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The IRS has issued a consumer alert about possible fake charity scams in the wake of last weekend’s mass shooting in Orlando, Fla.

Scam artists commonly try to take advantage of generosity after such a headline tragedy by impersonating charities to get money or private information from taxpayers, the agency warns. Such fraudulent schemes may involve contact by telephone, social media, e-mail or in-person solicitations.

The IRS cautions donors to follow these tips:

• Donate to recognized charities and beware of charities with names similar to familiar or nationally known organizations. Some phony charities use names or Web sites that sound or look like those of respected, legitimate organizations. The IRS Exempt Organizations Select Check feature, helps find qualified charities. Donations to these charities may also be tax-deductible.
• Don’t give out personal financial information such as Social Security numbers or credit card and bank account numbers and passwords to anyone who solicits a contribution.
• Don’t give or send cash. For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the gift.
• Bogus Web sites may solicit funds for victims of this tragedy, frequently mimicking the sites of legitimate charities or claiming to be affiliated with legitimate charities.
• Scammers often send e-mails that steer recipients to bogus sites that appear to be affiliated with legitimate charitable causes.
• Taxpayers suspecting fraud by e-mail should visit IRS.gov and search for the keywords “Report Phishing.” More information about tax scams and schemes may be found at IRS.gov using the keywords “scams and schemes”.

For help with any tax question call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Madison Heights 248.544.6160, Royal Oak 248.399.7331,

Saginaw 989.782.1985, or St. Clair Shores 313.371.6600

Along with saving taxes, a retirement plan also secures your future. You can save more in taxes by choosing the right kind of retirement plans according to your financial situation. Before you select one, it’s important to know the various types of retirement plans available:

1. Individual Retirement Arrangements (IRAs)

2. Roth IRAs

3. 401(k) Plans

4. 403(b) Plans

5. SIMPLE IRA Plans (Savings Incentive Match Plans for Employees)

6. SEP Plans (Simplified Employee Pension)

7. SARSEP Plans (Salary Reduction Simplified Employee Pension)

8. Payroll Deduction IRAs

9. Profit-Sharing Plans

10. Defined Benefit Plans

11. Money Purchase Plans

12. Employee Stock Ownership Plans (ESOPs)

13. 457 Plans

14. 409A Nonqualified Deferred Compensation Plans 

Contributions to retirement plans are usually tax deductible. You can claim a deduction on your individual federal income tax return for the amount you contributed to your IRA. Roth IRA deductions, however, are not deductible. With the exception of a Roth, contributions and investment gains are not taxed until they are distributed.

Businesses offering retirement plans to their employees can help them save taxes and reduce turnover by making this perk attractive to workers.

The sooner you start making contributions to your plan(s), the more you will have when you retire. Before setting up a retirement plan, consult a tax professional in one of our offices.

Our offices are located in:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Madison Heights 248.544.6160, Royal Oak 248.399.7331,

Saginaw 989.782.1985, and St. Clair Shores 313.371.6600

You can use tax credits and deductions to lower your tax liability, but you can also lower your taxes by using tax tips throughout the year. Here are a few:

Contribute more to your retirement savings – A good way to lower your tax bill is to begin contributing more to your IRA and other retirement accounts. Make sure you check the details of any retirement account you have; you may be able to deduct some or all of your contributions. That will reduce your taxable income because the amount you contribute will not be counted as taxable income.

Check your withholdings – You should check your withholdings if you received a big tax refund. If you are an employee, it likely means that you are withholding more than required. Paying too much in taxes is like giving a free loan to the government. If you withhold less, you get to keep more in your pocket throughout the year.

Account for job-hunting expenses – If you look for a job when you are unemployed, you can deduct the expenses incurred for transportation, food, and resume costs. Just keep in mind that if you are looking for a job in a new or different field of work, you cannot deduct job-hunting expenses.

Make charitable donations – If you make a charitable donation, remember to make it to a recognized charity to get the tax benefits.

Cost of moving to a new job – You can deduct the cost of the move if your new job is 50 miles or farther than your home and your old job.

There are other deductions as well such as those for a home computer used for business. Be sure to thoroughly research you options to save on taxes during the year that can really help on your next tax return.

For help with any income tax question call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Madison Heights 248.544.6160, Royal Oak 248.399.7331,

Saginaw 989.782.1985, or St. Clair Shores 313.371.6600

One of the top ways to save taxes is through investments. Investing in tax-saving programs can help you grow your money while paying zero taxes. Here are some investment vehicles that have virtually no risk:

U.S. Savings Bonds, Treasury Bonds, and Securities

The U.S. Treasury offers a variety of investment vehicles, including U.S. Treasury bonds, U.S. Savings Bonds, notes, bills, TIPS, Floating Rate Notes (RTNs). These are endorsed by the federal government. To learn more about each investment program, visit Treasury Direct, a U.S. Department of Treasury website.

Retirement Accounts (Traditional IRA, Roth IRA, 401(k))

Experts believe that you will need at least about 80% of your current income to continue with your current lifestyle after retirement. Saving for retirement is a good way to also save on taxes. The various retirement plans to consider include:

• Individual Retirement Arrangements (IRAs)
• Roth IRAs
• 401(k) Plans and 403(b) Plans
• SIMPLE IRA Plans (Savings Incentive Match Plans for Employees)
• SEP Plans (Simplified Employee Pension)
• SARSEP Plans (Salary Reduction Simplified Employee Pension)
• Payroll Deduction IRAs
• Profit-Sharing Plans
• Defined Benefit Plans
• Money Purchase Plans
• Employee Stock Ownership Plans (ESOPs)
• Governmental Plans
• 457 Plans
• 409A Nonqualified Deferred Compensation Plans

IRAs and 401(k)s are the most commonly used retirement plans. Traditional IRAs and 401(k)s are pre-tax retirement plans, which means that they are funded with income that has not been taxed. However, taxes need to be paid when withdrawals are made. In a Roth IRA, contributions are made with taxed income, but withdrawals are not taxed.

Maxing out retirement accounts each year is one of the top tax-saving strategies used by taxpayers. When it comes to investing, it is better to start as early as possible.

For help with tax planning call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Madison Heights 248.544.6160, Royal Oak 248.399.7331,

Saginaw 989.782.1985, or St. Clair Shores 313.371.6600

Each year, many people get a larger refund than they expected. Some find they owe a lot more tax than they thought they would. If this happened to you, review your situation to prevent another tax surprise. Did you marry? Have a child? Have a change in income? Some life events can have a major effect on your taxes. You can bring the tax you pay closer to the amount you owe. Here are some key IRS tips to help you come up with a plan of action:

• New Job.   When you start a new job, you must fill out a Form W-4, Employee’s Withholding Allowance Certificate and give it to your employer. Your employer will use the form to figure the amount of federal income tax to withhold from your pay. Use the IRS Withholding Calculator on IRS.gov to help you fill out the form. This tool is easy to use and it’s available 24/7.
• Estimated Tax.  If you earn income that is not subject to withholding you may need to pay estimated tax. This may include income such as self-employment, interest, dividends or rent. If you expect to owe a thousand dollars or more in tax, and meet other conditions, you may need to pay this tax. You normally pay it four times a year. Use the worksheet in Form 1040-ES, Estimated Tax for Individuals, to figure the tax.
• Life Events.  Check to see if you need to change your Form W-4 or change the amount of estimated tax you pay when certain life events take place. A change in your marital status, the birth of a child or buying a new home can change the amount of taxes you owe. In most cases, you can submit a new Form W–4 to your employer anytime.
• Changes in Circumstances.   If you are receiving advance payments of the premium tax credit, it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace. You should also notify the Marketplace when you move out of the area covered by your current Marketplace plan. Advance payments of the premium tax credit help you pay for the insurance you buy through the Health Insurance Marketplace. Reporting changes will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance.

For more see Publication 505, Tax Withholding and Estimated Tax. You can get it on IRS.gov/forms at any time.

For a review of your income taxes call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Madison Heights 248.544.6160, Royal Oak 248.399.7331,

Saginaw 989.782.1985, or St. Clair Shores 313.371.6600

When you start a business, a key to your success is to know your tax obligations. You may not only need to know about income tax rules, but also about payroll tax rules. Here are five IRS tax tips that can help you get your business off to a good start.

1. Business Structure. An early choice you need to make is to decide on the type of structure for your business. The most common types are sole proprietor, partnership and corporation. The type of business you choose will determine which tax forms you will file.
2. Business Taxes.  There are four general types of business taxes. They are income tax, self-employment tax, employment tax and excise tax. In most cases, the types of tax your business pays depends on the type of business structure you set up. You may need to make estimated tax payments. If you do, use IRS Direct Pay to pay them. It’s the fast, easy and secure way to pay from your checking or savings account.
3. Employer Identification Number. You may need to get an EIN for federal tax purposes. Search “do you need an EIN” on IRS.gov to find out if you need this number. If you do need one, you can apply for it online.
4. Accounting Method. An accounting method is a set of rules that you use to determine when to report income and expenses. You must use a consistent method. The two that are most common are the cash and accrual methods. Under the cash method, you normally report income and deduct expenses in the year that you receive or pay them. Under the accrual method, you generally report income and deduct expenses in the year that you earn or incur them. This is true even if you get the income or pay the expense in a later year.
5. Employee Health Care. The Small Business Health Care Tax Credit helps small businesses and tax-exempt organizations pay for health care coverage they offer their employees. A small employer is eligible for the credit if it has fewer than 25 employees who work full-time, or a combination of full-time and part-time. The maximum credit is 50 percent of premiums paid for small business employers and 35 percent of premiums paid for small tax-exempt employers, such as charities.

The employer shared responsibility provisions of the Affordable Care Act affect employers employing at least a certain number of employees (generally 50 full-time employees or a combination of full-time and part-time employees). These employers’ are called applicable large employers. ALEs must either offer minimum essential coverage that is “affordable” and that provides “minimum value” to their full-time employees (and their dependents), or potentially make an employer shared responsibility payment to the IRS. The vast majority of employers will fall below the ALE threshold number of employees and, therefore, will not be subject to the employer shared responsibility provisions.

For help with a new or existing business call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Madison Heights 248.544.6160, Royal Oak 248.399.7331,

Saginaw 989.782.1985, or St. Clair Shores 313.371.6600

In most cases, gains from sales are taxable. But did you know that if you sell your home, you may not have to pay taxes? Here are ten facts to keep in mind if you sell your home this year.

1. Exclusion of Gain.  You may be able to exclude part or all of the gain from the sale of your home. This rule may apply if you meet the eligibility test. Parts of the test involve your ownership and use of the home. You must have owned and used it as your main home for at least two out of the five years before the date of sale.
2. Exceptions May Apply.  There are exceptions to the ownership, use and other rules. One exception applies to persons with a disability. Another applies to certain members of the military. That rule includes certain government and Peace Corps workers. For more on this topic, see Publication 523, Selling Your Home.
3. Exclusion Limit.  The most gain you can exclude from tax is $250,000. This limit is $500,000 for joint returns. The Net Investment Income Tax will not apply to the excluded gain.
4. May Not Need to Report Sale.  If the gain is not taxable, you may not need to report the sale to the IRS on your tax return.
5. When You Must Report the Sale.  You must report the sale on your tax return if you can’t exclude all or part of the gain. You must report the sale if you choose not to claim the exclusion. That’s also true if you get Form 1099-S, Proceeds From Real Estate Transactions. If you report the sale, you should review the Questions and Answers on the Net Investment Income Tax on IRS.gov.
6. Exclusion Frequency Limit.  Generally, you may exclude the gain from the sale of your main home only once every two years. Some exceptions may apply to this rule.
7. Only a Main Home Qualifies.  If you own more than one home, you may only exclude the gain on the sale of your main home. Your main home usually is the home that you live in most of the time.
8. First-time Homebuyer Credit.  If you claimed the first-time homebuyer credit when you bought the home, special rules apply to the sale. For more on those rules, see Publication 523.
9. Home Sold at a Loss.  If you sell your main home at a loss, you can’t deduct the loss on your tax return.
10. Report Your Address Change.  After you sell your home and move, update your address with the IRS. To do this, file Form 8822, Change of Address. You can find the address to send it to in the form’s instructions on page two. If you purchase health insurance through the Health Insurance Marketplace, you should also notify the Marketplace when you move out of the area covered by your current Marketplace plan.

For help with any income tax question call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Madison Heights 248.544.6160, Royal Oak 248.399.7331,

Saginaw 989.782.1985, or St. Clair Shores 313.371.6600

Tax Day has come and gone, but don’t go anywhere! We are still available to help with tax issues.

Why Would You Need Support in the Off-Season?

Taxes never go away, and neither do we. Let’s say you filed a tax return and later found an error. You may want to amend your return. We can walk you through the process, answer questions, and prepare and file your amended tax return.

Or, you could be one of the many taxpayers who filed an extension for your 2015 tax return. You have until Oct. 17 to file, and, between now and then, we are available to prepare your tax return.

We can also assist taxpayers who receive correspondence from the IRS and are unsure how to proceed. Remember, the IRS typically initiates contact with taxpayers via U.S. mail. If you get a call or email from someone claiming to be with the IRS and want to know if the call is legitimate, we can help.

Benefits of Year-Round Support

Just because your check has arrived, doesn’t mean we check out. Sure, our hours change in the off-season, but we’re still available to discuss tax issues, even if you had your tax return prepared somewhere else. Our consultations are free of charge.

For help with any income tax question call one of our local offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Madison Heights 248.544.6160, Royal Oak 248.399.7331,

Saginaw 989.782.1985, or St. Clair Shores 313.371.6600

Not filing a tax return generates more in penalties than not paying taxes. If you are required to file a tax return and you do not, the IRS charges 5% in penalties. Even if you owe no taxes, you still need to file your return. Also, regardless of whether you pay your entire tax bill, you should file your return and pay as much as you can.

Tax Return and Back Taxes

If you did not file your return because you could not pay your full tax bill, then you may incur a penalty for non-filing and also the penalty for non-payment of taxes (typically, the larger of the two penalties apply in such a case). To avoid the non-filing penalty of 5%, you should file your return even if you cannot afford to pay your entire tax bill.

Tax Return and Collection Action

The IRS can begin collection action even if you do not file your tax return. As a replacement for your return, the IRS files a Substitute for Return (SFR). Using information from third party sources such as employers and banks, the IRS estimates your tax bill. Based on this estimate, they file the SFR.

After the filing of an SFR, the IRS begins sending out notices to the taxpayer. If these notices go unanswered and no resolution effort is made, the IRS can move on to more aggressive collection efforts, such as a wage or bank levy.

To avoid paying more in penalties and to prevent collection action, it is critical to file your tax return on time. If for any reason you feel that you won’t be able to file your return by the due date, you should request an extension to get more time to file.

For help with any income tax question call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Madison Heights 248.544.6160, Royal Oak 248.399.7331,

Saginaw 989.782.1985, or St. Clair Shores 313.371.6600

The IRS recognizes Small Business Week May 1–7 by highlighting some of its most popular educational products, videos and webinars to help your small business thrive. If you are a self-employed landscaper or gardener, be sure to view the IRS webinar “Business Taxes for the Self-Employed: The Basics.” Here are some topics included in the webinar or on IRS.gov that you should know:

• Accounting Method.  An accounting method is a set of rules about when to report income and expenses. Many small businesses use the cash method. Under the cash method, you normally report income in the year that you receive it and deduct expenses in the year that you pay them. Find out more in IRS Publication 538, Accounting Periods and Methods.
• Business Taxes.  There are four general types of business taxes. They are income tax, self-employment tax, employment tax and excise tax. You may need to pay self-employment tax as well as income tax if you make a profit. Self-employment tax includes Social Security and Medicare taxes. With estimated tax payments, you pay taxes at various times during the year to ensure you don’t have a large tax bill when you file your tax return. Use IRS Direct Pay, the fast, easy and secure way to pay from your checking or savings account.
• Tax Forms.  There are two forms to report self-employment income. You must file a Schedule C, Profit or Loss from Business, or Schedule C-EZ, Net Profit from Business, with your Form 1040. You may use Schedule C-EZ if you had expenses less than $5,000 and meet other conditions. See the form instructions to find out if you can use the form. Use Schedule SE, Self-Employment Tax, to figure your SE tax. If you owe this tax, make sure you file the schedule with your federal tax return.
• Allowable Deductions.  You can deduct expenses you paid to run your business that are both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and proper for your trade or business. View the webinar “Small Business Owners: Get All the Tax Benefits You Deserve” to learn more.
• Business Use of a Vehicle.  If you use your car or truck for your business, you may be able to deduct the costs to operate the vehicle for the business use. Refer to IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses for details.

For help with your business or personal taxes call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Madison Heights 248.544.6160, Royal Oak 248.399.7331,

Saginaw 989.782.1985, or St. Clair Shores 313.371.6600