IRS AUDIT RATES HIGHER IF EARN MORE THAN $200,000 PER YEAR!

WHAT ARE MY CHANCES OF BEING AUDITED? …

This is a common concern as many prepare to get their information together, either attempt to prepare their tax returns themselves, (“kids…don’t try this at home” …as they often used to say on TV.) or they get ready to sign off on their tax returns to be sent off to the IRS either electronically or via mail. 

As that e-file button is pushed, there is usually some kind of a universal internal type of wish that nothing bad should come from what was just transmitted to the government.

Statistically and per the IRS saying directly, if one makes less than $200,000 a year, there is a good shot that you would not have to be concerned about an IRS Audit.

However, if you make more than $1 million per year, the odds have been increasing that you might get a letter or visit from the Tax man!

Steven Miller, the deputy IRS commissioner for services and enforcement said when interviewed, that the higher rates of audit for high income individuals are meant to show that the wealthy are subject to the same rules as everyone else. 

It also makes for good business sense with limited resources, if the IRS casts a wider net for the “bigger fish” – they may hope for a bigger “catch” in terms of returns for their collection efforts.

If you are concerned about or already have IRS tax problems, our office may be able to assist you.  Please contact our office at (305) 672-4272 or David@cpa-fl.com.  Please also visit our main website at www.cpa-fl.com.

Read about this topic and the full story by Alan Fram of the Associated Press 1/6/12 as reported on Yahoo News on Yahoo.com:

http://news.yahoo.com/irs-says-audit-rates-grown- wealthy-085406892.html

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David Wrubel CPA’s Live Blogcast Today on BlogtalkRadio.com

David Wrubel CPA appeared LIVE today on the Miami Beach Chamber weekly Internet Blogtalkradio show. 

Click on the link below to tune in to his broadcast!

http://www.blogtalkradio.com/miamibeachchamberofcommerce/2012/01/20/david-l-wrubel-cpa-pa-accountant-miami-beach

Should you have questions or need Business or Individual Tax Advice, or help with FIRPTA:

Our firm may be contacted at: 

PHONE:  (305) 672-4272  [4CPA]

E-MAIL:  DAVID@CPA-FL.COM   

WEBSITE:  WWW.CPA-FL.COM

FOLLOW US ON TWITTER: @MiamiBeachCPA

 

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Small Businesses May Benefit From a Midyear Checkup

Mid-Year May be the Ideal Time to Look at Your Company to See What is Working and What is Not Working 

It is about that time…to plan not only for the rest of the year – but for next year as well!

The unstable nature  of the current economy means that many small business owners aren’t sure about taking any major steps the rest of the year.  Some of these might mean buying new equipment or taking on new employees.   When you meet with your accountant, you can get a better sense of what your Company options are. Accountants keep up with changes in the tax law, and may also have an idea of what deferred tax law changes are already set to happen and go into effect in the future.

Mid-Year Business Planning Points to Consider in General:

1. It is often better in many cases to plan for your company taxes for the year – before the year is finished.  Year-end tax planning for small businesses is essential.

2. If your Company does have access to Credit, it is often best to apply for such credit before it is actually needed – so that your company has the flexibility to act quickly to take advantage of opportunities.  If you wait to have a line of credit until you desperately need it – this will often be too late.

3.  Take a look at Company office and operating procedures to see if there are opportunities to make changes to increase efficiencies or implement online technologies to increase efficiencies.

Please contact our office for any assistance needed for mid-year tax planning, business advisory services, setting up or improving recordkeeping systems, internal controls consulting, and accounting software set-up and recommendations at (305) 672-4272 or e-mail us at david@cpa-fl.com.

Should you have questions or need Business or Individual Tax Advice, or help with FIRPTA:

Our firm may be contacted at: 

PHONE:  (305) 672-4272  [4CPA]

E-MAIL:  DAVID@CPA-FL.COM   

WEBSITE:  WWW.CPA-FL.COM

FOLLOW US ON TWITTER: @MiamiBeachCPA

 

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How Do Many Weathy Americans Legally Do Not Pay Income Taxes

The Famous “Top 1%” of US Households Currently Legally Do Not Pay Federal Income Taxes Under Current Tax Laws

Not necessarily taking any political sides, one economist writes that this phenomenon is a direct result of Republican policies – but the more troubling issue is how many of the well-off pay no tax.

One reason, is that capital gains are a huge percentage of their income – and these taxpayers  may have losses from previous years to offset any realized gains this year. Perhaps some chose to invest all their wealth in tax-free municipal bonds.  If you earn enough to live on from these legally tax-free investments, you pay no tax.  The trick is to have enough wealth to invest enough money in tax-free muni bonds to begin with – to have the amount earn enough income to live on. 

So, in summary, unless you have already accumulated enough wealth to never have to work again in a job and can take advantage of the existing legal tax loopholes using tax attorneys and accountants to plan accordingly – don’t count on getting out of paying US Federal Income taxes if you belong to the middle-income level which most Americans find themselves currently – subject to the full extent of the tax code and brackets that are applicable to them.

Read the Full Story in the NY Times:

http://nyti.ms/lmc2O2

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Foreign Offshore Account Amnesty – An Encore Appearance

New (but much less “friendly”) Amnesty Offered for Foreign Bank Account Reporting and Disclosure by the IRS – IRS OVDP Amnesty Program Application:  

Big Brother is watching in the case of Foreign Bank Account Reporting. This program gives people the chance to come into the IRS before the IRS finds them. In many cases, the IRS is getting help from the overseas banks themselves who engineered the offshore tax evasion practices in the first place!

Take overseas banks like UBS and HSBC, who also depend on their US-granted bank charters to do business here in the USA, and the IRS has the perfect recipe to motivate these foreign banks to cooperate with them in this effort to catch tax evaders or risk being shut down from operating in the USA. Add in the increased capabilities and sophistication that modern computerization allows, and the net needed to be cast by the IRS to catch tax evaders becomes even smaller.

Under the old and new programs, some taxpayers qualify for penalties as low as 5%. For the new program, that category includes inherited accounts that have not been actively managed. Unlike the 2009 program, the new one includes a category for people who never
had more than $75,000 in offshore accounts. They will be subject to a 12.5% penalty.
Taxpayers who participated in the 2009 program with accounts under that threshold can qualify for a reduced penalty.
Taxpayers who are already being audited cannot participate in the program. Those who have made “quiet disclosures” by amending previously filed tax returns may be able to apply for the program. People who waited out the 2009 initiative, they will not be rewarded for waiting” said IRS Commissioner Douglas Shulman. Taxpayers are urged to disclose foreign accounts before new reporting requirements for overseas banks and changes to US tax treaties give the IRS more information for use in criminal cases.
Please contact our office for any assistance needed for the IRS Foreign Offshore Account Amnesty Program and preparing prior year amended tax returns in conjunction with participation in the IRS Offshore Voluntary Disclosure Program to apply for FBAR Non-Filing Amnesty & to report previously undeclared income on amended tax returns for prior years.  Contact us by Phone (305) 672-4272 or e-mail us at DAVID@CPA-FL.COM

 

Should you have questions or need Business or Individual Tax Advice, our firm may be contacted at: 

PHONE:  (305) 672-4272  [4CPA]

E-MAIL:  DAVID@CPA-FL.COM   

WEBSITE:  WWW.CPA-FL.COM

FOLLOW US ON TWITTER: @MiamiBeachCPA

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SBA Unveils New Web Site and Launches SBA Direct

The Small Business Administration (SBA) Has a New Website and Two New Loan Programs

Get Money for your Business, visit the SBA Website to lean more about what programs work can for you.   Call our firm today to help you navigate the waters of obtaining financing for your business.   Contact 305-672-4272 or e-mail us at david@cpa-fl.com.

Read more information about this on the SBA Website:

http://www.sba.gov/content/sba-unveils-new-web-site-and-launches-sba-direct-new-tool-delivering-personalized-and-targeted-resources

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Where’s My Refund?

Rapid Refunds – Don’t Hold Your Breath for 2010! 

Uncle Sam is Going to take his Time – Even if you File Early

Many Taxpayers may be wondering this filing season: “Where is My Refund?  Due to the delayed start times to even begin to file tax returns for the 2010 tax year due to the “11th hour” December 17th, 2010 Tax Act, many taxpayers will need to wait until February 15th, 2011 to even begin to file their taxes.

Why?  Because the December 17th tax Act caused the IRS to have to redo and completely revise several tax forms from scratch and republish them.  Also, the IRS needs to reprogram their computers on a system-wide basis for the new tax rules put out on December 17th. 

Among those who will need to wait:

1) Taxpayers who Itemize their deductions on Schedule A

2) Taxpayers who claim a deduction or credit for tuition expenses in 2010

3) Teachers claiming education expense deductions

These delays will affect taxpayers whether they file electronically or via paper returns.

For more information and help to to speed up your refund once tax returns are able to be filed electronically, please contact our office at: 305-672-4272 or via e-mail at info@cpa-fl.com 

See the Whole Article from the Miami Herald: http://www.miamiherald.com/2010/12/28/1990773/filing-early-might-not-guarantee.html

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SMALL BUSINESSES NEED A CRASH COURSE IN TAXES

RUNNING A SMALL BUSINESS REQUIRES ADMINISTRATIVE AND BOOKKEEPING DUTIES THAT CAN QUICKLY OVERWHELM MANY ENTREPRENUERS VERY QUICKLY

We often get asked if there are any good “Starting a New Business for Dummy’s” type books out there.  While there are a few self-help books, (as well as a recently published one that is particularly good), they are often alone no substitute for good paid professional advice.

Our office may be of assistance for entrepreneurs to help get their businesses started off the right way and heading in the right direction.

We can also recommend one of our picks for a good new business start-up self-help book recently published that seems to stand out from the rest.

Should you have questions or need Business or Individual Tax Advice, or help with FIRPTA:

Our firm may be contacted at: 

PHONE:  (305) 672-4272  [4CPA]

E-MAIL:  DAVID@CPA-FL.COM   

WEBSITE:  WWW.CPA-FL.COM

FOLLOW US ON TWITTER: @MiamiBeachCPA

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Florida Film and Entertainment Industry Financial Incentive Program CPA Agreed-Upon Proceedures Report

Certified Public Accountant (CPA) Agreed-Upon Procedures Report for the Florida  Film & Entertainment Industry Financial Incentive Program

For those in the Film Industry in Florida who create productions that have over a certain level of expenditures in Florida, the State of Florida currently offers a grant program to essentially give a rebate of up to 15% of the expenditures spent in Florida on that production – on payments to bona fide documented Florida residents and for payments made to businesses located in the State of Florida.  

There are three major categories for the incentive:

1) General Production Queue

2) Commercial and Music Video Queue

3) Independent & Emerging Media Production Queue

Our office can serve as the CPA that can help verify that the submission meets the guidelines for submitting qualified expenditures for the Florida Film & Entertainment Industry Financial Incentive Program for any of the three major categories. 

For more information and guidance from our office or assistance with the Agreed-Upon Procedures Report of a Certified Public Accountant required (of an independent third-party Florida-based CPA) to prepare a submission for a rebate as required by Florida Film & Entertainment Industry. Financial Incentive Program, general tax and consulting services for entertainment industry businesses, or entertainment industry individual tax help, please call the offices of David L Wrubel, CPA, PA  at (305) 672-4272 or e-mail at david@cpa-fl.com

See the following Link for more information on the State of Florida Grants for the Film and Entertainment Industry:

http://www.filminflorida.com/ifi/incentives.asp

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GULF OIL SPILL HURTS MANY FLORIDA BUSINESSES AND HELPS OTHERS

CPA’s TO PLAY AN IMPORTANT ROLE IN CALCULATING LOST BUSINESS DUE TO OIL SPILL FOR LAWSUITS AGAINST BP & HALLIBURTON

As the Seas’ Currents Spread the Seeping Oil from the Bottom of the Gulf of Mexico, a Wave of Lawsuits are Already Being Filed in Florida and the Gulf States for Lost Business Due to the BP Oil Spill – CPA Forensic Accountants in High Demand and in Scarce Supply for Litigation Support Services

BP said publically they will pay for “legitimate” damages to businesses for Oil Spill caused by the sunken damaged oil rig in the Gulf of Mexico. Lawyers are already riding the wave of oil to come up with new legal work stemming from potential lawsuits for business that have or will experience lost business due to the oil spill or may go out of business completely. Businesses are already suffering from the effects of the oil spill, before the first drop of oil even touches the shoreline! Those in industries such as the fishing industry, hospitality industry for hotels, motels, & restaurants, seafood industry, boat rentals & boat sales, and diving charters are already experiencing significant business losses due to cancellations from the oil spill.

In turn, Certified Public Accountants will undoubtedly be needed for BP lawsuit damage calculations for their forensic accounting, business valuation, expert witness testimony, and litigation support services for the lawsuits involving companies who have lost business or gone out of business as a result of the BP oil spill for the Gulf States. Lawyers and business owners should start approaching CPA’s to engage their services while they are available after this tax season to set up to start working on damage calculations for the litigation support services needed for the legal actions that will result from the damage caused by the BP oil platform disaster.

It is one thing to simply file a lawsuit for lost business due to the oil spill, but a CPA will likely be needed to not only mathematically demonstrate the dollar amount of damage to the business – but also communicate it effectively to the jury during the legal proceedings.

For Litigation Support Services & Expert Witness Testimony for BP Oil Spill Lost Business Damage Calculations, please call the office of David L Wrubel CPA PA at 305-672-4272 or e-mail us at: david@cpa-fl.com

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