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Bookkeeping Accounting and Auditing Clerks
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The CIMA course of study
A look at the structure and content of the CIMA Professional Qualification. Discover how the Chartered Global Management Accountant (CGMA) designation ...
Cambridge University student talks about his experience at TD&A
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Bridge Over Troubled Water - John Legend - North Sea Jazz 2013
John Legend at North Sea Jazz Festival in Rotterdam, playing an amazing cover version of Simon & Garfunkel's "Bridge over troubled water". I was there in the ...
+Cindy Oteri I don't think u realise nobody gives a rats a$$ about what u said, whether we indulging in satanic music atleast its true music that speaks to the heart and I'm emotionally drived , this is some great stuff, I wonder what type of music u listen to
Man he's such a great singer. I was scared to hear another version of this
song after Tessanne killed it on the voice. But john legend did it just as
good in his own way. Love this song
Tax Accounting firm licensed in ALL States. We are affordable, experienced, and friendly. If you are looking for a blend of personal service and expertise, you ...
No penalty for early withdrawal of IRA funds to pay higher education
expenses
Experienced Tax Accountant – The law lets individuals receive distributions
from their IRAs (including Roth IRAs) to pay higher education expenses
without incurring the 10% early withdrawal penalty that usually applies to
withdrawals from an IRA before age 591/2. (The regular income tax on the
distribution still applies.)
The penalty-free withdrawal is available for “qualified higher education
expenses,” meaning tuition at a post-secondary educational institution, as
well as room and board, fees, books, supplies, and equipment required for
enrollment or attendance. Expenses for graduate level courses are also
covered.
The expenses can be incurred by the IRA owner, his or her spouse, or any
child or grandchild of either spouse. There is no requirement that the
child or grandchild be a dependent of the IRA owner.
This provision is just one of several aimed at easing the burden of paying
the bills for higher education. If you have any questions about this or any
of the other provisions, please do not hesitate to call.
If you found this Tax Tip helpful, please share it through your social
media platforms.
AB Tax Accounting
Click this link to view our YouTube video //youtu.be/KfO0_kmz7qc
No Alimony Deduction for Child-related Contingency
Experienced Tax Accountant – Upon his divorce, the taxpayer and his ex-wife
entered into an agreement that required the taxpayer to pay 75% of the
monthly mortgage payments on the ex-wife's residence until the mortgage was
paid off or their oldest child, who suffered from a neurological disorder,
no longer lived with the taxpayer's ex-wife. Although the divorce agreement
did not designate the "maintenance" payments that the taxpayer paid as
deductible by him as alimony under IRC Sec. 215 or includible in his
ex-wife's income, the taxpayer deducted them as alimony. However, because
the payments were based on a contingency that would cause the payments to
stop if their disabled son no longer lived with the taxpayer's ex-wife, the
Tax Court held that the full amount was nondeductible child support under
IRC Sec. 71(c)(2) . George A. Resnik, Jr., TC Summ Op. 2015-11 (Tax Ct.)
Please call if you would like to explore any of these issues more fully. I
look forward to hearing from you. Click this link to view our YouTube video
//youtu.be/KfO0_kmz7qc
Amare Berhie
AB Tax Accounting
[email protected]
(651) 621-5777, (952) 583-9108, (612) 224-2476, (763) 269-5396
Miscellaneous itemized deductions—unreimbursed employee business
expenses—proof.
Experienced Tax Accountant – Pro se taxpayer who worked fulltime as police
officer and who also owned private security co. and worked as security
guard was denied Schedule A deductions for allegedly unreimbursed employee
business expenses of his police officer job: expenses for such things as
vehicles, parking, tolls, and travel were by taxpayer's own admission not
related to his on-duty policing job, but rather went to off-duty training
and education. Moreover, he failed to show that they weren't reimbursed or
reimbursable. Also, cost of bulletproof vest wasn't deductible because
taxpayer received uniform allowance that could be used toward vest's cost.
Feel free to call me if you have specific questions or need additional
information. YouTube video //youtu.be/KfO0_kmz7qc
Amare Berhie
AB Tax Accounting
[email protected]
(651) 621-5777, (952) 583-9108, (612) 224-2476, (763) 269-5396
Changes in Forms W-2 and W-3 Reporting
Experienced Tax Accountant – The latest set of instructions for Form W-2
and Form W-3 for 2016 forms filed in 2017 include various changes, such as
the accelerated due date (1/31/17) for filing the forms with the SSA,
procedure for requesting an extension to file Form W-2 (no longer
automatic), increased penalty amounts for failing to file and furnish
correct W-2 forms by the due date, a new safe harbor for filing Form W-2
with certain de minimis errors, and the tax reporting treatment of same-sex
marriages (now the same as married couples of the opposite sex).
If you have any questions on this topic or would like to discuss some
planning strategies with me, please call. I look forward to hearing from
you. Click this link to view our YouTube video //youtu.be/KfO0_kmz7qc
Amare Berhie, Senior Tax Accountant
ABA Tax Accounting
[email protected]
(651) 621-5777
Liens and levies—lien property—property held in trust—alter
egos—foreclosure—constructive trusts—priority.
Income Tax Service For Small Businesses - In suit involving taxpayer with
hundreds of millions of dollars in back tax debts, district court's
decision to grant govt. constructive trust on taxpayer's U.S. trust's
future and current assets, up to amount he funneled from other trust, was
affirmed. Although taxpayer and trustee were seeking to appeal on grounds
that subject funds couldn't be traced back to other trust, they had neither
raised that claim before district court nor sought plain error review on
appeal. And their alternate arguments, that govt. was claiming they should
have suggested different collection source and/or that they didn't have
notice of their error until district court issued constructive trust order,
were unavailing.
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Required Minimum Distribution
Taxpayers born before 7/1/1944 generally must receive the Required Minimum
Distribution (RMD) payments from their Individual Retirement Arrangements
(IRAs) and workplace retirement plans [including Section 401(k) , 403(b) ,
and 457(b) plans] by 12/31/14. A special rule allows those who reached age
70 1/2 during 2014 to wait until as late as 4/1/15 to receive their first
RMD. The special April 1 deadline applies only to the RMD for the first
year; the remaining RMDs must be received each year by December 31.
Consequently, deferring the first-year payment into 2015 will result in the
taxpayer having two taxable distributions in 2015.
We're here to help! For no obligation free consultation contact us today!
AB Tax Accounting
//youtu.be/KfO0_kmz7qc
[email protected]
(651) 621-5777, (952) 583-9108, (612) 224-2476, (763) 269-5396
Actions by U.S.—conduct hindering tax law
enforcement—trusts—injunctions—contempt.
IRS Audit Representation –Govt.'s motion to hold trustee, and taxpayer as
alleged collaborator, in contempt of magistrate judge's preliminary
injunction order, which required that trustee deposit certain funds in
court registry pending resolution of underlying tax dispute, was granted
insofar as trustee was ordered to redeposit amount which he had initially
turned over, but then subsequently took back on grounds magistrate's order
was “only recommendation”: mere fact that order was “only” recommendation
didn't rob it of significance or change fact that it was enforceable. And
requiring trustee to redeposit stated amount would restore status quo
existing as of date he chose to ignore magistrate's recommendation.
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Business deductions—trade or business—profit motive—model airplanes—proof.
Experienced Tax Accountant – Art teacher was entitled to deduct on Schedule
C expenses relating to model airplane business she inherited from father:
overall evidence showed she conducted business with actual and honest
profit objective. Evidence included that she didn't derive personal
pleasure from operating business or have substantial income to absorb
recurring losses and resulting tax benefit wasn't significant. (Cheryl R.
Savello v. Commissioner, (2015) TC Memo 2015-24, 2015 RIA TC Memo ¶2015-24
) Feel free to call me if you have specific questions or need additional
information. YouTube video //youtu.be/KfO0_kmz7qc
Amare Berhie
AB Tax Accounting
[email protected]
(651) 621-5777, (952) 583-9108, (612) 224-2476, (763) 269-5396
Senate committee releases its analysis on comprehensive U.S. tax reform.
Expatriate Tax Services - On Dec. 11, 2014, the Republican Staff of the
Senate Finance Committee released its in-depth analysis on comprehensive
tax reform for 2015 and beyond (the Report). From an international tax
reform perspective, the Republican Staff advocated the need for a
territorial tax system and labeled a worldwide system with no deferral as
“a bad tax policy.” Other items covered in the more than 300 page document
include granting a tax incentive for certain income arising from the
exploitation of intangible property (referred to as a patent or innovation
box), tackling corporate inversions by tightening the earnings stripping
rules and other measures, and rethinking the U.S. tax rules for nonresident
citizens.
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Nonfilers
Opportunities for Nonfilers to re-enter the system - If anyone you know has
failed to file tax returns when due, it's important that they be aware of
the ways to resolve such a problem. Many nonfilers missed a year for one
reason or another, and now are afraid to re-enter the tax system. But in
fact, taxpayers who file overdue returns on their own are often treated
reasonably well, much better than those who are caught.
Our office can help nonfilers to file the necessary returns and take
advantage of the available IRS programs. I look forward to hearing from
you. Click this link to view our YouTube video //youtu.be/KfO0_kmz7qc
Amare Berhie
AB Tax Accounting
[email protected]
(651) 621-5777, (952) 583-9108, (612) 224-2476, (763) 269-5396
IRS Advises Taxpayers to Wait for Form 1095-A before Filing Their Returns
According to the IRS, taxpayers, who enrolled in a health plan through the
Health Insurance Marketplace in 2014, should wait until they receive Form
1095-A (Health Insurance Marketplace Statement) before filing their 2014
Form 1040. The Form 1095-A will not come from the IRS, but from the
Marketplace where they purchased their coverage, and should arrive by early
February. It will contain information needed to calculate the taxpayer's
premium tax credit and reconcile advance payments of the premium tax credit
made on their behalf to their insurance provider with the premium tax
credit they are claiming on their tax return. Health Care Tax Tips 2015-07.
Relief provided for certain Iowa small employers to claim Code Sec. 45R
health care credit.
In a Notice, IRS has provided relief under Code Sec. 45R for certain Iowa
small employers that cannot offer a qualified health plan (QHP) through a
Small Business Health Options Program (SHOP) Exchange because the
employer's principal business address is in a county in which no QHP
through a SHOP Exchange will be available for all or part of the 2015
calendar year. In general, if the eligible small employer provides health
coverage for the 2015 health plan year that would have qualified for a Code
Sec. 45R credit under the rules applicable to pre-2014 tax years, then the
employer may claim the credit. Notice 2015-8, 2015-6 IRB
Owner who delegated duties to embezzler was liable for responsible person
penalty.
A district court has denied a refund of a responsible person penalty that
had been paid by the owner of a company who had delegated duties to a
manager who ended up embezzling funds from the company. While the court
sympathized with the owner, it found him liable for the penalty because he
was a responsible person and he paid unsecured creditors after learning of
the manager's failure to pay IRS. We're here to help! For no obligation
free consultation contact us today!
AB Tax Accounting
//youtu.be/KfO0_kmz7qc
[email protected]
(651) 621-5777, (952) 583-9108, (612) 224-2476, (763) 269-5396
IRS updates list of countries with which it has nonresident alien interest
reporting agreements.
International Taxes – IRS has issued a Revenue Procedure that updates two
lists of countries with which the U.S. has in effect an agreement that
requires payors to report interest paid to nonresident alien individuals
who are residents of the other country. One list is of countries with which
the U.S. has in effect an income tax or other treaty or a bilateral
agreement; the other is of countries with which IRS has an automatic
exchange of information.
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IRS guidance on how illegal drug businesses should compute cost of goods
sold.
In Chief Counsel Advice (CCA), IRS has: 1) concluded that persons that
traffic in Schedule I and Schedule II controlled substances (e.g.,
marijuana) can currently deduct cost of goods sold (COGS) but must
determine COGS by using rules that existed before the enactment of Code
Sec. 263A to determine inventoriable costs; and 2) drawn conclusions on the
proper way for IRS to treat drug traffickers that deduct otherwise
inventoriable costs from gross income.Chief Counsel Advice 201504011
IRS releases U.S. international tax training materials.
International Taxes – On Dec. 15, 2015, IRS released a set of U.S.
international tax training materials on its website. Almost 50 separate
U.S. international tax topics are covered, ranging from an overview of
subpart F to the outbound transfers of property under Code Sec. 367.
Referred to as “Practice Units,” the materials are intended to provide IRS
staff with explanations of general U.S. international tax concepts and
information about specific types of transactions.
//youtu.be/KfO0_kmz7qc
Tax breaks for those who do volunteer work for charity
Experienced Tax Accountant - If you are a volunteer worker for a charity,
you should be aware that your generosity may entitle you to some tax breaks.
I would be happy to assist you with any other questions you may have about
deductions related to your charitable contributions.
If you found this Tax Tip helpful, please share it through your social
media platforms.
AB Tax Accounting
Click this link to view our YouTube video //youtu.be/KfO0_kmz7qc
IRS points out 2014 individual tax return reporting changes.
Experienced Tax Accountant – In a Fact Sheet, IRS has highlighted several
of the changes that individuals should be aware of when completing their
2014 individual income tax returns, including changes related to the
Affordable Care Act (ACA). If you found this Tax Tip helpful, please share
it through your social media platforms.
AB Tax Accounting
Click this link to view our YouTube video //youtu.be/KfO0_kmz7qc
Final regs issued on specified foreign financial asset reporting.
International Tax - IRS has issued final regs that provide guidance on the
requirement under that individuals attach a statement to their income tax
return that provides information on specified foreign financial assets in
which they have an interest. The final regs apply for tax years ending
after Dec. 19, 2011, but taxpayers may apply them to earlier years.
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IRS adds new FATCA International Data Exchange Service web pages.
IRS has added additional web pages to its Foreign Account Tax Compliance
Act (FATCA) International Data Exchange Service (IDES) site. The IDES
system is a secure web application for the U.S. to transmit and exchange
FATCA data with foreign tax authorities - that is, foreign financial
institutions (FFIs) and host country tax authorities (HTCAs).
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European Commission: Luxembourg appears to have unfairly aided Amazon.
According to a recently released letter, the European Commission has stated
its preliminary view that the tax benefits granted by Luxembourg to Amazon
in a 2003 transfer pricing ruling constitute state aid. The Commission also
stated its doubts about the ruling's compatibility with the internal market
and cautioned that unlawful aid may be recovered from the recipient
AB Tax Accounting Inc is a full-service Accounting firm licensed in ALL
States. We are affordable, experienced, and friendly. If you are looking
for a blend of personal service and expertise, you have come to the right
place! We offer a broad range of services for business owners, executives
and independent professionals. Our rates are affordable. We are experienced
and we're friendly. Please call us for a free initial consultation.
European Council formally adopts general anti-abuse rule in the
Parent-Subsidiary Directive.
On Jan. 27, 2015, the European Council (EC) formally amended the
Parent-Subsidiary Directive by adding a general anti-abuse clause to
prevent tax avoidance and aggressive tax planning by corporate groups.
European Union (EU) Member States have until Dec. 31, 2015 to introduce an
anti-abuse rule into national law