Small Business Tax Calendar

The IRS recently released its annual Tax Calendar for Small Businesses and Self-Employed Taxpayers. The calendar includes information on general business taxes, electronic filing and paying options, retirement plans, business publications and forms, and common tax filing dates. Welcome to 2010!

That time of year!

With tax time upon us, the IRS has again reminded taxpayers to use caution in choosing a tax preparer in its January 3 article titled How to Choose a Tax Return Preparer and Avoid Preparer Fraud. The IRS explains:

While most preparers provide honest service to their clients, the IRS urges taxpayers to be careful when choosing a preparer –– as careful as they would be choosing a doctor or lawyer. Even if someone else prepares a tax return, the taxpayer is ultimately responsible for all the information on the return. For that reason, taxpayers should never sign a blank tax form. And they should review the return before signing it and ask questions on entries they don't understand.

The article goes on to provide the following specific suggestions when choosing a preparer:

• Be cautious of tax preparers who claim they can obtain larger refunds than other preparers.
• Avoid preparers who base their fee on a percentage of the refund.Use a reputable tax professional who signs the tax return and provides a copy.
• Consider whether the individual or firm will be around to answer questions about the preparation of the tax return months, or even years, after the return has been filed.
• Check the person’s credentials. Only attorneys, certified public accountants (CPAs) and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collection and appeals. Other return preparers may only represent taxpayers for audits of returns they actually prepared.
• Find out if the preparer is affiliated with a professional organization that provides its members with continuing education and resources and holds them to a code of ethics.

The California Franchise Tax Board often issues similar advice. As we've said before, regardless of whether you choose ThomasYork as your preparer, we encourage you to follow this counsel!

Happy Holidays

From everyone at ThomasYork, we would like to wish you a Happy Holiday Season.

Please note that our office will be closed from Noon on Thursday, December 24th, until Friday, January 1, 2010. We will resume our normal business hours on Monday, January 4, 2010.

It's December 10th, Have You Paid Your Property Taxes

As a gentle reminder most property tax payments are due today. Make sure you have paid your 1st installment. Payments must be postmarked today or you will be assessed a late penalty.

2009 Best Accounting Firms to Work For

During the summer everyone at TY participated in the 2009 Best Accounting Firms to Work For survey. We are proud to announce that we ranked #14 out of 20 in the Small Firm category (15-24 employees). Accounting Today’s Top 100 Best Accounting Firms to Work for rankings are available online at www.AccountingToday.com. The rankings will also be published in the December 14th issue of Accounting Today. Companies from across the country entered the two-part survey process to determine the Best Accounting Firms to Work for. The first part consisted of evaluating each nominated company's workplace policies, practices, philosophy, systems and demographics. The second part consisted of an employee survey to measure the employee experience. The combined scores determined the top companies and the final ranking. Best Companies Group managed the overall registration, survey and analysis process and determined the final rankings.

IRS Announces 2010 Standard Mileage Rates

The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 50 cents per mile for business miles driven
• 16.5 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago. A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Revenue Procedure 2009-54 contains additional details regarding the standard mileage rates.