Winter Tax Tips for Business - 2014

12 Steeplebush Road

Essex Junction, VT 05452

802-878-0990

www.sheltratax.com

Sheltra Tax & Accounting, LLC is a full-service tax preparation, tax resolution, and full-service bookkeeping firm with offices in Essex Junction, Vermont. We are committed to providing our clients the highest level of professional services.

We emphasize quality service and personal attention. Since 2002 we have prepared income tax returns for individuals, corporations, partnerships, non-profits and provided full-service bookkeeping. We provide a variety of services to individuals, families, small and medium-sized businesses across various industries.

We enable businesses and individuals to streamline the often much-dreaded tasks of bookkeeping and tax services to one accounting solution.

If you hire Sheltra Tax & Accounting, LLC to represent you as your IRS tax consultant, you can rest easy knowing that you have a highly qualified and experienced Enrolled Agent working to solve your problems with the IRS.

Tax Tips Winter 2014 - Click on top to Download

Sheltra Tax & Accounting, LLC - It is Our Business to Know your Business

Sheltra Tax & Accounting, LLC is a full-service tax preparation, tax resolution, and full-service accounting firm with offices in Essex Junction, Vermont. We are committed to providing our clients the highest level of professional services.  

If you hire Sheltra Tax & Accounting, LLC to represent you as your IRS tax consultant, you can rest easy knowing that you have a highly qualified and experienced Enrolled Agent preparing your individual and business tax returns.  If you are delinquent with the IRS rest assured we will work to solve your problems.

No matter what your IRS Help needs are, whether it's personal or business taxes, you want a qualified, licensed representative that knows the appropriate procedures to help you. Gain the peace of mind you deserve. Let us handle your tax burdens.

• IRS Tax Appeal
• IRS Back Taxes Relief
• IRS Bank Levy Relief
• IRS Bankruptcy Tax Relief
• IRS Tax Returns Filing Services
• IRS Delinquent Tax Returns Help
• IRS Innocent Spouse Relief
• Installment Payment Plans
• IRS Offer In Compromise Help
• IRS Payroll Tax Problems
• IRS Penalty Abatement
• IRS Tax Lien Help
• IRS Wage Garnishment Relief
• IRS Tax Debt Collections

Whether you have a business or are just starting your business, Sheltra Tax & Accounting, LLC can help you achieve your goals.  Too often business owners do not have enough extra time to keep on top of their bookkeeping and tax preparation which is so vital to the success of their business. We understand how important accurate and confidential financial reporting is to your business.

We can make sure your payroll is processed correctly and the payroll taxes are paid timely.  We can monitor your business situation to make sure you are paying the correct amount of taxes.

We want you to feel confident that your accounting system accurately reflects your current situation.  The steps involved with basic bookkeeping can be overwhelming depending on the size of your business and the number of transactions.

Let us help you achieve your goal of operating a successful business!

 

Annual Filing Season Program Information from Joe McCarthy

Starting in 2016 a provision put into Revenue Procedure 2014-42 eliminates the limited representation rights that were granted to unenrolled preparers under Revenue Procedure 1981-38. See below.

Procedure 81-38 allows an unenrolled tax return preparer to represent a taxpayer during an examination if the tax return preparer prepared and signed the taxpayer’s return that is under examination (or prepared the taxpayer’s return that is under examination if there is no signature space on the form).

Revenue Procedure 81-38 is modified and superseded for tax returns and claims for refund prepared and signed (or prepared if there is no signature space on the form) after December 31, 2015. Unenrolled tax return preparers may not rely on Revenue Procedure 81-38 to represent taxpayers during an examination of a tax return or claim for refund prepared or signed after December 31, 2015. However, unenrolled tax return preparers may rely on Revenue Procedure 81-38 to represent taxpayers during an examination of a tax return or claim for refund prepared and signed (or prepared if there is no signature space on the form) on or before December 31, 2015.

http://www.irs.gov/pub/irs-drop/rp-14-42.pdf

What does this mean for unenrolled tax preparers? (Answer from Annual Filing Season Program FAQ page on the IRS website.)

10. Will I still be able to represent clients before the IRS if I don’t participate in the Annual Filing Season Program?

Yes, as a PTIN holder you will continue to have limited representation rights before limited offices of the IRS with respect to clients whose return you prepared and signed for calendar year 2015. However, beginning in 2016 only AFSP participants who obtain a Record of Completion will have those limited representation rights before the IRS for clients whose returns they prepared and signed. PTIN holders without an AFSP - Record of Completion or without other professional credentials will not be able to represent clients before the IRS in any matters.

Attorneys, CPAs, and enrolled agents will continue to have unlimited representation rights and can represent clients before any office of the IRS.

http://www.irs.gov/Tax-Professionals/Frequently-Asked-Questions-Annual-Filing-Season-Program

Are there any exceptions to the Annual Filing Season Program testing requirement? (Answer from Annual Filing Season Program FAQ page on the IRS website.)

6. Who is exempt from taking the AFTR course?

Some unenrolled preparers are exempt from the AFTR course requirement because of their completion of other recognized state or national competency tests. These exempt groups are still required to meet other program requirements, including 15 CE credits (10 Federal Tax Law, 3 Federal Tax Law Updates, and 2 Ethics).

• Return preparers who can obtain the AFTR – Record of Completion without taking the AFTR course are:
• Anyone who passed the Registered Tax Return Preparer test administered by the IRS between November 2011 and January 2013
• Established state-based return preparer program participants currently with testing requirements: Return preparers who are active members of the Oregon Board of Tax Practitioners and/or the California Tax Education Council
• SEE Part I Test-Passers: Tax practitioners who have passed the Special Enrollment Exam Part I within the past two years as of the first day of the upcoming filing season
• VITA volunteers: Quality reviewers and instructors with active PTINs
• Other accredited tax-focused credential-holders: The Accreditation Council for Accountancy and Taxation’s Accredited Business Accountant/Advisor (ABA) and Accredited Tax Preparer (ATP) programs

Four Things to Know about Net Investment Income Tax

Starting in 2013, some taxpayers may be subject to the Net Investment Income Tax. You may owe this tax if you have income from investments and your income for the year is more than certain limits. Here are four things from the IRS that you should know about this tax:

1. Net Investment Income Tax.  The law requires a tax of 3.8 percent on the lesser of either your net investment income or the amount by which your modified adjusted gross income exceeds a threshold amount based on your filing status.

2. Net investment income.  This amount generally includes income such as:

• interest
• dividends
• capital gains
• rental and royalty income
• non-qualified annuities

This list is not all-inclusive. Net investment income normally does not include wages and most self-employment income. It does not include unemployment compensation, Social Security benefits or alimony. Net investment income also does not include any gain on the sale of your main home that you exclude from your income.

After you add up your total investment income, you then subtract your deductions that are properly allocable to this income. The result is your net investment income. Refer to the instructions for Form 8960, Net Investment Income Tax for more on how to figure your net investment income or MAGI.

3. Income threshold amounts.  You may owe the tax if you have net investment income and your modified adjusted gross income is more than the following amount for your filing status:

 Filing Status                            Threshold Amount
 Single or Head of household            $200,000
 Married filing jointly                        $250,000
 Married filing separately                  $125,000
 Qualifying widow(er) with a child       $250,000

4. How to report.  If you owe this tax, you must file Form 8960 with your federal tax return. If you had too little tax withheld or did not pay enoughestimated taxes, you may have to pay an estimated tax penalty.

For more on this topic visit IRS.gov/aca. You can also get tax forms on IRS.gov or by mail by calling 800-TAX-FORM (800-829-3676).

Sheltra Passes the EA Exam

Press Release May 10, 2014 Diana Sheltra of Fairfax, VT  passed the Enrolled Agent Exam in February 2014. An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee. Enrolled agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years. Sheltra is President of the Vermont Chapter of National Association of Tax Professionals (NATP). Sheltra has been a member of NATP since 2003.  She joined the Vermont board in August 2011 as Vice President and Education Chair. Sheltra owns and operates Double Entry Bookkeeping, LLC located in Essex Junction, specializing in accounting, payroll, and income tax preparation.  She has been in private practice for over eleven years in Essex Junction, is now an Enrolled Agent,  and has worked in the tax and accounting field for over twenty-five years. Sheltra is originally from New York City and relocated to Vermont in 1995. She lives in Fairfax with her husband, Tom. She has a bachelor's degree in management from St. John's University and an associate degree in accounting from Champlain College.

Sincerely,   Diana Sheltra, EA Enrolled to Represent Clients before the IRS QuickBooks Pro Advisor Double Entry Bookkeeping, LLC.