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David Knoble, CPA, PLLC http://blog.knoblecpa.com Serving Non-Profits, Privately Owned Businesses & Individuals Thu, 29 Aug 2013 12:13:54 +0000 en hourly 1 http://wordpress.org/?v= Individual’s Health Care Requirements — Final Rules Issued http://blog.knoblecpa.com/2013/08/individuals-health-care-requirements-final-rules-issued/ http://blog.knoblecpa.com/2013/08/individuals-health-care-requirements-final-rules-issued/#comments Thu, 29 Aug 2013 12:13:54 +0000 david.knoble http://blog.knoblecpa.com/?p=455 The IRS has now released the final regulations governing the requirements for individuals to carry health care insurance.  There has been legislation and editorial matter daily since the original act was passed.  The end result is the legislation will help some and hurt others.  One of the keys to understanding these IRS regulations is . . . → Read More: Individual’s Health Care Requirements — Final Rules Issued]]> The IRS has now released the final regulations governing the requirements for individuals to carry health care insurance.  There has been legislation and editorial matter daily since the original act was passed.  The end result is the legislation will help some and hurt others.  One of the keys to understanding these IRS regulations is to grasp the definition of excluded individuals.  If you fall into this category, the rest does not apply.

See this excellent article from the AICPA in their Tax Advisor.

© 2013, david.knoble
by David Knoble, CPA, PLLC
Serving Non-Profits, Businesses & Individuals
Rock Hill, SC
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Strong, Smart Growth http://blog.knoblecpa.com/2012/12/strong-smart-growth/ http://blog.knoblecpa.com/2012/12/strong-smart-growth/#comments Thu, 13 Dec 2012 14:46:22 +0000 david.knoble http://blog.knoblecpa.com/?p=446 It is not often that we write about our clients’ successes.  However, when a client receives special recognition, we want to share the story.  The Darton Group in Charlotte, NC specializes in finance, accounting and project management consulting.  Now the Charlotte Business Journal ranks them as the 6th fastest growing private company in the . . . → Read More: Strong, Smart Growth]]> It is not often that we write about our clients’ successes.  However, when a client receives special recognition, we want to share the story.  The Darton Group in Charlotte, NC specializes in finance, accounting and project management consulting.  Now the Charlotte Business Journal ranks them as the 6th fastest growing private company in the area during 2012.  Read more about them and the Fast 50.

© 2012, david.knoble
by David Knoble, CPA, PLLC
Serving Non-Profits, Businesses & Individuals
Rock Hill, SC
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3.6 Million Social Security Numbers Compromised in South Carolina http://blog.knoblecpa.com/2012/10/3-6-million-social-security-numbers-compromised-in-south-carolina/ http://blog.knoblecpa.com/2012/10/3-6-million-social-security-numbers-compromised-in-south-carolina/#comments Tue, 30 Oct 2012 11:46:42 +0000 david.knoble http://blog.knoblecpa.com/?p=439 The South Carolina Department of Revenue announced in a press release on October 26, 2012 that not only were 3.6 million social security numbers exposed as the result of a foreign cyber attack, but approximately 387,000 debit and credit card numbers were also exposed.  Additionally, some of the data was not encrypted and those . . . → Read More: 3.6 Million Social Security Numbers Compromised in South Carolina]]> The South Carolina Department of Revenue announced in a press release on October 26, 2012 that not only were 3.6 million social security numbers exposed as the result of a foreign cyber attack, but approximately 387,000 debit and credit card numbers were also exposed.  Additionally, some of the data was not encrypted and those anywhere in the United States or abroad that filed a South Carolina tax return between 1998 and 2011 are at risk.  The South Carolina Department of Revenue has setup a web page to update everyone on the progress of resolutions and steps that can be taken by each individual taxpayer.  That web page is http://www.sctax.org/security.htm.  The phone number to call listed on this web site is open 7 days a week, although the lines have been so busy the wait time is very long.

We do not yet know the full ramifications to the resources of the South Carolina Department of Revenue and have asked for assistance as South Carolina CPA’s to block file any necessary SC Forms, IRS forms and other paperwork on behalf of our clients.  As of yet we are unable to assist our clients in mass, so action will need to be taken at the individual level.

If you are affected by this problem, we recommend you also file an Identity Theft Affidavit, or Form 14039 with the Internal Revenue Service.  You can find out more about this general process at the IRS’s ID Theft Tool Kit page.

Finally, we have also spoken to some banker’s in the area who strongly suggest you consider cancelling any debt or credit card you may have used to pay for any South Carolina taxes owed and ask the bank to reissue that card.  While that takes time to transfer any automatic drafts that may be used with that card, it will ensure some additional protection should someone be able to fraudulently charge items on your account.  Contact your bank to have them help you through that process.  If you did not use a debit or credit card to pay taxes on your return, that information should not be stored in the South Carolina Department of Revenue database and should not be compromised as a result of this cyber attack.

We do not yet know the ramifications of submitting for a refund or payment using a bank account.  However, we will post that information once obtained.

© 2012, david.knoble
by David Knoble, CPA, PLLC
Serving Non-Profits, Businesses & Individuals
Rock Hill, SC
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Not Just Financial Planning … http://blog.knoblecpa.com/2012/08/not-just-financial-planning/ http://blog.knoblecpa.com/2012/08/not-just-financial-planning/#comments Mon, 20 Aug 2012 15:02:13 +0000 david.knoble http://blog.knoblecpa.com/?p=436 Most people believe a CPA is only to help with financial planning. However, we also help manage risk. You have risks you probably haven’t though about. Even if you aren’t self employed, have you thought about what happens if you or your spouse suddenly becomes deceased? Ok, so the answer is yes, you have . . . → Read More: Not Just Financial Planning …]]> Most people believe a CPA is only to help with financial planning. However, we also help manage risk. You have risks you probably haven’t though about. Even if you aren’t self employed, have you thought about what happens if you or your spouse suddenly becomes deceased? Ok, so the answer is yes, you have a will. That’s not what I’m talking about and it probably means you have a risk you haven’t prepared for.

Do you have a home computer with all your important documents scanned? If you are like me, you love that Neat Receipts Scanner and now you scan those papers in and throw them out! So here’s my question — who knows your password and can get access to those documents? “No one!” you say? Then how will someone help take care of your estate, or worse, your children? You need to have a plan in place for an executor or trustee to get access to your electronic stash of important documents.

More importantly for e small business owner, what is that password for the server? What is that password for the Quickbooks or accounting package? If a significant asset in your estate is a private business, you don’t want to lose the value if no one can continue to run the business when you are gone.

No more are the days of going through someone’s files or bookcase looking for life policies, bank statements and passwords. Everything is becoming more and more electronic and the risks are increasing.

If you haven’t addressed that risk, then contact us and let us help you. Your family will be glad you did.

© 2012, david.knoble
by David Knoble, CPA, PLLC
Serving Non-Profits, Businesses & Individuals
Rock Hill, SC
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Identity Theft for the Deceased? http://blog.knoblecpa.com/2012/06/identity-theft-for-the-deceased/ http://blog.knoblecpa.com/2012/06/identity-theft-for-the-deceased/#comments Fri, 01 Jun 2012 12:57:14 +0000 david.knoble http://blog.knoblecpa.com/?p=427 A deceased family members is always a tough topic.  It is still tough in our own family.  It’s not often that I post links to articles outside of our blog, but this article deserves some attention.  It discusses the steps necessary after a loved-one is deceased to protect the family from identity theft.  The . . . → Read More: Identity Theft for the Deceased?]]> A deceased family members is always a tough topic.  It is still tough in our own family.  It’s not often that I post links to articles outside of our blog, but this article deserves some attention.  It discusses the steps necessary after a loved-one is deceased to protect the family from identity theft.  The difference in this type of identity theft and that of your identity is that you actively protect your id (I hope).  Do you protect deceased family member’s id’s?

The article Avoiding ID Theft On Dead Family Members is an eye opening article.  They also reference a non-profit entity to help if identity theft occurs, regardless of whose identity is stolen.  I am not familiar with this group, the Identity Theft Resource Center, but the information is abundant on their web site.

The message here is that there is one more item that deserves some attention after losing a loved-one.  Be sure to have someone help you complete this task or do it yourself.

© 2012, david.knoble
by David Knoble, CPA, PLLC
Serving Non-Profits, Businesses & Individuals
Rock Hill, SC
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1099’s Must Be Sent Out! http://blog.knoblecpa.com/2012/01/1099s-must-be-sent-out/ http://blog.knoblecpa.com/2012/01/1099s-must-be-sent-out/#comments Thu, 19 Jan 2012 14:52:38 +0000 david.knoble http://blog.knoblecpa.com/?p=421 There are new questions on 2011 tax forms for Corporations, S-Corporations and Schedule C businesses that should encourage you to be sure and send out your 1099’s.  The questions on the tax returns ask if a) you made any payments in 2011 that would require you to file 1099’s and b) if yes, did . . . → Read More: 1099’s Must Be Sent Out!]]> There are new questions on 2011 tax forms for Corporations, S-Corporations and Schedule C businesses that should encourage you to be sure and send out your 1099’s.  The questions on the tax returns ask if a) you made any payments in 2011 that would require you to file 1099’s and b) if yes, did you file all 1099’s?

Remember, there are stiff penalties for fraudulently reporting information on a tax return.  So, the best solution, as always, is to comply with the law.  Be sure to start checking through your W-9’s and ensure you have proper social security numbers and addresses!

Your CPA can help if you are not sure what to do.

© 2012, david.knoble
by David Knoble, CPA, PLLC
Serving Non-Profits, Businesses & Individuals
Rock Hill, SC
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When are Individual Taxes Due in 2011? http://blog.knoblecpa.com/2011/01/when-are-individual-taxes-due-in-2011/ http://blog.knoblecpa.com/2011/01/when-are-individual-taxes-due-in-2011/#comments Thu, 20 Jan 2011 13:33:01 +0000 david.knoble http://blog.knoblecpa.com/?p=413 So the biggest buzz about tax season in 2011 is determining when your tax return must really be filed!  This comes into play most often when you owe the IRS a check because you want to write that check at the last possible moment.  Here is the skinny on this year’s due date.

If . . . → Read More: When are Individual Taxes Due in 2011?]]> So the biggest buzz about tax season in 2011 is determining when your tax return must really be filed!  This comes into play most often when you owe the IRS a check because you want to write that check at the last possible moment.  Here is the skinny on this year’s due date.

If you look at your calendar this year, April 15th falls on a friday.  There is no holiday on friday, but the federal government has moved the due date for income taxes to Monday, April 18th, 2011.  Why?  The answer isn’t so simple.

Saturday, April 16th is Emancipation Day, which is a Washington, DC holiday.  Because that holiday is a Saturday, they will observe it on Friday, April 15th.  Now that April 15th is a holiday, the federal government moved the due date to April 18th, the next business day.  Whew!

HOWEVER, don’t get caught in the state trap.  Make sure that your state tax return is submitted by the correct date.  Both North Carolina and South Carolina departments of revenue have moved their due date for individual tax returns to follow the federal government and they are due on Monday, April 18th.  Be sure your state has done the same.

More importantly, many of the tax forms will still reflect an April 15th due date.  While this is incorrect, the money will not be spent to change the dates.  Enjoy the extra time this year if you need it!

© 2011, david.knoble
by David Knoble, CPA, PLLC
Serving Non-Profits, Businesses & Individuals
Rock Hill, SC
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Taxpayers Itemizing Must Wait! http://blog.knoblecpa.com/2010/12/taxpayers-itemizing-must-wait/ http://blog.knoblecpa.com/2010/12/taxpayers-itemizing-must-wait/#comments Mon, 27 Dec 2010 22:08:33 +0000 david.knoble http://blog.knoblecpa.com/?p=410 We are all glad that the new tax law has extended some of the sunset provisions that were going to increase almost all our taxes in 2011 and beyond.  There is a glitch, however, with passing this legislation at such a late hour.

This glitch is the ability for the IRS to prepare the . . . → Read More: Taxpayers Itemizing Must Wait!]]> We are all glad that the new tax law has extended some of the sunset provisions that were going to increase almost all our taxes in 2011 and beyond.  There is a glitch, however, with passing this legislation at such a late hour.

This glitch is the ability for the IRS to prepare the necessary changes to the Schedule A, or itemized deductions form for the personal tax return, Form 1040.  All notices we have received indicate that this form will be done by the middle or end of February, 2011.

This means if you itemize your deductions on your tax return for mortgage interest, property taxes, contributions, and other items, you will not be able to file your taxes until the end of February — whether or not you have a refund.  If you take the standard deduction, then you will be able to file quickly as the new year get’s underway.

The ying and yang of income taxes and the IRS!

© 2010, david.knoble
by David Knoble, CPA, PLLC
Serving Non-Profits, Businesses & Individuals
Rock Hill, SC
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Nonprofit Leveraging of Assets http://blog.knoblecpa.com/2010/10/nonprofit-leveraging-of-assets/ http://blog.knoblecpa.com/2010/10/nonprofit-leveraging-of-assets/#comments Fri, 08 Oct 2010 17:44:53 +0000 david.knoble http://blog.knoblecpa.com/?p=405 Nonprofit organizations are given tax advantages because even the IRS realizes that nonprofits never have enough contributions or grants to do all their mission entails. This means the nonprofit world is constantly looking for ways to leverage every dollar in their wallet. However, even nonprofit organizations sometimes have to bite the bullet and spend . . . → Read More: Nonprofit Leveraging of Assets]]> Nonprofit organizations are given tax advantages because even the IRS realizes that nonprofits never have enough contributions or grants to do all their mission entails. This means the nonprofit world is constantly looking for ways to leverage every dollar in their wallet. However, even nonprofit organizations sometimes have to bite the bullet and spend money in order to receive more money.

Just like a business, a nonprofit organization has to pay close attention to it’s customers and sources of revenue.  One of the best ways to generate revenue today is through a well designed and maintained web site.  The Charlotte Business Journal released an article today that discusses ‘tech services’ and how various nonprofit organizations in our area are best capitalizing on those services.

The article gives us success stories about the United Way of Central Carolinas, Inc. and YWCA Central Carolinas.  They have used NPower Charlotte Region to build their web sites with strong content and the ability for people to make donations over the internet.  In today’s cash poor economy, many are making donations with credit cards to get additional airline mileage or rebates.  Nonprofit organizations need to be able to tap into this market.

If your nonprofit organization does not have a website, or needs to get an updated website, consider outsourcing the work.  The money spent may ensure a timely delivery and quality product that helps raise more money than it costs.  Frequently, a volunteer doesn’t have the full time and attention to accomplish this work.  Most importantly, do your due diligence to find a quality firm.

© 2010, david.knoble
by David Knoble, CPA, PLLC
Serving Non-Profits, Businesses & Individuals
Rock Hill, SC
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Is the End of the S-Corporation Near? http://blog.knoblecpa.com/2010/06/is-the-end-of-the-s-corporation-near/ http://blog.knoblecpa.com/2010/06/is-the-end-of-the-s-corporation-near/#comments Wed, 02 Jun 2010 01:26:00 +0000 david.knoble http://www.knoblecpa.com/blog/?p=337 For years now a great vehicle for starting a small business was the S-Corporation.  Losses can be passed through to the owner during the startup years.  Then, when profits begin, as long as the owner takes a ‘Reasonable Salary,’ the remaining profits are not subject to self-employment.  Well, this may be the last year . . . → Read More: Is the End of the S-Corporation Near?]]> For years now a great vehicle for starting a small business was the S-Corporation.  Losses can be passed through to the owner during the startup years.  Then, when profits begin, as long as the owner takes a ‘Reasonable Salary,’ the remaining profits are not subject to self-employment.  Well, this may be the last year this holds true.  Here’s why.We all remember grade school where a few classmates acted up and the whole class lost recess.  Apparently those same classmates never learned their lesson.  The Treasury found several years ago that tax avoidance at small S-Corporations was extremely high.  Here are some statistics that Kiplinger reported.  First, for one-owner S-Corporations with profits of $100,000 or more over 35,000 owners claimed no wages and paid no self-employment tax.  If you assume that each owner should have taken a salary of $60,000 and paid 7.51% FICA tax, then the total tax for each owner would be $4,506.  For 35,000 taxpayers that would total $158,000,000 in avoided tax!

Second, there were over 40,000 S-Corporations with profits in the $50,000 to $100,000 range that also took zero wages and paid no self-employment tax.  Assuming each owner here should have taken $30,000 as a salary and paid 7.51% self-employment tax, then the total tax for each owner would be $2,253 or $79,000,000 in avoided tax.

As a result, Congress is defining a small ‘Personal Service ‘S-Firm’ or S-Corporation as a business with three or fewer workers reputation or skill make up the primary asset of the company.  Thus, accountants, lawyers, engineers, architects, consultants, etc. will all fit this definition.  Further, Congress will be removing the self-employment limitations on these types of S-Corporations and the profits will be taxable in full.

Thus, because a group of individuals decided to try and scam the IRS for between $2,250 and $4,500 — all small personal service S-Corporations will lose the benefit of lower taxation than partnerships.  I am confident, however, that the $237,000,000 that has been avoided will be made ten-fold under this new guidance.  Expect this to become law for tax years beginning in 2011.

© 2010, david.knoble
by David Knoble, CPA, PLLC
Serving Non-Profits, Businesses & Individuals
Rock Hill, SC
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