Using payroll service for QuickBooks 2009? It’s time to upgrade!

Friday, June 8th, 2012

Payroll service for QuickBooks 2009 will be discontinued on June 30, 2012, and all payroll subscriptions for customers with QuickBooks 2009 will be inactivated.

On July 1, 2012, QuickBooks 2009 will no longer automatically calculate correct payroll taxes or provide payroll tax forms. Live technical support and add-on business services such as payroll, credit card processing, QuickBooks Email, and online banking will also be discontinued.

However, if you don’t use live technical support or any of the add-on services, and are happy with your current version of QuickBooks, you can continue to use it.

Products for which services will be discontinued are:

• QuickBooks Pro, Premier and Simple Start 2009
• QuickBooks for Mac 2009
• QuickBooks Enterprise Solutions 9
• QuickBooks Premier Accountant Edition 2009
• Credit Card Processing Kit 2009
• Invoice Manager 2009

We encourage you to upgrade your QuickBooks software as soon as possible to minimize disruption to your business. If you have any concerns, please contact your Kaufman, Rossin professional or one of our QuickBooks ProAdvisors.

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Lisa K. Grossman is an associate principal at Kaufman, Rossin & Co., and a leader in the Firm’s QuickBooks consulting practice. Lisa is a Certified Public Accountant in the state of Florida and a QuickBooks ProAdvisor. Kaufman, Rossin & Co. is one of the top CPA firms in the country. She can be reached a lgrossman@kaufmanrossin.com.

Top 10 reasons you should update your estate plan before the end of 2012!

Wednesday, June 6th, 2012

1. Tax exemption is higher now than ever, but not for long.
   The current estate, gift and generation skipping tax exemption is currently $5,120,000 ($10,240,000) per couple. This is higher than it has ever been and is scheduled to drop to only $1,000,000 (only $2,000,000 per couple) in 2013 unless Congress and the President can reach an agreement. This may be a use it or lose it!
2. Your plan may disinherit your spouse!
   Do your current estate planning documents include a formula for determining the amounts passing to heirs or trusts for heirs based upon the exemption? With the currently high exemptions, your plan may disinherit your spouse!
3. Is your business safe from creditors or predators?
   Do you have a succession plan for your business? Does your plan include the use of asset protection trusts funded up to the amount of your exemption to safeguard your business from your heirs’ creditors, spouses and predators?
4. Interest rates are historically low!
   The interest rate that the IRS requires to be used for interfamily loans, sales to family trusts, and other planning techniques is at historical lows. The current required interest rate for a 9 year loan made in June 2012 is only 1.07%.
5. Discounting the value of assets is still available.
   Discounted values for lack of control and lack of marketability for interests in Corporations, Partnerships and LLCs are still available for interfamily transactions. There has been much talk about limiting such discounts, but currently, discounting is still available for planning purposes.  When discounting the value of assets by 33%, the effective interest rate on a note as mentioned in item four above drops to only 0.7%!
6. If you’re feeling generous – there’s no estate or gift tax!
   If you are currently giving or planning to give significant sums of money or assets to your favorite charity, the current low interest rates allow you to help your charity and transfer assets to your heirs with no estate or gift tax. Ask about the use of a charitable lead trust.
7. Consider a Roth IRA conversion for estate tax savings.
   If you have a large IRA or retirement plan as part of your taxable estate, which is in excess of the exemption, you should consider a Roth IRA conversion. This will reduce your taxable estate and provide years of tax free cash flow to heirs.
8. Avoid aggressive taxation on your vacation home.
   Do you have a vacation home outside Florida that will be subject to state estate tax and the costs of an ancillary probate administration in that state? Simple steps can avoid the often very aggressive taxation of these homes.
9. Is your life insurance subject to estate taxes?
   An irrevocable life insurance trust can avoid the estate tax and provide asset protection for your heirs.
10. Do you have a family member who has special health needs?
    You may want to consider unique provisions in your estate planning documents.

Don’t wait until the end of the year to get started.  Do it now!

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John R. Anzivino, CPA is in charge of Kaufman, Rossin’s estate, trust and exempt organization practice. Kaufman, Rossin & Co. is one of the top CPA firms in the state and offers a wide variety of services for high-net worth individuals. John can be reached at janzivino@kaufmanrossin.com

Another IRS email scam

Tuesday, June 5th, 2012

The IRS will never initiate contact via email. If you receive an email claiming to be from the IRS, it is a SCAM!

Below is a screenshot of one of the scam emails being sent.

If you have any concerns or questions, feel free to contact your Kaufman, Rossin professional.

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Scott F. Berger is a tax and accounting services principal at Kaufman, Rossin’s Boca Raton office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  He can be reached at sberger@kaufmanrossin.com.

Got science?

Monday, April 9th, 2012

If you have a scientist or engineer on staff or contract, you could be missing out on government incentives designed to support advances in technology.  Both the Federal and state tax codes have credits for research and development expenses.

I spoke with Businessweek about this topic recently.

The Federal credits have become more attractive for entrepreneurs in recent years because they’ve been simplified, can be transferred in an acquisition, and can be taken retroactively.  And they are particularly good for startups, since R&D costs incurred in years when a company has no income can be carried forward to offset taxes on future profits.

Florida’s credit is new, and applies to expenses in tax years beginning January 1, 2012.   There’s $9 million available for this year, on a first come basis.  If you spend more this year than you did (on average) for the past four years, it’s worth investigating.

If you haven’t had an expert evaluate whether you should claim this credit, contact me at shaggard@kaufmanrossin.com for an assessment!

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Sean Haggard, CPA, is a tax manager in Kaufman, Rossin’s Boca Raton office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country. Sean can be reached at shaggard@kaufmanrossin.com.  Connect to Sean on LinkedIn.

How to Survive Tax Season

Wednesday, February 29th, 2012

Tax season is in full swing, and for accountants, that means long work days, extra workloads, and heightened stress between January and April 17.  So how do CPAs cope with busy season? We asked our professionals at Kaufman, Rossin to shed some light on how they relax, revive, de-stress, and maintain productivity…

And we got a lot of fun, interesting, and even some quirky responses!

So tell us, how do you survive tax season? Leave a comment below, or tell us on Facebook, YouTube, or Twitter with the #SurvivingTaxSeason hash tag!

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Aubrey Swanson is the social media coordinator at Kaufman, Rossin’s Miami office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  She can be reached at aswanson@kaufmanrossin.com.  Connect with Aubrey on Linkedin.  Follow Aubrey on Twitter.

What’s New in QuickBooks 2012?

Wednesday, January 25th, 2012

The program enhancements for QuickBooks 2012 can be divided into two areas:

1. Enhancements for the user
2. Enhancements for their accountants

Enhancements for the user are designed to make day-to-day accounting easier and provide better information about your business. We have listed many of the User Enhancements that apply to most versions of QuickBooks below.

• Refresh Excel Data – provides user better integration with Microsoft Excel
• Contributed Reports – allows user to share report templates with other QuickBooks users
• Lead Center – allows user to manage sales prospects within QuickBooks and convert them easily to customers
• Calendar View – allows user to view a calendar layout of a company’s important transactions (invoices, billing, reminders)
• Global To Do’s – allows user more access to and flexibility with their To-Do lists
• Document Center – users can scan and store attached documents
• Memorized Transactions – improved to enable user to select transactions before entry
• Batch Timesheets – allows user to enter the same timesheet information for multiple employees
• Batch Invoicing for Time and Expenses – allows users to invoice several customers for time and expenses at one time
• One Click Transactions – allows users to create a payment or credit memo from the contents of an invoice in one step; also can now pay a bill in one step
• Improved Shipping Manager – allows user to integrate with USPS
• Company File Search – allows users expanded search features
• Integrated Help – provides users enhanced help features
• Improved Condense Data – improves the clean up data/condense data feature
• Easy Setup – provides users with an express start up for new QuickBooks files

If you have any questions or need assistance with QuickBooks, please contact Lisa K. Grossman or any of our QuickBooks ProAdvisors.

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Lisa K. Grossman is an associate principal at Kaufman, Rossin & Co., and a leader in the Firm’s QuickBooks consulting practice. Lisa is a Certified Public Accountant in the state of Florida and a QuickBooks ProAdvisor. Kaufman, Rossin & Co. is one of the top CPA firms in the country. She can be reached a lgrossman@kaufmanrossin.com.

Identity Theft and Tax Fraud – Are You a Victim?

Tuesday, December 6th, 2011

Identity theft and tax fraud are serious problems that continue to increase in number and complexity as each tax season rolls by.  Don’t think you will ever be affected? Accounting Today recently reported that the IRS identified 775,723 tax returns with $4.6 billion claimed in fraudulent refunds, as of April 30, 2011. The good news – the IRS prevented the issuance of $4.4 billion (96%) of those claims which is an increase of 171% over the previous year. Unfortunately, 4% of those victims were not so lucky.

Becoming a victim of identity theft and tax fraud can cause great hardship for you and your family. The Miami Herald recently wrote about a Miami Shores family who are struggling with the IRS to obtain their $8,000 tax refund after falling victim. Indeed, my colleagues and I have witnessed many falsified returns this past tax season, and although the IRS has implemented the IRS Identity Theft Program, there is no quick and easy solution to overcome this unfortunate circumstance.

While there is no guarantee that a thief won’t steal your identity, there are certain precautions you can take to prevent becoming victimized:

• Safeguard your personal information
• Monitor your credit report
• File early
• Respond immediately to IRS notices

If you have questions about preventing identity theft and tax fraud, or if you have already been targeted and need assistance, please contact me at sberger@kaufmanrossin.com or 561.620.1722.

Scott F. Berger is a tax principal at Kaufman, Rossin’s Boca Raton office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  He can be reached at sberger@kaufmanrossin.com.

New FDOR Ruling May Mean Sales Tax Relief for Real Estate Held in Separate Entities

Tuesday, November 8th, 2011

The Florida Department of Revenue treats inter-company and other related party use of real estate as a taxable rental for sales tax purposes. This is true even when there is no written lease involved.  This has long been a significant downside of holding real estate in a separate entity which for liability purposes is desirable. A recent ruling issued by the Department may provide relief to such situations. The ruling addressed a lease which contained the following terms:

• No reversionary interest to the owner/lessor;
• Transfer of title by deed to the lessee at the end of the lease term;
• The monthly rent was equal to the monthly payments of principal and interest;
• The lessee had the option of early payoff to accelerate transfer by deed; and
• The lessee bore the risk and benefits of changes in the property value.

The Department ruled that the lease was in substance an installment sale and not a taxable lease for sales tax purposes. Persons with intercompany or other related party use of real property can now consider the option of putting such a lease in place. This will permit the limited liability benefits of owning real estate in a separate entity without creating the downside of a taxable lease for sales tax purposes.

For additional details and stipulations, please click here or contact me at 561.620.1718 or dwagner@kaufmanrossin.com.

Dan Wagner is an associate tax principal in Kaufman, Rossin’s SALT practice.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  He can be reached at dwagner@kaufmanrossin.com.

Linen Suppliers May Be Eligible for Sales Tax Refund

Thursday, October 13th, 2011

Companies which are in the linen services business, such as those supplying linens to hospitals, nursing homes and resort hotels, may be entitled to a refund of sales tax paid on utilities used in their laundering facilities, according to a recent ruling by the Florida Department of Revenue.

Finding and recovering sales tax refunds can be challenging. We can assist in determining eligibility for this opportunity and help recover the refundable sales tax. If you would like more information or assistance, please contact me at 561.620.1718 or dwagner@kaufmanrossin.com.

Dan Wagner is an associate tax principal in Kaufman, Rossin’s SALT practice.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  He can be reached at dwagner@kaufmanrossin.com.

Time to turn over a new leaf?

Tuesday, October 11th, 2011

For more than four decades, companies have been battling the IRS about the status of workers – are they employees or independent contractors?  In IRS audits where workers’ status is reclassified, the penalties are steep: you pay from 25% to 100% of the full employment tax liability.   

Many taxpayers have walked a fine line on this issue.  Now there’s a way to come clean — and pay less.  And because more than one IRS initiative is focusing on employee classification, it’s something to consider.

What are the definitions?

The courts have defined employees as workers over which the business may legally control what must be done AND how it must be done.   Independent contractors are workers over which the business controls only what must be done, not how it is accomplished.  The degree of control may include behavioral control, financial control, and the relationship between the parties. 

Who is eligible?

The Voluntary Classification Settlement Program (VCSP) is available only to businesses who are not currently under a related audit by the IRS, the Department of Labor, or the state.  You must have filed all required 1099s for your workers for the past three years. 

How does it work?

At least 90 days before you plan to reclassify your employees, you must complete and submit Form 8952.  The IRS will review it and, if you are eligible, they will contact you to enter into the VCSP Closing Agreement.  You sign the agreement and send it back with the payment.   The workers affected (either a specific class of workers, or all of your staff) must then be treated as employees going forward.

What will it cost?

The participating business must pay 10% of employment taxes calculated using the reduced rates of IRC Sec. 3509 for the compensation paid to the workers being reclassified during the most recently closed tax year. Under Section 3509 , the effective tax rate for compensation up to the Social Security wage base is 10.68% in 2010 (10.28% in 2011) and 3.24% for compensation above the Social Security wage base.

For example, imagine you paid $100,000 to a class of workers in 2010, and filed your VCSP application on 10/1/11. None of them earned more than $106,800, the Social Security wage base for 2010.    Using the amount paid to the workers in 2010 (the most recent tax year), you would pay a VCSP assessment of $1,068:  [($100,000 x 10.68%) x 10%].  You will begin treating these workers as employees the first of next year.

Should I do it?

The decision is yours, and you should consult your tax professional.  Just be aware: the IRS is focusing on this issue, and if it’s found during an audit you could pay much more!

Scott F. Berger is a tax principal at Kaufman, Rossin’s Boca Raton office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  He can be reached at sberger@kaufmanrossin.com.