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.

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.

2011 Real Estate Tax Appeal Deadlines

Thursday, August 25th, 2011

Miami-Dade, Palm Beach and Broward counties have all recently issued their annual Truth in Millage (“TRIM”) notices.  Property owners wishing to appeal the assessed valuations and tax liabilities reflected on their 2011 TRIM notices have a very limited time to do so.

If you feel that your assessment may be too high, the deadlines to appeal your property taxes are approaching. After the following deadlines, appeals for 2011 will not be permitted: 

• September 16, 2011 – Palm Beach
• September 19, 2011 – Broward
• September 19, 2011 – Miami-Dade

The steps to appeal your property assessment can be challenging. If you need assistance with this process, please contact a Kaufman, Rossin professional or contact the following resources directly who specialize in these tax appeals:

Mitchell Feldman – FBS Property Tax Abatement, LLC
305.350.7360 or mfeldman@fbstaxabatement.com

Michelle Cohen – LeaseGuard, Inc.
561.998.2800 Ext. 1 or info@leaseguardusa.com

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

Taxpayers aren’t always receiving timely and quality responses from IRS

Thursday, August 11th, 2011

Most taxpayers aren’t getting timely responses to written inquiries to the IRS, and not all responses are completely accurate says a recent report by the Treasury Inspector General for Tax Administration (TIGTA). 

The IRS received about 20 million letters, forms and other written correspondence from taxpayers in 2010. The TIGTA found that most final responses from the IRS were accurate; however, the interim responses were not clear as to what taxpayers should do.

The report examined random correspondence cases and found that only 19 percent of the cases received timely and accurate responses. The report also showed that the IRS is not following its own policy guidelines and has not implemented any measures or processes to monitor and evaluate the correspondence to make sure taxpayers are receiving timely responses. The IRS’s goal is to respond within 30 days. The IRS disagreed with the outcome measures the TIGTA stated in the report.

 Click here to read the full report by the TIGTA. 

What does this mean for you? Taxpayers should exercise patience when dealing with the IRS.

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Scott F. Berger, CPA 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.

Ready to shop? Florida sales tax holiday is August 12th – 14th!

Wednesday, August 3rd, 2011

If you’re on a budget, or you simply love a great deal then mark you calendar -  Florida’s sales tax holiday is Friday, August 12th through Sunday, August 14th.

So what can you buy that is exempt from sales tax? Quite a bit actually!

• Clothing, wallets and certain bags (handbags, backpacks, fanny packs and diaper bags) having a sales price of $75 or less each.
• Footwear having a sales price of $75 or less.
• School supplies having a sales price of $15 or less per item.

I plan on taking advantage of this tax break – I’m making my list now of what I need (work shirts, gym shoes, and maybe even a few new ties)! Feel free to share what you’re excited to purchase and your favorite store.

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Wolfgang H. Pinther is the marketing supervisor at Kaufman, Rossin’s Miami office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country. Wolf can be reached at wpinther@kaufmanrossin.com.  Connect to Wolf on LinkedIn and follow him on Twitter.

Vacation Home in NY? Watch out!

Monday, February 28th, 2011

New York may be going after taxpayers with New York vacation homes who spend more than 183 days in the state, regardless of whether the time is spent at a vacation home or elsewhere in the state. 

Under a statutory resident provision, a taxpayer meeting the following tests is deemed to be a de facto New York resident:

• The taxpayer spends more than 183 days in New York, and
• Maintains a permanent place of abode in New York.

In Barker, NY Div. of Tax Appeals, DTA No. 822324 (Jan. 13, 2011), the taxpayers were residents of Connecticut.  The husband commuted to and from New York City on a daily basis, and as a result spent more than 183 days in New York.  The taxpayers owned a vacation home in the Hamptons, but stayed there for only a few days per year.  The taxpayers argued that their vacation home was not a permanent place of abode since they spent very little time there.  However, the New York Tax Appeals Tribunal disagreed and held that where the days were spent was irrelevant – merely owning residential property in New York was enough.

This is the first time that New York has taken this position.  In the past, taxpayers typically met the statutory resident test if the requisite “more than 183 days” were spent at the permanent place of abode.  A vacation home did not necessarily constitute a permanent place of abode.  That is no longer the case.

Both the Wall Street Journal and the New York Times have covered this issue.

If you have questions or would like more information, you can reach me at crichie@kaufmanrossin.com, or 305.858.5600.

Carl Richie is a multi-state tax manager for Kaufman, Rossin & Co., one of the top 100 CPA firms in the country.

Got foreign assets? Beware!

Thursday, January 6th, 2011

The Federal Government is getting more serious about foreign reporting requirements for U.S. taxpayers. 

The  HIRE Act (the Act) was signed into law by President Obama on March 18, 2010.  The Act included new reporting and disclosure requirements for foreign assets held by U.S. taxpayers.  The Act incorporates provisions of the Foreign Account Tax Compliance Act (FATCA) of 2009.

Starting in 2011, a U.S. taxpayer, who holds any interest in specified foreign financial assets during the tax year, must attach a disclosure to their individual tax returns of those assets.  The nature of the information to be disclosed is similar to the information reported on Form TDF 90-22.1 Report of Foreign Bank and Financial Accounts (FBAR) but there are differences with respect to the type of assets, the extent of the reporting, and the penalties involved.

What is a Specified Foreign financial Asset?

Foreign financial assets are any assets held outside of United States with an aggregate value exceeding $50,000. These include:

1. Any depository, custodial or other financial account maintained by a foreign financial institution, and
2. Any of the following assets which are not held in an account maintained by a financial institution, such as:
   • Any stock or security issued by a non-U.S. company
   • Any financial instrument or contract held for foreign investment that has an issuer or counterparty which is a non-U.S. person and
   • Any interest in a foreign entity such as interests in foreign partnerships, foreign hedge funds and private equity funds.

How will this be reported?

At the moment, is not clear how this new disclosure will be made. There may be a new form created by the Internal Revenue Service or Form 8275, Disclosure Statement, might be used. However, all individuals who fall into this new reporting requirement would have to attach the disclosure statement to their Individual Income Tax return, Form 1040.  Remember, this disclosure will be in addition to the FBAR reporting form TDF 90-22.1 if required.

The FATCA disclosure statement should include the following:

• Name and address of the financial institution in which the foreign account is maintained by the U.S. taxpayer, including account number, or
• In the case of any stock or security, financial instrument or contract, the name and address of all the issuers and counterparties, and
• The maximum value of the asset held during the tax year.

What are the penalties for failure to disclose?

An individual who fails to provide the required information with respect to specified foreign financial assets for any taxable year is subject to a penalty of $10,000 per year.

In addition, this penalty will be increase by $10,000 for each 30 day period if failure continues after 90 days from notification from the IRS.   However, the maximum penalty will not exceed $50,000.

Are there any exemptions from this penalty?

Yes, the penalty is not imposed to any individual who can show to the IRS satisfaction that the failure is due to reasonable cause and not due to willful neglect.

Are there additional foreign issues covered by the HIRE Act?

•  Passive Foreign Investment Companies (PFIC):  For persons owning shares in a PFIC, the Act increases the reporting requirements.  However, the IRS is still developing further guidance regarding this new reporting obligation.           
• United States Owner of a Foreign Trust: The Act requires U.S. persons who are owners of any portion of a foreign trust or U.S. persons who receive any distributions from the trust to provide information with respect to the trust and ensure the trust complies with its reporting obligations.

The Act included several other international tax provisions.  For the full text of the bill, click here

These additional requirements come into effect for tax year begining 2011.  If you think you may fall under these new requirements, please contact a tax advisor.

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Maria Toledo is a tax supervisor with Kaufman, Rossin & Co., one of the top CPA firms in the Southeast.  She can be reached at mtoledo@kaufmanrossin.com.

The Tax Bill Passed – Now What?

Friday, December 17th, 2010

Taking advantage of year-end tax planning can help you identify strategies that will allow you to minimize your tax liabilities.  This has been an odd year for purposes of year-end tax planning. Numerous tax breaks introduced in 2001 and 2003 were scheduled to expire at the end of 2010. Even the tax rates for 2011 were uncertain. Congress finally passed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act (the Act) just after midnight on December 17, 2010. Prior to enactment, it may have been prudent to accelerate ordinary and capital gain income to 2010 in order to take advantage of the relatively low tax rates.

Deferring income  is generally the best practice. 

• Now that the tax rates over the next two years are established, the traditional strategy of deferring income into the future is again the best tax option.  This takes advantage of the time value of money.

Accelerate the purchase of business assets

• The Act allows a 100% write off of investments in business assets (not including real property) purchased after September 8, 2010. This benefit is also effective for 2011 and 2012. There is no income or investment limitations as there is for the existing Section 179 expense. If you were considering investing in new equipment in early 2011, you may want to accelerate the purchase to 2010.

Take advantage of business deductions made available by The Small Business Jobs Act of 2010.

• You can benefit from the tax breaks for purchasing equipment, software and certain real property for your business  if you cannot take advantage of the new 100% deduction. You may expense up to $500,000 of equipment costs if the asset was placed in service during 2010. These benefits will also be available in 2011. And, you can also claim a 50% first-year depreciation bonus.
• Self-employed individuals can now deduct the cost of health insurance when calculating self-employment taxes.

Changes to business credits may affect you.

• Eligible small employers are allowed a credit for certain expenditures to provide health insurance coverage for their employees for 2010 and beyond.
• In addition, as a result of the Small Business Jobs Act of 2010, the credit carryback period for eligible small business credits is extended from one to five years. 
• The Act extends the research tax credit to 2010 and 2011.

Contributions from an IRA to charities

• The Act extended the ability to make tax-free distributions directly to charities for 2010 and 2011. Although you will not get a charitable deduction you will not pay tax on the distributions to your favorite charities.

These are just a few considerations to get you started on your year-end tax planning. There are many more considerations that you should evaluate. Please don’t hesitate to contact me or any Kaufman, Rossin professional.

Dennis Fitzpatrick is a tax principal at Kaufman, Rossin’s Miami office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country. He can be reached at dfitzpatrick@kaufmanrossin.com.