CPA Tax, Finance and Business Info

Practical Advice for Avoiding Exploding Tax Bills

2011-07-05T22:00:00.001-05:00

You just finished a good year. Sales and profits were up nicely compared to the year before. You're feeling that you've made it through the worst of the recession and you have money in the bank. As you get ready for your meeting with your CPA, you're also proud that you were able to make all of last year's estimated tax payments.

So, now it's March 1st, you meet with your CPA and he delivers the bomb: "You owe the IRS $25,000 for last year's income tax," he says flatly. Stunned, you wonder how this could possibly be true. You know that last year you paid all the payments that he printed on the estimated tax vouchers. What the heck is going on?!

When your CPA prepared the estimated tax vouchers, the amounts printed on the vouchers were calculated to avoid penalties for underpayment - based on the prior year's tax liability. Paying these printed amounts ensured that you would avoid penalties, but did NOT ensure that you are paying enough in estimated tax payments to avoid the exploding tax bill. For business owners and others who are self-employed, your fluctuating taxable income from year-to-year will expose you to the shrapnel of these exploding tax bills.

Practical advice: Instead of relying on the pre-printed estimated tax vouchers that your CPA gives to you, pay your estimated tax based on a good estimate of your taxable income from each just-completed quarter. One of the ways to do this is to ask your CPA to prepare an analysis of your net taxable income as a percentage of your gross revenue. Also, ask your CPA for the likely federal and state income tax rates which will apply to business (including Social Security and Medicare). Then, to calculate each quarter's estimated tax payment, the math is simple (remember to do for both federal and state):

Current quarter's revenue $ xxxxx.xx
X Net taxable income %            xx%
                                      ------------
Estimated taxable income    xxxx.xx
X Income tax rate                     xx%
                                      ------------
Estimated tax payment       $ xxxx.xx
                                     ========

Using this practical, easy method and making timely estimated payments should enable you to consistently avoid the big, negative surprises of the exploding tax bill.

Ken Folberg is Managing Director of KSF CPA Services LLC, a firm of Certified Public Accountants and business advisors with offices in Ripon, Milwaukee and Berlin, Wisconsin, and is an occasional contributor to several other publications.

© 2011 KSF CPA Services LLC, all rights reserved.

Contact me at: ken.folberg@ksfcpa.com
(262) 421-1170 Office - Milwaukee
(920) 299-5120 Office - Ripon and Berlin
(877) 277-7151 Fax

Money Waiting For You - Really!

2010-03-02T15:11:00.000-06:00

IRS Has $1.3 Billion for People
Who Have Not Filed a 2006 Tax Return

This was too important to not pass-along from the IRS.
Please call me for assistance. I'll get your past tax returns prepared & filed for you for as little as $109 each. But don't wait. It's Your Money. The 2006 returns must be filed ASAP!

Washington — Unclaimed refunds totaling more than $1.3 billion are awaiting nearly 1.4 million people who did not file a federal income tax return for 2006, the Internal Revenue Service announced today. However, to collect the money, a return for 2006 must be filed with the IRS no later than Thursday, April 15, 2010.

The IRS estimates that the median unclaimed refund for tax-year 2006 is $604.

Some people may not have filed because they had too little income to require filing a tax return even though they had taxes withheld from their wages or made quarterly estimated payments. In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim the refund within three years, the money becomes property of the U.S. Treasury.

For 2006 returns, the window closes on April 15, 2010. The law requires that the return be properly addressed, mailed and postmarked by that date. There is no penalty for filing a late return qualifying for a refund. Though back-year tax returns cannot be filed electronically, taxpayers can still speed up their refunds by choosing to have them deposited directly into a checking or savings account.

The IRS reminds taxpayers seeking a 2006 refund that their checks will be held if they have not filed tax returns for 2007 or 2008. In addition, the refund will be applied to any amounts still owed to the IRS and may be used to satisfy unpaid child support or past due federal debts such as student loans.

By failing to file a return, people stand to lose more than refunds of taxes withheld or paid during 2006. For example, most telephone customers, including most cell-phone users, qualify for the one-time telephone excise tax refund. Available only on the 2006 return, this special payment applies to long-distance excise taxes paid on phone service billed from March 2003 through July 2006. The government offers a standard refund amount of $30 to $60, or taxpayers can base their refund request on the actual amount of tax paid.
In addition, many low-and-moderate income workers may not have claimed the Earned Income Tax Credit (EITC). The EITC helps individuals and families whose incomes are below certain thresholds, which in 2006 were $38,348 for those with two or more children, $34,001 for people with one child and $14,120 for those with no children.

Source: IRS Newswire Topic IR-2010-024

Contact me:
kfolberg@mynetcpa.com
(262) 421-1170 Office
(877) 277-7151 Fax

2009 Individual Tax Return Changes

2010-02-22T21:16:00.000-06:00

If you’re going to do your own tax return this year (not that I suggest this, mind you), here are 10 new things you’ll see on your 2009 individual income tax return. Because of all these changes, please don’t rely on your 2008 tax return as a model for this year.

1. Homebuyer credit. This one’s big, but also complex. First-time homebuyers and some existing, long-time homebuyers, are entitled to a refundable tax credit of 10% of the purchase price, with credit maximum of $8,000 ($6,500 for the existing homebuyers). The credit for existing homebuyers didn’t come into being until November 6th and there’s some complication about how long you had to own it (5 consecutive years out of the last 8 – go figure). Once again, middle-class taxpayers lose this benefit once they earn over $95,000 ($170,000 for married couples) for purchases before November 7th and $145,000 ($245,000 for married couples) after November 6th . Further complicating things is that if you took the credit in 2008, may want to amend your tax return (or have me do it for you) to get a larger credit or one without payback requirements.

2. College expenses tax credit. OK, another great credit with great complications. There’s 3 possible credits in addition to possible education deductions (you can’t double dip though). However, the income limitations are quite low, despite having been raised in 2009 (compared to 2008). There’s also differences in what types of expenses qualify for the different education credits. If you think you may qualify for some of these credits, please consider using a tax professional to assist you to make sure that you get the highest credit available to you.

3. Making work pay credit. There was a special complication for this credit – you already received it through wage withholding. However, if you don’t ‘claim it on your tax return, you’ll end-up paying it back to the Treasury. Make sure you don’t miss this one, if you’re eligible. Some people may have had their withholding reduced while not being eligible for the credit. This will cause a little bit of a negative surprise on their tax return.

4. Motor vehicle sales tax. Sales tax paid on the purchase of a new motor vehicle (on purchase price of up to $49,500) after February 16th may be deductible. One of the differences in how this is handled in 2009 is that it’s deductible if you itemize or even if you take the standard deduction. If you’re fortunate enough to have income above $125,000 (double for married couples) you may not be able to get this deduction.

5. Standard deduction. The standard deduction increased in 2009 to $11,400 for married couples filing jointly, $8,350 for heads of households, and $5,700 for single taxpayers and others. In addition, you may be able to claim the sales tax on a new car as described above and a limited amount of real estate property taxes.

6. Unemployment compensation. For the 10% of people who became unemployed during 2009, $2,400 of unemployment compensation benefits became tax-free. This may not be a huge benefit for many collecting unemployment compensation, but it shouldn’t be missed when you do your tax return. Note: Many CPAs (including me) offer discounted or pro bono services for unemployed clients.

7. Child tax credit. The refundable portion of the child tax credit increased by lowering the income threshold to $3,000. Lower-income families may receive larger refunds as a result.

8. Energy credit. If you made qualifying energy efficiency investments of up to $5,000 to your home in 2009 and/or 2010 (combined), you can get 30% back as a tax credit. There is some energy efficiency standards that have to be met and your dealer or contractor should have the necessary information for you.

9. AMT exemption. The maximum alternative minimum tax (AMT) exemption has increased a little over 2008. This doesn’t apply to most tax returns, but it’s important if you have certain trading gains or losses or a small business (sole proprietor, S-Corp or LLC – disregarded entity) with depreciation.

10. Kiddie tax threshold. The tax on investment income of those under age 19--or under age 24, if full-time students--at their parents' highest marginal tax rate for amounts over $1,900, up $100 over 2008.

Of course, there are numerous planning and other ideas that your CPA can offer you throughout the year that will help to lower your taxes, and more importantly, increase your wealth to meet your goals.

Contact me:
kfolberg@mynetcpa.com
(262) 421-1170 Office
(877) 277-7151 Fax

It’s Not About Tax Returns, It’s About Having More Wealth

2010-02-12T00:03:00.000-06:00

It’s Not About Tax Returns, It’s About Having More Wealth

This time of year it seems natural to focus on getting your tax returns done. Maybe you’ll prepare the forms yourself using Turbo Tax or a low-cost online software solution. Maybe you’ll take a chance and spend a few hundred dollars (after all their hidden fees are revealed) going to a seasonal chain tax store and having their temporary workers prepare your returns. Of course, there’s another alternative that you may have considered too expensive.

== $$ ==

An experienced Certified Public Accountant (CPA) will use the tax return prep interview as a way to get to know you and your circumstances, kind of like a doctor asks about your medical history during an office visit. And, much like a doctor, the CPA should ask you questions, not just to complete forms, but to help you to get financially healthier. This way, you will very likely discover opportunities to create additional wealth for you and help attain your financial goals. And the last doctor-CPA comparison I’ll use is that your CPA should have a friendly “desk-side manner.”

You should feel confident that your CPA has at least a 4-year degree in Accounting and has passed the CPA exam, which fewer than 20% of test takers pass on their first attempt. The AICPA also requires that the CPA continue their education with at least an average of 40 hours of specific training every year.

And, of course, the CPA practices accounting and tax all year long, not just for a few weeks before the tax return season. This means that your CPA is looking for ways to maximize your wealth throughout the year. I know that personally, it’s quite common for me to present ideas to clients that save them literally thousands of dollars in taxes and other non-tax expenses.

So, having a CPA in your corner will, at the end of the day, put more money in your pocket – and not just from a tax refund. I know this sounds a bit self-serving, but I know with 100% surety that my clients make and/or keep more money by using my services than they would any other way.

CPA’s are there to be your financial doctors,
keeping you fiscally fit!

> Is it better to lease or buy that car?
> Should you pay points to lower your mortgage interest rate?
> Is now the time to refinance?
> Should I pay-down my home equity loan or my credit card balance?
> If I take a 2nd job, will I pay so much more in taxes that it won’t be worth it?
> What’s the ‘true’ cost of both parents working?
> Our income is higher than ever, yet we don’t seem to be saving anything. How do we get our spending under control?
> Our broker is recommending some things that we’re not too sure about. Can we get an unbiased, second opinion?
> I just got a letter from the IRS. What do I do with it?
> My wife is an Army NCO, deployed to Afghanistan and is from California. I’m from New York and work at a job near her base in Florida and our 2 children go to daycare while I work. Where do file tax returns?

These are just a few of the common, everyday questions I get asked and am happy to help with. The best starting point for your CPA to get to know you and your financial and family situations is to prepare your tax returns. You’ll find it’s your best value, by far!

==============================

Copyright© 2010 KSF CPA Services LLC. All rights reserved.

Contact me:
kfolberg@mynetcpa.com
(262) 421-1170 Office
(877) 277-7151 Fax

Tax Filing Help

2010-01-25T09:00:00.000-06:00

It's Tax Season

Your W-2s, 1099s, bank & broker statements and K-1s should have started to arrive and we're now in Tax Season. Below are some useful highlights to recent changes. Contact your CPA today to help get organized. Some offer substantial Early Bird discounts (including MyNetCPA.com).

You may have sold some mutual funds or stocks, married, divorced, had (or adopted) a child, moved, attended classes, made improvements to your house, changed jobs and/or bought a home or car. Like much of life's changes, these activities affect the amount of taxes you pay. Here are a couple of thoughts about recent changes which complicate filing your taxes and planning for 2010.

Bought a home:

To take advantage of the home buyers' credits ($8,000 for 1st time buyers, $6,500 for others (if purchased after 11/6/09), subject to certain earnings limits), you'll need to -

a) File a paper return (cannot e-file)

b) Include Form 5405 with your Form 1040, and

c) Include the final settlement statement (usually a Form HUD-1). Existing homeowners claiming the credit must also provide documentation proving ownership with mortgage statements, property tax receipts or homeowner's insurance records.

Bought a car:

The Cash for Clunkers program doesn't affect your income tax filing. You should have received the credit off your purchase price from the dealership. If you did not, or have more questions about this program, check www.cars.gov (note especially the .gov). However, you may be able to deduct sales tax paid for buying a car in 2009.

Had a job:

The Making Work Pay Credit program gave a credit to most employees through lower federal income tax withholding on each paycheck in 2009. However, you must file Schedule M to claim the credit and there are numerous complications. If you had more than one job and/or received Social Security benefits in addition to having a job, your 2009 withholding may have been inappropriate for your circumstances and you may receive a lower refund (or owe more) when you file your 2009 tax return. This program continues in 2010 and will result in a slightly lower amount of take home pay in 2010 vs. 2009 because of changes in the required payroll withholding amounts.

Important: This is a refundable credit (similar to the Earned Income Credit). Even if you owe no taxes, you may still claim the credit by filing a Schedule M.

Claim the Standard Deduction:

If your potentially itemized deductions (medical, taxes, interest, casualty losses and certain other costs) are near or less than your standard deduction (increased in 2009), you may still benefit from some of these itemized deductions while still claiming the standard deduction. Real estate tax, sales or excise tax paid for a new car or certain disaster losses (reported on Form 4684) can still be claimed using Schedule L.

I am happy to assist you with these and any other tax and financial planning situations.

Contact me today:
kfolberg@mynetcpa.com
(262) 421-1170 Office
(877) 277-7151 Fax

IRAs - Roth and Traditional

2010-01-11T10:09:00.000-06:00

We're in that time of year when you can decide to put money into an IRA and choose whether to have the money be counted as a 2009 or 2010 contribution. Here's a primer of the basic differences between contributing to a Roth or a Traditional IRA:

A. Traditional IRA contributions are tax deductible, but withdrawals are subject to ordinary income tax in the year withdrawn. There are required minimum withdrawals (RMDs) beginning at age 70 1/2.

B. Roth IRS contributions are not tax deductible, but withdrawals are tax free and there are no RMDs (unless the Roth IRA was inherited).

So, if you believe that your retirement account will grow significantly through interest, dividends and/or capital gains, you would be better off investing in a Roth IRA because of the likelihood that tax rates will be going up to pay for the recent government spending binge. It's better to pay taxes now at the lower tax rate and get your Roth earnings tax free later, even if you expect to be in a lower tax bracket when you retire.

IRAs have income and other limits as to whether and how much you can contribute and withdrawal. One of the important things to note is that most withdrawals taken before you reach the age of 59 1/2 are subject to a 10% federal income tax penalty. Many states also tack-on an additional penalty for these early withdrawals.

Don't Forget:
Another option is investing in growth stocks outside of a tax sheltered plan ('Growth Investing'). These are not tax deductible, but the gain portions of withdrawals are generally taxed only at the favorable long-term capital gains rate, which currently ranges from 0% to 15%. However, President Obama has proposed increasing long-term capital gains tax rates to 20% for taxpayers in the two highest income-tax brackets, while letting the 15% and 0% rates continue for those in lower brackets.

This type of investing is most flexible in terms of life's changing needs. You can invest and withdrawal anytime without limits or penalties, and should be a significant part of everyone's wealth and retirement planning.

What to do now:
Until April 15th, if you are eligible, consider making contributions to your IRA for 2009. Also, because you may get the benefit of increasing value throughout the year, consider making your 2010 IRA contribution now too.

I suggest consulting with a retirement plan investment professional first. Then, before taking action, review their suggestions with your CPA who will provide you with unbiased counsel regarding the suggested strategy.

Contact me:
kfolberg@mynetcpa.com
(262) 421-1170 Office
(877) 277-7151 Fax

"Free" IRS Tax Software

2010-01-05T10:58:00.000-06:00

You may have heard the good news: the IRS has partnered with 20 tax software companies to provide software and e-filing services for "free," if your income is below $57,000 (generally).

Hmmmm, my skeptical mind wonders (I was an auditor for 4 years so I'm a well-trained skeptic) . . .
     Sounds too good to be true?
     The government offering something to you for free?
     What's in it for them?
     What's the catch?

Well, here the REAL story:
Determining your Income is usually VERY easy - W-2's, 1099's and mutual fund/brokerage statements show us (and the IRS) how much money came IN during the year. It takes virtually NO knowledge of the tax law to report these amounts on your tax return - and pay taxes on these amounts, less the "standard" deductions and exemptions which are built into the tax forms and software. SO, if it's so easy to determine your income, where are you likely to go WRONG?

RIGHT - Which deductions, exemptions and credits are you entitled to? The tax software might make some suggestions, but it's what's NOT known that will leave you paying more taxes than you have to. Tax attorneys and CPAs with master's degrees study and practice the tax law FULL-TIME, year-'round. Why? Because it's complicated! There are many activities which affect the amount you pay in taxes, and it's the job of CPAs to help you keep the most amount of your money, not only by preparing your tax return, but by consulting with you periodically throughout the year.

My (admittedly self-serving) conclusion: Forget about using "free" things like tax software from the government. It really is too good to be true and you'll end up giving the government more of your money in taxes than if you had used an experienced, qualified CPA to prepare your tax return and to advise you on choices you can make to keep more of your money - at tax time and throughout the year.

Contact me:
kfolberg@mynetcpa.com
(262) 421-1170 Office
(877) 277-7151 Fax

Is It Really a Charity?

2009-12-31T14:00:00.000-06:00

So, you have a few extra pennies to donate and you'd like to get a tax deduction for it. How can you be sure that the organization you're donating to is 'legitimate' from the IRS' perspective so that your charitable contribution deduction is deemed acceptable?

To be sure, it's best to check with the IRS for the up-to-date listing, and it's easier to do than you might think.

To search for the organization you're considering donating to, you can go to: http://www.irs.gov/app/pub-78 to access the IRS' search tool. You can also call 877-829-5500 to inquiry directly. You can get the IRS letter giving the organization tax exempt status from the organization itself, but it wouldn't indicate if it had been suspended.

There are certain exceptions (as always in the tax law). Churches and certain affiliated organizations, governmental units (schools, municipal libraries, fire departments, etc.) and subordinate units of tax exempt groups are generally also qualified organizations, but would not be listed in the IRS database.

So, on this last day of the year, give generously to the many, many organizations which do so much good for so many - just make sure that they are really a charity (according to the IRS).

Happy 2010!

Contact me:
kfolberg@mynetcpa.com
(262) 421-1170 Office
(877) 277-7151 Fax

Last Minute Year-end Tax Actions

2009-12-23T10:36:00.000-06:00

OK, time to stop procrastinating. Only 1 week left in 2009, so there's a few things you need to do now to affect your tax bill or refund for this year.

If you are self-employed, make that retirement plan contribution now (SEP IRA, 401(k), etc.) Contribution limits increased this year and there's an extra amount allowed if you are better than 50 years old.

If you are fortunate enough to have some money to give as gifts, you should make your tax-free gifts to individuals now. You can give up to $13,000 per donor, per donee in 2009. This means that you, in conjunction with your spouse, can give up to $26,000 to each person, free of gift taxes. In addition to the annual exclusion, you can use the lifetime exemption of $1 million.

Give to charity now. Checks written and sent by December 31, 2009, are considered 2009 donations, regardless of when the charity cashes the check. Donations made by credit card works the same way. The donation is based on when you make the charge rather than when you pay the credit card bill. Remember to get a receipt for all donations - cash or non-cash. Lastly, remember that not all not-for-profit organizations are qualified to receive tax deductible contributions. Ask for their documentation to ensure that you are giving to a qualified organizaions to avoid having your deduction disallowed by the IRS.

For small businesses, now is the time to be sure that your mileage and other miscellaneous expenses are properly documented. This continues to be a target audit area for the IRS. Mileage expenses must be documented in a "contemporaneous" record, meaning you can't rush to create mileage records when you receive an IRS audit notice. If you haven't done so on a daily basis (my recommended 'best practice'), please do it now.

Sell loss stock - maybe. Tax effects are one consideration in your investment strategy - but not the only one. If you are considering selling a stock that is in a 'loss position' in your portfolio, you may want to do this before year-end to offset gains from other stock sales. (I write "stock," but this applies to any investments in securities and many types of other property).

Pay your real estate property taxes, if advantageous. Deductibility of real estate taxes is based on when you pay. In some cases, it may be better to 'bunch' your real estate tax payments for 2 years into 1 tax year. This can be done by paying one year's bill in January and the following year's bill in December of that same year. Why? If the total of your itemized deductions (medical, taxes, interest, donations, casualty and theft losses, job expenses, tax return preparation fees and other miscellaneaous items) without real estate taxes is less than your "Standard Deduction," if you 'bunch' your real estate tax payments into one year, you may be able to take the Standard Deduction in one year and a higher Itemized Deduction the following year. Be careful to check your state tax rules to see if there are limits which may affect the value of this bunching strategy.

Call me anytime with any last minute questions. Merry Christmas!

Contact me:
kfolberg@mynetcpa.com
(262) 421-1170 Office
(877) 277-7151 Fax

Future (2011) Good News Proposed - By the IRS!

2009-12-17T11:17:00.000-06:00

I know it may not seem like much to everyone, but the IRS has issued proposed regulations that will require stock brokers and mutual fund companies to report to you and the IRS the cost and gain/loss information for stock purchased beginning in 2011.
This change will significantly reduce your bookkeeping burden. Beginning with your 2011 tax year, you'll receive the data you need to more easily determine your gains and losses. Currently, you have several methods available for you to select in determining how to calculate your gains and losses including specific identification, averaging or FIFO. These different methods often yield dramatically different results - affecting cash in your pocket now! It will be interesting to see how these will be dealt with in the final regulations.

Form 1099-B, long used by brokers and mutual funds to report sales prices, will be expanded in 2011 to include the cost or other basis of stock and mutual fund shares sold or exchanged during the year and whether gain or loss is long-term or short-term, a very important factor affecting the tax treatment of gain or loss.

If you'd like to give any of your thoughts about these changes to the IRS, you have until February 8, 2010, either electronically, by mail or hand delivered to the IRS. If you are really passionate about it, and want to share your thoughts in-person, a public hearing is scheduled for Feb. 17, 2010, at the IRS New Carrollton Federal Building, 5000 Ellin Road, Lanham, Maryland 20706.

Bookkeeping for tax gains & losses on stock and mutual fund trades is often time-consuming and can cost clients several hundred dollars more in fees for tax preparation, if left to your CPA to do the work. Even now, for the 2009 tax season, you can reduce your tax prep fees by gathering your purchase information for all your securities purchases and summarizing it in spreadsheet form (I can give you a practical format). This will prove useful and will continue to keep tax prep fees lower year after year.

Contact me:
kfolberg@mynetcpa.com
(262) 421-1170 Office
(877) 277-7151 Fax

Year-end Tax Planning - What's Different This Year?

2009-12-11T12:16:00.000-06:00

There's an important difference to tax planning this year-end compared with most: The expectation that income TAX RATES WILL RISE next year.

We agreed (through our elected officials) to borrow and spend billions to prop-up the economy over the past 18 months. Maybe that was a good thing, maybe not. Either way, we'll have to begin repaying this debt soon.

It's clear that the current Congress and administration are very inclined to tinker with the tax code to achieve desired social outcomes. There's been so many changes in 2009 that it's become a nearly full-time job for CPAs to remain experts. So . . . many (including me) expect that income tax rates will be increased in 2010.

What that means for year-end tax planning is that the traditional guidance to accelerate deductions and credits and defer income many need to be reversed for this month. Why? Because moving deductible expenses into the current year lowers your current tax bill, thus giving you the advantage of the "time value of money." In other words, a dollar today is worth more than a dollar you receive later. However, if tax rates rise, this may more than offset this advantage.

One win-win option for many is for converting your traditional IRA into a Roth IRA in 2009, if your AGI (adjusted gross income) is less than $100,000. This gives you the benefit of this year's tax rates. If your AGI is over $100,000, you'll have the option in 2010 of converting and spreading the income over the following 2 years. There's even a provision in the tax law giving you the benefit of 20/20 hindsight (by October 15, 2011) to see whether the conversion was beneficial, and to reverse it if it wasn't!

The MAIN IDEA for converting your traditional IRA into a Roth IRA is really quite simple: Do you expect that your income tax rate will be higher when you withdraw the money? If so, convert. If not, don't convert. What affects your tax rate? Tax law and your annual taxable income. Will the IRA withdrawals and social security payments be your only income in retirement? Which tax bracket will that put you in? If lower than your current backet, the traditional IRA would give you a better result. Of course, you also need to consider your own personal cash flow. Can you pay the tax on a current Roth conversion from personal funds or would you need to take from the account assets?

There are a few, more complex options for year-end tax planning, including harvesting gains or losses on investments, making new deductible business purchases, among others.

If the tax law doesn't change, there's still some built-in tax bracket increases coming in 2011:

The 10% bracket becomes 15%, 15% becomes 28%, 25% to 31%, 28% to 36% and the 33% and 35% brackets rise to 39.6%.

Also, for Dividends and Capital Gains: The maximum rate is 15% in 2009. It's expected to increase to 20% in 2011 for capital gains and 39.6% for dividends. If this isn't changed, plan to make some significant changes to your investment portfolio, as well as tax planning.

These are just a few thoughts I wanted to share while there's still a little time to do something about it before year-end.

Contact me:
kfolberg@mynetcpa.com
(262) 421-1170 Office
(877) 277-7151 Fax

Internet CPA Services Site Launched - MyNetCPA.com

2009-12-10T20:25:00.000-06:00

Admittedly, this is a bit of self-promotion for a new website for a CPA firm. BUT - It's offering something NEW & innovative! Complete income tax prep services with:

1) Pricing below what the seasonal chain store temps charge
2) Fixed-fee, easy to understand, upfront pricing with no hidden fees
3) Unmatched convenience - you don't have to take time to go visit an office
4) You get the services of CPAs with up to 20 years of experience and
5) Online ordering which can be done 24/7.

MyNetCPA.com is the website for KSF CPA Services LLC, headed by (me) Ken Folberg. You can read more about me and the firm at the website. The firm is based in the Milwaukee, Wisconsin area, but serves all 50 states.

The NEW offering works simply:

1. You order at MyNetCPA.com
2. You'll receive a prepaid, pre-addressed FedEx Pak along with instructions in the mail.
3. You follow the instructions, throw your documents (W-2, 1099's, prior year tax returns, etc.) in the FedEx Pak and call for a prepaid pick-up or drop it in any FedEx collection box.

A short while later, you'll get an email link to your secure web page at MyNetCPA.com where you'll view your scanned documents, your preliminary tax return and any notes from me or our other associate CPAs. We may request a brief phone call to chat about the return, at your convenience.

Once you approve the return online, we e-file it with the IRS & your state(s) for you and you'll get your tax refund in just a few days (if applicable).

"It just couldn't be easier!"TM

Take this opportunity to check out the website & order before the rush begins!

Go to MyNetCPA.com

Thanks!

Ken