Due Diligence Checklist, Extended Filing Deadline and Payroll Tax Cut

New in 2012: Due Diligence Checklist Filing Requirement

On December 20, 2011, the IRS released regulations requiring paid tax preparers to file due diligence checklists with every return claiming the Earned Income Tax Credit (EITC).  The Paid Preparer’s Earned Income Credit Checklist, Form 8867, was previously required of tax preparers to complete and retain in their own personal records; it was intended to help them acquire the necessary eligibility information from their clients.

The IRS press release explains, “The regulations also reflect recent congressional action to increase the penalty for noncompliance with the due diligence requirement from $100 to $500.”

For more information on these final regulations, refer to the Treasury Decision 9570 published in the Federal Register.

Extended Deadline for Various Tax-Exempt Organizations

On December 16^th, 2011, the IRS announced that it had extended the January and February filing deadlines for tax-exempt organizations until March 30, 2012.  Due to portions of the IRS’s e-filing system being offline during January and February of this year, the IRS has granted the extension.  The rest of the system will be fully operational and all businesses and individuals are expected to file accurate and timely returns.

The extension applies to all those tax-exempt organizations whose normal filing deadline is either January 17^th or February 15^th of this year; this includes those organizations that had an extension deadline for these same dates.  The majority of tax-exempt organizations have a May 15^th filing deadline and will be unaffected by this extension.

For more information, refer to Notice 2012-4 posted on IRS.gov.

Payroll Tax Cut Extended into 2012

The reduced payroll tax rate effective in 2011 has been temporarily extended into 2012, benefiting nearly 160 million workers.  The cut, which reduced the Social Security tax withholding rate from 6.2 percent to 4.2 percent, will continue to be in effect through February 29^th, 2012 and will have no effect on employees’ future Social Security benefits.

Employers are expected to implement the new tax rate as soon as possible in 2012 but no later than January 31, 2012.  Any Social Security tax over-withheld in January should be compensated in an offsetting adjustment in employee pay as soon as possible and no later than March 31, 2012.  Employers and payroll companies must manage the withholding changes; employers are not required to take any action.

The press release explains, “The IRS will issue additional guidance as needed to implement the provisions of this new two-month extension, including revised employment tax forms and instructions and information for employees who may be subject to the new “recapture” provision.  For most employers, the quarterly employment tax return for the quarter ending March 31, 2012, is due April 30, 2012.”

Earning a Professional Designation is Good for Your Professional Reputation

Whether it’s enhancing your skill-set with a current employer or distinguishing yourself by building credibility with your own clients, the QS designation will stand as proof of your expertise.  To earn this QuickBooks designation you must complete the Professional Bookkeeper’s Guide to QuickBooks (PBG) and pass the final exam with a score of 90% or higher.  And just like that you receive professional certification!

Additional Benefits

In addition to the skills you acquire in completing the PBG, you will also receive the following:

• Thorough and complete training on the latest and greatest version of QuickBooks Pro
• 6 months’ worth of access to our experienced, qualified QuickBooks professional accountants and CPAs to answer your questions
• Accounting 101 Review
• 30 hours of Continuing Professional Education (CPE) in most states
• A 100% money-back guarantee
• A valuable addition to your reference library

The PBG offers the most competitive QuickBooks training on the market.  Master QuickBooks and become the premier QuickBooks consultant in your area.  Call Universal at 1-877-833-7909 and enroll in the Professional Bookkeeper’s Guide to QuickBooks today!

The 60-Second Sales Pitch

Time is in short supply, and with so many things vying for our attention, it’s important that we learn to communicate quickly and efficiently, especially when it comes to one’s business.  If you don’t learn to tell contacts what you do in less time than it takes them to ride to the top floor in an elevator (also called an Elevator Speech), you’re likely to lose their interest and their prospective business.

In a recent article posted to Entrepreneur.com, author and communications coach Carmine Gallo explains “How to Tell Your Business Story in 60 Seconds or Less.”  She explains, “Unfortunately, many small-business owners don’t think enough about their company’s story and how it comes across.” That’s why she’s developed four questions designed to enable business owners to develop an effective 60-second sales pitch.

1. What do you do?
2. What problems do you solve?
3. How is your product or service different?
4. Why should I care?

Your answers should be quick and to-the-point.  The following is an industry-specific example:

My name’s Sharon West and I enjoy doing what most people don’t: I file taxes, helping individuals and small business owners maximize their returns.  I’m a professional tax preparer [what your business does and what problems it solves].  You see, many paid tax preparers haven’t received any formal training in filing taxes and working with individuals on their tax planning.  That’s what I do and I’ve been trained to do it [how it’s different].  And if business owners are concerned that my fees will eat up their profits, I can guarantee that what I charge will come back to them at least 100% in tax savings.  Now how many tax professionals do you know of that come with that kind of guarantee? [why you should care]. Here’s my business card.  If you know of individuals or small business owners who could use a trusted tax professional, please refer them to me.

Practice your delivery so that it doesn’t sound canned or monotonous.  It should be exciting and engaging, communicating your passion for what you do and how well you do it.  And it’s important that you not drone on and on; that’s why it should be no longer than 60 seconds.  In fact, you may consider having two versions of your 60-second sales pitch: the 30-second version and the one minute version.

Ultimately, the 60-second sales pitch is designed for any networking situation where you can introduce yourself and your business to potential clients.  This may be at a convention, a conference, the grocery store, or the dentist’s office.  Remember that anyone can be a potential client or can refer you to a potential client.  And with your 60-second sales pitch on the tip of your tongue, you’re ready to sell yourself in any given situation with comfort and ease.

What’s your 60-second sales pitch?

If you’re interested in learning more about securing and retaining new clients, watch our free video on marketing. It will forever change your business approach!

Resource

Gallo, Carmine.  “How to Tell Your Business Story in 60 Seconds or Less.”  19 December 2011 Entrepreneur.com

IRS Tax Updates

Standard Mileage Rates Remain the Same

On December 9^th, the IRS announced the 2012 optional standard mileage rates which are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car will be:

• 55.5 cents per mile for business miles driven
• 23 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.

More information on calculating mileage rates, refer to the IRS website at Rev. Proc. 2010-51.

US and Dual Citizens Living outside the States

Because some taxpayers are dual citizens of the US who sometimes fail to meet the filing deadline for income tax returns or Reports of Foreign Bank and Financial Accounts (FBARs), the IRS is helping them achieve compliance by issuing a fact sheet summarizing information about their filing requirements.

Penalties will not be imposed in all cases of noncompliance.  In fact, those taxpayers who owe no U.S. tax (e.g., due to the application of the foreign earned income exclusion or foreign tax credits) will owe no failure to file or failure to pay penalties.

This fact sheet is provided for information purposes only and covers the following topics:

1. US income tax filing requirement
2. Penalties imposed for failure to file income tax returns or to pay tax
3. Possible additional penalties that may apply in particular cases
4. FBAR filing requirement
5. How to file an FBAR
6. Possible penalties for failure to file FBAR
7. New reporting requirement for foreign financial assets

For more information, visit the IRS website.

Foreign Financial Asset Reporting

The IRS has released a new information reporting form that taxpayers will use this coming tax filing season to report specified foreign financial assets for tax year 2011.

The new form, 8938 (Statement of Specified Foreign Financial Assets), will be filed by taxpayers with specific types and amounts of foreign financial assets or foreign accounts. You must determine if your clients are subject to this new requirement because failing to comply will result in significant penalties.

This filing requirement is the result of a new effort by the IRS to improve tax compliance by U.S. taxpayers with offshore financial accounts.  Those who may be required to file Form 8938 include U.S. citizens and residents, nonresidents who elect to file a joint income tax return and certain nonresidents who live in a U.S. territory.

Form 8938 is required when the total value of specified foreign assets exceeds certain thresholds.  For more information on the new form and the specific thresholds, visit FATCA page of irs.gov.

UAC’s Training Programs Will Help You Gain That Competitive Edge

Universal Accounting Center offers the best accounting, bookkeeping and tax training available.  Consider growing your tax preparation business by offering additional services to potential clients, like accounting.

Most of your competitors don’t offer specialized small-business accounting services.  But after completing the Professional Bookkeeper (PB) program, you can!  Consider a training program that is catered to your needs and busy schedule—one that will enable you to earn a professional designation after just 60 hours of your valuable time.

When you enroll in the Professional Bookkeeper Program you receive to the following:

• Flexible training you complete on your own schedule
• Rich and engaging training DVDs you can view again and again
• Hands-on instruction and practice sets through which you gain much-needed experience
• Training in building and marketing your new practice
• 6 months of valuable follow-up support
• The opportunity to earn professional certification
• Our iron-clad risk-free guarantee

Expand your service offerings by enrolling in UAC’s valuable training programs.  Call 1-877-833-7909 to enroll today!

Resource

–.  “Information for US Citizens or Dual Citizens Residing Outside the US.” Dec. 2011 IRS.gov

–. “IRS Announces 2012 Standard Mileage Rates, Most Rates Are the Same as in July.” 9 Dec. 2011 IRS.gov

–. “IRS Releases Guidance on Foreign Financial Asset Reporting.” 14 Dec. 2011 IRS.gov

Standards for IRS Continuing Education Providers and Accrediting Organizations

On December 6^th 2011, the IRS announced the standards they will use to approve Continuing Education (CE) Providers and IRS CE Accrediting organizations.  This enables the IRS to move forward with the new CE requirements where registered tax preparers must earn 15 hours of continuing professional education (CPE) credits each year, including 2 hours of ethics, 3 hours of federal tax updates, and 10 hours of general federal tax law topics.  This in addition to the requirement that tax preparers register with the IRS, secure a PTIN and pass a competency exam.

Preparers who must take the Registered Tax Return Preparer competency exam by the end of 2013 must also complete their CE courses in 2012.  These courses must be taken by IRS-approved providers.

According to the press release, the IRS requires organizations be one of the following in order to qualify as a provider:

• An accredited educational institution,
• Recognized for continuing education purposes by the licensing body of any state or U.S. territory,
• Approved by a qualifying organization as a provider of CE on subject matters designed for registered tax return preparers, enrolled agents, and enrolled retirement plan agents (such qualifying organizations will be known as accrediting organizations), or
• Any other professional organization, society or business recognized by the IRS as a provider of CE on subject matters designed for registered tax return preparers, enrolled agents, and enrolled retirement plan agents.

In order to become an accrediting organization, the required documentation—as outlined in section 4 of Revenue Procedure 2012-12—must be submitted to the address provided.  When approved, the organizations will be publicized by the IRS.

All approved organizations must obtain an IRS CE provider number which can be secured through an online application process.  An annual fee will also be required to cover third-party vendor costs for administering the CE provider application and renewal processes.  The fee includes the cost to be included on a public listing of all approved providers and to collect course collection information from providers; this enables the IRS to identify those individuals (via PTIN) who have completed a program. Qualifying organizations must renew their status with the IRS every three years.

For more information, visit the IRS at www.irs.gov/taxpros/ce.

UAC’s Training Programs Will Help You Gain That Competitive Edge

Universal Accounting Center offers the best accounting, bookkeeping and tax training available.  Consider growing your tax preparation business by offering additional services to potential clients, like accounting.

Most of your competitors don’t offer specialized small-business accounting services.  But after completing the Professional Bookkeeper (PB) program, you can!  Consider a training program that is catered to your needs and busy schedule—one that will enable you to earn a professional designation after just 60 hours of your valuable time.

When you enroll in the Professional Bookkeeper Program you receive to the following:

• Flexible training you complete on your own schedule
• Rich and engaging training DVDs you can view again and again
• Hands-on instruction and practice sets through which you gain much-needed experience
• Training in building and marketing your new practice
• 6 months of valuable follow-up support
• The opportunity to earn professional certification
• Our iron-clad risk-free guarantee

Expand your service offerings by enrolling in UAC’s valuable training programs.  Call 1-877-833-7909 to enroll today!

Resource

–.  “IRS Announces Standards for Continuing Education Providers and Accrediting Organizations.”  6 Dec 2011  IRS.gov

Celebrate the New Year with Effective Time Management Techniques

The tax season is officially upon us, which means only one thing: you’re about to be sucked into the black hole of tax preparation!

Okay, so it’s not that bad, but it will consume the majority of your time for the next few months.  So why not ensure that you’re making the most of that time?

A 2005 Microsoft survey found that professionals only average about three productive workdays every week.  When you’re paid by the hour, that reduces your income by 40%.  That’s a painful statistic for the self-employed.

But it doesn’t have be that way.  When you apply effective time management techniques, you use the workday to your advantage, maximizing your income by using less time to accomplish more work-related tasks.  Here are 6 tips we strongly recommend:

Delegate and outsource when possible. In a Small Business Review article, author John Egan lists this as his number one time management tip.  In his article he references Dave Durand, a time management expert who says small business owners should never engage in “minimum-wage work.”  He suggests handing those tasks off to someone else so the small-business owner can keep their “eye on the horizon.”  Sometimes it just doesn’t make sense to do everything yourself.  It’s wise to delegate and outsource some of those tasks that are too time-consuming for you, whether you partner with another professional to do them, or whether you assign the responsibility to someone within your organization.

Avoid time traps. No profession is immune to time leaks—interruptions, distractions, tangents that lead you off-task and make it difficult to be productive.  And it is impossible to plug those time leaks unless you know what they are.  Take a week or so to log interruptions, noting all those things that distract you from your core work tasks, specifically billable hours.  Once you have the information, you can evaluate it.  Which interruptions could have been avoided?  Which were of no value?  Perhaps someone regularly calls you for information that you could teach them to find themselves?  While the teaching moment may cost you an hour now, it may save you hours in the end.

Avoid multitasking. Most time management experts agree that splitting your attention amongst a slew of tasks can lessen productivity while generating more errors.  Focusing your attention on one task is the best way to accomplish more in less time and with greater accuracy.

Use “50% of your time engaged in the thoughts, activities and conversations that produce most of your results.” This tip comes recommended by authors Joe Mathews, Don Debolt and Deb Percival in an Entrepreneur.com article entitled “10 Time Management Tips That Work.”  It makes sense to focus your energy on those tasks that bring in the bacon.  However, often what we focus on isn’t necessarily what produces results.  Shifting your perspective on how you prioritize your time may be all it takes to put this principle into effect.

Plan each day.  Mathews, Debolt and Percival recommend you take 30 minutes each morning to schedule your workday.  Determine which tasks are most important and timely.  That way you ensure that you’re not only productive but responsible, completing those jobs that need your attention first.  Then, referring to that list of tasks, make a to-do list (and don’t forget, 50% of your day should be dedicated to those activities that produce the most results).

Plan for the big picture. While it’s important to plan your daily schedule, you should also look ahead and make plans for how you’d like to accomplish your vision.  This includes the big picture on where you see your business going, taking steps that will ensure you get there.

UAC’s QuickBooks Training Program

The Professional Bookkeeper’s Guide (PBG) to QuickBooks is designed to help you master all the software’s features and shortcuts, enabling you to work much more efficiently.  With 16 instructional CDs that contain 15 hours of training and an 800-page full-color instruction manual, you will have access to all you need in order to address your every client’s needs.

Upon completing the program you will be able to do the following:

• Pay bills quickly so that you and your clients never incur late penalties
• Be reminded when bills are due
• Write checks with one single click
• Create invoices quickly and effortlessly
• Become more organize by streamlining the process of tracking customers and vendors
• Keep on top of incoming and outgoing payments
• Access easy-to-read financial reports NOW
• Earn valuable certification as a QuickBooks Specialist

UAC’s Professional Bookkeeper’s Guide to QuickBooks (PBG) will enable you to master this accounting software, saving yourself time and energy as you work with your own and/or your clients’ accounts.  To become more efficient by learning all the time-saving features QuickBooks offers, call Universal at 1-877-833-7909 to enroll in the PBG Program today!

Resources

–.  “Survey Finds Workers Average Only Three Productive Days per Week.”  15 March 2005.  Microsoft.com

Egan, John.  “Time Management Tips.”  SmallBusinessReview.com

Mathews, Joe, Don Debolt and Deb Percival.  “10 Time Management Tips That Work.”  Entrepreneur.com

General Report of the IRSAC

The Internal Revenue Service Advisory Council (IRSAC) was established in 1953 and has since served as an advising body to the IRS Commissioner.  According to a recent IRS press release, the IRSAC, “reviews existing tax policy and recommends policies regarding both existing and emerging tax administration issues.  In addition, the IRSAC suggests operational improvements, conveys the public’s perception of professional standards and best practices for tax professionals and IRS activities, offers constructive observations regarding current or proposed IRS policies, programs, and procedures, and advises the Commissioner and senior IRS executives on substantive tax administration issues.”

One way the IRSAC accomplishes this mission is through their annual report which was recently released to the public.  It’s important that tax professionals be apprised of all the key recommendations put forth by the IRSAC and all its subgroups.

In the 2011 General Report of the Internal Revenue Service Advisory Council, the IRSAC makes two key recommendations:

1. Congress must ensure that the IRS is adequately funded in order to experience continued success in service, compliance and enforcement.  Their findings conclude that taxpayers and the tax system will continue to suffer if adequate resources are not diverted to the IRS.
2. Resource allocation must ensure the proper balance among service, compliance and enforcement at the IRS.

The IRSAC is divided into four subgroups: Wage and Investment (W&I), Small Business/Self-Employed (SBSE), Large Business and International (LB&I), and Office of Professional Responsibility (OPR).  The focus of each group for this report is noted as follows:

Wage and Investment Subgroup: asked to recommend the best ways to simplify the Schedule D redesign and revise the corresponding instructions.

Small Business/Self-Employed Subgroup: recommended nine actions relating to nine issues raised in the report.

1. Empower exam managers as an alternative to SBSE fast track settlement program
2. Enhance worker classification compliance with increased publicity for the voluntary classification settlement program
3. Provide tentative independent contractor status for appropriate compliant taxpayers that provide notice to the IRS
4. Update de minimis fringe guidance
5. Revise IRS streamlined installment agreement program and related electronic payment systems including online and direct debit programs to improve collection
6. Enhance collections by taking unsecured debt into consideration
7. Revise the IRS’s penalty abatement processes and the Reasonable Cause Assistant (RCA) to provide efficient and consistent treatment for abatements
8. Adopt technology to make taxpayer examinations more efficient and less burdensome to the taxpayer
9. Use appropriate performance measures to enhance customer service and increate collections

Large Business and International Subgroup: reported on six issues which included 1. The IRS’ use of remote work, 2. ways the LB& I can gain greater commercial awareness, 3. improvement of Schedule UTP, 4. improvement of IRS’ distance learning methods, 5. expanding the use of Fast Track Settlement, and 6. the IRS’ use of academic research.

Office of Professional Responsibility: provided feedback and recommendations on five key topics: 1. exclusive authority over discipline, 2. coordination of administrative responsibility over discipline, 3. additional guidance to tax practitioners, 4. recision of changes to final regulations, and 5. suggested adoption of USPAP by OPR in judging appraiser conduct.

To read this report in full, visit the official IRS website.

UAC’s Free Tax Resources

If you’re interested in accessing more tax resources, visit Universal’s website for free tax articles, a tax glossary, access to our tax forum, and convenient links to IRS tax forms.

Resource

–. “2011 IRSAC Public Meeting Briefing Book.”  16 November 2011 IRS.gov

Study Indicates Woman Are Unsatisfied in Their Accounting Careers

A recent report published in CPA Trendlines reveals that women are unhappy in their finance and accounting careers.  In a survey conducted over the past two years, only 11-12% of women surveyed indicated they are very satisfied in their career progression compared to 20-22% of their male counterparts.  19-25% of women are somewhat dissatisfied.

The survey also indicated that women find challenge a key factor in career satisfaction while men seek compensation.

Other findings include the following:

• 73% of women feel they face a different set of career challenges than their male counterparts
• 66-70% of women feel that the accounting profession allows women to balance their personal and professional lives
• Half of women feel that finance and accounting are mainly male professions
• 50-61% of men and women believe greater promotion of finance and accounting professions are the way to encourage more young women to enter the field

While the survey isn’t a completely positive reflection on women and the finance industry, it does indicate that change is necessary.  One reader, Elizabeth A. Brown, commented, “I’ve been in public accounting since 1979, got licenses in 1991 after returning to college in 1989.  I’ve always believed that the field was a great equalizer between men and women.  I have found that women are better off, and sometimes better paid, if they own or are majority partners in their own firm.  In the rest of the accounting world, the old boys’ network predominately reigns.”

One thing worth considering is the option for women to launch their own accounting and tax practices; in this, they enjoy more control over their environment, compensation and job satisfaction.  And it’s not as difficult as one might imagine.

Become a Professional Tax Preparer

Tax preparation is a viable and lucrative career path.  Universal’s tax training will help you acquire the expertise you need.   UA’s Professional Tax Preparer (PTP) program will also enable you to hone your skills and comply with the new IRS tax preparer regulations.  Not only could you earn a professional designation, but you could also learn everything you need to know to pass the IRS Competency Exam and receive up to 60 CPE credits, depending on the number of modules you complete.  The four models include the following:

1. Establishing the Tax Foundation. Learn the entire process for determining income and adjustments to income, which will factor into the Adjusted Gross Income.  In fact, you’ll cover all the information necessary to prepare Page One of Form 1040.

2. Becoming the 1040 Expert. This module deals with background information and forms that go into the 1040, Page 2.  We also discuss all the adjustments that can be made to gross income, including credits that are allowed and different types of deductions and exemptions that can be taken against that adjust gross income number.

3. Profitable Business Returns. Here we introduce you to the world of business organizations and their tax concerns.  This module is a practical companion to Module 2, as it give you experience in completing each of the schedules and forms common to business organizations.

4. Building Your Successful Tax Practice. Get a head start in creating and running your own tax preparation service.  You will find yourself light years ahead of the competition as you put these strategies into play.

UAC’s PTP income tax training will not only give you hands-on training in completing full individual (1040) and business returns (1065, 1120, 1120S), but it will also provide you with step-by-step instruction in becoming a sole practitioner, one year of follow-up support from expert tax preparers and our iron-clad, risk-free guarantee.  Consider launching a home-based tax business using Universal’s online tax courses.

Hone your skills, earn a designation, and comply with IRS regulations.  Three birds, one stone.  Call Universal Accounting at 1-877-833-7909 to enroll today.

We want to know what you think!  Please post feedback.

Resource

–.  “Women Report Growing Career Dismay.” 15 November 2011 CPATrendlines.com

IRS Commissioner Doug Shulman Speaks on IRS Requirements

On November 8^th, IRS Commissioner Doug Shulman spoke at the AICPA (the American Institute of Certified Public Accountants) fall meeting in Washington DC.  There he addressed some key issues that offer insight into the evolution and fine-tuning of the paid tax payer requirements.

First, Shulman revealed some interesting facts regarding paid tax preparers.  For example, 740,000 individuals have registered and secured their PTIN, or Preparer Tax Identification Number, in the past year, joining the IRS’s growing database. Those individuals are encouraged to renew their PTINs, an annual requirement the IRS will strictly enforce. 60% of those individuals with current PTINs are not attorneys, CPAs, or enrolled agents.

The next phase in this program includes the competency testing and continuing education requirements.  In addition, the IRS is also considering proposals that would require the performance of background checks.

Shulman also announced four key points:

1. The creation of a ‘supervised preparer’ category among paid tax preparers which will apply to CPAs, attorneys, and enrolled agents who must secure and renew a PTIN but are exempt from the competency tests and continuing education requirements.
2. A disclaimer statement to be used by Registered Tax Return Preparers which will clarify, in all promotional materials, “the IRS does not endorse any particular individual tax return preparer.”
3. A clarification on the level of review the IRS will conduct before approving continuing education providers.
4. A current hold on a previously announced requirement of background checks and fingerprinting.

Shulman also acknowledged plans to deal with tax preparers who have demonstrated significant noncompliance in the accuracy and integrity of submitted returns.

Finally, the commissioner talked about what he calls the “real-time tax system.”  He explains as follows:

“…let me cast an eye toward the future and a potential new structure that would fundamentally change the way taxpayers and tax practitioners prepare and file individual returns…and one that leverages technological innovations. We’ve initially come to call this vision the real-time tax system because it would deal in real time and avoid audits that may take place years after a return is filed. We’re moving away from the after-the-fact, or “look-back” model – where we chased after taxpayers who had to hunt for, or recreate records and documentation – to one where we’re reducing burden. Under the vision of a real time tax system, the IRS could embed third-party information into its pre-screening filters, and could provide the opportunity for taxpayers to fix the return before we accept it, if it contains data that does not match our records. This is a tectonic shift.”

Shulman anticipates that such a change would generate more accurate returns with fewer problems upon return acceptance and less time spent auditing.

The IRS is making some significant changes of which all financial professionals must be aware.   Visit the IRS.gov for more information.

Universal Accounting’s Tax Training

UA’s Professional Tax Preparer program will help you comply with the new tax preparer regulations established by the IRS.  Not only could you earn the Professional Tax Preparer Designation, but you could also learn everything you need to know to pass the IRS Competency Exam and receive up to 60 CPE credits, depending on the number of modules you complete.

Acquire the expertise necessary to become a Professional Tax Preparer.  UAC’s tax courses will not only give you hands-on training in completing full individual (1040) and business returns (1065, 1120, 1120S), but it will also provide you with the following:

• 20 hours of valuable video instruction
• 2 instructional manuals
• Step-by-step instruction in becoming a sole practitioner
• One year of follow-up support from expert tax preparers
• The opportunity to earn valuable professional certification
• Our iron-clad, risk-free guarantee

Be in compliance with the IRS’s strict new requirements regarding paid tax preparers.  We now offer online tax courses and tax training.  Call 1-877-833-7909 to enroll today, and improve your competitive advantage while securing your professional standing in the tax industry.

Resource

–.  “Prepared Remarks of IRS Commissioner Doug Shulman at the AICPA Fall Meeting in Washington, D.C. on November 8, 2011.”  8 November 2011  IRS.gov

A Christmas Gift: Tips for Clients on Managing Their Personal Finances

In a recent Entrepreneur.com article, J.D. Roth, a self-proclaimed accidental personal-finance expert, suggests five tips in securing personal financial security regardless of the flailing economy.

And Roth should know.  In 2005 he found himself overwhelmed by debt.  He made a personal decision to change that and read everything he could on money and financial management.  In 2006 he started the website Get Rich Slowly which quickly became a popular personal-finance blog.  He now gives advice to a community one-half million readers strong.

This information could be invaluable to your own clients.  Sure, you help them manage their business financials, but where they really might be struggling is in their personal financial management.  One way you could assist them is in distributing a tip sheet on effective personal money management; in fact, you could send it as part of your holiday well wishes for them and their families.  Consider including Roth’s proven strategies:

1. Stash savings. Many individuals have lost their jobs with no savings buffer to fall back on.  While many different sources recommend how much money you should save in a fallback account, Roth says the exact amount doesn’t matter.  It’s just important that you have enough to prevent unemployment panic.

2. Limit debt. Roth explains, “A mortgage isn’t a bad thing, and neither are student loans.  A car loan is borderline, though, and borrowing to buy a television is foolish.”

3. Practice thrift. Some of the richest people in America are thrifty, so it shouldn’t be considered a poor-man’s practice.  In fact, frugality is a good habit even in economically “fat” years when most individuals experience “lifestyle inflation.”  To embark on a frugal life, Roth recommends starting by reducing regular monthly expenses.

4. Invest wisely. Roth says, “Don’t let the news lead you to make emotional decisions.  …be sure your investment portfolio matches your risk tolerance.”  Do the research and stick with those financial investments that best suit your financial philosophy.

5. Ignore financial news. Roth uses the example of the housing bubble during which time many individuals followed the media hype and invested in real estate only to encounter its collapse, a reality that has left many in foreclosure.  As mentioned in tip number four, it’s important that you ponder your financial decisions and how they relate to your personal situation without giving in to the media hype, positive or negative.

If you’re interested in sharing other tips that will help your clients better manage their financials, consider the following two books which enable businesses to establish a healthy financial foundation:

In the Black—Written by Universal president and CEO, Allen Bostrom, this book will guide you in effectively increasing your clients’ profitability using improved accounting and business metrics – a must for organizations of all sizes.  Are you In the Black?

Red to Black in 30 Days—The recession is hitting small businesses hard, and many are failing right and left.  Red to Black in 30 Days, also written by Allen Bostrom, will teach you the Universal Project Management Model, enabling you to help save failing businesses.   Using this valuable book as your guide, you can add turnaround services to your offerings.   Buy your copy today.

Share your financial tips for clients here in our comments section!

Resources

GetRichSlowly.com

Roth, J.D. “How to Regain Control over Your Personal Finances.” 1 November 2011  Entrepreneur.com

Five Simple Marketing Strategies for Tax Professionals in the Digital Age

At a time when many consumers turn to the Internet to find products and services, it’s vital to have a presence on the Web. Otherwise, many potential customers may overlook you, simply because they can’t find you. Through the Internet, you can attract future clients in your area and communicate with your current clients. Here are five simple tactics to market your tax preparation service on the Web:

1) Create a functional website

According to the Yahoo Small Business survey, 70% of small businesses had a website by the end of 2004; we can only assume current numbers are even higher. Building a website is the first step in developing an online presence. There are books written on building websites and firms that can help you design and optimize your site.

Your site should reflect your practice. It should be clean, professional and informative; and make sure your contact information is apparent.

2) Register with online directories

If you go to the Google search engine and enter “Kaysville Utah Tax Preparation,” the first thing that appears in the results is the local business results for tax preparation near Kaysville,UT. This is Google’s online directory of businesses. Registration in this directory is free. Following the Google directory is a number of other online directories that list tax preparation firms. Conduct a similar search for your area and see which directories come up. Then go through the steps to register with these directories.

3) Create an email marketing campaign

An email marketing campaign will mainly target your current clients. This may be something you can implement in the future if you don’t have a list of your clients’ email addresses. Through an email campaign, you can inform your clients of special offers, promote your website or blog, and/or send a semiannual newsletter with tax tips and information. A newsletter is an excellent way to stay in touch with clients throughout the year and encourage them to come back the following tax season.

4) Build a purposeful blog

A web log, or blog for short, is one of the newest forms of communicating online. Blogs began as online journals where people could share their ideas, thoughts, stories, photos and videos. Only recently have corporations recognized the value of a blog to connect with their customers.

A major advantage to a blog is you can find free software and services that will host the blog. A CPA or tax preparer could use a blog to share insights and opinions on tax law or other tax related topics. I found one CPA’s blog where he shares jokes and comics about taxes and tax preparation. Though blogs are casual in feel, remember you are still representing your practice, so it should be done tastefully.

5) Use paid listings through search engines when cost effective

MSN, Google, Yahoo and other search engines offer paid listings as a form of advertising. Paid listings, also known as sponsored links, usually appear at the top and at the right of search results. Companies pay to have their links appear on the search results page in these areas. This type of Internet marketing can be effective, especially when you are first creating your online presence. I recommend you hire an Internet marketing firm to manage and track your paid listings account. Your ads should focus on the demographic in your area to avoid spending a lot of money on ineffective advertising.

If done correctly, online marketing is a fruitful strategy to increase your client base and well worth the time and money spent.

Visit http://www.1040works.com/ for more marketing tips and tax law information.

We welcome your feedback in our comments section.