Small Business Profit Maximizer!

Client Question: Should I Answer This E-Mail I Got From the IRS?

NO!!!  Any e-mail you receive from the IRS is a scam!

I am 100% sure of this, since the IRS never contacts taxpayers by e-mail.  The IRS recently released IRS Tax Tip 201319 reminding taxpayers about this, and how to avoid identity theft:

1. The IRS does not initiate contact with taxpayers by email or social media channels to request personal or financial information.

2. The IRS never asks for detailed personal and financial information like PIN numbers, passwords, or similar secret access information for credit card, bank, or other financial accounts.

3. The address of the official IRS website is www.irs.gov . Do not be misled by sites claiming to be the IRS but ending in .com, .net, .org, or anything other than .gov. If you discover a website that claims to be the IRS but you suspect it is bogus, do not provide any personal information on their site and report it to the IRS.

4. If you receive a phone call, fax, or letter in the mail from an individual claiming to be from the IRS but you suspect they are not an IRS employee, contact the IRS at 1-800-829-1040 to determine if the IRS has a legitimate need to contact you. Report any bogus correspondence. Forward a suspicious email to [email protected].

5. You can help the IRS and other law enforcement agencies shut down these schemes. Visit the IRS.gov website to get details on how to report scams, and helpful resources if you are the victim of a scam. Click on “Reporting Phishing” at the bottom of the page.

So don’t respond to it! Don’t even open it, since it might contain malware or a virus. 

Be sure not to ignore any written letters from the IRS, though.  These are almost always legitimate.

What Is Marketing & Sales? EBook is FREE Now!!

This book focuses on this fact:  Every business is a marketing business!  A business without customers is a hobby.  This leads to the major problem that most new business owners discover—they may be good at what they do, but they must become experts at marketing and selling if they want to have a successful business! Go to http://amzn.to/13bb5Bk to check it out!

We Apologize For the Delay

First of all, we want to thank everyone for their patience. This tax season started with a delay. The IRS was not accepting any tax returns until January 30, 3013. As of today, the IRS is still not accepting all returns. If you’re planning on claiming the energy credit or filing a corporate return, you still have to wait.

Another complication we have encountered is new regulations issued by the IRS. Due to the enormous amount of fraud with tax credits, the IRS has required tax preparers to compile even more information from the taxpayer, which means it takes more time for us to prepare and review your tax return.

We have been taking about two weeks to complete tax returns (assuming we have all of the client's information and there are no dramatic changes in the return).  We check every return at least three times to ensure that all of our clients are filing an accurate tax return and claiming all the legal deductions and credits allowed.

Have You Checked The Latest ISB Mag Issue?

Our latest issue of ISB Mag is up! It includes an exclusive interview with Jill Konrath, best-selling author and super coach in the sales world.

It also includes many other articles about taxes, marketing, money matters, and business resources.

So go to iTunes and download our latest issue!

Learn How To Increase Employee Productivity For FREE!

We just released a new eBook, How to Improve Employee Productivity: An Owner's Guide to Building Profits and Management Systems Easily! For a limited time we are offering this eBook for FREE!! Just click on the following link to get your FREE eBook now! http://amzn.to/151fpCE

Marketing Tip of the Week- Join the Club

Business owners are constantly looking for new affordable ways to market themselves, myself included. With new technology there are a lot more tools available but the concept is still the same. In order to be run a successful marketing campaign it takes time and consistency.

I am constantly talking to business owners that complain that they’re not getting any “likes” on Facebook and very little activity on their website. As soon as they tell me this, I ask, “When was the last time you’ve updated either site?” Almost always the answer is a “couple months ago.”

Though there are all these cool new tools you still have to USE THEM! Marketing is still the same for any business. If you’re not serious about marketing and doing the work to promote your business, all the tools in the world won’t produce sales!!

So, be an active member of the marketing club!

IRS Releases New IRA, 401k and Pension Contribution Limits

If you contribute to an IRA, 401(k) or benefits the following are the new limits for the tax year 2012.

 

Client Question: My Child Is a Student and Works Part-Time—Who Gets to Claim the Education Credit?

The education credit or deduction is for tuition paid for on behalf of the taxpayer, their spouse, or their dependents.  So if a parent claims the child as a dependent, only the parent may claim the credit or deduction.  Check out my blog article titled Client Question:  Who Can I Claim as a Dependent? (http://bit.ly/TCSdZd), which details the rules on claiming a dependent.

If a parent claims a child as a dependent, only the parent may claim the education credit for the child.  If the parent is eligible to claim the education credit but chooses not to, only the student is allowed to claim the credit.

Like any good CPA, I need to add a disclaimer:  Unfortunately, it is impossible to offer comprehensive tax info over the Internet, no matter how well researched or written.  And remember, I love my readers, but having me bookmarked on your computer doesn’t make you a client:  Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

IRS Regulation Simplifies Home Office Deduction for 2013

The SBA estimates that there are 14 million home-based businesses, but only 3.4 million of these home-based businesses claimed the home office deduction in 2010.  Keith Hall, the national tax advisor for the National Association for the Self-Employed, said that the main reasons for not taking the deduction were the complexity of Form 8828 (Business Use of Your Home) and fear of an IRS audit.  For years, many tax advisors correctly advised their clients that there is an increased chance of being audited if they claim the home office deduction.

Starting in 2013 (returns due April 15, 2014) taxpayers can elect to use a simpler standard deduction of $5 per square foot, with a maximum of 300 square feet. This will result in a maximum $1,500 home office deduction.  Using this simplified method eliminates the capital gains tax on the profit from selling your home.  Additionally, the use of the simplified method allows the taxpayer to deduct home interest and property taxes in full on the Schedule A - Itemized Deduction Form.  The old method required you to subtract the portion of these expenses claimed as a home office deduction before deducting the rest on Schedule A3.

You may still use the old method if you use more than 300 square feet of your home in your business, and it would result in a higher deduction.

Be warned—the IRS still requires that the home office be used exclusively for business purposes.  If you use the kitchen table or the coffee table in your living room, you most likely will not qualify for the deduction.  You must be prepared to show that you use all or a portion of a room strictly for business.  I recommend taking pictures of the space being used in order to have proof to provide to the IRS.

Like any good CPA, I need to add a disclaimer:  Unfortunately, it is impossible to offer comprehensive tax info over the Internet, no matter how well-researched or written.  And remember, I love my readers, but having me bookmarked on your computer doesn’t make you a client:  Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

Article: Building Customer Communities Is the Key to Creating Value

Building Customer Communities Is the Key to Creating Value

http://blogs.hbr.org/cs/2013/02/building_customer_communities.html

Sent via Flipboard



Sent from my iPad