IRS cracking down on Independent Contractors! Please Read!

Does it really irk you that you pay taxes that your employer should be paying? Man, do I have the answer for you. This, to me, is one of the most incredible new things the IRS has done. Starting in 2007 if you feel that your employer should be taking taxes out and they are not, you can file a specific form and it’s completely private. Your employer doesn’t have to know a thing! And the best part is, you don’t have to pay the self employment tax! Yes, you read this correctly.
So, if you have been really trying to stick it to your employer about him/her not paying your taxes and giving you that dreaded 1099. You know you pay that 15.3% tax and it just makes your stomach turn. Now, you can turn the tables on your boss without them knowing. Now, if you are the only “subcontractor” that works at your office or business establishment then it may be not in your best interest to play this card but you know what’s best for you.
Ladies and gentlemen, this is one of the most progressive moves the Internal Revenue Service has made. This will change the landscape of people who misclassify their workers. This has been a pain in the side of IRS for a long time, and this may be one of the smarter moves they have made.
On the flip side, it may be creating unnecessary work for agents of the IRS. They could be reading alot of disgruntled employees who really want to stick it to their employers. Who knows what will become of this? But this is HUGE.
If you think you may truly be an employee and yet your employer won’t do the right thing, you may want this form. E-mail us here and we will send it to you. Just put in the subject ”we want the form”!

Economic Rebate checks will begin arriving...

The payout schedule is now set. The first rebate will be wired on May 2 to taxpayers who had their 2007 refunds deposited directly to their bank accounts. IRS will finish wiring these rebates by May 16. The order depends on the last two digits of the social security number of the primary filer. the lower the number, the quicker payment. Paper checks will go out May 16 to non direct depositors based again on the last two digits of their social security number. If you owe back taxes are owed, the Service will grab a filer's rebate.

Update: You must have your return electronically filed April 10, 2008.

A meaningless Duke/UNC game ?

I am taking time out from doing taxes and getting ready to watch the usually heated game between the Duke Blue Devils vs North Carolina Tarheels. Most people who know college basketball know that Duke vs North Carolina is your modern day Hatfields vs McCoys. This particular game does have a solemn event attached to it. The death of the student body president for North Carolina really tames this game down. It's an important game granted, however, the game has a somber tone today. With Eve Carson being a victim of senseless violence, you can't help but feel sorry for the Tar Heels. And as hated as they are to the Duke campus, you can bet for a brief moment, albeit short, that Duke will feel their pain.

Nobody understands tragedies like this. Certainly we can't say this enough but our young people are getting killed way too early. I use to live in Auburn, and the tragedy that hit that community yesterday will be one of the most somber events in a long time for the campus. That's two random acts of violence in three days on campuses that are not known for violence. It's not a fun situation for any campus to go through. What did we learn from Northern Illinois and Virginia Tech? Will this ever end?

One of the greatest basketball rivalry games are tarnished tonight. Duke is favored to win and probably will. Some think North Carolina will come and play their hearts out for their fallen president. Regardless, nobody is truly a winner tonight.

Update: NC won. Doesn't feel like a normal tar heel win. And why should it with one less fan in the crowd.

You have got to be Kidding Part 2 - Life of an Accountant during tax season.

You knew it was coming. The month of February would not go out without a tax client bang. I got an email today that made me laugh. When you do a tax return, it's standard to let the husband be the taxpayer and the wife be the spouse. It's not a feminist thing at all. It's just how the Internal Revenue Service labels their returns.

One of our clients emailed me today and mention that she wanted to be the taxpayer and her husband should be the spouse. I was thinking is it really that big of a deal? Apparently it was. She made me change the return. Her tone was one of complete displeasure as if almost to assume that I was being a sexist pig. Readers, I really wasn't but it was the first time I have ever been exposed to this. But maybe I am wrong for assuming that the taxpayer should always be the man. In the grand scheme of things, is it a big deal? No, but to keep a client happy and returning why not.

Second fun client of the day. I did a clients return and they were not happy with the size of the refund (surprise..) One thing they did not do was bring in their 2006 return. I really wanted it but they said it would be too much trouble to bring back. So, I said call me on the phone and we can run through it. So, this 20 minute return has now cracked the hour and some change barrier and the return isn't that much in revenue. So, I do my job and review the 2006. Come to find out that the prepare from last year made a big mistake. He double county state and local tax. This should trigger a letter from the state and the clients should owe the state some money. All of a sudden I am the real bad guy now. 1) I am the guy that lowered their refund from prior years and 2) I am the guy who found a mistake that will cost them money. Why did I have to overturn that rock? But thats a double edge sword. If I did not catch that I would probably be quizzed and grilled why I did not catch it even though I didn't do the return.

Corporate tax deadline is close guys. March 17, 2008 and don't forget clocks go back next weekened.


It's hard being a good tax accountant.

Themes for your BlackBerry

We have a great site for those who have Blackberry phones. If you need Ringtones for your Blackberry or themes and wallpapers, please check out http://www.tuneusin.com/. The site is on the rise!

What City is this?

I have a picture that I am trying to see if I can get anybody to tell me what city this is. I know the answer but I wanted to see how many could guess right.

Take a stab!

Tax Rebate Clarification

Make sure you file your 2007 tax return if you want to see this tax rebate. But did you know that the rebate is technically an advance payment of a special 2008 tax credit? For most, the rebate will equal the tax credit allowed. For those whose credit exceeds their rebate will claim the balance on their 2008 tax return. If your rebate is bigger than your credit, you would not have to repay the Treasury.
Do you want to check to see what your upcoming rebate will be head to www.kiplinger.com/tools/rebate and answer a couple of questions.