Thursday, February 28, 2013

Which entities are automatically classified as corporations?

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

Small Business Accounting - For federal income tax purposes, the following entities are automatically classified as corporations:
Ø  Any business entity classified as a corporation under federal or state statute or under federally recognized Indian Tribe;
Ø  Any association;
Ø  Any state statutory business entity if the statute refers to it as a joint stock company or association;
Ø  An insurance company;
Ø  Any state chartered banking entity if its deposits are insured under a federal statute;
Ø  Any business entity owned by a state or political subdivision thereof or by a foreign government;
Ø  Any business entity taxable as a corporation other than under the Internal Revenue Code's general definition of a corporation;
Ø  Business entities formed under numerous foreign jurisdictions. 
Considering a Tax Professional? For no obligation free consultation contact us today!
866-936-0430 Toll Free

Wednesday, February 27, 2013

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

ABA Tax Accounting | QuickBooks ProAdvisor
We understand the challenges you face and know that keeping accurate records is vital to your business success. We can offer guidance on everything from complex accounting questions to mastering advanced features of your QuickBooks accounting software. 

Friday, February 22, 2013

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

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

Tax Problems

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.  For no obligation free consultation contact us today!
Amare Berhie, Enrolled Agent
612-282-3200 Toll Free866-936-0430

Certified QuickBooks ProAdvisor

ABA Tax Accounting | QuickBooks ProAdvisor

QuickBooks Accounting - Accounting software programs like QuickBooks are ideally suited for small business owners. These programs have simplified the bookkeeping process for you. However, no accounting package can be operated properly without sufficient understanding of its features and functionality. It is a must for proper business management to complete the set up and installation properly. For no obligation free consultation contact us today!
Toll Free (866) 936-0430

Thursday, February 21, 2013

ABA Tax Accounting | Payroll Service

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

What constitutes a trade or business expenses

Small Business Accounting  - what must a taxpayer show in order to treat expenditure as a deductible trade or business expense? In order to deduct expenditure as a trade or business expense, generally taxpayers must show:
• The existence of a trade or business;
• A sufficient connection between the expenditure and the trade or business;
• That the expenditure was ordinary and necessary for the trade or business;
• That the expense was incurred while the taxpayer was “carrying on the trade or business”; and
• That the expenditure does not violate a specific public policy limitation.

Considering a Tax Professional? For no obligation free consultation contact us today!
866-936-0430 Toll Free

Child Tax Credit can save you Money

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

Child Tax Credit can save you Money
Federal, State, Local and International Taxes - If you have a child under age 17, the Child Tax Credit may save you money at tax-time. Here are some facts the IRS wants you to know about the credit.
·         Amount.  The non-refundable Child Tax Credit may help reduce your federal income tax by up to $1,000 for each qualifying child you claim on your return.
·         Qualifications.  For this credit, a qualifying child must pass seven tests:
1.    Age test.  The child must have been under age 17 at the end of 2012.
2.    Relationship test.  The child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, or stepsister. A child may also be a descendant of any of these individuals, including your grandchild, niece or nephew. You would always treat an adopted child as your own child. An adopted child includes a child lawfully placed with you for legal adoption.
3.    Support test.  The child must not have provided more than half of their own support for the year.
4.    Dependent test.  You must claim the child as a dependent on your federal tax return.
5.    Joint return test.  The child cannot file a joint return for the year, unless the only reason they are filing is to claim a refund.
6.    Citizenship test.  The child must be a U.S. citizen, U.S. national or U.S. resident alien.
7.    Residence test.  In most cases, the child must have lived with you for more than half of 2012.
·         Limitations.  The Child Tax Credit is subject to income limitations, and may be reduced or eliminated depending on your filing status and income.
·         Additional Child Tax Credit.  If you qualify and get less than the full Child Tax Credit, you could receive a refund even if you owe no tax with the refundable Additional Child Tax Credit.
Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200 Toll Free866-936-0430

ABA Tax Accounting | Why QuickBooks

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

Why You Should Use QuickBooks 
QuickBooks is the ideal business accounting software for small to mid-sized business owners. Here's 10 reasons why you should be using QuickBooks.
1.      You save time on bookkeeping and paperwork because many of simple bookkeeping tasks are handled automatically making it easier to run your business.
2.      You can easily generate the reports with the information you need, so you always know where your business stands. You instantly know whether you're making money and whether your business is healthy.
3.      You save money because QuickBooks is so affordable. You can use it to run a $5 million or a $25 million business for a few hundred bucks. Accounting software is truly one of the great bargains in business.
4.      Your business can grow with QuickBooks. QuickBooks will help you design a business plan to use when trying to secure a small business loan or line of credit or to plan for the future. QuickBooks will create a projected balance sheet, profit and loss statement and statement of cash flows in the format recommended by the U.S. Small Business Administration.
5.      You can customize QuickBooks to work the way you want. QuickBooks is specifically designed to be flexible and adaptable to a wide range of small businesses. To broaden its appeal, QuickBooks has recently added customized accounting packages for contractors, retailers, health care professionals, and non-profit organizations.
6.      You can rest assured knowing that QuickBooks is a stable, reliable and proven product. Hundreds of thousands of small businesses throughout the world have chosen QuickBooks as their accounting software. You can't go wrong with a software program with such an extensive installed user base.
7.      You save typing time and errors by sharing data between QuickBooks and over 100 business applications. You can even share data with popular programs, such as Microsoft Excel, Word, Outlook and ACT.
8.      You will get paid faster with QuickBooks online payments. E-mail an invoice or statement and with QuickBooks Online Billing, your customer can easily pay you with a credit card or bank account transfer. No more waiting for the check in the mail!
9.      You can easily accept credit cards. With QuickBooks Merchant Account Service, you can accept credit cards with ease. QuickBooks Merchant Account Service is the only credit card acceptance service integrated with QuickBooks software, which means you don't have to enter the same data twice. No additional software or hardware is required. Your customers can use Visa, MasterCard, or American Express.
10.  You can pay your bills and handle your banking online. Setup your current bank account in QuickBooks, and you're ready to pay your bills without licking envelopes, sticking stamps, or printing paper checks. Just write checks in QuickBooks as you normally would, then click a button and your participating bank does the rest! Pay anyone in the U.S. from your credit card companies to your pizza service. Online banking also lets you download your monthly statement from your participating bank directly into QuickBooks for easier reconciliation.

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


Wednesday, February 20, 2013

ABA Tax Accounting | Offer In Compromise

ABA Tax Accounting | Offer In Compromise | St. Paul, MN Accounting Firm

Offer in Compromise
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. IRS considers your unique set of facts and circumstances:
·         Ability to pay;
·         Income;
·         Expenses; and
·         Asset equity.
IRS generally approves an offer in compromise when the amount offered represents the most IRS can expect to collect within a reasonable period of time. Explore all other payment options before submitting an offer in compromise. The Offer in Compromise program is not for everyone. If you hire a tax professional to help you file an offer, be sure to check his or her qualifications. Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Enrolled Agent
612-282-3200 Toll Free866-936-0430

Important Reminders about Tip Income

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

Federal, State, Local and International Taxes - If your pay from your job includes tips, the IRS has a few important reminders about tip income:
·         Tips are taxable. Individuals must pay federal income tax on any tips they receive. The value of non-cash tips, such as tickets, passes or other items of value are also subject to income tax.
·         Include all tips on your return. You must include all tips that you receive during the year on your income tax return. This includes tips you received directly from customers, tips added to credit cards and your share of tips received under a tip-splitting agreement with other employees.
·         Report tips to your employer. If you receive $20 or more in cash tips in any one month, you must report your tips for that month to your employer. Your employer is required to withhold federal income, Social Security and Medicare taxes on the reported tips.
·         Keep a daily log of tips. You can use IRS Publication 1244, Employee's Daily Record of Tips and Report to Employer, to record your tips.
For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200 Toll Free866-936-0430

Tuesday, February 19, 2013

Are there tax advantages to operating as an S corporation?

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

Yes. The major federal income tax advantages of operating as an S corporation include:
•  single level of tax – Generally, the income of an S corporation is passed through to its shareholders and is taxed only once to the shareholders.
•  losses – Generally, S corporation shareholders may deduct their shares of the corporation's net operating loss on their individual tax returns in the year the loss occurs.
•  income splitting – S corporation shareholders can split income amongst family members through gifts or sales of stock thereby shifting income tax liability to family members in lower tax brackets.
•  alternative minimum tax – The AMT does not apply to S corporations (although their shareholders may be subject to the AMT).
Considering a Tax Professional? For no obligation free consultation contact us today!
866-936-0430 Toll Free

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

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

Mary J. Blige sings the blues over $900K tax lien
According to the entertainment website TMZ, Mary J Blige's financial problems have worsened after she was hit with a tax lien after allegedly failing to pay $901,769.65 in back taxes.

Sunday, February 17, 2013

ABA Tax Accounting | QuickBooks ProAdvisor

ABA Tax Accounting | QuickBooks ProAdvisor | St. Paul, MN Accounting Firm
We understand the challenges you face and know that keeping accurate records is vital to your business success. We can offer guidance on everything from complex accounting questions to mastering advanced features of your QuickBooks accounting software.

Saturday, February 16, 2013

CPA OUTSOURCING SOLUTIONS

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

Our cost-effective outsourcing solutions allow our clients to streamline their day-to-day business operations and lower overhead costs without sacrificing quality or productivity.
ABA Tax Accounting will prepare your tax return and provide you with the finished files. Types of tax returns processed by ABA Tax Accounting include:
  • Individual Tax Preparation - Form 1040, 1040NR, 2555
  • Business Tax Preparation - Form 1065, 1120, 1120s, 1120 IC-Disc, 1041, 990, 706

Wednesday, February 13, 2013

What is an S corporation?

ABA Tax Accounting | Small Business Accounting | St. Paul, MN Accounting Firm
Small Business Accounting  - An S corporation is a qualifying small business corporation that makes an election to be taxed under subchapter S of the Internal Revenue Code. Considering a Tax Professional? For no obligation free consultation contact us today!
866-936-0430 Toll Free

Tuesday, February 12, 2013

Taxable and Nontaxable Income

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

Federal, State, Local and International Taxes - Most types of income are taxable, but some are not. Income can include money, property or services that you receive. Here are some examples of income that are usually not taxable:
·         Child support payments;
·         Gifts, bequests and inheritances;
·         Welfare benefits;
·         Damage awards for physical injury or sickness;
·         Cash rebates from a dealer or manufacturer for an item you buy; and
·         Reimbursements for qualified adoption expenses.
Some income is not taxable except under certain conditions. Examples include:
·         Life insurance proceeds paid to you because of an insured person’s death are usually not taxable. However, if you redeem a life insurance policy for cash, any amount that is more than the cost of the policy is taxable.
·         Income you get from a qualified scholarship is normally not taxable. Amounts you use for certain costs, such as tuition and required course books, are not taxable. However, amounts used for room and board are taxable.
All income, such as wages and tips, is taxable unless the law specifically excludes it. This includes non-cash income from bartering - the exchange of property or services. Both parties must include the fair market value of goods or services received as income on their tax return.

If you received a refund, credit or offset of state or local income taxes in 2012, you may be required to report this amount. If you did not receive a 2012 Form 1099-G, check with the government agency that made the payments to you. That agency may have made the form available only in an electronic format. You will need to get instructions from the agency to retrieve this document. Report any taxable refund you received even if you did not receive Form 1099-G.

Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200 Toll Free866-936-0430

QuickBooks Premier 2013: Tailored for Your Business Needs!

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

QuickBooks Premier 2013: Tailored for Your Business Needs!
All the features of Pro, and advanced reporting and tools tailored to your business and industry.
·         View customized sales and profitability reports
·         Run 'Cost to Complete Job' reports
·         Track your balance sheet by class with an easy to access report
For no obligation free consultation contact us today!
612-282-3200 Toll Free (866) 936-0430

Monday, February 11, 2013

6 Tax Changes That Benefit Taxpayers for 2012

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

Federal, State, Local and International Taxes - Thanks to the passage of the American Taxpayer Relief Act of 2012 (ATRA), many tax provisions were extended retroactively (or made permanent) that are of benefit to taxpayers filing 2012 returns this year. Wondering how these changes affect you this tax season? Keep reading to learn more. To read more log on www.abatataxaccounting.com.  Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200 Toll Free 866-936-0430

Tax Problems - Does a tax lien automatically attach to the taxpayer's property?

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

Tax Problems - Does a tax lien automatically attach to the taxpayer's property?
Yes. A tax lien arises automatically when the taxpayer fails to pay an assessed tax, and the IRS does not need to take any action to validate the lien. The lien relates back and attaches to the taxpayer's property as of the date of the assessment. A tax lien is generally valid against a third party however, only if the IRS timely files a Form 668(Y) (Notice of Federal Tax Lien) with the appropriate authority. Once the notice of lien is properly filed, any third person acquiring the property acquires it subject to the tax lien. Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200 Toll Free866-936-0430

Sunday, February 10, 2013

QuickBooks Tips - Advanced Certified QuickBooks ProAdvisor

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

The Year You Go Mobile with Financial Data? There are only a few reasons why you wouldn't be using QuickBooks Mobile on your smartphone. Maybe you don't have a smartphone. Or when you're out of the office, you don't want to be available for accounting work. Or you might not think that it has enough features to make it worth using.

While the first two reasons are matters of personal preference, the third just isn't true. QuickBooks Mobile automatically--and almost instantly--synchronizes the data from your desktop or laptop computer copy of QuickBooks. While it's only focused on sales, not payables or payroll, you can manage receivables quite nicely whether you're in a customer's office or at a trade show or community event--or sitting on the couch at home. ! For no obligation free consultation contact us today!
612-282-3200 Toll Free (866) 936-0430

Saturday, February 9, 2013

What expenses are deductible as moving expenses?

ABA Tax Accounting | Tax Preparation Services | St. Paul, MN Accounting Firm
You may be able to deduct moving expenses whether you are self-employed or an employee. Your expenses generally must be related to starting work at your new job location. However, certain retirees and survivors may qualify to claim the deduction even though they are not starting work at a new job location

Only two categories of direct moving costs paid or incurred that are attributable to the taxpayer and the members of his household are deductible:
• costs of moving goods and personal effects; and
• traveling costs (including lodging but not meals) for the taxpayer's household.

For 2012, the standard mileage rate for using your vehicle to move to a new home is 23 cents per mile. Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200 Toll Free866-936-0430

How is taxable income computed?

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

U.S. Persons (U.S. citizens and resident aliens):
• gross income (except certain income earned working outside the United States or derived from U.S. possessions);      minus
• allowable deductions.
Nonresident Aliens:
• In general:
• tax on certain investment income from U.S. sources and on income effectively connected with a U.S. trade or business;      minus
•  allowable deductions.
• Exception: a nonresident alien married to a U.S. person (U.S. citizen or resident alien) may elect to be taxed as a U.S. person, as well.
Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200 Toll Free866-936-0430

QuickBooks Tip - Password Protecting QuickBooks

ABA Tax Accounting | QuickBooks ProAdvisor

Advanced Certified QuickBooks ProAdvisor - To password protect your QuickBooks data file click on Company in the menu bar, then Set Up Users. From here, you can assign a password for the main (Administrator) account in QuickBooks. You can also set up user accounts, passwords, and different levels of access if you have multiple people using your QuickBooks file. Make sure you keep your newly created password in a safe place (just in case you forget it!) For no obligation free consultation contact us today!
612-282-3200 Toll Free (866) 936-0430

Friday, February 8, 2013

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

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

QuickBooks Accounting Services - As Advanced Certified QuickBooks ProAdvisor, we can work with you to ensure that you are getting the most out of your QuickBooks. We Serve Any QuickBooks Client & Solve Any QuickBooks Problem. We offer low cost installation, setup, one-on-one training, customization & ongoing support. We ensure that you are set up correctly for your specific industry & that you are getting the most from your software. For no obligation free consultation contact us today!
612-282-3200 Toll Free (866) 936-0430