Effective July 1, 2014, the IRS has instituted a new, voluntary system which aims to recognize the efforts of non-credentialed return preparers who aspire to a higher level of professionalism. Meet the requirements by obtaining 18 hours of continuing education, including a six hour federal tax law refresher course with test, and you will receive an Annual Filing Season Program – Record of Completion from the IRS. The continuing education requirement has been prorated for 2014 since the program started in the middle of the year. Note that all tax practitioners are required to renew their PTINs in order to be eligible to prepare tax returns. Participation in the AFSP is not required in order to be eligible to prepare tax returns. What are the benefits of this voluntary program? AFSP participants will be included in a public database of return preparers scheduled to launch on the IRS website in January 2015. The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications will include the name, city, state, zip code, and credentials of all attorneys, CPAs, enrolled agents, enrolled retirement plan agents and enrolled actuaries with a valid PTIN, as well as all AFSP – Record of Completion … Read More
Are your clients aware of the IRA Required Minimum Distribution (RMD) rules when they reach age 70 ½? A good planning opportunity is to reach out to those clients who are subject to the RMD. Learn the rules of IRA Required Minimum Distributions If a taxpayer will be age 70 1/2 or older by the end of 2014, they must withdraw a minimum amount — a Required Minimum Distribution — from their non-Roth IRAs for 2014. Withdrawals are not required from Roth IRAs until after the owner’s death. Required Minimum Distribution deadline The 2014 RMD must be taken by Dec. 31, 2014. If the taxpayer reaches the age of 70 1/2 in 2014, they can delay taking the 2014 RMD until April 1, 2015. They must also take the 2015 RMD before December 31, 2015 so delay will cause two distributions to be issued in the same year. Required Minimum Distribution amount The 2014 RMD is the account balance as of the end of 2013 divided by a distribution period from the IRS’s “Uniform Lifetime Table.” A separate table is used if your spouse is the sole beneficiary and is 10 or more years younger. These worksheets can be used to … Read More
In a recent speech before a group of tax practitioners Koskinen told tax preparers and others who are frustrated with long wait times on the service’s phone lines to call their member of Congress. Koskinen said, “Congress needs to hear and understand the impact of the funding cuts. As I tell people on Capitol Hill, we are the only agency still operating at the post-sequester level.” The IRS budget was cut 7 percent in Fiscal Year 2014, even as the agency took on the burden of administering the tax provisions of the Affordable Care Act. This is “the biggest challenge facing the IRS,” according to Koskinen. “Congress is starving our revenue-generating operation,” he explained. “If voluntary compliance with the Tax Code drops by 1 percent, it costs the U.S. government $30 billion per year. The IRS annual budget is only $11 billion per year.” While IRS budget cuts may have been driven partially by outrage over the tax scandal involving targeting of conservative groups last year, Koskinen emphasized that “this was a mistake that should never happen again. My job is to make sure the public knows that.” Koskinen also spoke about the IRS voluntary education program the agency plans … Read More
Libra Services has released LibraTax, a new software solution that lets individuals and businesses that have transacted business in Bitcoin and other digital currencies to calculate their tax obligations. The software calculates reportable capital gains on digital currencies following guidance released by the Internal Revenue Services in March. With its first-to-market and comprehensive solution, Libra automates the accounting process by retrieving the user’s transaction history from the public ledger (called the blockchain) and synchronizing that with the digital currency’s historical fair market value. The software accommodates all types of taxable events, including income, gifts and donations. “We’re excited that these easy-to-use, automated tools for consumers, tax professionals and accounting firms are finally available,” said Libra founder and CEO Jake Benson.
The NFIB has put together an infographic showing how small business owners manage their time. NFIB members were polled as to how they spent their work day and free time.