If a taxpayer received an acknowledgment message that their e-filed tax return has been received, they can be assured that the IRS has the tax return even though “Where’s My Refund” does not reflect that. Taxpayers should not call the IRS unless specifically directed by “Where’s My Refund,” as there is no new information to give them.

We expect the vast majority of tax refunds to continue to be issued within the historical range of 10 to 21 days. The IRS is taking steps to update information so that Where’s My Refund has current information. The IRS apologizes for any inconvenience and will provide updated information as soon as possible.

This was taken directly from the IRS press release concerning this issue.  Please give our office a call with any questions.

The IRS over the past several years has been in the process of updating their computer system to a Modernized E-File System, aka MEF.  When the new system is totally implemented it will acknowledge electronically filed tax returns in a much shorter period of time compared to the old “legacy systems.”  After full implementation to the MEF system, the IRS will be able to process refunds within 72 – 96 hours instead of the current minimum of 8 days.  The new system will also help to crack down on fraudulently filed returns.  With the old “legacy system” the fraudulent returns were not caught for a period of up to 18 months and till then the perpetrators were long gone and could not be caught.  The process of converting and updating the MEF system has caused the delay in processing Tax Refunds.

Please see the IRS Press Release in our News section for more details concerning this issue.

An LLC combines the limited liability of a corporation with the flexibility of a partnership, while avoiding the limitations on ownership and single class of stock rules applicable to corporations. An LLC with more than one member is taxed as a partnership for federal income tax purposes unless it elects to be taxed as a corporation. This allows the members to allocate income and loss in any manner that has substantial economic effect. While enjoying this flexibility is normally available only to partnerships, LLCs also offer their members limited liability with respect to almost all LLC debts. However, a member in a professional LLC is still liable for his or her own misconduct and for the misconduct of anyone he or she supervises.
A single-member LLC is disregarded as an entity separate from its owner for tax purposes, or it can elect to be taxed as a corporation.

Please contact our tax office to find out if an LLC is the right choice for your business.

The College Board indicates the average cost to attend public four-year colleges and universities is up 8.3% from last year to $8,244 for in-state tuition and fees. For out-of-state students, the cost is up 5.7% to an average of $20,770. Tuition and fees costs at public two-year colleges are up 8.7% to an average of $2,963.

On the bright side, the College Board indicates subsidies provided to students through the combination of education tax credits and deductions increased to an estimated $14.8 billion in 2010–2011.

January 17—Individual taxpayers’ final 2011 4th quarter estimated tax payment is due unless Form 1040 is filed by January 31, 2012, and any tax due is paid with the return.

January 31—Give your employees their copies of Form W-2 for 2011. If an employee agreed to receive Form W-2 electronically, have it posted on the website and notify the employee.

—Give annual information statements to recipients of certain payments you made during 2011. You can use the appropriate version of Form 1099 or other information return. Form 1099 can be filed electronically with the consent of the recipient.

February 28—The government’s copy of Form 1099 series returns (along with the appropriate transmittal form) should be sent in by today. However, if these forms will be filed electronically, the due date is extended to April 2.

February 29—The government’s copy of Form W-2 series returns (along with the appropriate transmittal form) should be sent in by today. However, if these forms will be filed electronically, the due date is extended to April 2.

—File Form W-3 (Transmittal of Wage and Tax Statements) along with Copy A of all the Forms W-2 you issued for 2011. If you file Forms W-2 electronically, your due date will be extended to April 2.

March 15—2011 income tax returns must be filed or extended for calendar-year corporations. If the return is not extended, this is also the last day for calendar-year corporations to make 2011 contributions to pension and profit-sharing plans.

Christmas Hours:

• Friday December 23rd – Closed
• Monday December 26th – Closed

New Years Hours:

• Friday December 30th – Closed
• Monday January 2nd – Closed

Beginning Tuesday January 3rd, 2012 we will be back to our normal operating hours of Monday through Friday from 9:00 AM to 4:30 PM.

Transfer investments from your traditional IRA to a Roth during a market dip. You’ll capture after-conversion growth without owing additional tax.

Please call or e-mail us if you have any questions on the deductibility of a loss on your 2010 or 2011 tax returns.

If you have any questions or concerns, please call or stop in the office.