Grafton & Associates "Accountscout" Blog

 

Get Check Images To Survive Potential IRS Audit

By Tom Grafton

10/27/2011

We have had the rare (thankfully) IRS audit on a few of our clients the past year and one issue that has come up deserves comment here. Even as banks move toward paperless statements and are no longer returning customers’ deposit slips and cancelled checks, the IRS still requires those detail documents to support the income and deductions claimed on your tax return. Obtaining deposit slips and cancelled check images after the fact is very expensive and in some cases simply not available at any cost. So make sure you obtain the deposit and check images with your monthly bank statements so you have them readily available in the event of an audit.



Improving Password Security

By Tom Grafton

10/17/2011

 

Various studies generally conclude most identity theft crimes can be traced to lack of control over passwords. Due to the financial rewards of hacking, the bad guys continue to develop increasingly sophisticated computerized attacks on web based applications, networks, cloud and mobile devices. 
 
To improve your information security, consider applying the following basics to the passwords you use in your business and personal life:
 
  • Easy to memorize. Do not write down or it is useless to secure your data.
  • Kept private and not shared with others.
  • Not a word in the dictionary so the password is not guessable.
  • Complex. This term means the password is at least eight characters long and must include upper and lower case letters, numbers and special characters. 
  • Unique for each application. Do not use the same password for multiple purposes (banking, credit cards, networks, web commerce, etc.).
  • Changed regularly at least every sixty days. This is my least favorite requirement but an important one since most good passwords can be cracked in sixty days.



Reporting Identity Theft

By Tom Grafton

10/14/2011

 

We have had several reports of identity theft from our clients. Here are the actions to consider if you are a victim of this crime:
 
  1.  Contact the fraud department of any of the three leading credit bureaus (Equifax, Experian, and TransUnion) to place an alert on affected credit files. The alert prompts creditors to contact the victim before opening new accounts or making changes to existing accounts.
 
  1.  Immediately close accounts that have theft activity. Open any replacement accounts using strong passwords.
 
  1.  File a police report and provide copies to creditors who may require proof of the crime.
 
  1.  File a complaint with the Federal Trade Commission which maintains a database used by police investigations.
 
  1.  Consult www.consumer.gov/idtheft for further information.
 



State Struggles With 2010 W-2 Filings

By Tom Grafton

10/10/2011

 

We had several clients that electronically filed their W-2’s with the State of Nebraska in 2010 and are just now getting notices of supposed non-filing.  We are working through what appears to be a broad problem with the State of Nebraska’s filing software.  If you have received a similar notice, feel free to call Jen Lyman at our Firm.  402-486-3600.



IRS Announces Distaster Victims Tax Relief

By Tom Grafton

08/19/2011

 

 

Flooding victims in the Nebraska counties of Boyd, Burt, Cass, Dakota, Dixon, Douglas, Knox, Sarpy and Washington have more time to make June 15, 2011 tax estimate payments and payroll tax deposits.  Additional information can be found at www.irs.gov/newsroom/article/0,,id=108362,00.html.



Mileage Rate Increase

By Tom Grafton

06/24/2011

 

Due to the recent high gas prices, the IRS announced today it is raising the tax deduction for business use of automobiles from 51 cents to 55 1/2 cents a mile effective July 1, 2011. So for taxpayers that use this mileage rate for their automobile tax deduction, the first six months of 2011 will be at 51 cents and the last six months at 55 1/2 cents.



IRS Payroll Tax Notices

By Tom Grafton

06/16/2011

 

We’ve recently noted a rash of payroll tax notices from the IRS claiming non-filing by the taxpayer/employer. In most cases the supposed exception is easily explained such as the tax payer has no employees or is a seasonal employer. Oddly, this information is already on file with the IRS, but if you ignore the notice do so at your own peril. If you receive one of these notices, we can help. Give us a call.
 



1099 Repoting Requirements

By Tom Grafton

06/02/2011

We are pleased to see congress repeal the form 1099 reporting requirements for both small businesses and landlords recently. These requirements were effective for 2011 and came from the May 2010 Healthcare Overhaul Bill and the September 2010 Small Business Jobs Act. Both were bad ideas as far as trees are concerned.



Landlords Must File Form 1099s for 2011

By Tom Grafton

12/10/2010

 

If you own commercial or residential rental real estate, you should call our office, because effective January 1, 2011, you are required to prepare Form 1099s,  reporting the total payments you made to individuals and corporations from which you bought $600 or more in goods or services for the year. The time to gather this information (name, address, Federal ID number) on your vendors is before you pay them.

 

There have been several attempts by Congress to remove this requirement, but the Senate continues to fail to pass the repeal. Call our office if you have questions.



Healthcare Act Includes 2010 Insurance Tax Credit

By Tom Grafton

07/14/2010

 

Qualified small business employers, including exempt organizations, that purchase health insurance for their employees in 2010 can receive a tax credit up to 25% of its share of health insurance premiums paid for employees. Full credit is available for those employers with up to ten employees that average no more than $25,000 in average wages paid per employee. The credit phases out for employees with up to twenty five employees and average wages up to $50,000. The employer must pay at least 50% of health insurance premiums to qualify. The credit cannot also exceed income tax withholdings from employee wages and employee and employer Medicare tax liabilities for the year. The credit is a refundable credit so even if the employer has no taxable income, the employer can receive the credit as a tax refund. For more information go to www.irs.gov.



Federal 30% Energy Efficiency Tax Credit Continues Through 2010!

By Tom Grafton

06/25/2010

 

Many of our home owner clients took advantage of the 30% Energy Efficiency Tax Credit in 2009. The credit continues for 2010 for 30% of the first $5000 of qualifying exterior windows, doors, heating, cooling, and insulation paid and installed by December 31, 2010. Remember that amounts taken for the credit in 2009 count against the $5000 total for 2010. For more information give me a call (402-486-3600) or visit www.energystar.gov and click on Tax Credits for Energy Efficiency.



2010 Nebraska Energy Efficiency Appliance Rebate Program

By Tom Grafton

03/29/2010

 

Similar to the cash for clunkers program last year, you can receive rebates from $50 to $250 for specified refrigerators, clothes washers, dishwashers, central air conditioning, heat pumps and furnaces. You are limited to two rebates per customer and must wait until the program is started, likely in April or May 2010.
 
Full details are at Nebraska.gov, Nebraska Energy Office, under Energy Star information.
 
Lincoln Electric System (LES) also has their sustainable energy program with incentive payments from $150 to $500 per ton for high efficiency heat pumps and central air conditioning. Both LES and Nebraska programs are first come, first served, until available funds are exhausted. See LES.com for more information.
 



Why Turbo Tax does not work for everyone.

By Tom Grafton

03/22/2010

 

We had a new client last week that prepared his own return in 2008. Simple enough; single Dad, student, one child and rents his home. He answered the tax software questions as filing status single, no earned income credit and no education expense. We amended his 2008 tax return for these issues and got him back $3700 in refunds. I don’t think he is going to use Turbo Tax next year.
 



Events

11/02/11 - Rule of Thumb Small Business Conference - Southeast Community College Entreprenual Center 10:15 am
10/26/11 - Presentation to HomeServices of Nebraska - Tax Prep for Realtors
10/17/11 - "The ABCs of 2011 Tax Planning" at The Landing
09/28/11 - War Stories of a Small Business Person: Union College Administration Building: 7:00pm
03/18/11 - Tom is Judging the Ne DECA State Career Development Conference

I would recommend Grafton & Associates, P.C. for the following reasons:
• They make it very easy for me. They tell me exactly what they need and take it from there.
• They stay abreast of the real estate market. Tom Grafton is......read more

Cindy Foster - Home Real Estate