Friday, October 26, 2012

In 2013, Various Tax Benefits Increase Due to Inflation Adjustments

ABA Tax Accounting | Tax Services | St. Paul, MN Accounting Firm

Federal, State, Local and International Taxes - For tax year 2013, the Internal Revenue Service announced annual inflation adjustments for more than two dozen tax provisions. Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

Tax Strategies for Business Owners - Are you having problems with the IRS?

ABA Tax Accounting | Small Business Accounting | St. Paul, MN Accounting Firm

Federal, State, Local and International Taxes - If you owe the IRS, you have a very serious problem. It may take the IRS several years to catch up to you, but they're relentless and have no mercy in collecting all the money that is owed. When the collection process starts, they'll make your life miserable and literally ruin all aspects of your life. We're here to help you resolve your tax problems and put an end to the misery that the IRS can put you through. We pride ourselves on being very efficient, affordable, and of course, extremely discrete. Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

Thursday, October 25, 2012

IRS delays certain FATCA deadlines

ABA Tax Accounting | Tax Preparation Services | St. Paul, MN Accounting Firm

International Tax Strategy - The Internal Revenue Service on Wednesday announced it is delaying various deadlines relating to the Foreign Account Tax Compliance Act. Since issuing proposed regulations in February, the IRS has received numerous comments from affected parties saying the original deadlines do not give them enough time to comply with FATCA's due diligence, withholding and documentation rules. Read the full story at Journal of Accountancy (10/2012). Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

CEOs call for tax hikes, spending cuts to reduce deficit

ABA Tax Accounting | Accounting Outsourcing | St. Paul, MN Accounting Firm

Small Business Accounting The CEOs of more than 80 of America's biggest and best-known companies have made a joint appeal to Congress to bring the U.S. deficit under control with a combination of spending cuts and tax increases. The proposal is at odds with the arguments of other business groups that avoid the politically sensitive matter of raising taxes. Read the full Story at The Wall Street Journal (10/25). Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

Tuesday, October 23, 2012

IRS to Tighten Controls over Refundable Tax Credits

ABA Tax Accounting | Tax Preparation Services | St. Paul, MN Accounting Firm

Federal, State, Local and International Taxes - Millions of dollars in refundable tax credits that were determined to be erroneous after taxpayers received them may never be recovered by the Internal Revenue Service, but the IRS plans to clamp down on erroneous and fraudulent claims for tax breaks such as the Earned Income Tax Credit. To read more click here. Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

Why Outsource Tax Preparation?

ABA Tax Accounting | Domestic Outsourcing | St. Paul, MN Accounting Firm

Strategic Domestic Outsourcing - The obvious reasons companies choose to outsource business processes are to reduce operating costs and increase flexibility to respond to business requirements. By outsourcing tax return preparation to ABA Tax Accounting, your company could focus on reducing operating costs and increase profitability. Most America's Tax professionals and CPA firms outsource tax preparation. The most successful CPAs have gone to outsourcing tax returns and now have the time and money to differentiate themselves. Do you want to discuss how ABA Tax Accounting can put low cost and 100% U.S. based outsourcing solutions to work for you? For no obligation free consultation contact us today!
Amare Berhie, Managing Member
amare@abataxaccounting.com
612-282-3200
866-936-0430 Toll free

Monday, October 22, 2012

Why Outsource Your Payroll?

ABA Tax Accounting | Domestic Outsourcing | St. Paul, MN Accounting Firm

Strategic Domestic Outsourcing - Small-business owners have three basic options for processing payroll: the "do-it-yourself" method, bookkeeping software, and outsourcing to a professional payroll provider.

What makes outsourcing the better choice? Outsourcing reduces the complexity and risk of running your own payroll, while helping ensure greater accuracy, with up-to-date tax rates and regulatory information that can be lacking in a software solution. Other advantages of payroll outsourcing include:
  • Compliance with government regulations
  • Online solutions
  • Data security
  • Additional human resource services
  • And more
Do you want to discuss how ABA Tax Accounting can put low cost and 100% U.S. based outsourcing solutions to work for you? For no obligation free consultation contact us today!
ABA Tax Accounting 
Amare Berhie, Managing Member 
amare@abataxaccounting.com 
612-282-3200 
866-936-0430 Toll free 
http://www.abataxaccounting.com 
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Friday, October 19, 2012

Tax Planning for 2013, Various Tax Benefits Increase Due to Inflation Adjustments

ABA Tax Accounting | Tax Planning | St. Paul, MN Accounting Firm

Federal, State, Local and International Taxes - For tax year 2013, the Internal Revenue Service announced today annual inflation adjustments for more than two dozen tax provisions.
  • The annual exclusion for gifts rises to $14,000 for 2013, up from $13,000 for 2012.
  • The amount used to reduce the net unearned income reported on a child’s tax return subject to the “kiddie tax,” is $1,000, up from $950 for 2012.
  • The foreign earned income exclusion rises to $97,600, up from $95,100 in 2012.
Details on these inflation adjustments and others such as the low-income housing credit, the dollar limits for high-deductible health plans and other amounts can be found in Revenue Procedure 2012-41. Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

IRS Announces 2013 Pension Plan Limitations

ABA Tax Accounting | Tax Services | St. Paul, MN Accounting Firm

Federal, State, Local and International Taxes - Taxpayers May Contribute up to $17,500 to their 401(k) plans in 2013. The IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2013.  In general, many of the pension plan limitations will change for 2013 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment.  However, other limitations will remain unchanged because the increase in the index did not meet the statutory thresholds that trigger their adjustment. Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

IRS Clarifies Temporary ITIN Application Requirements for Noncitizens with Tax Extensions and Many Foreign Students

ABA Tax Accounting | International Tax Services | St. Paul, MN Accounting Firm

International Tax - Effective Oct. 2, 2012, the IRS implemented two separate clarifying changes to its temporary procedures for issuing Individual Taxpayer Identification Numbers (ITINs). 

First, the IRS will allow individuals studying in the United States under the Student Exchange Visitors Program (SEVP) to get ITINs under a streamlined procedure. SEVP participants already provide documentation to the Department of Homeland Security under the requirements of that program, and will need a letter from their educational institution verifying their status.

Second, the IRS is creating special procedures for taxpayers who have an approved Tax Year 2011 extension to file their completed tax returns.

Under these temporary procedures, eligible taxpayers will be allowed to have their original documents certified by a Certifying Acceptance Agent (CAA) or a SEVP approved institution as appropriate rather than mailing originals to the IRS. Extension filers that choose to not submit originals documents or copies certified by the issuing agency, must apply through a CAA and individuals studying under the SEVP will be required to apply through a university, college or other SEVP-approved institution. For both groups, these temporary procedures cover applications for the primary applicant, their spouse and dependents.

Designed specifically for tax-administration purposes, ITINs are only issued to people who are not eligible to obtain a Social Security Number. ITINs assist the IRS with the collection of taxes from foreign nationals, nonresident aliens and others who have filing or payment obligations under U.S. law. The tightened interim guidelines, announced in June, remain in effect for most other noncitizens. More information about ITINs and these interim guidelines can be found at 2012 ITIN. Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

Thursday, October 18, 2012

Strategic Onshore Outsourcing: Freeing You to Focus on What Matters Most.

ABA Tax Accounting | Domestic Outsourcing | St. Paul, MN Accounting Firm

Outsourced Accounting - In a competitive global environment, the Finance & Accounting function is the most essential fundamental of any enterprise. It ensures effective operations with requisite compliance and controls, balancing expense vs. growth, reducing the cash cycle and maximizing return on investment. Consequently, businesses are channelizing their finance function to achieve superior results. Resource optimization and an innovative delivery model have facilitated Finance and Accounting Outsourcing (FAO) to become a desired financial transformation strategy. Do you want to discuss how ABA Tax Accounting can put low cost and 100% U.S. based outsourcing solutions to work for you? For no obligation free consultation contact us today!
Amare Berhie, Managing Member
amare@abataxaccounting.com
612-282-3200
866-936-0430 Toll free

Wednesday, October 17, 2012

Strategic Domestic Outsourcing Lowers Overhead Costs

ABA Tax Accounting | Domestic Outsourcing | St. Paul, MN Accounting Firm

Strategic Outsourcing will give your business a competitive advantage and provide a reduction in expenditures.  One of the prevalent motives why businesses seek an outsourcing partner is in order to lower overhead costs and expenses. Immediate savings to the client are derived from the vendor’s lower cost in wages, benefits, and operational expenses. Do you want to discuss how ABA Tax Accounting can put outsourcing solutions to work for you? For no obligation free consultation contact us today!
Amare Berhie, Managing Member
amare@abataxaccounting.com
612-282-3200
866-936-0430 Toll free

Tuesday, October 16, 2012

Tax Strategy: Income Acceleration Techniques

ABA Tax Accounting | Tax Services | St. Paul, MN Accounting Firm

Income acceleration techniques for 2012 year-end planning  - The acceleration of income for tax purposes has not traditionally been a top-shelf strategy because of the simple fact that the delay of taxable income means the postponement of tax into a subsequent year, which is usually a good thing based upon time-value-of-money principles. The same reasoning applies to postponing deductions. Read the Full Story at Accounting Today (10/01). Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free



Tax Strategies for Individuals - The "Nanny Tax" Rules: What to Do If You Have Household Employees

ABA Tax Accounting | Tax Services | St. Paul, MN Accounting Firm

If you have a household employee, you may need to pay state and federal employment taxes. Which forms do you need to file for your household employees? Is your maid, housekeeper, or babysitter covered by the rules? Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

Monday, October 15, 2012

IRS challenges "completed contract method" in court case

ABA Tax Accounting | QuickBooks Premier: Contractors Edition | St. Paul, MN Accounting Firm

Small Business Accounting  An accounting practice known as "completed contract method" is at the heart of a Tax Court trial scheduled to begin Nov. 5. If the Internal Revenue Service wins the case, it could mean property developers would be taxed on a "percentage-of-completion" accounting method, which is less favorable to businesses. Read the full story at Reuters (10/11). Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

Thursday, October 11, 2012

Do you have Payroll Tax Problems?

ABA Tax Accounting | Payroll Tax Problems | St. Paul, MN Accounting Firm

Federal, State, Local and International Taxes - If you are behind on paying payroll taxes for your company, WATCH OUT!!! The IRS is extremely aggressive pursuing collection of this type of tax. They would rather seize your business assets, close you down, sell your assets at auction, and put you out of business than allow you to continue amassing additional payroll tax liabilities.

If you are behind on your payroll taxes, DO NOT meet with the IRS on your own. How you answer their initial questions can determine whether you stay in business or not. It is critical you hire a professional representative who knows how the IRS operates. Considering a Tax Professional? For no obligation free consultation contact us today! 
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

Wednesday, October 10, 2012

Tax-filing and Payment Extensions Expire Oct. 15

ABA Tax Accounting | Tax Services | St. Paul, MN Accounting Firm

Federal, State, Local and International Taxes - IR-2012-73 The Internal Revenue Service today urged taxpayers whose tax-filing extension runs out on Oct. 15 to double check their returns for often-overlooked tax benefits and then file their returns electronically using IRS e-file system.

Many of the more than 11 million taxpayers who requested an automatic six-month extension this year have yet to file. Though Oct. 15 is the last day for most people, some still have more time, including members of the military and others serving in Iraq, Afghanistan or other combat zone localities who typically have until at least 180 days after they leave the combat zone to both file returns and pay any taxes due. Considering a Tax Professional? For no obligation free consultation contact us today!  
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

As self-employed how do I file my annual return?

ABA Tax Accounting | Tax Services | St. Paul, MN Accounting Firm

Federal, State, Local and International Taxes - To file your annual tax return Self-Employed Individual, you will need to use Schedule C or Schedule C - EZ to report your income or loss from a business you operated or a profession you practiced as a sole proprietor.

Small businesses and statutory employees with expenses of $5,000 or less may be able to file Schedule C-EZ instead of Schedule C.

In order to report your Social Security and Medicare taxes, you must file Schedule SE (Form 1040), Self-Employment Tax. Use the income or loss calculated on Schedule C or Schedule C-EZ to calculate the amount of Social Security and Medicare taxes you should have paid during the year. Considering a Tax Professional? For no obligation free consultation contact us today!  
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

IRS increases focus on IC-DISC use by U.S. exporters

ABA Tax Accounting | IC-DISC | St. Paul, MN Accounting Firm

International Tax - U.S. exporters increasingly are using interest-charge domestic international sales corporations as tax-planning devices, putting the issue on the Internal Revenue Service's radar. The IRS released an audit guide for IC-DISCs this year that can help CPAs direct clients' decisions. Read the full story at The Tax Adviser (10/2012). Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, International Tax Advisor
612-282-3200 Toll free 866-936-0430

Tuesday, October 9, 2012

As Self-Employed Individual how do I make my Quarterly Tax Payments?

ABA Tax Accounting | Small Business Accounting | St. Paul, MN Accounting Firm

Self-Employed Individuals Tax Center - Estimated tax is the method used to pay Social Security and Medicare taxes and income tax, because you do not have an employer withholding these taxes for you. Form 1040-ES, Estimated Tax for Individuals, is used to figure these taxes. Form 1040-ES contains a worksheet that is similar to Form 1040. You will need your prior year’s annual tax return in order to fill out Form 1040-ES. Use the worksheet found in Form 1040-ES, Estimated Tax for Individuals to find out if you are required to file quarterly estimated tax.

Form 1040-ES also contains blank vouchers you can use when you mail your estimated tax payments or you may make your payments using the Electronic Federal Tax Payment System (EFTPS). If this is your first year being self-employed, you will need to estimate the amount of income you expect to earn for the year. If you estimated your earnings too high, simply complete another Form 1040-ES worksheet to refigure your estimated tax for the next quarter. If you estimated your earnings too low, again complete another Form 1040-ES worksheet to recalculate your estimated taxes for the next quarter. Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200  866-936-0430 Toll Free

Monday, October 8, 2012

What’s New in QuickBooks Premier Contractor 2013?

ABA Tax Accounting | QuickBooks Premier: Contractors Edition | St. Paul, MN Accounting Firm

QuickBooks Accounting Services - The latest version of QuickBooks Premier features a refined layout, simplified navigation, and other improvements to help you do more with QuickBooks.
  • Create 'Jobs by Vendor' report: Organize your job costs by vendor, and see which vendors still need to be paid.
  • Run 'Cost to Complete Job' report: Keep tabs on how much it will cost you to complete each job, and how your actual costs are comparing to your estimated costs.
  • Analyze job profitability: Customized job cost reports allow you to see a job's profitability on a detailed, task-by-task level.
  • Create job estimates and track change orders: As a job changes simply enter change orders into the estimate to keep track of the changes and their impact on your bottom line. Change orders are included on documents you print for your customer so that there are no surprises at the end of the job.
  • Bill clients progressively by job phase: Track and bill clients by time & material, job phase, or percentage completion, whatever works best for your unique business.
  • Track expenses that are not assigned to jobs: Identify expenses that haven't been categorized and easily assign them to jobs.

For no obligation free consultation contact us today!
612-282-3200 Toll Free (866) 936-0430
QuickBooks Accounting Services

What are My Self-Employed Tax Obligations? What New Business Owners Need to Know About Taxes

ABA Tax Accounting | Small Business Accounting | St. Paul, MN Accounting Firm

Self-Employed Individuals Tax Center - As a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly.

Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax. SE tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. In general, anytime the wording "self-employment tax" is used, it only refers to Social Security and Medicare taxes and not any other tax (like income tax).

Before you can determine if you are subject to self-employment tax and income tax, you must figure your net profit or net loss from your business. You do this by subtracting your business expenses from your business income. If your expenses are less than your income, the difference is net profit and becomes part of your income on page 1 of Form 1040. If your expenses are more than your income, the difference is a net loss. You usually can deduct your loss from gross income on page 1 of Form 1040. But in some situations your loss is limited.

You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions. Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

Friday, October 5, 2012

What’s New in QuickBooks Premier 2013

ABA Tax Accounting | QuickBooks Premier | St. Paul, MN Accounting Firm

QuickBooks Accounting Services - The latest version of QuickBooks Premier features a refined layout, simplified navigation, and other improvements to help you do more with QuickBooks.
  • View customized sales and profitability reports: Keep track of your biggest moneymakers so you'll know which products to promote and keep in stock, and which to drop from your line.
  • Access your inventory items all in one place with the Inventory Center: Easily find and locate inventory tasks by accessing your inventory items and reports all in one place with QuickBooks Inventory Center. Add a notes field to each item for quick identification.
  • Track your balance sheet by class: Now you can now track data separately by location, department, or profit center with a single, easy to access report.
  • Run 'Cost to Complete Job' report: Keep tabs on how much it will cost you to complete each job, and how your actual costs are comparing to your estimated costs.
  • Document and track change orders: As a job changes, simply enter change orders into the estimate to keep track of the changes and their impact on your bottom line. Change orders are included on documents you print for your customer so that there are no surprises at the end of the job.
  • Bill clients progressively by job phase: Track and bill clients by time & material, job phase, or percentage completion, whatever works best for your unique business.
  • Track time and expenses by employee, project, client, or service & create an invoice: Decide who to bill by seeing all clients with unbilled time and expenses on a single screen. No need to create an invoice from scratch--just open the Invoice for Time & Expenses screen and select the client and job combination. Outstanding billable time and expenses are transferred directly to the invoice. 

For no obligation free consultation contact us today!
612-282-3200 Toll Free (866) 936-0430



What is the Life Cycle of an Exempt Organization?

ABA Tax Accounting | Non-Profit Organizations | St. Paul, MN Accounting Firm

Non-Profit Organizations - Organizations that meet the requirements of Internal Revenue Code section 501(a) are exempt from federal income taxation. In addition, charitable contributions made to some section 501(a) organizations by individuals and corporations are deductible under Code section 170.

Here are the five stages in an organization's life cycle:
  • Starting Out: Creating an organization under state law, acquiring an employer identification number, and identifying the appropriate federal tax classification.
  • Applying for Exemption:  Acquiring, completing, and submitting application forms; how the IRS processes applications; and getting help from the IRS during the application process.
  • Required Filings:  Annual exempt organization returns, unrelated business income tax filings, and other returns and reports that an organization may have to file.
  • Ongoing Compliance:  How an organization can avoid jeopardizing its tax-exempt status, disclosure requirements, employment taxes, and other ongoing compliance issues.
  • Significant Events:  Audits, private letter rulings, and termination procedures.

Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

Who is Self-Employed? What New Business Owners Need to Know About Taxes

ABA Tax Accounting | Tax Services | St. Paul, MN Accounting Firm

Federal, State, Local and International Taxes - Generally, you are self-employed if any of the following apply to you.
  • You carry on a trade or business as a sole proprietor or an independent contractor.
  • You are a member of a partnership that carries on a trade or business.
  • You are otherwise in business for yourself (including a part-time business)

Self-Employed: Don't Forget to Deduct Health Insurance Costs this Year. Under the Small Business Jobs Act of 2010, can reduce your net self-employment income by the amount of your self-employed health insurance deduction on Form 1040. Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

Thursday, October 4, 2012

What's New in QuickBooks Pro 2013?

ABA Tax Accounting | QuickBooks Pro | St. Paul, MN Accounting Firm

QuickBooks Accounting Services - The latest version of QuickBooks Pro features a refined layout, simplified navigation, and other improvements to help you do more with QuickBooks.

IMPROVED! Find what you need with improved readability and customizable navigation
Get the information you need more easily. Larger fonts and a refined color scheme improve readability to help you focus on the task at hand. The new, customizable left navigation bar provides easy access to your open windows and most common tasks.

IMPROVED! Accomplish key tasks with the Ribbon tool bar and simplified layout
Invoices, Estimates, Sales Orders, and other forms now have a simplified layout for better access to actions previously hidden or requiring several clicks to execute. The new Ribbon format makes finding the actions you need faster and easier.

IMPROVED! Customize contact information fields in the Customer, Vendor, Employee Centers
Expanded contact information fields are now more customizable, allowing up to 8 contact fields and multiple notes per contact. New tab functionality enables you to view transactions, contacts, to-do's, and notes on the same page.

IMPROVED! Do more with add-on applications
Extend the use of your QuickBooks with add-on applications and money-saving features right in QuickBooks (additional purchase may be required).
For no obligation free consultation contact us today!
612-282-3200 Toll Free (866) 936-0430