IRS Mandatory Preparer Registration Begins!

IRS just launched their mandatory tax preparer registration system.  Make sure your preparer has registered and is legal!

All preparers are required to register and have a PTIN (Preparer Tax ID Number).  If your preparer does not have a PTIN then they are not registered or allowed to prepare and file tax forms with the IRS.  This will definitely cause problems for the preparer and could complicate things for the tax payer.

Word of caution - just because your preparer has registered does not mean they are qualified.  Ask them about their certifications, training, continuing education and length of experience.  In this economy many unemployed and underemployed are claiming to be experienced tax preparers and offering their services to the public to make an extra buck.  Do not be fooled but these newbies; they can really cause you problems with the IRS and then you will have to pay higher fees later to a real professional to fix their mistakes.   

If in doubt ask for a second opinion.  It can save you a lot of stress later.

Reg Baker, CPA

www.regbaker.com

Self Employed Medical Insurnace Deduction

For the first time ever the self the employed can deduct their medical insurance premiums on Schedule C shaving 15.3% off their tax bill. Don’t miss this!

Normally these insurance deductions are taken in other sections of the tax return helping reduce income taxes but not the 15.3% self employment tax. For the first time (for 2010 only, at least for now) this deduction can be taken on Schedule C and reduce self employment taxes (15.3%) and cut your income tax bill.

Although it is hard to understand why the Washington has finally decided to treat the self employeds the same as any other business this is an opportunity you don’t want to miss.

Let me know if I can be of any help!

Reg Baker, CPA
http://www.regbaker.com/

IRS Open House for Veterans

September 25th – IRS Open House for Veterans. 

See http://www.irs.gov/localcontacts/article/0,,id=220631,00.html for locations. 

See the IRS announcement below -

The Internal Revenue Service will host a special nationwide open house in 100 offices across the country on Saturday, Sept. 25 to help taxpayers –– especially veterans and people with disabilities –– solve tax problems and respond to IRS notices. IRS staff will be available on site or by telephone to help taxpayers work through issues and leave with solutions.


Here are five things you need to know about the special open house.

1. One hundred offices, at least one in every state, will be open from 9 a.m. to 2 p.m. local time.
2. In many locations, the IRS will partner with organizations that serve veterans and the disabled to offer additional help and information to people in these communities.  
3. IRS locations will be equipped to handle issues involving notices and payments, return preparation, audits and a variety of other issues.
4. Taxpayers requiring special services, such as interpretation for the deaf or hard of hearing, should check local listings and call the local IRS Office/Taxpayer Assistance Center ahead of time to schedule an appointment.
5. A complete list of IRS offices open on Saturday, Sept. 25 is available at IRS.gov.

Good Luck!

Reg Baker, CPA
http://www.regbaker.com/

Employee Appreciation

On my way to attend a early morning ceremony honoring outstanding employees. We need more of these!

We need to recognize the efforts of employees every chance we get. It is the employee that is the face of the company and it is critical to keep them motivate and “happy”. In many (if not all) companies it is the employee that can make or break its success.

If you see an opportunity to show appreciation to an employee (whether your company or someone else’s) please do so. Positive feedback is always appreciated and can be highly motivational.

Reg Baker, CPA
http://www.regbaker.com/

Obamacare Lawsuit Status

Obamacare Insurance Costs Skyrocket!

I recently attended a briefing on the Obamacare lawsuit filed by over 30 states; including Nevada (despite Nevada's Attorney General refusal to participate). I was stunned to learn that the average annual insurance cost that the young & healthy will need to cover when Obamacare is fully implemented is about $15,000 per household. This is a greatly inflated amount (for the young and healthy) that is necessary to cover the insurance costs for the rest of the nation.


Personally I am seeing 20 to 30 percent increases for my clients when they renew medical coverage for their employees. The insurance companies are increasing premiums due to the Obamacare mandates of not allowing preexisting conditions and eliminating caps on benefits to pay out. With these huge premium increases many employers are either passing the increase on to employees or dropping coverage all together. The promise Obama made of no increase cost has, as expected, proven to be false and misleading. It is no wonder that Obama’s approval rating is at record lows.


The other issue the lawsuit addresses is the federal government’s mandate that all citizens are required to purchase a specific product (i.e. medical insurance), regardless of state governments laws. This type of specific product federal mandate that overrules state laws has never, in the history of our nation, been done before. The theory is if we let this happen now what is next? Is a federal mandate to purchase a GM vehicle to support the auto industry or maybe borrow money to support the banking industry next? Silly as it may seem, there is no way to predict what will happen next. Just look at prohibition, $700 screwdrivers and federal grants to study the habits of ants in Africa


In the early days of our country, the states allowed a federal government to exist as long as state rights were not overridden. The Obama administration is attacking this very basic principal that our country was built on and intentionally ignoring our countries founding fathers intent.

Let’s hope that the lawsuit is successful.