October, 2012

Personal Returns Due 10-15

If you have heard from me and your return is not yet complete, please send me your information right away. I seem to have a larger than usual list for this time of the year, although most of the returns I have left are fairly well along, just missing a few things to complete and file.

If you haven’t heard from me asking for specific things I’m missing to complete your return, I’m not planning on preparing your return for 2011 (or they’re already done!).

S Corporation Health Insurance

IRS Notice 2008-1 ruled that under certain situations, a 2% or more shareholder is allowed an above-the-line deduction (that’s the good kind) even if the health insurance policy is purchased in the name of the shareholder. The notice has four examples; three have the shareholder purchasing health insurance and the other has the S corporation purchasing the health insurance.

The Notice says if the shareholder purchases the health insurance in his own name and pays for it with his own funds the shareholder is NOT allowed an above-the-line deduction (that’s worse, it gets deducted on Schedule A and is subject to various limitations). On the other hand, if the shareholder purchases the health insurance in his own name but the S corporation either directly pays for the health insurance or reimburses the shareholder for the health insurance AND ALSO includes the premium payment in the shareholder’s W-2, the shareholder IS allowed an above-the-line deduction.

For a shareholder to claim an above-the-line deduction (the good kind), the health insurance premiums have to be paid by the S corporation and have to be included in the shareholder’s W-2, so if you have an S Corporation, and you have health insurance, be sure the W-2 will reflect this—contact your payroll provider before year end! The Premiums are income to the shareholder, but are not taxed as Social Security, Medicare nor the various state taxes (except as state income).

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 YouTube.com 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 Andy@TaxBuddha.com 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 www.cafepress.com/TaxBuddha 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 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 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 starting in September again, but I’m teaching in October and November. 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: http://www.ebaea.org/Bulletin/current.pdf

The Speakers Development Group is on hiatus until further notice.

Classes—Official IRS Education Provider, New On Line Catalog, Basic Payroll, Tax Update for Professionals, Schedule C

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

Here’s a new link to my On Line catalog of classes, not quite finished: https://student.gototraining.com/67ts9/catalog/777367154206641920

I’m an official Education Provider. You can find my name (Tax Buddha) listed at the IRS website: https://ssl.kinsail.com/partners/irs/publicListing.asp 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!)

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, October 2, 9:00 am – 3:00 pm
Friday, November 2, 9:00 am – 3:00 pm

Oakland at 1515 Clay Street, 2nd Floor, Room 11, in the Eliju Harris Building
Wednesday, October 10, 9:00 am – 3:00 pm

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 for business owners and bookkeepers, plus they’re free.

Tax Update for Professionals
Through the NATP, I will be participating in presenting two-day workshops in Florida October 22–27 and Kansas/Missouri November 12–17. See www.NATPtax.com for details and enrollment information.

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, December 18, 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