IRS E-file & Direct Pay Systems Down on Tax Day

The IRS E-file and Direct Pay systems are both down today, April 17th, Tax Day. It is an unhappy (and slightly grim) reminder to accountants to establish a policy — which I have held for the past 10 years or so — requiring all clients to submit signed e-file signature authorization forms by 6 pm on the day immediately prior to Tax Day. Personally, I insist on submitting all e-files before I go to bed that night (let’s be honest: by 2 or 3 am). I encourage you to do the same… next year!

In the meantime, this advice is being offered by CPA Practice Advisor. They will be posting updates throughout the day.

The credit card payment systems available through the IRS website appear to be functioning, however there is a fee associated with making those payments.
If the website stays down, taxpayers are still responsible for making payment by midnight tonight. An obvious alternative is to head to the Post Office.
The IRS has asked that efilers continue to proceed with their efiling, even if returns aren’t being accepted in short order.
Another bit of advice from my tax software company — usually we send state returns “linked” to the federal return so that if the IRS return is rejected, we have an opportunity to fix the underlying problem before the state return is submitted. However, in today’s case, all state returns should be sent “unlinked” so that they do not get caught up in the IRS system issues.

Source: IRS Direct Pay is Down, Efile System also Down | CPA Practice Advisor

Accountable Plan Webinar May 9

The NSAC Cooperative Learning Network is offering an upcoming webinar that sounds like it would be useful to quite a few accountants, on the topic of Accountable Plans:

The IRS has been finding that many entities are either not familiar with the Accountable Plan rules, or are not following them. As a result the government has been applying more scrutiny to this issue and assessing large amounts of additional taxes and penalties. In this one hour session we will understand how Accountable (and Non‐Accountable) Plans affect reimbursements, allowances and advances ‐ and how to create and operate a respected Accountable Plan.

Presenters are John Denison (Senior Director of Tax at Adams, Jenkins & Cheatham, PC) and Larry Ford (Director of the Tax Resolution Team at Adams, Jenkins and Cheatham, CPAs).

The one-hour seminar is offered at 11:00 AM ET / 10:00 AM CT / 09:00 AM MT / 08:00 AM PT. The session is free to NSAC members and $56 for non-members.

Source: NSAC Cooperative Learning Network – Accountable Plans

SBA Small Business Week Virtual Conference

The U.S. Small Business Administration and SCORE Association will host a free, 3-Day Virtual Conference during National Small Business Week. The conference will take place Tuesday, May 1 – Thursday, May 3 from 12:30 pm ET-6:30 pm ET daily. Registration is free to the public.

Participate in this free, online conference to watch 12 educational webinars, get free business advice from mentors, pick up free information and resources from sponsors and network with fellow business owners.

The webinars include:

  • Hug Your Haters: How to Embrace Complaints & Keep Your Customers
  • Simple Steps to Choosing the Right Financing
  • Addressing Discrimination and Harassment in the Workplace
  • Sharing Your Story Through Video
  • Pop & Play: How Opening a Pop-Up Shop Can Help Launch Your Retail Brand
  • How Changing Consumer Behavior Impacts Your Business
  • How to Get New and Repeat Business On Autopilot with Email Marketing
  • Cybersecure Your Small Business
  • Managing Your Finances in the Cloud
  • Creating and Sustaining a Strong Social Presence
  • The U.S. Economic Outlook and Its Impact on Small Businesses
  • Grow Your Business in 2018

Source: National Small Business Week Virtual Conference

Virtual Currency Transactions are Reportable and Taxable

The IRS sent out a notice today reminding taxpayers and tax professionals that income from virtual currency transactions is reportable on income tax returns. From the IRS:

Virtual currency transactions are taxable by law — just like transactions in any other property. The IRS has issued guidance in IRS Notice 2014-21 that addresses transactions in virtual currency, also known as digital currency.

The notice provides that virtual currency is treated as property for U.S. federal tax purposes. General tax principles that apply to property transactions apply to transactions using virtual currency. Taxpayers who do not properly report the income tax consequences of virtual currency transactions can be audited for those transactions and, when appropriate, can be liable for penalties and interest.

Speeding Up Access to QBO Reports in Excel

If you’re a QuickBooks Online user — be it accountant or business-owner or bookkeeper — then you know that when you download a QBO report to Excel using Chrome or Firefox, the resulting file name appears at the bottom of the browser window. Usually the next step is to click the file name to open the report in Excel.

However, today I learned a great new trick from David Ringstrom, contributor to the AccountEx Report and Excel guru.

Going forward, Chrome and Firefox can open Excel files automatically for you. The next time you download a QBO report to Excel, once it’s sitting at the bottom of your browser window, just click the arrow adjacent to the file name and select “Always Open Files of this Type”. Magic.

As he notes, however:

Unfortunately, this ability to open files automatically after download is not available in the Edge or Safari browsers. You’ll also have to open reports manually if you use the QuickBooks Online desktop app. The app will prompt you to choose a name for your report, but you’ll then need to manually open the report in Excel by navigating to the folder where you saved the workbook.

He also has some nice tips for unraveling automatic downloads (which I don’t personally allow — I have my system set up to prompt me each time a report is downloaded so that I can rename it and save it where I need it). For those who defer to most browsers’ default “downloads” folder, this later section of the article is particularly handy.

Give it a try! Read the entire article here:

Speeding Up Access to QuickBooks Online Reports – Accountex Report

Pass-through Entities and Sec 199A

Accounting Today recently wrote up a good article on the challenges of the new Sec 199A — popularly known as the “20% Pass-Through Deduction”. I encourage giving it a read. I think the best takeaway for accountants and others running personal service companies comes from the last paragraph:

“Most accountants that are in a flow-through entity should probably continue that way,” Wheelwright said. “I don’t know any accounting professionals that leave money in the business, and if you’re going to take money out, it doesn’t make sense to be a C corporation,” he said. “Where being a C corporation does make sense is if you’re going to reinvest a large portion of the profits back into the business. Because of the double tax related to C corporations [the corporate tax plus the tax on dividends], most pass-throughs will want to continue to be pass-through entities.”

-Tom Wheelwright, Founder and CEO of ProVision

In a related article, Accounting Today reports:

“The National Society of Accountants wants the Internal Revenue Service to provide a six-month extension for businesses to make an election to be treated as S corporations for this year, arguing the current deadline of March 15 is just not enough time to make a decision given the uncertainty surrounding the new tax law.”

“By allowing a six month extension to Sept. 15, 2018, for a corporation to make an election to be treated as an S corporation for the current calendar year would afford time for all affected parties, as well as their tax adviser, to read and understand any such regulations and how they may impact their tax liabilities.”

-John Ams, NSA Executive Director

Shop Small — Shop Our Clients!

I’m very excited to announce that I’ve created a page on The Dancing Accountant website linking to some of my clients so that you can find them and become a patron. I couldn’t be prouder of their accomplishments and I wanted to share my enthusiasm with blog readers… and maybe inspire you to share yours as well.

If you follow my blog, you already know that my work isn’t just a job. I honestly feel it’s a calling — a mission. I try to keep my prices low for the industry, offer payment plans, remain accessible to clients at all times, and offer services outside-the-box… stretching my knowledge and abilities as far as I can, taking approximately three times the required continuing education each year, in wide-ranging topics that affect my clients.

Why? Why bother? As I’m reminded regularly by colleagues, salespeople, networking contacts and self-proclaimed “coaches”, I could make so much more money working at a large CPA firm. Or: “Any continuing ed beyond the requirement is a waste of non-billable time.” Or: “You have a waiting list? Well, that’s proof that you should raise prices.” Or: “You should outsource your [fill-in-the-blank] to India; you’re stifling your growth otherwise.” (Note: these are all actual quotes I have been told more than once.)

I struggled for years asking myself why I had such emotional resistance to these criticisms. Aren’t I an astute business-person? Then why am I being insulted as being naive or idealistic or non-business-minded?

The answer is easy — at least now (it took years of soul-searching). I love working with small businesses, and I don’t want to price myself out of their ability to use my services. Part of that is a personal mission and part is selfish; I really want to support the small business economy, especially in my own neighborhood, where daily I see my clients being priced out in favor of big chains. These folks make our neighborhoods quirky, vibrant, and engaging… then people want to shop/dine there… then rents go up… then chains replace them. It’s so painful. I don’t want to be a part of that cycle.

And I want to offer them the services that they need — not just the ones on a pre-determined list of CPA offerings. I want to be able to answer their questions about running a business, not just keeping the books clean and paying taxes. I want my work to be personally rewarding. I love shopping at my clients’ stores, engaging their services, and eating at their restaurants. I love living in a place like Cheers — where everybody knows your name.

Shopping small and shopping local — you’re hearing more about it these days, as large chains and online retailers crush once-vibrant communities. We don’t have to be a part of that. An article in Forbes summed up some great reasons for supporting small businesses.

So: please Shop Our Clients! Shop yours. Go find a small business in your neighborhood you’ve never been in, and pay them a visit today. If you enjoy ordering online, try to choose websites of independently-owned businesses, or platforms like etsy that provide small businesses a sales venue. It’s a win-win-win.

(Note: if you are a client of mine and would like to be listed on The Dancing Accountant’s Shop Our Clients page, please comment below or contact me directly!)

Free Financial/Tax/Legal Resources for Chicago-area Residents

Recently I came across two sets of resources for Chicago-area residents that seem worth sharing.

The Center for Economic Progress is offering free tax preparation and assistance to individuals with incomes less than $30,000 and families with incomes less than $55,000. Complete site locations and hours are available as a downloadable pdf on their site.

The Circuit Court of Cook County has a free seminar series geared toward the elderly, though applicable and open to all. Upcoming topics include: powers of attorney, reverse mortgages, foreclosures, long-term care, funeral pre-planning, property tax savings, evictions, financial literacy, social security, bankruptcy, elder abuse and exploitation, and more.

Add to these the extensive list of workshops that the City of Chicago offers for small business owners, and I’d say we’ve got a pretty rich set of options for free financial, legal and tax assistance in our city of Big Shoulders.

IRS Releases Updated Form W-4 & Withholding Calculator

The woman who inspired me to become a CPA, Theresa Briggs, used to tell a great story about the day, early each tax season, when the CCH Tax Guides arrived at the office, and an extremely enthusiastic associate of hers would skip down the halls singing, “the new tax guides are here; the new tax guides are here!”

Well, that’s a little bit how I felt today when I read the news that the new W-4 Forms have been released in the wake of the major recent changes to our tax law. Get yours today!

Source: Updated Withholding Calculator, Form W-4 Released; Calculator Helps Taxpayers Review Withholding Following New Tax Law | Internal Revenue Service

People would rather have the same song stuck in their heads for a year than pay taxes

It’s been a tough day. Then I read this article from Accounting Today and thought… well, look at what I’m up against as a tax preparer — no wonder I have a tough time of it on occasion!

As opposed to paying their taxes, the survey found that 14 percent of men and 24 percent of women would prefer to have the same song stuck in their head for a year, 14 percent of men and 11 percent would eat their least favorite food for every meal, and 10 percent of men and 9 percent of women would have an embarrassing video of themselves go viral, among other unsavory options.

Seemed only appropriate to share the levity with my readers. Enjoy.

Accounting Services for Small Businesses