Blog

What Is Bitcoin And Why Should I Care?

Virtual CPA
First, some things you never heard of before bitcoin. The internet, the democratization of communication. No longer do you need a printing press, trucks, or paper boys in order to make your voice heard. Now all you need is a computer and a good story someone in the world is willing to read. Matt Drudge, editor of the Drudge Report, has revolutionized political reporting. His influence is at times stronger than the New York Times. And it’s just him and an assistant and a very simple website. 3D printing, or “additive manufacturing”. It is the democratization of manufacturing and its in full swing today. You no longer need a factory to make a product. You can manufacture your product in plastic from your desk. Bitcoin is the democratization of money.…
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2013 YEAR-END PAYROLL PLANNING GUIDE AND CHECKLIST

Posts
  It is hard to believe it is that time of year again. The end of the year always  brings  with it the need for some  additional payroll and payroll  tax planning considerations and preparations.  In an effort  to help your 2013 year-end  process run smoothly, we have prepared  this guide  to help you in your planning.  The information will discuss the following year-end issues and concerns: •         Federal and State tax identification rates •         W-2 information •         Year-end  bonus runs and adjustment payrolls •         Fringe Benefits •         Third Party Sick Pay •         Employer HSA contributions •         Reporting Employer Sponsored Health on W2 (Required for 250+    employees)  2013 FUTA Credit Reduction Federal law provides for a reduction in the FUTA tax credit when a state has outstanding federal loans…
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The View From The Cliff

Internal Revenue Service
I thought it my be helpful to give some hypothetical tax examples in order to get a clearer picture of the view from the cliff top we face January 1. Jason  is single and has an adjusted gross income of $60,000 a year. As is the case among two-thirds of the tax-paying population, Joe claims the standard deduction.  After subtracting the projected 2013 personal exemption of $3,850 and standard deduction of $6,050 for a single taxpayer, Jason's taxable income comes to $50,100. If the current tax laws are extended beyond 2012, that would mean $8,900 of Jason's income would be taxed at only 10 percent, and his top tax rate would be 25 percent. This would leave him with a tax liability of $8,465.  If the current rates expire, however,…
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Why a Virtual CPA?

Virtual CPA
I am going to upset a lot of my fellow accountants with this statement. But the plain and simple truth is most companies do not need a forty hour a week CPA. Most companies require about forty hours of services per month. Technology has made it possible to outsource your company's accounting needs. The "Cloud" has opened doors for small business that were not possible five years ago. Some the advantages of the cloud are: Quick implementation of the process Applications can be up and running in just a matter of minutes because there is no installation process. Regular upgrades occur automatically without interruptions to your business. Internet access You can access your financial information anywhere. Lower costs You may not have to pay for the cost of hardware and the…
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Fraudulent Tax Returns Up 181%

Internal Revenue Service
The number of taxpayers trying to bamboozle the IRS and collect bigger refunds has shot up this filing season. The IRS identified 335,341 tax returns claiming $1.9 billion in fraudulent refunds as of March 4, 2011, according to the findings of an audit conducted by the Treasury Inspector General for Tax Administration. That's a whopping 181% increase from the same period last year. While the IRS has become more effective in its screening process, a weak economy has also driven more people to cut corners, said Tim Gagnon, assistant academic specialist of Accounting at Northeastern University. "When the economy gets really bad, people get more touchy about how much they're paying in taxes and look at where they think they can push the envelope a little more," said Gagnon. "100…
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Indiana State Sponsored 529 Plan

529 College Plans
Indiana Residents can now save in FDIC-insured Certificates of Deposit as part of their overall college savings strategy   Announced in January 2011 by State Treasurer Richard Mourdock, Chairman of the Indiana Education Savings Authority, the CollegeChoice CD 529 Savings Plan (CollegeChoice CD) is now available to college savers in Indiana. College Savings Bank serves as Program Manager to CollegeChoice CD and offers three FDIC-insured* CDs to Indiana families and families nationwide; the CollegeChoice CollegeSure® CD, the CollegeChoice InvestorSure® CD and CollegeChoice Fixed Rate CDs. CollegeChoice CD is unique to Indiana’s State-sponsored 529 plan in that college savers can enroll through participating local banks and investment advisors as well as on their own online or by mail. CollegeChoice CD will be one of the first 529 college savings programs in…
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IRS Versus The Wealthy

IRS Versus The Wealthy

Internal Revenue Service
IRS Push Against the Wealthy Is All Talk, Little Action The Transactional Records Access Clearinghouse at Syracuse University has released a report, IRS Global High Wealth Taxpayer Program Lags: A year and a half ago, in the fall of 2009, the IRS created a special new unit to examine "high wealth individuals" and the extent to which they were complying with the tax laws. In an October 2009 speech announcing the new program, IRS Commissioner Douglas Shulman said that the purpose of the Global High Wealth Industry Group (GHWIG) was to "centralize and focus the IRS compliance expertise" on "high wealth individuals and their related entities." To give prominence to this program direction, the new agency organization was established as an entire "industry" group. The five other industry groups cover large…
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