Happy Holidays! - Reflections & Resolutions...

Happy Holidays from eeCPA!

Tis the season of giving & sharing! In the spirit of this season, eeCPA has postponed all December 1^st billings to the New Year! That is right, we did not send out our 12/1 invoices, and you will not find any new invoices from eeCPA in your “Inbox” until the New Year!

With the Fiscal Cliff looming and year-end plans in the mix, it may be that you need to reach us during this last week of the year. If you have an urgent question or matter to discuss, please contact Elizabeth on her cell at 480.232.4470. I may be out of the office but I will be in town, and I look forward to answering your questions.

 

Reflections of 2012

eeCPA is growing! With 6 of us heading into the New Year 2012, we expect to begin 2013 with 11 team members. That is right – we have just about doubled the size of our team! Thank you for your referrals!

·        We relocated our offices in July 2012 to accommodate our growing staff! We are now located at the Southeast Corner of Scottsdale Road & Princess Blvd, just South of the 101 Loop & N Scottsdale Road exit.

 

·        Scheduling has become more complex. Up until this year, we have been able to accommodate last minute “stop-by’s”, same day or next day appointments. As the practice has grown however, we find that planning ahead is very important to the continued success of this firm. We want to honor the founder’s commitment: “We will deliver attentive & timely service, with expertise.”

Please help us help you!

            Although we welcome “stop by” visits to deliver information, pick up documents, etc., we cannot provide consultancy on a “stop by”. If you are seeking expertise or consultancy on an issue, please make an appointment in advance.

            Urgent questions will come up, and you may need an answer now! In this case, please contact our office, and if one of the eeCPA team members cannot assist you or you really need to speak to Elizabeth, then please note that your question is “critical”. We will make every effort to accommodate you! If the issue is not “critical”, then please plan ahead!

Look for many new improvements coming soon in Q1 2013!

Here is what we are doing to improve our project turnaround time in the New Year:

ü  Scheduling meetings & teleconferences to improve communications

ü  Hiring & training new team members

ü  Defining & documenting our systems

ü  Acquiring, developing & testing new software & technology platforms to offer improved communication and faster access for our clients.

2013 marks the 10^th year of service for eeCPA!  

Although growth has brought change, our mission has remained consistent:

“We will provide attentive & timely service, with expertise.”

Attentive, Timely, Expertise – “I stand by my pledge, the same one that I made 9 years ago when I began this firm. If you do not receive a response from me or one of my team members within 24 hours, please contact me directly on my cell at 480.232.4470.”

                        -Elizabeth

 

 

2 Ways to Win an iPad Mini from eeCPA

2 Ways to Win an iPad Mini

 Odometer Readings by December 31^st

Between now & New Year’s Eve - Take a picture of your odometer (or just give us the number) & send it to us at odometer@eecpa.com

Please include the following information:

o   Your Name

o   Year Make & Model of your Vehicle

o   % Driven for business during 2012

We will draw the winner on New Year’s Day!

 

Scheduling by January 31^st

Pre-Schedule your 2013 tax delivery. Contact our offices at: scheduling@eecpa.com to make your appointment for a teleconference/meeting/delivery of your tax information, and we will be happy to assist you!

            We will draw the winner on February 1st!

 

What does the Fiscal Cliff mean to You?

What does the Fiscal Cliff Mean to You?

More money to government, less money in your pocket!

There are literally hundreds of tax increases scheduled to take place prior to filing your 2012 income tax returns. Here is just a sampling of what you may look forward to…

·        Bye-Bye Bush-era Tax Rates.

If there is no resolution in Congress, individual income tax rates are scheduled to rise by at least 5%! 

 

•         Hello Alternative Minimum Tax!

 

The AMT patch disappears, causing more Americans than ever to be subject to the Alternative Minimum Tax (a flat tax at 28% which effectively eliminates the advantage of the 15% bracket)

 eeCPA’s calculations – Based upon our preliminary tax planning calculations for our client base, we have determined that AMT will add approximately $4,500 on to each client’s 2012 tax bills. However, we do anticipate that some sort of patch will be enacted by year-end (or retroactively), since the IRS came out to warn Congress that taxpayers would not be able to file their returns until late March, without the extension of a patch.

We will communicate new law changes, as soon as we receive definitive guidance!

 ·        Estate Tax: Bye-Bye $5 Million Exemption, Hello 55% tax rate!

Unfortunately, the $5 Million exemption is expected to revert back to $1 Million. Beginning next year (2013), those dying with worth more than $3 million in total assets will be taxed at rate of 55% (up from 35% through the end of this year), since legislation has not been enacted. We are working with several clients to make year-end gifts to reduce their potential estate tax burden.

·        Every US Wage Earner will pay 2% more in Social Security Tax beginning next week. The 2% reduction in effect for 2011 & 2012 is scheduled to expire on 12/31/12. We do not expect that this reduction will remain in effect

AZ Tax Credits Update - 2012

How to Take Advantage of Arizona Tax Credits

Do you pay even $1 of tax to the State of Arizona? If the answer is yes, then you can choose to pledge those dollars directly to education or to charitable organizations that assist the working poor.

You can direct where your state tax dollars are spent!

 

School Tax Credits

There are 2 types of Arizona Tax Credits that support the funding of education in Arizona. There is the private school tuition credit and the public school fee credit.

Click here for a complete list of schools that qualify for the credits:

http://www.azdor.gov/TaxCredits/SchoolTaxCreditsforIndividuals.aspx

In sum, every Arizona Resident is eligible to take the following maximum annual education credits for 2012:

Type of Credit	Filing Status
	Single/HOH	Married Filing Joint
Private School	1,003	2,006
Public School	200	400
Total Available	1,203	2,406

 

Oftentimes, if you have children in public school, you will be paying fees for extracurricular activities or special programs. Keep track of those fees, since they will most likely qualify for the credit and reduce your tax bill.

If someone close to you is attending a private school (other than your child), you can make a specific tax credit donation to the private school that will benefit that person specifically, if they qualify to receive a scholarship. You would need to contact the school directly to make arrangements for this type of donation.

Please note that when preparing your tax returns, we will need the following information about your tax credit donation: Payee, date donation made, amount of donation.

Unlike other charitable donations which merely provide deductions that can save you up to 5.4% on your tax bill, a tax credit saves you 100% of the tax. That is for every $1 you spend on a tax credit donation, you may subtract $1 from your Arizona Tax Bill.

Charitable Credit for the Working Poor

There are a number of charities that depend on donations and provide programs throughout our community. Many of these organizations are really struggling right now, and you can help them by taking advantage of the Charitable Tax Credit and saving on your 2012 taxes.

For a complete list of organizations that qualify, please click below….

http://www.azdor.gov/LinkClick.aspx?fileticket=HMFAW1KQl_k%3d&tabid=133

Single Taxpayers and Heads of Households can claim a credit for a donation of up to $200. Married taxpayers filing joint returns may claim a credit of up to $400.

 

Do You Need to File 1099s?

If you paid more than $600 to any individual, LLC or partnership for rent or services provided to your business during 2011, then you must send that entity a 1099. You must also file all copies of Forms 1099 with the IRS, along with cover sheet, Form 1096 by February 29, 2012.

How Can I Easily Determine Which Vendor Will Need a 1099?

Your QuickBooks file is the perfect tool so you can determine if you need to file a 1099 to any particular vendor. By looking at your Profit & Loss report for 2011, you want to pay attention to all service and rent categories such as:

· Advertising & Promotion

· Misc.

· Outside Service

· Legal Fees

· Accounting Fees

· Professional Fees

· Repair Service

· Rent/CAM Charges – this one goes under “rent” on 1099. not non-employee compensation

· Storage – same as above

When you find those categories, click on the amount to review the detail. This way you can identify which vendors received more than $600. If any vendor’s name ends in “Inc, Co., Corp. or Corporation,” then there is no need to issue a 1099. If the company is a C-Corp or an S-Corp, they are excluded from receipt of 1099s. For example, eeCPA is an S-Corp, so no need to send us a 1099!

What information do you need from the service provider?
You will need the full name of the individual or business, the address and the individual or business' Taxpayer (Employer) Identification Number, along with the amount that you paid to that provider during 2011. All of this information can be obtained by sending your vendors Form W-9. Click here to obtain this form.

Do you need help in preparing your Forms 1099?
eeCPA is here to help...
1. We will gather the information from you.
2. We will prepare all of the forms and mail them to the recipients by the deadline.
3. We will file the government forms electronically on your behalf.
4. We will send you copies of all of the forms and a summary report once the filings have been completed.

If you provide us with the information that we need, we will charge you just $25 per 1099.

If we need to gather the information from your accounting files and determine the filing requirements, then we will charge you based upon our standard hourly rates.

Why should you file Forms 1099 timely?
The #1 reason to file your Forms 1099 timely is to preserve the deductibility of your expenses.

Secondly, you want to file the 1099's timely to avoid the penalties for late and/or incomplete filings. The penalties range from $30-$100 per 1099 Form if not filed, filed late or incorrectly filed.

Tips to make the 1099 process less painless for 2012...
Have all of your service providers complete a Form W-9 prior to making payment to them. That way they have incentive to complete and return the form to you, and you have all of the information that you need when it comes time to prepare your 1099s for 2012.

How to Take Advantage of AZ Tax Credits

Do you pay even $1 of tax to the State of Arizona? If the answer is yes, then you can choose to pledge those dollars directly to education or to charitable organizations that assist the working poor. There are 2 types of Arizona Tax Credits that support the funding of education in Arizona. There is the private school tuition credit and the public school fee credit. Contributions for private school tuition tax credits can be made through April 16, 2012. If you make a contribution by April 16, 2012, you have the option of using it as a tax credit on either your 2011 or 2012 return.Here is the Arizona Department of Revenue’s website for details on how you can take advantage of these tax credits.

Furthermore, there are a number of charities that depend on donations and provide programs throughout our community. Many of these organizations are really struggling right now, and you can help them by taking advantage of the Charitable Tax Credit and saving on your 2011 taxes. (Warning - Please note that this credit is only available to individual taxpayers that itemize their deductions. If you take the standard deduction, then you may not claim the credit!)

In sum, every Arizona Resident is eligible to take the following maximum annual charitable/education credits:

Single/Head of Household

Private School $500

Public School $200

Charitable Organization $200

Total Available $900

Married Filing Joint

Private School $1000

Public School $400

Charitable Organization $400

Total Available $1800

Oftentimes, if you have children in public school, you will be paying fees for extracurricular activities or special programs. Keep track of those fees, since they will most likely qualify for the credit and reduce your tax bill.

If someone close to you is attending a private school (other than your child), you can make a specific tax credit donation to the private school that will benefit that person specifically, if they qualify to receive a scholarship. You would need to contact the school directly to make arrangements for this type of donation.

Please note that when preparing your tax returns, we will need the following information about your tax credit donation: Payee, date donation made, amount of donation.

Unlike other charitable donations which merely provide deductions that can save you up to 5.4% on your tax bill, a tax credit saves you 100% of the tax. That is for every $1 you spend on a tax credit donation, you may subtract $1 from your Arizona Tax Bill.

If you are unsure of where to make your contribution, we recommend Quality Interactive Montessori School or Foothills Academy. Click on this link for the Quality Interactive donation form and this link for the Foothills form.

Happy Holidays!

We would like to thank you for the opportunity to serve you this past year and look forward to a very successful 2012! We would like to wish you a very happy and safe holiday. Please note that our office will be closed December 26 through December 30 in observation of the Christmas and New Year’s holidays.