Webgility Joins Xero Partner Developer Program to Make Accounting Easier for Online Retailers

Webgility, the leader in accounting integration software, has joined Xero's partner developer program to help eCommerce businesses automate their accounting. Online retailers can synchronize data between their online store and Xero's online accounting platform, making accounting easier so they can stay on top of their finances.

Since it's launch in 2012, Webgility's eCC Cloud has helped thousands of eCommerce businesses save time on data entry and reduce accounting errors. The Webgility-Xero partnership enables eCC Cloud to integrate with all US editions of Xero, providing an easy to use, web-based solution for small eCommerce businesses to manage their accounting. By connecting all of a company's online sales channels to eCC Cloud, transactions are automatically posted in Xero, customers are created, and items are synced. eCommerce businesses can manage their finances and make better decisions without wasting time on spreadsheets.

"Small businesses selling online work hard to grow their bottom line," said Parag Mamnani, Founder and CEO of Webgility. "By using eCC Cloud with Xero, these businesses can save precious hours every day and gain powerful insights into their eCommerce performance."
eCC Cloud went through a rigorous review process to be certified as a Xero Add-on. The Webgility Engineering team worked closely with Xero to ensure a seamless and secure flow of data between the two systems, while providing an optimal user experience.

"We're pleased to add Webgility to Xero's ecosystem of best-in-class business tools," said Jamie Sutherland, president of Xero. "With the integration of Xero and eCC Cloud, business owners get better insight into their finances and save precious time by being able to synchronize their eCommerce data from multiple online stores with Xero's online accounting platform."

eCC Cloud is the only SaaS application to offer accounting automation for more than 35 eCommerce platforms, including Bigcommerce, WooCommerce, Shopify, Magento, Amazon, eBay and Etsy. Starting at only $9/month, it's an affordable multi-channel solution for small eCommerce businesses using Xero. Webgility offers a free 15-day trial, available at www2.webgility.com/ecc-cloud-xero.

About Webgility, Inc.
Webgility makes accounting easier for small businesses through automation. Headquartered in San Francisco, CA, Webgility has helped thousands of SMBs streamline their operations and automate their accounting, saving them time and money. Its software is certified with Intuit QuickBooks and Xero, and integrates with over 40 eCommerce platforms and leading Saas applications for SMBs. With sales transactions automatically recorded in accounting software and store data synchronized, businesses can instantly track their cash flow and get the financial insights they need to grow. To learn more about Webgility and its accounting solutions, visit webgility.com or call (877) 753-5373.

About Xero's Partner Developer Program
Xero is an easy-to-use cloud accounting software platform for small businesses and their advisors. Xero greatly simplifies once tedious, complicated accounting tasks such as bank reconciliation, and provides real-time financial insights to make smart business decisions. The company is the global leader in online accounting software with over 280,000 paying customers in more than 100 countries. Xero also offers a one-stop-shop for all things small business by seamlessly integrating with over 300 best-in-class add-on business tools. Xero's partner developer program is based on a superior open API that connects great apps with Xero's established sales channel. More information at: developer.xero.com/partner

WHEN IS A MARRIAGE TERMINATED FOR TAX PURPOSES?

Carabell, Leslie & Co. write: A couple remains married for tax purposes until a final decree of divorce is issued by a domestic relations court; a domestic relations court issues a final decree constituting a legal separation under local law, requiring the couple to live apart; or the abandoned spouse rule applies.

An individual is required to live apart from his or her spouse for the entire last six months of the tax year to achieve abandoned spouse status.  In some divorce situations, where the abandoned spouse rule does not apply, a spouse may be reluctant to file a joint return due to the joint and several tax liability resulting from joint returns.   Accordingly, in situations in which the abandoned spouse rule cannot be met but a spouse is reluctant to file a joint return, one option is for the spouse to file under the status of married filing separately, then wait to determine if any instances of concern regarding joint and several tax liability arise, and then elect to file an amended joint return within three years of the original due date of the separately filed returns.  An amended return can be filed under joint return status where separate returns had originally been filed.  However, the amended return must be filed within three years of the original due date, excluding extensions, of the separate returns.

An individual who has not received either a decree of divorce or separate maintenance from a court as of the last day of a tax year and who fails to qualify as an abandoned spouse is considered married for tax purposes.  The taxpayer must therefore file a joint return or files as married filing separate.

The potential tax savings from delaying the divorce to file a joint return may not justify the additional liability exposure created by the joint filing.  In some instances, completing the divorce and terminating the marriage may in fact save income taxes.

Once a marriage is terminated for tax purposes, the former spouses are no longer eligible to file a joint income tax return.  The individuals are then faced with the problem of dividing income and deductions on the divorce-year return.  Also, special issues arise for allocating mortgage interest and taxes in divorce situations.  Finally, the rules governing the reporting of income and deductions differ significantly between community property and equitable distribution states.

When Does My Client Need A Tax Attorney?

Peter Anderson, Steven M. Burke, Beth L. Fowler, John E. Rich, Jr. and Richard M. Stone of The McLane Law Firm write: CPAs are very often a business owner's most important advisor. Meeting with a client multiple times per year, accountants provide a wide range of tax and advisory services well beyond tax return preparation, including sophisticated tax, business and financial planning. The role of a tax attorney is often more episodic, but no less important. Tax attorneys often focus on some of the finer details of tax law and IRS procedure, and can help your client in matters ranging from tax litigation, to estate and asset protection planning, to executive compensation and pre-transaction planning.

Clients often misunderstand the role of a Certified Public Accountant versus a tax attorney. A CPA, a client supposes, knows everything he or she needs to know about tax code under the law, so he or she must be able to work out any discrepancies the client or the client's company may have with the IRS, and advise the client on tax strategies. The following are just a few examples of common situations where retaining a tax attorney may be a good idea.

Your client is being audited by the IRS or a State Tax Authority and Matters Have Become Serious. Dealing with the IRS and state tax authorities is loaded with challenges and traps, especially when it involves complex and sophisticated services provided by CPAs. Clients may receive a Summons, an Information Request, a visit by investigators, a phone call, or a letter asking for documents and information concerning them or perhaps others. Some of that information could lead to fraud or criminal charges. CPAs may become aware of fraudulent activities and may want to protect confidential client information during a civil audit (called an "eggshell audit"). Some civil audits, called "reverse eggshell audits", are actually disguised criminal audits, and are used by tax authorities to discover criminal tax evasion. Simultaneous ("parallel") civil and criminal investigations are possible. Even in a routine audit context, tax authorities could be seeking information that clients view as "private and confidential". How to protect confidential information is always an important issue.

There is an "accountant/client" privilege in the Internal Revenue Code (§7525), but it is very limited and is always subject to attack by the IRS. The privilege does not apply in criminal proceedings, to information communicated to third parties, and to tax shelters.It may not apply to communications between a client and a CPA unless the CPA is licensed in the state where the client resides, does not cover business or financial planning advice, and may not cover tax return preparation advice. In addition, the privilege is a federal privilege, and most state tax audits are not covered.

CPAs often try to protect tax work papers, but several recent cases make it clear that only work papers prepared in anticipation of litigation, not those prepared in the usual course of business, are protected.

Tax attorneys can help protect clients' confidential information. Constitutional protections at the right time can be crucial. In addition, the attorney/client privilege is still very strong, and it applies in civil, criminal, and all tax matters. When any suspicion of fraud, misconduct or other problems exists, whether in an audit situation or otherwise, tax attorneys can represent a client and create a so-called "Kovel" arrangement where the CPA is engaged to help the attorney represent the client. This arrangement cloaks the CPA with the attorney's privilege and protects information communicated to the attorney and CPA after the Kovel documents are signed. It does not protect prior communications, so it is crucial to create the arrangement early in the audit process. Producing confidential records to the IRS that could have been protected may waive constitutional protections and may result in a lawsuit by a client against the CPA.

Protection of information and protection of taxpayers' rights must always be paramount.

The IRS is pursuing criminal charges against your client. When a client is under audit by the IRS, there are times that certain items of unreported income or deductions have the potential for a fraud referral to the Criminal Investigation Division.

It is essential in situations where the potential for fraud referral exists, that communications with the client be cloaked within the Attorney Client Privilege and that the client be advised of his or her 5th Amendment Right against self-incrimination during the audit process.Simply put, it is better for a client or client representative to say nothing at all than to make either damaging admissions or misstatements that can compound problems in the audit or result in a fraud referral to the Criminal Investigation Division.

You need someone experienced in communicating with the IRS to convene on your clients' behalf. When the IRS is calling, it may well be in your clients' best interest to settle the matter as expeditiously as possible. If you do not have established relationships with trusted tax attorneys you can call on a moment's notice, now is the time to set them up. Educate your clients as to benefits of having experienced tax counsel on their side, when warranted. Take the steps they recommend, and rely on their expertise to put the matter to rest. Do not wait.

There are other many less urgent, but no less critical events that should trigger a call to a tax attorney. These are areas when a CPA and tax attorney can work hand in hand to best serve the client's needs.

Your client is asking about ways to attract and retain the best talent with sophisticated executive compensation packages. In addition to the tax aspects of executive compensation arrangements, tax attorneys are familiar with the legal and business issues associated with these compensation programs.These programs require knowledge of corporate and securities laws, ERISA, Tax Code Section 409A, and the other applicable Code sections. The right executive compensation program depends on numerous factors including ownership's desire to share equity, existing benefit programs and compensation structure, industry practice, and ownership's strategic plan for the business.

Your client is considering the establishment of a new business. A good tax attorney can help business startups that have complicated tax or entity requirements. There is no one size fits all structure for entity formation. Whether forming an LLC, corporation, or partnership, each new business will face unique tax consequences, as will the officers, employees and owners of the business.Careful formation planning will result in tremendous tax efficiencies for the business and its owners for years to come. Failure to carefully plan at the outset of the establishment of an entity structure may saddle the business with a tax burden that could significant damage future performance.

Your client is concerned with asset protection planning, beyond what is achieved by basic incorporation.Successful clients often fear losing much of what they have created because of an unexpected lawsuit or tragedy that was not covered by insurance. The advice of a tax lawyer can be critical for clients with significant assets, complex investments or other unique requirements. Various asset protection approaches may be appropriate, including self-settled ("asset protection") trusts, spendthrift trust, life insurance trusts, dynasty trusts and family limited partnerships.

Your client is considering business succession planning, possible through the sale of the business. Given the combined effect of federal and state tax rates, your client could pay over 50% of the proceeds from the sale of their business to the IRS and state taxing authorities. Proper pre-transaction planning could significantly reduce that tax burden. Pre-transaction tax planning is much more than the calculation of estimated tax.Proper structuring of your client's business is critical. The creation of a proper organization structure, the use of trusts, the establishment of an employee stock ownership plan ("ESOP"), charitable lead or remainder trusts, and many other approaches will allow your clients to keep a significant amount of the value they have created. Proper planning takes time, and should begin well before the sale process is in full swing.

In sum. The truth is, every day, CPAs encounter complex tax, business planning, and business succession situations that require the help of a tax attorney. Maybe a client has fallen behind in paying his taxes, or has made an oversight that prompts an IRS investigation. Maybe a client has shared secrets the CPA has no privilege to protect. Maybe he needs to appeal an IRS audit in tax court.Perhaps a client wants to implement an executive compensation package to retain valued employees, wants to expand into a new line of business or wants to plan for an orderly transition of business ownership. These are no longer tax issues; they are legal issues and require the expertise of a tax attorney. There will certainly be days that you will be glad to have a trusted tax attorney on speed dial.

Intuit to Buy Bill-Payment Service Check Inc. for $360 Million

Intuit has agreed to buy bill-payment service Check Inc. for $360 million, according to two people familiar with the situation.

The deal was signed on Friday and the two companies plan to announce it Tuesday, one of the people said.

Check is the latest tech startup to be snapped up by Intuit as the Mountain View, Calif., finance-software maker expands its suite of tools for individuals and small businesses through acquisitions. Last year, the company bought document service DocStoc, tax-return helper GoodApril and small-business scheduling tool Full Slate. Earlier this month it bought inventory-tracking software Lettuce.

More than 10 million people use Check's smartphone app to track and pay bills, according to the company. The service has some of the same functions as Mint, the person-finance software maker Intuit bought for $170 million in 2009. Intuit also owns personal-finance software Quicken and TurboTax.

Check, based in Palo Alto, Calif., makes money from advertisers that offer promotions for credit cards or insurance within the app. This year, Check expects revenue of more than $20 million, up from less than $15 million last year, said one of the people familiar with the company.

The sale to Intuit culminates a seven-year journey for Check Chief Executive Guy Goldstein, who co-founded the startup in 2007 as Pageonce, a service for managing bank accounts, social-networking profiles, shopping carts and other Internet profiles in one place. Last year, the company changed its name to Check and narrowed its focus to helping users track their personal finances and pay bills using their mobile phones.