Four Characteristics of a Healthy Partnership

Starting and maintaining a successful partnership can be tricky business.  Entrepreneur.com writer Toddi Gutner explores what makes some partnerships work while others flounder.  Whittling down to the most common characteristics, Gutner asked members of one partnership what made them successful: the CEO and the executive vice president of the Campbell Soup Company.  Here’s what they said has enabled them to maintain a thriving partnership against the odds:

1. Trust

Executive vice president Denise Morrison describes the importance of trust as followings: “Trust implies that both parties participate in the relationship [where] both ‘gives’ and ‘gets.’ The attitude of giving a full commitment to the partnership will usually result in getting the same commitment in return.”

2. Mutual Respect

It’s important that partners bring complementary strengths to the table.  When that happens, it becomes easier to respect each individual’s contribution to the practice.  Recognizing that all contributions are not necessarily equal, it becomes easier to focus on how you’re building the business together rather than keep score on what each of you is contributing.

3. Shared Vision and Values

All partners must have a clear understanding of where they want their practice to go, including the type of clientele they’re trying to establish and the service suite they wish to offer.  Assistant professor at NYU’s School of Continuing and Professional Students, Lee H. Igel, PhD explains, “What cripples famous partnerships to a point of failure is when, after achieving success, the partners have the interest and opportunity to take on new projects.  New project can require new missions and objectives that take partners in different directions, and so the elements of the relationship that made them successful ends up frittering away.”

4. Honest and Open Communication

Unless you’re able to discuss pertinent issues openly and honestly, your partnership will fail.  Doug Conant, CEO of Campbell Soup Company explains, “It’s extremely important that you let people know where you stand—what motivates you, how you operate, what your expectations are, et cetera.  I make it a practice to meet with everyone on my team very early on and tell them everything they need to know about me.  At the end of the meeting, I encourage them to tell me what I need to know about them.  It makes for a more productive partnership.”

Whether you’re interested in launching a business with a partner or adding a partner to your current business, it’s good to establish some standards for operation, including those ground rules that will best ensure your success.  Hopefully, this list has given you something to consider.

Universal’s Training Will Help You Build a Solid Tax Practice

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 income tax training, the 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 online tax course 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.  Invest in training that will enable you to increase your knowledge and skills while building your home-based tax business.  Call 1-877-833-7909 and enroll in the Professional Tax Preparer program now!

Resource

Gutner, Toddi.  “Building a Business Partnership That Lasts.”  16 August 2011 Entrepreneur.com

Different Spending Habits = Greater Happiness?

We agree with the old adage, money can’t buy happiness.  However, we’re inclined to believe that wealth does afford you some incredible opportunities that you may not have access to otherwise, and, in determining how to spend your money, you may find that some choices are much more rewarding than others.

In a recent Entrepreneur.com article entitled “Money, Happiness and the Secret to a Rich Life,” author J.D. Roth opens with the premise that rich people are far happier than poor people. However, in breaking down the elements that contribute to an individual’s happiness (including biology, personal choice and age, race and gender), finances have a marginal impact.  While he agrees that money can’t buy happiness, he does contend that “some financial habits bring greater satisfaction than others.”  Referencing an article published in the 2005 issue of the Review of General Psychology written by Lyubomirsky, Sheldon and Schkade, Roth shares 5 such habits, of which we note below:

1. Purchase more experiences, fewer things.  When referring to material positions, you may have said, at one time or another, ‘You can’t take it with you.”  And as Roth argues, all our material positions depreciate.  However, memories are indestructible and generally grow fonder with time.

2. Use your money for the greater good. When we donate money to charity or give it to a good cause, positive feelings are generated that don’t quickly fade.

3. Buy more small pleasures instead of fewer big ones.  To quote Lyubomirsky, Sheldon and Schkade, people find greater happiness in “frequent does of lovely things rather than infrequent doses of lovelier things.”

When determining how to spend one’s earnings, it’s important to realize that you don’t have to grace the cover of Forbes Magazine in order to practice these three habits. Take the time to examine your spending to see if there may be a way that you could enjoy greater happiness without a huge payout.

We encourage you to post spending habits that help you achieve greater satisfaction and happiness.

Secure More Clients with the Universal Practice Builder Program

If you’re looking for training to help you market your practice effectively and generate more income, the Universal Practice Builder (UPB) Program is the course for you.  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 find yourself lacking the intuitive salesperson personality, call Universal at 1-877-833-7909 to register for this phenomenal program now!!

Resource

Roth, J.D. “Money, Happiness and the Secret to a Rich Life.”  July 2011 Entrepreneur.com

Apply for Low-Income Taxpayer Clinic Grant

On June 1^st, the IRS announced the opening of the 2012 Low Income Taxpayer Clinic (LITC) grant application process.  The LITC program awards matching grants of up to $100,000 each year to qualifying organizations looking to launch, grow or maintain a low income taxpayer clinic; interested tax preparers should act now!

The grant cycle begins in January 1, 2012 and runs through December 31, 2012.  You must submit your application—either electronic or hardcopy—to the LITC Program Office in Washington, DC by July 15, 2012.  The grants are awarded to organizations that provide education and outreach to non-native English speakers and service to low-income taxpayers with IRS grievances; applicants may apply for either program type or both.  The IRS lists examples of qualifying organizations as follows:

• Clinical programs at accredited law, business or accounting schools whose students represent low income taxpayers in tax disputes with the IRS; and
• Organizations exempt from tax under Internal Revenue Code Section 501(a) that represent low income taxpayers in tax disputes with the IRS or refer those taxpayers to qualified representatives.

Organizations interested in applying will have a greater success rate if they 1) are receiving a grant for the 2011 cycle or 2) plan to fill one of the following 2012 needs:

• New clinic applications in Montana, Nebraska, Nevada and Wyoming
• ESL clinic applications in Connecticut, Kentucky, Montana, New Mexico and South Dakota
• New clinic applications in the metropolitan areas of Los Angeles and Sacramento, CA, specifically in the Los Angeles, Kern, Riverside, Ventura, El Dorado, Placer, Sacramento, San Joaquin, and Stanislaus counties.
• New clinic applications in the metropolitan areas of Philadelphia, PA, specifically in the Berks, Delaware, and Philadelphia counties.
• New clinic applications in the metropolitan areas of St. Louis, MI, specifically in the Cape Girardeau, Jefferson, St. Francois, and St. Louis counties.

The IRS notes, “We encourage existing clinics to consider expanding their services to cover these areas, where possible.  Notwithstanding the criteria detailed above, all applications for clinics from all areas are welcomed and will receive full consideration.”

To learn more, visit the IRS website at http://www.irs.gov/pub/irs-pdf/p3319.pdf.

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 are impacting all paid tax preparers.  Call UAC at  1-877-833-7909  to enroll in the Professional Tax Preparer Program today and improve your competitive advantage while securing your professional standing in the tax industry.

We welcome your feedback and comments.  Please post!

Why We Sometimes Choke and What to Do about It

In a recent BNET article entitled “How to Never Choke Again,” author Jeff Haden considers those underlying reasons why we buckle under pressure—freezing during presentations, drawing a blank when dealt difficult questions, or, in Haden’s experience, wrecking a motorcycle.  He explains, “We don’t choke because we lack courage.  We don’t choke because we lack an innate coolness under fire.  We don’t choke because we’re flawed or made of softer stuff.  We choke when we face an unusual, uncomfortable, confrontational, or scary situation, we don’t know what to do, and we freeze.”

In summary, we choke because we lack experience.  And Haden says that to resolve the problem, not any experience will do, insisting the sure-fire way to avoid choking again is to gain confidence-building experience using suggestions that can be applied to just about any skill or circumstance.  Here are four of Haden’s six tips:

1. Build the basic skill.  If it’s public speaking, you need to learn the basic skills required to perform well.  Then you must practice them.

2. Rework the basic skill.  In order to develop confidence in that skill, you have to become more than just average at it.  This requires that you watch, study and learn in order to enhance your abilities and thus your confidence.

3. Practice for “What if? Even if you learn all the basic, and even advanced, skills required for your particular circumstance, the unexpected can still happen, upending the game plan and leaving you vulnerable.  That’s why it’s important to practice What-if.  What if the PowerPoint Presentation doesn’t work?  What if the microphone won’t turn on? What if people get up and walk out?  When you have a general idea of what you might do in difficult situations, you’ll be better apt to handle them when they do arise.

4. Visualize. The brain can’t tell the difference between reality and your imagination.  If you imagine yourself earning a promotion or getting a stellar job, you’ve tricked the brain into believing you’ve done that already, paving the way for reality.  And the more you visualize it, the better you will do when the moment of truth finally arrives.

Haden concludes, “…the key is not developing bravery or mental toughness.  The key is developing skills and experience…[which] naturally develop bravery and mental toughness.”  While it’s no silver bullet, Haden’s advice does help pave a more certain path to success.

The Universal Practice Builder (UPB) Program

If you would like to avoid choking as you launch your new accounting and/or tax practice, one way to ensure success is by acquiring the necessary marketing skills that will enable you to secure quality clients.  The Universal Practice Builder Program was designed to train you how to market your practice to the right demographic in the right way.

This program offers the following:

• A guarantee of $30,000 in new annualized billings in only 12 months
• Tactical goal planning and setting
• The generation of 15 to 25 qualified leads per month
• Phone marketing instruction and training
• Training in the benefits of newsletters and websites
• 12 proven marketing strategies
• Our iron-glad guarantee

Build the skills, rework those skills and then take the necessary steps to launch your own practice.  Allow Universal to help with the Universal Practice Builder Program.  Enroll today by calling 1-877-833-7909 begin_of_the_skype_highlighting 1-877-833-7909 end_of_the_skype_highlighting begin_of_the_skype_highlighting end_of_the_skype_highlighting be !

Resource

Haden, Jeff.  “How to Never Choke Again.” 11 May 2011  Entrepreneur.com

Make Next Tax Season More Profitable

If you prepare taxes on the side, tax season is a profitable time for you.  And depending on your goals, your little tax business could become even more profitable if you took some of the following steps to increase your clientele and your bottom line.

1. Consider Full-Time Self Employment

Don’t quit your day job just yet.  However, we would encourage you to consider whether or not you’re genuinely interested in launching your own full-time tax practice.  If so, it’s important for you and your family to know that this transition won’t put you out on the street.  And while it will require sacrifice, take the time necessary to ensure that you have work enough to sustain you when your business goes from being a part-time endeavor to a full-time one.

Consider how long it might take you to grow your business to the point where you’d feel comfortable quitting your job.  3 months?  6 months?  One year?  And don’t work blindly towards that deadline.  Determine “readiness indicators,” or symptoms that your business is healthy enough to go full-time.  Will you need at least 10 year-round clients? 15? 20?  Look at your current client base and calculate how much money each brings in.  How many more would you need in order to compensate for your current full-time income?  And don’t rush yourself.  Give yourself the necessary time to prepare for this most important career shift.

2. Add Tax Planning Services.

There is a notable difference between tax planning and tax preparation: THE DATE. Tax planning must occur before the year ends, and tax preparation begins after January 1st. Tax planning is an important step in reducing taxes.  Throughout the year, tax professionals can discuss with clients various tax strategies that could potentially save them thousands of dollars.  This also enables them to make any needed adjustments before the end of the year to effectively lower their tax liability.  Universal’s Professional Tax Preparer Program will help you accomplish this.

3. Offer more services.

Last week we discussed the importance of expanding your offerings.  This is sound advice because the more services you offer, the more valuable you become to current clients and potentials clients.  Consider adding accounting services to your menu in order to increase your value and become that one-stop financial shop. You’ll find that people may need an accountant more than they need a tax professional, and visa versa.  Only when you’re prepared to do both are you able to secure both types of clients.  And for the clients who need both accounting and tax services, you’re able to increase your billable hours, and thus increase your income.

4. Fine-Tune Your Marketing Approach.

It’s difficult to grow a business no one really knows about.  With just a handful of proven and effective marketing techniques, you could increase your clientele significantly.  Universal Practice Builder Program, otherwise known as Marketing on Steroids, will teach you how increase your billable hours and earn the monies you deserve by leveraging your time with techniques proven to get clients.  Your practice can become the premier service in your area for tax planning and preparation.  Your ability to market your business and network with key community players will promote your business to those who need and appreciate it most.

If you get started now, you may find 2012 better than you could have ever imagined!  But first, call Universal Accounting at 1-877-833-7909 begin_of_the_skype_highlighting 1-877-833-7909 end_of_the_skype_highlighting to see which of our programs could help you best prepare for a more profitable future!

Avoid Frivolous Tax Arguments with the IRS

On March 4^th, the Internal Revenue Service announced the release of a list of the most common frivolous tax arguments made by individual taxpayers and groups that contest their obligation to comply with federal tax laws.  The document, which includes detailed rebuttals, was created to discourage those who consider arguing the legality of their required tax obligations each year.  And in case those individuals need any more incentive, in 2006 Congress increased the penalty for frivolous tax returns from $500 to $5000.The document, entitled The Truth about Frivolous Tax Arguments, describes sixteen of the most common contentions, listed below:

1. A tax assessment is invalid because the taxpayer did not get a copy of the Form 23C, the Form 23C was not personally signed by the Secretary of the Treasury, or Form 23C is not a valid record of assessment
2. A tax assessment is invalid because the assessment was made from a substitute for return prepared pursuant to section 6020(b), which is not a valid return.
3. A statutory notice of deficiency is invalid because it was not signed by the Secretary of the Treasury or by someone with delegated authority.
4. A statutory notice of deficiency is invalid because the taxpayer did not file an income tax return.
5. A notice of federal tax lien is invalid because it is unsigned or not signed by the Secretary of the Treasury, or because it was filed by someone without delegated authority.
6. The form or content of a notice of federal tax lien is controlled by or subject to a state or local law, and a notice of federal tax lien that does not comply in form or content with a state or local law is invalid.
7. A collection due process notice (Letter 1058, LT-11 or Letter 3172) is invalid because it is not signed by the Secretary or his delegate.
8. A collection due process notice is invalid because no certificate of assessment is attached.
9. Verification requires the production of certain documents.
10. No notice and demand, as required by I.R.C. § 6303, was ever received by taxpayer.
11. A notice and demand is invalid because it is not signed, it is not on the correct form (such as Form 17), or because no certificate of assessment is attached.
12. The Tax Court does not have the authority to decide legal issues.
13. Revenue Officers are not authorized to seize property in satisfaction of unpaid taxes
14. IRS employees lack credentials.  For example, they have no pocket commission or the wrong color identification badge
15. 15.  Taxpayers are entitled to be represented at hearings, such as collection due process hearings, and in court, by persons without valid powers of attorney.
16. 16.  The Secretary has not authorized an action for the collection of taxes and penalties or the Attorney General has not directed an action be commenced for the collection of taxes and penalties.

If you or your clients would like to avoid tarnishing your reputation and wasting time and the accrual of unnecessary penalties, review this entire document at IRS.gov.Universal Accounting’s Tax Training Prepare taxes under the new regulations established by the IRS by 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.  Call 1-877-833-7909 to see how the Professional Tax Preparer Program could enhance your career now!

Earned Income Tax Credit, IRS Smartphone App and Free Tax Assistance

January 28^th marked the fifth Earned Income Credit Awareness Day, and the IRS used the publicity to urge taxpayers to check their eligibility for the EITC, one of the federal government’s largest benefit programs available.

For 2010 tax returns, the maximum credit for workers with three or more qualifying children is $5666.  However, the IRS iterated that workers without qualifying children may still qualify for a smaller amount.  Eligibility for the credit is based on various qualifications including earnings, filing status and eligible children.

Doug Shulman, IRS commissioner, explained, “Millions of workers who did not earn high incomes claimed the EITC last year.   The IRS encourages all eligible taxpayers to claim this valuable credit. Together with our partners, we can help taxpayers file their returns and get the EITC.”

In order to claim the credit, taxpayers must file a return, even if they have no filing requirement.  To verify eligibility, visit the IRS’s website and type ‘EITC’ into the search box.  An online EITC Assistant will walk taxpayers and/or their preparers through the process.  Eligibility requirements and other information about the EITC can be found on the IRS website.

IRS2Go Smartphone Application is a Go

On January 24^th, the IRS released its first smartphone application, known as IRS2Go, which informs taxpayers on the status of their tax refund while also helping them obtain tax information when necessary.  By entering basic information—Social Security number (which is encrypted), filing status, and the amount of their return—taxpayers can receive up-to-date information on their return and when they’ll be receiving it.

IRS Commissioner Doug Shulman said, “This new smart phone app reflects our commitment to modernizing the agency and engaging taxpayers where they want when they want it.  As technology evolves and younger taxpayers get their information in new ways, we will keep innovating to make it easy for all taxpayers to access helpful information.  This phone app is a first step for us. We will look for additional ways to expand and refine our use of smartphones and other new technologies to help meet the needs of taxpayers.”

Free Nationwide Tax Assistance

If individuals cannot afford your services, chances are they qualify for free tax preparation help.  Knowing where to refer them would be a valuable service to offer.

On January 28^th, the IRS announced the availability of 12,000 free tax preparation sites that are open nationwide this year in efforts to provide help for low- to moderate-income and elderly taxpayers.

The IRS Volunteer Income Tax Assistance (VITA) Program provides the free service to those earning less than $49,000 and to those 60 and older.  The IRS has partnered with Armed Forces Tax Council (AFTC) in order to provide tax assistance to military personnel and their families.  IRS Free File will still be available to those taxpayers who want to prepare their own tax returns.

For more information on how individuals can access these services, visit the IRS website.

Become a Professional Tax Preparer

Are you prepared for new IRS tax preparer regulations?  If not, it’s time you enrolled in UAC’s Professional Tax Preparer (PTP) Program.  What you might spend on Universal’s training will return in spades next tax season.  Not only is your potential client base huge, but the new IRS regulations are bound to decrease your competition in the future.  That means many businesses and individuals will be looking for qualified professionals to prepare and file their tax returns.  As a Professional Tax Preparer you could enjoy the benefits of a lucrative and rewarding practice offering tax services.

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 PTP Program will enable you to help your clients save enough money in taxes to more than cover your fees.  Call UAC to learn more at 1-877-833-7909.

National Taxpayer Advocate Releases Annual Report

In a report outlining the 21 most serious problems faced by today’s taxpayers, National Taxpayer Advocate Nina E. Olson identifies tax reform as the administration’s first priority.  Olson explained, “There has been near universal agreement for years that the tax code is broken and needs to be fixed. Yet no broad-based attempt to reform the tax code has been made.  This report documents the burdens the tax code imposes on taxpayers and explores why many taxpayers may nevertheless feel wedded to key aspects of the current system, undermining efforts at reform.”

Widespread tax breaks—such as the exclusion of employment contributions for health care, the exclusion for retirement plan contributions and earnings, the mortgage interest deduction, the earned income credit, child and dependent care credits, etc.—present the biggest roadblock to tax reform.  Reducing the average tax liability by about $8000 per return, these tax expenditures make it impossible to significantly lower overall tax rates.  “If tax rates are to be substantially lowered, many existing tax breaks will have to be eliminated immediately and others will be phased out,” Olson said.  “But I believe most taxpayers will conclude this is a worthwhile trade-off.  If tax reform proceeds on a revenue-neutral basis, the average taxpayer’s liability will not change, and we will end up with a tax system that is simpler, more transparent, and easier and cheaper for taxpayers to navigate.”

Olson argues that eliminating these tax breaks will simplify the tax code, alleviating the current compliance burden which, after either retaining the help of a tax preparer or purchasing tax software, costs the average taxpayer $258 per year.

Another concern expressed by Olson is the use of IRS enforcement tools, specifically tax liens, to achieve compliance.  She explains, “Tax collection requires a delicate balancing of the government’s interest in collecting revenue and ensuring that all taxpayers pay their fair share of tax, on the one hand, and protecting financially struggling taxpayers from unnecessary harm, on the other.  Current IRS policies do very little balancing.  For example, IRS lien filing policies are all about ‘protecting the government’s interest’ and don’t consider the impact on the taxpayer.”   Olson suggests collection alternatives, including offers in compromise through which taxpayers could negotiate a more realistic method and amount of payment.

An independent organization within the IRS, Taxpayer Advocate Service helps taxpayers experiencing extreme financial difficulties.  Every year, the National Taxpayer Advocate submits an Annual Report to Congress noting the most serious problems taxpayers are experiencing.

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.

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 1-877-833-7909 begin_of_the_skype_highlighting              1-877-833-7909      end_of_the_skype_highlighting to enroll today, and improve your competitive advantage while securing your professional standing in the tax industry.

Resources

http://www.TaxpayerAdvocate.irs.gov – Offer suggestions regarding tax reform through this IRS website.

http://www.irs.gov/newsroom/article/0,,id=233959,00.html — Learn more about this annual report.

Tax Cuts to Increase Taxpayers’ Take-Home Pay

On December 17^th the IRS released instructions that will help employers implement the 2011 cut in payroll taxes, effectively increasing the take-home pay for millions of taxpayers.  This information includes 2011 income-tax withholding tables.The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 decreases Social Security tax withholding by 2 percentage points, which will return to workers in their tax-home pay.  Regardless of the cut, Social Security benefits remain unchanged.These tax cuts must be implemented by January 31, 2011, although employers could begin as early as the first of the New Year. The additional month takes into account the late enactment of these changes, enabling employers to be in full compliance by the deadline with offsetting adjustments for the month of January made no later than March 31, 2010.  Information on the tax tables and the lower Social Security withholding rate can be found on the IRS website.Because employers and payroll companies will manage these changes, there is no need for workers to take additional actions like completing a new W-4 withholding form.The IRS continually urges taxpayers to review their withholding every year and make changes as necessary, especially those who have multiple jobs, are having children, getting married, divorced or buying a home.  Publication 919, How Do I Adjust My Tax Withholding? can provide information that helps taxpayers ensure their W-4 forms are current and adequately reflect their current financial situation.  Visit the IRS for more information.

Statistics of Income Bulletin Now Available

In other IRS news, the fall 2010 issue of the Statistics of Income Bulletin has been released.  It features information on over 140 million individual income tax returns filed in 2008 with a total adjusted gross income of $8.3 million.  The bulletin is produced quarterly by the IRS Statistics of Income (SOI) Division and includes articles on data available from various tax and information returns filed by taxpayers. Additional articles include an analysis of partnership returns for the 2008 tax year and an analysis of information returns of nonprofit charitable organizations for the 2007 tax year.  You can access this bulletin and prior SOI Bulletins on the Tax Statistic page of IRS.gov.

Enjoy a New Year of Greater Prosperity

Are you prepared for new IRS tax preparer regulations?  If not, it’s time you enrolled in UAC’s Professional Tax Preparer (PTP) Program.  What you might spend on Universal’s will return in spades this next tax season.  Not only is your potential client base huge, but the new IRS regulations are bound to decrease your competition in 2011.  That means many businesses and individuals will be looking for qualified professionals to prepare and file their tax returns.  As a Professional Tax Preparer you could enjoy the benefits of a lucrative and rewarding practice offering tax services.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 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.  The modules in this course 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. In Module 3, 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. Module 4 was designed to give you 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.

Take time over the break to 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.  We’re guessing that when it comes to your family and their future, you care enough to give to give the very best.  Buy yourself a New Year’s gift of tax training, and in so doing, create a more carefree and prosperous life.   Enroll in the Professional Tax Preparer Program now.

December IRS Updates

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 15^th 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.