Attention businesses!  Stay ahead of monthly federal tax and reporting deadlines via our at-a-glance online calendar. Visit our Resources page, then click on the Federal Tax Calendar link.

What constitutes a 100% tax deduction for a tax-free meal versus a 50% tax deduction as an entertainment designation when providing meals to your employees for office meetings?  Here are some tips to help you maximize your tax deductions for required attendance meetings:

The IRS has released its annual data book providing statistical data on its fiscal year (FY) 2012 and enforcement activities.  The data provides a map of what the IRS is focusing their resources on. 

We’ve pulled some interesting facts for individual, business, and other enforcement activities. Here we look at other interesting facts relating to IRS filing and enforcement activities:

The IRS has released its annual data book providing statistical data on its fiscal year (FY) 2012 and enforcement activities.  The data provides a map of what the IRS is focusing their resources on. 

In our 3-part series, we’ve pulled some interesting facts for individual, business, and other enforcement activities. Part 2 looks at where the IRS is focusing its resources on business returns and they compare to the prior year:

Region 10 Small Business Resource Center (SBRC) and Dalby, Wendland & Co., P.C. (DWC) are partnering to provide QuickBooks classes for the tri-county area.  The classes will be offered in Montrose and Delta throughout May and June.  Details are as follows:

The IRS has released its annual data book providing statistical data on its fiscal year (FY) 2012 activities.  The data provides a map of what the IRS is focusing their resources on. 

In our 3-part series, we’ve pulled some interesting facts for individual and business filings, as well as other enforcement activities. 

Read on here to preview where the IRS is focusing its resources on individual returns and how they compare to the prior year...

An employer sponsored 401(k) plan is a great tool to help employees save for the future, but it is important to understand your plan, and play an active role in monitoring your benefits to make sure you achieve your retirement goals.

The first step towards utilizing your 401(k) plan is understanding the key provisions of the plan and how it is managed. Once you have enrolled in the plan, your employer is required to provide you a copy of the Summary Plan Description (SPD), within 90 days. You should read through the SPD to gain an understanding of the main provisions of the plan. If you are unsure about any of the features in your plan, ask your plan manager right away.

Sarah Menge, CPA
Audit, Grand Junction Office

    

 

So, the deadline for filing your 2012 tax return is fast approaching and you are beginning to feel overwhelmed with the pile of tax documents and receipts sitting on the dining room table. You start to wonder if you will even meet the April 15th deadline. The good news is you are not alone. The IRS says between 25% and 30% of all U.S. taxpayers wait until the last two weeks before the deadline to file their personal income tax returns (or file for an extension). Here are several last minute tax tips that will hopefully make your tax preparation experience much more enjoyable: 

Chris West, CPA
Grand Junction Office

 

Businesses have for years attempted to save on payroll taxes by classifying employees as independent contractors.  However, the IRS is aware of this and has recently rolled out a new initiative to identify and correct misclassification of employees.  In those instances where the IRS is successful in “reclassifying” independent contractors as employees, the bill for the employer is substantial: employers have to pay both the employer and employee payroll taxes as well as penalties and interest.

 

The IRS estimates that one in seven U.S. employers is guilty of misclassifying some of its employees, resulting in a loss of more than $4.1 billion a year in tax revenues. 

Here we wrap up our three-part series of important information for those just now contemplating 2013 taxes:

Some Things Stay the Same: These Breaks Were Restored

The tax breaks listed below expired at the end of 2011, but the fiscal cliff legislation retroactively restored them for 2012 tax returns (filed in 2013):

Deduction for Higher Education Tuition - This write-off can be as much as $4,000 or $2,000 for higher-income folks.

Option to Deduct State and Local Sales Taxes - If you paid little or no state income tax in 2012, you have the option of instead claiming an itemized deduction for general state and local sales taxes. The deduction is claimed on Schedule A of Form 1040.

 

Just starting your taxes?  Read on for Part 2 in our series of important information that may affect your filing outcomes:

 

Special Drill If You Did a 2010 Roth Conversion:

If you were among the many who converted a traditional IRA into a Roth account in 2010, the conversion was treated as a taxable liquidation of your traditional IRA followed by a contribution to the Roth account.

This week we are focusing on those who are just now starting this year's taxes.  In our series of three parts, we highlight some important information you may need to know.

Part 1

The Due Date:

Monday April 15 is the filing deadline for your 2012 Form 1040. Last year, the deadline was Tuesday April 17 because April 15 was a Sunday and Monday April 16 was Emancipation Day, a District of Columbia holiday that postponed the filing deadline for the whole nation.

 

It's okay if your return won't be ready by April 15. You can extend the filing deadline all the way out to October 15 by submitting an extension request to the IRS, using Form 4868, on or before April 15. Your request will be automatically approved.

 

Remember: An extension to file is not an extension to pay. You should pay whatever remaining federal income tax you owe for 2012 with the extension request.

In an effort to help close the "tax gap," the IRS has launched a new compliance program targeting the underreporting of income by business taxpayers that receive Form 1099-K information returns from credit card companies and third-party transaction networks.

The IRS will notify certain taxpayers who may have underreported their gross receipts be sending letters and notices. If your business receives a Form 1099-K because it accepts payment cards from customers, you may receive one of these letters.

The IRS has extended the time employers who want to claim the work opportunity tax credit (WOTC) have to file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit (Notice 2013-14).

Under the extension, employers who hire a member of a targeted group on or after January 1, 2012, and up to March 31, 2013, will be considered to have timely filed Form 8850 if it is filed with the designated local agency (a state employment security agency established under 29 U.S.C. §§49-49n) by April 29, 2013.

For additional information, contact your local Dalby Wendland tax professional.



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U.S. Citizenship and Immigration Services (USCIS) has issued a long-awaited revision of Form I-9, Employment Eligibility Verification.  This new form has grown from one to two pages, while the instructions have expanded from four to seven pages.  The form has a revision date of March 8, 2013, and an expiration date of March 31, 2016, and is available on the APA website at http://info.americanpayroll.org/pdfs/fpi/13c08-fi-9.pdf.

As an audit supervisor at Dalby, Wendland & Co., I have seen several instances where the importance and usefulness of accrual accounting in monitoring business performance and making business decisions is not fully understood.  We are all familiar with the old saying, “Hindsight is 20/20.”  This saying holds true when only monitoring your business on a cash basis of accounting since cash basis methods of accounting generally recognize transactions only when cash is exchanged, which tends to be at the end of the transaction cycle.  Read on for the benefits of accrual accounting.

 

Nate Fyock, CPA

Recently our tax professionals outlined some of the new health care legislation for this year, however, there is more to come with the following additional changes taking effect in the months and years after December 31, 2013.  Keep in mind these new requirements are a work in progress. For example, some of the rules in PPACA and HCERA have been repealed and the effective date of other rules has been modified (i.e., deferred, by IRS).

The IRS receives thousands of reports every year from taxpayers who receive emails out-of-the-blue claiming to be from the IRS. Scammers use the IRS name or logo to make the message appear authentic so you will respond to it. In reality, it’s a scam known as “phishing,” attempting to trick you into revealing your personal and financial information. The criminals then use this information to commit identity theft or steal your money.

Continue reading for key information on what to do if you think you are being "phished" and resources in the case you fall victim to scammers.

Congress has enacted legislation that overhauls the U.S. health care system and affects nearly all taxpayers, many employers, and many elements of the health care industry (The Patient Protection and Affordable Care Act (PPACA) P.L. 111-148, and the Health Care and Education Reconciliation Act of 2010 (HCERA) P.L. 111-152). Some go into effect this year, and still others will be in place in 2014 and 2018. 

Following is a synopsis of tax changes we’ve compiled for your advantage for years beginning after December 31, 2012, regarding health care legislation. Keep in mind these new requirements are a work in progress. For example, some of the rules in PPACA and HCERA have been repealed and the effective date of other rules has been modified (i.e., deferred, by IRS).

Surtax on unearned income of higher-income individuals. An unearned income Medicare contribution tax is imposed on individuals, estates, and trusts.  For an individual, the surtax is 3.8% of the lesser of either (1) net investment...

By Jessica Miracle, Senior Auditor

Here in the western Colorado we love our nonprofit organizations.  Nonetheless, those involved with nonprofits should understand how a nonprofit could get into trouble with the attorney general’s office and Internal Revenue Service.  Here is a list of common no-noes to watch out for:

Fail to adopt or follow policies and procedures.  Make sure you adopt policies and more importantly, follow those policies.  Include policies on conflict of interest, whistle blower, documents and documents destruction, amounts allowed for entertainment, and why and what is appropriate.  Make sure you conduct regular board meetings and take minutes. 

Fail to produce documents when requested by the public.  As a nonprofit organization, your Form 990 is subject to public review, and there...

Rolling over a company retirement plan distribution into an IRA is usually a good idea. It allows you to defer taxes on the rolled-over balance, and the future income earned on that balance, for as long the money stays in the IRA. However the IRA rollover strategy is not always a no-brainer, as one taxpayer discovered in a rollover horror story that could have been prevented with tax-smart advance planning.

Read this article from our Dalby, Wendland newsletter to find out more. Sign up for our bi-weekly newsletter here.

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According to the Journal of Accountancy, the IRS has issued the annual update of special per diem rates for use in verifying certain business expenses taxpayers incur when traveling away from home. 

The rates in the notice are effective for per diem allowances paid to any employee on or after Oct. 1, 2012, for travel away from home on or after that date.

Click here for the full article.

Please contact your DWC advisor for more information.

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Our experience and expertise in auditing, accounting, and taxation provides you with business strategies that work. 

We match our skills with your needs.

Many of our professionals have one or two areas in which they have expertise and special designation in business valuation, which allows us to provide services beyond traditional tax and audit services such as:

*  Bankruptcy *  Buy-sell agreements *  Charitable Gift Planning *  Divorce *  Gift and Estate Tax Planning *  Mergers and Acquisitions

Call us today for more information.

...

Dalby, Wendland & CO announces Michelle Meagher and Denise Distel have passed Intuits’ QuickBooks ProAdvisor Advanced Certification coursework to become Advanced Certified QuickBooks ProAdvisors. The QuickBooks Advanced Certification Program expands the expertise of ProAdvisors who already have extensive knowledge in QuickBooks. The ProAdvisor certification accredits them as QuickBooks experts.



To gain access to the exam to become Advanced ProAdvisors, Meagher and Distel completed the three most current version years of QuickBooks Certification and will complete annual update courses to maintain ongoing knowledge in the latest version of QuickBooks.



Dalby, Wendland is a Diamond Level Member with Intuit Software, which enables the firm to pass along software discounts of 35% to clients.



Dalby, Wendland has QuickBooks ProAdvisors in all of the firm’s locations.  Tracy Barner, CPA, EA, Jennifer Bullock, Janna Burk, and Rita Coder are QuickBooks ProAdvisors in the Aspen,...

The tax law imposes strict requirement for deducting charitable gifts properly. The rules are especially tough when you donate appreciated property. If you don’t observe all the rules, your deduction may be reduced or even eliminated.

Read the full article in the Dalby, Wendland newsletter here.

To receive the latest news, tips, and tax alerts, visit www.dalbycpa.com and click on the newsletter icon.

Although tax planning will present a few challenges this year, there are also many opportunities for taxpayers to be aware of.  

Dalby, Wendland will present two educational seminars in September. One seminar will be held in Glenwood Springs and one will be held in Grand Junction.

Sign up for our blog, or follow us on Facebook to receive event information.   

Here is an article from our Dalby, Wendland newsletter that gives eight ways to improve and protect your retirement.

You can receive our biweekly newsletter via email by signing up here.

A wise person once said, “The two things you can always count on are death and taxes.” However, when it comes to taxes, recent history has revealed that although you can rely on the fact there will be taxes, you almost certainly cannot rely on what the rules and rates will be for purposes of calculating the tax.

The U.S. House of Representatives has approved a bill to extend current 2012 tax rates for another year for all U.S. taxpayers. However, the U.S. Senate has already signaled it will not even bring such legislation up for a vote. This game has been played by the U.S. Congress throughout the spring and summer of 2012 and no real certainty appears to be on the horizon until the general election is completed this November.

Therefore, there will be some significant potential consequences on the horizon if Congress allows certain existing tax laws to expire on January 1, 2013.  With only a few more months left to plan, it is time for taxpayers and their advisers to be diligent with the tax planning...

With a presidential election coming up in November and continued uncertainty that surrounds tax-related issues, you can expect more change in the future.

We encourage clients to be proactive and here are four things to watch for as we head into the end of the year.               

·         The election could bring significant tax changes so we encourage clients to take advantage of the current tax rates now as they are scheduled to increase in 2013.

·         It might be advantageous to convert to a Roth IRA now.

·         Clients with net investment income could avoid the 3.8 Medicare Surtax that will be in effect in 2013.

·         One of the most significant evens of the year is the end of the $5.12 million gifting option. This is an opportunity for high income individuals to meaningfully reduce their gift and estate tax costs.

Timing is important in implementing tax strategy, so call your DWC tax advisor now.

Tax increases scheduled to go into effect in 2013 make 2012 tax planning imperative. The following taxes may be impacted:

·         The Bush Administration tax cuts are set to expire, but a new 3.8 percent surtax on investment income and a possible reinstated claw-back of itemized deductions could raise the tax rate on ordinary income to as high as an effective 44.6 percent for some taxpayers.

·         The tax rate on long-term capital gains are scheduled to increase form 15 percent to 20 percent and the rate on qualified dividends from 15 percent to an effective 44.6 percent.

·         If Congress doesn’t take action, the federal estate tax rate will increase from 35 percent to 55 percent and the exclusion amount will drop from $5,120,000 to $1,000,000.

Call your DWC tax advisor for more information.

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Habitat for Humanity operates 50 ReStores across the U.S. including one right here in the Roaring Fork Valley.

The stores receive contributions from contractors with excess supplies, lumberyards, demolition crews salvaging reusable materials, home improvement centers and individuals who are remodeling their homes.

Click here to read the article from the Dalby, Wendland newsletter or visit www.dalbycpa.com to sign up for the biweekly newsletter (sign up at the bottom right-hand side of the page). 

Dalby, Wendland & Co. is a proud sponsor of Habitat for Humanity and we are looking forward to a DWC work day this Tuesday at a Habitat House in Silt, Colorado.

Dalby, Wendland is a public accounting and business consulting firm that has provided audit, accounting, and tax services to a wide range of businesses, industries, and individuals since 1948. Recently Accounting Today ranked Dalby, Wendland a regional leader in the magazine's Top 100 Tax and Accounting Firms and Regional Leaders in the U.S.

...

Here is an article from our Dalby, Wendland newsletter that gives tips on how to maintain a consistent cash flow.

Visit www.dalbycpa.com to sign up for our bi-weekly e-newsletter to receive timely tips.

If you know the tax rules that create deductible business miles, you can increase your tax deductions each year. The key is to know how to apply all of the mileage rules to your business vehicles for maximum vehicle deductions.

Call your Dalby, Wendland tax advisor today for more information. 

There are many new accounting issues that have emerged over the years that include guidance dedicated specifically to not-for-profit entities that include general and specific auditing considerations, analytical procedures, internal control considerations, and reporting that affects nonprofit organizations.

The audit team at Dalby, Wendland provides audit and accounting services to a wide variety of Colorado nonprofit and governmental organizations across the state. Our clients include higher education, school districts, hospitals, towns and municipalities, small districts, government councils as well as housing authorities.

 

In addition, we provide Office of Management and Budget (OMB) A-133 audit services to several of these government clients as well as nonprofits.

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Colorado’s First Annual Land Conservation Week is August 23-26, 2012.

A conservation easement (also sometimes called a conservation covenant or conservation restriction) is a transfer of usage rights that creates a legally enforceable land preservation agreement between a landowner and a government agency or a land trust for the purpose of conservation.

Conservation easements restrict real estate development and other activities on a property, which remains the property of the landowner.

Although the primary purpose of a conservation easement is to protect land from certain forms of development, there are federal and state tax benefits to donors of land or conservation easements.

Dalby, Wendland has CPAs who have experience working with landowners on conservation easements. Conservation easements can also help protect family land for future generations, so contact us about estate planning strategies.

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This article from our Dalby, Wendland newsletter talks about a partial tax exclusion for home sales. Under a key tax law provision, a married couple filing jointly can pocket up to $500,000 of home sale gain without owing any federal income taxes if they have owned and used the home as a principal residence for two out the previous five years. Unmarried or married taxpayers filing separately can pocket a gain of up to $250,000 without owing any federal income tax.

Contact your DWC tax advisor for more information.

The second half of 2012 will shape the tax landscape for the remainder of 2012 and for years beyond with issues that include:

·         Capital Gains

·         Roth IRA Conversions

·         Stock options

·         The 3.8% health care surtax

Make sure you have the information and resources you need to make good decisions that will produce benefits for you and your business in 2013.

Call your Dalby, Wendland tax advisor today.

...

In these troubled economic times, many financially distressed borrowers have had debt cancelled or forgiven by their lender. Forgiveness of debt can take on many different forms, including a “short sale;” the foreclosure of a home, business or investment property; the adjustment of a debt outside of foreclosure; or even the forgiveness of amounts owed to a credit card company.

While debt relief was no doubt welcome news to the people who received it, they might not realize the amount of the forgiven debt could have to be included in income when it comes time to file their income tax returns.The “general tax rule” requires taxpayers to include income from the cancellation of indebtedness in gross taxable income. However, anytime a taxpayer has a debt forgiven or canceled and/or receives a 1099-C form from a lender, there are several steps they could take to minimize the tax consequences.

First, the taxpayer should evaluate the various exceptions that exist within the tax code. Exceptions to reporting cancellation of debt income are as follows:

...

Home

Senior Citizens aged 65 and older who have owned and lived in their home for the past 10 years are eligible for the state of Colorado’s senior property tax exemption.

At the start of the 2012 session, Governor John Hickenlooper favored increasing the eligibility for low income seniors through the Property Tax, Rent and Heat credit program.



The state budget allocates $98 million to help seniors with paying their property taxes.

The property tax exemption provides 50% tax relief for qualified seniors age 65 and over on the first $200,000 of value of the personal residence. If the value of the house is $150,000 and the real estate taxes are $1,500, the senior would pay $750 rather than $1,500 with the state paying the county the remainder.

Qualifying seniors must be at least 65 years old on January 1, the owner of record for the previous ten consecutive years, and must live in the residence....

This article from the Dalby, Wendland newsletter explains 10 ways the new healthcare law might affect you and your business.

Sign up for our biweekly newsletter here which will help keep you informed of all the latest issues related to tax matters.

As the need for a college degree has increased, the cost of going to college has also increased. 

According to the College Board, for the 2011 - 2012 academic year, the average annual in-state tuition and fees at a public four-year college is $8,244, and the average out-of-state tuition and fees is $20,770. 

The average annual tuition and fees at a private nonprofit college is $28,500. These costs do not include room and board, books or supplies. Because of this, parents should seriously consider saving towards these costs while their children are young.  Parents may choose from an array of tax-favored savings options. 

These options include Coverdell Education Savings Accounts, Section 529 plans, and savings bonds.  No single option works best for everyone, but by reviewing the options available families can choose what best meets their needs.  Hopefully, some of these options will make paying those bills a little easier. 

Contact us to learn about some of the options.

As several states in the West continue to battle wild fires and with an early start of this year’s hurricane season on the East Cost, it is a good idea to safeguard important documents for you and your business from potential disasters.

Here is an article from www.IRS.gov that offers a few ways to do that.

Please call your tax advisor at Dalby, Wendland for more information.

 

 

Periodically, we spotlight local charities in our area and this week we invite you to join Alpine Bank’s nonprofit Facebook challenge!



Alpine Bank has selected seven community nonprofits to compete for the most votes.

For every vote a nonprofit receives, Alpine Bank will donate $1 to that organization regardless of whether they win the challenge or not. The nonprofit with the most votes at the end of the challenge will receive an additional $500 donation from Alpine Bank.



Go to Alpine Bank's Facebook page and click on the 'Contest' app tab at the top of the page to vote for the nonprofit of your choice.



You can only vote once. The challenge will run through June 15 so vote today!



Here are the featured nonprofits:



*    Colorado Animal Rescue

...

Are you interested in setting up a private foundation?

Check out this article from the Dalby, Wendland newsletter.

Call you DWC tax advisor for more information or sign up for our biweekly newsletter here.

 

Do you know the potential perks of hiring a child to fill a summer job at your business?

This article in the Dalby, Wendland newsletter explains how, under the tax law, putting your kids to work in your business can be a win/win situation.

This is a good way for kids to gain experience, some extra cash and income, while you reduce your employment tax costs and income tax liability. There is even a way for your children to put some of their earnings away on a tax-favored basis for college or a first home.

Contact us to see if your business is qualified or sign up for our newsletter here.

 

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There are benefits when you make electronic estimate income tax payments online .

They include:

·         No trips to the Post Office ·         It’s free ·         You receive online payment verification and transaction history ·         Available 24 hours a day, 7 days a week.

You do need to sign up in advance, so please contact your tax advisor at Dalby, Wendland for assistance.

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Taxpayers must follow guidelines when determining whether an activity is a business or a hobby.

There are rules for determining if an activity qualifies as a business and what limitations apply if the activity is not a business.

According to the IRS, in general, taxpayers may deduct ordinary and necessary expenses for conducting a trade or business. An ordinary expense is an expense that is common and accepted in the taxpayer’s trade or business.  A necessary expense is one that is appropriate for the business. Generally, an activity qualifies as a business if it is conducted in a business-like manner with a reasonable expectation of earning a profit.

There are some other factors to consider as well, so please consult your DWC tax advisor for more information.

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Did you know that you can renegotiate your lease and boost your company's bottom line in the process? Dalby, Wendland offers some quick ideas on how to generate extra income from your lease. Dalby, Wendland has accountants who are experienced in commercial real estate.

Ten Tips on Technology for Business Owners

What would you do if all of your data and essential information were gone or in the hands of someone who could do harm to you or your company?

Most companies do not answer this questions until it’s too late and they have had a security breach.

Think of the role technology plays in our personal and professional lives: it helps us engage with clients and colleagues; it can give businesses an edge on competition; it often provides new tools to run a business in an effective and efficient manner, and it allows us to create new ways of selling products and services.

Although technology is a prime concern for both small and large businesses, typically, small businesses have fewer defenses than big companies even though cyber criminals target smaller businesses just as often as they target larger companies.

Because one security breach could shut down your entire network and compromise important data, it is important to provide safeguards that...

Be Aware of these Financial Strategies
This article from our Dalby, Wendland newsletter talks about four financial strategies that seem to make good financial sense, but have the potential for trouble.

Do you have all the facts about retirement in regard to tax issues?

Retirement can raise a lot of questions about income, tax filing requirements, and Social Security Benefits.

In this article that appeared recently in the Business Times, Donna Hardy, a principal with Dalby, Wendland, offers some valuable tips and advice on planning for retirement.

Donna has worked for Dalby Wendland for 27 years and offers experience and expertise in tax and business planning as well as accounting systems and procedures and payroll consulting.

To receive our biweekly newsletter that includes tax tips and reminders,...

There are just five says left until the April 17th deadline.



Here is an article from the Dalby, Wendland newsletter that covers a variety of situations - whether you already filed your tax return, are waiting until the last minute, or planning to file an extension. 



To receive tax tips and other timely information related to your niche industry, sign up here for our biweekly newsletter.

 

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 Although “giving away” money to reduce your taxable estate is a common strategy to reduce estate taxes, in order to be valid, the gifts must be "complete" by the time the donor dies, which means that checks must have already been written and paid by the bank.

When is a Gift “Complete?”

Click here to receive the DWC biweekly newsletter straight to your email in box.

...

 If you are getting divorced and plan to sell a home, it is wise to think ahead to take advantage of the tax breaks.

You can receive articles on topics like this by signing up for our biweekly newsletter which delivers timely content directly to your email in box.

Call one of our tax professionals for more information.

Some “underwater” homeowners could now qualify for HARP 2, the government-sponsored refinancing program designed to help eligible homeowners with mortgage loan balances that are higher than the market value of their properties.

For more information on this issue or other topics related to buisness finance and tax matters, be sure to sign up for the DWC biweekly newsletter.

Click here to sign up by filling out the form at the bottom of the page.

There are 19 days left to prepare your 2011 tax return.

If you find that you need more time to file your federal tax return, be aware that an extension of time to file your return does not grant you any extension of time to pay your tax liability. Tax extension requests Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return are due the same day as tax returns (this year that date is Tuesday, April 17, 2012). An extension gives you six months to file a tax return. After that, it is due on October 15, 2012.



Call your DWC tax advisor for more information.

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Western Colorado accounting firm is ranked as regional leader by Accounting Today.

Tech Tips from a CPA: Uncertain times require secure technology.

As companies implement internal control systems and look for ways to reduce fraud, they often hire forensic accountants who can work on cases that can include fraud, valuation, and bankruptcy.  

Dalby, Wendland has a team of accountants who are certified in financial forensics and fraud examination.

Steven D. Hovland, CPA, Cr.FA, recently received Diplomate status with the American Board of Forensic Accounting by the American College of Forensic Examiners Institute (ACFEI) and Dennis W. Wagner, CPA/ CFE/CVA/CFF, who has been with Dalby, Wendland since 1978, is a Certified Fraud Examiner with the Association for Certified Fraud Examiners.

Dalby, Wendland is also a member of both the Government Audit Quality Center (GAQC) and the Employee Benefit Audit Quality Center (EBPAQC) of the AICPA.

...

The IRS has issued new final regulations concerning the federal income tax consequences that occur when a partnership interest is issued to one of the entity's creditors in satisfaction of a debt.

The new regulations are effective for exchanges that occur on or after November 17, 2011.

Call your DWC tax advisor for more information on filing a business partnership return.

The current law that allows $5 million in tax-free gift is scheduled to expire at the end of 2012. Anyone interested in making large lifetime gifts needs to act quickly.

Because the gift and estate tax exemptions are schedule to decrease to $1 million in 2013 and, in any event, may fluctuate over time, nobody can rely on a $5 million exemption at his or her death (or at any time in the future).

Call your DWC tax advisor for more information.

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In the coming weeks, we will be highlighting some of our professional team members who, in addition to being certified public accountants, have special designations in others areas such as technology, forensics, fraud exams, and valuations.

Greg A. Keller, CPA, CFF, PFS, CITP a principal in our Glenwood Springs office is Director of Information Technology for the firm. He has been with DWC for 27 years.

Greg has special designation from the American Institute of Certified Public Accountants as a Certified Information Technology Professional (CITP) for his experience and expertise in technology.

Here are five ways a certified information technology professional can use technology and accounting to your advantage: 

Having a business advisor with in-depth knowledge of accounting and software can help businesses get the most out of their software.

...

The Internal Revenue Service has issued an alert to senior citizens and other taxpayers of a scheme that requests them to file tax returns claiming fraudulent refunds.

According to the IRS, “the scheme carries a common theme of promising refunds to people who have little or no income and normally don’t have a tax filing requirement. Under the scheme, promoters claim they can obtain for their victims, often senior citizens, a tax refund or nonexistent stimulus payment based on the American Opportunity Tax Credit, even if the victim was not enrolled in or paying for college.”

It appears that the scheme targets the college tax credit; senior citizens, working families and church members.

Call your DWC tax advisor for more information.

The Internal Revenue Service announced that interest rates will remain the same for the calendar quarter beginning April 1, 2012.  The rates will be:  

Three (3) percent for overpayments (two (2) percent in the case of a corporation); Three (3) percent for underpayments; Five (5) percent for large corporate underpayments; and One-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000. The 3 percent rate also applies to estimated tax underpayments for the second calendar quarter in 2012, including the first 15 days in April 2012.

Call your DWC tax advisor for more information.

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The Internal Revenue Service issued guidance on February 17 that allows certain estates of married individuals who died during the first six months of 2011 an extension of the deadline to make the portability election.

According to the IRS, “The extra time is available to an estate even if the estate did not request an automatic six-month filing extension on Form 4768 prior to the regular nine-month filing deadline. As a result, these estates will now have until 15 months after the date of death, rather than the usual nine months, to make the election by filing an estate tax return on Form 706. Thus, the first estate tax returns for estates eligible to make the portability election (because the date of death is after Dec. 31, 2010) are now due on Monday, April 2, 2012.”



Call your DWC tax advisor for more information....

Tax season is here!

It’s not too early to start preparing, so check in with your DWC tax advisor and be sure to check back here for the latest tax tips and new alerts.

Did you know that seniors are expected to live 20 or more years beyond their retirement age?

Social Security may average 40% or less of your required income when you retire. You need approximately ⅔ to ¾ of your current income for financial security in retirement, depending on your spending level.

What you can do now:

Even a slight increase in contributions to your 401(k) 1 or 2 % can make a difference 15 or 20 years down the road.

Call your Dalby, Wendland tax advisor for more information on retirement planning.

Source: American Institute of CPAs

Be sure you have qualified and experienced accountants preparing your tax returns.

The IRS is being more aggressive in its review and examinations of an organization’s or an individual's accounts and financial information. The IRS conducts audits in an effort to ensure information is being reported correctly, according to the tax laws, and to verify the amount of tax reported is accurate.

Dalby, Wendland also has experienced accountants who specialize in IRS representation, so call us today if you have questions on IRS audits.

 

The US Labor Department issued final rules regarding required disclosure of 401(k) retirement plan fees on February 2, 2012.  The rules require companies that administer 401 (k) and other defined-contribution plans to disclose administrative and investment costs to employers who sponsor the plans.  The effective date for the required disclosures is July 1, 2012.  The plan sponsors have 60 days from July 1, 2012 to disclose the costs to workers/employees enrolled in the plans. Companies who sponsor defined-contribution plans will need to contact their administrators and ensure the appropriate information will be available in the time frame required.  Contact the audit team at Dalby, Wendland & Co., for more information on the new rules for 401(k) retirement plans....

The IRS released new guidance on the requirement that employers provide information to employees on the cost of employer-provided group health plan coverage.



The Patients Protection and Affordable Care Act requires employers to report the “aggregate reportable cost” of “applicable employer-sponsored coverage” under an employers-sponsored group health plan on Form W-2, Wage and Tax Statement. The IRS has announced that this reporting is optional for all employers for 2011 Form W-2’s and will again be optional for small employers, less than 250 W-2’s, for 2012 W-2 reporting.



Call your DWC tax advisor for more information.

 

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Question: Dalby, Wendland has served companies of all sizes and in many industries for the past 64 years. The region has been through several “booms and busts” and a couple of recessions, so you have a unique angle on Western Colorado. From your perspective, what is the jobs outlook for 2012?

Answer: “In general, businesses and other organizations continue to be flat regarding growth.  Therefore, it seems adding jobs will remain flat for awhile.  We are not seeing too many businesses hiring and training for the short term, unless there is a longer term benefit to their investment. The result seems to be that everyone is working very hard with the resources they currently have and waiting for the next big opportunities to expand during this election year and what happens following."



Sign up for the Dalby, Wendland blog, or follow us on Facebook and Twitter to receive the latest news and perspectives on the business...

This is a great time to evaluate the financial data that is essential to your business.  

Here are four simple business tips every business owner should follow to help improve business profitability.  

1.      Prepare a budget

2.      Review financial statements at least once a month

3.      Mange the cash flow

4.      Determine key performance indicators

Be proactive with your business accounting and financial management and be sure to hire experienced accountants.

Call your DWC tax advisor for more information.

While a number of tax provisions expired at the end of 2011, several new tax provisions took effect that taxpayers should be aware of including inflation adjustments, capital gain and loss reporting, bonus depreciation, estate tax, and foreign asset reporting. 

Call your DWC tax advisor for more information.

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The Internal Revenue Service announced yesterday that taxpayers have until April 17 to file their tax returns for the 2011 filing season.  Normally the deadline falls on April 15.

However, since April 15 falls on a Sunday, and Emancipation Day, a holiday observed in the District of Columbia, falls on Monday, April 16, taxpayers will have until Tuesday, April 17 to file their 2011 tax returns and pay any taxes due.

Taxpayers requesting an extension will have until Oct. 15 to file their 2012 tax returns.

Call you DWC tax advisor for more information.

The Effective FUTA Tax Rate for Colorado employers for 2012 is 0.90%. The taxable wage base for SUTA increased from $10,000 to $11,000 for 2012.

Call your DWC tax advisor for more information.

 

This may be a good year to sell your small or medium-sized business due to favorable income tax rules for 2012.

Several of our principal accountants who specialize in business valuation have 25-30 years experience in the industry, along with special designation from the American Institute of Certified Public Accountants.

Call your DWC tax advisor for more information.

Steven D. Hovland is a certified public accountant and certified forensic accountant with Dalby,Wendland & Co. Hovland specializes in financial statement audits and internal control assessments.

December 29
If you are a weekly depositor of payroll taxes, then you must deposit Social Security, Medicare, and withheld income tax for December 21, 22, and 23.

December 30
If you are a weekly depositor of payroll taxes, then you must deposit Social Security, Medicare, and withheld income tax for December 24, 25, 26, and 27.

Call your DWC tax advisor for more information.

According to the IRS, the Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits.

Employers should implement the new payroll tax rate as soon as possible in 2012 but not later than Jan. 31, 2012. Employers and payroll companies will handle the withholding changes, so workers should not need to take any additional action.

Call your DWC tax advisor for more information on the payroll tax cut.

 

According to the IRS, low and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2011 and the years ahead.

The saver’s credit helps offset part of the first $2,000 workers voluntarily contribute to IRAs and to 401(k) plans and similar workplace retirement programs. This is also known as the retirement savings contributions credit and is available in addition to any other tax savings that apply.

The saver’s credit can be claimed by:

·        Married couples filing jointly with incomes up to $56,500 in 2011 or $57,500 in 2012;

·        Heads of Household with adjusted gross income up to $42,375 in 2011 or $43,125 in 2012; and

·        Married individuals filing separately and singles with adjusted gross income up to $28,250 in 2011 or $28,750 in 2012.

Call...

This is a great time of the year to think about giving a gift to a charity.

The tax benefits for giving are many and varied. Gifts given at death help to reduce your taxable estate. Lifetime gifts provide a deduction that helps to reduce federal and state taxable income. Cash gifts generally are deductible to the extent they do not exceed 50% of your adjusted gross income reported on your tax return. Appreciated assets are generally limited to 30% of adjusted gross income. This deduction comes off the top and helps to reduce the income that is subject to the highest income tax rates assessed on your income tax return.

If the charity qualifies because of their location or the type of service they provide, additional benefits are provided through the enterprise zone program. These qualifying gifts provide a credit...

On December 16, 2011 the IRS announced that tax-exempt organizations with January and February filing due dates will have until March 30, 2012, to file their annual returns.

The extension applies to affected organizations filing Forms 990, 990-EZ, 990-PF, or 1120-POL. Form 990-N filers will not be affected. No form needs to be filed to get the March 30 extension.

Call your DWC tax advisor for more information.

The Colorado Department of Revenue has updated its guidance documents regarding corporate and personal income tax credits and sales and use incentives relating to enterprise zones to highlight recent changes.

For any credit generated after 2011, most enterprise zone credits must be pre-certified by the zone administrator prior to any business activity that would generate the enterprise zone credit. Pre-certification must be applied for online at www.advancecolorado.com/ez or by submitting the correct forms.

Call your DWC tax advisor for more information.

On December 13, the House of Representatives by a vote of 234 to 193, passed H.R. 3630, the “Middle Class Tax Relief & Job Creation Act of 2011.”

The bill now heads for the Senate. Even if the Senate were to pass H.R. 3630 without change, the President has said that he would veto it. However, one scenario for H.R. 3630 is that the Senate will pass an amended version of the bill and then send it back to the House for its consideration. H.R. 3630 is a bill that that would extend through 2012 the 2% reduction in workers' payroll tax and self-employment tax that's scheduled to expire at the end of 2011. It also would make a number of other tax changes, including the following:

The 100% bonus first-year depreciation allowance under Code Sec. 168(k), which under current law won't apply to assets placed in service after 2011 (with the exception of some specialized assets), would be extended to...

Choosing to make an entity a single-member Limited Liability Company (LLC) could provide some corporate liability protection while taking advantage of the simplicity of Schedule C (proprietorship) tax reporting. The most common reasons for setting up a single-member LLC is for simplicity of operation, generally not tax advantages.

 

Call your DWC tax advisor about single-member LLCs.

On Friday the Internal Revenue Service released standard mileage rates for 2012.

The Internal Revenue Service today issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 55.5 cents per mile for business miles driven 23 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organizations

According to the IRS, the rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.

The rate for medical and moving purposes is based on the variable costs as determined...

When you read a newspaper article that reports how a former employee stole significant amounts of money from a business, what’s the first thing that comes to mind? Many times if you look between the lines of the story, you’ll see the employee was able to steal the owner’s money because there was no segregation of duties. Segregation of duties is critical to effective internal control because it reduces the risk of mistakes and theft. Segregation of duties provides preventive and detective controls.

The four basic areas of duties are authorization, recording, custody of assets and monitoring. Authorization is the ability to authorize a purchase of equipment or payment on an invoice. Recording is the task of entering the transaction into the accounting records and performing periodic reconciliations. The custody of assets function is the person who physically can access cash or in most cases has access to the business’s check stock. Monitoring is the task of reviewing the records, reports and reconciliations...

As the end of the year approaches, we encourage corporations to consider whether they might benefit from tax-saving strategies that include:

·        Accelerating or deferring income to preserve estimated tax break;

·        Deferral of certain advance payments to next year;

·        Fine-tuning bonuses to make the most of the Code Sec. 199 domestic production activities deduction.

Call your DWC tax advisor for more information.

The Colorado Department of Labor and Employment is currently sending out rate notice letters to employers for calendar year 2012.   

If you subscribe to QuickBooks Enhanced Payroll Service, you can enter the 2012 rate now.   

·        Go to Lists>

·        Payroll Item

·        List> select CO-Unemployment Company (edit payroll item)

·        Enter in the 2012 rate in the appropriate field.

Call Dalby, Wendland for all your bookkeeping needs. We offer day-to-day bookkeeping services or a full-range suite of services. We also have QuickBooks ProAdvisors in all of our offices and our firm has achieved Diamond Level Status with Intuit software. This QuickBooks tip comes from Denise R. Distel, out of our Montrose office....

You can capture bonus depreciation on a pre-2011 vehicle if you purchased a new vehicle specifically to be used for personal purposes. You can then place that personal vehicle in business service this year and count it as a new vehicle for 2011 bonus depreciation.

Call your DWC tax advisor for more information.

Year-end tax planning is particularly challenging this year because of uncertainty over whether Congress will pass comprehensive tax reform that could have a major impact in 2012 and beyond. 

Call your DWC tax advisor to discuss tax strategies for 2012.

The Montrose location of Dalby, Wendland is pleased to announce a special opportunity for local businesses that can solve your bookkeeping problems and save you time and money. Denise R. Distel, a QuickBooks ProAdvisor in our Montrose office, has achieved Diamond Level status with Intuit software, the maker of QuickBooks.  As a member of the Pro Advisor Program, Dalby, Wendland receives exclusive benefits and privileges that we can pass on to our clients. This gives local businesses the excellent bookkeeping software, support, and resources available to run their businesses efficiently and economically. As Diamond Level QuickBooks ProAdvisors, we can offer discounts of up to 35% on QuickBooks software, so call Denise today at 970-249-7701...

The amount of a tax deduction you can claim on your business vehicle depends on how tax law classifies your vehicle. For example, if you buy a truck because you think it is 100 percent tax-deductible, be aware that tax law might classify that truck as a sport utility vehicle (SUV), which would limit your tax write-off.

Likewise, tax law might also treat the vehicle as a car, which is subject to luxury auto depreciation limits.

Call your DWC tax advisor to get clarification on the tax deductions available for each kind of vehicle.

 

Charitable deductions can be a win-win for both the taxpayer and the charity. Here are three quick tips for getting the most out of your charitable contribution:

An investor can sell loser shares and then donate the cash; however, with winner shares, the investor may prefer to give the stock to the charity. Volunteers can deduct out-of-pocket expenses.    If age 70½ or older, the taxpayer can make charitable donations directly from an Individual Retirement Account (IRA). It is never too early to start thinking about tax strategies for next year. Charitable giving can be a smart way to increase the tax savings from charitable contributions.

Consult with your Dalby, Wendland tax advisor before applying these or other tax strategies and...

Dalby, Wendland & Co., P.C. awarded three regional businesses with the annual “Spirit of Western Colorado" Award on Friday, November 4, 2011 at the DoubleTree by Hilton Hotel in Grand Junction. 

Rocky Mountain Health Plans, Gordon Holdings of Montrose, and Jeff Carlson of Glenwood Springs were announced as this year’s award recipients.

The award has been given each year since 2004 to local individuals and businesses who not only excel in business and community with a spirit of integrity, a keen eye for business, and a commitment and compassion for their respective communities, but who also continue to reflect the pioneer spirit of the west. Steve ErkenBrack, chief executive officer of Rocky Mountain Health Plans, accepted the award for the health care insurance company.

In 1970, after local doctors realized that people could not afford health care, the company asked local doctors to join their network and accept Medicare and Medicaid, making it more affordable for more people....

Year-end tax planning is particularly challenging this year because of uncertainty over whether Congress will pass comprehensive tax reform that could have a major impact in 2012 and beyond. 

Even if there’s no major tax legislation in the immediate future, Congress will still have to contend with a multitude of difficult issues, such as whether to once again “patch” the alternative minimum tax (ATM) to avoid a drastic drop in post-2011 exemption amounts.

Congress will also need to decide what to do about the post-2012 expiration of income tax cuts (including the current rate schedules, and low tax rates for long-term capital gains and qualified dividends), and the expiration of favorable estate and gift rules for estates of decedents dying, gifts made, or generation-skipping transfers made after Dec. 31, 2012.

However, regardless of what Congress does late this year or early in 2013, there are tax savings you can take advantage of...

Dalby, Wendland & Co., P.C. will offer three days of beginner, advanced, and payroll QuickBooks classes in Glenwood Springs on Mon. Dec. 12 – Wed. Dec. 14, 2011 at Dalby, Wendland & Co., P.C. at 201 Centennial Street in Glenwood Springs.  The fee is $115 for each class and $60 for the payroll class.

Dalby, Wendland & Co., P.C. is a certified QuickBooks ProAdvisor.  To register by phone or for class information call Kelly at 970-945-8575. To register by e-mail contact  KWard@DalbyCPA.com. You must pre-register.                                                                                           

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According to the Colorado Department of Revenue, the Colorado Tax Amnesty allows certain Colorado taxpayers to pay the full amount of overdue taxes, including one-half of any interest due, without being subject to any other civil or criminal penalties.

The program runs from October 1 through November 15, 2011 and applies to taxes that were due on or before December 31, 2010. The amnesty does not include 2010 Colorado income tax, which was due April 18, 2011.

 

There are other exclusions so please contact your DWC tax advisor for more information.

According to the IRS, personal exemptions and standard deductions will rise and tax brackets will widen in 2012 due to inflation.  

The value of each personal and dependent exemption, available to most taxpayers, is $3,800, up $100 from 2011.  

The new standard deduction is $11,900 for married couples filing a joint return, up $300, $5,950 for singles and married individuals filing separately, up $150, and $8,700 for heads of household, up $200.  

Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $70,700, up from $69,000 in 2011.

Call your DWC tax advisor for more information.

On Thursday the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2012.

According to the IRS, "many of the pension plan limitations will change for 2012 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged."

Call your DWC tax advisor for more information on pension plan limitations or other end-of-the-year tax planning strategies.

Do you pay some medical expenses for your parents?  

If you claim your parent(s) as a dependent, you may also be able to claim a deduction for a portion of their medical expenses you paid. If they don't qualify as a dependent you cannot claim a deduction, however, you can pay their expenses directly and may be able to avoid gift tax consequences on the amounts paid.

 Call your DWC tax advisor for more information.

Gifting is common in families where the parents have accumulated wealth over the years.  With the economic downturn and the depressed value of real estate, now may be a good time to consider making gifts to the family. 

Done correctly this can be a good estate planning technique, however, it must be a true transfer and both parties must follow the actual structure and comply with IRS filing requirements.

Call your Dalby, Wendland tax advisor for more information on estate, gift and trust planning.

Under the Hiring Incentives to Restore Employment (HIRE) Act, enacted in 2010, two new tax benefits are available to employers who hire certain previously unemployed workers ("qualified employees").

Call your DWC Tax Advisor for more information.

Historically, around tax deadlines, the IRS issues warnings to consumers about the fraudulent use of the IRS name or logo by people who are trying to gain access to financial information to steal their identity.

The IRS never initiates taxpayer communications through email. Unsolicited email claiming to be from the IRS, or from an IRS-related component such as EFTPS, should be reported to the IRS at phishing@irs.gov.

Do not click on any attachments or links within an unsolicited email claiming to be from the IRS because it could download a malicious computer virus onto your computer.

Call your DWC tax adviser for more information.

This week’s information tip comes from Denise Distel, who works out of Dalby, Wendland's Montrose office. Denise is the only QuickBooks ProAdvisor in the Montrose and Delta area. Dalby, Wendland also has QuickBooks ProAdvisors in Edwards, Glenwood Springs, Grand Junction, and Rifle.   

How to Track Bills in QuickBooks QuickBooks can help you manage bills that you owe. Managing your bills in QuickBooks will help you keep track of who you owe and how much you owe.

·         Do you pay your bills as soon as you get them? If you do, and you don't care about keeping track of how much you currently owe, you don't need to track your bills. Simply write a check to record your payment in QuickBooks.

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The Internal Revenue Service announced yesterday that it has launched a new program that will allow non-compliant employers who have been improperly labeling their employees as independent contractors the opportunity to get compliant by making a minimal payment covering past payroll tax obligations rather than wait for the IRS to find the error in an audit.

This is part of a larger "Fresh Start" initiative at the IRS to help taxpayers and businesses address their tax responsibilities.

Call your DWC tax adviser for more information.

This article was originally posted in The Business Times on September 1, 2011.

Just as your patients can benefit from regularly scheduled check-ups – your business can also profit from regular examinations to ensure it is in good health. It is critical for physician owners to give the proper attention to the business side of their practices.

Throughout the healthcare industry, it is common for physicians to become so preoccupied with patient care, they unintentionally neglect or disregard monitoring their business operations. This can lead to a host of problems, from decreased cash flow to internal control concerns.

If you think your practice would benefit from a business physical, you can do a quick check-up. If you answer “Yes” to any of the...

For those who converted funds in an individual retirement account to a Roth IRA in 2009, there is an opportunity to undo this conversion before October 15, 2011.  There is a planning opportunity available if the value of the account has decreased since the original conversion.

For questions on Roth IRA Conversions, 401(k) rollovers, or other investment or tax strategies, call your DWC adviser today.

President Obama's new employment plan, if passed quickly by Congress, could have tax implications to employers & employees.

We will post the latest tax alerts and updates here on the DWC Newswire as soon as they become available.

Make sure you have the latest information on debt related tax issues that involve bankruptcy, cancellation of debt, foreclosure, and short sales.

Please call your Dalby, Wendland tax adviser for more information and the latest tax updates.

Due September 15, 2011: Form 1120s, U.S. Income Tax Return for S corporation – send schedule K-1s to shareholders.  

Due September 15, 2011: Form 1065, U.S. Return of Partnership Income – send schedule K-1s to partners 

Due September 15, 2011: Form 1041, U.S. Income Tax Return for Estates and Trusts – send schedule K-1s to beneficiaries.  

Due September 15, 2011:  Form 1120, U.S. Corporation Income Tax Return 

Due September 15, 2011: Individual 3rd quarter estimates due 

Due October 17, 2011: Form 1040, U.S. Individual Income Tax Return (if extension was filed on April 15) Form 709, United States Gift and Generation-Skipping Transfer Tax Return

 

 

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September 15 is the extension deadline for filing a 2010 calendar year corporation tax return. 

Call your DWC tax advisor for questions.

The due date for 3^rd quarter 2011 estimated individual tax payment Form 1040-ES is September 15, 2011.

Call your DWC tax advisor for questions.

New tax developments, along with economic issues, could significantly affect your tax bill.  Be careful about what you hear becuase the news likes to talk about what is being proposed and often not what has actually passed. 

Watch our web site and watch for DWC's special mailings for specific new tax developments as they become effective.

We understand that our clients know the importance of having experienced accountants provide tax preparation services at the best fee possible. Here are four things you can do to help lower your fees:

1.                  Provide complete information; 2.                  Provide accurate information; 3.                  Provide organized documents; 4.                  Provide the information as soon as possible; don’t wait until a few weeks before a deadline;

Dalby, Wendland is also committed to a paperless environment and instead of paper tax returns and organizers, we offer the option of foregoing a traditional, paper tax return and instead receiving your tax return and accompanying information on a CD.

Call us today for more information.

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The Internal Revenue Service announced that interest rates will decrease for the calendar quarter beginning Oct. 1, 2011. The rates will be:  

three (3) percent for overpayments [two (2) percent in the case of a corporation]; three (3) percent for underpayments; five (5) percent for large corporate underpayments; and zero and one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000. Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. 

According to the IRS, “For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion...

A healthy business is a profitable business. 

Businesses can also benefit from regularly scheduled check-ups. The health of a business is just like a regular health issue – the earlier a problem is detected, the better the outcome.

Many of the CPAs at Dalby, Wendland have expertise in accounting for healthcare providers, business transition planning, tax preparation for non-profits, and IRS representation.

Our audit and accounting services can also add value to your business and help you achieve your objectives, manage your risk, and improve your business performance.

Call us today for more information.

There are 12 different tax benefits available for education including credits, deductions or exclusions from income.

Most education-related tax benefits apply only to higher education.

Are you claiming everything you can claim?

Call one of CPAs today for more information.

Make sure you have the latest information on the tax implications of foreclosure, short sales, or bankruptcy. Our team of Western Colorado CPAs includes tax advisors who have extensive experience in tax matters that involve bankruptcy, IRS, and tax resolution matters.

Tax plans related to the debt ceiling reduction could have an impact for taxpayers in the future because of the Bush-era tax cuts set to expire at the end of 2012. The debt deal could alter the current plan.

Follow the Dalby, Wendland Newswire or follow us on Facebook or Twitter for the latest tax updates.

As accountants and business advisors to several physicians and medical practices throughout Western Colorado, Dalby Wendland can help medical groups assess financial risk, contend with rising overhead costs, manage finances, modify physician compensation, assist in operational management, collect patient receivables, and advise on strategic planning and growth revenue strategies that can help strengthen the practice.

The recent decline of the stock market has potentially created a tax planning opportunity on 2010-2012 tax returns.
Most taxpayers have until October 17, 2011 to reconsider their 2010 Roth IRA conversions to potentially save taxes.

 

On Friday, the Internal Revenue Service issued guidance on the treatment of basis for certain estates of decedents who died in 2010. The guidance assists executors who are making the choice to opt out of the estate tax and have the carryover basis rules apply. Form 8939, the basis allocation form required to be filed by executors opting out of the estate tax, is due Nov. 15, 2011.

According to the IRS, "an executor must file Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent, to opt out of the estate tax and have the new carryover basis rules apply.

Under the Economic Growth and Tax Relief Reconciliation Act of 2001, the estate tax was repealed for persons who died in 2010. However,...

On July 1, 2011, employers received a reduction in their federal unemployment tax (FUTA) obligations. On June 30, 2011, the 0.2% federal unemployment tax surtax expired, resulting in a lower FUTA tax rate of 6.0% effective July 1, 2011. 

Call the tax professionals at Dalby, Wendland to see how the FUTA Surtax affects your business.

In an effort for the IRS to better understand the time and cost to taxpayers when complying with the many requirements imposed by tax legislation, regulations, and IRS filings, the IRS Office of Research is mailing surveys to request information from the following categories of taxpayers:

Business Taxpayers – this has already begun; Individual Taxpayers – these are being mailed during August; Tax Exempt Taxpayers – these will be mailed in September; Post-Filing Burdens (after audits) – will be mailed in early 2012. These surveys are from the IRS and participation in filling out the surveys is purely voluntary on the taxpayers part.                                                               

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Tax problems related to the IRS or other state or other regulatory agencies require specialized knowledge and a thorough understanding of IRS practices. Dalby, Wendland offers an experienced team of CPAs who offer professional federal or state tax representation in tax, audit, business, estate planning, and asset protection issues.

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In addition to advising clients on tax planning and accounting matters, we also advise clients on business transition plans. It’s critical to hire an experienced CPA who can guide the acquisition or sale of a company.

The business succession team at Dalby, Wendland can help ascertain challenges that often accompany parties on both sides of business mergers and acquisitions.

For more information on Dalby, Wendland’s business transition planning and succession planning services, contact us today.

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The new 100 percent bonus depreciation permits tax planning strategies, as it applies to both the carryover and new basis on a trade-in or Section 1031 exchange through 12/31/11. This applies only to new equipment and there may be limitation related to some automobiles.  

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