ACCOUNTAX SCHOOL OF BUSINESS, INCORPORATED
A Profile in Education
www.accountax.us: email; firstname.lastname@example.org
(708) 720-4547 Fax (731) 518-4046
Marlene Parham Murphy, President, (B.S.A) Bachelor of Science in Business Education, (M.S.A.) Master of Science in Accounting, (E.A.) IRS Enrolled Agent
Hello! Everyone and welcome to the 8th annual client seminar “Let’s Get Your Business Straight”
ABOUT THE COMPANY
APPROVALS AND CERTIFICATIONS
Certificate of Enrollment to Practice before the Internal Revenue Service
Registered as a Not for Profit Private elementary and secondary School Illinois Board of Education.
In the School/After School Programs with the Public Schools
Sponsor for Continuing Legal Education for the state of Mississippi, Tennessee, and Vermont.
Sponsor for Continuing Education for IRS Enrolled Agents
please Read the client letter at the bottom and submit the attendance form, At the bottom before enter into the seminar.
I know that we usually meet in Chicago. However, this year I thought that an on line the seminar would be more advantage to you without the inconvenience of meeting in various places. I hope the information will be beneficial.
First let me acknowledge; I have the best clients in the world; you all are very special to me; You are my client family.
Now that the Corporate filing season, March 15th, is upon us, there are several topics I want to address and then we will proceed with the seminar.
Submissions of tax documents
Thank you for the early submission of documents, at my request.
Filing Annual Corporate Reports and Reinstating Dissolved Corporations
I have already notified all of you about your annual filing due dates.
It is important that you keep your filings up to date. Thank you those of you who
filed your own annual reports and those of you who complied with my request.
Preparations of Financial Statements for Purchases and Submissions to
Financial Institutions (banks, mortgage companies, etc.)
Some of you have contacted me about providing individual tax returns and
financial statements to various lenders for the purpose of apply for mortgages
and other loans.
I have strongly advised all corporate officers to GET ON PAYROLL. There are IRS audits that will take place for corporate shareholders/officers who do not take a “reasonable compensation”. There is no certain amount to withhold for salaries. However, your compensation must be “reasonable”.
If you did not take the relevant steps to get on payroll, as of the 2016 tax year you will notice there is a salary referred to a “Compensation for Independent Services” on your corporate tax returns. This is your salary that will show on your individual 1040 tax returns.
Now let me say a word about the filing of the 1040 tax returns that show reasonable salaries ( Compensation for Independent Services). This amount goes on the 1040 Schedule C and is subject to self employment tax. This means you will pay taxes on this amount and this amount is reported to social security.
Further, I have been holding these 1040 tax returns hoping that payroll processing is on its way. However, when you are requested to provide the 1040 individual tax returns to a lending institution, for the purposes of applying for loans, these tax returns will need to be submitted and the self employment tax will need to be paid. You will also accrue interest and penalties on any late filings.
Getting on payroll would alleviate all of this.
Your will see, I am advising you correctly. Payroll has benefits!!! This leads me to my next topic.
Here are benefits of payroll processing:
· Federal, State, and FICA withholding (Social Security and Medicare) Per the information from our tax seminar, check your social security account. You need to know your “financial position” now and at retirement.
· A w-2 signifies earnings to banks and other financial institutions.
· A w-2 signifies federal and state withholdings that will offset your tax liabilities on the personal tax return.
· A w-2 represents “ reasonable compensation”
· As you can see payroll processing covers a lot of financial concerns. Don’t run from it. Embrace it and use it to your benefit.
Patty Smith is the person in control of my payroll referrals. Patty is the owner of Financial Profilers LLC. Patty has been in business for 40 years. She comes from a generation of Payroll/Accounting/Bookkeeping providers.
Please contact her at:
All payroll records for my clients are submitted directly to me.
Current Fees Charge
As I am sure you have noticed, the fee for your corporate and personal tax returns has increased slightly. This is because the IRS implemented additional mandatory forms (example: EIC and other verifications) that must be submitted in order to e-file the returns. Also, as with any other business service, fees will increase over a period of time to compensate for software to prepare your returns. There will be additional charges for the forms needed to accompany your returns.
My goal is to educate my clients while representing them. Educating clients helps make the business process flow. I hope that seminar will be beneficial as well as information to you all.
Thank You for Being the Best of Clients and for Putting Your Trust in Me!
Your Accountant and IRS Representative, Marlene Parham Murphy