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We value the loyal, long-standing clients that we have had the pleasure of working with for many years. Kevin Malick of Appreciated Advertising is one of those clients, and he recently shared some thoughts on his experience of working with us for nearly a decade.

We value the loyal, long-standing clients that we have had the pleasure of working with for many years. Kevin Malick of Appreciated Advertising is one of those clients, and he recently shared some thoughts on his experience of working with us for nearly a decade.

“I have been working with the professionals at The Bookkeeping Company since 2007. As a small business owner, I don’t have time to do everything and I never have to worry about my payroll and finances. Knowing that the professionals at The Bookkeeping Company are taking care of everything for me gives me great peace of mind.

When my father passed away, I took over the family business and I sought an accountant and a bookkeeper. As a member of OEA (Omaha Executives Association), I knew Bob and trusted his expertise. I thought Berger & O’Toole and The Bookkeeping Company would be a good fit for my business, and they have been ever since. They now manage my personal finances as well.

The entire staff at The Bookkeeping Company is always friendly and courteous. I used to dread tax time and tax preparation, but their staff takes care of everything for me and they have taken the worry out the process for me.”

It is our pleasure to work with Kevin, and the many clients that we have been working with for many years. Give us a call today to learn more about how the experienced accountants at Berger & O’Toole and the professionals at The Bookkeeping Company can help take the worry out of your taxes and finances.

Working for home can have many benefits, and while it may not be for everyone, many employees prefer a home office over a commute to a traditional office. According to Global Workplace Analytics, regular work-at-home employment among the non-self-employed population has increased 100% since 2005.

Working for home can have many benefits, and while it may not be for everyone, many employees prefer a home office over a commute to a traditional office. According to Global Workplace Analytics, regular work-at-home employment among the non-self-employed population has increased 100% since 2005.

A recent study conducted by the organization, one of the foremost authorities on how, when and where people are working, found that 50% of the US workforce holds a job that is compatible with at least partial telecommute, and as much as 25% of the population works from home with regularity. The study found that 80-90% of the US workforce would like to telecommute at least part-time.

The benefits of telecommuting extend beyond convenience and lack of a commute – there can be significant tax benefits for employees. Understanding if you qualify for a home office deduction is critical, and our experienced staff can help.

Here are some considerations to keep in mind:

• You must use your home for business use on a regular basis and as your principal place of business
• You must use part of your home exclusively for conducting business
• Your business use must be for the convenience of the employer, not the employee
• You must not rent any portion of your home to your employer or receive any reimbursements for the use of your home for business

If you qualify for the home office deduction, you can deduct prorated amounts for the following:

Home mortgage interest, or rent
• Utility bills
• Home repairs
• Depreciation

If you do not qualify for the home office deduction, you may still qualify for some business-related expenses. These expenses can fall into one of two categories:

• Business Expenses: business costs that are ordinary, necessary and reasonable, such as office supplies, postage, telephone line. You may also be allowed to depreciate the cost of computers, office furniture and possibly even the cost of the office itself
• Homeowners’ Deductions: expenses that are related to your home, such as home mortgage interest and real estate taxes, are allowed as itemized deductions regardless of your home office status

Taking advantage of available benefits is always advised, but the home office deduction is highly scrutinized by the IRS so understanding the rules and keeping meticulous records are essential. The experts with the Bookkeeping Company can help you manage your records on a regular basis in order to maximize eligible deductions. For example, if you conduct client meetings in your home you may qualify but the home office deduction, but meticulous records of dates and times of meetings, as well as understanding the minimum requirements, are important. Our bookkeepers can assist with the proper documentation.

As technological advances continue to improve, more companies are opting for a virtual environment. In many industries, employees can work from anywhere, and the need for a traditional brick and mortar building becomes less important. If you work virtually, or would like to consider it, let the experts in our office help you maximize the arrangement!

One thing we hear all the time from small business owners is that they never expected all the paperwork! Budgets, payroll, tax forms – it can all be very overwhelming! The Bookkeeping Company can help you wade through all the paperwork, and determine if you need the help of a bookkeeper or if an accountant is what you need.

One thing we hear all the time from small business owners is that they never expected all the paperwork! Budgets, payroll, tax forms – it can all be very overwhelming! The Bookkeeping Company can help you wade through all the paperwork, and determine if you need the help of a bookkeeper or if an accountant is what you need.

We help individuals and small business owners everyday who become overwhelmed with the papers and forms and deadlines. It’s not unusual for us to meet a client who thinks they need the help of an accountant, when in fact a bookkeeper is a better fit. So how do you know if you need a bookkeeper or an accountant? We can help!

If you struggle to keep up with invoices or the budget never seems to balance, a bookkeeper can help keep you on track and alleviate the worry. Here is a look at some of the areas a bookkeeper can help manage:

• Bank and Budget reconciliation
• Accounts payable and receivable
• Payroll services, including year-end tax reporting
• Quickbook Pro Advisor
• Financial Statements
• Sales and Use Tax Services

Our experienced staff can help with many other tasks, including notary public, contractor registration and new hire reporting. A full list of services offered by our qualified staff can be found here.

If you are comfortable with budgets and payroll, or have those covered by a qualified staff member, but you struggle with taxes, an accountant can assist you. Here’s a look at where an accountant can help:

• Full accounting services
• Audits, reviews and compilations
• Financial forecasts and projections
• Complete tax services
• Tax planning and preparation

Give us a call, we are happy to help you determine if you need the help of a bookkeeper or an accountant – or both!

According to Webster’s Dictionary, an entrepreneur is a person who starts a business and is willing to risk loss in order to make money. It is exciting to turn your dream and hard work into reality in the form of a successful business; but failing to take the proper steps to ensure your business is financially healthy can be disastrous.

According to Webster’s Dictionary, an entrepreneur is a person who starts a business and is willing to risk loss in order to make money. It is exciting to turn your dream and hard work into reality in the form of a successful business; but failing to take the proper steps to ensure your business is financially healthy can be disastrous.

When establishing your business, it is vital that you meet with an attorney to ensure your business is properly filed with state and federal entities and that your business is established with the proper state and federal IDs. Most business owners, who are experts in their own fields, are not experts in the rapidly- changing rules and regulations, so trusting those who are is crucial.

Business owners quickly learn the importance of proper record keeping. Missed deadlines or inaccurate tax or payroll filings can lead to penalties that are potentially insurmountable. Enlisting the help of The Bookkeeping Co. can give you the peace of mind that your company’s financial needs are being constantly monitored and maintained.

The Bookkeeping Co. will ensure your taxes are filed properly and on schedule, thereby avoiding any penalties for late or missed deadlines. We will not only help you balance and maintain your company’s budget, but we will help you understand the current and predicted future of your company’s financial situation. We will advise you accordingly, and ensure you understand the value and worth of your business.

Make an appointment with The Bookkeeping Co. today to learn more about how we can alleviate the worries associated with running a financially sound business, so you can focus on doing what you do best- running your business!

It’s tax season, the time of year when we are reminded of how much paper we collect and save. Many financial institutions are moving towards electronic records, which is a good solution to help cut down on the growing piles of paper. But it’s important to save and file some of documents.

It’s tax season, the time of year when we are reminded of how much paper we collect and save. Many financial institutions are moving towards electronic records, which is a good solution to help cut down on the growing piles of paper. But it’s important to save and file some of documents.

The IRS recommends maintaining tax returns and any supporting documents (W-2’s, income, deduction or credit documents, etc.) for at least seven years. This is the period of time you have to claim a refund that you are entitled to, or for the IRS to assess an additional tax if your reporting wasn’t accurate. Additional recommendations and details can be found on the IRS website.

The length of time you should hold on to other documents differs depending on the documents. Records of home improvement costs should be kept for as long as you own the home. Stock purchase documents showing the purchase price and date should be saved until you sell the investment. This can be extremely helpful if you decide to switch to a new stock broker.  

Everyday documents such as credit card statements, utility bills, banks statements and paycheck stubs can be destroyed after a year. Hold on to quarterly investment statements until you receive the annual statement. Medical bills, cancelled insurance policies and records of real estate sales should be filed for three years. Records of satisfied loans should be kept for at least seven years.

When you do dispose of records that are no longer necessary, they should be shredded to protect your sensitive information. Many organizations also offer free document shredding events to assist with safe disposal of records.

There are some documents that should be kept forever – marriage licenses, birth certificates, wills, adoption papers, death certificates and records of paid mortgages. We recommend storing these records in a safe lock box or safety deposit box.

The paper collection can be overwhelming. The Bookkeeping Co. can help you manage that growing pile by answering your questions about what needs to be kept and what can be tossed. Give us a call today and we will help you simplify your record keeping.

Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out.

The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or the IRS can assess additional tax. The information below reflects the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date.

Note: Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return.

President Biden support extending the individual tax provisions of the Tax Cuts and Jobs Act, many of which are set to expire next year, Department of the Treasury Secretary Janet Yellen said.

President Biden support extending the individual tax provisions of the Tax Cuts and Jobs Act, many of which are set to expire next year, Department of the Treasury Secretary Janet Yellen said.

"The President has made it clear that he would oppose raising back the taxes for working people and families making under $400,000," Secretary Yellen testified before the Senate Finance Committee during a March 21, 2024, hearing to review the White House fiscal year 2025 budget proposal.

She then affirmed that "he would" support extending the individual tax provisions of the TCJA when asked by committee Ranking Member Mike Crapo (R-Idaho), who noted that the budget did not make any mention of this.

Yellen defended the fiscal 2025 budget request against assertions that taxes will indeed go up for those making under $400,000, contrary to President Biden’s promise, because the taxes that are targeted to wealthy corporations to ensure they are paying their fair share will ultimately be passed down to their consumers in the form of higher prices and lower wages.

"I think what the impact when you change taxes on corporations, what the impact is on families involves a lot of channels that are speculative," Yellen said. "They are included in models that sometimes the Treasury used for the purposes of analysis, in a tax that is levied on corporations, that has no obvious direct effect on households."

The proposed budget would increase the corporate minimum tax from the current 15 percent to 21 percent, as well as raise the tax rate on U.S. multinationals’ foreign earnings from the current 10.5 percent to 21 percent. The current corporate tax rate would climb to 28 percent and the budget would eliminate tax breaks for million-dollar executive compensation. It would also increase the tax rate on corporate stock buybacks from 1 percent to 4 percent, among other business-related tax provisions.

By Gregory Twachtman, Washington News Editor

Corporations and billionaires will be paying more in taxes if Congress follows recommendations President Biden gave during his State of the Union address.

The IRS has launched a new initiative to improve tax compliance among high-income taxpayers who have not filed federal income tax returns since 2017.

The IRS has launched a new initiative to improve tax compliance among high-income taxpayers who have not filed federal income tax returns since 2017. This effort, funded by the Inflation Reduction Act, involves sending out IRS compliance letters to over 125,000 cases where tax returns have not been filed since 2017. These mailings include more than 25,000 to individuals with incomes exceeding $1 million and over 100,000 to those with incomes ranging between $400,000 and $1 million for the tax years 2017 to 2021. The IRS will begin mailing these compliance alerts, formally known as the CP59 Notice, this week.

Recipients of these letters should act promptly to prevent further notices, increased penalties, and stronger enforcement actions. Consulting a tax professional can help them swiftly file late tax returns and settle outstanding taxes, interest, and penalties. The failure-to-file penalty is 5 percent per month, capped at 25 percent of the tax owed. Additional resources are available on the IRS website for non-filers.

The non-filer initiative is part of the IRS's broader campaign to ensure large corporations, partnerships, and high-income individuals fulfill their tax obligations. Non-respondents to the non-filer letter will face further notices and enforcement actions. If someone consistently ignores these notices, the IRS may file a substitute tax return on their behalf. However, it's still advisable for the individual to file their own return to claim eligible exemptions, credits, and deductions.

FS-2024-6

IR-2024-56

An individual’s claim for innocent spouse relief was rejected for lack of jurisdiction because the taxpayer failed to file his petition within the 90-day deadline under Code Sec. 6015(e)(1)(A). 

An individual’s claim for innocent spouse relief was rejected for lack of jurisdiction because the taxpayer failed to file his petition within the 90-day deadline under Code Sec. 6015(e)(1)(A). The taxpayer argued that the deadline to file a petition for a denial of innocent spouse relief was not jurisdictional and asked that the Tax Court hear his case on equitable grounds. However, the Tax Court noted that a filing deadline is jurisdictional if Congress clearly states that it is. The IRS argued that argues that the 90-day filing deadline of Code Sec. 6015(e)(1)(A) was jurisdictional because Congress clearly stated that it was and the Supreme Court’s decision in Boechler, P.C. v. Commissioner, 142 S. Ct. 1493, in addition to numerous appellate cases, supported this argument.

The Tax Court examined the "text, context, and relevant historical treatment" of the provision at issue and concluded that the 90-day filing deadline of Code Sec. 6015(e)(1)(A) was jurisdictional. On the basis of statutory interpretation principles, the jurisdictional parenthetical in Code Sec. 6015(e)(1)(A) was unambiguous. It did not contain any ambiguous terms and there was a clear link between the jurisdictional parenthetical and the filing deadline. Specifically, Code Sec. 6015(e)(1)(A) is a provision that solely sets forth deadlines. Further, it was unclear what weight, if any, should be given to the equitable nature of Code Sec. 6015. The statutory context arguments were not strong enough to overcome the statutory text. Accordingly, the Tax Court ruled that the 90-day filing deadline in Code Sec. 6015(e)(1)(A) was jurisdictional.

P.A. Frutiger, 162 TC —, No. 5, Dec. 62,432

The IRS has continued to increase the amount of information available in multiple languages. This was part of the IRS transformation work under the Strategic Operating Plan, made possible by additional resources provided by the Inflation Reduction Act (P.L. 117-169).

The IRS has continued to increase the amount of information available in multiple languages. This was part of the IRS transformation work under the Strategic Operating Plan, made possible by additional resources provided by the Inflation Reduction Act (P.L. 117-169). On IRS.gov, taxpayers can select their preferred language from the dropdown menu at the top of the page, including Spanish, Vietnamese, Russian, Korean, Haitian Creole, Traditional Chinese and Simplified Chinese. Additionally, the Languages page gives taxpayers information in 21 languages on key topics such as "Your Rights as a Taxpayer" and "Who Needs to File."

"The IRS is committed to making further improvements for taxpayers in a wide range of areas, including expanding options available to taxpayers in multiple languages," said IRS Commissioner Danny Werfel. "Understanding taxes can be challenging enough, so it’s important for the IRS to put a variety of information on IRS.gov and other materials into the language a taxpayer knows best. This is part of the larger effort by the IRS to make taxes easier for all taxpayers," he added.

If taxpayers cannot find the answers to their tax questions on IRS.gov, they can call the IRS or get in-person help at an IRS Taxpayer Assistance Center. Finally, hundreds of IRS Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs have access to Over the Phone Interpreter services. VITA and TCE offer free basic tax return preparation to qualified individuals.

The IRS has granted to withholding agents an administrative exemption from the electronic filing requirements for Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons.

The IRS has granted to withholding agents an administrative exemption from the electronic filing requirements for Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons. Under the exemption:

• withholding agents (both U.S. and foreign persons) are not required to file Forms 1042 electronically during calendar year 2024; and
• withholding agents that are foreign persons are not required to file Forms 1042 electronically during calendar year 2025.

The exemption is automatic, so withholding agents do not need to file an electronic filing waiver request to use the exemption.

Electronic Filing of Form 1042

Under Code Sec. 6011(e), the IRS must prescribe regulations with standards for determining which federal tax returns must be filed electronically. In 2023, final regulations were published to implement amendments to Code Sec. 6011(e) that lowered the threshold number of returns for required electronic filing of certain returns. The regulations included requirements for filing Form 1042 electronically.

The final regulations provide that:

• a withholding agent (but not an individual, estate,or trust) must electronically file Form 1042 if the agent is required to file 10 or more returns of any type during the same calendar year in which Form 1042 is required to be filed;
• a withholding agent that is a partnership with more than 100 partners must electronically file Form 1042 regardless of the number of returns the partnership is required to file during the calendar year; and
• a withholding agent that is a financial institution must electronically file Form 1042 without regard to the number of returns it is required to file during the calendar year.

The final regulations apply to Forms 1042 required to be filed for tax years ending on or after December 31, 2023. This means that withholding agents must apply the new electronic filing requirements beginning with Forms 1042 due on or after March 15, 2024.

Challenges to Withholding Agents

Since the final regulations were published, the IRS received feedback from withholding agents noting challenges in transitioning to the procedures needed for filing Forms 1042 electronically. Withholding agents expressed concerns about the limited number of Approved IRS Modernized e-File Business Providers for Form 1042, and difficulties accessing the schema and business rules for filing Form 1042 electronically. Withholding agents that do not rely on modernized e-file business providers said that they needed more time to upgrade their systems for filing on the IRS’s Modernized e-File platform. Agents also noted challenges specific to foreign persons filing Forms 1042 regarding the authentication requirements necessary for accessing the platform.

In response to these concerns, the IRS used its power under the regulations to provide the exemption from the electronic filing requirement for Form 1042, in the interest of effective and efficient tax administration.