Lee B

I am finishing up a 1040 return where my clients purchased a home in 2013 from 2 individuals, not married, via a contract. The payments are made 50/50 to the two individuals who also live in two different states. The ATX worksheet only gives you room to enter one name, address & SSN. What is the best way to handle this?

Yes, I have also had Coffee Roasters, a Bottled Water Service and Engineering Firm also qualify.

Yes, Construction of real property and substantial renovation of real property both qualify for the DPAD. You have segregate the qualifying and nonqualifying gross receipts and then you can allocate COGS, direct costs and indirect costs using one of the specified allocation methods to arrive at QPAI.

From US News.com By Trent Hamm Sept. 23, 2014 | 9:03 a.m. EDT One of the biggest benefits of the Internet is the huge amount of information we all have available at our fingertips. Yet the biggest challenge for many of us is making sense of all that information. There are many opportunities for learning, but the information is often spread out in various places and not presented in an organized way that makes learning easy. Thankfully, several organizations – both nonprofits and businesses – have jumped into this niche and have developed online courses that draw upon this vast wealth of available knowledge. These eight free websites allow you to take educational courses in the comfort of your home, expanding your knowledge and understanding of the world at your convenience. Coursera is one of the leading providers of MOOCs – massive open online courses. Coursera offers a wide selection of college courses on a variety of subjects and includes lectures taught by university professors, discussion forums and quizzes. Some Coursera courses provide certificates of completion to recognize that you passed the class. If you enjoy learning in a structured classroom-style environment and want to do this at home, Coursera is a great place to start. [search: Find the Best 529 College Savings Plan for You.] Duolingo is a tool for learning new languages such as Spanish, French, Italian and German and provides a lesson-based structure in which you gradually learn new words and grammar. The site integrates visual, audio and written learning, so you become comfortable with the new language as a whole. Using Duolingo feels like playing a game, but after completing the full track of a language, you’ll be able to carry on a basic conversation. Khan Academy is an organized series of mini lectures and interactive problems on a variety of topics including mathematics, history, science and more. The lectures are short and share a handful of information at a time, but build on each other as you progress. If you like the idea of learning about a topic in short bursts, Khan Academy is the right resource for you. iTunes U provides integrated video and audio learning right inside the iTunes program many people use to manage their music and audio devices. The tool offers online courses with full lectures, the ability to take notes on those lectures and assignments to continue learning outside of the lecture environment. iTunes U does the best job of integrating free online learning with the iPad and iPhone, so if you’re a user of those devices, take a look at what iTunes U has to offer. MIT OpenCourseWare is a treasure trove of course material from the Massachusetts Institute of Technology; it provides lectures, lecture notes, homework assignments, sample tests and many other materials from the actual courses at MIT. MIT OpenCourseWare stands out from the pack if you’re looking to learn more about science, computer and engineering topics, as MIT is a leading university for those subjects. [Read: How to Go Back to College for Free.] EdX is similar in presentation to Coursera in that it offers full online courses with teachers, discussion boards, quizzes, and so on, but it tends to focus on (and excel at) courses in math, the sciences and engineering. Much like Coursera, it has arrangements with a number of universities – from Harvard to the University of Hong Kong – to provide material. If you like the idea of a highly structured course environment and are looking for science, math, and engineering courses, take a serious look at EdX. Codecademy is a brilliant tool for learning the basics of computer programming. Codecademy teaches you how to write the code necessary to develop interactive websites using the most useful languages – HTML, CSS, JavaScript, jQuery, Python, Ruby, and PHP – and does it within the browser using interactive tools. If you’ve ever wanted to learn how to code, Codecademy is a wonderful place to start. Livemocha, like Duolingo, is a tool for learning foreign languages, but rather than offering interactive lessons, Livemocha pairs you up with speakers of other languages so you can teach each other your native language. When you invest time in teaching someone your language by having conversations and walking them through their grammatical challenges, someone else will invest that time in you. If the idea of conversing with native speakers in order to learn a new language sounds compelling, Livemocha is perfect for your needs . [Read: 9 Free Ways to Learn Something New Every Day.] These eight resources provide only a sample of the opportunities for free online learning available to anyone with a Web browser and an Internet connection. The only thing you need to succeed is a curious mind and a willingness to learn .

I believe this clarifies a recent thread about this topic: From the Journal of Accountancy: Dispositions of property get automatic accounting method change procedures September 19, 2014 The IRS on Thursday issued Rev. Proc. 2014-54, providing procedures for taxpayers to obtain automatic consent to accounting method changes involving dispositions of tangible depreciable property. The guidance outlines how taxpayers may obtain the IRS’s automatic consent to change to certain methods provided in recently finalized regulations (T.D. 9689, issued Aug. 14). The methods are provided under Regs. Sec. 1.168(i)-1 (general asset accounts); Regs. Sec. 1.168(i)-7 (accounting for modified accelerated cost recovery system (MACRS) property); and Regs. Sec. 1.168(i)-8 (dispositions of MACRS property). The revenue procedure issued Thursday revises procedures in the appendix of Rev. Proc. 2011-14 (which prescribes automatic consent procedures generally and for a wide range of specific methods), as the appendix was modified earlier this year by Rev. Proc. 2014-17. Specifically, it: Removes appendix Section 6.19 (lessor improvements abandoned at termination of lease) as obsolete; Provides that Section 6.29, regarding disposition of a building or structural component, does not apply to any demolition of a structure to which Sec. 280B (denying deductibility of demolition costs, losses, and amounts chargeable to capital account) and associated regulations apply; Allows changes regarding general asset accounts and partial dispositions of tangible depreciable assets, to be made under Regs. Secs. 1.168(i)-1 and 1.168(i)-8; Allows a late partial disposition election under Regs. Sec. 1.168(i)-8 to be treated as a change in method of accounting for a limited period; Provides additional changes from one permissible method of accounting for MACRS property to another; and Clarifies that appendix Section 10.11 (tangible property) does not apply to amounts paid or incurred for certain materials and supplies a taxpayer has elected to capitalize and depreciate. Rev. Proc. 2014-54 also adds new automatic changes to Rev. Proc. 2011-14 (as appendix Sections 6.38 through 6.40) for: Disposition of a building or structural component; Dispositions of tangible depreciable assets other than a building or its structural components; and Dispositions of tangible depreciable assets in a general asset account. Rev. Proc. 2014-54 is effective Sept. 18, 2014, with transitional rules for taxpayers with a previously filed Form 3115, Application for Change in Accounting Method, under Rev. Proc. 97-27 or 2014-17. —Paul Bonner ([email protected]) is a JofA senior editor

According to the speaker at a OSCPA seminar that I went to in January , the ongoing status of the 1099 Misc requirements with respect to landlords is unclear due to the way the various rules & regulations are tangled up. Basically he said that at first glance it appeared that the requirements were removed, but that a closer reading left real doubt. His said that he was having all of his landlord clients file 1099 Misc until such time as the situation became clearer.

From Accounting Today's Tax Fraud Blotter: Miami: Claude Arthur Verbal II, formerly of Raleigh, N.C., has been sentenced to 135 months in prison for tax fraud, health care fraud and money laundering in two separate cases. Verbal was also ordered to serve three years of supervised release following his prison term, to pay restitution of $4,078,584 to the IRS and $2,382,378 to the North Carolina Department of Health and Human Services. On April 9, Verbal pleaded guilty to one count of conspiracy to defraud the U.S., one count of aiding and assisting the preparation of false returns, one count of health care fraud and one count of money laundering. Verbal was the owner of Nothing But Taxes, a prep franchise with 10 branches throughout North Carolina from 2005 to at least 2012. He personally prepared false returns for clients of NBT and taught and encouraged his employees to do so as well. Verbal and NBT employees frequently offered clients a dramatically larger refund if the client agreed to make a cash payment to their preparer. These payments were over and above the flat fee that NBT charged every client whether or not the return was falsified. The most common falsifications at NBT involved dependents, Schedule C businesses, tip income, EITCs and education credits. Verbal and many of his employees facilitated the purchase and sale of false dependents at NBT by purchasing the names, dates of birth and Social Security numbers of individuals to use as false dependents on other clients’ returns. In November 2010, one of Verbal’s employees informed a U.S. probation officer of the fraudulent practices at NBT. The probation officer informed Verbal of this fraud and he denied knowledge of it, then took steps to keep the practice open and distance himself from the fraud. According to court documents, Verbal also owned Infinite Wellness Concepts, a Medicaid behavioral health provider contracted to provide group therapy, intensive in-home services and enhanced mental health and substance abuse services. Authorities claimed Verbal acquired at least $1 million in fraudulently obtained funds from the Medicaid program. Verbal used the schemes’ take to buy luxury cars, homes and jewelry. The money-laundering charge relates to the purchase of a $52,000 diamond ring with proceeds of health care fraud.

In July 2014, a three-judge panel from the D.C. Circuit Court ruled that people in the 36 states that use the federal health insurance exchange as part of the Affordable Care Act are ineligible for subsidized insurance. HuffPost's Ryan Grim and Jeffrey Young have more on that earlier decision here. Written by The Associated Press: The same July day the D.C. Circuit Court panel ruled on Halbig, a Virginia federal appeals panel ruled the opposite way on an identical case. The plaintiffs in the D.C. case requested the Supreme Court to take on the case in August. According to the Wall Street Journal's Brent Kendall, oral arguments will be heard in December 2014. The federal appeals court in Washington threw out a ruling Thursday that called into question the subsidies that help millions of low- and middle-income people afford their premiums under the president's health care law. The U.S. Circuit Court of Appeals for the District of Columbia granted an Obama administration request to have its full complement of judges re-hear a challenge to regulations that allow health insurance tax credits under the Affordable Care Act for consumers in all 50 states.

I copied this from the Health Insurance Exchange : "They promised they would be coming and now they have. On Aug. 28, the Internal Revenue Service issued draft instructions for Forms 1094-C and 1095-C and Forms 1094-B and 1095-B, which I provided in my July 31 entry. These forms were provided in draft format and they are used to satisfy Affordable Care Act’s “information reporting requirements.” We also got draft instructions for Form 1095-A that relates to the statement about the Health Insurance Exchange Marketplace. The IRS has indicated that it will finalize the forms and instructions in 2014. On top of that, they issued some FAQs that address the reporting requirements. NOTE: Reporting for the 2015 year is due in 2016, so the instructions and guidance should help employers and plan sponsors put together a framework to following in 2015 so that they can properly report. Also see: IRS releases draft instructions for ACA reporting forms As a starting point, the FAQs provide that some short-term penalty relief will be available for incomplete or incorrect information returns that are filed (or employee statements provided to employees) in 2016 for coverage offered, or not offered, in 2015. Under this relief, the IRS will not impose penalties on employers that can demonstrate that they made good faith efforts to comply with the information reporting requirements. This relief applies to returns and statements filed and furnished in 2016 to report offers of coverage in 2015 for incorrect or incomplete information reported on the return or statement, but the relief is not available if you fail to file. You have to show a good faith effort to comply so you cannot simply not file anything an expect relief. Also see: CEOs concerned about ACA incentive rules With respect to the instructions themselves, to say that they are lengthy is an understatement. Employers should read them in detail to understand their obligations. However, some key provisions that help in compliance include: Clarification that employers must file Forms 1095-C and 1094-C with the IRS, and provide a copy of Form 1095-C to employees. A statement that, as noted above, forms 1095-C and 1094-C information returns are not required for 2014. Actual filings are not required until 2016 for the 2015 calendar year but employers may voluntarily file these forms in 2015 for 2014. If by chance an employer does choose to voluntarily files in 2015 for the 2014 year, penalties for the employer mandate payments will not be assessed for 2014. Establishment of specific dues dates for Forms 1095-C and 1094-C information returns. They must be filed by February 28 (for paper filings), or March 31 (for electronic filings) of the year following the calendar year to which the return relates. Clarification that a Form 1094-C must be attached to any Forms 1095-C filed by an employer. Each employer must file one 1094-C that reports aggregate employer-level data for all the employer’s full-time employees, which is referred to as the “authoritative transmittal” (and denoted accordingly on Line 19 of the Form 1094-C). Only one authoritative transmittal may be filed for each employer. Employers also must provide a Form 1095-C to each full-time employee by Jan. 31 of the year after the year to which the form relates (so that would be Jan. 31, 2016 for the 2015 reporting year). Incidentally, employee statements must be furnished to individuals in paper format by mail, unless the individual affirmatively consents to receiving the statement electronically. As with the forms, the instructions are in draft format and subject to change and finalization. However, between the draft forms and the draft instructions, employers should now be able to ascertain generally what is required of them in reporting. Even though the mandatory reporting requirement does not completely kick in until after 2015, employers should spend some time reviewing these requirements with their plan professionals, preferably sooner rather than later, to get a sense of what data they will have to collect and how who has responsibility for making sure the information is accurate "

The only court decisions that the IRS must follow are Supreme Court decisions and Circuit Court of Appeals decisions in the applicable circuit. It been this way for a long long time. A little reading of U S Tax History may be in order.

I filed a C Corp with a loss about 55 days late last year and there was no penalty.

I have copied several paragraphs from the site, CBC News "Not a security breach, says Google The leak does not appear to have been the result of a Gmail security vulnerability, and not all of the leaked email addresses were Gmail addresses — although the bulk were. "It's important to note that in this case and in others, the leaked usernames and passwords were not the result of a breach of Google systems," Google said in its blog post. "Often, these credentials are obtained through a combination of other sources. For instance, if you reuse the same username and password across websites, and one of those websites gets hacked, your credentials could be used to log into the others. Or attackers can use malware or phishing schemes to capture login credentials." Software specialist Troy Hunt tweeted that about 123,000 of the approximately 4.78 million leaked addresses were part of the Russian email service Yandex. Addresses from the Russian-based service Mail.ru also appeared on the list." I got the definite impression that the gmail addresses and passwords were all obtained from other websites where users used their gmail account and gmail password as the user name and password for other websites, something that I never do.

A number of the members will not click on a link.

I tend to be leery of the type of presenters that make dire alarmist predictions. As a practical matter the IRS doesn't even have the manpower to even handle something like this.

I still have a handful of entity returns I'm working on.

I would capitalize the 2012 interest.

Sorry, I didn't realize this was already posted.

Fraom nShare9 FROM TAX PRO TODAY August 29, 2014 By Jeff Stimpson "Some of our favorite recent tax fraud cases. Fredericksburg, Va.: Preparer Daniel L. Jones, 56, has been sentenced to 37 months in prison for aiding in the preparation of fraudulent returns for his clients and making a false statement to the IRS. According to court documents, for many years Jones ran the tax prep service Tax Doctor Plus where, to increase refunds for clients, he regularly prepared and e-filed returns that contained false entries and items. These included improperly splitting married couples into incorrect filings statuses to place both taxpayers into lower tax brackets and create EITC opportunities, filing false Schedule Cs with enough false deductions to qualify the client for the EITC, submitting false Schedule A expenses and education credits and falsifying income with false W-2s to qualify clients for the maximum amount of government credits, such as the EITC, various education credits and the Making Work Pay Credit. In addition, to represent clients before the IRS, Jones submitted Forms 2848 on which he falsely claimed he was a CPA. Jones agreed that the total tax loss from 2009 to 2012 was some $598,000, based on approximately 630 returns containing false education credits. Little Rock, Ark.: Preparer Christopher T. Craig, 47, formerly of Little Rock and now of Atlanta, has waived indictment and pled guilty to an indictment charging him with two counts of aiding and assisting in the preparation of fraudulent income tax returns. Craig admitted that on April 30, 2010, and March 1, 2012, he prepared false employment returns (Form 941) on behalf of other taxpayers. Unknown to the taxpayers, Craig filed the returns in a way that reduced the amount of federal withholdings. He then collected payments from the taxpayers for the correct amount of employment taxes but diverted to himself the difference between the correct amount owed and the amount paid to the IRS. For these two returns, Craig diverted $43,280.50. He admitted that the total loss to the government was $1,092,177.79. Craig faces a maximum penalty of not more than three years in prison on each of the two counts or a fine of up to $500,000 or both. Sentencing has not been set. St. Charles, Mo.: A federal court has permanently barred William Naes from preparing federal returns for others. The government alleged that Naes prepared returns that fraudulently claimed deductions for clients, including bogus charitable contributions and unreimbursed employee business expenses. According to the complaint, he also fabricated business expenses on Schedule Cs, concocted a fake business for at least one client, and failed to properly identify himself as the paid preparer on many of the returns he prepared. Claymont, Del.: Preparer Dawn Chamberlain, 36, has been sentenced to 51 months in prison and ordered to pay full restitution after pleading guilty late last year (Accounting Today) to false claims conspiracy and mail fraud. From 2009 through 2012, Chamberlain prepared nearly 450 fraudulent federal income tax returns for clients she solicited in Delaware and elsewhere. In the returns, she claimed an average of some $3,500 in fake credits, often the American Opportunity Tax Credit and the EITC for ineligible clients. Her actions are estimated to have caused at least $1.5 million in losses to the U.S. Treasury. Chamberlain also stole from clients, keeping a portion of their refunds without their consent, and used clients’ names, dates of birth and Social Security numbers to file more than $210,000 in false and fraudulent New York State income tax returns. (Her clients did not live or work in New York nor did she share any of the New York refunds with her clients.) Chicago: The U.S. has filed to bar preparer Laurie G. Helfer, a.k.a. Laurie G. Powell, individually and through her businesses Laurie’s Freelance & Tax Preparation Services and Tax Lady Laurie Inc., from preparing federal returns for others. The complaint alleges that Helfer prepares and files amended returns for individuals claiming refunds to which they are not entitled. According to the complaint, she prepared hundreds of amended returns for clients, and the tax loss could exceed $3 million. According to the civil injunction complaint, Helfer promises clients that she can obtain refunds by amending their returns from prior years. To do this, she allegedly fabricates expenses from businesses that do not exist, the expenses offsetting clients’ income from prior years and illegally generating a refund. To dodge the IRS, Helfer stopped signing the returns she prepares and also frequently changes locations in which she prepares returns, including various Chicago-area hotel rooms, the complaint alleges. Jackson, Mo.: Preparer Cynthia Raymond, who pleaded guilty last year to filing false income tax returns and aggravated ID theft, now reportedly faces allegations that she falsified documents to obtain a lighter sentence. According to published reports, Raymond filed about 98 false returns under 36 clients’ names without their knowledge, claiming excessive refunds and diverting some of the money into her personal bank account. Sentencing in the case has reportedly been delayed several times. In March, Raymond’s then-attorney asked that the case be continued to this month so Raymond could undergo treatment for medical issues, according to reports that added that federal prosecutors have filed a motion to potentially stiffen Raymond’s sentence after she allegedly filed false documents seeking probation, restitution and community service instead of prison time. Raymond reportedly had her attorney submit correspondence purported to be from two doctors, one treating her for a back problem and the other for ovarian cancer. The federal motion lists 11 instances in which Raymond claimed to have varied health problems, including eight types of cancer, a kidney transplant and a miscarriage, according to news outlets. Federal prosecutors reportedly claim that one doctor denied writing such correspondence and a nurse for the other doctor did not recognize Raymond’s name and found no record of Raymond in the hospital’s computer system. Sentencing had been set for earlier this month, but prosecutors reportedly requested a continuance to allow time to investigate Raymond's claims concerning her medical history. The sentencing memorandum states that Raymond’s behavior stemmed in part from circumstances surrounding her marriage to a man who physically and emotionally abused her, reports said, adding that according to the memorandum, Raymond needs to be free to care for her daughter and young grandson and to undergo medical treatment." Creative Tax Return Preparation is alive and flourishing.

NEW YORK (AP) — Home Depot may be the latest retailer to suffer a credit card data breach. The Atlanta-based home improvement retailer told The Associated Press Tuesday that it's looking into "unusual activity" and that it's working with both banks and law enforcement. "Protecting our customers' information is something we take extremely seriously, and we are aggressively gathering facts at this point while working to protect customers," said Paula Drake, a spokeswoman at Home Depot, declining to elaborate. She noted that if the retailer confirms that a breach occurred, it will notify customers immediately. Shares of Home Depot Inc. fell 2 percent to $90.91 in late trading. Many retailers have had security walls broken in recent months, including Target, grocery store chain Supervalu, P.F. Chang's and the thrift store operations of Goodwill. The rash of breaches has pushed retailers, banks and card companies to increase security by speeding the adoption of microchips into U.S. credit and debit cards. The possible data breach at Home Depot was first reported by Brian Krebs of Krebs on Security, a website that focuses on cybersecurity. Krebs said multiple banks reported "evidence that Home Depot stores may be the source of a massive new batch of stolen credit and debit cards." The Krebs report says that the responsible party may be the same group of Russian and Ukrainian hackers suspected in last year's massive breach at Target Corp. Target, based in Minneapolis, has been overhauling its security department and systems and is accelerating its $100 million plan to roll out chip-based credit card technology in all of its nearly 1,800 stores. In its massive data breach, 40 million credit and debit card accounts were compromised and hackers stole personal information from as many as 70 million customers. The breach hurt profits, sales and its reputation with shoppers. At Supervalu, the data breach may have impacted as many as 200 of its grocery and liquor stores and potentially affected retail chains recently sold by the company in two dozen states. The breach occurred between June 22 and July 17, according to Supervalu. Restaurant operator P.F. Chang's confirmed in June that data from credit and debit cards used at its restaurants was stolen.

Article from CPA Insider "A false sense of security can lead a client (and his or her adviser) to make mistakes. September 2, 2014 by Patricia M. Annino, J.D. The American Taxpayer Relief Act of 2012 (ATRA), P.L. 112-240, changed the game in estate planning by significantly increasing the amount of wealth that a taxpayer may pass free of federal gift and estate tax to beneficiaries. Many advisers and clients who are under ATRA’s $5.34 million exemption (inflation-adjusted for 2014) believe their past planning is sufficient, that estate taxes are no longer relevant as part of their planning, and no further action is required. This false sense of security can lead a client (and his or her adviser) to make several mistakes. This article examines three of them. 1. Mistake: Ignoring the impact of the state estate tax I recently had a telephone conversation with a very angry client whose mother had recently died. Her mother’s net worth was under the federal exemption, and I told her that the Massachusetts estate tax was estimated to be $160,000. I wanted her to reserve the cash now to pay the tax instead of investing it. All the publicity about the increased federal exemption had led the daughter (and many Americans) to believe that estate taxes were no longer relevant. I explained to her that her mother had been very aware of the Massachusetts estate tax and did not want to gift any of her assets to reduce it, as she had begun her planning when her estate would have been subject to a much more significant federal estate tax. Many states have an estate tax, and the rates in some rise as high as 20%. Fewer people paid attention to state taxes back when the federal estate tax exemption was much lower. Now that the federal estate tax is out of play for some of them, clients need to revisit their planning for state estate taxes. This is especially true for clients who have real estate or tangible personal property located in more than one state. That’s because the estate may be subject to state estate tax in several jurisdictions and there may be a dispute as to which state the decedent was domiciled in. It is important to review the plans of those clients and consider what options exist now. 2. Mistake: Blind reliance on “portability” For federal estate tax purposes, the gift and estate tax exemption is now portable, meaning that if one spouse does not fully use his or her exemption during his or her lifetime, the surviving spouse can take advantage of it later. While clients and advisers may rely on portability as a default strategy, other considerations should be taken into account. Portability does not include an inflation-adjustment factor for the first spouse to die’s exemption. (This is different from a credit shelter trust where the funded assets and their appreciation will bypass estate tax at the death of the surviving spouse.) Portability is federal and is not recognized at the state estate tax level. Portability is an important planning strategy, but it should not be used as the absolute strategy. All factors should be considered and reviewed on an ongoing basis before assuming it is the “right” answer. 3. Mistake: Failing to understand that the cost of long-term care may cause more significant erosion to family wealth than estate or income taxes Families whose assets are under the exemption threshold and no longer have to plan to avoid or reduce the estate tax should still be concerned about the erosion of the family’s wealth. With an aging population that is living longer and needing additional assistance with custodial care, the key goals of estate planning could very well shift. Instead of focusing on how they can help clients protect their accumulated wealth from taxation, CPA planners may concentrate on helping clients protect their accumulated wealth from the escalating cost of health care. While the focus may change, the need for financial planning will be just as critical. The CPA, as a trusted adviser, is well-positioned to start that vital conversation and keep reviewing it as the client’s situation changes." I know my state of Oregon and also I believe Minnesota only have a $ 1,000,000 exemption. Oregon ' s rate is 10 %, so it doesn't take that large of an estate in Oregon before tax is due.

My main service is monthly writeup plus payroll processing. I provide monthly financial statements to these clients. Technically, they are "internal use" statements. Frequently, my clients give copies to their bank who have always accepted them without question or comment. Once in those 22 years, I had a client who was a subsidiary of a Swedish Corporation who needed a Reviewed Statement, for which I arranged for a nearby local CPA Firm to do the Review. As a practical matter, all the lenders in my area seem to be very aware that external use Financial Statements are very expensive and beyond the means of most small businesses.

One my clients received one of these calls today. Scam Phone Calls Continue; IRS Identifies Five Easy Ways to Spot Suspicious Calls Español IR-2014-84, Aug. 28, 2014 WASHINGTON — The Internal Revenue Service issued a consumer alert today providing taxpayers with additional tips to protect themselves from telephone scam artists calling and pretending to be with the IRS. These callers may demand money or may say you have a refund due and try to trick you into sharing private information. These con artists can sound convincing when they call. They may know a lot about you, and they usually alter the caller ID to make it look like the IRS is calling. They use fake names and bogus IRS identification badge numbers. If you don’t answer, they often leave an “urgent” callback request. “These telephone scams are being seen in every part of the country, and we urge people not to be deceived by these threatening phone calls,” IRS Commissioner John Koskinen said. “We have formal processes in place for people with tax issues. The IRS respects taxpayer rights, and these angry, shake-down calls are not how we do business.” The IRS reminds people that they can know pretty easily when a supposed IRS caller is a fake. Here are five things the scammers often do but the IRS will not do. Any one of these five things is a tell-tale sign of a scam. The IRS will never: Call you about taxes you owe without first mailing you an official notice. Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe. Require you to use a specific payment method for your taxes, such as a prepaid debit card. Ask for credit or debit card numbers over the phone. Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying. If you get a phone call from someone claiming to be from the IRS and asking for money, here’s what you should do: If you know you owe taxes or think you might owe, call the IRS at 1.800.829.1040. The IRS workers can help you with a payment issue. If you know you don’t owe taxes or have no reason to believe that you do, report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1.800.366.4484 or at www.tigta.gov. If you’ve been targeted by this scam, also contact the Federal Trade Commission and use their “FTC Complaint Assistant” at FTC.gov. Please add "IRS Telephone Scam" to the comments of your complaint. Remember, too, the IRS does not use unsolicited email, text messages or any social media to discuss your personal tax issue. For more information on reporting tax scams, go to www.irs.gov and type “scam” in the search box. Additional information about tax scams are available on IRS social media sites, including YouTube and Tumblr where people can search “scam” to find all the scam-related posts. Follow the IRS on New Media Subscribe to IRS Newswire Page Last Reviewed or Updated: 29-Aug-2014 The IRS says that they have now received 90,000 complaints about this scam.

areDoes anyone Does anyone remember about 15 years ago American Express tried to move into accounting by buying up local accounting firms and as this article mentions HRB has tried this before unsuccessfully ? By Michael Cohn August 28, 2014 H&R Block and Liberty Tax have been expanding from traditional tax preparation services into other areas such as bookkeeping as they reach out to service small business clients year-round, giving traditional accountants some extra competition. On Tuesday, Liberty announced a bookkeeping service built around the cloud-based accounting software Kashoo. The new bookkeeping service, dubbed Liberty Accounting, is intended to help Liberty Tax’s 4,400 franchisees expand beyond tax season and provide additional services besides tax prep and filing. The number one tax prep chain, H&R Block, recently announced plans of its own to attract CPAs and other accountants into selling their practices to Block or becoming franchisees (see H&R Block Reaches out to Attract Accounting Firms). In conjunction with that effort, Block also said it would start offering bookkeeping and payroll services to small businesses through cloud technology. Competing tax chains such as Jackson Hewitt and TaxSlayer are still sticking to their core tax prep services, but if they see significant growth from Block and Liberty, they could be induced to change their minds. This isn’t entirely a new trend. Individual franchisees for Block have already offered services such as bookkeeping and payroll in the past. Another franchiser known as BookKeeping Express offers bookkeeping services to small businesses through its franchisees. Block made a major move into the accounting field in 1999 with RSM McGladrey, operating what it called an alternative practice structure in conjunction with the CPA firm McGladrey & Pullen before selling the business back to McGladrey in 2011. Block has tried other financial businesses in the past, such as the ill-fated Option One subprime mortgage business that it was forced to sell at a heavy loss in 2007. In this case, Block does not appear to be making such a heavy bet and is mainly out to attract small CPA firms whose owners are looking to retire or planning for an eventual exit. If the idea catches on, small accounting practices could find themselves competing against Block, Liberty and perhaps other chains for their small business clients and will need to diversify further by adding extra services to avoid being lumped in with the franchises. Do you think H&R Block and Liberty Tax will provide serious competition to traditional accountants in the small business market ?

There is risk in everything you do. Two years ago I had a very close call with a red light runner who was busy talking on their cell phone. I view this as equivalent to the doctor who is practicing defensive medicine by ordering every medical test he can think of. I am aware of these issues, but I chose not to incorporate them into my agreements.

Exactly, I just leave my preparer information on all my returns business, payroll and personal.