IRS Plans Jan. 30 Tax Season Opening For 1040 Filers

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Federal, State, Local andInternational Taxes — Following the January tax law changesmade by Congress under the American Taxpayer Relief Act (ATRA), the InternalRevenue Service announced it plans to open the 2013 filing season and beginprocessing individual income tax returns on Jan. 30.

The IRS will beginaccepting tax returns on that date after updating forms and completingprogramming and testing of its processing systems. This will reflect the bulkof the late tax law changes enacted Jan. 2. The announcement means that thevast majority of tax filers — more than 120 million households — should be ableto start filing tax returns starting Jan 30.
The IRS estimatesthat remaining households will be able to start filing in late February or intoMarch because of the need for more extensive form and processing systemschanges. This group includes people claiming residential energy credits,depreciation of property or general business credits. Most of those in thisgroup file more complex tax returns and typically file closer to the April 15deadline or obtain an extension.
The opening of thefiling season follows passage by Congress of an extensive set of tax changes inATRA on Jan. 1, 2013, with many affecting tax returns for 2012. While the IRSworked to anticipate the late tax law changes as much as possible, the finallaw required that the IRS update forms and instructions as well as makecritical processing system adjustments before it can begin accepting taxreturns.
Who Can FileStarting Jan. 30?The IRS anticipatesthat the vast majority of all taxpayers can file starting Jan. 30, regardlessof whether they file electronically or on paper. The IRS will be able to accepttax returns affected by the late Alternative Minimum Tax (AMT) patch as well asthe three major “extender” provisions for people claiming the state and localsales tax deduction, higher education tuition and fees deduction and educatorexpenses deduction.
Who Can’t FileUntil Later?There are severalforms affected by the late legislation that require more extensive programmingand testing of IRS systems. The IRS hopes to begin accepting tax returnsincluding these tax forms between late February and into March; a specific datewill be announced in the near future.
The key forms thatrequire more extensive programming changes include Form 5695 (ResidentialEnergy Credits), Form 4562 (Depreciation and Amortization) and Form 3800(General Business Credit). A full listing of the forms that won’t be accepteduntil later is available on IRS.gov.
Wantmore information about filing requirements and tax credits?  For no obligation free consultation contact ustoday!ABA Tax Accountinginfo@abataxaccounting.com612-282-3200866-936-0430 TollFreehttp://www.abataxaccounting.comwww.abataxaccounting.wordpress.comwww.abatax81.blogspot.com

Good Reasons to E-file Your Tax Return

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ABA Tax Accounting | Tax Services | St. Paul, MN Accounting Firm

Federal, State, Local and International Taxes - If you haven’t tried IRS e-file before, now is the time. Most taxpayers – more than 80 percent – file electronically. The IRS has processed more than 1 billion individual tax returns safely and securely since the nationwide debut of electronic filing in 1990. Fewer people file a paper tax return every year. Here are five good reasons to e-file your tax return:·         Accurate and complete. E-file is the best way to file an accurate and complete tax return. Tax returns that are incomplete or include errors take longer to process.·         Safe and secure. Tax preparers and software companies who e-file must meet strict guidelines and provide the best in encryption technology. You receive an acknowledgement within 48 hours that the IRS received your tax return. If the IRS does not accept your tax return, you will receive notification and can quickly correct your return and resubmit it.·         Faster refunds. An e-filed tax return usually means a faster refund compared to a paper return. The IRS issues most refunds in less than 21 days. If you choose direct deposit, your refund goes directly into your bank account. Combining e-file with direct deposit is the fastest way to get your refund. About three out of four taxpayers who file receive a tax refund. Last year the average refund was about $2,700.·         Payment options. If you owe tax, you can e-file early and set an automatic payment date anytime on or before the April 15 due date. You can pay by check or money order, by debit or credit card, or by transferring funds electronically from your bank account.·         It’s easy. You can e-file on your own through IRS Free File, the free tax preparation and e-filing service available exclusively at IRS.gov. You can also use commercial tax preparation software or ask your tax preparer to e-file your return. And, if you qualify, IRS Volunteer Income Tax Assistance and Tax Counseling for the Elderly partners will e-file your return for free.For no obligation free consultation contact us today!ABA Tax Accountinginfo@abataxaccounting.com612-282-3200866-936-0430 Toll Freehttp://www.abataxaccounting.comwww.abataxaccounting.wordpress.comwww.abatax81.blogspot.com

1099S: 5 KEY REPORTING CHANGES FOR BUSINESSES

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ABA Tax Accounting | Small Business Accounting | St. Paul, MN Accounting Firm

Small Business Accounting — According to the IRS, under-reporting of income is the biggest contributing factor to the IRS tax gap--the amount owed by individuals and businesses versus the amount that was actually paid in taxes. In 2006, the most recent year for which data are available, under-reporting across taxpayer categories accounted for an estimated $376 billion of the gross tax gap.
Overall, the IRS found that compliance is highest where there is third-party information reporting (1099 forms used to report taxable income earned that is not considered salary and wages) and/or withholding (W-2 forms). In the case of W-2 forms, the IRS found that a net of only 1% of wage and salary income was misreported; however, amounts subject to little or no information reporting had a 56 percent net misreporting rate in 2006.
In an effort to close that tax gap, the IRS has changed some reporting requirements for 1099s for tax year 2012. Here are some of those key changes:1. 1099-MISC. Starting in 2012, compensation of $600 or more paid in a calendar year to an H-2A visa agricultural worker who did not give you a valid taxpayer identification number must be reported on 1099-MISC. You must also withhold federal income tax under the backup withholding rules. However, if the worker does furnish a valid taxpayer identification number, then report the payments on Form W-2.2. 1099-B. New boxes have been added to Form 1099-B for reporting the stock or other symbol (box 1d), quantity sold (box 1e), whether basis is being reported to the IRS (box 6b), and state income tax withheld (boxes 13-15). Other boxes on the form have been moved or renumbered. In addition, brokers must report on Form 1099-B sales of covered securities by an S corporation if the S corporation acquired the covered securities after 2011.3. 1099-C. The titles for boxes 1, 2, and 6 on Form 1099-C have changed. Box 1 is now Date of Identifiable Event; box 2 is now Amount of Debt Discharged; and box 6 is now Identifiable Event Code, and requires the entry of a code for the identifiable event. See Box 6--Identifiable Event Code. For 2012, all codes are optional except for Code A--Bankruptcy.4. 1099-DIV. Exempt-interest dividends from a mutual fund or other regulated investment company (RIC) are now reported on Form 1099-DIV and are no longer reported on Form 1099-INT, Interest Income. Also, boxes 12 through 14 have been added to Form 1099-DIV to report state income tax withheld.5. 1099-INT. Exempt-interest dividends from a mutual fund or other regulated investment company (RIC) are no longer reported on Form 1099-INT. Instead, those amounts are reported on Form 1099-DIV, Dividends and Distributions. In addition, boxes 11 through 13 have been added to Form 1099-INT to report state income tax withheld.
If you need help with 1099s this year, don't hesitate to give us a ring. We're happy to help you out. For no obligation free consultation contact us today!ABA Tax Accountinginfo@abataxaccounting.com866-936-0430 Toll Freehttp://www.abataxaccounting.comwww.abatax81.blogspot.comwww.abataxaccounting.wordpress.com

QUICKBOOKS TIPS - Filtering a Report

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ABA Tax Accounting | QuickBooks ProAdvisors | St. Paul, MN Accounting Firm

QuickBooks Accounting Services - When filtering reports in QuickBooks, you may want to select most of the items on a particular list, but not all items to appear on your report. First choose the "selected" option from the list (selected accounts, selected names, etc).Normally you would check each item that you want to appear on your report. However, if you want to check all the items on the list, click the first item and do not release the mouse button. While holding down the mouse button, slide the mouse pointer down just below the list.When QuickBooks is done? all of the items on the list will be checked. Release the mouse button. Now you can manually click the items to remove the ones that you do not wish to include in your filter. ! For no obligation free consultation contact us today! ABA Tax AccountingAuthorized QuickBooks Affiliate(866) 936-0430 Toll Freehttp://www.abataxaccounting.cominfo@abataxaccounting.comQuickBooks Accounting Services

QuickBooks Tips - QuickBooks Online Edition

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ABA Tax Accounting | QuickBooks ProAdvisors | St. Paul, MN Accounting Firm

QuickBooks Online Edition - The essential accounting tools necessary to manage your business and the freedom to access your financial information from work, home, or the road. For businesses that need access to the books from multiple places and/or have multiple users in different locations.

• The essential accounting tools to manage your business
• Manage finances from work, home, or the road with any Internet-connected PC
• Work together on the same file from different locations
• Easy to get started, but support included anyway
• Data protected with daily, automatic back ups

For no obligation free consultation contact us today! ABA Tax AccountingAuthorized QuickBooks Affiliate(866) 936-0430 Toll Freehttp://www.abataxaccounting.cominfo@abataxaccounting.comQuickBooks Accounting Services

Help! What If I Can't Make My IRS Payment?

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If you are one of thousands of taxpayers who are in a payment plan with the IRS, but due to current economic conditions cannot make your payment, you have options. If you have lost your job and your entire financial situation has changed, you need to contact the IRS and be prepared to lay out your new situation. If you expenses have not changed and your income is all that has changed, you may just need proof (like a termination letter) you no longer have a job.

If your expenses have changed as well, you may need to provide proof of those changes as well. When you talk to the IRS, only say what has happened and answer honestly and completely any questions they may ask. Do not volunteer information, except to briefly explain your situation. Don't get chatty, even if the person you talk is friendly and personable, remember, they work for the IRS. You could make one simple statement that could cause you problems.

If your liability is substantial and you need assistance, contact an Enrolled Agent, who can represent you before the IRS. What ever you do, do not ignore your situation. If you default you payment plan, the IRS can levy your bank accounts, retirement accounts and file a lien even if your tax liability is low. Call either the IRS or an Enrolled Agent before the IRS makes a bad financial situation even worse.

Help! What If I Can't Make My IRS Payment?

To contact us Click HERE

If you are one of thousands of taxpayers who are in a payment plan with the IRS, but due to current economic conditions cannot make your payment, you have options. If you have lost your job and your entire financial situation has changed, you need to contact the IRS and be prepared to lay out your new situation. If you expenses have not changed and your income is all that has changed, you may just need proof (like a termination letter) you no longer have a job.

If your expenses have changed as well, you may need to provide proof of those changes as well. When you talk to the IRS, only say what has happened and answer honestly and completely any questions they may ask. Do not volunteer information, except to briefly explain your situation. Don't get chatty, even if the person you talk is friendly and personable, remember, they work for the IRS. You could make one simple statement that could cause you problems.

If your liability is substantial and you need assistance, contact an Enrolled Agent, who can represent you before the IRS. What ever you do, do not ignore your situation. If you default you payment plan, the IRS can levy your bank accounts, retirement accounts and file a lien even if your tax liability is low. Call either the IRS or an Enrolled Agent before the IRS makes a bad financial situation even worse.