IRS Simplifies Taxpayer Correspondence
January 25, 2010 | 
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The IRS has released nine redesigned notices intended to be clearer and more effective and efficient at communicating IRS information.
In July of 2009, the IRS developed a committee to review IRS correspondence. Among the finding was that IRS notices can be unnecessarily confusing. Previously, communication was designed under a decentralized and fragmented approach, creating confusion and inefficiency.
Currently, the IRS uses 1,000 different notices, and sends out approximately 200 million notices annually. The new system has created 9 standard notices, designed to reduce the potential for confusion and improve taxpayers’ ability to resolve problems quickly. They feature a consistent design: a plain-language explanation of the nature of the correspondence and a clear statement of what action the taxpayer must take.
The Nine Redesigned Notices are:
- Additional Child Tax Credit
- Undelivered Refund Notice
- Unable to Direct Deposit
- Potential Exemption from AMT
- Forms 940/941 May Not be Required
- Confirmation of Tax-Exempt Status Required
- Insufficient Funds on Direct Debit Installment Agreement
- Taxpayer Not Liable to File Form 720
- Strategic Roadmap for Taxpayer Correspondence Credit Elect Change.
The creation of the Office of Taxpayer Correspondence will continue to oversee improvements to correspondence.
Submitted by Sam Cohen
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GJ Adds Healthcare Expertise
January 21, 2010 | Subscribe to our RSS Feed
FOR IMMEDIATE RELEASE
CONTACT
Jeffrey Bukowski
443-655-3774
jdbukowski@bukowskipr.com
Glass Jacobson Adds Significant Healthcare Expertise
Trotta, Koppelman and team provide
more than 60 years combined experience in healthcare finance
OWINGS MILLS, Md. – December 9, 2009 – Wealth management and CPA firm Glass Jacobson is pleased to announce the addition of Patrick V. Trotta, CPA and Mark S. Koppelman, CPA and their team to the firm’s practice. With more than 60 years of experience between them in the healthcare field, the addition of Mr. Trotta and Mr. Koppelman significantly bolsters Glass Jacobson’s ability to provide “one-stop shopping” for all of its clients’ financial needs.
Mr. Trotta has spent a significant portion of his career consulting with healthcare providers on third-party reimbursement issues, such as Medicare and Medicaid, and financial issues. He was a member of the group that analyzed the Nursing Home Case Mix Quality Demonstration Project, which was utilized in developing the current Prospective Payment System (PPS) for Skilled Nursing Facilities (SNFs).
Mr. Koppelman specializes in Medicare and Medicaid issues and provides corporate compliance consulting and litigation support to a variety of healthcare providers. Both join Glass Jacobson from management consulting firm Sacks, Trotta, Koppelman, where Mr. Trotta was a founding member and Mr. Koppelman had been a member since 1983.
At Glass Jacobson, Mr. Trotta, Mr. Koppelman and their team – Bill List, Jennifer Verch and Carolyn Cunningham, all of whom come to Glass Jacobson with Mr. Trotta and Mr. Koppelman – will work with healthcare providers with a wide range of financial advisory services, including:
- Audit, Accounting and Tax Services
- Corporate Compliance
- Billing and Accounts Receivable
- Due Diligence
- Business Valuation Services
- Litigation Support
“The addition of Patrick Trotta, Mark Koppelman and their team represents a momentous advance for our firm and for our clients,” Glass Jacobson president Edward J. Jacobson said. “Having them join Glass Jacobson significantly increases our presence and knowledge base in the healthcare space.”
Mr. Trotta is a frequent speaker on healthcare-related issues is a member of more than a dozen professional associations. He was named the Health Facilities Association of Maryland’s “Person of the year in 2008. He earned his Bachelor of Science in Business Administration from Towson University and is a Certified Public Accountant in the state of Maryland and the District of Columbia.
Mr. Koppelman earned his Bachelor of Science in Business Administration from Salisbury University, and is a Certified Public Accountant in the state of Maryland. His professional associations include the American Institute of CPAs, the Maryland Association of CPAs and Healthcare Financial Management Association.
About Glass Jacobson
Founded in Baltimore in 1962 as a traditional CPA firm, Glass Jacobson has evolved into a wealth management firm to better serve its clients’ diverse, ever-growing financial needs. Today, the firm’s unique Wealth Management Model brings together the essential services of Investment Management, Advanced Planning and Relationship Management, and delivers them with unparalleled expertise and professionalism.
Serving as a personal CFO, Glass Jacobson looks beyond the numbers to get to the core of every client’s financial situation. The firm delivers a full team of in-house CPAs, investment advisors, financial planners and insurance specialists to every client. To learn more about Glass Jacobson, please see www.glassjacobson.com.
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Inflation Expectations~ real or perceived?
January 21, 2010 | Subscribe to our RSS Feed
Between the budget deficit and the extensive growth of hard currency coming out of government printing presses, clients are expressing concern over inflation. The implications of these factors, if left unchecked, may lead to higher taxes and a significant loss of purchasing power from our wages and savings.
A little background: Inflation has typically occured during economic booms and periods of high employment. Excessive economic growth overwhelms our nation’s capacity to produce enough goods and services to meet demand.
The concern: With too much hard currency in circulation and China holding trillions of dollars in US debt, the value of the US dollar will likely decrease. As a result, our unemployment rates could remain uncomfortably high while inflation creeps back into the economy. There would be no high level of employment to cushion the effects.
Investors concerned about real wealth need to find the right trade-off between expected real returns and the amount of risk they are able to tolerate.
GJ Investment Advisory Team’s First Quarter discussion-
Inflation Expectations: Real or Perceived? (full version)
Submitted by Jon Dinkins
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jon.dinkins@glassjacobsonia.com
First-Time Homebuyer Credit Requires Additional Documentation
January 19, 2010 | Subscribe to our RSS Feed
The Internal Revenue Service today released the new form that eligible homebuyers need to claim the first-time homebuyer credit this tax season and announced processing of those tax returns will begin in mid-February. The IRS also announced new documentation requirements to deter fraud related to the first-time homebuyer credit.
In addition to filling out a Form 5405, all eligible homebuyers must include with their 2009 tax returns one of the following documents in order to receive the credit:
- A copy of the settlement statement showing all parties’ names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
- For mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.
- For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.
In addition, the new law allows a long-time resident of the same main home to claim the homebuyer credit if they purchase a new principal residence. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. The IRS has encouraged homebuyers claiming this part of the credit to avoid refund delays by attaching documentation covering the five-consecutive-year period:
- Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
- Property tax records or
- Homeowner’s insurance records.
The IRS also reminded homebuyers that the new documentation requirements mean that taxpayers claiming the credit cannot file electronically and must file paper returns.
Submitted by Sam Cohen
Questions:
10 Tax Tips to Consider If You Have Children
January 14, 2010 | Subscribe to our RSS Feed
Got Kids? They may have an impact on your tax situation. Listed below are the top 10 things the IRS wants you to consider if you have children.
- Dependents. In most cases, a child can be claimed as a dependent in the year they were born.
- Child Tax Credit. You may be able to take this credit on your tax return for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Credit, you may be eligible for the Additional Child Tax Credit. The Additional Child Tax Credit is a refundable credit and may give you a refund even if you do not owe any tax.
- Child and Dependent Care Credit. You may be able to claim the credit if you pay someone to care for your child under age 13 so that you can work or look for work.
- Earned Income Tax Credit The EITC is a benefit for certain people who work and have earned income from wages, self-employment or farming. EITC reduces the amount of tax you owe and may also give you a refund.
- Adoption Credit You may be able to take a tax credit for qualifying expenses paid to adopt an eligible child.
- Children with Earned Income If your child has income earned from working they may be required to file a tax return.
- Children with Investment Income Under certain circumstances a child’s investment income may be taxed at the parent’s tax rate.
- Coverdell Education Savings Account This savings account is used to pay qualified educational expenses at an eligible educational institution. Contributions are not deductible, however, qualified distributions generally are tax-free.
- Higher Education Credits Education tax credits can help offset the costs of education. The American Opportunity and the Lifetime Learning Credit are education credits that reduce your federal income tax dollar-for-dollar, unlike a deduction, which reduces your taxable income.
- Student Loan Interest You may be able to deduct interest you pay on a qualified student loan. The deduction is claimed as an adjustment to income so you do not need to itemize your deductions.
Submitted by Sam Cohen
Questions: