December, 2011

Time to Collect 1099 Information

The IRS is trying to close the “Tax Gap” by clamping down on 1099 reporting.

If you have paid more than $600 for services to a business context, you need to know details about your provider so you can issue 1099s. There are some exceptions to the requirement to issue the 1099s, but you need the details of the vendor to qualify. You can collect the information with a Form W-9, available at The exception for 1099s are for services provided by corporations…and the exception to the exceptions are services provided by lawyers and certain medical payments. This means lawyers DO get 1099s, even if they are incorporated.

The IRS is asking about 1099s specifically on Schedules C and E. They are also touting a case from 2009 where the IRS successfully disallowed expenses for a contractor who failed to prepare 1099s. There is also a new form—the 1099-K or what I call the “EBay form”—PayPal and other third party payment processors will issue reports to the IRS (and you) if you’ve received payments from them during the year, and they’ll list payments by month. The 1099-K is still in the preliminary stages, but if you haven’t been reporting payments via PayPal, you’ll now have to explain this.

Little Box of Inc: Incorporations Made Easy published on Kindle

The book with tips about how the S Corporation works is now published to Amazon’s Kindle, updated with additional information about S Corporations, and can be found by searching for Andrew S Rogers as author, and click on “Kindle.” Here’s the blurb:

Considering incorporating as an S Corporation? This booklet will help you understand how the S Corporation works, what you need to do to become incorporated and what you need to do once you have a corporation to stay out of trouble. The structure and the requirements are reviewed, as well as helpful tips to use your corporation to reduce your tax liability and retain your status as an S Corporation. I’ve worked with S Corporations for many years, and as a tax preparer, I can choose the kind of entity I have for my business: I choose the S Corporation myself, and I’ve convinced many of my fellow tax preparers to incorporate as well. I’ve divided the information into clear, easy-to-understand topics, and cross-referenced sections when it might be helpful.

After you’ve read this material, you can view on-line videos via for free to access more advanced information about S Corporations.

Tax Buddha Messenger Bags

Want to be the first person in your tax bracket to sport the fabulous Tax Buddha Messenger Bag? I’ve now got a “shop” on Café Press at in case you’d like to order your own Tax Buddha logo items. The messenger bag came out particularly well, not quite “saffron,” but easy to find in an airport.

The Eightfold Path to Pay Less Tax and Avoid an Audit

Eight basic things business owners want to know printed in a booklet in “executive summary” 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 Here’s the link to Amazon: 

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

EBAEA—Audit and Representation Group

Our meetings are scheduled for Wednesday, December 7th and January 11th. We’ll take a case, review it, and discuss other audit and representation issues. We’ll meet in Lafayette at Millie’s Café at 9:30 am for two hours at 1018 Oak Hill Road, A, just off highway 24. Go to the link for the current bulletin for more information We’re still discovering if we can give CPE to Enrolled Agents who attend for two hours.

Classes—Basic Payroll, Schedule C, Tax Update, and Household Employees

Here’s a link to the seminars page on my website:

Basic Payroll
In conjunction with the IRS and EDD, I’m 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:

San Francisco at the SBA office 455 Market Street, 6th floor (I take BART to Embarcadero or Montgomery Street)
10 am ­ 4 pm, December 13 and again January 10.

Register by going to and find your favorite location.

These seminars have proven to be very popular for business owners and bookkeepers, plus they’re free.

How to Prepare your Own Schedule C
Prepare your business taxes for this year and get ready for next year. 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.

I will be at the SBDC in Oakland at 250 Frank Ogawa Plaza near 12th Street BART station
Thursday December 1, 2:00 pm ­ 4:30 pm.

Tax Update
I will present an hour-long tax update for the East Bay Association of Enrolled Agents at the Holiday Inn in Dublin at the monthly meeting on January 18th, For more information, go to

Household Employees
This is an update class for both employers and the tax practitioners who help them. This is scheduled for January 28th, 2012 in Lafayette at the Chamber of Commerce conference room. It will be at100 Lafayette Circle, #103. The cost to attend this class will be $75.

If you’re in the market for QuickBooks training in a classroom setting, I recommend Mani Business Services. This is a two-day QuickBooks seminar offered in various places around the country. The website is

Phone and Fax Numbers

Our northern California physical office is shared commercial space in Alameda, which is currently undergoing a bit of construction over the summer, so we’ve been meeting people at Starbucks on Mt. Diablo Blvd in Lafayette near the mailing address.
Phone numbers are:
Phone (510) 332-0401
Fax (925) 478-2726
Our mailing address:
3527 Mt. Diablo Blvd #366
Lafayette CA 94549

“You too can be enlightened about tax” — Tax Buddha