post your comments.

The Tech Accountant

IRS helps you save for retirement

2011-03-30T12:39:00.000-04:00

Here’s a great way to save for retirement and the IRS is helping you do it. Typically if you contribute funds to an IRA, a taxpayer can claim an above the line deduction for their contribution. A contribution may also make a taxpayer eligible for the retirement savings contribution credit. Listen below for details on how a contribution to an IRA will save you money on taxes.

Listen!

So how is the IRS helping the taxpayer with IRA contributions this year?

Due to Emancipation Day (a holiday in the District of Columbia) taxpayers have a few extra days to make contributions to an IRA. The holiday falls on April 15th, and the IRS will be closed that day thus moving the date for making contributions to an IRA (and filing your tax return). Be sure to speak to your tax advisor to see how an IRA contribution can benefit you.

The Tech Accountant

5 Taxpayers the IRS is Targeting

2011-03-22T07:01:00.000-04:00

There was a great deal of news that occurred over this past weekend but one of the more important stories was probably the deal between AT&T and T-Mobile to merge pending government approval. This will make AT&T the largest mobile provider and will affect a great deal of customers. There is however a little bit of other news that many tax payers may want to know regarding a new list out from the IRS.

According to the IRS, they are targeting specific groups of taxpayers for audits this year and taxpayers need to ensure that their return will not be flag by the IRS’s “Discriminant Function”. The 5 areas where the IRS is putting more focus is:

1. Schedule A Filers – Those that itemized their deductions

2. Schedule C – Those solo entrepreneurs that are not corporations

3. Schedule E – Those that own rental properties

4. Cash Basis Businesses – Those businesses that only use cash and not credit

5. Sales of Assets and other investments – Those taxpayers that have investments or assets for investments

What’s a taxpayer to do to ensure that their return is not flagged by the IRS? The most important factor is keeping good records that proved your deductions or credits are valid and that you qualify for them. Keeping good records can also help if your tax return is selected for an audit. Audits go a bit more smoothly when your paperwork is organized and typically result is no change or maybe even a little more money back for you.

The Tech Accountant

IRS Videos for All

2011-03-17T07:48:00.000-04:00

As the IRS continues toward a more technology focused operation, taxpayers will be glad to know that the IRS recently added videos to their tools to assist taxpayers with a myriad of tax issues. Topics include disaster information, education, filing and paying taxes, IRS Audits, IRS Liens, post filing issues, recordkeeping, retirement plans and scams & fraud. The videos are broken down by individuals, small businesses, tax professionals, and governments. The IRS has also provided a section for those taxpayers that speak Spanish. The videos can be found here and typically run from 3 to 15 minutes.

This is another resource for taxpayers (and tax professionals) to use to understand their tax situations.

The Tech Accountant

Your data is safer in the clouds

2011-03-13T09:27:00.000-04:00

Many small biz owners are still on the fence about taking their biz operations to the clouds. In a recent interview with Michal Lev-Ram for CnnMoney.com, Google’s enterprise chief Dave Girouard provides some compelling reasons for small biz owners to reconsider their stance. Most small biz owners cite security and uptime as their biggest resistance to the cloud here’s what Girouard had to say about both issues:

“Our belief is that your data is safer inside Google than it is inside your own computers. But we are doing all sorts of things to make sure our user data is protected.”

In regards to cloud system’s uptime, Girouard stated:

“There's no system that's prefect and no company that's perfect and we certainly aren't. In 2010 Gmail had 99.984% uptime.”

His statements got me wondering if those small biz owners that were resisting the cloud had procedures in place to protect their data and if their procedures had a 100% uptime. I posed the question of the cloud in one of my accounting discussion boards to get small biz accountants’ take on the matter and many of them were still resisting the cloud. One accountant even said that she used a portable hard drive that she took back and forth with her to the office.

Although the portable drive is a great way to save and backup your mission critical data, it should only be a small step in your backup and data warehousing plan. Which brings me to another point Girouard made in the article that cloud based companies are more agile than their “old school” counterparts. When asked about the advantages of Google’s cloud services versus those of other major software vendors, Girouard stated that since they are a 100% web company it is easier for them to adapt to the changes in the marketplace as they happen.

This is true for any business. Even a small business can be more nimble than their competitors if they build their business infrastructure in the cloud. Feel free to read the CNNMoney.com article and draw your own conclusions and opinions and post them as a response to this blog post. Would love to hear your thoughts.

The Tech Accountant

3 Ways Small Biz Owners Can Use Tablets

2011-03-10T10:20:00.000-05:00

Up until recently, the sign that a small biz owner was upwardly mobile was a laptop or even a netbook. You would go to the local coffee shop and see everyone deeply engaged in their work or online meetings via their portable computers. Fast forward a few years to the present and laptop and netbooks in the coffee shop are a thing of the past like Starbucks “secret menu” items.

Now when you go into a coffee establishment, everyone is swiping away multi-tasking on their tablets. Tablets are making quite an impression in the consumer market and many larger biz’s are using them in some very interesting ways. Small biz owners can also enjoy the benefits of using a tablet instead of your clunky laptop. Here are three ways:

1. Remote Desktop – Need access to your laptop or desktop back in the office? With a tablet and remote desktop app (Like GoToMyPC) you can access your PC or Mac back in the office and remain fully connected.

2. Presentations – Need to watch or join a web conference or presentation? Use a web conferencing app like Webex or GoToMeeting to join online meetings while away from your office.

3. Accepting Payments – Need to improve your cash flow by accepting payments away from the office? There are quite a few apps out there that can assist with this task. A few that come to mind are PayPal, Sage Mobile Payments and Intuit GoPayment.

These are just three reasons I came up with for using a tablet from my own business processes (Feel free to add more). The beauty is most of the apps mentioned are free and coupled with the fact that you don’t have to carry around that cumbersome laptop, a tablet may be a wise choice for your small biz.

The Tech Accountant

Is the IRS "Lien"ing on You?

2011-03-07T22:03:00.000-05:00

The IRS recently announced changes to the lien filing process and OIC (Offer in Compromise) changes that are suppose to help taxpayers meet their tax obligations. The changes are the following:

1. The dollar threshold for when liens are generally issued is being increased, to at least $10,000 in back taxes. The previous threshold was $5,000.

2. The IRS will make it easier to withdraw a lien once a person pays off their tax debt. However, the withdrawal is not automatic. Once full payment is made, you will have to request the lien be removed. To speed up the withdrawal process, the IRS will streamline its procedures to allow collection personnel to withdraw liens.

3. The IRS will withdraw liens in most cases where a taxpayer signs up for a direct debit installment agreement, which means the IRS will pull the money directly out of your bank account. If you currently have an installment agreement but switch to a direct debit agreement, you can request that the lien be withdrawn. There is a catch. The IRS says liens will be withdrawn after a probationary period to make sure the direct debit is working.

4. Small businesses with $25,000 or less in unpaid taxes can now get an installment agreement over 24 months. It used to be that only small businesses with under $10,000 in liabilities could participate.

5. The IRS will revise the Offer in Compromise rules to allow participation by taxpayers with annual incomes up to $100,000. In addition, those with a tax liability of up to $50,000 may now submit an offer, double the old limit of $25,000 or less.

The Tech Accountant

Want a Big Tax Refund...Here's How

2011-03-02T08:55:00.002-05:00

Thanks to a fellow tax colleague of mine, here is a funny video that will hopefully educate many about how taxes work and why your tax refund is your money to begin with. Enjoy

The Tech Accountant

Form 1099 Repealed Update

2011-02-24T08:51:00.000-05:00

Well Congress has been working hard debating on how they will repeal the Form 1099 reporting requirements that were enacted last year, but the details currently are rather confusing for small business owners and landlords.

Just to give you an update on what's going on, there are two bills in the House and one in the Senate that are attempting to address the repeal of the Form 1099 reporting requirements and here is a brief overview of each:

Listen!

For more details regarding the Form 1099 laws that were passed last year and how they currently affect small business owners and landlords be sure to watch the video on our website.

The Tech Accountant

4 Ways Cloud Computing Can Improve Your Small Biz

2011-02-20T16:10:00.001-05:00

Recently I had the pleasure of reading a survey by Gartner Inc. regarding the future of cloud computing for large scale businesses. According to the survey, by 2015 around 50% of the Global 1000 businesses will use cloud computing for many of their revenue generating processes. That got me to thinking, “How can the small biz owner benefit from the cloud?”I came up with four ways that I think the cloud can improve a small biz’s operations. Here are four reasons that I could think of that make cloud computing a viable option for a small biz owner:

1. Cloud computing make a small business more agile because the owner can utilize IT resources in a faster more efficient manner. Gone are the days of setup and implementation of on premise software. A small biz owner can sign up for a cloud service and be up and running that same day.

2. Cloud computing allows small biz owners scaled economies providing them better use of the resources that they pay for. Small biz owners can have better control over their resources because the features that they pay for are the only ones that they need. In the current small biz environment, many software resources are being underutilized or not used at all.

3. Cloud computing makes small biz owners more productive. With anywhere anytime access, cloud resources allow small biz owners the ability to work from anywhere and be “open” virtually anytime.

4. Cloud computing will improve a small biz owner’s bottom line. With cloud computing being at the forefront of the new way of doing business, there will be a great deal of entrants into the market all competing for the small biz dollar. Vendors will also add more benefits to their cloud offerings expanding the growth of cloud computing making the current model of operations a thing of the past.

These are just a few reasons that I came up with that make operating your small biz in the cloud an option that a small biz owner may want to investigate. Feel free to post your opinions regarding cloud computing and small biz. Would love to hear your thoughts.

The Tech Accountant

10 Crazy Tax Deductions

2011-02-18T08:04:00.001-05:00

Here's a little humor from an article that I came across yesterday while going through my e-mails for the day. I would hope that it brings a little light to your Friday during this busy, stressful tax season with all the electronic filing delays.

Here is the usual disclaimer of not trying any of these tax deductions at home. Enjoy

10 Crazy Tax Deductions

The Tech Accountant

3 Steps to Digitize your Documents

2011-02-12T19:04:00.000-05:00

I am always looking for better ways to accomplish everyday tasks for small biz owners and individuals. One problem that many face is how to keep, and organize important documents so that they are readily available when needed. Thanks to technology, we can now digitize our documents and keep them in the clouds thus making our desk space clean and clear of clutter. Here are three steps to take the documents from your desk to the clouds:

1. Start using or purchase a scanner – Scanners have come a long way since the days of the basic flat bed (although one of those would still work). Scanners have better image quality, are faster, and come with more features than the early years. Scanning your documents allows you to keep a digital image of the documents and save it for later use. Depending on your needs, there are multi-purpose machines, or scan only machines for those who will have larger paper workloads.

2. Save documents to the cloud – By saving your documents in the cloud, you have another level of protection in the case that your hard drive is stolen, corrupted or destroyed due to a disaster. Again depending on your needs, there are quite a few vendors that offer low-cost or even free cloud storage services.

3. Use Smartphone apps – If you are a small business owner or individual that is away from your office a great deal, Smartphone apps are one of the best ways to track your expense receipts and make digital copies of important documents. With these apps your can save digital copies of your receipts and convert them to PDF’s for later use. Check your app store for these apps.

These are just a few ways to digitize your important documents. Be sure to do a needs assessment before digitizing your documents and taking them into the clouds to ensure that your current and future needs will be meet with the technology that you choose.

The Tech Accountant

Give a credit, Take some credit

2011-02-05T17:36:00.000-05:00

Can you remember back to a time when many were excited to utilize the first time home-buyer credit to save money on their taxes?

Well the party is over for many since the 2 year grace period for repayment of qualified home purchases has ended. Many taxpayers are now wondering how they will pay for the credit that is now being taken back.

The short answer is it depends on when the house was purchased and if the taxpayer is still living in the home or not. The IRS will be sending three different notices to taxpayers depending on what your home status is:

• CPO3a – will be sent to taxpayers who purchased a qualified home in 2008 and who begin repaying the credit with your 2010 tax return.

• CPO3b – will be sent to taxpayers who purchased homes in 2009 and early 2010 reminding them of the repayment rule and the ramifications if they sell the home or change the use.

• CPO3c – will be sent to taxpayers whose principal residence is not currently the residence that they claimed the credit for.

Be sure to keep a close eye out for the IRS notices in your mailbox.

The Tech Accountant

You Can't File Your Tax Return Yet

2011-02-02T18:39:00.001-05:00

After notifying taxpayers recently that many tax forms would not be ready for filing until February 14th, the IRS added some more forms to the list and these have an indefinite date for filing. Here are 6 tax forms that the IRS said will be delayed until a later date for filing.

Listen!

Hopefully the IRS will give a specific date when these forms can be file in the near future.

The Tech Accountant

2010/2011 Tax Outlook -What happen and what to do in the future

2011-01-30T14:58:00.001-05:00

The lame duck session of Congress is behind us and the new Congress is in session. So what happen at the end of 2010 and what can taxpayers expect going forward?

Here's is a brief overview of what the lame duck session did and how you can plan for your future taxes now.

Listen!

The Tech Accountant

Form 1099's are EZ with Peachtree

2011-01-26T18:16:00.001-05:00

It's that time of year again. The wonderful tax filing time for small biz's and this year is the start of some of the many changes that will affect processing of Form 1099's for payments to vendors. One way for a small biz owner to make the process a bit less stressful is to use small biz accounting software in their business. Here is a quick video on how easy it is to file and complete your Form 1099's using accounting software.

The Tech Accountant

Is snow clouding your biz? Here are 3 ways to bring back the sunshine

2011-01-13T19:56:00.001-05:00

Snow storms that bring icy roads are a sure fire way to stop many businesses from operating, but for some businesses a snow storm should not be a problem. As many of you already know there has been quite a few snow storms moving across the nation (Florida was the only state not to have snow this week) lately and the one that hit the southeast has brought many cites to a halt. Technology can help many small businesses continue operations even in the event of inclement weather. Here are three technologies that can keep your small business operating when Mother Nature throws snow balls at your operations:

1. Web Conferencing – You have your presentation all ready for the big meeting tomorrow but when you wake up ready for work you find out the city is shut down due to a blizzard. No worries. By using a web conferencing service your meeting can continue as planned. Web conferencing allows users to conduct live meetings, presentations, and training via the internet. So if you are stuck at home find a nice quite place (away from the kids) and conduct your meeting just like you were face-to-face

2. Web Portals – You have the contracts all typed up and are ready to deliver them to the client but there is one problem, the roads are icy and you can’t make it to the client’s location. Not a problem if you are using a web portal. Web portals allow you to share documents with virtually anyone anywhere as long as they have access to the internet. The client can login to the secure portal (just like online banking) and access the document, review and send back to you. The contract is in the client’s hands possibly faster than you delivering it.

3. Remote Desktop Sharing – You have been snowed in your home for the past few days and have not been able to make it to your client’s location. The client is having a problem with their software and they need you there to resolve the issue. With a remote desktop sharing, you can access your client’s computer and walk them through the solution to their problem or even resolve the problem yourself. The client is happy that they can continue business as usual and you look like a hero without even leaving your home.

These are just a few ways a small business owner can use technology to continue their business operations when dealing with mother-nature. We currently use all of these technologies are more in our firm even when there is not a snow storm. Be sure to research these solutions for your small business so that you can apply them in the future.

The Tech Accountant

Late Gift from the IRS

2011-01-10T12:42:00.001-05:00

The IRS is still in a holiday season mode and kicked off this tax season with a gift to taxpayers. No it's not a pass from doing your taxes this year, but it may prove beneficial to many.

Listen to the details below:

Listen!

The Tech Accountant

Tax Relief and Your Small Biz

2011-01-06T07:35:00.000-05:00

For most small business owners, the year 2010 was a continuation of hard economic times felt during the past two years. The economic indicators now state that there are signs that the economy is starting to recover, however many small business owners are still waiting to feel the effects of the recovery. In an effort to assist the small business owners, Congress passed and the President signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 on December 17. The multi-billion dollar tax package includes a great deal of modifications to current tax law affecting small business owners and extends many tax provisions that expired at the end of 2009.

Small Businesses Modifications

The 2010 Tax Relief Act provides businesses with better incentives for investing in property that will help them run their businesses more efficiently. The Act increases the bonus depreciation limit from 50-percent to 100-percent for property purchased during periods September 8, 2010 thru December 31, 2011. The Act also extends 50-percent bonus depreciation on property purchased from December 31, 2011 thru December 31, 2012. Small business owners that have certain long lived property or transportation property may be eligible for 100-percent expensing for property placed in service before January 1, 2013.

The depreciation incentives for small business owners do not stop there, in addition to bonus depreciation; Code Sec. 179 Expensing (named after the IRS Code) has been modified. The investment limits were increased under previous legislation and the 2010 Tax Relief Act grants a $125,000 limit and a $500,000 limit on investment for tax years beginning in 2012. Depreciation allows small business owners to expense property purchased against their taxable income. The modifications to the tax law allow small business owners to recover the cost of property used in the businesses fast than traditional depreciation methods.

Small Business Extensions

There were quite a few extensions of previous tax law that were set to expire or expired in 2009. Among those extensions includes:

• 100 percent exclusion of gain from qualified small business stock

• Transit benefits parity

• Work Opportunity Tax Credit (with modifications)

• New Markets Tax Credit (with modifications)

• Differential wage credit

• Brownfields remediation

• Active financing exception/look-through treatment for CFCs

• Tax incentives for empowerment zones

• Special rules for charitable deductions by corporations and other businesses

Keep in mind that many of the 2010 Tax Relief Act’s provisions are temporary. It is important to plan early to maximize your tax savings. Be sure to speak with your tax professional to get all the details regarding the tax law changes.

The Tech Accountant

New Year New Delays

2011-01-03T15:01:00.000-05:00

Happy New Year! Since today marks the first official back to work day (although technology can help you work anytime) one would think that individuals would come back bright-eyed and bushy-tailed ready to get things done. Well if filing your taxes quickly was on your list of things to do...you may want to push that back a little bit thanks to the recent tax laws passed and the IRS.

If you fall into any of the following categories, filing your tax return may be delayed. Listen for details below.

Listen!

The Tech Accountant

Tax Extenders...The Gift that keeps giving

2010-12-23T17:54:00.000-05:00

The lame duck session of Congress finally made a move on the tax issues looming for the rest of the year and going forward. Here is a quick video outlining some of the individual tax updates that will affect your taxes.

The Tech Accountant

How the States have turned to “The Grinch”

2010-12-22T07:48:00.001-05:00

Thanks to the state and local taxation (S.A.L.T.) experts over at Peisner Johnson and Company, LLP here is a brief video of the 10 worst states to give charitable contributions in. For those that did not know, there are quite a few states that tax charitable contributions of inventory and non-inventory items. So for those small business owners that were thinking about giving away some of their inventory or non-inventory items to charity, think again.

http://portal.sliderocket.com/AHJKO/Charitable_Donations

The Tech Accountant

Small Biz Cloud Considerations

2010-12-14T16:13:00.000-05:00

Small business owners (SBO’s) who use any kind of technology in their business will have undoubtedly heard someone mention “cloud computing” or “SaaS” (software as a service) and how this new technology will be the future of their business operations. Due to tighter small business budgets and a bit of misunderstanding of what the cloud has to offer, many small business owners continue with the “if it ain’t broke…” way of doing things. When speaking to small business owners about how they can streamline operations and save money, the topic of cloud computing seems to come up a great deal. I usually hear reasons for resisting the cloud to include security issues, control of data, and learning curve.

More importantly, if a small business owner is in the process of investigating a move to the clouds what steps should he take to ensure a smooth transition?

What I found out is that not every cloud accounting vendor has designed their product in the same manner. With security, disaster recovery, and data access being ranked the most important pain points for small business owners, I felt there was a need to get these questions answered first.

There are typically two approaches a cloud vendor will take when building their security infrastructure. Some cloud vendors address the security issue internally usually by building their own data centers with security measures built in and some cloud vendors outsource these functions to another vendor. Of the cloud accounting vendors that I spoke with, one did outsource their data center to an Amazon server farm. Their rationale was that Amazon’s security is top notch and they could focus their energy of developing the features of their cloud accounting product.

Cloud accounting products must also reassure small business owners that their data will be safe in the event of a disaster. A small business owner must ask in depth questions regarding the cloud vendor’s data center location, if there are additional data centers, and where those data centers are located to ensure that in the event of a disaster, the small businesses data will be protected and available.

Although having access to the data at all times is an important part of cloud computing, knowing who has access to your data is just as important. All the cloud computing vendors that I spoke to assured me that the only individuals that would have access to my data would be the individuals that I gave permission to. As with on premise software, a small business owner must have the proper controls in place to deter unauthorized access to certain areas of the software. The cloud vendors that I spoke to have integrated various levels of controls into their cloud offerings that include user name and password protection, password expiration dates, and permission access that limits what certain users can access.

As you can see, there are quite a few issues that need to be address before a small business owner takes a leap into the clouds. By speaking with cloud vendors, mapping out a plan, and test driving systems before going full speed with a cloud accounting solution, a small business owner can move their mission critical data to the clouds seamlessly.

The Tech Accountant

Form 1099's and You

2010-12-06T00:44:00.002-05:00

Here is the topic that just won't go away....at least maybe not this year. Due to the lame duck Congress not reaching a compromise, the Form 1099 reporting requirements look like they will be a reality in the coming years.

Still confused about the new Form 1099 reporting requirements, feel free to watch this short video to fill you in on the details.

The Tech Accountant

Small Biz vs. Form 1099's

2010-11-30T14:47:00.000-05:00

I was under the impression that I would have more details regarding the proposed repeal of the Form 1099 reporting requirements today, but did not know it would be bad news.

Yes folks the Senate failed to repeal the 1099 requirements that many small business owners were hoping they would finish before the year end.

This means in 2012 small businesses will have the burden of providing a 1099 for any purchases that total $600 or more. Additionally very little information had been provided regarding the increased 1099 reporting requirements for landlords (in another bill this year) that starts in 2011.

Get ready for increased workloads small businesses for the score right now is Form 1099 (1), Taxpayers (0).

The Tech Accountant

The New Smart Vault

2010-11-22T08:49:00.000-05:00

Cloud vendor SmartVault has come out with some great new features in their update release that are sure to be on the holiday list for small biz owners. Be sure to view the video below to see the new features in action.

I will be testing the new feature this week (since this will be a slow week) and will be sure to post some feedback regarding them. I will say that I am glad to see the product expanding more into other markets and not just the QuickBooks market. Smart....very SmartVault.

The Tech Accountant

Cloud Accounting for Small Biz's

2010-11-17T10:49:00.001-05:00

Just in time to get small business owners ready for the new year and tax season, cloud accounting vendor Outright has partnered with Google and Shoeboxed.com to offer small business owners an easier way to integrate back office admin functions with their accounting product. Be sure to watch the video below and see how using cloud products can save you money, increase productivity, and focus on growing your business.

The Outright product is mainly geared toward sole proprietors (Schedule C)....sorry for everyone else, but there are cloud options available for you too.

The Tech Accountant

Share your Biz Story...Win an iPad

2010-11-16T12:35:00.000-05:00

Here's a cool contest for all the small biz owners and entrepreneurs out there. Be sure to watch the video and then post your own story.

The Tech Accountant

1099 Reporting for Rentals

2010-11-12T16:28:00.001-05:00

Rental property owners will have a little more work to do next year thanks to a new law that requires them to file Form 1099-MISC forms for purchases over $600. Hear all the details below.

We will keep you posted on the updates since the IRS is supposed to provide additional guidance.

The Tech Accountant

You Deserve a Cool Credit

2010-11-09T11:35:00.001-05:00

In these cooler weather months it's good to know that the IRS is offering us a cool credit that may warm our wallets and our homes. Check out all the details in this quick video.

The Tech Accountant

A Lame Duck still Quacks

2010-11-04T15:17:00.000-04:00

All the votes have been tallied and all the precincts have reported…some people are happy with the outcome and some are not. Whether your Congress person won or not is not the issue at this point, the issue lies in what is going to happen in the lame duck session of Congress for the rest of the year and will you as a taxpayer be prepared. Here’s a quick rundown of what is on the table for taxpayers before the year ends:

• Bush Tax Cuts extended?

• Estate Tax?

• AMT?

• Health Care Reform?

I am not a betting man but would have to think that more than likely some taxes are going to go up. What taxpayers do before this year ends is important but you may need to call the psychic hotline or a crystal ball to assist you. When I looked into my crystal ball this is what I have come up with.

Listen!
Be sure to speak to your tax professional (psychic) to ensure that all of your ducks are in a row for the upcoming tax season.

The Tech Accountant

Using Logic and Love in Your Small Business

2010-11-01T21:23:00.000-04:00

While going thru my e-mails recently, I came across one of those chain e-mails that everyone sends…you know the one’s that always ends with send this to….and instead of simply deleting this one I figured what the heck let’s see what this one is all about.

Well the e-mail was initially sent to provide the reader with a new outlook on living their lives knowing when to use logic or love. It described in detail what logic and love were and how they are used in our interactions and relationships every day. Logic was described as being aggressive, argumentative, detailed oriented and sparking debate. Love was described as being compassionate, empathetic, building relationships and communion.

The descriptions got me to thinking “How can one use logic and love in their small business operations” since many of the terms used to describe logic and love are needed by entrepreneurs to run their own business. I came up with two major areas where an entrepreneur can use logic and love to effectively manage and grow their business.

Business Operations – Logic Rules the Day

Entrepreneurs need to use logic when they are focusing on business operations. Since logic sparks debate and is argumentative, those skills will come in handy say when dealing with bill disputes or improving daily operational procedures that may need reviewing. Logic is also detailed oriented and attention to detail is always great for productivity and efficiency. Logic will also assist an entrepreneur with ethical issues since when one is using logic there is typically no grey area.

Start-Up/Marketing – Love What you Do

Entrepreneurs must initially use love when they start their business. One of the most important aspects of starting a business is finding something you love to do and offer that product or service to the public. I love to help people save money, time and grow their business that’s why I’m in accounting. An entrepreneur should find what they are passionate about before starting a business. The passion will then carry over in your dealings with clients/customers. Marketing is simply about building relationships, and being compassionate about your clients needs. By using love to build relationships, a small business owner has a better chance of growing their business.

These are just a few of the ways I see that an entrepreneur can use logic and love to assist them in growing their business and becoming great at what they do. Feel free to post your comments below.

The Tech Accountant

10 Signs Your Small Biz may be ready for the clouds

2010-10-28T12:17:00.000-04:00

Cloud computing continues to make inroads into our everyday lives as indicated by many surveys taken recently. That got me wondering if small business owners were also embracing the cloud more for the coming year. There are still quite a few small businesses out there that feel the need to continue to use on premise software for their operations feeling that if it ain’t broke…well you know the rest. The importance of using the cloud finally came to a head when I was recently on an engagement and before I could start to work, I had to update the software. So I came up with a brief list of 10 signs that your small business is ready for the clouds:

1. You receive a CD to load the software

2. You have to go thru a registration/renewal process

3. A new version comes out every year

4. Software has to be updated

5. You have to call tech support for problems

6. You spend time being tech support researching your own problem

7. Support contract expires every 3-4 years

8. Corrupted data issues

9. Desktop has too many version icons

10. Your PC runs slower

Listen to me elaborate a bit more about the list here:

Listen!

This is just a quick list of things I see when working with clients why the cloud would help them lower their costs, increase productivity and efficiency and let them focus on growing their businesses. If anyone can think of any more or even why a small business owner should stay with on premise software feel free to post a comment to the post.

The Tech Accountant

A Win for Small Businesses

2010-10-26T09:01:00.000-04:00

Not too long ago our friends over at Microsoft released a very robust product called Microsoft Security Essentials, an antivirus product. The cool thing about this release is that the antivirus software is one of the highest rated products on the market and it is a free download. The only downside was that the End User License Agreement (EULA) only allowed for personal use (although I wonder how a sole proprietor with a single computer case would apply to the situation but that’s a whole other topic).

Well Microsoft has in a sense thrown small business owners a bone this month by amending their EULA to allow the software to be used by small businesses with 10 or fewer PC’s. This is a great way for a small business to save money by reducing their technology expenses, become more productive since the software is less of a resource hog on the computer, and protect their PC’s and whatever is on those PC’s.

Here is a video with the details:

When tested the software ran smoothly in the background and did not slow the computer down at any point (like when running scans or updates). There may be a chance that the software is not a good fit for your small business, so be sure to speak to a technology consultant to accurately assess your needs.

The Tech Accountant

Uncertain Tax Planning

2010-10-21T16:21:00.000-04:00

The fall season typically brings about a change. Whether it is change in the temperatures, the changes in the leaves, or the change in the time (fall back) around this time of year everyone is experiencing a change. One thing that should not change during this time of year is a taxpayers’ ability to properly plan for the upcoming tax season. This year however, is one of the most difficult tax years to plan for due to the uncertainty in the Congress and our economy. The economy is currently filled with uncertainty making many small businesses hold on to their hard earned money and not hire more workers. Congress is adding their uncertainty to the pot by recently adjourning without addressing the expiring Bush tax cuts in addition to other important tax issues (AMT, estate tax, and more).

What is a taxpayer or small business owner to do in a situation of uncertainty? Listen to some of the ideas we have come up with for our clients here.

Listen!

The Tech Accountant

A look back at the tax season

2010-10-16T11:32:00.000-04:00

Now that the tax extension deadline is one day into the rear view mirror, many taxpayers (and us tax professionals too) would like to take a break away from taxes. This gives me the opportunity to sit back and reflect on some of the more memorable comments I heard during the year regarding taxes and filing. There were quite a few areas of tax law where some taxpayers I spoke with were unclear as to the rules but some of the major ones had to do with extensions with balances due, and failing to file a tax return.

Tax Extensions

When a taxpayer does not have all the information to accurately complete their return by the deadline, the IRS will allow for an extension of time to prepare the tax return. To request an extension, taxpayers must file Form 4868 (individuals) or Form 7004 (businesses) on or before the due date of the return. Typically this is where the misunderstanding starts. An extension of time to file your return does not include an extension of time to pay your tax liability. Taxpayers filing extensions should estimate to the best of their knowledge their tax liability and send a payment when filing their extension.

Failure to File

When a taxpayer does not file a tax return by the due date (including extensions) a failure to file penalty may be incurred. This rule has been in existence for quite some time, however many taxpayers are unaware of the penalty. This may also be a good time to notify taxpayers that the failure to file penalty has been increased for income tax returns filed more than 60 days after the due date (including extensions). Returns filed after 2008 qualify for the increased failure to file penalty in which the minimum penalty will be $135 or 100% of the tax not paid.

These are just two of the more frequent misconceptions that I personally heard about during the year, but there are more. With all the recent changes in tax law, there are sure to be more “grey” areas where many taxpayers may fall thru the cracks. One the reasons I always say taxes are a year round strategy that can be proactively done with your tax professional instead of reactively at year end.

The Tech Accountant

Statements too broad for the IRS

2010-10-07T11:29:00.000-04:00

Recently when speaking to a few of the attendees of our small business workshops the topic of business expenses came up and one of the attendees was under the impression that all a business owner needed to validate an expense was their bank or credit card statement. Unfortunately it gonna take a little more than that for it to fly with the IRS.

The IRS defines a business expense as a cost that is ordinary and necessary to carry on the trade or business. Expenses are typically deductable if the business is out to make a profit (i.e. not a hobby). If a small business owner is audited, and a review of the business expenses is warranted, it is important for a small business owner to have more than just their bank or credit card statements to substantiate their purchases. The IRS is looking for proof that the purchase was for a business purpose and most statements only provide the date, amount, and the vendor, not what was purchased. A prime example of the IRS not allowing statements as evidence of business purposes can be uncovered in KEITH J. FESSEY, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent a quick Tax Court case that I recently came across (I like to read stuff like this).

In summary Mr. Fessey was not allowed a large portion of his business expenses due to his poor recordkeeping. So what is a small business owner to do?

Small business owners need to keep the receipts and attached them to each statement so that they are easily recognizable and locatable. There are times however that the receipt can fade and the ink is no longer readable. In these cases, a small business owner can use technology as a backup. By scanning the receipt (and the bank/credit card statements) into a file and either store the file within their accounting software, their hard drive or the clouds. There are a great deal of scanning vendors out there for small businesses to use so be sure to Google “receipt scanners” to locate one for your small business.

By retaining your receipts and having a backup, a small business owner can ensure that their bank and credit card statements are not too broad for the IRS.

For more information on business expenses be sure to speak to your tax professional or read IRS Publication 535.

The Tech Accountant

1099 Reporting...What's New???

2010-09-28T12:17:00.000-04:00

Recently while speaking with a construction client, the topic of 1099’s came up and my client asked me if he was going to have to give a 1099 to every vendor that he does business with (he has a lot of vendors) and when would this start. As I gave him the details (i.e. requires businesses to file information returns if they pay more than $600 to a single vendor, won’t have to start until 2012) I could tell he did not want to deal with the burden of filing all those 1099’s. Well it seems Congress doesn’t want to deal with the burden of repealing the new 1099 reporting rules either.

The new 1099 reporting requirements will raise about $19 billion as part of the Patient Protection and Affordable Care Act. The burdens that the requirements put on the small business owner are sure to increase their administrative duties/costs considerably. There have been a couple of ideas being kicked around in Congress lately. One was to increase the amount required to file reports from $600 to $5000 and another was to exempt businesses with 25 or fewer employees. Obviously neither idea was passed.

So where do we stand now? Congressional leaders say that they have heard the cry from the masses and will repeal the law sometime before the first of the year (hopefully). I guess this will have to be as separate legislation since it was not attached to recent small business legislation signed into law. We will be sure to keep you posted on any changes in the 1099 reporting requirements as they are made.

The Tech Accountant

IRS Introduces Widgets to Inform Taxpayers

2010-09-25T13:12:00.000-04:00

The IRS continues to embrace technology and is quickly moving into the realm of social media with their new widgets. The widgets can be placed on websites, and social media sites to inform taxpayers about new developments with the IRS and tax breaks. Topics for the widgets include EITC (Earned Income Tax Credit), IRS Retirement Plans; HIRE Act tax breaks, due diligence, and non-profits. Be sure to keep a lookout for the new widgets on your tax professional’s website and social media pages. Examples are below:

The Tech Accountant

Fishing with the EFTPS

2010-09-07T17:50:00.000-04:00

Back in July, I posted about a new e-mail scam that had been circulating to get taxpayers personal data. Well, the crooks seem to be at it again according to the IRS, and this time the “fish hook” is the EFTPS (Electronic Federal Tax Payment System). Now before everyone jumps to conclusions and says “See another reason to not use technology”, let me outline the details of the scam.

The scam claims to be from the IRS and states that it comes from the Anti-Fraud Commission (and many of the words are misspelled). The e-mail goes on to say that someone has used the taxpayer’s credit card information to pay a tax liability. The e-mail continues and says that taxpayer’s bank accounts have been used for fraud and money has been lost. To help recover the funds, taxpayers must click on a link within the e-mail to start the recovery process.

How to spot scam IRS e-mails

1. Misspelled words

2. E-mail does not end with IRS.gov

3. Link does not end with IRS.gov

4. IRS does not send e-mails to taxpayers

Hope the following tips will keep taxpayers safe when surfing the internet and checking their e-mails

The Tech Accountant

Don’t lose this late summer tax saving opportunity

2010-09-04T09:44:00.000-04:00

With the end of the summer near (or for most already here), brings about time for back to school for many students. Taxpayers that have students in college will be relieved to know that there is still time to capitalize on a tax credit opportunity for college expenses paid. The American Opportunity Tax Credit is still available until December 31st 2010 and will help students and their parents offset the cost of college. According to the IRS there are six (6) important factors taxpayers need to know to claim the credit:

1. This credit, which expands and renames the existing Hope Credit, can be claimed for qualified tuition and related expenses that you pay for higher education in 2009 and 2010. Qualified tuition and related expenses include tuition, related fees, books and other required course materials.

2. The credit is equal to 100 percent of the first $2,000 spent per student each year and 25 percent of the next $2,000. Therefore, the full $2,500 credit may be available to a taxpayer who pays $4,000 or more in qualifying expenses for an eligible student.

3. The full credit is generally available to eligible taxpayers who make less than $80,000 or $160,000 for married couples filing a joint return. The credit is gradually reduced, however, for taxpayers with incomes above these levels.

4. Forty percent of the credit is refundable, so even those who owe no tax can get up to $1,000 of the credit for each eligible student as cash back.

5. The credit can be claimed for qualified expenses paid for any of the first four years of post-secondary education.

6. You cannot claim the tuition and fees tax deduction in the same year that you claim the American Opportunity Tax Credit or the Lifetime Learning Credit. You must choose to either take the credit or the deduction and should consider which is more beneficial for you.

For additional details on how you can claim the credit, be sure to visit the IRS website or speak to your tax professional.

The Tech Accountant

Rain Clouds on Peachtree? Here’s you Umbrella

2010-08-28T11:31:00.001-04:00

Yesterday I received an e-mail from Sage Accountants Network that Sage Peachtree’s cloud based solutions will be discontinued on November 30th of this year. With the discontinuation of the Sage Peachtree cloud products (ePeachtree, Peachtree Web Accounting, Sage Peachtree WebsiteTrader and WebsiteCreator Services) is there a “next step” for clients that are using these products before the November 30th deadline? I have been getting calls/emails with questions and concerns about:

• Having access to their data after Nov. 30th

• Will Sage offer any other cloud products to move data over to

• How this affects the use of desktop Sage Peachtree products

Here is what we know so far regarding alternatives to Sage Peachtree Cloud products:

• ePeachtree – extract data by November 30th and Sage will offer customers a free desktop version of Sage Peachtree Complete Accounting and Sage Peachtree Simple Payroll

• Peachtree Web Accounting – Sage offers two alternate sources for web accounting. Sage Remote Access powered by GoToMyPC and Sage Peachtree Accounting 2011 using Terminal Services. To see which solution will work for your small business click here.

• Sage Peachtree WebsiteTrader and WebsiteCreator Services – Probably the toughest of the alternatives, clients will have to transfer their websites to another provider. The transfer can be completed via uploading the code to a new provider via FTP or exporting the website catalog item list to an XML or CSV file.

These are the solutions that are currently offered by Sage to somewhat minimize client’s pain with transferring their data to alternate sources. Clients must take the initiative and start planning for the transfer now to ensure that there is no interruption in their office procedures and administration and they can also test the transfers before the yearend reporting season. Be sure to seek assistance from a Sage Peachtree software consultant to correctly walk you through the transfer of your data.

The Tech Accountant

7 Steps to Paying Tax Liabilities

2010-08-25T23:43:00.000-04:00

As the summer comes to a close, so does the 6 month extension to file tax returns. Extensions are used to extend the time to file your tax return but do not extend the time to pay any tax monies owed. If you are a taxpayer that has a tax liability that has not been paid, here are the seven steps to paying your tax liabilities:

1. Find out how much you owe in unpaid taxes. Either contact the IRS or get copies of your tax returns to verify the amount you owe. Tax liabilities not paid timely will include your original tax due, plus penalties and interest.

2. If setting up a payment plan, the IRS charges a user fee: $52 for direct debit installment agreements, $105 for new installment agreements without direct debit, or $45 for restructuring or for reinstating a defaulted installment agreement. Low income taxpayers can request a lower fee of $43.

3. Fill out Form 9465, Installment Agreement Request. Or use the Online Payment Agreement Application on the IRS Web site.

4. Choose a day of the month you want to make your payments. Your payment must be made by the same day each and every month. You can choose any day you want between the 1st and 28th of the month.

5. Choose your monthly payment amount. You must pay the same amount each and every month.

6. The IRS will respond to your request in about 30 days.

7. Make payments each and every month. You can pay by check, money order, credit card, EFTPS or automatic withdrawals from your checking account.

Taxpayers can increase the amount of their monthly payment if they like, but should at least make the same minimum payment each month. Taxpayers can always seek the assistance of a competent tax professional if they need assistance creating a budget for their tax liability or they do not have the time to complete the steps.

The Tech Accountant

Bankruptcy and Your Taxes

2010-08-19T12:09:00.000-04:00

Bankruptcy filings are at an all time high according to statistics released by the Administrative Office of the U. S. Courts, the highest number since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Taxpayers that file bankruptcy need to know the rules regarding bankruptcy protection and how tax debts can come into play. Before a taxpayer attempts to include federal tax debts under their bankruptcy protection they must determine what tax liabilities might be dischargeable.

Find out which tax liabilities are dischargeable here:

Listen!

Taxpayers also must attempt to salvage their credit history by researching other options before including tax debts in bankruptcy filings. Tax administrative options can include a request for abatement of penalties, installment agreements, offers in compromise, and innocent spouse relief. If these options have been exhausted or are not viable for the taxpayer, including tax debts in bankruptcy may be the only solution.

Taxpayers can find assistance with bankruptcy and their tax situation by seeking the assistance of a good bankruptcy attorney and their accountant. Working in conjunction with the attorney and accountant, the taxpayer can determine which type of bankruptcy they need to file, what tax debts if any will qualify for discharge in bankruptcy, and how a bankruptcy filing will affect their tax situation in the future. Filing for bankruptcy is not the end of the world and for some taxpayers may be the only option to help them rebuild their lives.

The Tech Accountant

Form 1099 reporting - Need Your Input

2010-08-16T16:17:00.000-04:00

Small business owners are in for a treat starting in 2012 if they do not voice their opinions. Under Section 9006 of the Healthcare Act all businesses, tax exempt organizations, and federal, state and local government entities will be required to issue Forms 1099 to vendors who they make purchases from totaling over $600 during the calendar year.

What?!?!

So if you are a small business owner, the new law is going to increase your paperwork burden for the end of the year and may possibly increase your accounting fees. Currently there is a bipartisan effort to have this portion of the law repealed, but nothing has changed as of yet.

I would recommend that small business owners take the time to leave comments with the IRS regarding this new law. At the following link:

IRS Requests Pubic Input on Expanded Information Reporting Requirement

To hear my personal input, listen below.

The Tech Accountant

Listen!

Another Cool Cloud Offering

2010-08-13T10:02:00.000-04:00

Small business owners (SBO’s) that are out in the field or away from the office a lot will love the new offering from online fax vendor MyFax. For those SBO’s that use iPhone smartphones (and there are quite a few according to this webinar), MyFax has released an iPhone app that allows users to open view or preview mission critical faxes while away from the office.

To hear more about the app from MyFax provider Protus and get more details, be sure to check out the following link.

Additionally I was pretty shocked at the number of Blackberry, iPhone, and Android users in the webinar. Appears Android and iPhone users are on the rise while Blackberry continues to loose market share. So I decided to take a poll and see what kind of numbers are out in the small business world.

Feel free to take the poll to the left and let me know which smart phone you use.

The Tech Accountant

The End of RAL's

2010-08-09T21:58:00.000-04:00

In the past I have personally expressed my opinion of refund anticipation loans or RAL's for short. Well the IRS seems to be coming around to my thinking with their recent announcement. Starting with the upcoming filing season, the IRS will not provide tax preparers or financial institutions with the "debt indicator" that is used to determine the creditworthiness of taxpayers for RAL's. For more information on this change be sure to see the details at the IRS website.

Is this the end of RAL's? Let me know your thoughts.

The Tech Accountant

3 Ways to Take Small Business Accounting to the Clouds

2010-08-05T09:23:00.000-04:00

Small business owners (SBO’s) who use any kind of technology in their business will have undoubtedly heard someone mention “cloud computing” or “SaaS” and how this new technology will be the future of their business operations. Due to tighter budgets and a bit of misunderstanding of what the cloud has to offer, many small business owners continue with the “if it ain’t broke…” way of doing things. When speaking to small business owners about how they can streamline operations and save money, the topic of cloud computing seems to come up a great deal. I usually hear reasons for resisting the cloud to include security issues, control of data, and learning curve.

If a small business owner is not ready to fully jump out the airplane and into the clouds, they have three basic ways they can move to the clouds. These solutions also address some of the many issues that small business owners have about the cloud way of doing things.

Remote Access

Test your current accounting system using remote access. Remote access allows a SBO to still control their data by having it located on one of their computers and gives bookkeeping personnel the ability to login to the system from anywhere there is an internet connection. The bookkeeper can access accounting information at their leisure and can cut down on in office expenses. Remote access works best when there is a dedicated computer for accounting and only one person is accessing the data. Some remote access vendors include LogMeIn and Citrix.

Software Hosting

Hosting your accounting data is an even closer step towards the cloud. When an SBO “hosts” their accounting software bookkeeping personnel will login to the hosting company’s servers and complete their tasks over the internet. The data will reside on the hosting company’s computers and updates will be done by the company. Hosting also allows simultaneous users allowing more than one person access to accounting functions. SBO’s must use due care when setting up permissions to various functions of the accounting software to ensure that proper controls are in place. Some hosting vendors include CPAASP and Right Networks.

SaaS Solution

When an SBO uses a SaaS accounting product, all of their mission critical data is in the clouds. Bookkeeping personnel will login to the accounting system just like accessing an online banking module. Changes are updated in real-time and updates are usually done during non-peak hours. Simultaneous users can also access the system at once and the control functions are integrated into the module. Since the data is completely online, there is no data file to share or provide to outside parties. Some SaaS vendors include Netsuite and AccountantsWorld.

As a SBO, taking your accounting processes to the cloud can be done in many ways. Depending on the SBO’s resistance, one solution is sure to fit your business operations. Embracing the cloud can be tough for many SBO’s thus it is important to speak with cloud vendors, map out a plan, and test the systems before going full speed with a cloud accounting solution.

The Tech Accountant

Tax Tools for Tech Savvy Accountants

2010-07-26T17:16:00.000-04:00

Are you an accountant that ever needed access to tax code while at a client's office for research? Have you ever been in the middle of a tax audit and needed access to the tax code and regulations to support your position? Here's a quick video that will provide tech accountants and tech savvy taxpayers with a solution.

The Tech Accountant

Another Phishing Expedition

2010-07-23T20:50:00.000-04:00

Taxpayers need to be on the lookout for another slick e-mail scam. This one is centered on using the IRS (Internal Revenue Service) as a scare tactic to get a taxpayer’s personal information. The e-mail scam has a few variations but typically looks like this:

From: Internal Revenue Service

Date: July 19, 2010 7:48:08 AM EDT

To:

Subject: W-2 form update

We would like to inform you that as of the 16th of June

you are late in updating your W-2 form submition with the new

updated version. Please send us your completed W-2 update form

by 01/07/2010. The updated version of the W-2 form is attached

to this message.

Internal Revenue Service

If you notice the word “submission” is spelled wrong. Misspellings are usually a good sign that an e-mail is a scam. The dates are another dead give away. The most important thing to know is that the IRS does NOT send out e-mail notification in this manner. If you receive an e-mail similar to this one, be sure to send it to the IRS.

The Tech Accountant

Time to start your business engines

2010-07-15T19:52:00.001-04:00

Aspiring entrepreneurs that have been thinking about starting their own business are in luck if a current House Bill is passed. The Small Business Jobs Tax Relief Act of 2010 (H.R. 5486) would increase the Code Sec. 195 deduction for qualified start-up expenses. The current law allows small business taxpayers to deduct up to $5,000 in qualified start-up expenses with the deduction being reduced by the amount of total start-up costs exceeding $50,000. For tax years beginning in 2010 and 2011, the proposed House bill would increase the start-up expense deduction from $5,000 to $20,000 and the threshold will be increased from $50,000 to $75,000.

The bill is an attempt to spur the economy by allowing small businesses to recover more of their initial start-up investment on the front-end (instead of spreading the expense over many years) increasing their cash flow, and giving them the ability to invest in the economy and hire employees.

We will keep our eyes and ears focused on the developments coming out of Congress for more information on planning to start a small business, be sure to speak with an accountant, attorney, and do your own research at the Small Business Administration and other small business resources.

The Tech Accountant

Homebuyer Assistance

2010-07-11T20:42:00.002-04:00

Individuals that entered into contracts to purchase homes but missed the June 30th deadline got a little assistance before the 4th of July holiday. The President signed the Homebuyer Assistance and Improvement Act of 2010. For more information regarding the Act, listen to the audio clip below.

Listen!

The Tech Accountant

Five Trends Killing Horizontal Accounting Software

2010-07-07T00:03:00.002-04:00

Blogger Austin Merrit of Accounting Software Advice had a recent post that discussed the 5 trends that are killing horizontal accounting software . Merrit states the 5 trends are:
1. Decision makers require more than a standalone system

2. Businesses want systems that fit their unique needs

3. SaaS emergence

4. Mobile Access and Social Media Integration with the enterprise

5. Software vendors fueling the switch

I would agree with Merrit that horizontal accounting software is quickly becoming obsolete and feel that the continued development of vertical software “flavors” are the driving force behind the switch. Software designed for small business (those that gross between $1 million to $5 million in revenue annually) currently on the market can be considered “vertical” once additional modules or “add-ons” are integrated with the existing software. If you take the major accounting software vendors (Intuit, Sage, Microsoft) each has what they consider a “middle” market product that can integrate customer management, financial management, operations management and employee/HR management. These systems are also currently providing advanced reporting, deeper sales and inventory management, customizable dashboards, collaborative workflow management and online training that further push their existing software into the vertical market.

The path to vertical accounting solutions for existing software vendors can be traveled down to major routes. One is to allow 3rd party vendors to develop add-on vertical products to use in conjunction with an existing horizontal software package. An example would be Intuit’s Marketplace and Worplace App Center. The Marketplace allows small business owners with horizontal accounting software the ability to add industry specific solutions that can be implemented via the desktop or the web. The Workplace App Center provides small businesses with software programs that can be loaded on the computer or smart phone to help save time.

The second route is to create an industry specific accounting software product that integrates other small businesses back office functions. Sage currently offers vertical software designed for the construction, real estate, and non-profit sectors. These software titles give small businesses the ability to focus on industry specific business management issues, operate their business in real time, and have all their back office functions in one package.

Small businesses using existing accounting software and third part add-ons are also pushing the industry to provide more vertical solutions to their business specific issues. The question is however; are these small businesses utilizing their existing software to its full potential. I personally have rarely seen a small business outgrown one of the higher level horizontal accounting solutions (QuickBooks Enterprise, Sage Quantum, and Microsoft Dynamics GP) when they are using all of the software’s features/modules/add-ons. A major problem is that many small businesses don’t take the time to learn how to use all the features in their accounting software. The key is that small business decision makers must prioritize their needs when considering an accounting software package. By focusing on the software’s features, implementation, technology, the vendor’s reputation in their vertical market and the small business’ budget a small business can turn their horizontal accounting software into a vertical accounting powerhouse.

The Tech Accountant

DSL- "Do Suppliers Lie"

2010-07-03T18:04:00.000-04:00

Many entrepreneurs operate their businesses from home or use a home office to conduct part of their business activities. Having a secure and fast Internet connection in your home office is critical to the success of your business, but there may be times when you are not getting what you pay for. Are DSL suppliers lying to us about the speed of the service we receive? I found this out the hard way and the brief video outlines my problems.

The Tech Accountant

QuickBooks Helping IRS Audit Your Books?

2010-06-27T12:30:00.000-04:00

The IRS and Intuit are joining forces to make it easier to audit your small businesses. This information was provided from a recent liaison meeting. Does this allow auditors the ability to review QB data that is NOT within the audit scope allowing the audit to be expanded? Let me know your thoughts.

ISSUE:

I was informed yesterday by a Revenue Agent that a national directive has been issued to all Revenue Agents to obtain a copy of the QuickBooks file for any taxpayer being audited who uses QuickBooks. Apparently each audit group has one license from Intuit.

What I plan to do is to use the utility feature to condense prior years so that no detail can be accessed. My audit is for 2008, but obviously other periods can be opened if they want. Hopefully this is not their intention....I have asked for a copy of the directive.

My main concern is the cost of audit representation for our clients if the IRS goes crazy with this. I would love to get your thoughts on this.

RESPONSE:

There have been some substantial changes in the last six to twelve months regarding the issues raised. The IRS has purchased 1500 to 2000 licenses from Intuit and will have one agent trained and licensed per group to assist others in the examination of taxpayers who use QuickBooks. Agents are instructed to obtain a copy of the taxpayer's data base for the year under examination only when it is necessary. This examination tool will not be used in all cases - it is the judgment of the examiner.

IRS has found that many taxpayers do not save hard copies of their records or the copies they have are incomplete. The Service also found that taxpayers reuse an old version and over write the prior year. The examiner may request the data base to verify the integrity of the internal controls. A definite problem could arise where a client thinks they have turned off the internal audit feature to avoid tracking of adjusting entries but the program does not totally delete these items.

If the qualified representative (power of attorney) considers the Revenue Agent's request for the data base as totally unnecessary, he/she should speak to the agent's group manager. If the taxpayer/representative refuses to provide the data base and the revenue agent/manager determines it necessary, a Summons to obtain the information would be issued.

I spoke with our SB/SE national Technical Advisor for electronic records in our Exam Special Processes unit regarding the issue stated below. The Revenue Agent referenced in the question may have been referring to a memo issued by Monica Baker, the Examination Director, in late April announcing the implementation of the QuickBooks software availability to Revenue Agents. However, there is no written directive that has been issued instructing Revenue Agents to request the electronic data file in every instance where the taxpayer uses QuickBooks or other electronic records.

While Rev Proc 98-25 provides the authority for the IRS to request electronic records, in most cases (with exceptions), the Service will generally request the data file if some sort of electronic system was used. It is indeed up to the agent's and manager's judgment at the group level to make the request.

Although the data file generally retains information from the date of initial input to the date of backup which could obviously include multiple years in addition to the actual audit year, agents are instructed to look at the information only for the year under exam. If there is a decision to expand the examination to prior/subsequent years, then information for those years could be reviewed. As mentioned, using the cleanup utility condenses prior year information into a summary, rather than a detailed, format.

As the software finds its way into RA groups and more agents are trained in its use, we could definitely be seeing a trend in the way exams are conducted since so many small businesses use QuickBooks.

Gerry Kelly-Brenner
ID #94-06950
Senior Stakeholder Liaison Specialist
SBSE Communications, Liaison & Disclosure

Internal Revenue Service
1301 Clay Street, Suite 1090S
Oakland, CA 94612

The Tech Accountant

Just Checking

2010-06-23T10:15:00.001-04:00

I came across a pretty interesting article today regarding making payments with checks versus using a new technology called "Peer-to-Peer" payments. Feel free to check out the article here.

Then take our poll (on the left) and let me know your thoughts.

The Tech Accountant

Using your “INTUITion”

2010-06-21T19:17:00.001-04:00

Well one of the worst weeks for Intuit the makers of QuickBooks software is behind them (not without another “outage” on Saturday)and although I did get a chance to read all the comments from various media and social media outlets I will not provide an opinion regarding what happen. I will only provide questions/comments on how Intuit can possibly use their Intuition in the future to create better transparency and show that they actually care about their customers.

According to Brad Smith, CEO of Intuit in a statement from their website:

“I want to share with you what we know at this time about what happened. The disruption occurred during a routine maintenance procedure. An accidental but severe power failure during that procedure affected our primary and backup systems, taking a number of Intuit’s websites and services offline.”

Question Mr. Smith, would your intuition tell you not to setup redundant servers in the same location as your primary server? This is still the main question that is on everyone’s mind.

Some also feel that Intuit did not handle the outage in a manner befitting a large corporation. Specifically many individuals felt that they were left to find out information on their own since calls and e-mails to Intuit only provided canned statements that they were “working on” the problem. Personally from what I saw on social media, there was more “support” there than via taking the corporate route. Again intuition would tell one to handle P/R in a more efficient manner.

Well those are some of the issues that Intuit has to deal with at the present time. All in all their products work for most small businesses owners but as for recommending their cloud based offerings at the present time would require more research. Bottom line….cloud computing is here to stay. Small business owners interested in moving to the clouds should do their due diligence before selecting a cloud vendor.

Be sure to voice your opinion or check out the comments on Intuit’s website.

The Tech Accountant

Intuit and Sage not ready for SaaS?

2010-06-16T20:40:00.003-04:00

I was initially going to post a video today about ways to use Sage’s Peachtree small business accounting software for your small business, but their rival Intuit and their problems will put that post to the back burner for awhile. Now back to Intuit’s problems. Today I received an e-mail from Intuit that stated the following:

“I wanted to make you aware that there is currently a large outage in the San Diego Data Center and as a result many of our sites such as Intuit.com, Quickbooks.com, Intuitwebsites.com, Payroll.com, Payments, TurboTax, etc. are down. Intuit is actively working the problem. I'll send out an update when I hear about a resolution.”

The outage is surely affecting millions of small business owners (since QB has the largest share of the small biz market) who can’t have their businesses grind to a halt. The question is when will Intuit have the problem resolved and is this something we can expect from Intuit in the future?

Earlier in the month Sage (the makers of Peachtree) also had an outage of their online systems that affected their e-mail, order entry system and customer relationship management (CRM) software. The outage lasted 22hrs and according to the e-mail that I received they isolated the issue and are working to fix the problem. You can find more information here.

With a vast majority of small business vendors taking their products/services to the clouds (online) via software as a service (SaaS) will these “outages” make small businesses push away from using cloud based solutions?

Feel free to let us know if you are losing time and money due to the Intuit's or Sage's outages.

The Tech Accountant

S-Corp’s…a change may be a coming

2010-06-14T12:33:00.000-04:00

Those professional small business owners that have organized their businesses as S-Corporations may want to take a look at the American Jobs and Closing Tax Loopholes Act of 2010. Contained within that bill is a little provision that will have a big consequence for professional corporations that are organized as S-Corps. Professional corporations consist of doctors, lawyers, architects, engineers and the like and if the new law is passed, the profits for these small business professional corporations will be taxed (currently proposed to be 15%).

Why Professional S-Corps should care?

Currently S-Corps owner/shareholders can minimize their tax liability by taking part of their earnings from “reasonable compensation” and the rest from distributions from profits. Reasonable compensation is taxed thru payroll and distributions are not subject to payroll taxes. With the passage of this bill, distributions will now be taxed. There are tests that must be tried to see if your S-Corp will be deemed a disqualified S-Corp so be sure to speak with your tax advisor to see if your S-Corp is considered disqualified.

What’s a Professional S-Corp to do?

Now is the time to contact your senator and tell them your thoughts about the proposed changes for professional S-Corps. If the bill is finally passed, there may be a chance that some professional S-Corps will close down in the coming years.

The Tech Accountant

Save the Paper...IRS does not want it

2010-06-11T12:43:00.000-04:00

The IRS does not want your paper anymore. Attached is an audio file below that outlines how the IRS is moving toward a paperless processing environment. By embracing less paper the IRS can save millions. If it save them millions just think how much it can save you and your small business. Enjoy.

Listen!

The Tech Accountant

Mixing Business with Pleasure

2010-06-08T22:59:00.000-04:00

Most of the time accountants are advising their clients to be careful when mixing business expenses with personal expenses. Whether it is comingling business and personal funds or paying for personal expenses with business funds mixing of business and personal is a sure fire way to get a visit from your friendly IRS auditor.

When may you ask is it ok to mix business and personal? Typically it is ok to mix the two when the expense has a valid business purpose. Take for example summer travel. If your travel is necessary to the operation of your business entity and the destination is a typical vacation spot, you will technically be mixing business with pleasure (so that’s way most my accounting conferences are in Vegas).

Below is a brief audio on mixing travel business trips with pleasure. Enjoy.

The Tech Accountant

Listen!

The IRS is Open this Saturday

2010-06-03T16:14:00.001-04:00

For many taxpayers that are having problems with the IRS, speaking with them is one of the last things they want to do. However this may be the best course of action to resolve one’s tax problems. If you fall into one of the following categories, the IRS will be available to help you this weekend. If you:

• received a notice seeking additional information
• cannot pay a tax balance due
• need assistance with offers-in-compromise
• are struggling to complete a certain IRS form or schedule

Be sure to stop by the IRS website to locate which tax office in your state will be open this coming Saturday to assist you.

The Tech Accountant

Tired of Your Business Running You? Turn the Tables with Technology

2010-05-31T15:38:00.000-04:00

Increase productivity, save money and improve your social media reach/marketing in your small business with this week’s tech tools video. If you are tired of having your business run you when you should be running your business watch now and change how you run your business.

The Tech Accountant

Protecting Your Business

2010-05-27T09:42:00.001-04:00

According to a recent report by the Association of Certified Fraud Examiners (ACFE) occupational fraud continues to be on the rise in the US and countries abroad. The 2010 Report to the Nations on Occupational Fraud and Abuse provides a wealth of information on workplace crimes, how much they cost businesses and how they were detected. The charts and graphs outlined on this link revealed some surprising statistics:

• Financial statement fraud schemes made up only a small percentage of cases, they were the most costly
• Most fraud perpetrators were from the accounting department
• Anonymous tips were used the most to detect fraud as opposed to audits

So what is a company to do to prevent fraud? One of the most important things to do is to closely monitor your business and keep an eye on all aspects of operations. For small business owners it may be difficult to implement the more traditional control functions (such as separation of duties in the accounting department) but the use of technology can assist the small business owner with controlling fraud. Just recently JP Morgan Chase Bank has released a free fraud protection service for small business account holders that will:

• Control check payments and returns with Reverse Positive Pay
• Keep tabs on your account activity with Security Alerts
• Get Paperless Statements to keep your statements from being intercepted in the mail

Check with your bank to see if they offer similar protection services so that you can make you small business more secure.

The Tech Accountant

Who's Afraid of the Clouds

2010-05-19T23:49:00.003-04:00

Looking for a way to save money and increase productivity in your small business? Don't be afraid of cloud computing or software as a service (SaaS) solutions. Many small business owners (SBO's) are reluctant to move their systems over to the clouds citing privacy and security issues as the major reasons. If this is the case maybe the SBO's should take baby steps toward the cloud instead of jumping in head first. Here is a funny little video that may tap into the feelings of many SBO's about the changing world of technology and where they will fit in it. Enjoy.

The Tech Accountant

Microsoft Office Web Apps…the new player

2010-05-17T11:46:00.000-04:00

There has been a great deal of talk about the release of Microsoft’s Office 2010 product recently and I wanted to give everyone out there in blog land a brief overview of what the new software can do. One of the major additions to the software is the ability to view, share, and edit Office files (Word, Excel, PowerPoint, and OneNote) files from virtually anywhere via Office Web Apps. The changes in Office 2010 are an attempt by Microsoft to go after the Google Apps market as the battle between the two seems to be heating up.

If you are a small business owner and are in the market for new productivity software, be sure to also take a look at this PCMag.com article that puts Google Apps up against Microsoft Office Web Apps and make the decision for yourself. Would love to hear what others think on the subject.

The Tech Accountant

Spreadsheets or Cloud - Tax Planning Made Easy

2010-05-13T18:03:00.001-04:00

The Tech Accountant

Digital Image Risks

2010-05-09T10:49:00.002-04:00

If you have not heard or seen the reports on tv lately. There is a risk associated with using a digital fax, copier, scanner in your business. Basically the digital images are stored on the equipment's hard drive (yes copiers and the like have hard drives) and once the equipment is sold can be access by those wanting to steal confidential information. If you have not seen how this can be done or who is at risk be sure to watch the video below

The Tech Accountant

The Timothy Geithner Approach

2010-05-07T20:14:00.004-04:00

Many tax preparation software out there comes with an accuracy related guarantee that goes something like if there are errors found on your return, the software provider will take full responsibility for resolving the problem. I guess to some that may give them a little reassurance that they can prepare their own taxes without the assistance of a competent professional. Well the IRS also has a saying and it goes a little something like this:

"Taxpayers have a definite responsibility to file an accurate tax return...."

So it is up to the taxpayer (not the software) to file an accurate return. If you think that is not the case here is what can happen if you attempt to blame your errors on the software.

The Tech Accountant

Source: Kiplinger

Business Development Workshops

2010-04-29T10:27:00.000-04:00

Last evening I had the pleasure to sit-in (and contribute) to a business development workshop aimed at helping those interested in starting their own businesses get the tools they need to start off on the right track. The workshops are being put on by John C Riley of The E-mail Specialist/Atlanta Professional Business Network and Marc Parham of Partec Consulting Group, Inc. The 2-hour workshop last night was a first in a three part series that will take place every Wednesday at the East Point Library for the next few weeks. Last night’s workshop dealt with the legal aspects of starting a business, business plan development, and marketing your business. Next week we will dive deeper into the business planning aspect of start-up and help aspiring entrepreneurs write their business plans. Following are a few pictures from last night’s workshop and we would like to assist more individuals that want to start their own businesses. The next workshops are as follows:

Business Development Workshop Part II – Wednesday May 5th 2010 6-8pm

Business Development Workshop Part III – Wednesday May 12th 2010 6-8pm

For more information regarding these free workshops feel free to contact John, Marc, Michael, or myself via the website links listed in this post.

The Tech Accountant

Marc and John

John discusses marketing

Q&A session

Michael Hickman talks about library resources

You Have Choices in the Cafeteria

2010-04-28T13:45:00.000-04:00

Thanks to the IRS and Notice 2010-38, small business owners (SBO’s) with cafeteria plans now have guidance on how to provide the recently passed tax free health coverage for employees with children. The employees’ children must be under the age of 27 and are eligible for the tax benefits from March 30th 2010. The term “child” can mean a son, daughter, stepchild, adopted child or eligible foster child. Those SBO’s that have cafeteria plans may allow their employees to immediately take pre-tax salary reductions to provide coverage to their employee’s children.

According to IRS Commissioner Doug Shulman the changes will “make it as easy as possible for employers to quickly implement this change and extend health coverage on a tax-favored basis to older children of their employees.”

The Tech Accountant

New HIRE Form

2010-04-06T11:41:00.000-04:00

For those small business owners that will be adding employees in the future, there is a new proposed form that will need to be filled out to ensure that your new employees qualify for the HIRE Act's tax break.

To view the draft of the form click here.

The Tech Accountant

Tax Credit Window Pains

2010-03-31T18:27:00.003-04:00

Use this video to gain insight into the energy efficient tax credit and how to use it to minimize your window pains.