Harley's Blog Page
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02/3/2010 W-2 NOTICE FOR SIM CLIENTS: SIM began delivering W-2s to our office on January 29. They must have your annual authorization to provide SIM information to us. Please make sure you have given that authorization so we can begin your tax return without delay. THIS IS ESPECIALLY IMPORTANT FOR FAMILIES APPLYING FOR COLLEGE FINANCIAL AID.
02/3/2010 PASSWORD SECURITY CHANGES: Within the past week (about January 25) we received the following information from Accountants' World, the software company we use for Tax Organizer and CyberCabinet. If you are a client of ours who uses either of these applications, note that you now must use the temporary password assigned and e-mailed to you by Accountant's World. From our office, we can reset your password to a new temporary one unknown to us. You will be automatically be sent an email with the new password. Following is the text of Accountant's World message:
"We know that you, the accountant, are extremely concerned about the confidentiality of your data on the Internet. As a result of a security audit, our prior login/password scheme was identified as the weakest link in our web security system. We did not want any possibility that the data you trust with us could be compromised by waiting even another day to implement a new complex password process – the risk was too great in our eyes. In addition, over the course of this year we will be taking additional steps to ensure your data in our cloud environment meets SAS70 certification (the highest cloud computing certification for the Net). We apologize for any inconvenience. Thank you for taking steps to ensure your data is that much secure.
"To create a strong password, use a combination of letters and numbers, minimum 7 characters. If you already use a password in this format, no further action is needed. It is a good practice to follow across all of your web-based accounts. Also for best security, change your password every three months or so."
1/12/2010 WINDOWS EXPLORER BEST WAY TO ACCESS "TAX ORGANIZER" AND "CYBERCABINET". If you are among our clients with access to these two applications, please note the suggestion about MAC from our software provider: "You can install Windows on the MAC using a program on the MAC called "bootcamp". This allows you to dual boot the computer into the operating system of your choice. So, in theory, when you start up the Macintosh, you can either start it in the default operating system (MAC OSX), or you can choose to start in Windows."
1/03/2010 2009 TAX FORMS: IMPORTANT MAILING DATES FOR BROKERAGE ACCOUNTS:
Many of the brokerage firms like Merrill Lynch, Schwab, etc will be mailing Forms 1099 in two waves. The first wave will be mailed by the end of January. The second wave will follow in mid-February after issuer tax information is available. These types of investments will most likely include:
· K-1s from trust accounts
· Mutual funds
· Real Estate Investment Trusts (REITs)
· Certain foreign and domestic equities
· Original Issue Discounts (OIDs)
12/14/09 ESTIMATED INCOME TAX PAYMENTS: If you must make estimated income tax payments, the fourth quarter installment is due January 15, 2010. To avoid late payment penalties, individuals are required to pay in the lesser of: (1) 100% of the prior year’s taxes (line 63 on your 2008 Form 1040), or (2) 90% of the current year’s taxes. If your Adjusted Gross Income in 2008 was greater than $150,000 ($75,000 if married filing separately), then you must pay in 110% of your 2008 taxes rather than 100%.
If you itemize your deductions, consider making your state estimated tax payment on or before December 31, 2009, even though it is not due until January 15, 2009. You are allowed to deduct your state tax payments on your federal return in the year you make your payment.
Keep in mind that estimated payments must be made for both income taxes and social security taxes. If you have non-wage income from services you have provided as a contractor, a personal business, independent sales agent, clergy member, etc., social security taxes are usually not withheld. These must be paid by including the tax of 14.13% with other estimated payments for income tax.
12/13/2009 Pigeon Forge, TN. Last week Mary and I did a three-day weekend around Pigeon Forge. On Saturday, we had a light blanket of snow. We took the mountain route between Pigeon Forge and Gatlinburg, and saw lovely scenes of God's handiwork. Here are two photos for you to enjoy!
UPLOAD PENDING
09/11/2009 If you or your child is attending the first four years of college, you will want to go to the Newsletters page and read the article about expanded education credits. It could mean UP TO $2,500 LESS TAX OR A REFUND for tuition and textbook costs!
04/16/09 The 15th is now behind us. Many of you told us you were praying for us, and we greatly appreciated those prayers! We believe we accomplished what was necessary by April 15th, but we have much work to complete between now and June 15. What follows is a description of our office activity late in the tax season.
In the weeks before the 15th, we first “work” the files for “Out-of-towners” that have the W-2s and the Tax Organizer, Part II. Without knowing “where in the world” the taxpayer is located, it’s not possible to do an accurate return. Next, as mail, emails and faxes arrive, we update the files as completely as we can.
The 10 days preceeding the 15th is “Crunch time”. By then, we are receiving 15 to 20 emails a day, last minute documents are coming in, and we are transferring files from “processing” to “verification and sending”. We constantly assess whether we have all information and whether the taxpayer will have a balance due that should be paid by the 15th.
Not all emails and phone calls receive the individual attention we’d like during these days, and we regret that. Our first goal is to inform those who must pay by early April, or just as soon as we can. Nearly all penalties are calculated on the unpaid balance at April 15, making it important to have enough estimated payments in the IRS or state account by then.
About April 8th each year, our emphasis changes from completing returns to having them adequately prepared to apply for an extension. From then on, we are adding information to files, creating extension documentation and continuing to complete some files. The status of a file can change within hours, sometimes resulting in two or more emails seemingly in conflict with each other. We apologize for the confusion from those instances and try to avoid them as much as possible.
By 11:45 pm, we had e-filed or mailed extension forms for all outstanding returns. I trust we were able to send timely notice to those with payments due. Those who haven’t received completed return or extension information don’t have a payment due to the IRS or state. These have a 60 day automatic extension to June 15 and make up the majority of the returns we will complete between now and then.
We look forward to your feedback on how we handled your return this year. We want to improve our services and appreciate your help to alert us on our weak points. If everything went great, let us know, too. Those notes provide encouragement and motivation to our staff.
01/04/09 NOTE FOR FAFSA PREPARERS: This is quick note to suggest you may want to check out the website especially for the counselors who are advising students here in the U.S. The site is www.fsa4counselors.ed.gov.
01/04/09 During the last quarter of 2008, there have been many changes for Personal Management Services/Liberty Tax Service and for myself. Because some of these will be of interest to our clients in Charlotte and elsewhere, I’ll list the things that come to mind:
- The loss of Becky Easter to a fatal stroke on October 31 has affected all of us, and we will miss her for a long time.
- December 15th was my last day as an employee at SIM (Serving in Mission). Though my hours per week were few, it kept me in close touch with the goings-on there. My SIM e-mail address is no longer in service and quick access to SIM missionary information will be less quick! Don Harling and Alethea Vissers at SIM will continue to provide information on W-2s, 1099s, trust information, etc. I will visit there about once a week during the tax season.
- Effective January 1st, my business is now registered with NC as an LLC (Limited Liability Company) using the name of Personal Management Services, LLC, with a dba of Liberty Tax Service. This will have virtually no effect on your dealings with us.
- A second Liberty office was opened late in 2008. The new office will be “primary” and the Johnston Rd office secondary. Check the Contact Page on this website for more details. “Out-of-town” tax returns will likely be completed from the main office. E-mail addresses remain the same, but phone numbers for the main office have changed. Johnston Rd phone numbers remain the same.
- With Google Analytics it is possible to have a better understanding about the use and value of this website. (For example, a day or two ago, someone from Nairobi, Kenya spent 13 minutes on the website.) On the down side, it shows how little we can depend on a public site to get information to our general clientele.
Please send any comments. They can help us improve and may stimulate a helpful blog for another day.
11/04/08 To all of you who corresponded with Becky during the past few years, you will understand our grief. On October 15 Becky suffered a severe stroke, and on October 31 passed on to be with the Lord.
In a number of letters to our overseas clients, she mentioned her desire to be an overseas missionary. She also expressed joy to be able to serve many of you who work in that capacity.
Two daughters in their twenties had close home ties with their mother. Please pray for them to remain strong during their time of grieving, and pray for their financial well being as they strive to maintain their home.
07/09/08 What does a tax office do after the main season and before the next deadline? For the most part, it’s a time for more training and developing new business to spread the overhead costs. Spreading overhead makes it possible to keep future prices in line.
This week I’m in Roswell, GA (Atlanta) learning more about Ministers returns and discovering ways to help Truck Drivers take the best advantage of the special CONUS per diem rules to lower their tax bills.
Summer is also the time to answer your questions about last year’s tax return and about ways to reduce your taxes for 2008. We look forward to receiving your queries and comments. Among our permanent staff of Becky, Linda and me, one of us will get back to you ASAP. Our personal addresses at the office are becky.libtax @hotmail.com, linda.libtax@hotmail.com and harley.libtax@hotmail.com. The BEST address, though, is usually the one that reaches all three of us – libtax01@hotmail.com. END
04/02/08 This morning I’m catching up on some outstanding e-mails from the past several days. I want to share one reply, because you may need to know as well.
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