May, 2012

Vote for me!

I’ve been nominated for president of the East Bay Association of Enrolled Agents ( and the election will be on Wednesday, May 16th. Unfortunately, I will be unable to attend as I previously committed to be in Wisconsin at an educational event that week. If you’re a voting member of EBAEA, please attend and vote for me! The speaker for the educational part of the meeting will be Alan Pinch, EA, who will speak about 1099s. The dinner and education are not free, but if you’re looking for some more CPE hours for 2012, please attend. The meeting will be at the Holiday Inn, 6680 Regional St in Dublin CA from 6–9 pm. The meeting on June 21 will be at the Holiday Inn on Hegenberger Road in Oakland.

W-2 Medical Insurance Reporting

The IRS has revised the reporting requirements on W-2s. Currently, if you have more than 250 W-2s, you will be required to report“major medical insurance” in Box 12 of the W-2 with Code “DD.” If you have fewer than 250 W-2s, it is optional for 2012 (to be reported January 2013).

More than 2% owners of S Corporations never report their medical insurance paid by the corporation here—it gets added to income on the W-2 (but is not subject to Social Security, Medicare tax, or other non-income tax CA payroll taxes, so you don’t include the amount in the base pay). Make sure your payroll company is doing this properly if your S Corporation is paying your medical insurance. The insurance is generally deductible as self-employed health insurance on the personal return, with some exceptions.

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. You may also be interested in my “Choice of Entity” class – see below.

Household Workers Payroll Tax 2012 published on Kindle

If you have someone providing child or elder care in your home in California and you’re paying them more than $750/quarter or $1,800/year, you need this book! Clear instructions with examples to help you calculate wages properly and stay out of trouble. Don’t expose your parents or yourself to the risk of a worker injury or filing an unemployment claim, pay them right! Updated for 2012 and includes both federal and California rules. I also have an occasional Household Payroll Newsletter—Contact me at if you’d like to be on the list. Below is a link to the Kindle book on Household workers:

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

We have an Audit and Rep group meeting the second Wednesday each month. At Audit and Rep, we’ll try to take a case and review it, and discuss other audit and representation issues. We meet in Lafayette at Millie’s Café at 9:30 am for two hours at 1018 Oak Hill Road, A, just off highway 24. Click on the link for the current bulletin for more information:

Unless I receive a case in advance, we won’t have CPE available. I’ll still go to breakfast, but we won’t have an official meeting. (I have breakfast nearly every day!) If we have a case and I can get the IRS authorization before the day, be sure to bring $20 and your PTIN number, and I’ll email you a certificate for CPE (be sure I have your email address). We have CPE for the meeting on May 8, 2012. It’s free as a “first time experiment.” You’re welcome to attend and participate even if you don’t want the CPE.

I’m personally providing the CPE as a service for the attendees—this part is not a function of the EBAEA, just the meeting part is! I will email certificates of completion to participating attendees, and I will upload information to the IRS PTIN system. Currently, the upload will not be available before July 1, 2012, per the IRS.

The Speakers Development Group is on hiatus until after the tax season.

Classes—Official IRS Education Provider, New On Line Catalog, Basic Payroll, Tax Update and Household Employees, Schedule C, and Entity Choice Workshop

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

Here’s a new link to my On Line catalog of classes, not quite finished:

I’m an official education provider. You can find my name (Tax Buddha) listed at the IRS website: where you’ll see I’m qualified to provide federal tax update and federal tax classes for EA’s and RTRP’s. (I just knew I should have used the name AAAAA Tax Buddha!)

Intermediate S Corporation Class
The class will be presented in Alameda June 16. This is an intermediate class, so we won’t be discussing how to fill out the form. Rather, 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. Class is limited to 6 participants, so you’ll be able to ask all your questions. We’ll also cover the complex issue of basis and why we care what it is.

“This is the best class on S Corps I’ve ever been to, and I’ve been to a lot.”

Alameda, CA
Class will be held in the Law Office Conference Room, 1516 Oak Street, Suite 109.
Cross the Park Street bridge (23rd Street Exit from 880 freeway) onto Alameda from Oakland on Park Street. Turn Right on Lincoln (just before the Der Wenierschnitzel). Turn Left around the new red brick Alameda Library, which is directly across from the big red brick police station. Pass the library and the alley, past 1516 Oak, turn Left into the parking lot just beyond 1516 Oak and park in a green space. Follow the ivy back towards the back of the parking lot to Suite 109.
Saturday, June 16th, 9:00 am to 1:00 pm

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.

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)
Tuesday, June 5, 9:00 am – 3:00 pm

Oakland at 1515 Clay Street, 2nd Floor, Room 11, in the Eliju Harris Building
Friday, June 8, 9:00 am – 3:00 pm
Wednesday July 25, 9:00 am – 3:00 pm

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.

Tax Update
I have an IRS CPE approved class available on the web for Enrolled Agents and RTRPs who need an hour of credit. This was first presented for the East Bay Association of Enrolled Agents as a January 2012 dinner meeting topic. See my online catalog at or email me at

Household Employees
This is an update class for both employers and the tax practitioners who help them. This is now online. For more info, please email me at or see the Kindle book at

How to Prepare your Own Schedule C
Get ready for next year and filing your own Schedule C for last year. Review what the IRS wants to know from you and how to report it 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 US SBA office in San Francisco at 455 Market Street, 6th Floor.
Tuesday, August 14, 6:00 pm – 8:30 pm.

Phone and Fax Numbers

Our northern California physical office is shared commercial space in Alameda, but 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