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Universal Accounting is a company that is making a difference in the lives of their students! For those who are pursuing or looking into the possibilities of pursuing a career path into the Accounting, Bookkeeping and Tax Preparation services, you need to get to know more about what all Universal offers in their comprehensive training programs.

If you prefer onsite classroom study or looking for the benefits received on independent study, we have developed the programs that you will be able to get the one-on-one experience in your own home. The skills we have used over the course of the last 28 years, with the trial and error, the fine-tuning of accounting methods and strategies, and what we and thousands more have experienced running their own practices – we have provided to you the advantage to stay on top of your profession. Our coursework is designed to be exactly what you will be doing when you are servicing the biggest customer base available, the small business owner.

If you are looking for the knowledge, the skills, and the know-how to start or build your accounting or tax practice, or just looking to gain the essential skills to further your career in your place of business, Universal’s Programs are what you are going to need.

Click here to take the Video Tour of Universal and all that we offer to you, the accounting and tax professional to be the best in your field and to have the success in business and in your professional life that you are seeking.Our exclusive short term courses do just that!

Imagine staying on top of the latest in the industry and having access to the experts who can assist you through training? Imagine what you are learning can be applied the very next day at work? Imagine being able to keep the materials, and the reading for continued referencing as you take that path in Accounting, Bookkeeping and Tax Preparation? You don’t have to imagine too hard, because that is one of the many things you receive when you enroll in these specialized programs! Click here to get to know Universal Accounting.

Are You Ready For The Next Step?
Be in business for yourself, but not by yourself getting paid what you’re worth! Are you tired of thinking, “Why not me?” You have gotten this far in your search to do what you want to in your chosen career, take the next step. The time is now to be able to get the training and the change you desire in your professional life. Click here to find out if Professional Tax Preparation Certification is a fit for you.

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Business Owners and Non-Profit Organizations:

The IRS Announces a Formula for Calculating Telephone Excise Tax Refunds

In May of 2006 the Treasure Department announced that beginning April 1 the government would no longer collect federal excise tax on long-distance telephone service. They also announced that taxpayers could request refunds for telephone excise tax collected after February 28, 2003 . To avoid the troublesome task of calculating 41 month’s worth of long-distance telephone taxes, the IRS recently released a formula intended to help individuals, business owners, and non-profit organizations to calculate their refunds.

“Businesses and tax-exempt organizations generally have more varied phone usage patterns than individuals,” IRS Commissioner Mark W. Everson said. “The IRS has met with a number of businesses and tax-exempt organizations to understand their concerns. We believe we have developed a reasonable method for estimating telephone excise tax refund amounts while reducing burden.”

To request a refund, business owners and non-profit organizations should complete Form 8913, Credit for Telephone Excise Tax Paid and attach it to their regular return. In order to calculate their refund, they must use the new IRS formula. First compare two telephone service statements: April, 2006 and September, 2006. Calculate the tax percentage of each bill (April contains a tax on local and long-distance service while September only includes a tax on local telephone service). The difference between these two percentages must then be applied to the quarterly or annual phone charges to determine their refund.

The IRS also provides an example. If a small business had an April, 2006 phone bill of $1000 with $28 in federal excise tax, the percentage would be 2.8 percent. If their September 2006 phone bill was $1100 with $16.50 in federal excise tax the tax percentage would be 1.5. The business would subtract 1.5 from 2.8 in order to get a final tax percentage of 1.3. The business would then multiply 1.3 by their total phone expenses over the 41-month period in order to calculate their final return.

Large businesses of 250 or more employees are restricted to a 1% cap while small businesses and non-profit organizations are restricted to a 2% cap on what they can claim. In the example above, a small business could claim 1.3%, because it doesn’t go over their 2% cap, while a large business could only claim 1% of the 1.3 percentage.

The IRS has also included a standard refund amount for individuals: $30 for one exemption, $40 for two exemptions, $50 for three exemptions, and $60 for four or more exemptions.

The IRS devised the formula after discussing the issue with the business community, specifically the Small Business Administration and representatives from the tax-exempt community. They hope the formula provides a less burdensome approach to calculating the telephone excise tax refund.

You can find more information on the federal telephone excise tax refund in your 2006 tax return materials, or visit IRS.gov.

Universal Accounting is continuously looking to bring to you the latest in the industry. You are only as good as the training you complete! Take the opportunity, if you haven’t already and get more familiar with what’s all involved in the Module coursework. Click Here to find out more.

Because you’re a tax professional, you already appreciate the fact that every working (and some instances, nonworking) citizen is required to pay taxes. You appreciate it because it keeps you in business and provides you with the money from which you get to pay your own fair share. And as a tax professional you’ve probably heard every tax joke in the book. You’ve also probably listened to countless individuals complain about the IRS and all that IT requires from them and their paychecks. So what do you say when you’re at that barbeque in early April and guests begin taking their pot shots at the good ole U.S. of A. and its money-grubbing tax system? While we don’t suggest you try to take a stand against an angry mob, we do want to remind you of all the reasons why, like fiber and vitamins, paying taxes is good for you. And when you get the chance, or feel so inclined, you can share one or two of them with other taxpayers.

Taxes provide the following:

Safety

If you’ve ever had a police officer come to your aide, you appreciate local law enforcement. Or perhaps you’ve heard of all the good they do, putting their lives at risk in order to protect citizens. From the local police force to those who fight terrorism, our tax dollars enable us to enjoy the protection, locally and globally, of these valuable services.

Education

Whether you feel too much or too little of our taxes goes towards public education, the truth is that many of us and our children have benefited or continue to benefit from government-sponsored schooling. And when you break it down you realize that education contributes to a reduction in poverty which results in a reduction of crime.

Public streets

Every summer I’d guess that we all complain about road construction. But imagine if each of us was responsible for paving our own streets and any of those roads we frequent. Not only would there be greater inconsistencies in the quality of these roads, but many of them may not even exist to help us travel where we desire. And all these public streets are paid for with our tax dollars.

Revenue from government contracts

The government may taketh away, but it also giveth, and quite frequently. The revenue made from government contracts, which is quite significant, strengthens our economy.

Legal support for small businesses

And last, but certainly not least, is how taxes support small businesses. The framework of our government enables small businesses to enjoy a level playing field. It also supports small business loans and many of the training programs that create qualified workers who help small businesses succeed.

We couldn’t possibly cover everything our taxes pay for in this short article, but when it comes right down to it, you and I and all those who might complain about taxes, are paying for goods and services from which we benefit. Unless the government is magic, with a few billion dollars up its sleeve, there would be no way to pay for these services unless the citizens who enjoy them split the bill. While you may not agree with where your taxes go, this great nation you sponsor gives you the right to voice your disapproval. This great nation you sponsor also allows you to participate in the political system that decides where tax payer money goes. So instead of complaining about all the taxes we pay, we should consider whether or not they pay for what we think is important and then insert ourselves into the political process in order to make a change, the good ole American way.

The Latest Tax News

Keep Yourself Primed with the Information that Will Make a Difference

Here’s our latest installment of news for the tax preparer. Keep yourself in the know so you can best serve those who you have been providing this invaluable service. You as a Professional Tax Preparer must always be on your toes to stay up-to-date. Universal Accounting strives to give you the sources you need to be as best prepared as possible.

Income Tax Rates Adjusted to Inflation
The income tax rates for 2006 remained unchanged , along with 2005. However the IRS has announced it has adjusted income tax brackets for inflation.

The IRS publishes the next year’s tax rates each year in the last fall. So 2007 tax brackets, as well as amounts for standard deductions, personal exemptions and other tax areas, are already published. You’ll find more about this by clicking here.

Standard Deductions
Standard deductions were also adjusted for inflation, the basic deduction all tax payers receive. Remember when you total all the deductions that are being taken and they are less than the standard deduction, by all means advise to do the Standard Deduction.

Here are the standard deductions for 2006 and 2007.

• • • If you’re 65 or blind: An additional $1,000 standard deduction may be claimed by a married taxpayer who is at least 65 years old or blind. If the taxpayer is single, the additional standard deduction amount is $1,250.
    • If you’re 65 AND blind: A married taxpayer can claim a second $1,000 standard deduction — for a total of $2,000. If the taxpayer is single, he can claim a second $1,250 standard deduction — for a total of $2,500.

There are several helps for keeping current found on the Internal Revenue Service web site. Search them out and get those pages bookmarked on your web browser for easy access and referencing. Staying on top of your game is a constant battle and you ahve to dedicate yourself to being the best for your customers.

Need help becoming a “prime and fit” Tax Preparing Professional? Are you ready to take that next step? Are you tired of thinking, “Why not me?” You have gotten this far in your search to do what you want to in your chosen career, take the next step. The time is now to be able to get the training and the change you desire in your professional life. Click here to find out if Professional Tax Preparation Certification is a fit for you.

The Latest Tax News

We hope you’re enjoying this holiday season. As the year winds down, we thought you’d appreciate a briefing on four noteworthy tax events.

IRS Headquarters Reopens
After a six-month closure due to flooding, IRS headquarters reopened roughly one week ago. As of December 11^th, submissions should no longer be sent to the temporary address and now follow standard procedures. Taxpayers have also been reminded to fax a copy of their requests to the headquarters’ (202) 622-7707 number; the temporary fax and telephone numbers should no longer be used.

No Change in Interest Rates
On December 12^th the IRS announced that there will be no change in interest rates for the first quarter of 2007. Current interest rates are as follows:

• 8% for overpayments [7% in the case of a corporation]

• 8% for underpayments

• 10% for large corporate underpayments

• 5.5% for the portion of a corporate overpayment exceeding $10,000

As a matter of code, interest rates are determined on a quarterly basis. Interest rates for overpayment and underpayment is determined by the federal short-term rate plus 3% for taxpayers other than corporations. For corporations, underpayment is the federal short-term rate plus 3%; overpayment is the federal short-term rate plus 2%.

Tax Law Changes and How They Affect Charitable Contributions
Last summer the Pension Protection Act made several changes to tax law, many of which you should be aware of when giving charitable contributions this year-end:

• IRA pension owners, 70 ½ and over, can transfer up to $100,000, tax-free, to eligible charities.

• Clothing and household items donated after August 17^th, 2006 must be in good condition to qualify.

• Taxpayers can claim any item more than $500 regardless of condition, as long as it’s accompanied by an appraisal.

• Monetary contributions more than $250 must come with a receipt from the charity and a bank record

• Donations can be made by cash, check, electronic transfer, credit card, or payroll deduction (must accompany a copy of the pay stub, W-2 statement, or other employer document)

For more information, visit the IRS website.

Hybrid Cars and Alternative Motor Vehicles Will Get You a Tax Credit
The clean-burning deduction has been replaced with a tax credit by the Energy Policy Act of 2005. Taxpayers who purchased hybrid and alternative motor vehicles after January 1, 2006 can claim an additional tax credit and either lower the federal tax due, or eliminate their federal obligation altogether. The credit is only available to actual purchasers of qualifying vehicles; leasing companies claim the credit for qualifying vehicles leased to customers.

For more information, visit the IRS website.

Keeping you informed on what is most important is always the goal of Universal Accounting. Click Here to get to Universal’s Forum and chat with others what’s facing the tax preparation professional.

The Latest Tax News…

We hope everything went well for you this holiday season. As the new year gets ramped up, we thought you’d appreciate a briefing on four noteworthy tax events.

IRS Headquarters Reopens
After a six-month closure due to flooding, IRS headquarters reopened roughly one week ago. As of December 11^th, submissions should no longer be sent to the temporary address and now follow standard procedures. Taxpayers have also been reminded to fax a copy of their requests to the headquarters’ (202) 622-7707 number; the temporary fax and telephone numbers should no longer be used.

No Change in Interest Rates
On December 12^th the IRS announced that there will be no change in interest rates for the first quarter of 2007. Current interest rates are as follows:

• 8% for overpayments [7% in the case of a corporation]
• 8% for underpayments
• 10% for large corporate underpayments
• 5.5% for the portion of a corporate overpayment exceeding $10,000

As a matter of code, interest rates are determined on a quarterly basis. Interest rates for overpayment and underpayment is determined by the federal short-term rate plus 3% for taxpayers other than corporations. For corporations, underpayment is the federal short-term rate plus 3%; overpayment is the federal short-term rate plus 2%.

Tax Law Changes and How They Affect Charitable Contributions
Last summer the Pension Protection Act made several changes to tax law, many of which you should be aware of when giving charitable contributions this year-end:

• IRA pension owners, 70 ½ and over, can transfer up to $100,000, tax-free, to eligible charities.
• Clothing and household items donated after August 17^th, 2006 must be in good condition to qualify.
• Taxpayers can claim any item more than $500 regardless of condition, as long as it’s accompanied by an appraisal.
• Monetary contributions more than $250 must come with a receipt from the charity and a bank record
• Donations can be made by cash, check, electronic transfer, credit card, or payroll deduction (must accompany a copy of the pay stub, W-2 statement, or other employer document)

For more information, visit the IRS website.

Hybrid Cars and Alternative Motor Vehicles Will Get You a Tax Credit
The clean-burning deduction has been replaced with a tax credit by the Energy Policy Act of 2005. Taxpayers who purchased hybrid and alternative motor vehicles after January 1, 2006 can claim an additional tax credit and either lower the federal tax due, or eliminate their federal obligation altogether. The credit is only available to actual purchasers of qualifying vehicles; leasing companies claim the credit for qualifying vehicles leased to customers.

For more information, visit the IRS website.

Keep in Mind How Universal Can Help You - 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 program for years, the program teaches you shortcuts and methods you may not have known. You will be impressed by the simple flow and completeness of our program.

And enroll now and get $100 off our retail price. For just $385 you can get the Professional Bookkeeper’s Guide to QuickBooks and the full academic version of QuickBooks Pro. Or choose to get the QuickBooks training with a free trial version of QuickBooks for just $285! For less than $400 you could improve the accuracy of your tax returns and add an additional income stream to your tax practice. Enroll today!

All The Tools You’ll Need to Become a Professional Tax Preparer are at Your Fingertips… and You Don’t Need a College Education

The US Department of Labor forecasts that as the economy continues to grow, the need for qualified tax prepares will increase for the foreseeable future. As the tax code continues to evolve and change, the need for well trained and qualified tax professionals has never been greater.

Let’s take a look at how Universal Accounting’s Tax Tips Newsletter can help you take advantage of this trend.

What Does the Tax Tips Newsletter Have to Offer Me?

• Learn About the Exciting and Rewarding Business of Professional Tax Preparation
• Learn How to Earn a Better Income
• Learn How to Start Your Own Business
• Learn How to Create a Stable Income
• Learn How to Take Advantage of Increased Tax Benefits
• Learn About a Recession-Proof Career with Unlimited Potential

Once a week you’ll receive tips and information that will introduce you to the exciting and lucrative business of Professional Tax Preparation. Ideas that will help you build a profitable practice that will help you create the lifestyle that you and your family deserve.

Enjoy a PDF Version of Allen Bostrom’s Book In The Black on Us

We hope you find the information contained in the Tax Tips Newsletter to be helpful and informative. The exciting and rewarding business of Professional Tax Preparation has been just the ticket for hundreds of people as they create the kind of professional and personal success that they have been looking for.

President of Universal Accounting, Allen Bostrom’s book, In the Black:Nine Principles to Make Your Business Profitable, has helped people all over the country evaluate the critical place the accounting process plays in the profitability of any business. I’d like to give you a PDF version of the book today for signing up for our new newsletter.

Once again, welcome to Universal Tax Tips. Sign-up today for the most informative and up-to-date information available about this rewarding and enjoyable profession. I’ll look forward to talking with you in our next newsletter.

Recently the American Institute of Certified Public Accountants (AICPA) sent a letter to Congress in attempts to change the new tax preparer provision which, as of May, became law. The AICPA feels that the provision, which was included in the Iraq funding bill, will likely increase tax preparers’ fees in proportion to the newly required increase in tax preparers’ reporting standards.

Tom Ochsenschlager, AICPA Vice President of Taxations, believes that increasing the preparers’ reporting standard for undisclosed non-tax shelter items from the “realistic possibility of success” standard to the “more likely than not” standard will require more time on the tax preparers part to ensure that the new standard has been properly met.

Ochsenschlager is also concerned that Congress did not hold a hearing to examine the effects of this new tax policy. The AICPA has written a letter to Congress asking that they reexamine the provision and apply the same reporting standards to preparers as they currently do to taxpayers.

The following news items were released by the IRS within the last month.

Take Advantage of “Other” Deductions

The IRS recommends that business owners take advantage of deductions not currently mentioned by name on the tax form and list them under “other” deductions. Taxpayers can deduct necessary and ordinary expenses, and the IRS lists the following as examples of “other” acceptable deductions:

The IRS reminds taxpayers that personal, living, and family expenses do not qualify as ordinary and necessary business expenses.

For more information go to www.IRS.gov.

• Business start-up costs
• Amortization of certain costs including pollution-control costs, goodwill, research and experimentation
• Bad debts. These were once listed as income but have been used to provide sales and services for the business and have not yet been recovered. Once those costs are recovered, however, they must be reported on future tax forms.
• Gulf Opportunity (GO) Zone clean-up costs

Home Office Deductions

Generally rent, maintenance, utilities, and other household expenses do not qualify as business deductions. However, if part of your home is used exclusively and regularly to conduct business, or if part of your home is used to store business inventory and product samples, you may be able to claim a household deduction. Deductible expenses include the business portion of real estate taxes, utilities, rent, mortgage interest, insurance, maintenance and depreciation.

Day Camp Can Be a Tax Break

Parents who send their children 13 and under to day camp can list the expense as child and dependent-care credit. Overnight camps are not eligible for this tax break.

The credit applies to 20 to 35% of non-reimbursable expenses of which parents are allowed up to $3000 for one child and $6000 for two or more children. This credit is also based on income.

Are Your Clients Eligible for Advanced Earned Income Credit?

If your clients expect to be eligible for the Advanced Earned Income Credit, also called the Advance EIC, they may be able to take advantage of the tax credit now. To qualify taxpayers must fall within a certain income and have a qualifying child. Counsel your clients to request Form W-5, Earned Income Credit Advance Payment Certificate, from their employers to see if they do indeed qualify. Taxpayers can only have one active form with a current employer. If married, the spouse must file a separate form with his/her employer.

Once approved, the employer will add the credit into the employee’s net pay for each eligible pay period. If individuals do not take advantage of the credit now by having it folded into their pay, they can receive the credit in their 2008 return.

References
AICPA Urges Change in Tax Preparer Provisions, SmartPros

July is the time when many Americans celebrate their freedom, reflecting back on the time when this nation won its independence. But this is a tax newsletter, so we felt it appropriate to celebrate Tax Freedom Day (TFD), even though it occurred nearly two months ago on April 30th.

As tax professionals, many of you are already familiar with Tax Freedom Day: the day on which Americans citizens have earned enough income to fund the total national tax burden. Every year the Tax Foundation, a Washington D.C. based tax research organization, calculates Tax Freedom Day. 2007’s TFD fell 2 days later than it did in 2006, and 12 days later than it did in 2003.

The History of Tax Freedom Day

In 1948, Florida businessman Dallas Hostetler developed and copyrighted the concept of Tax Freedom Day. For 23 years Hostetler calculated TFD until he retired in 1971 and conferred the copyright to the Tax Foundation. The Tax Foundation has calculated TFD since and in 1990 the Tax Foundation extended their calculations to include Tax Freedom Days specific to each state. This year Oklahoma was the first to pay its tax burden on April 12th, while Connecticut was the last, making their state TFD May 20th.

The Foundation reports that while calculations are not comparable due to different methods for collecting and tabulating financial information, 8 countries annually calculate their own Tax Freedom Day, including Australia, Estonia, and Poland.

The Tax Foundation has gone back to calculate TFD from 1900, long before Hostetler began his calculations. In 1900 Freedom Day fell on January 22nd and represented a mere 5.9% of the typical tax payer’s income. That jumped to nearly 12% in 1920 when TFD fell on February 13th and then again to 24% in 1950 when it fell on April 1st.

What the Calculations Mean

Some criticize the Foundation’s calculations, saying that what they claim to be the day the “average American” has earned enough to pay his/her tax burden is greatly exaggerated-a calculation largely comprised of the taxes associated with citizens in high income brackets. However, the Foundation defends its approach, saying TFD represents the economy’s overall tax burden rather than the “average American’s” tax burden.

In addition to the TFD, the Foundation includes calculations that represent the days required for the “average American” to pay their tax burden compared to other, more personal expenses. This year that same “average American” will spend 79 days of their work year paying federal taxes-that’s 17 days more than what they will work to pay for household expenses and 27 days more than what they would work to pay for health and medical care. They will also spend 41 days working to pay their state and local taxes-11 days more than what it would take to pay for food and 19 more than what it would take to pay for recreation.

References
The Tax Foundation
Wikipedia, Freedom Day

Serving You with Our Free Newsletters

We enjoy sending you information that we hope improves your work as a tax preparer. Our three newsletters, AB Tips, Tax Tips, and Career Tips, are intended to help professionals like you advance in whatever their current position in the financial field. The AB Tips Newsletter is designed to share accounting and bookkeeping tips with subscribers. Intended for individuals with their own accounting practice or for those who would like to start their own practice, we specifically include tips on how to market your services, how to streamline tasks, how to organize your office space, etc. Our Tax Tips Newsletter is for tax preparers or those interested in tax preparation. We provide tax news, information on starting your own business, tips on building your clientele, etc. And finally, we have our Career Tips newsletter, for those who work or would like to work in the accounting field. In this newsletter we include information on getting the right job, advancing in your field, moving into management positions, etc.

As we learn more about your needs, we alter our approach in order to better serve you. We’re adding a few things to the newsletter that we hope you enjoy. Here’s a breakdown of what’s included and how we hope it helps you.

Two articles

Since we began running our free ezines over two years ago, we have included two articles every issue that offer accounting and tax information, tips on running and marketing a small business, career guidelines and promotional pieces. The newsletters provide us with the opportunity to share our products and services with those we believe they best serve. Universal’s programs are top of the line and life-changing; we promote them because we know they help people like you achieve career goals and realize your business dreams.

We also use the newsletter as an opportunity to expose you to our many free resources, including personalized information from our President and CEO, Allen Bostrom in Allen’s Blog, UAC’s accounting and tax forums, the newsletters, and the Universal video tour.

Recently we’ve responded to requests for purely informational pieces as well. Last summer we asked newsletter subscribers to tell us what you wanted to read about. For the past six months we’ve tried to include articles on all suggested topics. Each newsletter contains one, if not two, informational pieces. We continue to welcome your feedback as we write articles intended to help you improve your financial services. Please visit our forums for a chance to give us feedback on past articles and suggestions for future articles.

Press Releases and New Products

We want you to be in the know about everything Universal, so we include all press releases, enrollment offers, and information about new products in our newsletters. From our new interactive testing center to our customized Professional Bookkeeper Program for Canadian residents, we want you to be the first to know what’s happening at Universal Accounting Center.

Quotable Quote

Everyone could use a little inspiration now and then, so we like to include a quotable quote in each issue of our newsletters. Funny quotes, somber quotes, quotes that make you want to get up and accomplish something, we try to include a variety that inspire and uplift.

“The Bottom Line”

And last but certainly not least is an upcoming addition to our newsletters: a video clip we call “The Bottom Line.” In the serious world of financial statements, taxes, and projected profits, the bottom line is that we like what we do and can enjoy a good laugh about our profession. The humorous clip is intended to help lighten your load and improve your day. We hope you look forward to this new feature and share it frequently with coworkers, family, and friends.

We want our newsletter to help you move forward in your goals as a financial professional. So stay tuned as we continue to improve our newsletters so that they can better serve your needs. We appreciate your support.