During the time period from June through September is a heavy continuing professional education time period for Frank, and he will be out of the office several days each month for continuing education.  Frank is also on vacation from Saturday, July 7th to Monday, July 16th but will keep in touch with the office on a daily basis. 

Currently till Thursday, May 24th, 2012

Monday through Friday 8:30 AM to 5:00 PM

Closed – Friday, May 25th

Closed Monday, May 28th 

Memorial Day to Labor Day:

Monday through Thursday 8:30 AM to 5:00 PM

Closed Friday’s 

July 4th Holiday

Closed Wednesday July 4th

Thursday July 5th – we reserve the right to close this day.

Labor Day Weekend

Friday, August 31st – Closed

Monday, September 3rd – Closed 

Beginning Tuesday, September 4, 2012 – we will be back to our normal operating hours of Monday through Friday from 8:30 to 5:00 PM

Enjoy your Summer!

Because Republicans and Democrats were unable to agree on how to pay for the extended tax cut, the law included no spending cuts to offset the estimated $93 billion cost of this provision.  The law also provides for long-term federal unemployment benefits, setting the maximum at 73 weeks in states with the worst unemployment and 63 weeks for other states.  Another provision in the law includes the so-called ”doc fix” that prevents a scheduled 27% reduction in Medicare payments to doctors.

 The unemployment benefits and doctor payments will be paid for by government sales of broadband spectrum, requiring federal workers hired after this year to contribute more to their pensions, and cuts in certain health programs.

 President Obama signed the bill into law on February 22

If you’re selling online (eBay, Craigslist etc. for example) you can claim this activity as a hobby and make deductions against it as long as you’re not buying and selling goods with the intention of making a profit.  Read more about determining whether an activity is a business or hobby from the IRS at www.irs.gov.

 If you make a profit from an online sale, you are required to report it to the IRS.  After all, income is income.  Neither eBay nor Pay Pal reports transactions to the IRS, so it is up to you to report your profits. The way the income gets reported is different between a hobby and a business.

If you are serious about your online venture, consider setting up a business to reduce your tax liability and the threat of penalties for failing to report income.  Kelly Financial Services can help you start up your online business!

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.

2nd Quarter  June 15th, 2012 - 3rd Quarter  September 15th, 2012 -4th Quarter  January 15th, 2013.

If the 15th falls on a weekend or legal holiday, the due date becomes the next legal business day.

Monthly 941 Payroll Tax deposits are due the 15th the following month. 

May Monthly Payroll Tax Deposits are due:  June 15th