HOW DO I GET STARTED AND WHERE DO I BEGIN FOR SMALL BUSINESS TAX RETURN PREPARATION? …

Don’t wait to the Last minute!

The 2011 tax year Personal tax returns are due April 17th this year.  However, if you have certain types of small businesses, such as an S-Corporation or even a Regular C-Corporation Type entity, the filing deadline for most calendar-year corporation tax returns is March 15th of each year.

It is important to note, that for certain types of business entities, such as S-Corporations and Limited Liability Corporations (“LLC”s) – since these are generally taxed as “pass-through type entities,” and the net taxable income or loss passes through to and is used in the tax calculation of the owners’ personal tax return,…the tax returns for these types of entities must be completed before the personal tax return of the owners’ !!

So, if you started a company during last year, and you are used to waiting until April to get your tax return done – you may be pushing the envelope as far as the deadlines to get both the business and personal tax returns done in time for the April personal filing deadline.

Worse, you may even miss the company tax return filing deadline should it be March 15th and risk penalties – or not leave enough time to finish both the LLC and the Personal Tax Return by the mid-April filing deadline!

It is important to realize that when you have a business, there may be other applicable earlier and more frequent interim Federal, State & Local tax form and tax filing deadlines compared to when you were just only filing a personal tax return before as an employee of someone else!

If you do in fact run out of time, you can perhaps file an extension.  However, remember that an extension is generally only an extension of time to file, not to pay the taxes.  Most Federal and State business and personal tax extensions require you to calculate and/or estimate as accurately as possible the amount of taxes due to be paid by the deadline and to pay that along with the extension – even if the forms are filed later – or you can risk incurring substantial penalties and interest.

With the right pre-planning and professional tax guidance form a certified tax professional, you can strive to be ahead of the game going forward…instead of behind the eight-ball!

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

Read about this topic and the full story by Joyce Rosenberg of the Associated Press 1/27/12 as reported on Yahoo News on Yahoo.com:

http://sg.news.yahoo.com/getting-started-small-business-tax-return-220446527.html

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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

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

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