Archive for the ‘Personal Finance’ Category

Looking to Start a Business? Do It the Right Way

Monday, June 20th, 2016
Starting new Ohio Business - Ohio CPA Firm

Starting a new business is a brave and exciting endeavor. Avoid common slip-ups by following the advice found in this post and you’ll be well on your way to a successful start.

Starting your own business and becoming a small business owner is part of many Americans’ dreams. For some though, it can become a nightmare. There are definitely some right ways and wrong ways to approach starting your own business. Over my tenure as an experienced business advisor, I have seen plenty of heartache and additional expense along the way. Here are some of Do’s and Don’ts to consider if you want to start your own business:

Read Also: Dream Big: Considerations For The Aspiring Business Owner

  • Do: Go simple – Unless someone besides your spouse will own the business with you, you don’t need anything other than a simple limited liability company. It offers you liability protection while minimizing your tax filing requirements. Being the sole owner and having this sort of entity allows you to file you business’s activity on a Schedule C on your Form 1040. Until the business grows and is successful, this entity type will likely be sufficient for your small start-up.
  • Don’t: Go cheap – Small business owners tend to think they can or should do everything themselves. A lot of sweat equity goes into starting a new business, but be smart and humble enough to know the difference between what you can do and what you should do. It’s OK to ask for help!
  • Do: Involve professionals – This is an area where new business owners tend to want to go cheap. No one likes paying attorneys and folks don’t know they need a tax professional sometimes until it’s too late. Getting set up with the proper legal documents is a critical first step, and it’s one that new business owners like to try to tackle on their own. I know from experience that a good attorney is worth the expense. Don’t know who to ask? Start asking other established business owners who they use.
  • Don’t: Do payroll yourself (unless you have experience) – Some of the heftiest penalties the IRS assesses involves payroll taxes. They don’t mess around when it comes to properly assessing and remitting payroll taxes and paying your employees. Even one slip up can set a business back several thousand dollars. The issues continue to compound if they are not properly taken care of, so don’t ignore this extremely important aspect of your business. Unless you have prior experience with payroll or you hire someone with experience, this is an area where you should seek professional help.
  • Do: Consult your local Chamber of Commerce – Chambers of Commerce exist to assist businesses in a multitude of ways. Our local Chamber offers Small Business Counseling classes that are meant for new business owners who are just starting up a business. These classes include counseling, training and assistance for start-up businesses. This local resource can be invaluable if you choose to utilize it.

Starting a new business is a brave and exciting endeavor. Avoid common slip-ups by following the advice above and you’ll be well on your way to a successful start.

Around the same time you start your business, you’ll also want to consider your business’s growth strategy. Lee Beall, CPA, CEO at Rea & Associates, covered this topic in a podcast episode on unsuitable on Rea Radio. Check it out to learn what you need to do to establish or strengthen your business’s strategic plan.

By Lesley Mast, CPA, MAcc – Taxation (Wooster office)

Share Button

How Are You Different From The Competition?

Wednesday, June 8th, 2016
Competitive Advantage - Ohio CPA Firm

Every time I climb into my stylist’s chair my hair is trimmed – regardless of its condition. This helps maintain a fresh look while preventing additional breakage. It also gives her an opportunity to assess the state of my hair and make recommendations to help keep it looking its best! From helping a client monitor their cash flow to updating a buy-sell agreement, a lot of preventive maintenance can be done at a regular meeting with your financial advisor, too. You never know when a simple lunch meeting could reveal an underlying problem that, if left to fester, could be damaging to your business.

Superior Service Doesn’t Have To Be Hairy Business

You have the opportunity to go above and beyond the call of duty every time you engage with a client. And don’t think that your superior work and insight will go unnoticed! Before long, you will find that they will go out of their way in search of your insight and advice. Regardless of your profession, the potential is there for you to become a trusted advisor. We strive to reach this standard here at Rea, but I know of others who I would consider to be trusted advisors in a variety of other professions.

My Hair Stylist Is A Trusted Advisor

After attending my last meeting of the day, I gathered my things, left the conference room, walked to my car and sat down in the driver’s seat ready to depart for my regularly scheduled hair appointment. As I turned the engine, I started thinking the meeting I just left, during which we spent a lot of time discussing the succession plan of an existing client and what we could do to deliver the best experience (and outcome) possible. Then my thoughts drifted to the task at hand – my hair appointment and how I truly consider Aaren, my stylist, to be a trusted advisor in my life. Here’s why:

Superior Efficiency

Before busy season starts (January-April in our industry) Aaren will style my hair in a way that helps facilitate a faster dry time each morning. Being the numbers addict I am I have estimated that I can save about 6.5 hours if I opt for a shorter hairstyle. This is similar to how Rea is dedicated to delivering superior efficiency. For example, we have integrated Lean Six Sigma into our culture as a means to deliver efficient, cost effective service. We use it. We know it works. And we have helped other businesses implement their own Lean initiatives as well.

The Best Ideas You Weren’t Expecting

Not only does Aaren understand how to encourage her clients how to care for their hair during the best of times, she’s mindful of changes that could occur as a result of environmental factors and makes recommendations accordingly. This is what happened when I told her I was going on vacation to the ocean. This seemingly casual conversation revealed an opportunity to warn me about the dangers of saltwater on hair; she recommended a product to help prevent damage while I was on vacation. The great thing about developing a relationship with a trusted advisor is that they genuinely care! Are your children gearing up for graduation? Are you eyeballing retirement? Are you looking to invest in a summer home? A trusted advisor might be able to help you seize an opportunity that you would otherwise miss.

Sound Advice In Advance

I have found that Aaren is most effective when I keep her in the loop. I let her know when I have a vacation or a wedding many months in advance. This way she can help me get the results I want without unpleasant side effects. For example, rather than dye my hair right before a major wedding that was taking place in our family, Aaren encouraged me to change the color over a six-month period. By making the changes gradually and planned out we were to prevent my hair becoming damaged due to the chemicals.

Your advisors are also most effective when they are able to get in front of an issue. For example, if a client wanted to pass their business on to the next generation, an advisor could help you identify your succession plan, help you prepare for the changeover, identify financing solutions for your own retirement and help establish a cash flow strategy for the incoming management.

Preventive Maintenance

Every time I climb into Aaren’s chair my hair is trimmed – regardless of its condition. This helps maintain a fresh look while preventing additional breakage. It also gives her an opportunity to assess the state of my hair and make recommendations to help keep it looking its best! From helping a client monitor their cash flow to updating a buy-sell agreement, a lot of preventive maintenance can be done at a regular meeting with your financial advisor, too. You never know when a simple lunch meeting could reveal an underlying problem that, if left to fester, could be damaging to your business.

When it comes to the management of my hair, Aaren is a trusted advisor. She continues to demonstrate her expertise and always goes above and beyond my expectations, which is why I will drive two hours to keep my hair appointments!

What do you do to set yourself apart from the competition? Why would a client drive two hours to buy your products or services? How can you be a trusted advisor to the clients you serve? Mike Taylor, a CPA and executive principal here at Rea, did a great job talking about the advisory role on an episode of unsuitable on Rea Radio. You can listen to the podcast below or click here to learn more about this particular episode. You can also email Rea & Associates to speak with one of our industry professionals to find out how you can take your business to the next level.

By Katie Snyder, CPA (Wooster office)

Check out these articles for additional insight into the benefits of working with a trusted advisor:

Getting By With A Little Help From Your Friends

5 Financial Secrets Of Successful Business Owners

This Is An Intervention – Step Away From Your Business

Share Button

Do You Know The Best Way To Buy A Business?

Thursday, June 2nd, 2016
Business Acquistions - Ohio CPA Firm

Ryan Dumermuth, principal at Rea & Associates, and Kirk Spillman, president and CEO of Eagle Machinery in Sugarcreek, Ohio, join Mark Van Benschoten on episode 34 of unsuitable on Rea Radio.

Generally speaking, relationships are easier to develop and maintain when you work with the other person. The same is true in business, especially when you’re considering the relationship between a business owner and an advisor. I had a chance to be a guest on an episode of unsuitable on Rea Radio with Kirk Spillman, president and CEO of Eagle Machinery, a manufacturing company located in Sugarcreek, Ohio, to talk about what goes into developing a strong business advisory relationship – particularly when buying a business. Bottom line, a successful relationship with your advisor goes far beyond any monetary transaction; it’s rooted in mutual trust and respect. And, if nurtured, a relationship with your advisor can last a lifetime and can help drive long-term business success.


Listen to episode 34: the best way to buy a business, build a relationship that matters, on unsuitable on Rea Radio, Rea & Associates’ financial services and business advisory podcast.


How Well Do They Know Business & Can You Trust Them?

Before you decide who you should work with from an advisory perspective, you need to consider what kind of assistance you’re looking for. Remember that while it’s not always necessary for your advisor to have expertise specific to your industry (although that is undoubtedly helpful), it is critical for your advisor to be a business expert who can effortlessly apply general business tactics, strategies and best practices to address your specific needs and drive results. Don’t miss out on an opportunity to work with the best advisor in the market simply because they don’t market themselves as an expert in construction or healthcare. Call them up and get to know them before making a decision. Your choice should ultimately hinge on the advisor’s business prowess and out-of-the-box thinking.

When You Don’t Know, Ask An Advisor

We hear a lot about the importance of bringing an advisor on to assist with succession, but there are important considerations an advisor should be privy to when buying a business as well. Over the course of my career, I’ve learned that a person looking to buy a business needs just as much help, if not more, than the tenured business owner seeking to embark on retirement.

Those who are new to business ownership are trying to overcome a variety of obstacles, not to mention the difficulty associated with managing a smaller budget. And while it may not seem to make much sense to “splurge” on advice from a professional business consultant when there are other bills to be paid, the best way to navigate this unknown territory is to turn to a trusted advisor who has seen the situation you are facing.

“I learned very quickly how much I did not know about business,” said Kirk, during the podcast. “I thought I knew enough about operations and customer service and marketing all of those things that I could just step into this business and be very successful. [Before long] I recognized that there were going to be things that I would need that I didn’t have experience or resources for … [like] the entity itself. How do we set this entity up? I knew nothing about that.”

Your business advisor will be able to shine light on the areas you know nothing about, such as how to structure your business entity, how to determine the true value of the business, setting up payroll, managing inventory, etc. There’s a lot of risk involved in buying a business because, particularly for owners who are new to entrepreneurship, there are so many unknowns. Your team of advisors will help take the guess work out of business ownership.

I invite you to learn a little bit more about Kirk’s experience and to learn how a business advisor can help you establish, manage and grow your business until you decide it’s time for you to move on. Click on the media player below or visit www.reacpa.com/podcast to learn more about the best way to buy a business.

By Ryan Dumermuth, CPA, CFP (Mentor office)

Want to learn more tips to help you succeed in business, check out the following articles for additional insight.

Dream Big: Considerations For The Aspiring Business Owner

So You Want To Buy A Business: Now What

Getting By With A Little Help From Your Friends

Share Button

How To Become A Millionaire

Thursday, May 26th, 2016

Kick Your Lottery Ticket Habit

Your Money Multiplied - Ohio CPA Firm

PHOTO CREDIT: Akron Beacon Journal
The odds of winning Powerball are 1 in 292 million. The odds of winning Mega Millions are 1 in 259 million. The odds of winning Ohio’s Classic Lotto are 1 in 14 million. But if you were to invest the money you would normally spend the lottery into a 401(k) plan, your chances of winning big are all but guaranteed!

I recently found myself standing in line at a local convenience store behind a guy who was in the process of redeeming his winning $2 scratch-off lottery ticket for another chance to uncover his fortune. My mind started to wander and it wasn’t long before I starting wondering how much the Ohio lottery takes in every year and how a person’s lottery habit could be transformed into a pretty substantial retirement plan.

According to the annual report from the Ohio Lottery Commission, about $2.8 billion was collected by the Ohio Lottery between July 1, 2014 and June 30, 2015. Perhaps even more shocking is that more than half of these funds, or $1.55 billion, was a direct result of instant ticket sales – the scratch-offs! Since we know that Ohio has about 9 million residents who are 18-years-old and legally permitted to play the lottery, we can conclude that the average Ohioan is spending $323 annually on the lottery. (And since I know that I spend $0, I can only assume that there are men and women out there spending $600 or more on lottery tickets every year!)

Read Also: Don’t Get Blown Away By A Cash Windfall

For Fun or For Money?

Whether you view the lottery as a form of inexpensive entertainment or “a convenient and accessible tool for radically altering [your] standard of living,” if your objective is to obtain financial security … there’s a better way.

Countless studies have been conducted in order to explain why those with lower incomes tend to spend more of their income on the lottery. Some of the reports are simply astounding. Just a decade ago 21 percent of those who played believed that the lottery was the most practical path to wealth. It’s this skewed thought process that continues to drive lower income residents in particular to spend a significant portion of their income on these tactics rather than invest in more effective wealth enhancement solutions.

  • The odds of winning Powerball are 1 in 292 million.
  • The odds of winning Mega Millions are 1 in 259 million.
  • The odds of winning Ohio’s Classic Lotto are 1 in 14 million.
  • The odds of winning Ohio Rolling Cash 5 are 1 in 575,757.
  • And if you want to know how many prizes are left for the popular scratch-off games in Ohio on any given day you can find that out here.
  • But if you were to invest the money you would normally spend the lottery into a 401(k) plan, your chances of winning big are all but guaranteed!

Your Money Multiplied

Let’s assume a 30-year-old who normally spends $25 a week on the lottery (or $100 a month) decides to invest these funds into a 401(k). What would happen to the investment if we were to assume the following conditions?

  • The employer matches 50 cents on each dollar, bringing the total monthly investment to $150.
  • We assume an 8% average annual return on the investment.

In 35 years, the $100 he previously spent on the lottery plus the $50 his employer is kicking in would come to around $344,000 when you factor in the 8% average annual return. What’s incredible to consider is that over the course of 35 years, this individual will have only invested $1,200 per year of personal income (or $42,000 total).

Now, what if the employee decided to kick their monthly $100 lottery habit earlier at the age of 21?  If we were to apply the same conditions outlined above, in 44 years (when the employee reaches age 65), the same investment and company match would result in a 401(k) plan worth $1,457,677. Over the course of this 44-year career only $52,800 in personal funds would be contributed to the plan, but with the company match and 8% average annual return, the funds would continue to multiply – 27 times to be exact!

Don’t pass up on an opportunity to facilitate a discussion about retirement savings and the big impact even a few dollars can make over time. If you have questions about how you can make the most of your retirement saving strategy, email Rea’s retirement plan services team for more information.

By Steve Renner, QKA (New Philadelphia office)

For more insight into our retirement plan services, check out these articles:

Don’t Let These Common Retirement Plan Mistakes Hurt Your Business

How Your Plan Design Can Help Improve Your Retirement Plan Participation

Retirement Plan Participants Are Content To Watch Their Savings Simmer

Share Button

Can The IRS Collect Back Taxes 10-Years After The Original Date Of Assessment?

Wednesday, May 11th, 2016

Greetings Drebit! Please excuse my ignorance when it comes to IRS matters. I read your article about finding the date of assessment on my IRS Transcript. My transcript code is 150-5/29/2006. When can I exercise my right under the 10-year Statutes of Limitations? Thank you. – Wendy


Click here to read the original article


Dear Wendy,

Thank you for taking the time to send in your question. You correctly identified the date of assessment on your account transcript by zeroing in on the “150” Transaction Code. Based on this date, I can determine that your tax return was assessed on “5/29/2006.” Because the statute of limitations almost always begins the day after the taxpayer files their income tax return, the simple answer to your question is that the 10-year statute is set to expire on May 30, 2016.

However, there may be other factors to consider. For example, if you entered into an installment agreement with the IRS to pay any amount that was owed, as identified on your 2005 tax return, it’s highly likely that the 10-year statute of limitations date would have been extended to a date ending after May 29, 2016. While we have no way to know for certain if your assessment date was adjusted, I can tell you that, in this scenario, it is common practice for the IRS to extend the timeline to accommodate their ability to collect taxes owed – particularly if the installment payment period extends beyond the original expiration date.

I recommend that you speak with your financial advisor about this matter or email Rea & Associates to speak with a member of our team’s tax experts. You also might find value in the following articles.

Good luck!

By Christopher Axene, CPA (Dublin office)

Check out these articles for more helpful tax advice:

IRS Says You Owe More? Don’t Write That Check Yet!

How Far Back Can The IRS Go For Tax Auditing

When You Make A Mistake On Your Tax Return

Share Button

Celebrate Six Years’ Worth Of Business Tips With Drebit

Thursday, April 28th, 2016
Print

Today Drebit is turning six! Check out his top posts from over the years.

Drebit turns six today and we couldn’t be more excited. Over the years the Rea team has helped this intuitive frog provide readers with a wide variety of helpful business tips designed to help drive results in your organization as well as current business and financial news and we have certainly enjoyed the journey! This birthday isn’t about Drebit, it’s about you, our readers, for spending a few minutes with us each week or for checking in for answers that will help you confront a challenge facing your business. You are the reason Drebit continues today!

To celebrate, we are going to list Dear Drebit’s top six blog posts. Which one did you find to be the most useful? Let us know in the comment section!

Drebit’s Top 6 Blog Posts

  1. How Far Back Can The IRS Go For Tax Auditing? Taxes can be scary word and accountants are often asked, “How far back can the IRS audit tax returns?” Before you start to panic, rest assured that the IRS has a statute of limitations in place that generally puts a limit on the time allowed to audit you and assess additional tax. Keep reading to learn what those limitations are.
  2. How will selling a house from an estate impact my taxes? My mother passed away Oct. 30, 2009. She left my brother and me her house, which has just been released from probate court. We have someone wanting to buy it and we would split around $140,000. What kind of taxes do we face? Find out the answer in this blog post.
  3. Theft Safeguards To Cause Tax Return Delays In Ohio If time is money then the new security measures to protect Ohio taxpayer’s returns and prevent identity theft comes at a price. The Ohio Department of Taxation (ODT) said that in an effort to boost security and prevent tax-fraud in the state, Ohio will implement an “up-front filter to all tax-refund requests to analyze the demographic information reported on the return.”
  4. Do You Need to Send an Annual Notice to Your 401k Participants? If your company sponsors a calendar year 401k plan, don’t forget about participant notice requirements. They must be furnished by Dec.1, and may impact the operation or qualification of your plan. Here is a checklist that may be helpful, but check with us if you are not certain which of these requirements apply to your plan.
  5. What Happens if My 401(k) Plan is Out of Compliance with an IRS or DOL Rule? In this article we will explain the statute of limitations if your 401(k) plan is out of compliance with an IRS or DOL rule and how you can work to rectify any issues you may have with your business’s retirement plan.
  6. How Can You Track Use Tax in QuickBooks? Now that you have filed for use tax amnesty and are all set up with an account, how are you going to track it daily going forward? If you use QuickBooks, the answer is as simple as 1-2-3.

Is there a financial or business question you need the answer to? Let us know by contacting the Rea team today! We would love to answer it!

Share Button

Did Prince Forfeit Control Over His Multimillion Dollar Estate?

Wednesday, April 27th, 2016

Learn How A Will Protects Your Fortune After Death

Did Prince Have A Will | Why A Will Matters | Ohio CPA Firm

PHOTO CREDIT: www.Billboard.com
According to Prince’s sister, Tyka Nelson, the music legend neglected to draw up a will before he died. Regardless of how large (or how small) your fortune is, estate planning is essential and drawing up a will is a critical component of the plan – one you literally can’t afford to ignore. Keep reading to find out why a will is one of the most important documents you will ever have drawn up.

While driving my sons to school this morning, we heard on the radio that, according to his sister, Tyka Nelson, music legend Prince died without having a will in place. This means, if the reports are true, Prince’s estate will be managed by a Minnesota probate court and will likely come with a large tax bill.

Naturally, this story has already generated national attention concerning the future of Prince’s multimillion dollar estate. What is certain, however, is that if Prince did die without having a will, his sister and five other half-siblings would stand to acquire a significant inheritance – after taxes, of course.

Read Also: You Can Still Have The Final Say After Death

Who Will Inherit Your Fortune?

I know that my sons truly love each other but, like most siblings, they fight like cats and dogs. So I decided to use the drive to school as a teachable moment.

Because both of my sons dream of becoming professional sports stars (let them dream), I advised them to heed the warning tucked within the morning’s news report. If you don’t want your brother to inherit your fortune when you pass away, you need to have a will in place that will determine where your millions go. Otherwise, the state will give everything to your next of kin.

Still Not Sure If A Will Is Necessary?

Regardless of how large (or how small) your fortune is, estate planning is essential and drawing up a will is a critical component of the plan – one you literally can’t afford to ignore. Among the many benefits of establishing a will, this document will:

  • Give you the final say over how your finances will be distributed.
  • Establish who will be legally responsible for caring for your minor children.
  • Help you avoid a drawn-out probate process.
  • Provide you with an opportunity to minimize your tax burden.
  • Let you determine who will be responsible for managing the affairs of your estate.

Lesson Learned?

You don’t have to be a teacher to pass along a few solid words of wisdom to your children. You just need seize teachable moments when they present themselves – even if all you can do is begin laying the groundwork for an even bigger lesson. Here’s what we accomplished on this morning’s drive:

  • I’m certain my boys now agree on one thing – that when they become professional sports stars (or whatever profession they choose), a will is a must have.
  • They now know who Prince is and that he acquired a lot of money over the course of his career.
  • Hopefully, they now have a basic understanding of the importance of a will. (I’m probably going to have to have a follow-up conversation about this one.)

Eh, I tried.

Would you like to learn more about estate planning and how to ensure your assets are distributed in accordance with your wishes after you die? Listen to episode 6 of unsuitable on Rea Radio with Dave McCarthy – The Grim Reaper Is Coming And He Wants Your Money. You can also email Rea & Associates to learn more.

By Inez Bowie, CPA, CSEP (Marietta office)

The following articles offer some more great advice about the importance of drawing up a will.

How Do You Value Property For An Estate In Ohio?

Why Should Your Digital Assets Be Part Of Your Estate Plan?

What Tax Liabilities Accompany Inherited Real Estate?

Share Button

Protect Yourself From Fake Charity Scams

Wednesday, April 20th, 2016

Questions to Ask Yourself Before Making A Donation

Charity Scams - Ohio CP A Firm

Would you be able to spot the charity scam? Even if you are 99 percent certain the check you are about to write will go to a well-respected nonprofit organization, it makes since to ask yourself a few questions. Read on to find out which ones.

From identity theft and tax fraud to criminals finding ways to hack into your company’s network, we are learning every day that it’s simply not safe to let your guard down – for anyone or anything. Unfortunately, that mindset should apply when you are considering gifting a charitable donation as well.

Some fraudsters, in an attempt to prey on the generosity of strangers, have begun to solicit funds for fake charities particularly during and immediately after tax season. But you can shut down these scams by asking yourself these critical questions.

Read also: Join The Fight Against Identity Theft & Income Tax Fraud

Is this the charity I know and love or is it a spin off?

We are a sucker for the brands we know and love, and criminals will invoke similar names, attributes, branding to trip you up and get you to write that check. Even if you are 99 percent certain the check you are about to write will go to a well-respected nonprofit organization, it makes since to conduct a quick search online to remove all doubt. Two resources to consider are:

  • The Exempt Organization Select Check Tool – this search tool is designed to help you determine the legitimacy of the not-for-profit in question by providing users with information about the organization’s federal tax status and filings.
  • Guidestar – this online resource is great for users who want to find out about the validity of tax-exempt organizations as well as other faith-based nonprofits, community foundations and other groups that are typically not required to register with the IRS.

Do nonprofit organizations ask for personal information?

Don’t make it easy for a fraudster to steal your identity by willingly providing them with your Social Security Number. Legitimate nonprofit organizations will never need your SSN to complete a transaction and they should never need to retain any of your personal information for their records – this includes passwords.

Should my donation be in the form of a check or is it OK to give cash?

Yes! For your own security, and tax purposes, be sure to establish a paper trail. The best way to do this is to avoid making any type of cash donations. Instead, every time you give money to a charity, consider using a check or credit card to establish proof of the transaction. Not only is it important to establish a paper trail as a safety measure, it will help you when to go to claim the contribution on next year’s tax return.

I’m still not sure if it’s a valid nonprofit organization?

If the questions above don’t provide you with the reassurance you need, reach out to a trusted advisor who can help you identify whether a particular charitable organization is reputable or not while giving you pointers to help you protect your hard-earned dollars as well as your identity.

 By Maribeth Wright, CPA (Cambridge office)

Check out these articles to learn to learn about other fraud scenarios taxpayers should know about.

Stop Criminals From Hijacking Your Identity With These Top 5 ID Theft Prevention Posts

Then & Now: Data Security In America Since The Target Breach

Malware Threat Spreads To Smart Phones

Share Button

There’s Nothing Wrong With 3-Year-Old Money

Friday, April 8th, 2016

Time’s Running Out To Claim 2012 Refund Checks

Unclaimed Tax Refunds  - Ohio CPA Firm

Grab your unclaimed cash before it’s too late! The IRS owes taxpayers about $950 million of unclaimed tax refunds from 2012. But the deadline to file your late return is April 18, 2016. Read on to learn more.

If you are one of the nearly one million taxpayers who didn’t file a tax return in 2012, you may be eligible to receive an additional refund check from Uncle Sam. But if you don’t act fast you will miss your chance to claim your portion of the $950 million.

Funds that are not claimed by April 18, 2016 will become the property of the U.S. Treasury.

Were you a student in 2012 or was your income such that you weren’t legally required to file a 2012 tax return? It’s possible that, at that time, you had too much withheld from your wages (or paid higher quarterly estimated payments) than was actually necessary. And now the government owes you a refund. Additionally, depending on your particular circumstances, you could have also been eligible to claim certain tax credits, which are also just sitting there … waiting for somebody to claim them.

Read Also: From Toddler To Teen And Beyond: Tax Breaks For Families

According to IRS estimates, half the potential refunds are for more than $715. Unfortunately, if you don’t claim this money now, you never will. Taxpayers have three years to file a claim for a tax refund. Funds not claimed in time will become government property.

Here are a few other points to remember if you plan on claiming your share of unclaimed funds.

  • You must file a 2012 federal income tax return to claim your refund. The IRS needs to make sure you don’t owe any federal or state taxes for 2013 or 2014 as well, so if you haven’t filed those returns yet, the IRS may hold your refund to satisfy any tax debts that are owed as well as any past due child support or federal debts, such as student loans.
  • To claim your refund, you must properly address, mail and postmark your tax return no later than this year’s tax deadline (April 18, 2016).
  • Be sure to collect any and all necessary forms and include them with your return, including Forms W-2, 1098, 1099 or 5498. If you are missing a form or two, you can request copies from your employer (current and/or previous), your bank or another payer.

If you didn’t file a 2012 tax return and think the government owes you money, you have no time to waste. The IRS provides taxpayers with current and prior year tax forms and instructions on its website or by calling 1-800-TAX-FORM (1-800-829-3676). You can find additional help, such as tax calculators, refund tracker, record retention schedule and more in the financial resources section of the Rea & Associates website. Check it out!

By Lesley Mast, CPA, MAcc-Taxation (Wooster office)

Check out these articles for more last-minute tax help?

How To Trigger An IRS Audit

How To Make Dealing With The IRS Less Stressful

Join The Fight Against Identity Theft & Income Tax Fraud

Share Button

Business Leaders Turned To Drebit For Fool-Proof Tax Tips

Friday, April 1st, 2016

When it comes to providing readers with top-notch tips and expert financial advice, we take our job very seriously. That’s why our top blog posts in March were related to tax, compliance and general financial wellness topics. Take a look this month’s top five blog posts for business owners.

1. Does The IRS Care About Your Fantasy Football Team?

Fantasy Football | Tax Guidance | Ohio CPA Firm

When you sit down with your CPA to go over last year’s taxable income and they ask you how your fantasy football team did this year, they aren’t just looking to engage you in casual conversation. In fact, how well (or how poorly) you did over the last year might make a difference in the size of your tax bill. Read on to learn more.

 

 

2. Payroll, HR Departments Targeted By Cyber Criminals

paper dollsOver the last few years, the threat of refund fraud and identity theft has become a very real concern, and criminals have proven that they will go to great lengths to get the information they need to complete their scams. This recent phishing scam is no exception.

 

 

 

 

3. The ACA: Small Businesses Are Also At Risk

Small Business Penalties | ACA | Ohio CPA Firm

Thinking the provisions outlined in the Affordable Care Act doesn’t apply to your business because you are “under the threshold of 50 employees” is a very dangerous assumption to make. Keep reading to find out why.

 

 

 

4. Don’t Miss Out! Claim The Work Opportunity Tax Credit

2016 individual mandate penaltiesThe IRS has finally issued guidance on how to deal with the retroactive extension of the Work Opportunity Tax Credit (WOTC) for 2015. In short, it’s an opportunity you don’t want to pass up.

 

 

 

 

 

5. Can You Afford To Lose Them?

Recruitment & Staffing Strategy | Ohio CPA Firm

When you lose a member of your team, regardless of their position, you can expect their departure to impact your organization’s bottom line. That’s why it’s so important to take a proactive stance with regard to staffing and minimizing your financial burden.

 

 

 

 

 

April brings an end to the 2016 tax season. Don’t forget that the tax deadline is April 18 this year. Looking ahead, you can expect to see some great tips from our business experts as well as some fantastic spring cleaning advice that can be used to prepare for tax season 2017. And, as always, if you have a question for one of our financial experts or business consultants fill out the Ask Drebit a Question form. We are always happy to provide you with responses to your specific questions.

Happy Spring!

Share Button