Consistent with a Financial Management Service initiative announced in April of this year, the IRS today issued proposed regulations to significantly increase the number of electronic transactions between taxpayers and the federal government.
The proposed regulations (REG 153340-09) would eliminate the rules for making federal tax deposits by paper coupon because the paper coupon system will no longer be maintained by the Treasury Department after Dec. 31, 2010. The proposed regulations generally maintain existing rules for depositing federal taxes through the Electronic Federal Tax Payment System (EFTPS).
For more information about the discontinuation of the paper coupons please call 714.569.1000.
Sherry Radmore, CPA, MST
On July 30, the House of Representatives with a vote of 241-154 failed to gain the necessary 2/3 vote for passage of H.R. 5982, the Small Business Tax Relief Act of 2010. The bill would have repealed a controversial section of the Patient Protection and Affordable Care Act (Health Care Act P.L. 111-148) that places new information reporting burdens on businesses after Dec. 31, 2011 requiring: (1) businesses that pay any amount greater than $600 during the year to non-tax-exempt corporate providers of property and services will have to file an information report with each provider and with IRS; and (2) businesses will have to file information returns with respect to any person (including corporations) that receives $600 or more from the business in exchange for property and merchandise.
For more information please call Sherry Radmore at 714.569.1000
Protect Yourself from Employee Theft
The responsibilities of receiving funds, disbursing funds, writing checks, signing checks, and reconciling bank accounts are often given to a single employee when in fact these duties should be separated. Having one employee responsible for all cash-related functions makes your business vulnerable to fraud.
We all want to trust employees but often times employees have external pressures that result in workplace theft.
Here are a few steps that you can take to protect you and your company:
- Have monthly bank statements mailed to the owner’s home.
- The owner should review each month’s bank statement for unusual transactions such as declining deposits and unfamiliar payees.
- The owner should also look for signatures or endorsements that look forged, missing checks, check numbers that are out of order, and checks where the payee listed does not match the name in the check register.
Business owners should also consider an independent review of the cash accounts and bank statements by an anti-fraud specialist. Fill out a risk assessment checklist and send it in to be reviewed by one of our Certified Fraud Examiners. For more information about our anti-fraud services call ELLS CPAs at 714.569.1000.
Maria T. Arriola, CPA
The IRS has been sending out questionnaires to randomly selected 401 (k) plan sponsors across the country. If you have received one of these letters you have 90 days to complete the online questionnaire.
The IRS has stated that any answers given are for informational purposes only and will not trigger any sort of action or audit. But they have also stated that if selected, participation is mandatory and failure to respond will trigger further action. What that action will be goes unstated, but sounds rather ominous.
If you have received a letter from the IRS, we strongly urge you to contact your third party administrator before responding. Almost all will be willing to assist you with completing the questionnaire. For more information visit this IRS webpage.
For more information about 401 (k) audit compliance or if you have received a IRS questionnaire please call Maria Arriola at 714.569.1000.
OC Business Journal Honors Women In Business
Maria Arriola and Sherry Radmore hosted a table at the OCBJ luncheon at the Hyatt Regency in Irvine on May 25th. Guests (from left to right) included Mari Kurtz, Lisa Gorelick, Wendy Richards, Janice Sidorick, Diane Lawrence and Ginny Shoji.
Cal CPA Mixer
A great time was had by all who attended the CalCPA mixer and installation dinner at Zov’s in Tustin on May 6th. The smiling faces in the photo are Suresh Narayanamoorthy, Carol Painter, Greg Lewis, Sherry Radmore, Jeff Boxx, and Lee Weir. Throughout the evening they mixed and mingled with fellow CPAs and service providers.
California Agriculture License Plate
Drivers who want to support the state’s agriculture industry can dig up $50 in addition to normal registration fees for license plates. The new plates will feature a white background with the word “agriculture” along the bottom. Plate profits will be used mainly for education and training programs in the secondary schools. But! Before the DMV will agree to produce the plates, the Ag department needs to unearth 7,500 in pre-orders. Check it out at
CalAgPlate.com.
Grantor-retained annunity trusts (GRATS) have been a favorite estate planning tool to minimize gift taxes for larger estates. Congress is seriously considering a bill that, among other loophole-plugging items, will change the two-year term to a minimum ten-year term for any GRAT. If you presently have, or are considering setting up a GRAT, there’s no time to waste to get the ball rolling. Call your ELLS advisor to arrange an appointment to review your options.
Required Minimum Distributions are back
Required Minimum Distributions (RMD) from IRAs and pension plans are back in 2010.
Any RMD not taken from your IRA or qualified plan by December 31, 2010 will be subject to a 50% penalty.
To figure your RMD, use the value of your accounts as of December 31, 2009.
Your ELLS advisor can help you with this calculation.
Cal State Fullerton Mid Year Economic Forecast luncheon
Shareholder Maria Arriola hosts clients and referral sources at the Cal State Fullerton Mid Year Economic Forecast luncheon on April 20th at the Hyatt Regency in Irvine. From left to right in photo above are guests Heidi Larkin-Reed, President and CEO of the Orange Chamber of Commerce, Kevin Carter, President of Carter Commercial Group, Jackie Luxenburg of Bristol Park Medical Group, John Somers, also from Bristol Park Medical Group, Debbie Santoro, Community Bank, Maria Arriola, and Linda Boyd and Pian Lau both of the Orange Coast Women’s Medical Group.