Abraham and Company, Certified Public Accountants - Notes

Notes are a combination of tax and business related items of interest.

Jun 17, 2009 -- Non-Profit Sales Not Subject to Sales Tax

Non-profit organizations are normally exempt from state income tax. If you are making sales to non-profits for items that would otherwise be subject to sales tax, you should not be paying sales tax on those items purchased for resale. The paperwork involved in such a transaction is not difficult to obtain. You should initially obtain an exemption certificate from your non-profit customer. You should then give your vendor a resale certificate to stop him from charging you tax. Resale certificate can be downloaded from the RI Division of Taxation website. They are blank; you are responsible for filing them out. Once the sale is complete, make sure you keep a copy of the invoice, the non-profits exemption certificate, and the resale certificate for at least six years.

Jun 11, 2009 -- 2009 Home Buyer Tax Credit
Check out our tax tips section for the latest on the 2009 first-time home buyer tax credit

Jul 19, 2007 -- Accounting Software Packages

Many of our clients are beginning to or currently use accounting software packages such as Quickbooks, Peachtree, Quicken, etc. Some of you may be misinformed about the computer requirements. Your basic home or office PC has the sufficient requirements for operating the packages. There are two crucial steps you must take to avoid any disaster.

-Back-up your files frequently. These packages prompt you to back-up your files periodically but you can do it at any time. You can back-up to your PC, removable disk (USB drive, external hard drive, etc.), or an online back-up database provided to you by the software package for a small fee.

-Have your PC plugged into a battery back-up supply. You can purchase these uninterruptible power supplies almost anywhere for less than $100. These provide power for the PC during a power outage and allow you a short period of time to save and back-up any information so that nothing is lost.

Jul 17, 2008 -- ABRAHAM AND COMPANY IS GOING GREEN!

Abraham and Company has gone green! We have made many changes in the office that has dramatically reduced our waste and carbon emissions. All of our napkins, paper towels, and bathroom paper goods are all made from recycled paper. All waste paper and shredded paper is recycled along with glass & plastic bottles and aluminum cans. Nothing that is recyclable is thrown away! All lights in every office are shut off when not occupied and electronics are shut off or unplugged when not in use. All necessary documents needed for filing are not copied, they are all scanned into a database saving about 10-15 cases of paper. We are continuing to make changes and hope to go completely paperless before tax season.

Jul 16, 2007 -- Minimum Wage Rates

On May 25, 2007 President Bush signed a bill that, among other things, increased the federal minimum wage in three steps: to $5.85 per hour effective July 24, 2007; to $6.55 per hour effective July 24, 2008; and to $7.25 per hour effective July 24, 2009. However, many state have their own minimum wage laws and they are usually higher than the federal minimum.

The following are the minimum wage requirements in the three states that comprise Southern New England:

Connecticut $ 7.65/hour
Massachusetts $ 7.50/hour
Rhode Island $ 7.40/hour

Above rates were in effect as of the date of this posting, July 16, 2007.

Mar 22, 2008 -- Economic Stimulus Package Reaches Taxpayers in May
This May, over 130 million households will receive a check in the mail from the government, in hopes to improve the United States’ flailing economic state. How much will you get? For more information, visit the Economic Stimulus Payments Information Center, at: http://www.irs.gov/irs/article/0,,id=177937,00.html#Basic