Abraham and Company, Certified Public Accountants - Notes

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

Mar 26, 2011 -- Follow us on Facebook and Twitter!
Abraham and Company is hitting the social network in a big way! Look for us on Facebook and Twitter. Simply "Like" our Facebook page - Abraham and Company - and get updates on the company, as well as tax tips for filing this April. Follow us on Twitter: AbrahamandCo for the latest tax tweets!

Mar 26, 2011 -- Taxes - There's an App forThat!
The IRS has launched its smart phone application, IRS2Go. It allows taxpayers to interact with the IRS using a mobile device. Get a refund status...check for refund updates...this app has it all!

Jan 22, 2011 -- Tax Deadline Extended!
Good news, taxpayers - the last day to file taxes has been extended until April 18. That means three more days to get those tax forms in the mail!

Jan 22, 2011 -- Changes for Rental Property Owners

The recently enacted Small Business Jobs Act of 2010 requires rental property owners to file information returns with the IRS and service providers reporting payments of $600 or more during the year for rental property expenses.

Exceptions are provided for individuals renting their principal residences (including active members of the military), taxpayers whose rental income does not exceed an IRS-determined minimal amont, and for those for whom the reporting requirement would create a hardship (under IRS regs).

Jan 22, 2011 -- Increased Information-Return Penalties

For information returns required to be filed after December 31, 2010, the penalties in the tax code for failure to timely file information returns with the IRS will be increased. For example, the first-tier penalty will be increased from $15 to $30, and the calendar year maximum will be increased from $75,000 to $250,000. For small filers, the calendar year maximum will be increased from $25,000 to $75,000 for the first-tier penalty. The minimum penalty for each failure due to intentional disregard will be increased from $100 to $250. The penalties for failure to file information returns to payees will be similarly increased.

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 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.

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

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 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.