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There are oodles of reasons to push the ‘pause’ button and enjoy June.

Portland is particularly lucky this year -both the Starlight Parade & the Grand
Floral Rose Parade  experienced dry weather.

Father’s Day arrives on the 3^rd Sunday of the month, allowing several weeks
for Dad to drop hints to the family about what he really wants, instead of what
he usually gets.

 (Here’s a couple of ideas from us)

www.dotgolf.com
www.eastportlandchamberofcommerce.com/golf-signup
www.colwoodgolfclub.com

Summer officially arrives 5 days later, but our yards, gardens, trees, and wildlife already have it figured out.  Their
internal calendar is not dependent on our visual aids.

I challenge you to stop and inhale June with all the beauty it represents in your life.

…and have a JOLLY good time doing it!

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When you receive a letter or e-mail from any Government Agency demanding funds with an ‘OR ELSE’ deadline included – please contact The Bookkeeping Company, LLC immediately before responding! 

Don’t assume it’s legitimate and send money as directed. There’s an increasing number of ‘scammers’ that target hard-working, unsuspecting business owners. They’re counting on convincing you to respond so something bad doesn’t happen to you. 

PLEASE FIGHT BACK! 

Send us a copy of the ‘demand’ letter – we can find out quickly if it’s REAL.
If it is, we’ll explain it to you.
If it’s NOT, we’ll WARN the rest of our clients immediately by e-mail, and post a SCAM ALERT on Facebook. 

 Thanks in advance for being part of the SOLUTION instead of part of the problem! 

FYI: The “Art Tax” for Portland residents is REAL, and is due April 15, 2013. More info: www.artstax.net 

Another FYI: The IRS does not use e-mail to send notices.

If you have not received your W-2’s by February 14^th, here is a course of action:

A)     Contact your employer and let them know.

B)      If you do not receive a response within a reasonable period of time, contact your tax preparer.

C)      You will need a copy of your final 2012 pay stub showing all the Year-To-Date deductions.

For more info…call The Bookkeeping Company (503)252-9197, or visit www.IRS.gov.

BLOG – A WORD WITH A HANDICAP

I wonder…would more people be willing to BLOG, if the word itself sounded lighter & easier?

People like me are susceptible to the nuance of words…and BLOG tends to make me feel ‘bogged down’ and time-starved.

One tiny bit of research says BLOG comes from a shortened form of “web log” – while another interpretation believes its history is tied to the idea of a ‘communication diary’.

“Web log” gets my vote, but doesn’t solve the nuance problem. 

“Communication diary” is by definition confusing to me. “DEAR DIARY” entries are generally a safe place to reveal our most private feelings & revelations – the ones we have no intention of sharing with anyone else!

Here are a few replacement possibilities:    
            Quick-Key, Zip-Up, Log-Light, Easy-Share, Keyed-Up, Speed-Com, and Fast-Talk.

 Unfortunately, I find BLOG better than these new options.

 I thought of one gem, however, I really like.  What do you think of  “WHIZ-ard”?

 Yeah, I know…I have to put this in a BLOG to find out!

Banks and other payment settlement entities must file Form 1099-K.  The 1099-K form has the total gross amount of the year transactions on it. It also includes the name and address of the recipients and the taxpayer’s identification number. 

This form will help the IRS by being able to compare the amounts associated with the credit card holder and their income from the tax return filed, thus “reducing the tax gap” according to the IRS.

The IRS will issue letters to any business person who shows an unusually high portion of receipts from card payments and/or other reportable 1099-K transactions.

There will be five different kind of letters sent out by the IRS.  Depending on the letter, there will be different instructions given.  Follow the instructions and/or talk to your tax advisor.

Taxpayers are warned that “failure to respond may also result in a proposed assessment or further compliance action”.

Keeping good records is very important in the 1099-K compliance process.  Talk to your tax advisor for further information and advice regarding this issue.

The fair-market value of noncash gifts must be included in employee wages subject to federal employment taxes. [1] 

The following gifts are nontaxable fringes if their value is nominal and are not frequently given:
Fruit baskets
Hams
Turkeys
Wine
Flowers
Entertainment tickets (show or sporting event) 

Gift certificates (“cash in kind”) are to be included in employee wages and are subject to employment taxes even if the gift certificate is for a fringe item such as a ham.  A ham is nontaxable, but a gift certificate for a ham is taxable. [2] 

The cost of employee parties and picnics is completely deductible to the business and is nontaxable to the employees as a fringe.  These parties and picnics must be infrequent and given to promote the health, goodwill, contentment, or efficiency of the employees. [3]

Now is the time to start thinking about yearend tax planning. 

               Are your books current?
               Will you owe taxes?
               Do you need to purchase equipment?
               Have you paid in enough estimated taxes? 

Now is a good time to do a projection to see where you stand tax wise.  What would you owe if taxes were due today?  What would you project for the rest of the year?  If you have a tax liability, what can you do to minimize it? 

Heath Insurance premiums tax credit: There are some restrictions, but if you pay at least half of your employees’ premiums, you  may be entitled to a credit on your tax return.

 Independent Contractors vs. employees: The IRS is always looking at this.  Be sure that your IC’s (subcontractors) are not your employees.  See this link: www.irs.gov/pub/irs-pdf/p1779.pdf

Add Some Fireworks to Your Business Plan

Why not apply some 4^th of July drama to your business routine?

BLAST PROCRASTINATION out of the water!

Pick up the phone and make that call you KNOW you should have made a long time ago.

Stop & thank the clients and customers responsible for much of your success.

Praise the employees & co-workers who support you – when you’re not always at your best.

Express your gratitude to other business owners who sent customers in your direction over the years.

Find a ‘cause’ or charity you can believe in…and incorporate activities for its benefit with your staff.

Help support small business owners around you – Promote their businesses as well as your own.

Tell yourself what you’re doing RIGHT at least once a day! 

Remember…it just takes a little spark to set off a bunch of fireworks!

MARCH is More than a Month – It’s a VERB

February 2012 has given us an extra day to “LEAP” into our future.

The whole idea of ‘March’ makes me happy. 

I feel Spring racing toward me as I drive home from work without having to turn on my headlights, even if my windshield wipers are operating on ‘high’.

Despite the roar of March winds and occasional torrential rains, the unpredictability of the month promises nature is on schedule and magnificent changes are on the way.

The buds are barely able to contain themselves within the confines of their wind-whipped limbs.

Now from a ‘verb’ point of view…we all march to different drummers.

 Some people believe in the military precision of measured steps and formality.  Others enjoy the measured steps part…but prefer to do it with music, much fanfare, and laughter. Occasionally, we all find ourselves having to take a long, tiring journey on foot…alone with our thoughts.

Despite the differences in our personal marching preference, we all share the motion of forward movement and steady progression in one direction or another.

I’ve personally tried going in more than one direction at a time…a futile effort resulting in one REAL direction…backwards.  The good thing about ‘backwards’ is…after you’ve been there a few times, you start to recognize it right away!

We can learn to march to a different drummer – no matter what month it is!

Before filing your 2011 Federal Income Tax return, go to www.IRS.gov for important information on tax changes & updates, plus view new legislation that may affect your tax return. 

Here are a few of the important changes:

Due date of return. File your federal tax return by Tuesday, April 17, 2012.

 Standard deduction and exemptions increased.

• Deductions for each exemption increased $50 to $3,700 for 2011.

Self-employed health insurance deduction. This deduction is no longer allowed on Schedule SE (Form 1040), but you can take it on Form 1040, line 29.

Roth IRAs. If you converted or rolled over an amount from a traditional IRA to a Roth IRA or designated Roth in 2010 and elected not to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return, and the remainder on your 2012 return.

 Mailing a return. The IRS changed the filing location for several areas. If you’re mailing a paper return, see the Form 1040 instructions for the correct address.  

Detailed information on these changes can be found on the IRS website – www.irs.gov.

 We have experienced tax professionals ready, willing, and able to file for you if you don’t want to do it by yourself…(503)252-9197.