SKR+Co Alert: Election year
and expiring laws complicate year-end tax planning

October 11, 2012

Most 2012 income tax rates are scheduled to increase in 2013, and many tax breaks are set to expire. The two presidential candidates have vastly different proposals for addressing these scheduled changes. Whoever wins, there’s no guarantee that his proposal will become law. All of this uncertainty complicates traditional year end tax planning. This article provides an overview of various 2013 tax scenarios and how they might affect 2012 year end planning.

Read the Full Article HERE.

Topics in this article include:

• Comparison of Obama and Romney tax proposals
• AMT – Patch, repeal, or no action
• Capital Gains Rate changes
• Qualified Dividend tax treatment
• Expired and expiring tax breaks

To be prepared for any situation, it’s a good idea for you and your tax advisor to review your year-to-date income, deductions, gains and losses and project what these amounts may be in 2013. You can then use this information as the 2013 tax landscape becomes clearer to quickly decide what steps to take by year end to achieve your goals.

Tax Seminar
The Fiscal Cliff: Tax changes are coming – Are you ready?

Mark your calendars for Monday, November 12th, 3:30 p.m.!

More details coming soon

If you have questions about the issues raised in this article or about our upcoming seminar, please let us know. You can call us at (719) 630-1186 or email us through our Secure Email.

SKR+Co Alert: New 2012-2013 Tax Planning Guide is out!

September 21, 2012

At Stockman Kast Ryan + CO we strive to keep you informed about tax and accounting news that may impact you or your business. To help you stay ahead of the curve and plan well, we have mailed out a print Tax Planning Guide that should arrive in your mailbox shortly.

In addition, we have posted the electronic version – our Web Tax Guide –  on our website. This guide is updated whenever the information changes, so you can trust that it is current and reliable. The guide has many tools to help you in your tax planning, including tax act summaries, helpful charts and tables.

Even though this resource is a valuable help, we realize that there is nothing like sitting down with someone face to face and talking through the issues and concerns that are specific to you and your business. So we welcome the opportunity to do just that. Feel free to contact us to set up a time.

To access our Web Tax Guide, Click Here

If you have any questions, need more information or would like to sit down face to face to discuss your specific situation, please call us (719) 630-1186 or use our Secure Email.  

Congratulations to Ellen Fisher, CPA, our new Audit Partner!

SKR+Co is pleased to announce that Ellen Fisher, CPA, has been promoted from Senior Audit Manager to Audit Partner!

Ellen began her career with Stockman Kast Ryan and Company over 15 years ago. Her expertise includes, but is not limited to, not for profit organizations, financial institutions, and construction companies.

She currently serves as treasurer and audit committee chair of SET Family Medical Clinics' board. In the past, Ellen served as treasurer for the Colorado Motorcycle Road Racing Association.

Ellen has an adventurous spirit and enjoys dirt biking, running and sailing with her husband, John. 

Please join us in welcoming Ellen as our newest Partner!

Ellen Fisher, CPA
Audit Partner

Send Ellen your congratulations here!

SKR+Co Alert: Are you keeping the right tax records?

August 21, 2012

Records Retention: How long do we need to keep them?

Organizing, filing, and retaining old records is a burden for many businesses, not to mention individuals. As we move into a more "paperless" society, how do we determine what warrants taking up valuable office and storage space and what does not?

Records should be preserved only as long as they serve a useful purpose or until all legal requirements are met. To keep files manageable, it is a good idea to develop a schedule so that at the end of a specified retention period, certain records are destroyed.

At Stockman Kast Ryan + Co., we have developed a Records Retention Schedule we think you will find helpful. Although it doesn't cover every possible record, it does cover the most common ones. As always, please feel free to ask us should you have specific questions or concerns.

SKR Tax Record Retention Schedule (Click Here)

Is your receipt for your charitable gift satisfactory to the IRS?

So you thought you had proper substantiation for your charitable gift? Think again. A recent court case made it very clear that the IRS will not bend on certain requirements.

For any contribution of $250 or more, § 170(f)(8) provides that no deduction is allowed unless the taxpayer substantiates the contribution by a contemporaneous written acknowledgment of the contribution by the donee organization. The contemporaneous written acknowledgment must contain the following information:

1. the amount of cash and a description of any property other than cash contributed;
2. a statement whether the donee organization provided any goods or services in consideration for the contribution; and
3. a description and good faith estimate of the value of any goods or services provided in consideration for the contribution, or, if the goods or services consist solely of intangible religious benefits, a statement to that effect.

Based on this information, we suggest that you check to make sure that the statements you receive from your charities contain the proper verbiage above. If you serve on a board for a charity, make sure the statements you provide meet the IRS' criteria.

For information about the recent Tax Court case, read the Memo Issued by the Tax Court.

Did you know?

We are a proud member of DFK International/USA, a worldwide association of independent CPA firms with locations in over 30 major markets throughout the United States and representation in 70 countries. Learn more HERE.   

Meet 2 of our Tax Professionals:

Judy Kaltenbacher, CPA
Tax Partner

Eric Ryan, CPA, PFS
Tax Partner

If you have questions about the issues raised in this article or would like to contact us, call us at (719) 630-1186 or email us through our Secure Email.

SKR+Co Alert: Colorado's New Revenue Online Service & More!

July 26, 2012

Introducing… Revenue Online!

The Colorado Department of Revenue has a new service: Revenue Online. Both individuals and businesses can now access a host of information quickly and easily all in one place. Some of the information requires a login, so make sure you have your Colorado Account Number to access your business information or one of the following to access your individual information:

• Most recent tax return
• Estimated tax payment
• Recent Letter ID number from the CO. Dept. of Revenue

Here are some examples of what you can do through Revenue Online:

• View, print, and amend tax returns
• File Sales and Use Tax Returns
• Make or view payments
• Set up or change Electronic Funds Transfer (EFT) payments
• Request a payment plan
• View or print letters
• Check on refund status
• Change your address
• Add Power of Attorney
• File a protest

Follow this link to the Revenue Online website: www.colorado.gov/revenueonline

Donating to an Enterprize Zone but don't want to use your Social Security Number?

Beginning January 1, 2012, Enterpize Zone administrators are required to report to the state of Colorado the taxpayer identification number of each entity certified for an EZ tax credit. Consequently, these entities are requesting taxpayer identification numbers from each donor.

If you are a donor and would prefer not to provide your social security number, you can provide your Colorado Account Number instead. All Colorado taxpayers have a Colorado Account Number and can request it by visiting www.colorado.gov/revenueonline. Then follow the steps beginning on Page 2 of this memorandum from the governor's office: EZ Credit Instructions

Another great online tool: Our Client Portal!

Stockman Kast Ryan + CO has an easy and secure way for you to access your tax and accounting documents – our Client Portal. This is a much safer way to send us your confidential information, rather than email, and you can access the information in your personal portal at any time through the internet, using your secure login.

Examples of how you might use your client portal:

• Send us your individual or business tax documents
• Send us your QuickBooks files for bookkeeping and payroll services
• Access your tax returns when refinancing your home or applying for a loan

Client portals are set up at your request, so if you have not already taken advantage of this service, talk with your SKRCO tax professional today!

If you have any questions or need more information, please contact us at (719) 630-1186 or use our Secure Email to contact any of our accounting professionals.

June 29, 2012

Our hearts go out to all of you suffering from the effects of the Waldo Canyon Fire. This disaster affects our entire community to one degree or another, and we are heartened to see so many reach out to provide help and support to neighbors and strangers.

We realize that one area of concern for many may be how to rebuild their financial records that may have been damaged or destroyed. Another concern may be filing the right paperwork with the right agencies at the right time. This e-blast touches on several areas of possible concern with links to some of the best resources to help you and your family, friends, or business. 

As always, please contact us with any specific questions and we'll do our best to help you find the answers. Our thoughts and prayers are with you all. 

Putting the financial pieces back together

This booklet is written to help you regain a sense of financial balance following a disaster by offering suggestions on steps to take immediately, what to do in the initial weeks and months, and how to begin planning again for the future.

Disaster Recovery: A Guide to Financial Issues

Information regarding tax issues

As of yesterday, June 28th, Colorado’s request for an expedited major disaster declaration has been received, reviewed and accepted by the White House. That means that taxpayers affected by the Waldo Canyon Fire have certain relief provisions. See the specific website links below for details.

We also want to remind you that Stockman Kast Ryan + CO maintains electronic copies of our clients' tax records and would be happy to provide them to you should the need arise.

Colorado Department of Revenue
Information for Taxpayers Affected by Wildfires

Internal Revenue Service
Disaster Assistance and Emergency Relief for Individuals and Businesses

Casualty Losses

Another issue you may be wondering about is how your losses are treated for tax purposes: whether they are deductible, how much, and what is the process. According to the IRS, "If you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can choose to treat the loss as having occurred in the year immediately preceding the tax year in which the disaster happened, and you can deduct the loss on your return or amended return for that preceding tax year."

The IRS provides helpful information regarding casualty losses due to disaster on their website. But we realize that you may need help sifting through the information, so please contact us if you have questions or need assistance.

Internal Revenue Service
Casualty, Disaster, and Theft Losses – Including Federally Declared Disaster Areas

Additional Resources & Ways to Help

Information on how to help fire victims
HelpColoradoNow.org

Waldo Canyon Fire Victim Assistance Fund a partnership of El Pomar with KOAA 5

Pikes Peak United Way

The American Red Cross, Pikes Peak Chapter

Care and Share Food Bank
Volunteer Hotline 434-5724

The Salvation Army

Discover Goodwill

Caring for animals of evacuees
Humane Society Pikes Peak Region

Wildfire Cleanup Guidance
El Paso County Public Health

Coping with a Disaster
Centers for Disease Control

Again, we realize this is a very difficult time for so many in our community. If we can be of service to you in any way, please contact us at (719) 630-1186 or through our Secure Email.

SKR+Co Alert: E-filing is Safe, but Beware: Identity Thieves are Prowling

April 10, 2012

Last year, nearly 100 million taxpayers opted for the safest, fastest and easiest way to submit their individual tax returns IRS efile. E-file is the norm for individual taxpayers and more and more businesses are also submitting their forms electronically.

But a question we continue to hear is, “Is it safe?” We live in a time where more and more of our interactions, including those involving our finances, are conducted over the internet. This is no secret to identity thieves. But according to the IRS, e-filing is very safe. The IRS e-file system has never had a security breach. In fact, over 400 million returns have been electronically filed since 1986 without a security incident.

Here are some of the facts about the IRS e-file System. The system: 

• is not done over email
• has many built-in security features
• employs multiple firewalls
• uses state of the art virus and worm detection
• meets or exceeds all government security standards
• is constantly tested for weaknesses by penetration testing
• has never had a security breach
• All internet transmissions use SSL (Secure Sockets Layer) encrypted security measures

IRS e-file transmissions are very secure because the IRS has been extremely diligent in the design, development, analysis and testing of the current infrastructure and system.  IRS e-file meets or exceeds all government security standards and includes multiple firewalls.

Most e-filed online tax returns are transmitted over phone lines from the return preparer to a third-party transmitter. From there, the returns are forwarded over secured lines to the IRS.  Intercepting telephone transmissions is quite difficult and requires access to phone company major transmission lines.  Also, to transmit data like tax returns over telecommunications lines means that the information gets converted into digital format which could not be easily read even if it were intercepted.

As you can see, the IRS has instituted safeguards to ensure that e-filing your tax return is a safe process.

Could your tax records be susceptible to identity theft?

Identity theft occurs when someone uses your personal information such as your name, Social Security number (SSN) or other identifying information, without your permission, to commit fraud or other crimes. You could be vulnerable if this information is not properly protected.

The IRS suggests the following to minimize the risk of becoming a victim:

• Don't carry your Social Security card or any other document(s) with your SSN on it.

• Don’t give a business your SSN just because they ask. Give it only when required.

• Protect your financial information.

• Check your credit report every 12 months.

• Secure personal information in your home.

• Protect your personal computers by using firewalls, anti-spam/virus software, update security patches, and change passwords for Internet accounts.

• Don’t give personal information over the phone, through the mail or on the Internet unless you have initiated the contact or you are sure you know who you are dealing with.

If you have any concerns or questions or think you may be a victim of identity theft, we can assist you in resolving the issues, if you wish.

How do you know if your tax records have been affected by identity theft?

Usually, an identity thief uses a legitimate taxpayer’s identity to fraudulently file a tax return and claim a refund. Generally, the identity thief will use a stolen SSN to file a forged tax return and attempt to get a fraudulent refund early in the filing season. 

You may be unaware that this has happened until you file your return later in the filing season and discover that two returns have been filed using the same SSN. 

Be alert to possible identity theft if you receive an IRS notice or letter that states that:

• More than one tax return for you was filed,

• You have a balance due, refund offset or have had collection actions taken against you for a year you did not file a tax return, or 

• IRS records indicate you received wages from an employer unknown to you. 

What to do if your tax records were affected

If you receive a notice from the IRS, respond immediately. If you believe someone may have used your SSN fraudulently, notify the IRS immediately by responding to the name and number printed on the notice or letter. You will need to fill out the IRS Identity Theft Affidavit, Form 14039.  

Keep in mind, The IRS does not initiate contact with taxpayers by email to request personal or financial information.

SKR+Co Alert: Small Business Tips and Resources

January 27, 2012

2012 Tax Calendar

To help you make sure you don't miss any important 2012 deadlines, we've provided this summary of when various tax-related forms, payments and other actions are due. Please review it and let us know if you have any questions about the deadlines or would like assistance in meeting them.

Tax Calendar Link

Planning ahead for credit card reporting

NEWI-9 Central

The US Citizenship and Immigration Services (USCIS) recently launchedI-9 Central, a new online resource center dedicated to making Form I-9,Employment EligibilityVerification, information more accessible. I-9 Central provides one online location for the information employers and employees need to properly complete Form I-9.

I-9 Central Website

Health Insurance Coverage ReportingDelayed

The IRS has produced a new YouTube video about W-2 health care reporting. The highlights are:

• Employer-sponsored health care benefits remain nontaxable to recipients
• The cost of employer-sponsored health care benfits may appear on 2011 W-2s
• Reporting is optional for all employers for 2011 and small employers in 2012(defined as those who file 250 or fewer W-2s in 2011)

To view the video,Click Here

E-Verify

Another resource available to employers is E-Verify.E-Verify is free, and for most employers, is a voluntary system that allows employers to verify the employment authorization of new hires and the validity of their social security numbers. Learn more about E-Verify at their website.

E-Verify Website

Please contact us with any questions at (719) 630-1186 or through ourSecure EMail.