IF YOU HAD INSURANCE THROUGH THE MARKETPLACE....

YOU NEED YOUR 1095-A

If you enrolled in coverage through the Marketplace you will need the information on Form 1095-A to complete Form 8962 to reconcile any advance payments of the premium tax credit or claim the premium tax credit, and to file a complete and accurate tax return. If you need a copy of your Form 1095-A, you should go to HealthCare.gov or your state Marketplace website and log into your Marketplace account, or call your Marketplace call center. Although information from the Form 1095-C - information about an offer of employer provided coverage - can assist you in determining eligibility for the premium tax credit, it is not necessary to have Form 1095-C to file your return. See Publication 974 for additional information on claiming the premium tax credit.

You do not have to wait for either Form 1095-B or 1095-C from your coverage provider or employer to file your individual income tax return. You can use other forms of documentation, in lieu of the Form 1095 information returns to prepare your tax return. Other forms of documentation that would provide proof of your insurance coverage include.

  • insurance cards,
  • explanation of benefits
  • statements from your insurer,
  • W-2 or payroll statements reflecting health insurance deductions,
  • records of advance payments of the premium tax credit and
  • other statements indicating that you, or a member of your family, had health care coverage.

Look out for Form 1095 A, B, and or C to arrive in the mail.

 Form 1095-A is used to report certain information to the IRS about individuals who enroll in a qualified health plan through the Marketplace

Form 1095-B is used to report certain information to the IRS and to taxpayers about individuals who are covered by minimum essential coverage and therefore are not liable for the individual shared responsibility payment.

Form 1095-C is filed and furnished to any employee of an Applicable Large Employers (ALE) member who is a full-time employee for one or more months of the calendar. ALE members must report that information for all twelve months of the calendar year for each employee.

We need the 1095 and apparently, any 1099R that has tax withheld.

ATABS FEES

Fee Schedule

Fees below are effective October 21, 2017.

Most industry surveys confirm that the fees we charge for our professional services are very reasonable and competitive. They are also not negotiable. If the price is your most important consideration, and you find someone else who will work cheaper, go for it, but remember that you "get what you pay for".

CONSULTATIONS

Tax planning, consultations, or e-mail consultations that require research, document preparation, or longer exchanges, are billed at $180/hour in 30 minute increments of $90 each from the start of the session. NOTE: Information provided to us during Tax Return Preparation is confidential but subject to subpoena, whereas Tax Planning and Business Consultations are “Privileged Communications” not subject to subpoena.
INCORPORATION /LLC FORMATION ("For-profit") carries a fee of $950.00 prepaid as a (non-refundable) Minimum Fee Retainer that includes
• All initial Secretary of State and Corporation Commission fees, such as Filing initial Statement of Information (regarding Officers & Directors),
• Preparing standard form Charter Documents such as Articles of Incorporation (or Operating Agreement for an LLC), and By-Laws
• Obtaining Federal and State Employer ID numbers,
• Helping you through the tax decision of S-Corporation Election (Form 2553),
• Two (2) Hours of Business Consulting, including 1 year of Registered Agent service.
NOTE: Other States may have additional charges. You must incorporate (or register as a 'Foreign' entity to do business) in the State where your business physically resides or has activities that qualify as "doing business."

NOTE: We are happy to conduct Annual Meetings of Shareholders/Directors during your Corporate Tax Return Appointment at no additional cost (if we prepare both your corporate and your personal return), but it is your responsibility to document such meetings and retain your Minutes. Minutes do not have to be sent anywhere; they just have to be kept in the event there is a question or challenge by someone trying to sue you. If you want us to draft and maintain such minutes there will be an added charge of $75 per meeting providing the entire session is no longer than one hour. Nothing discussed in Shareholder/Director meetings or in filling out requisite forms is intended to be, nor should you consider it to be, legal advice.

NON-PROFIT INCORPORATION carries a fee of $1,200.00 prepaid as a (non-refundable) Minimum Fee Retainer that includes:
• Secretary of State and other fees, excluding Federal fees to secure Tax Exempt (501) Status,
• Preparing standard form Charter Documents such as Articles of Incorporation (or Articles of Association for an Unincorporated Association), and By-Laws
• Obtaining Federal and State Employer ID numbers,
• Participating in one pre-formation Organizational meeting, Hosting and acting as Secretary for your First Meeting of Directors (no other Business Consulting is included),
• Filing initial Statement of Information (RE Officers & Directors), and Drafting your Tax Exempt Application (Form 1023EZ/1023/1024 as appropriate for the type of Non-Profit activity)
• 1 year of Registered Agent service.
NOTE: Creating a Non-Profit entity (whether or not it is Incorporated) does not automatically make it Tax Exempt or able to issue tax deductible receipts for Donations.

EXISTING NON-PROFIT entity REQUEST for TAX EXEMPTION carries a Document Preparation Fee of $450 that includes compiling IRS Form 1023/1024 depending on type of Non-Profit) plus Registration as a Charity with the Attorney General, and participating in follow-up interaction with IRS until they issue their Determination Letter. This fee applies to Non-Profit entities that we did not create.

NOTE: IRS requires a $400 Filing Fee if the organization’s annual Gross Receipts will be $50,000 or less. IRS requires an $850 Filing Fee if the annual Gross Receipts will be greater than $50,000. Our fee does include the CA Form 3500 fee of $25 and the Registry of Charitable Trust Basic Fee of $25.

MERGER or DISSOLUTION fee for a Corporation or LLC is $75.00 (in addition to any State Filing Fees). The $75 includes a certified copy fee that the State charges.

BOOKKEEPING

If you are in business, you MUST maintain a formal set of Books of Account that will be requested if you ever have an Audit. We can help you with that (see our fees below). Be warned that IRS is now routinely requiring, during business audits, an electronic copy of Taxpayer's self-maintained QuickBooks File if that information was used in tax return preparation.

QUICKBOOKS file setup (whether we will do the Bookkeeping or for those who want to do it themselves) is subject to a non-refundable, Minimum Fee Retainer of $150.

QUICKEN conversion (to make your file useful for tax preparation), and related QUICKBOOKS TRAINING conducted only in our office, are $75/hour subject to a one hour (non-refundable) Minimum Fee Retainer of $75.

BOOKKEEPING SERVICE fees are prepaid monthly (at the start of each month's service), are based on the time and expertise required, completeness of your data, and timeliness in receipt of your data. Our pricing "rule" is $1.00/transaction, or $75/hour whichever is greater, but not less than $75/month for Financial Statements issued, (note that deposits are posted as a single transaction unless your business requires tracking each deposit, sale, product or item). NOTE: Writing and/or signing checks (with your rubber stamp signature) costs $7.00/check (discounts available for Non-Profits).

A NON-REFUNDABLE, MINIMUM FEE RETAINER of $450 IS REQUIRED FOR ALL NEW ACCOUNTS ENGAGED BEFORE NOVEMBER 1st (after that date see "Year-End Bookkeeping" below).

"YEAR-END" BOOKKEEPING. December and January are two of our busiest months due to tax agency deadlines--if you cannot possibly bring in your records until then we cannot guarantee your return will not need to be extended, and you will be billed at the same rates above but subject to a non-refundable, Minimum Fee Retainer of $900 ($75 x 12 months). Work will begin on your "Year-End" Bookkeeping after we receive your Retainer.

BILLING POLICY. Invoiced Accounts that are not paid in full within 30-days are subject to $10/month Late Penalty Fee. Checks Returned for ANY reason, or amounts charged back Credit Card payments are subject to a $50 NSF, Returned Item, or Credit Card Chargeback Penalty Fee. NOTE: Any payments received after a Penalty Fee is assessed are applied first to such Fees assessed, and the balance of the amount originally owed.

PAYROLL SERVICE is provided through affiliates in that field. Call for an estimated fee for your situation. Fees depend on services requested which may include writing checks on your account (for your signature), direct deposit, debit and payment of taxes and quarterly tax filings. Year-end reporting is provided if service is uninterrupted through year-end.

TAX RETURNS
TAX RETURN PREPARATION fees are based on forms used in the return AND THE TIME AND EXPERTISE REQUIRED, include Electronic filing and any one State filing. Tax Returns will not be released to the client for removal from our office (even in "draft" printed or PDF format), or e-filed until our fees are paid in full.

1. INDIVIDUAL RETURNS
• $60 Form 1040EZ ~ $40 for a 1040EZ for your Dependent Child/Student under age 24 if we prepare your return.
• $120 Form 1040/1040A (no itemized deductions)
• $75 Itemized Deductions Schedule-A, PLUS:
• $35 Form 2106 Unreimbursed Employee Expense
• $25 Form 8829 Employee Office in the Home
• $20 Form 8863 Education Credits
• $5 Form 1095-OTR Health Insurance Coverage
• $25 Form 8962 Health Insurance Premium Tax Credit
• $25 Form 8965 Health coverage Exemption
• $10 Form 8283 Non-Cash Donations Greater Than $500 per Recipient
• $15 Form 4952 Investment Interest Expense
• $35 Form 4684 Casualty Losses, per loss, except for Presidentially Declared Disaster Losses which are free of charge.
• $15 Interest & Dividend Income Schedule-B. If you have a Foreign account or Trust, a separate form will be required and the fee is $100.
• $195 Business Schedule-C or Farm Schedule-F (Minimum fee) – our Average last year was $275, including Auto Expense Worksheet (up to 3 vehicles - additional vehicles $15 each), Depreciation Form 4562, Office in Home Form 8829, and Self-Employment Tax Schedule SE. Businesses are Audit Targets. Income verification required, bring your business bank statements, and completed bookkeeping. (IF YOU BRING ONLY RECEIPTS AND BANK STATEMENTS, YOU WILL BE CHARGED $75/HR IN ADDITION TO THE MINIMUM FEE.)
• $20 Capital Gain/Loss Schedule-D (non-business)
• $45 Capital Gain/Loss Form 4794 (business or rental) each sale
• $75 Rental Income Schedule-E (Residential and Commercial Rentals) (Minimum Fee per each property and includes Depreciation Form 4562, and Passive Loss Limitation Form 8582 and related Worksheets). Income and Depreciation on Rentals are Audit Targets. Bring your prop statements and HUD statements from purchase and Improvement Loans.
• $75 Farm Rental-Form 4835 (per each property and includes Depreciation Form 4562, and Passive Loss Limitation Form 8582 and related Worksheets)
• $20 per page Gambling Winnings Forms W2G, (up to 4 forms per page)
• $5 per Wage Income Form W2, for each in excess of 4 forms
• $5 per Retirement/Pension Income Forms 1099-R, for each in excess of 4 forms
• $5 per Miscellaneous Income Forms 1099-MISC, for each in excess of 3 forms
• $50 Extensions (pre-paid)
• $75 ($195 total) Earned Income Tax Credit (EITC) (parents with children) due to new "due diligence" requirements placed by IRS on Tax Preparers we shall require the following, additional documentation to be provided by the Taxpayer: school, child care provider, landlord, medical or other records that designate the child’s place of residency as that of the Taxpayer; if child is disabled a Doctor, health care provider, or Social Services agency statement; if parent is self-employed a copy of your business license, and records of gross receipts and expenses provided by Taxpayer. NOTE: We are now required to retain these documents for 3 years.
• $100 CA Registered Domestic Partners (RDP’s), whether mixed gender or same gender unions must file separate, de-coupled federal and state returns reflecting full information on both parties. This fee is in addition to the per form fees for the returns based on the above. RDP's must be registered with the CA Secretary of State, and may file joint returns at the State level while at the Federal level they file individual returns but splitting income and expense as if filing married-Separate.
• $100 First Time Homebuyer Tax Credits (are claimed on "paper-filed" tax returns and are different for Federal and California, require extensive documentation to be provided by the taxpayer). Fee is $50 for Federal only credit. This fee is in addition to the fees for the returns based on the above.
• $50 each for 2nd or additional State returns.
• $125 Minimum Fee Retainer for Amendments
Not all Forms/Schedules that may be needed for your return are listed above.

Prior year Non-Filers must pay a $195 per year, Non-refundable, Minimum Fee Retainer, execute an IRS Power of Attorney Form 2848, provide full relevant documentation (before our work commences), and must also agree to have no further direct contact with IRS.

2. CORPORATION ("C" or "S"), PARTNERSHIP, LLC RETURNS preparation fees are based on the time and expertise required, and the complexity and degree of organization of your data.

Corporate or LLC Minimum Fee is $575 (plus $15 for each participant Schedule-K-1) for a Services only entity that does not require a Balance Sheet (i.e., Gross Receipts are under $250,000 and Total Corporate Assets are under $250,000, or $600,000 in Assets for Partnership/LLC). Fee charged includes electronic filing (if available) and one State Return if required.

NOTE: If the entity sells products, carries inventory, or exceeds the above amounts, the return will be required to file a Balance Sheet -- that will add $175 to the Minimum Fee, making it $750. If additional Schedules or Forms are required there will be an additional fee for each such Schedule of Form.

NOTE: Our bookkeeping clients receive a discount of $100 on the Corporate tax return fees.

3. ESTATE RETURNS ("Death Taxes") are subject to a $1,200 Non Refundable Minimum Fee Retainer, require the execution of a Form 2848 IRS Power of Attorney by the Executor, and are based on the time and expertise required, the degree of organization of your data and supporting documents, and whether there are any challenges by the IRS to Asset Valuations reported.

4. NON-PROFIT RETURNS (for Taxable Foundations or Sec. 501(c) Tax-Exempt Organizations), Forms 990 or 990EZ, are based on the time and expertise required and the degree of organization of your data. Minimum Fee is $575 providing there is no "Unrelated Business Income" (that is taxable and requires an additional Form 990-T filing with a Minimum Fee of $125). Fees include electronic filing (if available) and one State.

5. TRUST RETURNS (Fiduciary Returns) are based on the time and expertise required and the degree of organization of your data. Minimum Fee is $475 (for a Simple or Grantor Living Trust), or $600 (for a Complex or Decedent's Estate Trust), plus $15 for each Beneficiary Schedule-K-1. Fee includes electronic filing (if available) and one State. If additional Schedules or Forms are required there will be an additional fee for each.

TAX AUDIT REPRESENTATION fees are hourly based, subject to a $2,160 prepaid, non-refundable, Minimum Fee Retainer PER INCOME TAX YEAR UNDER AUDIT, and do not include any subsequent Appeals or Tax Court Hearings or related filings. Tax Audits are increasingly being conducted by correspondence (those more often than not end up in Appeals), sometimes at the IRS' office locally, but more often are held in our office if the return involves a business.

NOTE: If you undertake the Audit yourself or our office did not prepare the original return and subsequently turn it over to us for Reconsideration (a Re-do by a different Audit Group) or Appeals, the Minimum Fee Retainer will be $2,825 PER TAX YEAR UNDER AUDIT.

If the Audit scope or complexity increases and more time is needed than is covered by the above Retainer, you will be asked to provide additional funds.

TAX AUDIT APPEALS (or Collections) fees are hourly based, subject to a non-refundable, $600 prepaid, Minimum Fee Retainer per Income Tax Year if we handled the underlying Audit. If we are taking over from someone else the Minimum Retainer will be $1800.

TAX REPRESENTATION (Outside of Income Tax Audit), such as Reviewing and Responding to an IRS CP-2000 "Notice of Proposed Assessment" (based on omissions on your tax return), or other tax agency matters (EDD, FTB, BOE, or other) that require written replies or telephone resolution are subject to a $125 non-refundable Minimum Fee Retainer -- avoid this fee by reporting ALL your income in the original return!

THIRD PARTY WRITTEN COMMUNICATIONS, such as standardized Lender Letters (often required for some refinancing), are subject to a fee of $60 (plus $5 transmission fee) and their content will contain language that protects our firm from lender lawsuits if your loan goes bad.
SECRETARY OF STATE ANNUAL FILINGS, such as Statement of information require a Filing Fee of $25 payable to the Secretary of State and a processing Fee for our service of $25.

$60 NO SHOW FEE. We charge a $60 NO SHOW FEE if your tax appointment is NOT canceled OR rescheduled AT LEAST 24 hours prior. This fee is payable when your return is finally done.

Join The Family!

JOIN "THE FAMILY"

AT

ATABS TAX SCHOOL

I don't know of a government that does not tax its citizens.  Many people like to debate about who should be paying and how much, alas that is not the concern of the tax preparer.

The tax preparer is only concerned with making sure you deduct what it cost you to make your money...

For you GAMBLERS...

Do you enjoy wagering at casinos and participating in other games of chance? The IRS requires you to pay tax on your fair share of winnings as reported by the "house."

Alert: The IRS has issued new final reporting regulations that address the rules for reporting payments from bingo, keno and slot machine winnings. (IRS Reg. 1.6041-10, 12/29/16)

Specifically, the IRS simplified and updated existing rules for providing required information.

Here's the whole story: For starters, you must pay tax on gambling winnings, but you can offset some of the tax by substantiating losses up to the amount of the winnings. To keep track of winning amounts, the IRS generally requires reporting for $600 or more in a year, but prior regulations established higher amounts of $1,200 for bingo games and slot machines and $1,500 from keno. These payments are reported on Form W-2G, Certain Gambling Winnings.

Among other requirements, Form W-2G must include the name, address and taxpayer identification number of the recipient and a general description of two forms of identification used to verify this information.

Following up on proposed regulations issued in 2015, the new final regs contain the following clarifications:

  • Reportable winnings for bingo means winnings of $1,200 or more from one bingo game without reduction for the amount wagered. All winnings received from all wagers made during one bingo game are combined.
  • Reportable winnings for keno means winnings of $1,500 or more from one keno game reduced by the amount wagered on the same keno game. All winnings received from all wagers made during one keno game are combined.
  • Reportable winnings for slot machines means winnings of $1,200 or more from one slot machine play without reduction for the amount wagered.

Tip: The new final regs are generally effective for gambling winnings from bingo, keno and slot machines reported after 2016.

 

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Copyright 2017 Business Management Daily, a division of Capitol Information Group, Inc. All rights reserved.

FYI AND FOR THOSE WHO HAVE IT "TWISTED"

Unfortunately, many people mistakenly believe all CPAs do Tax Preparation when this is not the case.  CPAs have their work cut out for them keeping up with income and expenditures for businesses and do not specialize in tax law nor tax preparation!  Some DO prepare, but do not expect them to be better at it than seasoned tax preparers.  If you are not incorporated, nor have publicly traded stock, you probably don't need a CPA.  Corporations submitting "audited books" are REQUIRED to have them signed by a CPA.   Sole proprietors will fare better and cheaper with a Tax Pro.  Many CPA firms have Tax Pros working for them...

What does THIS STATEMENT Presuppose?

When long-term disability premiums (LTD) are paid with pre-tax dollars, the monthly disability benefit becomes taxable income.

The BENEFIT should FAR EXCEED the amount paid in PREMIUMS.  Taxing the benefit instead of the amount paid appears greedy.  The premiums paid in advance of the retirement period is money being used by the Insurer immediately and possibly long term.

Don't they (The Insurer) have to pay taxes on that money as INCOME?  How many times is the Government trying to get paid on that money?

Ok, so the money having been made by you and spent on insurance, but "not counted" for tax purposes is money the Government loses.  It is also a lost deduction because you are not supposed to claim it as an expense although it was.

I wonder which is greater, the loss of the tax to them, or the deduction to you annually?

So to make up for the loss of the amount of tax on that little money, they will tax ALL THE MONEY IN THE BENEFIT when you start getting it!  That just seems over the top to me. IJS

Time Running Out to Claim $1 Billion in Tax Refunds from 2013

Taxpayers who did not file a tax return for 2013 may be one of the nearly 1 million who may be due a refund from that year. Taxpayers must claim their part of almost $1 billion by this year’s April 18 tax deadline. To claim a refund, taxpayers must file a 2013 federal income tax return. Here are some facts about unclaimed refunds:

The unclaimed refunds apply to people who did not file a federal income tax return for 2013. The IRS estimates that half the potential refunds are more than $763.
Some people, such as students and part-time workers, may not have filed because they had too little income to require them to file a tax return. They may have a refund waiting if they had taxes withheld from their wages or made quarterly estimated payments. A refund could also apply if they qualify for certain tax credits, such as the Earned Income Tax Credit.
The law generally provides a three-year window to claim a tax refund. For 2013 returns, the window closes on April 18, 2017.
The law requires that taxpayers properly address, mail and postmark their tax returns by April 18, 2017, to claim their refund.
After three years, unclaimed refunds become property of the U.S. Treasury. There is no penalty for filing a late return if taxpayers are due a refund.
The IRS may hold 2013 refunds if taxpayers have not filed tax returns for 2014 and 2015. The U.S. Treasury will apply the refund to any federal or state tax owed. Refunds may also be held to offset unpaid child support or past due federal debts such as student loans.
Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for prior years should ask for copies from employers, banks or other payers. Taxpayers unable to get these copies can request a wage and income transcript either online or by mail. Taxpayers can also file Form 4506-T to get a transcript.
The three-year window also usually applies to a refund from an amended return. In general, you must file Form 1040X, Amended U.S. Individual Income Tax Return, within three years from the date you filed your original tax return. You can also file it within two years from the date you paid the tax, if that date is later than the three-year rule. That means the deadline for most people to amend their 2013 tax return and claim a refund will expire on April 18, 2017.

You're not just another client!