Bookkeeping Tooles & Virtual Assistance Services Inc.

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Did You Know....

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Direct Deposit Limits

Posted on December 24, 2014 at 8:00 AM Comments comments (0)

Per the IRS.gov website


In an effort to combat fraud and identity theft, new IRS procedures effective January 2015 will limit the number of refunds electronically deposited into a single financial account or pre-paid debit card to three.  The fourth and subsequent refunds automatically will convert to a paper refund check and be mailed to the taxpayer.


Taxpayers also will receive a notice informing them that the account has exceeded the direct deposit limits and that they will receive a paper refund check in approximately four weeks if there are no other issues with the return. Taxpayers can track their refunds at Where’s My Refund?


The vast majority of taxpayers will not be affected by this limitation, and we would encourage taxpayers and tax preparers to continue to use direct deposit. It is the fastest, safest way for taxpayers to receive refunds. The direct deposit limit will prevent criminals from easily obtaining multiple refunds. The limit applies to financial accounts, such as bank savings or checking accounts, and to prepaid, reloadable cards or debit cards.


However, the limitation may affect some taxpayers, such as families in which the parent’s and children’s refunds are deposited into a family-held bank account. Taxpayers in this situation should make other deposit arrangements or expect to receive paper refund checks.  The new limitation also will protect taxpayers from preparers who obtain payment for their tax preparation services by depositing part or all of their clients’ refunds into the preparers’ own bank accounts. The new direct deposit limits will help eliminate this type of abuse.


NOTE:  Direct deposit must only be made to accounts bearing the taxpayer’s name. Preparer fees cannot be recovered by using Form 8888 to split the refund or by preparers opening a joint bank account with taxpayers. These actions by preparers are subject to penalty under the Internal Revenue Code and to discipline under Treasury Circular 230.

Bookkeeper vs Acct. Paraprofessional

Posted on August 20, 2014 at 7:40 PM Comments comments (0)

According to many websites including theATTC.com, a bookkeeper is a person who records the day-to-day financial transactions of an organization. Day-to-day financial transactions generally consist of sales, accounts receivable, and cash receipts and purchases, accounts payable, and cash payments. The bookkeeper is responsible for ensuring all financial transactions are recorded in the correct journals, subsidiary ledgers, and general ledger.

 


An accounting paraprofessional is generally a person who may perform bookkeeping (write-up), accounting, payroll, or tax preparation services at an accounting firm under the direction of a Certified Public Accountant.


Both can be certified and both can be professional. Accounting Paraprofessional rates can be more expensive than bookkeepers. However Full-Charge Bookkeepers, in particular Certified Bookkeepers can do the same thing for less money. Our service works with CPA's, Forensic Accountants/CPAs and Public Accountants. 


We encourage you to do your homework and we also encourage you to inquire with us. 

Payroll Taxes

Posted on August 14, 2014 at 6:50 PM Comments comments (0)

I was doing some research for a client, to address a concern I was having with their financials, when I gazed upon an article titled, 7 Things small business owners should know about payroll tax problems by Michael Rozbruch a Certified Tax Resolution Specialist (CTRS), licensed CPA and the founder of Tax Resolution Services, published on AccountingWEB.com website.


Some key points:  

Small businesses are the most likely target of increased tax compliance enforcement. Small business owners have been identified by the IRS as the largest source of uncollected taxes. And because they are known to be big tax evaders, the IRS tends to focus their enforcement efforts on small businesses, especially during economic downturns.


Not filing or paying your payroll taxes can be considered a federal crime. The IRS can refer your case to the Criminal Investigation Division and ultimately to the Department of Justice if they can prove that you intentionally (very low thresholds) didn't file and/or pay.


Borrowing from payroll taxes is against the law. Many small and mid-size businesses use the money they collect from payroll taxes to pay their operating expenses. The money collected from employees to pay their share of federal withheld tax, FICA and Medicare (Social Security) does not belong to the business and must be accounted for and paid to the government. Generally, one must make a federal tax deposit (by tax filing service, phone, or in person at a bank) 3 days after the pay date of the pay roll checks.


Interesting huh?






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