Jenny Hassler, CPA is a wife, mother, grandmother, accountant and artist living and working in Western North Carolina.

Tax season has begun!

And I’m open for business.  I haven’t increased my standard rates since last year (so expect to pay about the same this year if you’re returning for a return or two).

Please do note that filing for this year is a bit delayed due to the Fiscal Cliff legislation which passed the extender provisions much later than usual (and in some cases made changes to already existent forms).

From the IRS site:

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IRS forms that 1040 filers can begin filing in mid-February

Taxpayers using this form can begin filing their tax returns in mid-February after the IRS updates its processing systems.

  • Form 8863 Education Credits

List of IRS forms that 1040 filers can begin filing in late February or into March 2013

The following tax forms will be accepted by the IRS in late February or into March after updating forms and completing programming and testing of its processing systems.  A specific date will be announced in the near future.

  • Form 3800 General Business Credit
  • Form 4136 Credit for Federal Tax Paid on Fuels
  • Form 4562 Depreciation and Amortization (Including Information on Listed Property)
  • Form 5074 Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands
  • Form 5471 Information Return of U.S. Persons With Respect to Certain Foreign Corporations
  • Form 5695 Residential Energy Credits
  • Form 5735 American Samoa Economic Development Credit
  • Form 5884 Work Opportunity Credit
  • Form 6478 Credit for Alcohol Used as Fuel
  • Form 6765 Credit for Increasing Research Activities
  • Form 8396 Mortgage Interest Credit
  • Form 8582 Passive Activity Loss Limitations
  • Form 8820 Orphan Drug Credit
  • Form 8834 Qualified Plug-in Electric and Electric Vehicle Credit
  • Form 8839 Qualified Adoption Expenses
  • Form 8844 Empowerment Zone and Renewal Community Employment Credit
  • Form 8845 Indian Employment Credit
  • Form 8859 District of Columbia First-Time Homebuyer Credit
  • Form 8864 Biodiesel and Renewable Diesel Fuels Credit
  • Form 8874 New Markets Credits
  • Form 8900 Qualified Railroad Track Maintenance Credit
  • Form 8903 Domestic Production Activities Deduction
  • Form 8908 Energy Efficient Home Credit
  • Form 8909 Energy Efficient Appliance Credit
  • Form 8910 Alternative Motor Vehicle Credit
  • Form 8911 Alternative Fuel Vehicle Refueling Property Credit
  • Form 8912 Credit to Holders of Tax Credit Bonds
  • Form 8923 Mine Rescue Team Training Credit
  • Form 8932 Credit for Employer Differential Wage Payments
  • Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit

Let me know if you have any questions!

Confessions of a Tax Collector

tax colelctor

Need a distraction from your taxes this year?  Consider picking up Confessions of a Tax Collector  by Richard Yancy (currently out of print, but still available at Amazon for less than $10).  An awesome review for the book can be found here.

IRS: Free file

freefile

The IRS partners with a number of companies to offer Free eFiling every year for 1040 tax payers with an AGI less than $57,000.  If your AGI is greater than $57,000 you can still free file by filing in your own forms on the IRS website here.

 

1099s

The IRS has expanded eligibility for their worker reclassification program.

If you are concerned that you’ve misclassified any workers as 1099 contractors when in fact they should be property classified as employees, this program represents an opportunity to correct that mistake with reduced penalties.

The IRS has a pretty complete explanation of how to tell if a worker is an employee or a contractor here.  From the IRS site:

Common Law Rules

Facts that provide evidence of the degree of control and independence fall into three categories:

Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor. Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor, and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another.

The keys are to look at the entire relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination.

IRS educational opportunities

The IRS offers a series of live webinars every year regarding hot tax issues.  These webinars are archived on their IRS Videos website here. In addition to webinars, the IRS offers 3-day seminars around the country; these include a vendor marketplace as well as many different opportunities to hear what’s up with tax law – straight from the folks who enforce it!

Welcome!

Welcome to our new website!

Please check back often for education, tips, and musings on the fascinating (no, I swear it is fascinating!) world of accounting.

In the meantime, please excuse our dust as I work on getting the site spruced up.

Best regards,

Jenny