The IRS wants us to invent the 48 hour day

"Tax season" as we all know it is an American tradition. For a few months at the beginning of each year everyone is scrambling to find receipts, W-2 forms, mortgage interest, business profits, etc. so that they can get to their tax accountant and find out the good or not-so-good news about their tax bill.  

Most years there is a practical window of about 10 weeks to get all this accomplished, from the first week of February through April 15 (remember, most of us don't even receive all our paperwork from third parties until the end of January).  For me as a CPA, this is my claimed reason for my current hair style, or to be more candid, lack of hair much at all. I've chosen to let my genetics off the hook for this one.

In early January, the IRS announced a delayed, Jan. 30, start to the 2013 tax filing season, and it did not start accepting business tax returns until Feb. 4. The IRS also announced that, because of the need for extensive form and processing systems changes, many taxpayers would not be able to file returns until March -- and when in March we still do not know.

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Online sales taxes back on the Senate's plate

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Time for everyone to 'fess up. Who has ordered goods via the Internet and not paid your state sales tax? As suspected, most everyone is raising their hand. 

Under current law, states can only collect sales taxes from retailers that have a physical presence in their state. While most states do require individuals to report their online purchases when they file their annual tax returns not everyone does.

Shopping online and avoiding sales taxes has indeed saved consumers a lot of money. But it has also created an uneven playing field for brick and mortar retailers versus Internet-based retailers.

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Sneaky Sneaker Tax

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Today's tight economy is forcing governments at every level to stretch for new revenue, with varying degrees of success. In Washington, the dysfunctional family known as "Congress" just raised the top income tax rate to 39.6%, and there are new taxes on earned income and investment income as well. But when President Obama proposed cutting loopholes to raise even more money as an alternative to the budget sequester, his idea was met mostly with scorn.

Most state governments are in fiscal hot water, too. But Illinois may be worst off of all. Nearly $100 billion in unfunded pension liability is crushing the state budget. Last week, the bond ratings agency Standard & Poor's downgraded the Land of Lincoln's score to last in the nation. Ratings rival Moodys ranks Illinois at the same level as the

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Laissez Les Bons Temps Roulez. And Pay Up!

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Last week's Super Bowl in New Orleans was a week-long "fais do do" featuring world-class food, drinks, and music. Advertisers rolled out their newest, shiniest campaigns and newest, shiniest products (Apparently, Anheuser-Busch thinks they need to remind viewers to drink something called "beer"). Sharp-eyed fans even saw a football game between the AFC champion Baltimore Ravens and NFC champion San Francisco 49ers.

The NFL estimated that the game would bring $434 million to the city. While some economists scoff that the real impact is just a fraction of the official estimate, there's no doubt that the Big Easy was thrilled to host their tenth "Big Game." Most of that revenue goes to the hotels, restaurants, and souvenir vendors who open their cash registers to affluent visitors. (While face value for game tickets was "just" $1,015, the average fan paid $3,000 for his seat.) Millions more goes to the bartenders, waiters, cabbies, and hotel staff that take care of those fans. But some of that money actually goes to the players, too. The NFL gave each of the winning Ravens a ring worth $20,000

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Survey of Tax Preparation Costs

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Nationally, tax preparers charge an average of $246 to prepare an itemized Form 1040 with a Schedule A and a state tax return ($288 in California), according to a survey by the National Society of Accountants.

If a professional tax preparer can catch even one more deduction or credit that a taxpayer may have missed, that can pay for the tax prep fee, the NSA noted in its report.

The NSA collected the tax prep fee information through a biennial survey of tax preparers. The tax and accounting firms surveyed are largely owners, principals and partners of local companies who have an average of more than 26 years of experience. The survey included both Certified Public Accountants as well as non-certified preparers.

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For the Record

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Behind every successful small business story there’s a lot of hard work and administrative effort. If, however, you want your business to really flourish your brilliant ideas are only part of the equation. You first need to be sure your company’s administrative foundation is built solid from the ground up.

A cornerstone you should lay when building your business foundation is great record keeping. While this may not be the most glamorous aspect of running a successful business, it is nonetheless a prerequisite to consistently good results.

What are the advantages of good record keeping?

Accurate and consistent records help you keep track of your business progress. Good records accurately show whether your sales are up or down,