at 236 South Hanover Street, Suite 101, Carlisle, 17013 United States
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We are a Certified Professional Accounting Firm located in Carlisle, Pennsylvania since 1982. Our specialties include tax preparation and consultation, payroll for small businesses starting out to large corporations and bookkeeping. We work with businesses as well as individual clients. If you have any questions about specifics please give us a call!
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Brenneman & Associates PC Receives Top Rating by Peers Carlisle, PA - December 24, 2013 - Brenneman & Associates, PC has announced that it has successfully passed a peer review of its accounting practice. The engagement concluded that the firm complies with all applicable professional standards set by the American Institute of Certified Public Accountants (AICPA), the national professional organization of CPAs. Brenneman & Associates, PC participates in the AICPA Peer Review Program, one of the AICPA-approved practice-monitoring programs. A firm participating in any of these programs must have an independent review of its accounting practice every three years. The Engagement Review was conducted under the auspices of the Pennsylvania Institute of Certified Public Accountants (PICPA) following standards issued by the AICPA. Peer reviews are performed by licensed CPAs who are selected from among the members of the AICPA. Brenneman & Associates, PC serves businesses, individuals, and nonprofit organizations in the greater Carlisle area. The firm provides a full range of accounting, tax, and business consulting services. The AICPA is the national professional organization of CPAs with more than 300,000 members in public practice, industry, government and education. AICPA members are committed to the highest standards of quality, independence and ethics in their practice. In its continuing efforts to serve the public interest, the organization sets audit standards, upholds the profession's code of conduct, provides continuing professional education, administers peer review programs, and prepares and grades the Uniform CPA Examination. Brenneman & Associates, PC is a member of the Pennsylvania Institute of Certified Public Accountants (PICPA) and the American Institute of Certified Public Accountants (AICPA), private companies, National Society of Accountants (NSA), and the Pennsylvania Society of Tax and Accounting Professionals (PSTAP).
****1099-MISC INFORMATION IS NEEDED**** In order to begin compiling your 2013 tax information, we would appreciate your assistance now. Form 1099-MISC (Miscellaneous Income) must be filed for each non-incorporated person to whom you have paid: (1) at least $10 in royalties, from items such as oil, gas, other mineral properties, patents, copyrights, trade names and trademarks (2) at least $600 in rents (office space and machine rental), services (including parts and materials), attorney fees paid in the course of your trade or business (including corporations that provide legal services), prizes and awards, other income payments, medical and health care payments and crop insurance proceeds.. A Form W-9, Request for Taxpayer Identification Number and Certification (copy enclosed) must be completed by each person meeting the above criteria. The completed forms and the amount paid to them should be forwarded to our office no later than January 15, 2014. If you have any questions, please don’t hesitate to call. 717-245-2726
WATCH OUT!!! SCAMMERS ARE SCAMMING AGAIN!!! IRS-Impersonation Telephone Scam An aggressive and sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be employees of the IRS, but are not. These con artists can sound convincing when they call. They use fake names and bogus IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling. Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting. Or, victims may be told they have a refund due to try to trick them into sharing private information. If the phone isn't answered, the scammers often leave an “urgent” callback request. Note that the IRS will never: 1) call to demand immediate payment, nor will the agency call about taxes owed without first having mailed you a bill; 2) demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe; 3) require you to use a specific payment method for your taxes, such as a prepaid debit card; 4) ask for credit or debit card numbers over the phone; or 5) threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.
IRS Online Directory of Preparers has launched! It lists the following tax pros who have active preparer tax ID numbers: Lawyers, CPAs, enrolled agents, enrolled retirement plan agents, enrolled actuaries and anyone who, by Dec. 2014, met all the requirements for the agency's voluntary annual filing season program. Brenneman & Associates are proud to say that we have a couple of people on the list. Come check us out! http://irs.treasury.gov/rpo/rpo.jsf
WATCH OUT FOR TAX SCAMS! IR-2015-26, Feb. 9, 2015 WASHINGTON — The Internal Revenue Service wrapped up the 2015 "Dirty Dozen" list of tax scams today with a warning to taxpayers about aggressive telephone scams continuing coast-to-coast during the early weeks of this year's filing season. The aggressive, threatening phone calls from scam artists continue to be seen on a daily basis in states across the nation. The IRS urged taxpayers not give out money or personal financial information as a result of these phone calls or from emails claiming to be from the IRS. Phone scams and email phishing schemes are among the "Dirty Dozen" tax scams the IRS highlighted, for the first time, on 12 straight business days from Jan. 22 to Feb. 6. The IRS has also set up a special section on IRS.gov highlighting these 12 schemes for taxpayers. "We are doing everything we can to help taxpayers avoid scams as the tax season continues," said IRS Commissioner John Koskinen. "Whether it's a phone scam or scheme to steal a taxpayer's identity, there are simple steps to take to help stop these con artists. We urge taxpayers to visit IRS.gov for more information and to be wary of these dozen tax scams." Illegal scams can lead to significant penalties and interest for taxpayers, as well as possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice (DOJ) to shutdown scams and prosecute the criminals behind them. Taxpayers should remember that they are legally responsible for what is on their tax returns even if it is prepared by someone else. Make sure the preparer you hire is up to the task. For more see the Choosing a Tax Professional page. For the first time, here is a recap of this year's "Dirty Dozen" scams: •Phone Scams: Aggressive and threatening phone calls by criminals impersonating IRS agents remains an ongoing threat to taxpayers. The IRS has seen a surge of these phone scams in recent months as scam artists threaten police arrest, deportation, license revocation and other things. The IRS reminds taxpayers to guard against all sorts of con games that arise during any filing season. (IR-2015-5) •Phishing: Taxpayers need to be on guard against fake emails or websites looking to steal personal information. The IRS will not send you an email about a bill or refund out of the blue. Don’t click on one claiming to be from the IRS that takes you by surprise. Taxpayers should be wary of clicking on strange emails and websites. They may be scams to steal your personal information. (IR-2015-6) •Identity Theft: Taxpayers need to watch out for identity theft especially around tax time. The IRS continues to aggressively pursue the criminals that file fraudulent returns using someone else’s Social Security number. The IRS is making progress on this front but taxpayers still need to be extremely careful and do everything they can to avoid becoming a victim. (IR-2015-7) •Return Preparer Fraud: Taxpayers need to be on the lookout for unscrupulous return preparers. The vast majority of tax professionals provide honest high-quality service. But there are some dishonest preparers who set up shop each filing season to perpetrate refund fraud, identity theft and other scams that hurt taxpayers. Return preparers are a vital part of the U.S. tax system. About 60 percent of taxpayers use tax professionals to prepare their returns. (IR-2015-8) •Offshore Tax Avoidance: The recent string of successful enforcement actions against offshore tax cheats and the financial organizations that help them shows that it’s a bad bet to hide money and income offshore. Taxpayers are best served by coming in voluntarily and getting their taxes and filing requirements in order. The IRS offers the Offshore Voluntary Disclosure Program (OVDP) to help people get their taxes in order. (IR-2015-09) •Inflated Refund Claims: Taxpayers need to be on the lookout for anyone promising inflated refunds. Taxpayers should be wary of anyone who asks them to sign a blank return, promise a big refund before looking at their records, or charge fees based on a percentage of the refund. Scam artists use flyers, advertisements, phony store fronts and word of mouth via community groups and churches in seeking victims. (IR-2015-12) •Fake Charities: Taxpayers should be on guard against groups masquerading as charitable organizations to attract donations from unsuspecting contributors. Contributors should take a few extra minutes to ensure their hard-earned money goes to legitimate and currently eligible charities. IRS.gov has the tools taxpayers need to check out the status of charitable organizations. Be wary of charities with names that are similar to familiar or nationally known organizations. (IR-2015-16) •Hiding Income with Fake Documents: Hiding taxable income by filing false Form 1099s or other fake documents is a scam that taxpayers should always avoid and guard against. The mere suggestion of falsifying documents to reduce tax bills or inflate tax refunds is a huge red flag when using a paid tax return preparer. Taxpayers are legally responsible for what is on their returns regardless of who prepares the returns. (IR-2015-18) •Abusive Tax Shelters: Taxpayers should avoid using abusive tax structures to avoid paying taxes. The IRS is committed to stopping complex tax avoidance schemes and the people who create and sell them. The vast majority of taxpayers pay their fair share, and everyone should be on the lookout for people peddling tax shelters that sound too good to be true. When in doubt, taxpayers should seek an independent opinion regarding complex products they are offered. (IR-2015-19) •Falsifying Income to Claim Credits: Taxpayers should avoid inventing income to erroneously claim tax credits. Taxpayers are sometimes talked into doing this by scam artists. Taxpayers are best served by filing the most-accurate return possible because they are legally responsible for what is on their return. (IR-2015-20) •Excessive Claims for Fuel Tax Credits: Taxpayers need to avoid improper claims for fuel tax credits. The fuel tax credit is generally limited to off-highway business use, including use in farming. Consequently, the credit is not available to most taxpayers. But yet, the IRS routinely finds unscrupulous preparers who have enticed sizable groups of taxpayers to erroneously claim the credit to inflate their refunds. (IR-2015-21) •Frivolous Tax Arguments: Taxpayers should avoid using frivolous tax arguments to avoid paying their taxes. Promoters of frivolous schemes encourage taxpayers to make unreasonable and outlandish claims to avoid paying the taxes they owe. These arguments are wrong and have been thrown out of court. While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law or disregard their responsibility to pay taxes. The penalty for filing a frivolous tax return is $5,000. (IR-2015-23)
Topic 305 - Recordkeeping Well-organized records make it easier to prepare a tax return and help provide answers if your return is selected for examination or to prepare a response if you receive an IRS notice. Records such as receipts, canceled checks and other documents that support an item of income or a deduction, or a credit appearing on a return must be kept so long as they may become material in the administration of any internal revenue law, which generally will be until the period of limitation expires for that return. For assessment of tax you owe, this generally is 3 years from the date you filed the return. Returns filed before the due date are treated as filed on the due date. There is no period of limitations to assess tax when a return is fraudulent or when no return is filed. If income that you should have reported is not reported, and it is more than 25% of the gross income shown on the return, the time to assess is 6 years from when the return is filed. For filing a claim for credit or refund, the period to make the claim generally is 3 years from the date the original return was filed (or the due date for filing the return if the return was filed before that date), or 2 years from the date the tax was paid, whichever is later. For filing a claim for an overpayment resulting from a bad debt deduction or a loss from worthless securities, the time to make the claim is 7 years from when the return was due. In tax years 2014 and later, you should keep records of your own and your family members’ health care insurance coverage, including records of employer provided coverage or premiums paid and type of coverage for private coverage, so you can show that you and your family members had and maintained required minimum essential coverage. If you are claiming the premium tax credit, you will need information about any advance credit payments you received through the Health Insurance Marketplace, the premiums you paid, and the type of coverage you obtained at the Marketplace. If you or any of your family members are exempt from minimum essential coverage, you should retain certificates of exemption you may receive from the Marketplace or any other documentation to support an exemption claimed on your tax return. If you have employees, you must keep all your employment tax records for at least 4 years after the tax becomes due or is paid, whichever is later. For more information, see Publication 15, (Circular E), Employer's Tax Guide. If you are in business, there is no particular method of bookkeeping you must use. However, you must use a method that clearly and accurately reflects your gross income and expenses. The records should substantiate both your income and expenses. Publication 583, Starting a Business and Keeping Records, and Publication 463, Travel, Entertainment, Gift, and Car Expenses, provide additional information on required documentation for taxpayers with business expenses. Publication 17, Your Federal Income Tax for Individuals, provides more information on recordkeeping requirements for individuals.
Today is the first day we can E-file tax returns!!! Ohhhh the excitement! Don't forget about your 1099's too!!
New & Old 1099-MISC Information...tis the season! Form 1099-MISC (Miscellaneous Income) must be filed for each non-incorporated person to whom you have paid: (1) at least $10 in royalties, from items such as oil, gas, other mineral properties, patents, copyrights, trade names and trademarks (2) at least $600 in rents (office space and machine rental), services (including parts and materials), attorney fees paid in the course of your trade or business (including corporations that provide legal services), prizes and awards, other income payments, medical and health care payments and crop insurance proceeds. **NEW**The IRS announced late in 2013 that veterinarians meet the definition of medical provider and therefore payments made by a taxpayer in the course of the taxpayer’s trade or business to an incorporated veterinarian must be reported to the IRS to the extent the payments aggregate to $600 or more per year. Incorporated veterinarians are not exempted from the reporting requirement by Treas. Reg. § 1.6041-3(p)(1) because veterinarians are “engaged in providing medical and healthcare services” for the purposes of Treas. Reg. § 1.6041-3(p)(1). ~ IRS.gov
What's New for Farmers in 2014? (Schedule F) • In IRS Notice 2014-60 the IRS granted an additional one year to reinvest sales proceeds from drought related livestock sales to a total of five years. The one year extension of the replacement period generally applies to capital gains realized by eligible farmers and ranchers on sales of livestock held for draft, dairy or breeding purposes due to drought. Sales of other livestock, such as those raised for slaughter or held for sporting purposes, and poultry are not eligible. The IRS is providing this relief to any farm located in a county, parish, city, borough, census area or district, listed as suffering exceptional, extreme or severe drought conditions by the National Drought Mitigation Center (NDMC), during any weekly period between Sept. 1, 2013, and Aug. 31, 2014. All or part of 30 states are listed. Any county contiguous to a county listed by the NDMC also qualifies for this relief. As a result, farmers and ranchers in these areas whose drought sale replacement period was scheduled to expire at the end of this tax year, Dec. 31, 2014, in most cases, will now have until the end of their next tax year. Because the normal drought sale replacement period is four years, this extension immediately impacts drought sales that occurred during 2010. But because of previous drought-related extensions affecting some of these localities, the replacement periods for some drought sales before 2010 are also affected. Additional extensions will be granted if severe drought conditions persist. • The IRS announced late in 2013 that veterinarians meet the definition of a medical provider. This means that a farmer paying a veterinarian more than $600 in one year, even if the veterinarian is incorporated, must issue the vet a 1099- Misc with the amount paid entered in Box 6 as medical and health care payments.-Jennings Advisory Group 10/8/2014
Six IRS Tips for Year-End Gifts to Charity IRS Special Edition Tax Tip 2014-23, November 17, 2014 Many people give to charity each year during the holiday season. Remember, if you want to claim a tax deduction for your gifts, you must itemize your deductions. There are several tax rules that you should know about before you give. Here are six tips from the IRS that you should keep in mind: 1.Qualified charities. You can only deduct gifts you give to qualified charities. Use the IRS Select Check tool to see if the group you give to is qualified. Remember that you can deduct donations you give to churches, synagogues, temples, mosques and government agencies. This is true even if Select Check does not list them in its database. 2.Monetary donations. Gifts of money include those made in cash or by check, electronic funds transfer, credit card and payroll deduction. You must have a bank record or a written statement from the charity to deduct any gift of money on your tax return. This is true regardless of the amount of the gift. The statement must show the name of the charity and the date and amount of the contribution. Bank records include canceled checks, or bank, credit union and credit card statements. If you give by payroll deductions, you should retain a pay stub, a Form W-2 wage statement or other document from your employer. It must show the total amount withheld for charity, along with the pledge card showing the name of the charity. 3.Household goods. Household items include furniture, furnishings, electronics, appliances and linens. If you donate clothing and household items to charity they generally must be in at least good used condition to claim a tax deduction. If you claim a deduction of over $500 for an item it doesn’t have to meet this standard if you include a qualified appraisal of the item with your tax return. 4.Records required. You must get an acknowledgment from a charity for each deductible donation (either money or property) of $250 or more. Additional rules apply to the statement for gifts of that amount. This statement is in addition to the records required for deducting cash gifts. However, one statement with all of the required information may meet both requirements. 5.Year-end gifts. You can deduct contributions in the year you make them. If you charge your gift to a credit card before the end of the year it will count for 2014. This is true even if you don’t pay the credit card bill until 2015. Also, a check will count for 2014 as long as you mail it in 2014. 6.Special rules. Special rules apply if you give a car, boat or airplane to charity. For more information visit IRS.gov. If you found this Tax Tip helpful, please share it through your social media platforms. A great way to get tax information is to use IRS Social Media. Subscribe to IRS Tax Tips or any of our e-news subscriptions.
PA-1000 Instruction Changes A personal representative of a deceased claimant "which is a person who died during the claim year who would otherwise be an eligible claimant (65 or older, with spouse 65 or older who resided in the same household; widow or widower, age 50 to 64 or permanently disabled and age 18 to 64)" is no longer required to live an entire year to file. The change begins for the tax year 2013. A copy of death certificate is required. The deceased had to have lived at least 1 day and paid rent or real estate taxes during that year. The filing period is January 1, 2014 to December 31, 2014.
A tightening of the one-rollover-every-12-months rule takes effect in 2015. In Jan., the Tax Court decided that for taxpayers who have multiple IRAs, this rule applies on an aggregate basis to all IRAs, and not on an IRA-by-IRA basis. So if a filer taps an IRA and timely rolls the funds back, he or she can't withdraw funds form any other IRA during the following 12 months and do another tax-free rollover. Because the Court's ruling conflicted with an IRS proposed regulation and Pub. 590, the Service decided to defer applying the more stringent interpretation until after 2014.-Kiplinger Vol.89, No.19