News

NEW THIS YEAR - HEALTH INSURANCE

1) If you have health insurance through your employer for a full year for all members of your family, you will just need to check “YES” on Page 1 of the PDF “Personal Tax Info” checklist on our website.

2) All insurance through THE MARKETPLACE (also called THE EXCHANGE) or through employers or private pay, will receive one of the following:

  • 1095A
  • 1095B
  • 1095C

    • Bring this form to your tax appointment. (We need this form just like we need your W2.

    3) For the 2014 tax year, anyone who received a 1095A and DIDN’T bring it in for your 2014 tax return, you will have to amend or the IRS will make you pay back the advance premium paid directly to your insurance company.

    Same Sex Marriage:
    Same sex marriages in Minnesota and all states will be recognized the same as other marriages for all federal and Minnesota tax purposes.

    1099 & CONSTRUCTION WORKERS:

    REMINDER! IF you paid anyone over $600.00 total during the year, you must give them a 1099 by January 31. You should have them fill out and sign a W-9 prior to them contracting to doing any work for you.

    NEW! - NOW: Corporations and LLC's also need 1099's (starting 2012).

    A Supreme Court case involving construction sub-contractors has determined that sub-contractors are employees if the contractor supplied the materials.

    2008 through 2016 Mileage:

    See our F.A.Q. Page.

    FIRST-TIME HOME BUYERS:
    (anyone who hasn't owned a home for the previous two years) If you purchased a home in 2008, you can get up to $7,500.00 up-front credit, but the credit will be repaid over the next 15 years of taxes. Please bring in your HUD closing papers, no matter when you purchased, sold or refinanced this year.

    REMEMBER - Let us know if your purchase was 2008.

    REGARDING AUDITS:
    Lots of new auditors have been trained in part, for several years. There have been a lot of audits from both federal and state; and these will continue into the future(the government is broke and looking for money).

    Things to watch for:

    1. Pay use-tax on out-of-state purchases.
    2. KEEP RECEIPTS.
    3. Keep bank statements.
    4. S-Corp Officers must have reasonable wages for the year, or you will have a high chance of being audited. For most purposes, "reasonable wages" would be $26,000 - $30,000.
    5. Keep good track of business miles (We also need total miles for the year. It's a good idea to have an oil change with an odometer reading toward the beginning and end of the year in order to calculate total miles.)
    6. Keep your appointment calendars.
    7. Make sure you’ve paid sales and use tax on all of your equipment purchases and out of state purchases.

    IF YOU RECEIVE AN AUDIT LETTER, CALL US AND SIGN A POWER OF ATTORNEY, AND WE CAN DO THE AUDIT FOR YOU. "Don't talk to IRS yourself, and never give them more than what they ask for." (Now where did I hear that before?) Common problems the IRS says are on Schedule C's are: mileage, other expenses, and losses from year to year.

    SALES TAX:
    In January 2006, MN started to require all payments for returns to be paid electronically online. Call us at (612) 721-2026 if you need help or don't have on-line access. Don't forget USE TAX.

    Click here to calculate the amount of sales and/or use tax you owe.

    Did you know?
    1. You should charge sales tax on shipping charges that are added to the bill.
    2. It's not good enough to just get a person's resale tax # - you need them to completely fill out and sign a ST-3 form if they don't pay sales tax.
    3. You should turn in use tax on items you buy out of state and the supplier never charged you sales tax.

    A common problem that sales tax audits are finding is that a lot of people are not paying use tax. If you buy a product that you did not pay sales tax on and you use it, then you owe sales tax. This commonly happens when you order something from another state, order online or pay with a credit card and it's shipped to you. Check your invoices and receipts, if you didn't pay sales tax and it's an item you use, you owe use tax. Use tax are filed and paid at the same time as sales tax. If you have any questions, feel free to call our office.

    IF YOU HAVE EMPLOYEES, READ THIS:

    The Federal Government has switched everyone over to a new system with the 941 deposits. Banks can no longer except the 941 or 940 tax. These must be electronically filed. Please call LeAnn for help to set up this new system.

    The MN UI Fund is now charging a $250.00 per month penalty for late filed UI returns, even if the returns are zero. The new commissioner said they would not abate these penalties, so it's very important to file on time. Also, some people have received a notice from the Federal government saying that they can file and pay 941 yearly (Form 944); please note this does NOT mean you can pay and file UI returns yearly, as doing so would result in expensive penalties.