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.

ALERT: You may have paid too much sales tax!

Wednesday, March 7th, 2012

Sales and use tax rules are complex and can be confusing.  It’s surprising how often entrepreneurs pay more taxes than they’re required.  Many never even know they overpaid thousands!

If your business is in the manufacturing, hospitality, or healthcare industry then you may qualify!

Our experts find overpayments and recover them.

Our State & Local Tax professionals will analyze your payments and see whether you have a refund due.  We look at your fixed asset and consumable purchases over the past three years, and often find vendor overcharges of sales tax, or sales/use tax paid on nontaxable transactions. Then we file a refund claim with the State to recover the overpaid tax, or we prepare a report so you can recover the overpayments by taking credits against future sales tax payments.

It works.  We’ve found significant refunds for many clients.

For example:

• We recovered approximately $130,000 in overcharged sales tax for a South Florida resort hotel.
• We recovered approximately $250,000 in overpaid sales/use tax for a Central Florida manufacturing company.

Here’s the best part: it costs nothing unless we succeed.

The work is performed on a contingency fee basis. There is no cost to you unless we find an overpayment and get your money back.  Our fee is paid out of the cash we recover.  There is zero impact on your budget.

Clients find our experience invaluable.

This time-consuming work requires a significant base of knowledge about the rules and how they may be applied.  It takes detail orientation and patient attention.  Kaufman, Rossin has built a team of professionals whose technical skills and abilities in this area are unmatched.

• We have 15 years of FL Dept. of Revenue (“FDOR”) experience
• We have extensive contacts within the FDOR.
• We started doing this at the Big Four, but chose to bring this real value to entrepreneurs at Kaufman, Rossin a dozen years ago.

Want to know if you overpaid – and get it back?

For additional information on our State & Local Tax (SALT) Practice, please contact:

• Dan Wagner – 561.620.1718 – dwagner@kaufmanrossin.com
• Or your Kaufman, Rossin account professional.

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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.

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.

What should you do before you board a helicopter?

Thursday, December 1st, 2011

I thought I was pretty savvy about money, but when I met earlier this week with the panelists for Thursday’s free breakfast seminar, Money Mistakes Savvy Businesswomen Should Avoid, I learned how much I don’t know.  

This is going to be a great panel, nothing like your typical financial planning seminar.  Panelists Lisa Grossman, Tanya Ferreiro, Debbie Morrison, and Ellen Siegel will share personal stories as well as their expertise.  We’ll discuss a variety of topics including:

• the changing definition of  “emergency” fund
• the longevity trap
• the special issues of non-traditional families, and
• what you should do before you board a helicopter!

We’re busy and we fail to make the the time for sessions like this.  That’s one of our major mistakes.  I urge you to find time to join us!

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.

Is the IRS targeting you?

Wednesday, September 28th, 2011

If you make more than $1 million, watch out.  Seems like the IRS is targeting wealthy taxpayers.  8.4% of taxpayers making more than $1 million were audited last year, compared to 1.1% of the general population. For those with more than $10 million, the audit rate was %18.4.

Barron’s recently posted an article online called “How the IRS Is Probing the Rich.” “…Folks with fat bank accounts, pricey properties, big incomes, large investments and complex tax profiles” should be on the lookout. The federal government is trying to recoup some of the billions in taxes that is estimated due, but not collected.

The new “wealth unit” may have you in their sights. Red flags:

• property transfers
• certain investment losses
• home-loan interest deductions
• foreign income
• big spenders

The IRS is getting a nice return on their investment. The IRS estimates that for every dollar they spend on enforcement, they bring in as much as $10.

This article is definitely worth browsing, especially if you fall into the category of “rich.”

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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.

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.