News
E-File Best Option for Taxpayers to Avoid Refund Problems
In their annual reminder to taxpayers, the IRS announced that it is looking to return $153.3 million in undelivered tax refund checks. In all, 99,123 taxpayers are due refund checks this year that could not be delivered because of mailing address errors. The average refund is $1,547 this year.
While only a small percentage of checks mailed out by the IRS are returned as undelivered, taxpayers can put an end to lost, stolen or undelivered checks by choosing to direct deposit when they file either paper or electronic returns. Last year, more than 78.4 million taxpayers chose to receive their refund through direct deposit. Taxpayers can receive refunds directly into their bank accounts, split a tax refund into two or three financial accounts or even buy a savings bond.
The IRS also recommends that taxpayers file their tax returns electronically, because e-file eliminates the risk of lost paper returns. E-file also reduces errors on tax returns and speeds up refunds. Nearly 8 out of 10 taxpayers chose to e-file this last year. E-file combined with direct deposit is the best option for taxpayers to avoid refund problems; it's easy, fast and safe.
Let Johnson & Sheldon file your returns electronically for you in 2012.
IRS Break on Independent Contractors Called Risky
Reclassifying freelancers as employees could subject employers to whopping fees and restrictions under ERISA.
The IRS has begun offering employers who have misclassified their employees as independent contractors a chance to come clean with a minimal amount of tax liability. But such employers should make sure they have erred before they come forward because reclassification could cost them much more than those tax payments.
FASB Mulls Big Changes in Nonprofit Reporting
The Financial Accounting Standards Board's Not-For-Profit Advisory Committee has recommended a set of fundamental changes in the accounting rules for nonprofit organizations that would require them to explain their finances to donors and other interested parties in greater detail.
A key recommendation from the advisory committee would create a framework for not-for-profit directors and managers to provide commentary and analysis about the organization's financial health and operations, somewhat similar to the "Management Discussion and Analysis" provided by publicly traded companies in their annual reports, to help bring context to their financial story.
Another suggestion involves improving the statements of activities and cash flows to more clearly communicate an organization's financial performance. The committee also suggested streamlining, where possible, the existing not-for-profit specific disclosure requirements to improve their relevance and clarity.
Another of the main recommendations includes revisiting the current net asset classifications, and examining how they might be relabeled or redefined, in order to improve how liquidity is portrayed in a not-for-profit's statement of financial position and related notes. "The Not-For-Profit Advisory Committee has provided the FASB with focused input about specific areas of improvement for not-for-profit financial reporting, and we commend its members for their toughtful approach to the issues," said FASB chair Leslie F. Seidman in a statement.
The recommendations will be submitted in a formal agenda request by the FASB staff, and the board is expected to discuss the request at a public meeting later this fall.
CPA Spotlight: Always on the Go
As published in the July issue of TSCPA e-zine
Some people are just wired a certain way. Whether it's working on a project that requires countless hours of work to fulfill completion or working outside, taking on back-breaking labor, some folks just can't sit still... They have to be working.
This seems to be the case for Terry Sheldon, CPA and shareholder of Johnson & Sheldon in Amarillo. Sheldon has more than 30 years of experience in public accounting, serving audit and tax clients, and managing wholesale, retail, construction, financial institutions and cooperative organizations.
