Personal principles of tax preparation work

Posted Leave a commentPosted in Taxes

I have these four personal beliefs or principles that guide my tax preparation work. Publishing these as “beliefs” here does not mean that they reflect current realities in the industry. Tax preparation fees should be bench-marked in some manner simply because tax filing assistance is a service stemming from a government requirement that affects virtually everybody. Tax preparation […]

Self-prepared tax data hack shows risk in personal devices

Posted Leave a commentPosted in Computers and Internet, Taxes

The nation’s 3rd largest submitter of self-prepared income tax returns reports that data thieves stole customers’ financial information. The interesting part of this story is that the company, TaxAct, says the thieves stole the username and password data elsewhere (for example, hacking individual cell phones) and then used those legitimate log in credentials to gain […]

How to deal with an IRS penalty

Posted Leave a commentPosted in Small Business, Taxes

The IRS issues about 50 million taxpayer penalties each year to the pool of about 100 million taxpayers who file returns. That would 1 out of every 2 filers if the penalties were evenly distributed! In reality, multiple penalties are bundled together and assessed against fewer taxpayers. Yet the number of automated tax penalty assessments for […]

“Watcha gonna do?” – Tax professionals look at ACA compliance

Posted Leave a commentPosted in Employee Benefits, Small Business, Taxes

How should a tax preparer handle suspected ACA penalties for small businesses? This post is inspired by the recent frustration expressed by an accountant who is a Facebook friend. My friend commented on one of my posts that even after a substantial investment of his time to learn and apply provisions of the Affordable Care act, […]

Self-filing software leads to increase in audit representations

Posted Leave a commentPosted in Taxes

As the popularity of online self-prepared income tax filing grows – now approaching 50% of all tax filers – so does the incidence of tax evasion. Some of it is intentional effort to avoid paying taxes, other times just misunderstanding of complex tax laws. Tax practitioners like me are gradually seeing a shift of our work from income […]

Is my small business required to file Form 1095?

Posted Leave a commentPosted in Employee Benefits, Health Insurance, Small Business, Taxes

Form 1095 is a new informational tax return that is a requirement incorporated into of the Affordable Care Act. Some small businesses are required to file it for the first time this season. There are three types of Form 1095: 1095A from a Health Insurance Marketplace 1095B usually from an employer (the form discussed below […]