Use Your Tax Refund to Buy A Property: Commercial or Residential
Dale Largie, CPA is also a Realtor. That's right folks! Tax Largie, Inc. continues its relentless pursuit to provide you with services you need at high quality and affordable fees.
Investors, owner-developers, realtors, and related parties can rest easy knowing that Tax Largie, Inc. understands more of the nuances associated with commercial and residential property activity: buying, selling, renting, or leasing. With this understanding, Tax Largie, Inc. and its clients can better tackle each situation with an optimal result focus - together.
Moreso, issues surrounding FIRPTA, 1031 Exchanges, gain/loss on sale, and the tax consequences for the different entities: individuals, S Corporations, C Corporations, Partnerships, Limited Liability Companies, etc., are all areas that should not be taken lightly. We can help you navigate transactions involving these situations, easily.
Then there is the age old debate pertaining to flipping houses: Ordinary Income vs Capital Gains and Passive vs Active Income. It's a lot. I know. And while the potential for making a lot of money in real estate exists, know that poor planning and care could lead to great loss in real estate, too. Be smart - get a CPA!
"Keep good records!" Whichever criteria suits you best - keep good records and you will save yourself a lot of unnecessary headaches when the Service agents visit your business.
Whoohoo! Did you hear the news? "The Internal Revenue Service announced today that it is providing taxpayers an additional day to file and pay their taxes following system issues that surfaced early on the April 17 tax deadline. Individuals and businesses with a filing or payment due date of April 17 will now have until midnight on Wednesday, April 18. Taxpayers do not need to do anything to receive this extra time."
With that said, call Tax Largie, Inc. now and your taxes e-filed timely! Our phone number is (786) 715-6781.
Dr. Marshall, like many of us, procrastinated to file his income tax returns because he was super busy taking care of patients. Understandable!
Nationwide tax service, Tax Largie, Inc., will e-file your tax returns while you're doing whatever you want to do: work, sleep, party, travel, etc. Simply follow these steps:
1. E-Mail all tax related documents to email@example.com. 2. Contact us at (786) 715-6781 for a brief conversation.
Once a draft is ready, Tax Largie, Inc. will send you a copy for review prior to e-filing. That's it! No long waiting lines; no appointment necessary; and no stress. Everything can be done from right where you are, from the comfort and use of your cellphone.
Time and time again, entrepreneurs attempt to wear many "hats", such as marketing, accounting, bookkeeping, financing, etc. While these business professionals may be fairly good at any one of those functional areas, it can become overwhelming when they try to do it all at the same time. This will often lead to diminishing returns. They should stay focused on their area of expertise and hire help for the other areas, so that the entrepreneur can focus on the company's growth and profitability. Make sense, right? So, what's the problem?
The problem is money!
Initially, most entrepreneurs do not have enough resources to hire the help they need. Ironically, had they hired the help, they would have had the time to go raise the funds, focus on sales, and increase the profitability of the company - a lot easier. Makes sense? Of course it does! So, why are they not doing it?
They say, "The CPA is too expensive!"
Every entrepreneur I ask, "How much does a CPA cost?" they tend to not know. True story! Well, I'm here to tell you that Tax Largie, Inc. will offer you a CPA as low as $43.75 weekly! That's right folks! There is no more need to suffer over the financial statements of the company; keeping track of your profitability; keeping track of sales tax; and a host of other business activity. You need help! Tax Largie, Inc. is here to help. Hire us; we're incredibly affordable!
Spend More Time with Family!
Spend more time with the family. Life is short and some precious moments happen only once. Don't miss out on those moments by drowning yourself in work and trying to be an Accountant or CPA. Call Tax Largie, Inc. We can help!
BREAKING NEWS – Tax Largie, Inc. Has Done it Again! “Money in Your Pocket”
No Catch-Up Service Fees! Catch-Up service is a service offered by many bookkeeping firms to help companies that are behind on their bookkeeping, but helps them become current or up-to-date.
The BIG Issue: Many small business owners that need the ‘Catch-Up’ service are unable to afford it, because the fees that accumulate are generally outside of their budget. Here’s an example: Michelle started a gym approximately 5 years ago and decided to do her own bookkeeping. With all the good intentions she had, it just never happened. Now, Michelle’s business is behind 5 years on her bookkeeping and the respective corporate tax return. Michelle decides to Google a CPA for help, so she contact’s Joe Schmo’s Bookkeeping Services. After a productive introduction and a nice rapport ensued, the moment of truth arrive –
How much will the ‘Catch-Up’ service cost?
Joe quickly responds, without missing a beat, “At $100 per month * 60 months, you’re looking at $6,000! You will also need a Corporate tax return for each year, which will cost $500 per year, for a total of $2,500! Therefore, the total cost will be $8,500! The full amount is due prior to starting any work. Needless to say, the Michele departs from Joe Schmo’s Bookkeeping Services and attempts to find another CPA that will do the work for a lower price, but only to realize that the fees are generally the same in the industry for ‘Catch-Up’ services.
Tax Largie, Inc. Service Plans - Eliminates Catch-Up Fees Tax Largie, Inc., a Florida based CPA firm, currently has 3 service plans that do not charge any of those exorbitant accumulated ‘Catch-Up’ fees for bookkeeping services. You simply sign up for one of our very competitive monthly pricing packages and pay prospectively, not retroactively.
Benefit – “Money in Your Pocket” In the example above, Michelle would save $8,500! Michelle would simply sign up for one of Tax Largie, Inc.’s monthly Service Plan packages that will include all prior bookkeeping work plus all current-year bookkeeping work.
What if My Bookkeeping is Already Current? Most small business owners will compare our low pricing packages with what they are currently paying and quickly see that our monthly service plans are priced lower than their current CPA, Accountant, or Bookkeeping Company. Therefore, signing up with Tax Largie, Inc. saves you money upon joining us and each month thereafter.
If you're interested in signing up for one of our cost-savings service plans, please click the Service Plan Fees tab above and go through the sign up prompts. Upon signing up, our CPA will contact you for an introduction prior to commencing work. If you prefer to speak to us prior to signing up, please contact us. We'd love to work with you.
It's Raining Income Tax Refunds! The IRS will open income tax filing season in a few hours and many tax professionals and tax payers around the country are highly anticipating it. Here are some things to keep in mind:
1. EITC recipients can expect their refunds to arrive, starting February 27, 2018. 2. If you have a serious delinquent tax debt, the IRS remind taxpayers that their passport may be at risk if they do not 'address' their delinquency. HINT: Tax Largie, Inc. can help. 3. Early filing is the best deterrent against identity theft.
Tax Largie, Inc. looks forward to interacting with everyone this income tax season and beyond.
That's right folks! Tax season 2018 is here! Many of you have been asking about the new tax law changes and how it will impact your tax returns. The changes are many and the impact will vary. However, the tax overhaul will not affect you during the 2017 tax filing season, which will be relatively normal with the minor changes as it has been since 1986. Next year when we're all filing our 2018 tax returns, we will know more of what to expect. Until then, let's take care of your 2017 income tax returns, first.
The Internal Revenue Service announced that the nation’s tax season will begin Monday, January 29, 2018. Taxpayers claiming certain tax credits, such as the EIC (Earned Income Credit) or the Additional Child Tax Credit, will have a slight delay in receiving their refunds. Taxpayers with these credits can expect their refunds no earlier than mid-February.
The tax deadline for Individuals in 2018 is April 17, 2018.
Business E-Filers – Prior Year Returns Businesses seeking to e-file prior year returns (2015, 2016, etc.) may begin Monday, January 8, 2018.
Business E-Filers – Current Year Returns Business E-Filers seeking to e-file their current year returns may start begin January 29, 2018 – same date as the Individual Returns.
IP PIN 2018 Identity Protection PIN (Protection against Tax ID Theft) is starting to arrive in the mail. Be sure to give it to your tax professional to avoid any issues when e-filing your tax returns and/or delaying the receipt of your tax refund.
Tax Largie, Inc. remains available to assist you with all your income tax return e-filing needs. You may contact us at (786) 715-6781 or firstname.lastname@example.org.
Imagine going home and telling the family, "I got a bonus!" Wow! The joy it would bring to many, especially those that really needed the financial boost. It happens to many of us every year. It's a great feeling and I commend the companies that share the profits with their employees.
Generally, it's a good feeling to get a bonus from work. It's a lump-sum amount that could help mitigate the financial burden, stress, and demands associated with the holidays. Fun-loving individuals will buy gifts, plan vacations, or simply absorb the cost of a huge family dinner. Receiving ‘extra money’ is a blessing. There are those that will tell you ‘extra money’ can be a curse, but I bet you – if you offered to relieve them of the ‘curse’ by telling them to give you the money, they would probably reject that offer. However, there is one 'catch' of getting a huge bonus: bonus tax!
Bonus - Supplemental Wages Your bonus income is considered supplemental wages by the IRS. Here’s the scoop as outlined by our friends at the Service: Supplemental Wages Identified Separately from Regular Wages. If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), the federal income tax withholding method depends partly on whether you withhold income tax from your employee's regular wages. If you withheld income tax from an employee's regular wages in the current or immediately preceding calendar year, you can use one of the following methods/options for the supplemental wages.
Method/Option 1: If the supplemental wages are paid concurrently with regular wages, add the supplemental wages to the concurrently paid regular wages. If there are no concurrently paid regular wages, add the supplemental wages to, alternatively, either the regular wages paid or to be paid for the current payroll period or the regular wages paid for the preceding payroll period. Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. Subtract the tax withheld from the regular wages. Withhold the remaining tax from the supplemental wages. If there were other payments of supplemental wages paid during the payroll period made before the current payment of supplemental wages, aggregate all the payments of supplemental wages paid during the payroll period with the regular wages paid during the payroll period, calculate the tax on the total, subtract the tax already withheld from the regular wages and the previous supplemental wage payments, and withhold the remaining tax. This method can be cumbersome and time-consuming. Needless to say, it’s the least favorite method amongst employers.
Method/Option 2: Withhold a flat 25%! Easy, right? Sure it is! This is why most employers prefer this method.
Supplemental Wages Exceeding $1 Million During The Calendar Year – Special Rules Apply If a supplemental wage payment, together with other supplemental wage payments made to the employee during the calendar year, exceeds $1 million, the excess is subject to withholding at 39.6% (or the highest rate of income tax for the year). Withhold using the 39.6% rate without regard to the employee's Form W-4. In determining supplemental wages paid to the employee during the year, include payments from all businesses under common control.
Note, however, “regardless of the method you use to withhold income tax on supplemental wages, they’re subject to social security, Medicare, and FUTA taxes.” (IRS).
If you're one of the many that will receive a bonus this year, spend/invest wisely. And remember, Tax Largie, Inc. is always available to help.
Are you tired of going home and still doing work when you could be spending time with the kids at the movies; wife on a cruise; family on a nice caribbean vacation; or simply relaxing while catching up on your favorite Netflix programs? If you are, you're in luck! All you need to do is hire a CPA for all your accounting, tax, payroll, and related business needs. And, there's no need to hire Sherlock Holmes to find one. I am right here.
Hi! My name is Dale Largie, CPA. I am a registered tax professional with the IRS and a Certified Public Accountant for the state of Florida. It's a pleasure to meet you!
People are happy when they know their trusted CPA is taking excellent care of their financial affairs. By doing so, entrepreneurs are able to focus more on building their businesses; building relationships; and spending more time being happy than stressing over financial statement preparation, delinquent tax returns; outstanding tax debts; and a host of other issues that their prudent CPA can resolve independently. So, go ahead! Retain a CPA and head to the beach.
Many sole proprietors, single-member LLCs, and several entrepreneurs of personal service corporations – including small businesses of any kind – falsely assume all CPAs are too expensive, so they become their own accountant, tax professional, legal counsel, and wear several ‘hats’ in an effort to save. Ironically, many entrepreneurs lose out on valuable tax savings which are usually more than the cost of retaining their own CPA. I have saved clients more money on one tax return for a single year that exceeded my fees for the next ten years. What is the cost? How much is a CPA worth? Is it better to retain a CPA hourly or have he or she on a fixed monthly rate? The short answer is - It depends. Affordable fixed rates vary and could be as low as:
$50 weekly / $200 monthly $100 weekly / $400 monthly $175 weekly / $700 monthly $350 weekly / $1,400 monthly In some cases, those rates could be hourly. The balance between what your CPA is worth versus what you can afford is a tricky deal to seal. Plus, it generally does not reduce the work that needs to be done: accurate accounting, properly filed tax returns, payroll, among other things such as tax planning strategies, having an invaluable business partner, and advice that could keep entrepreneurs on the cutting edge of compliance and profitability.
It’s a challenge – I agree. However, we’re affordable. Retain your personal CPA today!
Sometimes a debt can feel like an elephant is on our backs. One such debt is an outstanding tax debt, which is about to feel more burdensome due to the new program the IRS initiated to collect outstanding tax debts.
Starting this April 2017, the Internal Revenue Service will begin sending letters to taxpayers whose overdue federal tax accounts are being assigned to private-sector collection agencies. Those PCAs are:
CBE Group of Cedar Falls, Iowa;
Conserve of Fairport, N.Y.;
Performant of Livermore, Calif.; and
Pioneer of Horseheads, N.Y.
The program will begin this week with a few hundred taxpayers receiving mailings and subsequent phone calls, with the program growing to thousands a week later in the spring and summer. Taxpayers with overdue taxes will always receive multiple contacts, letters and phone calls, first from the IRS, not private debt collectors.
How the Program Works The IRS will always notify a taxpayer before transferring their account to a private collection agency (PCA). First, the IRS will send a letter to the taxpayer and their tax representative informing them that their account is being assigned to a PCA and giving the name and contact information for the PCA. This mailing will include a copy of Publication 4518: What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency. Only four private groups are participating in this program:
CBE Group of Cedar Falls, Iowa;
Conserve of Fairport, N.Y.;
Performant of Livermore, Calif.; and
Pioneer of Horseheads, N.Y.
The taxpayer’s account will only be assigned to one of these agencies, never to all four. No other private group is authorized to represent the IRS.
Once the IRS letter is sent, the designated private firm will send its own letter to the taxpayer and their representative confirming the account transfer. To protect the taxpayer’s privacy and security, both the IRS letter and the collection firm’s letter will contain information that will help taxpayers identify the tax amount owed and assure taxpayers that future collection agency calls they may receive are legitimate. The private firms are authorized to discuss payment options, including setting up payment agreements with taxpayers. But as with cases assigned to IRS employees, any tax payment must be made, either electronically or by check, to the IRS. A payment should never be sent to the private firm or anyone besides the IRS or the U.S. Treasury. Checks should only be made payable to the United States Treasury. Private firms are not authorized to take enforcement actions against taxpayers. Only IRS employees can take these actions, such as filing a notice of Federal Tax Lien or issuing a levy.
Watch Out – Scammers Are Still Scamming! The IRS reminds taxpayers to be on the lookout for scammers posing as private collection firms. The IRS will be watching for these schemes as the collection program begins, and this effort will include working with partners in the tax community and law enforcement about emerging scams.
People should remember that these private collection firms will only be calling about a tax debt the person has had – and has been aware of – for years and had been contacted about previously in the past by the IRS.
If you’re unsure if you have a tax debt outstanding, check it here: www.irs.gov/balancedue. Simply click the 'View Your Account' link and follow the instructions. If the account balance says zero, that means nothing is due and you typically wouldn’t be getting a contact from the IRS or the private firm.
Call for Help! If you need a CPA or a tax/accounting professional to assist you with any tax debt, accounting, bookkeeping, tax preparation, payroll management, or a just simply being your 'One-Stop-Shop' CPA, Tax Largie, Inc. is available to assist. Contact Us; We Can Help!
In a Bloomberg article credited to Jan-Henrik Foerster and Joost Akkermans “Credit Suisse Taken by Surprise in Five-Nation Tax Probe”, reminds us that it is a really good idea to report your Foreign Accounts. Here are some of the highlights of the article.
Credit Suisse Group AG and its home country of Switzerland were surprised by a tax evasion and money laundering investigation that spans five countries from Australia to the U.K. and potentially involves thousands of account holders.
Criminal investigations are also underway in France, Germany, the U.K. and Australia, and the roles of bank employees are part of the inquiries. Credit Suisse fell 1.2 percent to 14.90 francs in Swiss trading, the second-worst performance in the Bloomberg Europe Banks Index. (Ouch!)
In a statement Friday from Zurich, Credit Suisse said it has “implemented Dutch and French voluntary tax disclosure programs and exited non-compliant clients,” and has applied a withholding tax agreement with the U.K. since 2013. (Wow!)
Credit Suisse was fined $2.6 billion in 2014 after admitting it helped Americans cheat on their tax obligations, and conducting what then-U.S. Attorney-General Eric Holder called a “shamefully inadequate internal inquiry” into the wrongdoing. In Europe, Credit Suisse agreed in October to pay about 109.5 million euros ($117 million) to Italian authorities to resolve a probe into the bank’s use of insurance policies allegedly designed to help clients evade taxes, five years after paying 150 million euros to settle a tax evasion dispute with the German government.
The bank also agreed in December to pay a $2.48 billion civil penalty to resolve a U.S. investigation into its mortgage-backed business.
Credit Suisse isn’t alone. Eighty Swiss banks have entered into non-prosecution agreements with the Department of Justice in return for disclosing details on how tax evasion by their banking clients worked. UBS Group AG, Switzerland’s largest bank, turned over client names and paid $780 million in 2009 to settle its own dispute over tax evasion with the U.S. government.
“Taskforce agencies are working through their intelligence to determine the taxpayers in this group who have done the right thing, and those who have been concealing the true nature of their tax affairs,” Australia’s Minister for Revenue and Financial Services Kelly O’Dwyer said in a statement.
“The message from these investigations makes it clear that governments worldwide are shining a light on offshore tax evasion, and it’s only a matter of time before you’re in the spotlight.”
Folks, Tax Day is quickly approaching. Have you filed your income tax return, yet? No? No worries! You still have time.
"The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15 date. In 2017, April 15 falls on a Saturday, and this would usually move the filing deadline to the following Monday — April 17. However, Emancipation Day — a legal holiday in the District of Columbia — will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 18, 2017. Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation." (IRS) If you are unable to file your tax return by the deadline of April 18, 2017, you should ask your Tax Professional to file an extension for you, which will allow you more time to file. However, remember that an extension of time to file your tax return is not an extension of time to pay. Pay and as much as you can by the due date: April 18, 2017. As always, Tax Largie, Inc. is available to assist.
“Where’s My Refund?” That’s the question many of us are wondering, as the expected tax refund is needed sooner than later. Luckily the IRS notified us of the delay and gave us the approximate dates on when to expect our refunds.
“The IRS will begin to release EITC/ACTC refunds starting Feb. 15. However, the IRS cautions taxpayers that these refunds likely won’t arrive in bank accounts or debit cards until the week of February 27 -- if there are no processing issues with the tax return and the taxpayer chose direct deposit. This additional period is due to several factors, including banking and financial systems needing time to process deposits. Where's My Refund? on IRS.gov and the IRS2Go mobile app will be updated with projected deposit dates for early EITC /ACTC refund filers a few days after Feb. 15. Taxpayers will not see a refund date on Where's My Refund? or through their software packages until then. The IRS, tax preparers and tax software will not have additional information on refund dates, so Where’s My Refund? remains the best way to check the status of a refund.
Why Is My Refund Being Held? Beginning in 2017, if you claim the EITC or ACTC on your tax return, the IRS must hold your refund until Feb. 15. This new law requires the IRS to hold the entire refund — even the portion not associated with the EITC or ACTC. Like previous years, some tax refunds may be held if there are questions about the tax return or the IRS needs more information.
Will I Get My Refund on February 15, 2017? While the IRS will begin to issue EITC/ACTC refunds starting Feb. 15, you should not count on actually seeing your refund until the week of Feb. 27 -- if you chose direct deposit or a debit card and there are no processing issues with your tax return.
Why Does It Take So Long for The Funds to Show Up in My Account? It takes additional time for refunds to be processed after leaving the IRS, and for financial institutions to accept and deposit them to bank accounts and products like debit cards. Also many financial institutions do not process payments on weekends or holidays, which can affect when refunds reach taxpayers. For EITC and ACTC filers, the three-day holiday weekend involving President’s Day affects their refund timing.
How Do I Check The Status of My Refund? Where's My Refund on IRS.gov and the IRS2Go mobile app remains the best way to check the status of a refund. Where’s My Refund will be updated with projected deposit dates for early EITC and ACTC refund filers a few days after Feb. 15. Taxpayers will not see a refund date on Where's My Refund or through their software packages until then. The IRS, tax preparers and tax software will not have additional information on refund dates, so taxpayers should not contact or call them about refunds before the end of February.”
Tax Largie, Inc. remains available to assist businesses and individuals to prepare their income tax returns.
Now Accepting 2017 Income Tax Returns The widely anticipated day has arrived: Tax Season 2017! The IRS began accepting income tax returns today. Remember, most returns will experience delays, especially those with Earned Income Credit and Child Tax Credit. Overall, taxpayers have until April 18th, 2017 to be considered filed on time and escape penalties and interests.
Other Reminders Earned Income Credit The tax year 2017 maximum Earned Income Credit amount is $6,318 for taxpayers filing jointly who have 3 or more qualifying children, up from a total of $6,269 for tax year 2016. The revenue procedure has a table providing maximum credit amounts for other categories, income thresholds and phase-outs.
Healthcare Coverage For calendar year 2017, the dollar amount used to determine the penalty for not maintaining minimum essential health coverage is $695.
Education For tax year 2017, the adjusted gross income amount used by joint filers to determine the reduction in the Lifetime Learning Credit is $112,000, up from $111,000 for tax year 2016.
Foreign Income For tax year 2017, the foreign earned income exclusion is $102,100, up from $101,300 for tax year 2016.
Estates Estates of decedents who die during 2017 have a basic exclusion amount of $5,490,000, up from a total of $5,450,000 for estates of decedents who died in 2016.
Several changes have occurred between 2015 and 2016 tax year. With a new president; new administration; and promised changes to the tax code, we can expect more changes to occur. Strategic tax planning with your tax professional is an excellent way to help you optimize your tax filing experience each year.
TIP: What You Need to Know About Extension to File Tax Returns Counting today, we have 8 days before the IRS starts accepting tax returns. With that, I would like to clear up a few misconceptions for taxpayers who are planning on filing an extension. An extension gives you extra time to File your tax return. Yes! However, an extension does NOT give you extra time to pay any taxes due. Any taxes owed – even when you file an extension – will still be due by the due date. An extension can help reduce penalties, but any outstanding balance will still be charged a late payment penalty and interest.
Not everyone qualifies for an extension. For example, taxpayers who were approved for an Offer in Compromise are still required to file by the due date during their five-year probationary period. If you don't file by the due date, the IRS can revoke your offer-in-compromise and re-instate the original amount you owed. Likewise, contributions to a Traditional IRA and/or Roth IRA are due by the original April deadline.
“All CPA are certified accountants, but not all accountants are CPAs.” (unknown) A resourceful Certified Public Accountant (CPA) is more than just an accountant that does bookkeeping, accounting, payroll managing, tax services & planning, or someone you call only when you’re in ‘business trouble’. We are your business partner with an interest in your success by ensuring that you’re in compliance with applicable laws and business governance. Our services generally pays for itself, as the alternative could potentially be severely hazardous to a business’ going concern. Other services include:
Forensic Services – Are you losing money, but can’t seem to determine how, who, when, and where? Or, are you making a lot of money – but can never see it in the bank? A talented Forensic Accountant can assist you with the discovery of losses, insurance claims, investigations, etc. IRS Liens, Levies, Payment Plans, Seizures, Debt Reduction or Elimination, Marriages – Innocent Spouse (he or she had a debt you were not aware of…), Divorce Cases, etc. Yes, your experienced CPA could help you with resolving a multitude of issues that include assistance with divorce cases.
Other Services - In most cases, we can save you from losing your business; losing your home or valuable possessions; and help you avoid hefty penalties, fines, fess, and – in some cases – we can help you avoid imprisonment.
More often than not, CPA services are invaluable and/or pay for themselves.
On November 22, 2016, U.S. District Court Judge Amos Mazzant granted an Emergency Motion for Preliminary Injunction and thereby enjoined the Department of Labor from implementing and enforcing the Overtime Final Rule on December 1, 2016. The case was heard in the United States District Court, Eastern District of Texas, Sherman Division (State of Nevada ET AL v. United States Department of Labor ET AL No: 4:16-CV-00731). The rule updated the standard salary level and provided a method to keep the salary level current to better effectuate Congress’s intent to exempt bona fide white collar workers from overtime protections.
Since 1940, the Department’s regulations have generally required each of three tests to be met for the FLSA’s executive, administrative, and professional (EAP) exemption to apply: (1) the employee must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed (“salary basis test”); (2) the amount of salary paid must meet a minimum specified amount (“salary level test”); and (3) the employee’s job duties must primarily involve executive, administrative, or professional duties as defined by the regulations (“duties test”). The Department has always recognized that the salary level test works in tandem with the duties tests to identify bona fide EAP employees. The Department has updated the salary level requirements seven times since 1938. The Department strongly disagrees with the decision by the court, which has the effect of delaying a fair day’s pay for a long day’s work for millions of hardworking Americans. The Department’s Overtime Final Rule is the result of a comprehensive, inclusive rule-making process, and we remain confident in the legality of all aspects of the rule. We are currently considering all of our legal options. (DOL)
The new overtime rule takes effect on December 1, 2016. Employers, are you ready? Employees, are you aware?
According to the Department of Labor as it relates to the new overtime rule update, “The updates will impact 4.2 million workers who will either gain new overtime protections or get a raise to the new salary threshold.” Essentially, “The rule increases the salary threshold below which most white-collar, salaried workers are entitled to overtime from the current $455 per week (or $23,660 for a full-year worker) to $913 per week (or $47,476 for a full-year worker).” In other words, once your threshold is reached, you are entitled to overtime pay. Intricate calculations for commissions, bonuses (discretionary/non-discretionary) further complicate the changes for employers prompting employers to explore options most beneficial to them and their respective affected employees. Due to FLSA, compliance of this overtime rule is required for businesses with gross annual sales of $500,000 or more, or that are involved in interstate commerce. Business requirements are ever-changing and keeping up with the slew of changes can be challenging and taxing. Speak to your CPA today and ensure that your business relationship encompasses compliance with the new overtime rule.
The IRS announced a Special Relief program designed to help support Leave-Based Donation Programs to aid victims of Hurricane Matthew.
The IRS advised that, “Under these programs, employees may forgo their vacation, sick or personal leave in exchange for cash payments the employer makes, before Jan. 1, 2018, to charitable organizations providing relief for the victims of this disaster.” Therefore, if you are an eligible taxpayer, optimize your tax experience by notifying your Tax Professional of this tax benefit on your upcoming tax return. The IRS also advised employers and employees that are donating their vacation, sick, or personal leave to victims of Hurricane Matthew that, “…the donated leave will not be included in the income or wages of the employees.” Note, however, that employers will be allowed to deduct the cash payments as a business expenses. (IRS).
It’s a WIN for the victims; it’s a WIN for the employees; and it’s a WIN for the employers. With Thanksgiving in the air, this is a ‘Right on Time’ tax benefit for those affected.
As the impending tax season slowly emerges, be aware that the Internal Revenue Service (IRS) have a Directory of Federal Tax Return Preparers, along with Credentials and Select Qualifications. You can access this directory by visiting:
Anyone with a Preparer Tax Identification Number (PTIN) can prepare a tax return for a client. However, tax return preparers have differing levels of skills, education and expertise. This searchable directory is intended to help you with your choice by providing a listing of preparers in your area who currently hold professional credentials recognized by the IRS.
Also, you may use this Directory to check if your current Tax Professional is a listed professional, including their level of designation. It will help you get a peace of mind that your tax return is being prepared optimally for your benefit, without compromising your freedom or taking the risk of being hit with unnecessary fines, fees, penalties, and in some cases – imprisonment.
Tax Largie, Inc’s President/CEO is a listed professional. Your business or individual tax returns are in good hands with us.
As of March 2016, the IRS provided a list – per state – of the estimated number of individuals and potential TAX REFUND that remains unclaimed by individuals that simply did not file their 2012 income tax returns.
GREAT NEWS! Tax Largie, Inc. would be happy to assist you with filing your 2012 income tax returns and assist you with claiming, where applicable, your portion of the refund currently being held by the Internal Revenue Service (IRS).
The Internal Revenue Service (IRS) reminds employers and small businesses of the new January 31 filing deadline for Forms W-2 and may also hold some refunds until February 15.
Employers – W-2 Deadline
Currently The Protecting Americans from Tax Hikes (PATH) Act, enacted last December, includes a new requirement for employers. They are now required to file their copies of Form W-2 submitted by January 31. The new January 31 filing deadline also applies to certain Forms 1099-MISC reporting non-employee compensation such as payments to independent contractors. The January 31 deadline has long applied to employers furnishing copies of these forms to their employees and that date remains unchanged.
Previously In the past, employers typically had until the end of February, if filing on paper, or the end of March, if filing electronically, to submit their copies of these forms. In addition, there are changes in requesting an extension to file the Form W-2. Only one 30-day extension to file Form W-2 is available and this extension is not automatic. If an extension is necessary, a Form 8809 Application for Extension of Time to File Information Returns must be completed as soon as you know an extension is necessary, but by January 31.
Delayed Refunds The new law requires the IRS to hold the refund for any tax return claiming either the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) until February 15. By law, the IRS must hold the entire refund, not just the portion related to the EITC or ACTC.
"The American Institute of CPAs has installed Kimberly N. Ellison-Taylor, global accounting strategy director for Oracle America, as the new chairman of the board of directors, making her the AICPA’s first African American female chairperson.
“Being a CPA changed my life,” said Ellison-Taylor during her acceptance speech at the AICPA’s Fall Meeting of Council in Orlando, Florida, on Tuesday. “For many of you—particularly if you’re a first-generation CPA like me—it probably changed yours, as well.”
Ellison-Taylor, 46, talked about the importance of preparation, anticipation, accountability and “taking bold steps” to provide a brighter future for the accounting profession. She remembered how she was attracted to the profession as an 8-year-old student during a career day in third grade.
“It’s our collective responsibility to open up the world of possibilities for the next generation—to recruit, retain, and advance our future leaders—our managing partners, CFOs, deans, agency leaders, and executives of the AICPA and state societies,” she added. “If you have an opportunity, please share your lessons learned, successes and also failures with our next leaders.” Eric Hansen, chief operating officer of the accounting and advisory firm BKD, was elected vice chair, positioning him to succeed Ellison-Taylor in the volunteer post of chairman next year.
At Oracle, Ellison-Taylor supports the financial and professional services sectors. She has worked as the software company’s global practice team leader for health and human services, involved with cloud migration, fraud detection and prevention, customer experience and finance transformation initiatives. Before joining Oracle, Ellison-Taylor had leadership positions at the NASA Goddard Space Flight Center, Motorola, KPMG, and the Prince George’s County, Maryland, government. Ellison-Taylor has served on the AICPA board for four years, most recently as vice chairman. She was a member of the AICPA Business and Industry Executive Committee and has worked with the AICPA Finance and Audit Committees. She is a past chair of the Maryland Association of CPAs, and was recognized by Accounting Today as one of the Top 100 most influential people in the profession. She also serves as chapter president of Sigma Gamma Rho-Anne Arundel County, Md., a community service sorority. She is a lifetime member of the National Association of Black Accountants." (Michael Cohn)
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