July, 2010

Changes to S Corporation Rules: Dead or Just Sleeping?

HR 4213 appears to have been blocked from passage, but they’ll be back in session July 12. There was a vote to reconsider a motion on an amendment to the bill because debate had not been formally ended by “invoking cloture.” Not too clear!

The original bill passed both the House and the Senate, but with differences between the versions. The senate committee trying to resolve the differences before it goes to the President seems to have dropped the ball, at least for now. This doesn’t mean it won’t come back at some point. Law is fun because you can always change things. Whee!

Please google your senators and tell them if you have an S Corporation (or if you don’t!) that with regard to HR 4213 Section 413:

You can check the latest actions at http://www.opencongress.org/bill/111-h4213/actions_votes

If you missed this last month, they’re trying to take away the exclusion for distributions from SE tax in “Professional Service Businesses” if the principal asset of the firm relies on 3 or fewer employees’ reputation and/or skill. If you’re not in a defined “Professional Service Business” or if you have more than 3 key employees, this doesn’t affect you.

Cafe Press

I’ve now got a “shop” on Café Press at www.cafepress.com/TaxBuddha in case you’d like to order your own Tax Buddha logo items. I’m also promoting a new slogan for Enrolled Agents: “Got Taxes? Enrolled Agents Save You!” (I recommend the White text on a Black shirt—that’s the seemingly blank design—it’s white text on a white field!)

Name Change for Enrolled Agents?

And now that I’ve got the T-Shirt in the works (see above), the IRS says “This would be an excellent time to change the name of Enrolled Agents.” To what, we don’t’ know. We’ll wait for the IRS to tell us, but a name suggested at the CSEA meeting in June was “Certified Tax Professionals” Since they’re adding a new “line” of preparers—possibly named Registered Tax Preparers—the IRS is using this as an opportunity to change the EA designation in title only. We’ll still be able to prepare taxes and represent taxpayers, but perhaps with a more descriptive name.

The Eightfold Path to Pay Less Tax and Avoid an Audit

Eight basic things business owners want to know printed in booklet form. This is ten years of working with the IRS Tax Code distilled down so it doesn’t take YOU ten years.

Just another way we’re trying to simplify your life. And the purchase is tax deductible!

You can order from Amazon.com. Here’s the link to Amazon: http://www.amazon.com/Eightfold-Path-Less-Avoid-Audit/dp/0615233422/ref=sr_1_22?ie=UTF8&s=books&qid=1226611038&sr=1-22

The booklet also contains a sections on how returns are selected for audit, when to seek professional help, and how long to keep your tax records.

EBAEA—2nd Vice President

June 16th, I was installed as the 2nd Vice President of the East Bay Association of Enrolled Agents www.EBAEA.org where I’ll be the “communications” committee chair. I’ll also be teaching a number (but not all) of the Special Enrollment Exam preparation classes they are offering this year in Hayward CA. See the EBAEA web site for more information.

Classes ­ Update for PBA, Balance Sheets and Basis, Intermediate S Corporation, Basic Payroll, Schedule C and Household Employees

Here’s a link to the seminars page on my website: www.taxbuddha.com/seminars.html

Update for Professional Bookkeepers Association

Wednesday July 21st 2010 I’ll be at the Walnut Creek Buttercup 6-8 pm talking about the new PTIN requirements, changes to the 941 including the policies behind the changes and documentation requirements to take advantage of credits now available to business owners. There’s also a dinner involved, so I’ll only be speaking for about an hour.

Balance Sheets and Basis

Wednesday September 29th 2010 at the UNM University Conference Center 1634 University Blvd NW in Albuquerque NM. Contact NMSEA at http://www.nmsea.net/convention.html We’ll discuss basis, both inside and outside, for corporations and partnerships, including the principles that should allow you to recognize and solve basis issues on your own, and why you might care to do so.

Intermediate S Corporation Class

Intermediate S Corporation Class will be presented in Lafayette in July. This is an intermediate class. We’ll be looking at how to quickly solve the most common problems encountered with preparing an 1120S, and what to do now to reduce the likelihood of future problems, including the latest information about HR4213 (see above).. July class is limited to 10 participants, so you’ll be able to ask all your questions.

Monday, July 19th, 2010 from 10 am to 2 pm July 19th class will be held in the Lafayette Chamber of Commerce Conference Room, 100 Lafayette Circle, Suite 103, Lafayette CA 94549
Fee to attend is $225, but reduced to $175 for NAEA/CSEA members. CPE credit of 4 hours available for Enrolled Agents who attend, no credit currently available for CTEC, but it’s a good class.
Send me an e-mail if you want to attend for reservation of your spot and directions. Class size is limited. Flyer is on the website at www.TaxBuddha.com/1120_S_Flyer_2010.pdf

Wednesday September 29th 2010 at the UNM University Conference Center 1634 University Blvd NW in Albuquerque NM. Contact NMSEA at http://www.nmsea.net/convention.html

Basic Payroll

In conjunction with the IRS and EDD, Andy's going to be doing some Basic Payroll seminars coming up in the near future.

Basic Payroll: Seminar runs 9 am ­ 3 pm with an hour for lunch

The next seminars will be

Basic Payroll in San Francisco at the SBA office 455 Market Street, 6th floor (I take BART to Embarcadero or Montgomery Street)
9 am ­ 3 pm, August 11th and September 22nd.

Basic Payroll in Oakland at Elihu M. Harris State Building,1515 Clay Street, Room 1, Second Floor,
9 am ­ 3 pm, July 8th and August 5th.

Register by going to http://www.edd.ca.gov/Payroll_Tax_Seminars/ and find your favorite location.

These seminars have proven to be very popular, plus they’re free.

How to Prepare your Own Schedule C

Prepare your business taxes for ’09 and get ready for ‘10. Review what the IRS wants to know from you and how to report it on the Schedule C for your business. This is a class for business owners who need a basic understanding of their 1040 Schedule C tax forms. We’ll also talk about what to do with the numbers once you have them. We can’t guarantee you won’t get audited, but this class will make it less likely.

This class will be presented for free in San Jose Wednesday, August 4th, 10 am ­ 12:30 pm at the SBA Entrepreneur Center, downtown, 84 W Santa Clara St, Suite 100, San Jose, but the address may change. Still in San Jose, but the SBA may move.

Andy will be at the US Small Business Administration offices in San Francisco at 455 Market Street, 6th Floor Tuesday July 6th, 6-8:30 pm. This class will be free. To register, check out the SBA website www.SBAtraining.eventbrite.com, or just show up. This class will be limited to 20 people.

Household Employees

Household Employees update class for both employers and the practitioners who help them. This is currently scheduled for January 24th, 2011 at 100 Lafayette Circle, Lafayette CA in the Chamber of Commerce conference room. Cost to attend this class is $75. Here’s the link to the flyer www.taxbuddha.com/Nannygate_Flyer_Jan_11.pdf


If you’re in the market for QuickBooks training in a classroom setting, I recommend her. She teaches a two day QuickBooks seminar and travels a great deal. Kim says she’ll be in Oakland August 24-25, and Fremont August 26-27th (I had originally though she’d visit in June.) Her website is http://www.manibusinessservices.com/

For Relaxation and Clear Thinking: On The Spot

To carry you through the stressful tax season, we recommend meditation and that you check out On The Spot Massage at http://www.onthespotmassage.com/corporate.html to help you relax. A relaxed mind is a clear thinking mind. We have some discount cards for $5 off at the Alameda Natural Grocery location on Park Street, open daily 11 am ­ 7 pm.

Phone and Fax Numbers

Our northern California physical office is shared commercial space in Alameda. Phone numbers are:
Phone (510) 522-2300
Fax (510) 522-2307
Our mailing address:
3527 Mt. Diablo Blvd #366, Lafayette CA 94549

“The hardest thing in the world to understand is the income tax.” — Albert Einstein, physicist