Volume 18 Issue 2 November 2013

Transcription

1 Volume 18 Issue 2 November 2013 Board of Directors William Allen, President Natchitoches, LA bestplanb@yahoo.com Kelly Donaldson, Vice President Crowley, LA kellysdonaldson@yahoo.com Calvin Lopes, Treasurer New Orleans, LA taxmanla@bellsouth.net Tammy Franklin, Secretary Metairie, LA tfranklin@cricpa.com Chelsae Abshire Crowley, LA main.aots@gmail.com Krystal Ancar New Orleans, LA ancartaxservices@aol.com Greetings! The holidays are just around the corner and we all know what happens next! Take a little time to relax, rejuvenate and enjoy calm before the storm! Happy Thanksgiving! Hanging the Turkey Young Simon was sitting in his grandmother's kitchen, watching her prepare the Thanksgiving meal. 'What are you doing?' Simon enquired. 'Oh, I'm just stuffing the turkey,' his grandmother replied. 'Wow, that's cool.' Simon remarked. 'Are you going to hang it next to the deer?' State Bird When a Butterball Talk-Line staffer asked a caller what state her turkey was in (meaning how thawed was it) the caller responded with, Florida. Kathryn Crozier Crowley, LA main.aots@gmail.com Albert Jones LaPlace, LA carlton-49@hotmail.com James Raymond III Metairie, LA theraymondco@cs.com Yvette Soniat, Newsletter Metairie, LA exactax@bellsouth.net

2 Volume 18 Issue 12 November 2013 Page 2 Federal Tax Law General Tidbits Accelerated Death Benefits If terminally ill or chronically ill individuals receive amounts from their life insurance contracts, the payments are excludable from gross income by the recipient as an amount paid because of the insured s death. There are special rules that a chronically ill individual must meet to qualify for the income exclusion. Income Test of Qualifying Relative as Dependent To take a qualifying relative as a dependent, in addition to the other test, the gross income test requires that for the current calendar year the dependent s gross income (not taxable income) must be less than the exemption amount. Only income included in gross income is counted. This includes social security benefits included in gross income, gross rental income with no reduction for expenses, prizes, a partner s share of partnership gross income, annuity payments in excess of contributions, and community income under community property laws. Another Delayed Tax Season Already The IRS recently announced a delay for the upcoming 2014 tax season. How long of a delay? At this time the IRS is not certain. Early projections put a delay of 1 2 weeks. Originally the IRS had planned on accepting returns beginning January 21 st, but now estimates between January 28 th & February 4 th. According to irs.gov they are exploring options to shorten this delay and will announce a final decision in December. What does this mean for our clients? Employers may not rush to get out W-2 s, aware returns cannot be filed yet. Clients will be anxiously awaiting their refunds earlier than we estimate them to arrive. What does this mean for offices? Another rocky start to our season seems like we should be accustom to this by now. Expect a higher amount of phone calls asking when their refund should be in. TIDBITS $ Maximum EIC for 3 children $ Personal Exemption IRS Practioner Priority Hotline WE NEED YOUR HELP! Several positions on the LA NATP Chapter Board will be up for election at the annual meeting in December. We encourage you to consider volunteering for one of the available positions. If you would like more information, please contact Kelly Donaldson at main.aots@gmail.com. Also, you might consider volunteering for one of the Chapter s committees. We will need everyone s involvement to assist when the National Conference is held in New Orleans in 2015!

3 Volume 18 Issue 2 November 2013 Page 3 It s over! Finally, the 2013 tax season is officially over. What a relief. Now it s time to take a few days off work and then start gearing up for classes before next tax season hits us again. Recently Louisiana Department of Revenue held local update classes (they were very last minute this year). But we were able to make the class held in Lafayette. We were a bit disappointed when we realized the IRS was not there due to the furlow, but all in all the state staff did a great job filling in the time. Topics covered include: DOMA rulings Be sure to read Revenue Information Bulletin Impact of the Internal Revenue Service Ruling Vendor Comp rate change The state acknowledge there was little to no notice provided of this rate change and that some clients may have not had to correct form when they prepared their sales tax return. We were informed that the state will waive any penalties/interest for using the correct form for June 2013 if returns were paper filed using an incorrect form. However the taxpayer will be required to pay the balance due owed by using the incorrect rate. See Louisiana is actively seeking residents who are not paying use tax on internet/out of state purchases. We all know the question on the state tax return, they are asking for our assistance in helping taxpayers become compliant. The state has already been sending out notices of use tax due on internet purchases of tobacco items and we should expect them to obtain additional information on other internet sales in the future. Louisiana Assessment tax credit LDR is asking us to file this information with the individual tax return, make sure the dates of coverage beings in the year you are filing. Example Insurance coverage beginning in 2012 would be claimed on the 2012 Individual tax return. Please do not send in copies of the insurance declaration page UNLESS it is requested by the state. Are you aware of the LA State Form 7004 that may provide you with your client s LA withholding information? The only hiccup to the system is the employer must have filed the W-2 s electronically with the state. Realizing this leaves out a lot of small businesses, but the good news is there s a chance they have information at the state that might help. Did you know that if a taxpayer was employed by the same employer for multiple years and you have information of state withholding on any year, you can use this percentage number to estimate the amount of withholding for the year you have no information. It will be the discretion of the state to determine if this figure fits their allowance, so be sure to advise your client this number may be adjusted by the state. But some withholding credit is better than no withholding credit! Since the IRS was unable to provide updates at this meeting, we looking forward to hearing what the IRS has to offer in their update session at the LA NATP Seminar on December 3 at the Hilton Airport in Kenner. We look forward to seeing you there! Don t forget early registration ends on Nov 22 nd! LA NATP Chapter on Facebook Chapter Website:

4 Volume 18 Issue 1 November 2013 Page 4 Calendar of Upcoming Events 2013 Annual Membership Meeting 12:30pm Tuesday, December 3, 2013 LA NATP Chapter Education Seminar and Annual Meeting Tuesday, December 3, 2013 NATP Essential 1040 Workshop Wednesday, December 4, 2013 NATP Beyond the 1040 Workshop Thursday, December 5, 2013 NATP Essential 1040 Workshop Friday, December 6, 2013 Hilton Garden Inn, Lafayette (Cajundome) NATP Beyond the 1040 Workshop Saturday, December 7, 2013 Hilton Garden Inn, Lafayette (Cajundome) Check the NATP website to register: Need a new dip idea for the upcoming holidays? Try this one Mexican Spinach Dip 1 (16 ounce) jar salsa 1 (10-12 ounce) package frozen spinach (chopped, thawed and drained) 2 Cups shredded Cheese (I used Pepper Jack, but you can also use any other) 1 Cup evaporated milk 1 (2.25) ounce can chopped black olives, drained (OPTIONAL) 1 Tablespoon red wine vinegar Salt and pepper to taste Preheat oven to 400 degrees. Mix all items in a bowl and pour into medium baking dish. Bake for minutes, or until bubbly. Serve with chips or crackers.

5 Volume 18 Issue 1 October 2013 Page 5 We Want to Welcome 11 new members! We look forward to meeting each of you. Rebecca Diane Adams, Baton Rouge Carla Chartier, Port Sulphur Lynn Jacobs, Kenner Robin James, Chalmette Lester Keys, Leesville Gene Albert Labit, Chalmete Ralph Vincent Pausina, Metairie Carolyn Robinson, Oak Grove Cheryl Sass, Chalmette Srinivas Thouta, Baton Rouge Eugenia Vincent, Abbeville LA NATP Board of Director Meeting The next meeting of the LA NATP Board of Directors will be held on Tuesday, December 3rd at 5:00pm following the annual seminar at the Airport Hilton in Kenner, LA. All members are welcome to join the Board of Directors meeting.

6 National Association of Tax Professionals Seminar and Annual Meeting Airport Hilton, 901 Airline Drive Kenner, Louisiana AGENDA December 3, :30 am 8:00 am Registration, TBA 8:00 am 8:15 am Welcome by Chapter President William Allen Introduction of National Representative 8:15am 9:55 am Health Care Reform Session I Amber Fisher, Paychex 9:55 am 10:10 am Morning Break 10:10 am 11:50 am Health Care Reform Session II Amber Fisher, Paychex 11:50 am 12:30 pm Box Lunch, MS Amphitheatre Room 12:30 pm 1:10 pm Annual Chapter Meeting; Bylaws Presentation Presentation by NATP National Representative 1:10 pm 2:00 pm LA State Tax Updates, LA Department of Revenue, Barbara Reeves 2:00 pm 2:50 pm IRS-Update, Earline Brown, Stakeholder Liaison 2:50 pm 3:05 pm Afternoon Break 3:05 pm 5:00 pm K-1 s for 1120s, Harry J. Picou, III EA 5:00 pm 5:30 pm Chapter Board of Directors Meeting, Members Invited

7 Louisiana Chapter NATP 2013 Education Seminar and Annual Meeting December :00am to 5:00 pm Airport Hilton 901 Airline Drive, Kenner, Louisiana Name: Member ID# Designation(s): License #: PTIN: Address: City: State: Zip: Phone: ON OR BEFORE NOVEMBER 22, 2013, REGISTRATION IS $105 AFTER NOVEMBER 22, 2013, REGISTRATION IS AT THE DOOR FOR $115 DISCOUNT OF $10 TO ATTENDEES FROM SAME OFFICE NOON MEAL INCLUDED IN REGISTRATION REGISTRATION MUST BE RECEIVED AT NATP BY CLOSE OF BUSINESS NOVEMBER 22, 2013 AFTER THAT DATE, PLEASE REGISTER AT THE DOOR Payment Method: Checks made payable to NATP How to Register: Mail Registration form and Payment to: NATP 4523 Prince Street Metairie, LA Phone: (Exactax LLC) (Alpha Omega Tax Service LLC)