Summer is Over - Time for Reports Cards and Football

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

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

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.



The Tech Accountant

Washington Changes Challenge the IRS

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

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

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

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:



The Tech Accountant

Let Technology Wear Some of Your Hats

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

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:



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

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.



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

The Tech Accountant

Fill Your College Coffers

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

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

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

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

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

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

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

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

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

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.



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