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Proactive Tax Planning with a Dallas Tax CPA

Posted on May 24, 2013 by GurianPLLC

 Dallas Tax CPA

 

For most small businesses and individuals, tax season is mercifully over, but that does not mean that you should forget entirely about taxes for the rest of the year. In fact, according to this Forbes article, proactive business owners have a huge advantage when the next tax season rolls around. If you keep interacting with your Dallas Tax CPA as the year unfolds, you will have less anxiety next tax season.

 

For instance, you could receive tips and advice on spending decisions that would help you maximize deductions for the 2013 tax year.

 

Streamline expense recording

 

Stop throwing those receipts into a shoe box! There are so many fantastic and free or quite inexpensive cloud based storage technologies available that it makes too much sense not to use one. Scan receipts, or take pictures of them with a camera or even any smart phone and just save the results into a folder labeled “tax receipts” in your database. The benefit beside just not losing small pieces of paper during the year is that when it is time to file your returns, you will just need to share that folder with you accountant.

 

Auto expense deductions

 

The 50% “bonus depreciation” tax break for new vehicles placed in service has been restored in 2013. That means there are some scenarios when rather than using the standard mileage rate of 56.5 cents per mile, you will come out ahead deducting actual expense for a new car. This does mean keeping track of actual auto expenses, but if you implement a scanning and storage system, then this won’t be much more of a hassle. Consult with your CPA to run the numbers for you, but depending on the price of the car, when you place it in service and how many actual miles you drive each month, that tax break could result in quite a bit of difference.

 

Section 179 extension

 

If you are considering upgrading equipment or software this year, there is an option to deduct the full cost up front for qualifying purchases up to $500,000. This is a 2013 tax year extension only, and it may go away in 2014 so as you are planning for future purchases for your business, you should consider this deduction. Your accountant will be able to provide you the list of qualifying purchases.

 

W-2 withholding updates

 

Individuals benefit from continued CPA consultations as well. During the year you may receive a raise, or change jobs resulting in a salary adjustment, or experience any number of life events that would initiate a change in your paycheck withholdings. For instance, if a raise pushes you up into another tax bracket, your CPA might advise you to increase your pre-tax retirement account contributions to offset the tax liability. 

 

Gurian PLLC is a Dallas Tax CPA firm providing exceptional accounting and CPA services to individuals and business owners throughout the year. Contact us today for more proactive tips on planning for 2013.

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Dallas Accounting Firm Provides Reporting Assurances for Decision Makers

Posted on May 21, 2013 by GurianPLLC

Dallas Accountant

Today’s business environment is fast paced and constantly evolving. Information is needed instantly in order to make decisions and continue growing. A Dallas Accounting Firm will be able to offer local business owners the professional accounting solutions needed to keep pace within the marketplace.

 

Timely and Accurate Reporting

 

A business’ financial statements are the source for strategic planning, cash flow analysis, securing financing from lenders, and everyday budgeting and business decisions.  The foundation of any set of financial reports is maintaining a regular schedule of thorough account reconciliation. For instance, the only way to validate that a cash total on the balance sheet is correct is to perform detailed bank reconciliations every month. Cash flow projections won’t help to prevent a shortage if the starting balance is inaccurate.

 

Preparing financial statements

 

Most small and mid-sized private companies should have the following reports prepared monthly as soon as all account reconciliations are completed:

  • Balance Sheet
  • Income Statement (Profit & Loss)
  • Cash Flow Statement
  • Statement of Retained Earnings

 

These provide owners and executives with an accurate picture of the current financial standing of the business. It will be easy to analyze whether that new marketing plan is translating into sales or to see if the timing is right to begin investing in developing a newly proposed product.

 

Compilations, Reviews and Audits

 

In addition to assisting with account reconciliation and financial reporting, a CPA firm can provide businesses with varying levels of assurances on the reliability of their statements. This can be critical should there be a need for a business loan for instance.

  • Compilation – This consists of compiling the financial statements after gaining a level of understanding with the accounting principles common in the client’s industry. The statements will be read to check that they are free of material errors and comply with the appropriate form. No formal opinion is expressed in the compilation report, but this is usually all a private company needs.
  • Review – This process goes deeper than a compilation. The firm will make inquiries in regards to internal controls and processes, recordkeeping practices, actions of the board and changes in business activities. Then they will apply analytical procedures designed to identify significant variances or trends in the financial statements that may need explanation. Basically, a compilation provides no assurance, and a review provides limited assurances but not quite up to the standards of an audit.
  • Audit – As one would expect, this is the most extensive process and includes a formal opinion statement from the CPA firm on the quality of the overall accounting procedures, internal controls, presentation and accuracy of the complete set of financial statements. This is prepared after time is spent documenting everything done in a review, then the firm performs testing on selected transactions to ensure procedures are being followed at all times.

 

Gurian PLLC is a Dallas Accounting and CPA firm providing all the services described above and as well as payroll services, tax planning and preparation and much more. Contact us today for a free consultation.

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Dallas CPA Answers: How Will the Internet Sales Tax Affect Dallas Consumers?

Posted on May 16, 2013 by GurianPLLC

Dallas CPA Firm

 

The new Internet sales tax has been making headlines recently. The Senate approved the new legislation under the name “Marketplace Fairness Act”. Now it’s up for debate in the House, where the outcome is uncertain since Republicans are divided over the issue. If passed, how will this legislation affect the average consumer in Dallas?

 

Effects of the Law

 

The law will affect residents of different states in various ways. The new legislation requires online retailers to charge sales tax if they sell at least $1 million outside of the states where they have a physical presence. Currently, large retailers with physical locations around the nation, such as Wal-mart, already charge sales tax when you purchase something online. However, many large online-only retailers, such as Amazon, are only required to charge tax in states where they have a physical presence, such as a warehouse. This is the case in Texas. Amazon has a major warehouse in Texas. So, we’ve been paying tax on Amazon purchases for years. Additionally, many states have already passed their own laws mandating online retailers to charge sales tax. Other states have made direct agreements with major retailers, like Amazon, to collect taxes on their resident’s purchases. In a nutshell, the law will not change the amount of tax Texans have been paying for online purchases from major retailers since most already have a presence in our state.

 

Not All Online Purchases

 

Remember that the online retailer must meet the minimum requirement of $1 million in out-of-state sales to be forced to charge sales tax. Thus, the tax will not affect smaller retailers or individual entrepreneurs on eBay. Texans will not pay tax on purchases from the smaller retailers.

 

While the Internet Sales Tax is up for heated debate, Texans can rest easy that very little will change in our state. We’ve already been paying sales tax for most major retailers, including the biggest online retailer, Amazon. The rare exception may be a major retailer with no presence in Texas that is currently not charging sales tax. In that rare scenario, they would start charging sales tax after the legislation passes.

 

Over the last few years, we’ve seen many changes to the tax system, some that affect us dramatically and some that do not. Let Gurian PLLC help you navigate the ever-changing legislative process. Contact our Dallas CPA office with all your financial needs.

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Quick Quiz: Do You Need a Dallas Accountant?

Posted on May 13, 2013 by GurianPLLC

Dallas Business Accountant

Whether you are a start-up business or an established business owner in the Dallas-Ft. Worth area, you are already aware that the stress of just running the day-to-day operations of your business consumes most of your time and energy.  Most business owners neither have the expertise nor the time to also be a full time bookkeeper.  If you are being overwhelmed with payroll, invoices, tax deductions and other financial areas of running your business, ask yourself the following questions:

 

  • Is your accounting system designed to meet the individual needs of your business?
  • Are you paying the correct type of taxes in the correct amounts?
  • If you are sending out 1099s, will the IRS agree that these individuals are independent contractors and not employees?
  • Do you understand how to separate your personal and business expenses?
  • If the IRS should require an audit of your tax returns, are you prepared to handle it?
  • Do you understand how to compile financial statements for your business, and if so, do you understand what these statements are telling you about your business?
  • Do you totally understand what business expenses are and are not deductible?

 

If the answer to any of the above questions is “No” or “I’m not sure”, you most likely need the help of an experienced Dallas business accountant.  Your accountant can help you establish business methods and processes that are most efficient for your business, along with making sure that you are tax compliant with all the necessary state and federal taxing agencies.  Your business should have systems in place so you can confidently answer the questions above, or at least have a professional accountant here for you to help you answer these questions.

 

A professional Dallas business accountant will always understand the ever-changing tax laws and regulations and will know exactly how these changes affect you and your business.  The IRS is paying close attention to the tax returns filed by small businesses and tax audits are on the increase.  Your accountant will not only file your tax returns correctly and on time, but will represent you should the IRS call for an audit.  Having a professional accountant on your side is a win-win situation.

 

Gurian PLLC, a Dallas CPA firm, provides exceptional accounting and CPA services to individuals and business owners with varying financial needs. When tax issues arise, you can count on our years of experience to get you through the maze of red tape. We are here to represent you when you’re selected for a tax audit.  Contact us today and give us the opportunity to discuss, plan, and help you make decisions proactively.

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Six Tips on Making Estimated Tax Payments

Posted on May 7, 2013 by GurianPLLC

Dallas CPA Firm

Some taxpayers may need to make estimated tax payments during the year. The type of income you receive determines whether you must pay estimated taxes. Here are six tips from the IRS about making estimated tax payments.

 

1. If you do not have taxes withheld from your income, you may need to make estimated tax payments. This may apply if you have income such as self-employment, interest, dividends or capital gains. It could also apply if you do not have enough taxes withheld from your wages. If you are required to pay estimated taxes during the year, you should make these payments to avoid a penalty.

 

2. Generally, you may need to pay estimated taxes in 2013 if you expect to owe $1,000 or more in taxes when you file your federal tax return. Other rules apply, and special rules apply to farmers and fishermen.

 

3. When figuring the amount of your estimated taxes, you should estimate the amount of income you expect to receive for the year. You should also include any tax deductions and credits that you will be eligible to claim. Be aware that life changes, such as a change in marital status or a child born during the year can affect your taxes. Try to make your estimates as accurate as possible.

 

4. You normally make estimated tax payments four times a year. The dates that apply to most people are April 15, June 17 and Sept. 16 in 2013, and Jan. 15, 2014.

 

5. You should use Form 1040-ES, Estimated Tax for Individuals, to figure your estimated tax.

 

6. You may pay online or by phone. You may also pay by check or money order, or by credit or debit card. You’ll find more information about your payment options in the Form 1040-ES instructions. Also, check out the Electronic Payment Options Home Page at IRS.gov. If you mail your payments to the IRS, you should use the payment vouchers that come with Form 1040-ES.

 

For more information about estimated taxes, contact us today.  Gurian PLLC Dallas CPA Firm is a full service accounting firm, offering bookkeeping, payroll, and tax preparation and tax planning services to business owners and individuals.  A complimentary initial consultation is offered to all new clients.

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Payroll Services Provide Business Owners Peace of Mind

Posted on May 3, 2013 by GurianPLLC

Dallas Payroll Services

 

For small businesses, processing payroll can be a complicated and time-consuming task. Besides the basic functions such as calculating wages and withholdings, there are also the state and federal tax regulations that must be met. Those laws are constantly changing therefore it is the best interest of a company to choose a CPA firm to provide payroll services.

 

Payroll Tax Returns

 

Just to give you an idea of how easy it would be lose track of all the necessary payroll tax forms – here’s a (partial) list:

 

- W-2

- W-3

- 1099

- 1096

- 940 or 940EZ

- 8027

- 945

 

Those are just the Federal returns. There are also annual local tax reports and state versions. Even if you had a dedicated person on staff processing payroll, you would still need to ensure that you are in compliance at all levels. Hiring an outside CPA firm can save money on legal fees and put compliance in the hands of a company that understands these tax related issues.

 

Tax Payments

 

In addition to completing all the required forms, there are multiple deposits that need to be made in relation to paying employees.

 

- Social Security

- Medicare

- Federal and state withholding

- Unemployment

 

A payroll service provider will eliminate the risks of having to calculate those amounts yourself, and they will transmit those payroll tax payments and reports on time to avoid penalties.

 

Other Benefits

 

A payroll service makes it much easier for you to offer benefits to your employees such as direct deposit, retirement plans, and flexible spending accounts for health and child care. The major benefits are to you, the business owner.

 

-  Saves money –  It is much easier to budget for the fixed cost of an outside service than it is to budget for in house staff.

 

- Saves time –  You won’t have to manage an in house department or keep track of the various deadlines and requirements.  Your focus remains on your core business.

 

- Better reporting and management of your finances – Knowing what is happening and how much you are spending on labor is critical in any competitive business. With instant reporting and accurate details provided by an outside service, you can plan the use of your resources much more effectively.

 

- Reduce risks – no one knows tax laws, forms, and deadlines better than a CPA firm and using them for payroll services would greatly reduce the potential for falling out of compliance and paying penalties.

 

 

Gurian PLLC, a Dallas CPA firm will bring you peace of mind with our payroll services. Contact us today for more information or to schedule a consultation.

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Get A Fresh Start With An Offer In Compromise

Posted on April 29, 2013 by GurianPLLC

Last week we discussed the multiple options available to taxpayers when you are overwhelmed with the amount owed in taxes.  This week, we elaborate on the details for obtaining an Offer in Compromise from the IRS.

 

Dallas Tax Help

 

Simply stated, an offer in compromise is an agreement to settle with the IRS for a lump sum amount that is less than the amount of taxes owed.  As a taxpayer, you must be able to demonstrate to the IRS that paying your full tax liability would create a financial hardship. The IRS has expanded its “Fresh Start” initiative to offer more help to unemployed and financially stressed taxpayers.  They have streamlined their procedures for both offers in compromise and installment agreements.

 

Are You Eligible To Submit An Offer In Compromise (OIC)?

 

Some of the basic circumstances the IRS will consider in reviewing an OIC include, ability to pay, income, expenses, and equity in assets.  Obviously, everyone would like to have a tax bill reduced, but it is not as simple as trying to make a deal with the IRS.  You must prove to the IRS that there is considerable doubt that they can every collect the full tax bill from you or that due to your exceptional circumstances, payment of the total tax bill would cause an economic hardship.  If the IRS feels that the amount being offered is the most they can expect to collect within a reasonable period of time, the OIC will generally be approved.

 

How Do You Submit Payment To The IRS?

 

While your offer in compromise is being evaluated, the following tax payment methods are available:

 

Lump Sum Cash: An initial payment equal to at least 20 percent of your total offer must be submitted with your application for offer in compromise.  Once the OIC is accepted, you must pay the remaining balance of your offer in no more than five payments.

 

Periodic Payments:  An initial payment must be submitted with your OIC application.  You must continue to make monthly installments while the IRS is considering your offer.  If your OIC is accepted, the remaining balance can be paid in monthly installments.

 

If you meet IRS low-income guidelines, you are not required to submit the initial payment or make monthly installments while your offer in compromise is being evaluated.

 

Even though the IRS is obligated to give a properly submitted OIC fair consideration, there is no legal right to have a valid tax bill reduced. To ignore the problem and just pretend that it doesn’t exist will only make the problem worse, and delaying proposing a workable repayment plan will result in mounting interest and penalties.  It is sometimes possible to pay your taxes at an enormous discount and get a fresh start, but submitting an offer in compromise is a formal process that is best left to a CPA or other professional.

 

Gurian PLLC Dallas CPA firm provides exceptional accounting and CPA services to individuals and business owners with varying financial needs. When tax issues arise, you can count on our years of experience to get you through the maze of red tape. We are here to represent you when you need to deal with IRS issues and problems. Contact us today and give us the opportunity to discuss, plan, and help you make decisions proactively.

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Can’t Pay the Taxes You Owe? You Have Options

Posted on April 23, 2013 by GurianPLLC

Dallas Tax CPA

 

So you read our other posts about paying your taxes when you file an extension and not waiting to take care of your taxes if you filed late.  Are you still worried about being able to fulfill your tax liability to the IRS?  When you have delinquent tax returns or have accumulated an IRS tax debt, the process of correcting the situation should never be delayed.  The average taxpayer is unaware that you do have options when faced with IRS problems.

 

Offer In Compromise

 

Even though a taxpayer has no legal right to have a valid tax bill reduced by the IRS, it is sometimes possible to wipe out your tax debt at an enormous discount.   An offer in compromise simply allows you to pay off your tax debt for less than the full amount you owe.  The IRS considers these unique features when approving an offer in compromise:

 

- Ability to pay

- Income

- Expenses

- Equity in assets

 

An offer of compromise is usually approved when the IRS feels that the amount offered represents the maximum amount that can be collected in a reasonable period of time. To be eligible to apply, we will make sure all tax-filing requirements are current.

 

Installment Agreements

 

Guaranteed Installment Agreement – For taxpayers who owe less than $10,000 in tax debt, this may be the simplest way to retire tax debt by making monthly installment payments.

 

Partial Payment Installment Agreement – If your financial situation will not allow you to pay off your tax debt in full, a partial payment agreement will allow you to pay less than you owe over time.

 

Once the IRS has agreed to accept the proposed payment plan, all collection action, like levy on bank accounts or garnishment of wages will stop as long as payments are made on time.

 

Currently Not Collectable

 

If your income only meets the need to cover necessary living expenses and you have no assets that the IRS can levy, you might possibly be considered “currently not collectable” by the IRS.  This status means that the IRS will temporarily pause collection action against you under the hardship rule.  This does not eliminate your tax debt and interest will continue to accrue.  To maintain this status, the IRS will monitor your financial situation on an annual basis and all future tax returns must be filed on time.

 

The IRS has expanded its “Fresh Start” initiative to offer more help to unemployed and financially stressed taxpayers.  They have streamlined their procedures for both offers in compromise and installment agreements. To ignore the problem and just pretend that it doesn’t exist will only make the problem worse, and delaying proposing a workable repayment plan will result in mounting interest and penalties.

 

Request “Additional Time To Pay”

 

In some cases, if you can describe your situation, and if you are able to pay within 60 to 120 days, you might be able to get a little more time to make your tax payment. Call 800.829.1040 to speak to someone about this option or apply through the Online Payment Agreement application. If you can pay your tax in full within a relatively short period of time, there is a chance that you can pay less in interest and penalties.

 

Do not confuse this option with an “extension”, which is simply a request for additional time to file your return. Those who request an extension still have to pay any tax liability on tax day, they don’t get additional time to pay their taxes.

 

The IRS is more flexible than you might think, as long as you are willing to meet your obligation, and can show that you need the help.  Gurian PLLC, a Dallas CPA firm, provides exceptional accounting and CPA services to individuals and business owners with varying financial needs. When tax issues arise, you can count on our years of experience to get you through the maze of red tape. We are here to represent you when you need to deal with IRS issues and problems. Contact us today and give us the opportunity to discuss, plan, and help you make decisions proactively.

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Miss the Tax Filing Deadline? Now What?

Posted on April 19, 2013 by GurianPLLC

Dallas CPA Firm

If you missed the April 15 deadline to file either your federal income tax return or an extension, you don’t have the luxury of simply waiting until next year – the time to act is now.  Melissa Labant, AICPA director of tax advocacy, speaking to the New York Times Bucks Blog, advised taxpayers to file as soon as possible and to avoid falling into the trap of thinking ‘oh, the deadline passed so there’s no rush now.’

 

There are two reasons to get this out of the way as soon as possible. If you’re owed a refund you won’t be charged a late filing penalty, but it’s your money and can be better put to use if it’s in your wallet. And with a recent AICPA survey showing that this year taxpayers are relying on their refunds more than in the past, it makes good financial sense to put that money to work.  Second, if you owe the IRS money, filing as soon as possible after the deadline will lessen the impact of the late-filing or late-payment penalties and interest, which will save you money.

 

Normally, if you file your return late, you’ll receive a notice of penalty from the IRS. And while they will not typically waive the interest due on any taxes owed, if you can prove that you had a reasonable cause for filing late, it is possible they will reduce the penalties.  At that time, your CPA can respond with a “Dear IRS” letter, explaining why you filed late and why you think you are eligible for an abatement of the penalties, Labant said.

 

One word of caution: your filing history can either help or hurt your case. Taxpayers with a record of paying in full on time stand a better chance than those who have claimed ‘the dog ate my tax return’ the past 5 years in a row.

 

Once you’ve settled your 2012 taxes, don’t simply decide to wait until next year to start the process again – taxes aren’t just about meeting the April 15th deadline.  Establishing year-round tax planning strategy can help you achieve your financial goals. The guidance from a CPA can help you get the most from your financial resources and charting the course to financial security.

 

Contact us today to schedule an appointment.  New clients are offered a no-commitment complimentary initial consultation.

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Tax Deadline: Filing Your Tax Return or Extension by April 15th

Posted on April 11, 2013 by GurianPLLC

Tax Day is mere days away, though many will wait until the last minute to take action.  If there’s no possible way you’ll make the tax deadline, as a last resort you can file for an extension by April 15.

TT Extension Blog Post image 4.10.13

Filing an extension automatically pushes back the tax filing deadline to October 15, 2013 and protects you from the failure to file penalty which can grow at a rate of 5 percent of the amount due with your return for each month that you’re late, up to five months. For example, if you owe $2,500 and are three months late, the late-filing penalty would be $375.

 

Be aware that filing an extension is simply an extension of time to file, not an extension to pay. If you owe money for the 2012 tax year, you still need to pay your tax liability (within 90 percent accuracy) by April 15 to avoid paying interest and penalties on the amount owed. 

 

Filing an extension does not stop you from incurring interest and paying a late payment penalty. You will incur interest at a rate determined quarterly based on the federal short-term rate, plus 3% compounded daily even if you do file an extension, which is why filing for an extension should not be thought of as a way to delay tax payments.

 

You will also have to pay a late payment penalty, which is one-half of one percent of tax owed each month or part of the month until tax is paid in full or 25% max is reached.

 

Even if you are unable to pay your tax liability in full, you should pay as much as you can with your tax return. We can even apply for an online payment agreement or Installment Agreement Request when we submit your tax return.  So, do you really need more time to file your taxes this year? Whether you’re filing your taxes up until April 15 or you need to file an extension, we’ve got you covered.

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