Self-Select Pin Signature Method for Online Registration.

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If you e-file using online filing software, you must sign the tax return using the self-select PIN (personal identification number) signature method. The self-select PIN signature method allows taxpayers to electronically sign their individual income tax return by selecting a five-digit PIN.The PIN is any five numbers (except all zeros) that you choose to enter as your electronic signature. Each taxpayer filing a joint return needs a PIN and each may choose any five numbers. As part of the authentication process, each taxpayer enters their date of birth and either their adjusted gross income (AGI) as shown on their original return for the prior year or their prior year PIN.

Primary taxpayers under age 16 who have never filed and secondary taxpayers under age 16 who did not file for 2010 are ineligible to use the self-select PIN method to sign. Affected taxpayers may still e-file by using the Practitioner PIN method.

The IRS advises taxpayers to keep a copy of their tax return for their records to assist with electronically signing the next year’s e-file return. If you need a copy or a transcript of your return refer to Topic 156 for assistance.

for more information contact -

Manendra Kothari, CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001    MKothari@SKTaxes.com
www.SKTaxes.com
Web : http://schaumburgcpa.info/

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How to Change Your Address ?

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If your address has changed, you need to notify the IRS to ensure you receive any IRS refunds or correspondence. There are several ways to notify the IRS of an address change. If you change your address before filing your return, write the new address in the appropriate boxes on your return when you file. When your return is processed, we will update your records.

If you change your address after filing your return, you should notify the post office that services your old address. Because not all post offices forward government checks, notifying the post office that services your old address ensures that your mail will be forwarded, but not necessarily your refund check. To change your address with the IRS, you may complete a Change of Address Form , and send it to the address shown on the form.

You may also write to inform us of your address change. If you write, we need your full name, old and new addresses, Social Security Number or Employer Identification Number and signature. If you filed a joint return, you should provide the same information and signatures for both spouses. Send your written address change information to the campus where you filed your last return. The campus addresses are listed in the instructions to the tax forms.
If you filed a joint return and you and/or your spouse have since established separate residences, you both should notify the IRS of your new addresses.

Note: Tax forms will be mailed to the last address clearly and concisely provided by the taxpayer.For more information please visit http://schaumburgcpa.info  and contact us anytime for any query.

Manendra Kothari, CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001      
E-mail: MKothari@SKTaxes.com
www.SKTaxes.com
Blog:-http://schaumburgcpa.info

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If You are a Seniors must read this.

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Current research indicates that individuals are likely to make errors when preparing their tax returns.The following tax tips were developed to help you avoid some of the common errors dealing with the standard deduction for seniors,the taxable amount of Social Security benefits, and the Credit for the Elderly and Disabled.

Standard Deduction for Seniors – If you do not itemize your deductions, you can get a higher standard deduction amount if you and/or your spouse are 65 years old or older. You can get an even higher standard deduction amount if either you or your spouse is blind.

Taxable Amount of Social Security Benefits -When preparing your return, be especially careful when you calculate the taxable amount of your Social Security. Use the Social Security benefits worksheet found in the instructions for IRS Form.

Please consult us to know more benefits and any other query.

Manendra Kothari, CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001
E-mail: MKothari@SKTaxes.com
www.SKTaxes.com
Blog:-http://schaumburgcpa.info

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Do You Know Appeal Rights ?

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The IRS has an administrative appeals process that works formally with taxpayers to try to settle tax disputes in an effort to avoid formal court hearings. The role of Appeals is to make an independent review of a tax dispute and to consider the positions taken by both the taxpayer and the Service. Appeals strives to resolve tax disputes in a fair way and remain impartial to both parties.

The IRS will send you a report and/or letter that will explain the proposed adjustments or proposed or taken collection action. The letter also tells you of your right to request a conference with an Appeals or Settlement Officer, as well as how to make your request for a conference. In addition to examination adjustments, many other things can be appealed such as penalties, interest, trust fund recovery penalties, offers in compromise, liens, and levies. If you request an Appeals conference, be prepared with records and documentation to support your position.

Appeals conferences are informal meetings. You may represent yourself or have an attorney, accountant, or an individual enrolled to practice before the IRS, represent you. If you do not reach agreement with the Appeals or Settlement Officer, or you do not wish to appeal within the IRS, you may appeal certain actions through the courts.

For further information on the appeals process and information on how to stop interest from accruing on any anticipated liability, refer to Your Appeal Rights and How To Prepare A Protest If You Don’t Agree, and Examination of Returns, Appeal Rights and Claims for Refund. You can also refer to  Collection Appeal Rights.

Please consult us to know your other rights during examination, appeal or collection.

Manendra Kothari, CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001            
E-mail: MKothari@SKTaxes.com
www.SKTaxes.com

Blog:-http://schaumburgcpa.info

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Armed Forces Tax Information.

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The tax laws provide some special benefits for active members of the U.S. Armed Forces and certain benefits for individuals serving in combat zones. For more information on the various tax benefits available to members of the U.S. Armed Forces, please refer to Armed Forces’ Tax Guide & Contact us.

For federal tax purposes, the U.S. Armed Forces includes commissioned officers, warrant officers, and enlisted personnel in all regular and reserve units controlled by the Secretaries of Defense, the Army, Navy, and Air Force. The Coast Guard is also included, but not the U.S. Merchant Marine or the American Red Cross. However, these and other support personnel serving in a combat zone may qualify for certain tax deadline extensions normally available to individuals in the U.S. Armed Forces serving in a combat zone. For more information on benefits available to individuals serving in a combat zone (including non-military individuals), please refer to  Armed Forces’ Tax Guide, or see www.SKTaxes.com web site and Contact as.

Manendra Kothari, CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001      
E-mail: MKothari@SKTaxes.com
www.SKTaxes.com

Blog:-http://schaumburgcpa.info

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IRS Launches E-File.-Most Taxpayers Can File Immediately.

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The Internal Revenue Service opened the 2012 electronic tax return filing season today with a reminder to taxpayers that e-file remains the best way to get fast refunds and ensure accurate tax returns.

“E-file is the best option for taxpayers. E-file enables taxpayers to file more accurate returns and receive their refunds quickly and safely,”

In general, for people concerned about security, e-file has proven itself year in and year out as a safe and secure method of filing a tax return. E-file has a proven track record. Software vendors and paid tax return preparers use the latest encryption technology. Plus, within 48 hours, an electronic acknowledgement is issued that the return has been received by the IRS and either accepted or rejected.

With most people receiving a refund, the fastest way to get a refund is by e-filing and using direct deposit.Taxpayers can get their money automatically in as few as 10 days.For people who owe taxes, e-file offers payment alternatives such as filing now and scheduling payment on the April tax deadline. Taxpayers who still want to pay by check can do so by e-filing and then mailing a payment voucher.

For more information please visit http://schaumburgcpa.info  and contact us anytime for any query.

Manendra Kothari, CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001      
E-mail: MKothari@SKTaxes.com
www.SKTaxes.com

Blog:-http://schaumburgcpa.info

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Payroll Tax Extended into 2012.

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WASHINGTON — Nearly 160 million workers will benefit from the extension of the reduced payroll tax rate that has been in effect for 2011. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits.

Employers should implement the new payroll tax rate as soon as possible in 2012 but not later than Jan. 31, 2012. For any Social Security tax over-withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2012.

Employers and payroll companies will handle the withholding changes, so workers should not need to take any additional action.

Under the terms negotiated by Congress, the law also includes a new “recapture” provision, which applies only to those employees who receive more than $18,350 in wages during the two-month period (the Social Security wage base for 2012 is $110,100, and $18,350 represents two months of the full-year amount). This provision imposes an additional income tax on these higher-income employees in an amount equal to 2 percent of the amount of wages they receive during the two-month period in excess of $18,350 (and not greater than $110,100).

This additional recapture tax is an add-on to income tax liability that the employee would otherwise pay for 2012 and is not subject to reduction by credits or deductions. The recapture tax would be payable in 2013 when the employee files his or her income tax return for the 2012 tax year. With the possibility of a full-year extension of the payroll tax cut being discussed for 2012, the IRS will closely monitor the situation in case future legislation changes the recapture provision.

The IRS will issue additional guidance as needed to implement the provisions of this new two-month extension, including revised employment tax forms and instructions and information for employees who may be subject to the new “recapture” provision. For most employers, the quarterly employment tax return for the quarter ending March 31, 2012, is due April 30, 2012.

Please contact us if you have any questions.

Manendra Kothari, CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001    MKothari@SKTaxes.com
www.SKTaxes.com

Web : http://schaumburgcpa.info/

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Refund Information.

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Taxpayers have three options for receiving their individual federal income tax refund: a paper check, direct deposit (electronic funds transfer) into a checking, savings or other account; or a purchase of U.S. Series I Savings Bonds. Taxpayers may request that refunds be directly deposited in up to three separate accounts. The refund must be $1.00 or more. Form 8888, Allocation of Refund (Including Savings Bond Purchases), will give taxpayers a choice of selecting up to three accounts such as checking, savings and retirement accounts. Note: You cannot have your refund deposited into more than one account if you file Form 8379 (PDF), Injured Spouse Allocation.

If you file a complete accurate tax return, your refund will generally be issued within six weeks from the received date. If you filed electronically, refund checks will generally be issued within three weeks after the acknowledgment date. Refunds from amended returns will generally be issued within 8–12 weeks. Injured spouse claims can take longer, depending on the circumstances. Refer to Topic 203 for more information concerning Injured Spouse Claims.

To check on your refund, go to “Where’s My Refund” or call the Refund Hotline at 800–829–1954. Please allow 72 hours after you electronically file or 3 weeks after you mail your return before using the automated systems. When you call, you will need to provide your Social Security number, your filing status, and the exact whole dollar amount of the refund shown on your return. There are several reasons for delayed refunds. Refer to Topic 303 for a checklist of common errors when preparing your tax return, and for additional items that may delay the processing of your return.

If you receive a refund to which you are not entitled, or one for an amount that is more than you expected, do not cash the check until you receive a notice explaining the difference. Follow the instructions on the notice.

On the other hand, if you receive a refund for a smaller amount than you expected, you may cash the check, and, if it is determined that you should have received more, you will later receive a check for the difference. If you did not receive a notice and you have questions about the amount of your refund, wait two weeks after receiving the refund, then call 800-829-1040.

For more information please visit http://schaumburgcpa.info  and contact us anytime for any query.

 

Manendra Kothari, CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001   E-mail: MKothari@SKTaxes.com
www.SKTaxes.com

Blog:-http://schaumburgcpa.info

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What Schaumburg bookkeeper can do for your business to THRIVE?

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Success of our business depends on how extensively we help our client THRIVE in their business. We go beyond compliance and suggest ways to help our clients THRIVE.

It’s our responsibility to make a difference not only by providing best client service, maximum tax benefits and personal attention but also by generating unique value for our client’s businesses.

“If you can dream it, you can do it.” Once the idea starts materializing, it can be hard for entrepreneurs to balance those ideas with day-to-day accomplish-able tasks. We help successful entrepreneurs to manage both the “big picture” and the “small picture.”

As a business owner, nothing is more useful in keeping your company efficient and profitable than financial data maintained by experienced professionals. By outsourcing your accounting work to us, you can focus on implementing your business plan to achieve your personal and professional goals.

Each month or quarter we’ll do the following things for you…

* Reconcile your bank account
* Generate financial statements
* Input accounting transactions into your general ledger
* Provide expert consultation
* Prepare Sales and Use Tax Returns

These tasks form the solid foundation of your business accounting system. You can customize the package of services you receive by adding payroll, tax planning, tax preparation, or any of our other services.

Bank Reconciliation
Reconciling your business bank account each month allows us to keep your bank account, accounting, and taxes up-to-date.

Having us reconcile your bank account each month allows you to…

* Identify lost checks, lost deposits and unauthorized wire transactions.
* Detect and prevent excess/unjustified bank charges and ensures transactions are posted correctly by your bank.
* Detect and prevent embezzlement of funds from within your company.
* Know how your business is doing. You can’t know unless all accounts are reconciled and properly accounted for on your financial statements.
* Manage your cash more effectively. Proper management of funds not only saves money, it makes money for you.
* Protect yourself. By timely reconciling and promptly objecting to your bank about any unauthorized, fraudulent or forged checks presented to your bank and paid by that bank, you can relieve your agency of responsibility for the shortfall and transfer the risk to the bank. This reason to reconcile alone should be enough. Crime exists.
* Sleep Better. You will sleep more peacefully at night knowing your bank accounts are reconciled, in balance and that all escrow funds, accounts, checks and disbursed funds are properly accounted for.

Financial Statements

Income Statement
An income statement, otherwise known as a profit and loss statement, basically adds an itemized list of all your revenues and subtracts an itemized list of all your expenses to come up with a profit or loss for the period.

An income statement allows you to…

* Track revenues and expenses so that you can determine the operating performance of your business.
* Determine what areas of your business are over-budget or under-budget.
*
Identify specific items that are causing unexpected expenditures. Like phone, fax, mail, or supply expenses.
*
Track dramatic increases in product returns or cost of goods sold as a percentage of sales.
* Determine your income tax liability.

Balance Sheet
A balance sheet gives you a snapshot of your business’ financial condition at a specific moment in time.

A balance sheet helps you…

* Quickly get a handle on the financial strength and capabilities of your business.
* Identify and analyze trends, particularly in the area of receivables and payables. For example, if your receivables cycle is lengthening, maybe you can collect your receivables more aggressively.
* Determine if your business is in a position to expand.
* Determine if your business can easily handle the normal financial ebbs and flows of revenues and expenses.
* Determine if you need to take immediate steps to bolster cash reserves.
* Determine if your business has been slowing down payable to forestall an inevitable cash shortage.

Balance sheets, along with income statements, are the most basic elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant you.

Maintaining a Clean General Ledger
The general ledger is the core of your company’s financial records. These records constitute the central “books” of your system. Since every transaction flows through the general ledger, a problem with your general ledger throws off all your books.

Having SK Tax Associates review your general ledger system each month allows us to hunt down any discrepancies such as double billings or any unrecorded payments. Then we’ll fix the discrepancies so your books are always accurate and kept in tip top shape.

Schaumburg bookkeeper type and e-mail you a monthly financial statements. A bookkeeper summarizes details and transfers all data to a general ledger with the help of computer and calculator.

A bookkeeper verifies, allocates and posts details of business transactions to subsidiary accounts in journals or computer files from documents. Documents such as sales slips, invoices, receipts, check stubs, and computer printouts. Bookkeeper may compile reports towards statistics, such as cash receipts, expenditures, accounts payable and receivable, profit and loss, and other items pertinent to operation of business.

For more information please visit http://schaumburgcpa.info  and contact us anytime for any query.

Manendra Kothari, CPASchaumburg CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001   E-mail: MKothari@SKTaxes.com
www.SKTaxes.com

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Are you having problems with the IRS!

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We’re here to help you resolve your tax problems and put an end to the misery that the IRS can put you through. We pride ourselves on being very efficient, affordable, and of course, extremely discrete. The IRS problems will not just go away by themselves; they just keep getting worse with penalties and interest being added each day.

Put us on your side while dealing with IRS, State or Local government agencies. Time is very important while dealing with IRS. If you delay in responding IRS, you will loose most of your rights as a taxpayer. If you receive an IRS letter, call immediately and see how we can protect your case. We can help you at each stage from regular notice to filing offer in compromise, installment agreement or tax court petition, if required.

If you owe the IRS, you have a very serious problem. It may take the IRS several years to catch up to you, but they will be relentless in collecting all the money that is owed, plus interest.

Please take a look through our complete IRS problem resolution services by contacting one of our tax experts.

IRS Problems:

* Have you received an IRS audit notification?
* Haven’t filed your tax returns for years?
* Do you owe Back Taxes?
* Do you have Payroll Tax Problems?
* Has the IRS placed tax liens on your home?
* Is the IRS threatening to seize your bank account and take your money out of the bank.
* Is the IRS threatening to take your paycheck, 401(k), and other retirement accounts?
* Is the IRS threatening to seize your personal property?

IRS Solutions

* Owe the IRS a lot of money? – Settle for pennies on the dollar! Ask us about Offers In Compromise.
* Need more time to pay. Ask us about Payment Plan.
* Like to get out from under your tax burden completely. Ask about Bankruptcy.
* Like to get out of a tax debt caused by misdeeds committed by your spouse? Ask us about Innocent Spouse Relief.
* Like to see what the IRS has on you? Ask us..Ask us.

So what to do? How to proceed?

For more information please visit http://schaumburgcpa.info  and contact us anytime for any query.

Manendra Kothari, CPASchaumburg CPA
SK Tax Associates, CPAs
Schaumburg: 127 S. Roselle Rd Ste # 200 Schaumburg, IL 60193
Ph: 847.524.0001    MKothari@SKTaxes.com
www.SKTaxes.com

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