Thompson & McCarty, P.C. CPA

I have come to expect that taxes will change virtually every year.  2012 is no different.  I ran across a good article that summarized the changes in the Journal of Accountancy.  So instead of writing my own article I decided to share the link with you.  http://www.journalofaccountancy.com/Web/20114954.htm

There is a little change for every body but the biggie for business is the drop in bonus depreciation form 100% to 50% beginning in 2012.  Individuals that receive earned income credit can expect more questions and signature papers this year as the government places a larger burden of compliance on the tax preparer by increasing the penalties associated with not meeting the due diligence requirements.  Just let us know if you have questions about any of this and have a great 2012.

Do you realize that similar to any other business a CPA is in business too.  I have to make decisions about vendors just like any other business.  What I learn from my business experiences is one way I gain information to share with my clients.  Purchasing a web site is an area where I have learned some important things to share with you.

What a user sees, hears, or buys (including shopping) at a given web site is the user experience.  For example, the user goes to the website, looks through the inventory or searches it, drop the items they want in the shopping cart, and then check out using a credit card.  What it takes to create that experience is usually multiple services or products. 

On April 27th, 2011 a tornado hit Cullman, AL and destroyed many things.  It swept through the downtown area and destroyed businesses, homes, infrastructure such as power lines and telephone lines and more.  My office was spared a direct hit but the effects were substantial none the less.  We were without power for 6 days and phone and internet services for 8 days.  I had a disaster recovery plan.  I thought that we were ready to quickly reestablish a computer network complete with backed up data.  I learned that I was not nearly as ready as I thought and I hope that this message will help someone avoid my mistakes.

We have seen several issues related to the new homebuyer's credit.  The first problem that we experienced was legitimate credits denied without further substantial proof being submitted to the IRS.  The main reason this happened was due to rampant fraudulent claims.   The most recent issue is the systemic failure of the IRS to properly treat the $8,000 credit for those that purchased a home in early 2009.  This credit did not have to be repaid but the IRS has many of these in the system as repayable credits. 

To get to a basic understanding of what we are now seeing let's look at the history of the "New Home Buyer's Credit". 

It is now official.  Due to the late action by our Congress three different groups will have to wait until mid to late February to file their income tax returns.  The groups that will be affected are:

1. Itemized filers
2. People claiming higher education deductions (Not the education credits)
3. Those claiming educator expenses

Here is the official IRS announcement .  It is a failure of our Congress to act in a timely manner so feel free to let them know what you think about their lack of responsibility.  For those that have children in higher education, the deadline to submit your tax returns for financial assistance is March 1.  See what great stuff the government does for us.

THE ANT AND THE GRASSHOPPER

This one is a little different.... Two Different Versions................. Two Different Morals

 
OLD VERSION

The ant works hard in the withering heat all summer long, building his house and laying up supplies for the winter.

The grasshopper thinks the ant is a fool and laughs and dances and plays the summer away..

Come winter, the ant is warm and well fed.

The grasshopper has no food or shelter, so he dies out in the cold.
MORAL OF THE STORY: Be responsible for yourself!
MODERN VERSION

Our 2010 referral contest was once again a tremendous success.  I don't mind sharing with you that dollar for dollar comparisons to any other advertising that we have ever tried, your referrals are the best value.  The results are final and the grand prize winner was Tanya Bender.  Tanya won a 42" HDTV.  Second place through 14 place all had the same number of referrals so a drawing was held.  Second place ($200 gift certificate) went to Kevin and Rachel Holland and Third Place ($100 gift certificate) went to Thomas and Christina Shipp.  We look forward to the 2011 filing season.  If you have prize suggestions for us drop us an email or give us a call.