Tuesday, January 6, 2015

Neat Announces Certified Partner Program / Software, hardware and professional partners extend the benefits of Smart Organization to more small businesses

Neat®, a leader in Smart Organization Systems for the small business and consumer markets, today announced the launch of the Neat Certified Partner Program. The program will certify both hardware and software partners that, in combination with Neat's state-of-the-art Smart Organization System, improve end-to-end document and data management workflows for small businesses and home offices.
 
The program will designate Certified and Gold Certified Partners after validating systems and devices that combine with Neat to improve the capture and use of data from business documents such as vendor invoices, receipts and business cards. Neat will also certify professionals who offer training and integration services for Neat's Smart Organization System. 

"The Neat Certification Program will help small businesses make Smart Organization part of their regular business processes," said Chris Barbier, VP of Product Management at The Neat Company. "Neat and its Certified Partners bring business owners, employees and office managers better ways to get vital data from common business documents and put it to work for their operation -- so they can get to what matters most."  

New partnerships and integrations with best-in-class companies and professionals in 2015 will provide Neat users with an increasingly powerful ecosystem of solutions that'll enable them to work more efficiently. Some examples include: 

HP Officejet 8040 with Neat® e-All-in-One: HP, a Neat Certified Hardware Partner, included Neat® cloud-based Smart Organization System functionality in the HP Officejet 8040 operating interface. With a touch of the screen, the Neat-enabled HP Officejet 8040 lets customers easily capture and organize documents, access them from virtually anywhere and unlock the critical information inside those files. 

Intuit's QuickBooks Online: Neat's integrations with QuickBooks Online, Intuit's industry-leading small business accounting software, ensures that critical financial records, like receipts, vendor invoices and expense reports are easily captured in Neat's state-of-the-art system and sent to QuickBooks Online with a single click, virtually eliminating time spent importing and re-entering financial data.

More details and additional Neat Certified Partners will be announced in early 2015. Companies interested in partnering with Neat to simplify document and data management processes for small and medium sized businesses can find information HERE. 
Posted on 11:09 AM | Categories:

Haven't filed tax returns in 4 years; A discussion....

Over at Reddit we came across the following discussion: Taxes Haven't filed tax returns in 4 years... (self.personalfinance)
submitted by Taxhelplz

For the past 5 years I have been working and earning money but not at all concerned with my personal finance. Over the course of 2014 I managed to turn things around - started a savings, sticking to a budget, making sure all bills and loans are paid on time (thanks /r/personalfinance). 

Now there is one more thing that needs to be addressed. 2009 was the last time that I filed a tax return. In 2010 I missed the April 15th deadline and it snowballed from there... 2011 I didn't know what to do since I never did 2010 taxes, 2012 I didn't know what to do since I never did 2011 or 2010 taxes, etc. 

During this time I was making approximately $28,000 - $30,000 per year with no investments or any other dependents or deductions on my taxes. To the best of my knowledge I do not owe the IRS any money (if anything I should have been getting a return during these years) .
I have been looking around and found a few sites that will assist in filing past due taxes (freetaxusa.com) but I'm not sure if there is anything that I need to be cautious of. Is there a way that I can file 5 years of tax returns online or would I be better off walking into H&R Block, handing them a stack of papers and letting them deal with the mess I made of thing?
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[–]taxmankeithFAQ/Wiki Contributor 49 points  
IRS employee here:
I recommend you visit your local Taxpayer Assistance Center (TAC) and obtain transcripts of your wage and income documents for the years you have not filed, and an account transcript for the last year you did file.
I assume you haven't received any notices asking you to file any of the five federal returns from 2010 - 2013.
If you are due a refund on all four returns, there will be no penalties assessed for filing late. You will, however, have passed the statutory timeframes for claiming a refund on 2010, as /u/swalsh411 indicated.

I recommend you prioritize the 2011 return, as this refund statutory deadline elapses on 4/15/2015. Then prepare and file 2012 and 2013, and then back to 2010.
Please be sure each return is complete and correct, and each return has your current address.
Attach your Forms W-2 (or the transcripts) to the returns.
Don't include any direct deposit information on the past-due returns.
Sign and date the returns.
All returns will need to be mailed, and I strongly recommend you mail them separately, or revisit your local TAC and bring them in.
After the Service receives the 2011 - 2013 returns, you should expect to receive the refund checks after about 8 to 10 weeks.

After you file the 2010 return, you should expect to receive a letter denying the refund claims after about 12 - 16 weeks. These letters will contain your appeals rights for the refunds. If you can establish you were financially disabled during this year, you may be able to pursue the appeal and claim the refund.

If the timeframes above elapse, and you don't receive the refunds or the correspondence, I recommend you contact IRS customer service at 1-800-829-1040 M - F 7am - 7pm and speak with a representative. They will ask some verification questions and research the status of your claims.

If you identify a balance due on any return, prioritize and file it as soon as possible. Then file the refund returns for any of the 2011 - 2013 tax years, and the overpayments will be applied to the balance due. There will be significant assessments of interest, the Failure To File (FTF) penalty, and the Failure To Pay (FTP) penalty on any tax year with a balance due.
Thank you for reading.
[–]x888x 15 points  
I read your username as /u/taxmantaketh.
[–]taxmankeithFAQ/Wiki Contributor 13 points  
These things happen.
[–]lilzero 2 points  
Hi Keith: As a followup, given my tax comments here: http://www.reddit.com/r/personalfinance/comments/2rehnr/havent_filed_tax_returns_in_4_years/cnf6427
Is there anything else I should do at this point? or am I awaiting the payment request to be approved? (about 15k owed)
[–]taxmankeithFAQ/Wiki Contributor 1 point  
I assume this
I then Certified Priority Mail via USPS (~$25) to the IRS and made a follow up call (about 2 weeks ago) to make sure everything landed in their hands (also, another hour wait time).
means we received the returns.
With a 15k balance due, the minimum payment would be about $208 per month. Your balance due will be significantly higher, though, with the assessments of Failure to File (FTF) penalties, Failure to Pay (FTP) penalties, and interest. Super-rough estimate would be $22k total, which would jump the minimum payment requirement on the past due years to $306 per month.
If you are still self employed, you need a plan for your ES payments moving forward and your balance due payments.
One of the conditions of an Installment Agreement (IA) is future compliance. A new balance due will, at minimum, default the agreement, and it's a $50 user fee to add this to the existing agreement.
If the balance due exceeds $25,000 in total, you may be subject to financial analysis (a detailed breakdown of your ability to pay) and a Notice of Federal Tax Lien.
Let me know if you have further questions.
[–]lilzero 5 points  
I just went through this for 2010, 2011, 2012, 2013.
After talking with an IRS rep (be prepared for an hour on hold, just to get someone), we discussed my situation and they gave me 30 days to file all four years.
I used freetaxusa's tools for 2010 and taxact for 11,12, `13. Keep in mind you are not able to file electronically for these years [anymore]. Total Cost: ~$100 bucks. I will continue using taxact for future filing because I feel they have a stronger brand, but I do feel that freetaxusa's tools were better organized (easier?). 

I then Certified Priority Mail via USPS (~$25) to the IRS and made a follow up call (about 2 weeks ago) to make sure everything landed in their hands (also, another hour wait time).
The entire process took a full 40 hours of time to complete (data entry, phone calls, finding docs, filing, etc). From what I've heard, HR would be around $125 per year.
The main difference here is that all my income was self-employment income. I didn't make estimated payments, so I also submitted a payment plan request over 6 years.
Hopefully your situation resolves itself quickly. good luck.
[–]bananasplits 2 points  
Hi! I'm dealing with a similar situation with my father (he's terminally ill which leaves me responsible for everything). Did you not face any penalties with the IRS then? Did you use your own records since you were self employed?
I'm looking at having to file 2010-present, and I'm just not sure whether I should wait until he passes (few months max) to handle it, or if it's better to start investigating now. Maybe /u/taxmankeith has insight too. (His main source of income was withdrawing from investments/early 401k/small side job) I'm just worried there will be a large tax bill, as he has very few liquid assets and I want to avoid a costly/lengthy probate if possible.
Any advice from anyone would be appreciated :-)
[–]lilzero 1 point  
Penalties from 2010-2013: I do not know yet (since i just filed). I assume I will and expect 1-2k in fines/interest. By example, I couldn't pay SE tax from 2008 (3k) and it ballooned to (5.6k) in four years.
As far as 'when' to file your dad's taxes...i don't know. I would err on the side of caution and start that conversation today...whether it be with the IRS or a tax lawyer.
[–]bananasplits 1 point  
Thank you for the response!
[–]taxmankeithFAQ/Wiki Contributor 1 point  
You can access your father's IRS information as a family member by completing Form 2848 Power of Attorney and Declaration of Representative (link to form and instructions).
After you complete the form, you will receive a letter from the processing unit providing you with a CAF number. This means your authorization has been entered on your father's IRS account.
From there, you can work with a customer service representative on the phone or in person, and determine the best course of action.
[–]swalsh411 3 points  
You can't file online; it will have to be paper. You also can't get any refund due for 2010; it's too late. You have until April 15 to file for any refund due from 2011. If this is a simple return with just W2 income you should be able to do this yourself no problem.
[–]recessionbeard 2 points  
http://www.irs.gov/Forms-&-Pubs
That is a link to previous years' tax forms and publications.
Download one for each year, fill it out and sign it, and turn them in.
If you don't owe, you likely will receive a return for each year you did not file.
Posted on 8:43 AM | Categories:

Bitcoin and Taxes, Now Unavoidable

John David-Perry for Fox Business News writes:  If you don’t know anything about the Bitcoin market, know this: you can use the digital currency as a form of payment on sites like Overstock.com, Amazon, and even Victoria’s Secret.

Bitcoin demand is very real. In fact, the digital currency is so popular that the Internal Revenue Service decided to get involved.

In March, the IRS made its first major ruling on digital currencies, including Bitcoin. The agency ruled that digital currencies are not actual currency but rather a form of property and, as such, are susceptible to capital gains tax. Naturally, this decision was met with feelings of anger and curiosity. But for the average Bitcoin enthusiast one important and very practical question surfaced: How on earth am I going to pay my taxes?

I had a chance to speak with Jake Benson the founder and CEO of LibraTax – an online accounting software company that helps individuals prepare their Bitcoin taxes.

Who is using Bitcoin?

Benson: More and more people believe in digital currencies as a technology and Bitcoins as a representation of that technology.  Very large and reputable companies such as PayPal are now enabling Bitcoin as a payment rail for digital goods. Granted, some users are still crypto-anarchists, libertarians, and criminals, but overall, the digital currency market is evolving quickly and becoming much more mainstream.

Last year the IRS ruled that Bitcoins are considered property and not currency. How will this impact the Bitcoin market and taxpayers in general?

Benson: The immediate knee-jerk reaction was a disaster. How on earth are people going to keep track of all their “trading” activity? Bitcoins are now considered a form of property so you need to apply capital gains tax to every single transaction you make, no matter the size. Whether you are using Bitcoins to buy a cup of coffee or buy a house, you still need to log that transaction.  It’s seemingly impossible to keep these records manually, and there can be a lot of math involved in calculating the right tax.

LibraTax automates this process and makes accounting easy for the Bitcoin user.  

What is LibraTax all about?

Benson: There are currently no accounting software packages that account for Bitcoin transactions. LibraTax is an affordable and easy way to track your Bitcoin transactions while staying compliant with the new IRS guidelines.

Who is going to use your service and do you see this demographic changing over time? 

Benson: Everybody that touches a digital currency will need a service like LibraTax if they want to remain compliant. Our initial product is going to be used by individual tax preparers and by tax professionals.  A lot of CPAs have already expressed interested in our service.
I think the market will continue to grow over time as the use of digital currencies continues to rise. A lot of people who are on the fence right now are afraid of the history and volatility of the Bitcoin market. However, I think the IRS ruling established a sense of legitimacy that will hopefully push the digital currency market in the right direction.

What types of enforcement policies are in place to ensure that people pay their Bitcoin taxes?

Benson: The IRS has been losing resources in general so they are limited in what they can and cannot do. Honestly, right now, I don’t think there is a huge risk of audit.
However, I consider taxes to be faith-based reporting.  It’s your obligation to accurately report your gains and losses. The people who currently pay their taxes are probably going to want to properly pay their Bitcoin taxes.

Over time I think there will be an increased probability of auditing. Every Bitcoin transaction is already stored in the universal public ledger called the block chain so in theory there could be ways of creating enforcement strategies.

What do you think the future of the Bitcoin market will look like – will it disappear, will it be replaced by another digital currency, or will it continue to grow?

Benson: Digital currency is a practical form of innovation. The appetite for this technology is a force of nature that will continue to grow.

I think the Bitcoin market is very uncertain. If the market does not organize well, and if its user base gets divided between the crypto-anarchist type users and the more legitimate user, then it will erode.
Posted on 8:36 AM | Categories:
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