If you’re a self-employed tax preparer, you’ll encounter many situations where you must negotiate a favorable outcome for your small business. These may be large or small deals and could occur with clients, colleagues and other businesses. In order to be a successful negotiator you must know how to achieve a win-win situation. Selling yourself short or taking too much from the negotiating party can be damaging long-term. Here are a few things to remember the next time you find yourself planning a negotiation:
1. Know what you want. First you must know what you want. Many negotiations fail because one or both parties did not determine beforehand what their objectives where. It’s difficult to hit the mark when you’re not even sure what your own target is. Don’t be too vague (“a favorable outcome”) and don’t be too rigid (“X amount or nothing”). Negotiation is all about modifying terms so that both parties can feel satisfied with the deal.
2. Come to the negotiation with different options. Negotiation requires flexibility. Come to the negotiation with different options in order to illustrate your willingness to achieve a favorable outcome for both of you. Perhaps you’ll be asked to lower your fee in order to get a larger company as a client. Don’t lock yourself into a situation where you’re not getting paid what you’re worth, but recognize that you can agree to a lower fee in the beginning which can be increased at a predetermined time.
3. Leave room to bargain. Be sure that you’ve determined a bottom line, or what you must see happen in order to accomplish your purposes, and then aim high. Seasoned negotiators recognize that they must aim high in order to get what they want. Determine your bottom line and pad it. If your initial offer is your bottom line you’ve left no bargaining room. Ask for more than what you expect to get and realize that the party you’re negotiating with is doing the same thing. But there’s a fine line between insulting the party by asking too much and low-balling yourself by asking too little.
4. Get to know the party you’re negotiating with. It’s important to not only know what you want but why you want it. You’ll probably be asked to express your objectives and why they are important to you. It’s equally important that you get the same information from the negotiating party. You should know them and understand their motives and objectives. When you know these things, you’ll be able to work a deal that’s favorable for them while being profitable for you.
5. Be patient. Good negotiations can require a series of meetings, phone calls, and email exchanges, so don’t feel pressured to reach an agreement after just one appointment. And sometimes it’s necessary to take a break and evaluate what has already been presented. Don’t feel pressured to end a negotiation too soon; often that means you’re getting the short end of the stick. Holding firm and allowing the negotiation to carry out a bit will demonstrate just how serious you are.
Negotiations are sometimes a frightening but necessary part of business. Don’t let the fear paralyze you. As long as you take these steps and follow your instincts, you’ll find yourself securing more and more favorable negotiations. Practice makes perfect and you have to start somewhere. Happy Negotiating!
Universal’s IRS-Approved Tax Training Will Help Meet IRS Regulations
Universal Accounting recently announced its approval as an IRS Continuing Education Provider, enabling individuals desiring to become Registered Tax Return Preparers to fulfill their CE requirements through Universal’s self-study and online tax courses.
The IRS oversees the approval of all CE providers. Because Universal’s tax training was already recognized as a sponsor of Quality Assurance Service (QAS) self-study courses, after meeting the National Association of State Boards of Accountancy’s (NASBA) rigorous standards, the Professional Tax Preparer program was easily adopted by the IRS. Universal is happy to join the ranks of IRS-approved Continuing Education Providers and is confident that their tax training will enable countless graduates to advance their careers in the finance industry.
If you would like to learn how the Professional Tax Program can enhance your career, call Universal Accounting at 1-877-833-7909.
Income tax preparation is a dynamic and fast-moving field. Each year, the IRS makes a number of adjustments to the tax code, including significant alterations tax professionals must be aware of. It can be difficult to stay current with those changes which impact tax preparers and their clientele.
Universal Accounting’s tax course, the Professional Tax Preparer (PTP) Program, consists of four volumes that cover over 95% of the tax issues a preparer will likely encounter when completing returns. While this course does help students master the tax code, eventually some of the information becomes outdated. Purchasing a new version of the course each year would be too expensive for most students. But the alternative—having a set of manuals that are a year behind—is equally unthinkable.
Universal Accounting has created a reasonable solution. We provide our students with a concise volume of tax updates to supplement the course many purchased in 2011. This year’s edition, 2012 Changes to the Federal Tax Code, will bring the 2011 Professional Tax Preparer Program current, as far as Form 1040 is concerned (corresponding with Modules I and II of the course).
We have made this volume available online or via PDF, which students can print off and keep as a hardcopy reference. The changes are broken down by module, chapter, and part so that it aligns with the PTP course outline. Here we also summarize the new rules that will affect student learning and, more importantly, federal income tax preparation activities in the coming year. If chapters or parts from the student version of the course do not appear in this volume, it is because no meaningful changes were made to those sections for the 2011 tax year.
It is important to note that Universal Accounting refers to the versions of its tax publications, including this one, by the year in which they are published, as do most other reputable publishers. But because the IRS only updates the tax code at the end of the year for which the changes apply, it refers to those changes by their tax year, which is therefore a year behind the calendar. Thus, the 2012 Changes to the Federal Tax Code is written in reference to TY2011, the most current year for which tax laws exist.
Universal invites its students to refer to this new resource as they complete their training and/or prepare tax forms for their clients.
If you are interested in enrolling in the Professional Tax Preparer Program, please call Universal at 1-877-833-7909 for more information.
In a recent Entrepreneur.com article, author Michelle V. Rafter shares “10 Workplace Trends to Watch in 2012.” Whether you work fulltime for an employer, part-time for yourself or overtime in your own practice, it’s important that you be familiar with evolving workplace practices, because only then can you take advantage of those that will best benefit your career.
In this article we share 5 of Rafter’s 10 trends—those which we feel are most applicable to the finance industry:
1. Mobile Devices. Just about everyone has a smartphone these days. In fact, you’d be hard-pressed to find a selection of traditional cellphones in any provider showroom. And while many employers may worry about confidentiality and employee time wasted on Facebook, mobile devices like iPhones, iPads and other portable electronics are quickly becoming mainstream in just about every profession.
2. Telecommuting. A decade ago, you’d find most employers weary of allowing their workers to telecommute. But what many of them have since discovered is that, when managed properly, allowing employees to telecommute often saves them money in office expenses while, in many cases, increasing productivity.
3. Instant communication. Gone are the days when email was the fastest way to communicate. Regardless of what you do, your clients, colleagues, coworkers and bosses are generally coming to expect to hear back from you more quickly than they have in the past. This may require you to take advantage of social networks and texting as a quicker means of engaging with business associates.
4. Web-based software. Web-based software enables individuals to work collaboratively on day-to-day operations. And if you manage your own practice, taking advantage of online financial management software tools, like those offered via Intuit’s QuickBooks, will enable you to always have access to the current data.
5. Independent contractors. Rafter explains, “It’s the age of the free agent, and not just in sports. Many people are working as independent contractors, not because they can’t find permanent fulltime corporate positions but because they want to.” This means many businesses are more open to outsourcing things like their accounting and tax planning and preparation. If you’ve considered becoming an independent contractor yourself, now is the perfect time.
The professional workplace is evolving, and many of the current trends will prove to be beneficial to your career, as long as you are aware of what they are.
Start Your Own Bookkeeping Service
Are you interested in quitting your day job to become an independent contractor offering bookkeeping services? Designed to train individuals in small-business accounting, the Professional Bookkeeper Program enables students to gain the expertise necessary to launch their own accounting practice. Here are what a couple graduates have to say about the program:
I can honestly say that the hands-on training from Universal Accounting Center was far more helpful than that of my degree program. The training I received in you class was superb, exactly what I needed for the type of accounting business I was trying to start. I have been so pleased with the training I received from you, that my two part-time employees are currently taking your course. – S.A. Ivins
As an average for each client I am making about $30 – $50 an hour, I’ve been able to quit my full-time job. Thanks again to everyone at Universal Accounting Center! It has created for me a brighter outlook financially, as well as more free time in my personal life. And, I didn’t have to go to college for years and pay thousands of dollars for an education. — S. Thomas
In four weeks, your course taught me everything, and I mean everything, I would need to know about starting my home bookkeeping business. I am making more money than I did when I was employed full-time and I arrange my schedule to fit my needs, not arrange my life to fit my job’s. I can honestly say, this was the best investment I have ever made in my life! – S. Myers
For 30 years Universal Accounting Center has been demonstrating just how easy it can be to launch your own bookkeeping serivces as long as you have the knowledge and skills necessary. Let us share them with you. They can make a difference in your life and the life of your family.
There’s no time like the present to change your future and achieve greater professional satisfaction. Enjoy the freedom of self-employment, including the ability to achieve an increased salary, an improved lifestyle and the chance to do what you’ve always dreamed. Call Universal at 1-877-833-7909 to enroll in the Professional Bookkeeper program now!
Resource
Rafter, Michelle V. “10 Workplace Trends to Watch in 2012.” 4 February 2012 Entrepreneur.com
Businessweek.com author Karen Klein reported that startup rates increased nearly 60% in 2011, according to a survey performed by Global Entrepreneurship Monitor. She explained, “More than 12 percent of US adults reported starting a business or running a new business last year.” This is a 50% increase in entrepreneurial activity from what was seen in 2010, demonstrating that the recession has not prevented individuals from launching their own businesses.
Some entrepreneurs may be scared off by the recession, but reports like these demonstrate that startups can succeed even in the worst economic markets. In fact, for those interested in starting a financial practice, there’s no time like the present; the recession may be the best time to get your accounting and tax practice up and running.
While there are many benefits to launching your startup now, here are just five for you to consider:
1. Tax benefits. You’ll enjoy the tax benefits associated with owning and operating your own business. Some of your expenses will be recouped, and if you participate in year-round tax planning, you can increase those benefits.
2. Supplies come cheap. If there’s one thing about a recessive market, it’s decreased costs. Whether you’re looking for office supplies, office furniture, or computer equipment, you can find good deals if you just look long enough. Also, you can get much of what you need through auctions for failing businesses.
3. Good marketing angle. People respect individuals who buck tradition and go against the grain. Entrepreneur.com author Brad Sugars said, “The media loves aberrations… That means you can generate some great PR by demonstrating your ‘alternative’ view of the market.” Starting a business during a recession is an act of confidence which can inspire confidence in prospective clients as well. You can use this angle to market your services, indicating that you are so confident in the value of your services even a recession won’t deter you.
4. Hiring pool is saturated. If you would like to start your business with a support staff, now is a good time to hire. The pool of potential applicants is saturated with talented and skilled individuals who would be grateful for a steady job.
5. Your full-time job may be in jeopardy. While unemployment rates are currently on the decline, the recession is still in full force indicating that those rates are unlikely to stabilize anytime soon. If you currently work full-time, you may be worried that your job is at risk. One way to prepare for job loss is to start a home business.
You can take advantage of the recession by starting your own accounting and tax practice. With a little incentive, training, and drive, you can weather the economic storm as an entrepreneur, changing the forecast of your future.
Start Small by Mastering QuickBooks
More than 80% of small businesses use QuickBooks to manage their accounting. Becoming a QuickBooks Specialist would provide you with numerous ways to bring in more business, increase your income, and make your job easier. You can start small by offering QuickBooks set-up and consultation services for $65-$95 per hour. You’ll find companies who want to do their accounting tasks themselves, but need help configuring QuickBooks to meet their needs. With QuickBooks expertise, YOU can provide that help.
Universal Accounting Center’s self-paced program enables you to complete the parts that interest you and skip over the parts that don’t. Even if you have used the software for years, this program teaches you shortcuts and methods you may not have previously known. You will be impressed by the simple flow and completeness of UAC’s Professional Bookkeeper’s Guide (PBG) to QuickBooks. For a small price you can purchase the QuickBooks software and the PBG, enabling you to become a QuickBooks Specialist. Take advantage of the recession and prepare to become a financial professional. Call Universal at 1-877-833-7909 to enroll in the PBG Program today!
Resources
Klein, Karen E. “Startup Rates Surge in the US and Abroad.” 19 January 2012 Businessweek.ccom
Sugars, Brad. “Top 10 Reasons to Start a Business in a Recession.” 25 February 2009 Entrepreneur.com
In a recent newsletter intended for small businesses, the IRS shared key points informing taxpayers of specific credits and news releases that apply to the self-employed. Consider whether or not any of the following might impact you and/or any of your small-business clients:
Work Opportunity Credit
The work opportunity credit has been expanded in order to encourage employers to hire certain unemployed veterans. On November 21, 2011, President Obama signed the VOW to Hire Heroes Act of 2011, providing businesses and tax-exempt organizations with an expanded work opportunity tax credit when they hire unemployed veterans (after 11/21/2011 and before 1/1/2013). For more information, visit www.IRS.gov/form8850.
Federal Unemployment Tax Credit Reduction
Employers in the 21 credit-reduction states are required to adjust the FUTA tax on their 2011 Form 940. The adjustment must comply with the table indicating the reduction rates as dictated by the Department of Labor and found on Schedule A (Form 940–which must be attached to Form 940). For more information, refer to Instructions for Form 940 on the IRS website. According to the press release, “if employers pay wages that are subject to the unemployment tax laws of a credit reduction state, the employers must pay additional FUTA tax. Employers must include liabilities owed for credit reduction in calculating their fourth quarter deposit.”
The SSA/IRS Winter 2011 Report
The SSA/IRS Reporter is a quarterly online publication for employers and other organizations that deal with payroll and employee issues. New editions are posted in March, June, September and December. To access the December issue, visit the IRS website.
Offer in Compromise
The IRS has recently redesigned their website providing OIC guidance. An offer in compromise allows individuals and businesses to settle a tax debt for less than the amount owed. This site enables visitors to determine whether or not they are eligible and how to submit their OIC. The newly designed website and an instructional video are now available.
Revisions to FBAR and Form 8300 Explained
Businesses that have already filed certain Bank Secrecy Act paper forms but need to correct an error can follow a simpler process, as outlined by the IRS.
To correct the error, file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, or TD F 90-22.1, Report of Foreign Bank and Financial Accounts. The IRS gives detailed instructions on their website.
Secure More Clients with the Universal Practice Builder Program
It can be difficult to keep up with changing tax laws and procedures while also marketing your business. If you’re looking for help promoting your practice more effectively in order to increase revenue, consider the Universal Practice Builder (UPB) Program. Also called Marketing on Steroids, this course was designed by our own growth specialists who know not only how to market your specialized financial services, but how to market them effectively to qualified, prospective clients.
The UPB program provides the following:
Flexibility. You complete the course on your own time and at your own pace. And the engaging DVDs enable you to review key concepts and instruction as necessary.
Complete education. This comprehensive training program will give you everything you need to build a thriving practice.
A qualified professional to answer questions. For six months you will have access to our professional coaches for personal, professional guidance via phone or email.
The Universal Practice Builder Program will equip you with all the tools you need to grow your business. If you struggle to market your practice, call Universal at 1-877-833-7909 to register for this phenomenal program now!!
Over the last several years, the IRS has been updating their back-end systems and processes in an effort to move to a more efficient and modernized platform. As we all know, to get from point A to B can often take a lot of time and effort.
The IRS has used the ‘Legacy’ platform since 1985 to e-file individual returns. In 2004 they introduced ‘CADE’ (Customer Account Data Engine) to process 1040EZ returns, with other forms and schedules added in a three-phase process. The MeF (Modernized eFile) model was implemented in 2007 for business returns. In 2010 individual returns were included, but on a limited forms and schedules basis. In 2012 the IRS plans to adopt all individual forms and schedules to the MeF platform, however, this could be delayed.
So, what are the differences between these e-file platforms?
The Legacy platform has been used to process individual federal and state returns for years, and allows the majority of the individual forms and schedules to be e-filed. Legacy has set drain times, and refunds are released on a weekly basis, taking 8-15 days.
CADE is a database that processes a limited number of individual federal forms and schedules. Returns processed through CADE have a refund cycle of five business days, compared to the Legacy weekly cycle which takes 8-15 days. Returns processed through CADE are selected on the IRS side. As a preparer, no information is passed back to you regarding the returns filed through this system.
The MeF platform has been used to process business returns since 2007. In 2010 individual returns were added. The MeF platform handles a limited number of individual federal forms and schedules. Drain cycles are omitted in the MeF platform, returning near-real-time acknowledgements. Like the Legacy platform, individual refunds are released on a weekly basis taking 8-15 days, unless selected to flow through CADE which could be received in five business days. MeF also allows e-filing for two prior years, supporting a total of three tax seasons.
What does the future hold?
Moving forward, the IRS and states will move individual returns to the MeF platform, and the Legacy platform will be retired. The CADE system will allow IRS Customer Service representatives access to accurate and up-to-date information. The CADE database will enhance the use of both e-file and paper return data across the IRS, improving services and reducing costs.
1040Works professional tax software has the ability to e-file on all platforms. Get a free trial of 1040Works by visiting http://www.1040works.com/free_demo.aspx.
We welcome your feedback in our comments section.
Small Business Week may have ended on May 20th, but in celebration, the IRS gave a gift that keeps on giving: free resources and information. Faris Fink, IRS Commissioner for the Small Business and Self-Employed Division explained, “When you’re running a business, you don’t need to be a tax expert, too. But you do need some basics to stay tax compliant so your business can thrive. There are many tax credits and deductions currently available. So now is a good time to learn about the tools and services the IRS offers.”
The IRS reminded small business owners and their tax preparers of the Small Business Tax Center. The center provides links to useful IRS tools like their Video Portal which archives copies of all webinars intended for small business and tax professionals (the one that ran last week entitled “Small Business Advantage” will be posted two weeks after it originally aired). There you can also find a downloadable tax calendar, common forms, instructions on securing an Employer Identification Number (EIN), information on starting, operating, or closing a business, and more.
The IRS also used the opportunity to remind business owners about important tax credits they can claim, including the small business healthcare credit which encourages small businesses and tax-exempt organizations to offer their employees affordable health care. Tax relief can also be found in Depreciation and Amortization: Form 4562, through which small businesses can deduct most of their costly purchases in new property and equipment. Small business owners can take advantage of these benefits when filing their 2011 returns.
Universal Accounting is Also a Valuable Resource
Now that tax season has ended, you might have some extra time to invest in yourself and your tax practice. UA’s Professional Tax Preparer (PTP) program will 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 program 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.
Hone your skills, earn a designation, and comply with IRS regulations. Three birds, one stone. Call Universal Accounting at 1-877-833-7909 begin_of_the_skype_highlighting 1-877-833-7909 end_of_the_skype_highlighting to enroll today.
We welcome your feedback and comments. Please post!
Resources
–. “IRS Marks Small Business Week by Showcasing Tools, Resources; Spotlights Tax Benefits Available in 2011.” IRS.gov
IRS Small Business Tax Center– http://www.irs.gov/businesses/small/index.html
IRS Video Portal—http://www.irsvideos.gov/SmallBusinessTaxpayer
Work with the IRS
If you’re a tax preparer, you might consider working with the IRS to enhance your credentials while participating in valuable community service. On May 2nd the IRS requested the submission of applications for the Internal Revenue Service Advisory (IRSAC), an organization that enables IRS officials and representatives to discuss significant tax issues as they relate to the federal tax administration.
Comprised of up to 35 individuals, members of the Internal Revenue Service Advisory fulfill a three-year appointment. Each fall the IRSAC submits an annual report to the commissioner at a public meeting.
IRS Commissioner Doug Shulman says, “The feedback and recommendations from IRSAC members have and will continue to assist the IRS with a wide range of strategic initiatives.”
Applications are being accepted for approximately 12 positions that begin in January of 2012; to be considered, submit your application before June 17th.
Individuals and organizations can nominate qualified professionals for the IRSAC which is comprised of people with diverse backgrounds and professional expertise. Professionals with tax experience are encouraged to apply, including tax attorneys, certified public accountants, enrolled agents, appraisers, and the business community.
In addition to IRSAC applicants, the Treasury Department and the IRS are also seeking public comment “on issues relating to the shared responsibility provisions included in the Affordable Care Act that will apply to certain employers starting in 2014.”
The Affordable Care Act requires employers to report the cost of insurance coverage they provide their employees; the information is to be noted on each employee’s annual W-2 Form and will apply to various employers beginning in 2014. This act may also require employers with 50 or more full-time employees that do not offer affordable health coverage to submit a shared responsibility payment.
The IRS is currently requesting feedback on several issues related to this act, specifically regarding how employers can comply with the shared responsibility provisions and determine which employees qualify as full-time.
Visit the IRS website for more information on submitting comments and applications.
Universal’s Tax Training Will Prepare You for the 2011 Tax Year
Tax professionals charge 100 + an hour providing planning and preparation services to clients. In the course of one tax season, many tax preparers earn what others take an entire year to bring in. Universal’s Professional Tax Preparer (PTP) Program will enable you to help your clients save enough money in taxes to more than cover your fees. And what you earn in one tax season will more than cover the registration fee for this course.
Become a Professional Tax Preparer (PTP) before next tax season. Universal’s PTP program will not only give you hands-on training in completing full individual (1040) and business returns, but it will also enable you to be in compliance with new IRS regulations. Celebrate the end of tax season by investing in training that will enable you to increase your knowledge and skills. Call 1-877-833-7909 begin_of_the_skype_highlighting 1-877-833-7909 end_of_the_skype_highlighting and enroll in the Professional Tax Preparer program now!
Resources
–. “IRS Seeks Applications for the Internal Revenue Service Advisory.” 2 May 2011 IRS.gov
–. “Treasury, IRS Seek Public Input on Certain Employer Provisions of the Affordable Care Act.” 3 May 2011 IRS.gov
In a public webcast streamed in late March, the IRS announced that the continuing education requirements for registered tax preparers who are not CPAs, EAs or attorneys will begin in 2012. In addition, those with temporary PTINs must be fingerprinted and submit to background checks; they also must pass the competency exam by December 31, 2013.
The IRS expects to have the competency exam available in late summer or early fall of this year. There will only be one exam that will cover a number of different tax topics. While a vendor has not yet been selected, the IRS does hope to do so within the next few weeks, after which they will announce exam locations. Testing centers will be available at various locations around the US and in some foreign countries where individuals can complete the online exam. Those who do not prepare Form 1040 are exempt from this testing requirement.
The test is ‘closed book,’ meaning that outside materials will not be allowed during the examination. However, the webcast implied that reference materials would be provided for those interested in preparing for the exam. The test will cover basic competency for individual returns, specifically how one determines various outcomes, calculations, etc. The IRS will soon release an exam outline which will detail tested content.
While the IRS is not providing a sample test or a preparatory course, they did recommend enlisting the help of agencies like Universal Accounting (UA) and the National Association of Tax Professionals (NATP) in adequately preparing for their competency exam.
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 Professional Tax Preparer (PTP) program 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:
- 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 prepared for the changes that will impact all future tax preparers. Call 1-877-833-7909g begin_of_the_skype_highlighting 1-877-833-7909g end_of_the_skype_highlighting to enroll today, and improve your competitive advantage while securing your professional standing in the tax industry.
Letters Notify Tax Preparers of Incorrect Returns
The IRS is sending out letters (approximately 10,000) to tax preparers as a reminder of the importance in submitting accurate returns for their clients. The letters are being sent to preparers who completed returns with common errors; also included is an enclosure reminding tax preparers of their responsibilities as well as the penalties for filling incorrect forms.
The IRS also plans on sending representatives to visit approximately 2,500 recipients of this letter to “further discuss their responsibilities as a return preparer and to verify their compliance with existing requirements.” These measures follow recommendations made by IRS Commissioner Doug Shulman in January after a comprehensive six-month study of the tax return preparer industry.
The IRS notes that while they recognize the majority of preparers are honest professionals, some make careless errors while others engage in illegal and fraudulent activities. This letter and the scheduled visits are intended to monitor such activity. This IRS and the Department of Justice continue to pursue civil or criminal action as appropriate.
Taxpayers should exercise discretion when choosing a preparer. Expect reputable preparers to request their receipts and ask numerous questions in order to determine which expenses qualify as deductions or warrant favorable tax treatment. Such preparers are helping their clients avoid penalties, interest or additional taxes that could result in further IRS scrutiny.
For more information, visit http://www.irs.gov/newsroom/article/0,,id=231944,00.html.
Interest Rates for 2011 First Quarter Decrease
On December 15th the IRS announced that interest rates for the calendar quarter beginning the first day of 2011 will decrease by one percentage point. According to a recent press release, the rates will be as follows:
- three (3) percent for overpayments [two (2) percent in the case of a corporation];
- three (3) percent for underpayments;
- five (5) percent for large corporate underpayments; and
- zero and one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.
For more information on the calculation of these rates, visit http://www.irs.gov/newsroom/article/0,,id=232163,00.html.
Reminder of New Registration Requirement for All Return Preparers
According to new IRS regulations, all paid tax preparers are required to obtain a Preparer Identification Number (PTIN) by the end of December, 2010. If you do not currently have a PTIN, or if you obtained one prior to September 28, 2010, you can use their new online application system to obtain one. All paid tax preparers who prepare all or substantially all of a tax return are required to use the new registration system. It costs $64.25 to secure or renew a PTIN which you can receive immediately after completing your online application. Or you can submit Form W-12 in order to mail the request, which will take 4 to 6 weeks.
For more information on the new requirements for paid tax preparers, visit Universal at http://www.hometaxbusiness.com/new-irs-tax-regulations.html.
Universal Accounting’s Tax Training
If you would like to become eligible to prepare taxes under the new regulations established by the IRS, consider training with Universal Accounting. 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.
Be prepared for the changes that will impact all future tax preparers. Enroll in the Professional Tax Preparer Program today, and improve your competitive advantage while securing your professional standing in the tax industry.
If you’re a self-employed tax preparer, you’ll encounter many situations where you must negotiate a favorable outcome for your small business. These may be large or small deals and could occur with clients, colleagues and other businesses. In order to be a successful negotiator you must know how to achieve a win-win situation. Selling yourself short or taking too much from the negotiating party can be damaging long-term. Here are a few things to remember the next time you find yourself planning a negotiation:
