Because the World is Not Flat » Jefferson Harmon & Associates blog: Tax Topics, Accounting, QuickBooks Education, and more!

Tags: April 17th, Colleyville accountants, IRS Fresh Start Initiative, IRS payment plans; IRS Fresh Start; April 17th, tax payment plan

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It’s Coming… April 17th

Wednesday, March 28, 2012 Posted in JHA

In just a few short weeks, the end of what’s known as “Tax Season” will be upon us. It’s an exciting time, and there are always several things taking place at once.

While everyone knows 1040s are due in mid-April (Tuesday, 4/17 this year), it is also the deadline to submit tax returns or extensions for most state returns, trusts, estates, and partnerships, along with other special filings (such as county property renditions). No wonder it’s a whirlwind!

If you’d like JHA to extend your 1040, please turn in your basic 2011 income and tax payment information now so we can estimate whether or not you might owe tax on April 17th, 2012. Keep in mind that filing an extension requesting additional time to file your tax return does not extend the amount of time you have to pay any taxes owed. Any tax balance must be paid in full by April 17th, 2012, or penalties and interest will begin accruing until the balance is paid in full.

If you formed a new entity, such as a trust or partnership, be sure to provide JHA with that formation paperwork now to ensure the approprate tax return or extension is filed timely. Emailed or faxed copies of those documents work perfectly!

Has your packet of information been riding around in your car for weeks, but you keep forgetting to bring it by? Make a special trip to bring it to the office ASAP, and we’ll gladly take it off your hands. There’s a bottle of water, a cold soda, or a fresh cup of coffee with your name on it, just waiting for you to come by. As always, we will make every effort to complete as many returns as possible, but anything received after April 1st may need to be extended.

For your convenience, our office is open extended hours to make it easier for you to drop off any final pieces of information needed. Monday – Friday, we’re open 8:00am – 6:00pm. On Saturdays, we’re open 8:00am – 12:00pm. Outside those hours, our night drop (located to the right of the front door) is always available for your convenience; simply drop off your envelope into that mail slot, and we’ll get your packet on the next business day.

Tick, tick, tick! The deadline is quickly approaching, so please contact our office today at (817)355-9292 to coordinate how we can best assist you before April1 7th is upon us!

By Megan Timmons

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Join the JHA Team

Thursday, March 22, 2012 Posted in JHA

Are you or someone you know interested in delving into the world of public accounting?
If so, take a look at the required qualifications and benefits of joining the Jefferson Harmon & Associates, P.C. team!
2012 JHA Job Posting

Cover letters & resumes should be submitted to info@partnersforbusiness.com.
Remember – we’re in the middle of tax season right now, so email truly is the best way to contact us.

By Megan Timmons

Tags: Colleyville accountants, Jefferson Harmon & Associates, job opening

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Do You Qualify for the Home Office Tax Deduction?

Tuesday, March 20, 2012 Posted in Individual Tax

If part of your home is used for business, you must meet the following IRS requirements to deduct the expenses related to the business use of your home:

Part of the home must be used exclusively and regularly:
- as your principal place of business, or
- as a place to meet with patients, clients, or customers during the normal course of business, or
- in connection with your trade or business where the business portion of your home is actually a separate structure not attached to your home.
Some exceptions to the “exclusive” qualification do exist for certain storage, rental, or daycare-facility uses; the property must still be used “regularly” for the business purpose, however.
The amount of the deduction available to claim on your return will generally depend on the percentage of your home used solely for this business purpose, as well as the gross income generated by the business.
Qualified daycare providers, and taxpayers storing business inventory or product samples, are subject to special rules, so be sure to consult with your JHA tax preparers about those special considerations.
If the “exclusive and regular” use of your home is for the convenience of your employee, additional rules apply before you can claim this deduction on your return. Yet another circumstance in which you should consult with your JHA tax professional!

We’re here to assist you in maximizing your tax benefits while remaining compliant with the complex IRS tax rules. Contact our office today at (817)355-9292 today to schedule a tax interview before that April 17^th deadline gets any closer!

By Megan Timmons

Source: IRS.gov

Tags: 2012, April 17th, Colleyville accountants, home office deduction, self-employed

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Tick, Tick, Tick…

Thursday, March 15, 2012 Posted in Individual Tax

Does March 15th ring a bell in the back of your head, besides being the “Ides of March”? That’s right – it’s one month until the April1 5th tax filing deadline. While it is true we have until April 17th to file this year’s returns, the fact remains that time is ticking away to get those 2011 Form 1040s prepared and filed with the IRS.

Do you have your tax interview already scheduled with JHA? Or, have you dropped off your tax packet at the JHA office? Now is the best time to get that done; don’t wait another two weeks!

What do we need to get started? To start with, we’ll need all the usual year-end tax documents pertaining to earned and investment income (W-2s, 1099s, K-1s), information re: your deductions (including charitable contributions), and input about any significant changes in your family in 2011.

Please contact us by calling (817)355-9292, and we’ll gladly schedule a tax appointment for teleconference for you to get the process underway.

By Megan Timmons

Tags: 2012, April 17th, Form 1040, Fort Worth accoun, tax appointment

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Federal Corporate Tax Deadline

Tuesday, March 13, 2012 Posted in Business Owners

This is a quick reminder that both C corporations and S corporations must file returns or extensions for 2011 no later than Thursday, March 15, 2012.

If JHA has prepared your S corp return (Form 1120S) in the past, and has not yet received your complete year-end tax information, we will file your extension for you, hassle free. There is nothing you need to provide or sign just yet.

However, C corporations are responsible for their own tax liability and must pay any taxes due with an extension this Thursday to avoid penalties and interest. The information we need to prepare your C corp’s extension estimate includes:

Complete and reconciled QuickBooks file (Accountant’s Copy preferred) with a closing date of 12/31/11
12/31/11 bank statements (checking and savings)
12/31/11 credit card statements
12/31/11 line of credit statements
12/31/11 loan statements, including principal balances as of 12/31/11
List of all assets purchased or disposed of in 2011
Copies of quarterly payroll tax filings for 2011 (if not prepared by JHA)
Copies of W2s, W3 for 2011 (if not prepared by JHA)

If you formed a new corporation in 2011, make sure you contact JHA and provide us with your formation documents, so we can help keep your new company in compliance with the IRS by filing the appropriate returns and extensions by the required deadlines.

We are happy to answer any questions you have about the information needed to prepare your returns. Send us your questions via email to info@partnersforbusiness.com, and we’ll get back with you right away!

By Megan Timmons

Tags: corporate tax deadline, Form 1120, Form 1120S, Fort Worth CPAs

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Tax Credit for Adoption

Tuesday, March 6, 2012 Posted in Individual Tax

The decision to expand your family through adoption is an incredible commitment, but is often accompanied by many expenses like adoption and attorney fees, travel expenses, and court costs. If your family paid eligible adoption expenses in 2011, there are tax credits up to $13,360 for which you may qualify.

To qualify for the adoption credit, the adopted child must be under 18 years of age, or physically or mentally incapable of caring for himself or herself. There are also some limitations based on the modified AGI of the household:

$185,210 or less: full credit
$185,211 – $225,209: reduced credit
$225,210 or more: no credit

In 2010, the Affordable Care Act increased the amount of the tax credit, while also making it refundable. The benefit of refundable tax credits is that you can receive the full benefit, even after your tax liability has been reduced to zero.

To claim the credit on your 2011 return, Form 8839 (Qualified Adoption Expenses) must be accompanied by your supporting adoption documentation, attached to your paper tax return, and mailed to the IRS for processing. E-filing is not an option, unfortunately.

Any time there are significant changes in your household, including the addition of a child, please contact JHA to discuss the impact on your tax situation; we are more than happy to help “crunch the numbers” to ensure your tax plan is meeting the changing needs of your family. Contact us at (817)355-9292.

By Megan Timmons

Source: IRS.gov

Tags: adoption credit, affordable care act, Form 8839, Hurst tax preparers

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Mortgage Debt Forgiveness

Thursday, March 1, 2012 Posted in Individual Tax

If your family has endured financial troubles the past few years, it can feel like an additional blow to discover that canceled debt is normally taxable. However, there are exceptions to that rule which pertain specifically to mortgage debt forgiveness. If your mortgage debt was partially or entirely forgiven between tax years 2007 – 2012, you’ll be pleased to know that it’ll be excluded from taxes.

Here are some facts to keep in mind about Mortgage Debt Forgiveness:

Normally, any debt forgiveness results in taxable income on your return, but the Mortgage Forgiveness Debt Relief Act of 2007 allows qualified taxpayers the ability to exclude up to $2 million of forgiven debt on a principal residence (or $1 million for a married, filing separate return).

Mortgage debt reduced or forgiven through restructuring or a foreclosure also qualifies for the exclusion. Keep in mind that the “debt must have been used to buy, build, or substantially improve your principal residence and be secured by that residence.”

If funds from a refinanced mortgage were used to substantially improve your principal residence, this tax exclusion also applies. However, refinanced debt used for other reasons – to pay off a credit card, for example – do not qualify.

Canceled or forgiven debt on second homes, rental property, business property, credit cards, or auto loans does not qualify for this tax relief provision, but other options may still be available to you. It’s a good idea to consult with your JHA tax professional if you find yourself in these situations.

Be sure to bring your Form 1099-C Cancellation of Debt tax document with you to your tax interview appointment, or include it in your packet dropped off at JHA. Contact your lender immediately if either the forgiven debt or the property fair market value amounts are not correct.

If you have questions about this provision, or amending prior year returns to include your canceled debt, contact JHA by calling (817)355-9292.

By Megan Timmons

Source: IRS.gov

Tags: Form 1099-C, fort worth accountants, mortgage debt forgiveness, Mortgage Forgiveness Debt Relief Act of 2007, mortgage refinance

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IRS2Go 2.0: The New & Free IRS Smartphone App

Wednesday, February 15, 2012 Posted in Individual Tax, Tax Topics

The IRS has recently updated its IRS2Go smartphone application to the new version called IRS2Go 2.0. People who carry smartphones with Apple or Android platform should take advantage of this new technology. The IRS2Go 2.0 still has the old tools plus some of the new ones. The first version was released in 2011 and had more than 350,000 downloads. The purpose of IRS2Go application is to keep taxpayers informed with both current tax information and their individual tax return information.

Listed are the old tools previously offered and will continue to be available to users:

- Get Your Refund Status- This tool allows you to access the status of your refund approximately three days after the receipt of an e-file return and four weeks after mailing a paper tax return.

- Get Tax Updates- Simply provide your e-mail address using the IRS2GO application and you will automatically receive tax tips as they are updated to the IRS web page.

- Follow the IRS- You can follow the IRS Twitter for IRS news and changes to the tax laws.

Listed are the new tools that have been added to the IRS2Go app:

- Watch Us- You may now watch IRS videos from YouTube. The videos are short and informative on helpful tax topics.

- Get the Latest News- New IRS releases come to you through the IRS2GO application as they are updated and released to the public.

- Get My Tax Record- You may now access and order your tax return transcript using this application. The IRS will then mail your transcript via mail using the address it has on your record.

By Kaylee Le

Tags: 1040

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