2016 Second Quarter Federal Tax Developments

During the second quarter of 2016, there were many important federal tax developments. This letter highlights some of the more significant developments for you. As always, contact our office if you have any questions. Tax legislation President Obama signed the Recovering Missing Children Act (HR 3209) in June. The bill amends Code Sec. 6103 to… Read more »

IRS Cautions Taxpayers About Scammers After Orlando Mass-Shooting

Possible fake charity scams may be emerging following the mass-shooting in Orlando, the IRS has warned. Scammers often take advantage of tragedies to impersonate charitable organizations. Scammers take a variety of approaches, the IRS reported. They may contact taxpayers by telephone, social media, e-mail, or person solicitations. Often, scammers will use names similar to recognized… Read more »

Understanding Marginal vs. Effective Tax Rate

Taxes are a frustrating nightmare through which you have to wade. In the US, they’re made harder still by the fact that American citizens are taxed on a progressive tax scale (taxes rise with your income). That’s what creates your marginal and effective tax rates. Marginal tax rates are the rate of tax that applies… Read more »

IRS Warns Taxpayers About New Scam Demanding Payment for “Federal Student Tax”

The IRS is warning taxpayers of a new scam in which criminals demand payment for a nonexistent tax, the “federal student tax.” Although the 2016 filing season has ended, criminals continue to contact taxpayers, in this case students, with bogus phone calls. This latest scam involves criminals trying to convince taxpayers to wire money immediately to pay… Read more »

New SOC 2 Trust Service Principles Applicable for Periods Ending on or after December 15, 2016

The AICPA recently issued new Trust Services Principles (TSP Section 100) in April 2016 which supersedes the previous version issued in 2014. The most significant changes to the TSP include the following: Restructures and creates a new set of privacy criteria that is incorporated as part of the common criteria method of assessment and reporting…. Read more »

Upgrading QuickBooks – Do I Have To?

Do you have an older version of QuickBooks and wonder when the right time would be to upgrade to the newest version? A common question related to QuickBooks is whether or not you are required to upgrade your QuickBooks software and, if so, how often the upgrade should occur. The answer to this can depend… Read more »

Partners Who Work For Disregarded Entity Owned By Partnership Are Self-Employed, Regs Provide

The IRS has issued final, temporary and proposed regs that preserve a partner’s status as a partner, and not an employee, where the partner works for a disregarded entity owned by the partnership. The regs are consistent with Rev. Rul. 69-184, which concluded that members of a partnership are not employees of the partnership, even… Read more »

Do you Need A CPA?

These days, it’s hard to watch TV during tax season without seeing ads for CPAs. The question that has to be raised is this: in what circumstance do you need a CPA to help you file your taxes? Let’s take a look at a few of the situations in which you’ll likely appreciate the help… Read more »

Apple announces guidance to uninstall QuickTime for Windows users

Apple announced they will no longer be releasing QuickTime for Microsoft Windows security updates.   There are vulnerabilities affecting QuickTime for Windows.  It is recommended that you uninstall QuickTime to make sure your computer stays protected from security threats.   If you need help with uninstalling QuickTime or have questions regarding the security of your computer,… Read more »

Taxpayers can now pay IRS in cash at 7-Eleven

IRS’s “Pay with Cash at a Retail Partner.” IRS has announced a new payment option for individual taxpayers who need to pay their taxes with cash. Under the new arrangement that IRS provides in partnership with ACI Worldwide’s OfficialPayments.com and the PayNearMe Company, individuals can make a payment without the need of a bank account… Read more »