Top 10 Most Litigated Tax Issues

Kelly Phillips Erb for Forbes writes: What happens when a taxpayer disagrees with the Internal Revenue Service? Some people think that the matter ends there: the IRS always wins, right? Not necessarily.

There are a few ways to appeal an action with IRS but in a weird twist, most of those appeals actions are actually taken up with IRS. In other words, if you disagree with IRS, you ask the IRS to change their minds (you can imagine how often that happens).

Except for one. A big one. You can take your tax matter to court. Specifically, you head over to United States Tax Court. The Tax Court is a real federal court and not, as some people think, actually affiliated with the IRS. The IRS is a party to an action in Tax Court just as the taxpayer would be. Generally, a case ends up in front of the Tax Court after a taxpayer is assessed a deficiency and decides to challenge the amount in court rather than pay. There are other reasons why a matter might end up in Tax Court, including interest abatements, worker classification disagreements, and a request for relief from joint and several liability on a joint return. If a specific federal tax related questions doesn’t fall under the jurisdiction of the U.S Tax Court, the matter may decided in other courts, such as Bankruptcy Court and the U.S. Court of Federal Claims.

Procedurally, to get your matter before the Tax Court, you file a petition. The petition has to be timely filed – there are no excuses or extensions (not even the government shutdown). Once the is filed, it’s put on the calendar for trial. If the matter makes it to trial (in many instances, the matter gets settled before a court date), it goes before a judge (there are no jury trials in Tax Court) where it proceeds just like any other court with both sides presenting their arguments. Taxpayers can be represented by an attorney (in order for an attorney to appear in Tax Court, he or she must be admitted to the bar of the Tax Court) or they can opt represent themselves, a move called pro se. Of the cases reviewed this year, just under half (about 45%) were filed as pro se matters.

The Tax Court receives tens of thousands of filings each year (averaging about 30,000) but most of those are settled and do not actually go to trial. For those that do make it to trial, a number involve the same kinds of issues. As part of the report that National Taxpayer Advocate (NTA), Nina E. Olson, presented to Congress, the NTA took a detailed look at the most litigated issues at court. Here’s what Olson’s office found to be the top litigated issues from June 1, 2012, to May 31, 2013:

1. Accuracy-Related Penalties. The IRS may impose a penalty for an underpayment of tax, if the underpayment meets certain criteria. Examples of accuracy-related penalty cases filed this year included a taxpayer’s failure to keep records substantiating income and failure to report the proceeds from the sale of a house. Taxpayers were fully successful about 15% of the time and split the decision with IRS about 10% of the time. In one case, Bartlett v. Comm’r, T.C. Memo. 2012-254, taxpayer lost his argument for an abatement based on a reliance on TurboTax (I guess he forgot that the so-called “TurboTax defense” didn’t work for Geithner) while in another case, Neff v. Comm’r, T.C. Memo. 2012-244, the Court agreed that taxpayer relied on the advice of a competent tax professional.
2. Trade or Business Expenses. No surprise here. The deductibility of trade or business expenses has long been an issue for taxpayers and this year was no exception. A recurring theme? Failure to keep good records. Time after time, taxpayers could not produce receipts to justify deductions and expenses. Another handful of cases were lost because taxpayers failed to separate personal use from business use of assets, including vehicles, and still others claimed business losses for what was properly a hobby (everything from cat shows to drag races was litigated). And predictably, taxpayers and IRS bickered over home office expense deductions (fortunately, you can opt into a more simple calculation this year). The IRS was the overwhelming victor in most of these cases: taxpayers only fully prevailed in 2% of cases.
3. Gross Income. As with trade or business expenses, the matter of reporting of income was again at the top of the list. The NTA analyzed such 117 cases, most of which involved taxpayers failing to report items of income. Recurring themes included cancellation of debt income, unreported settlement proceeds and of court, failure to report wages. Taxpayers won fully or in part about 15% of the time.
4. Summons Enforcements. Under the Tax Code, the IRS is allowed to examine any books, records, or other documentation related to a civil or criminal tax liability. One of the ways to get this data is to serve a summons directly on the subject of the investigation or on a third party (like a bank or employer) who may possess relevant information. If a person who is summoned refuses to produce the information, the IRS may seek to enforce it. In that way, these kinds of cases are different from others on the list since it may be the case that it is the government bringing the action rather than the taxpayer – statistically, that happened 68% of the time last year. The IRS won most of these cases by far (95% of the time).
5. Appeals From Collection Due Process Hearings. Collection Due Process (CDP) hearings are relatively new, just created in 1998. CDP hearings offer taxpayers the chance to request an independent review of their tax dispute by the IRS Office of Appeals in matters involving a lien or levy. Taxpayers who don’t agree with the results of a timely requested CDP hearing have the right to petition the Tax Court for a review. The lack of agreement usually resulted in an “abuse of discretion” charge against the IRS; all in all, taxpayers were successful in whole or in part about 10% of the time.
6. Failure to File and Failure To Pay Penalties. If you fail to file on time, or if you fail to pay on time, you may be subject to a penalty. There are instances where the penalty may not be imposed – and that’s what the majority of these cases focused on. The IRS was successful in just over 82% of cases. Taxpayers were able to prove reasonable cause for all or some of the failures to file or pay in some cases by arguing health problems (Wright v. Comm’r, T.C. Memo. 2013-129) and damaged records due to Hurricane Katrina (Johnson v. Comm’r, T.C. Memo. 2012-231).
7. Charitable Deductions. If you itemize on your federal income tax return, you may take a deduction for donations made to a qualifying charitable organization. Taxpayers disagreed with IRS’ denial of deduction in a number of instances including whether the organization was a qualifying charitable organization, whether the amount of the donation represented fair market value and whether the donation was properly substantiated. Taxpayers were successful in whole or in part about 20% of the time.
8. Frivolous Issues Penalty. The IRS takes a hard stance against taxpayers who raise frivolous arguments (such as “there is no constitutional basis for the income tax”) or those who take unnecessary steps to delay collections enforcement. The court did not entertain arguments that tax was not required and in one case, failed to agree with a taxpayer who claimed a form W-2 was “hearsay” (Davenport v. Comm’r, T.C. Memo. 2013-41). Despite some clear losers, taxpayers were successful nearly 45% of the time though many were warned about the potential risks of continuing such behavior. Of the cases that IRS won, most penalties hovered around the low four figures (near $2,000) with some climbing as high as $25,000.
9. Civil Actions to Enforce Federal Tax Liens. When a taxpayer refuses or neglects to pay tax, the IRS may file a federal tax lien against the taxpayer’s property. This is a pretty broad right and the IRS liberally enforces it. The IRS was successful in court in more than 90% of these cases.
10. Relief from Joint and Several Liability (Innocent Spouse). Married couples who file jointly agree that they are jointly and severally liable for the tax due. That means that the IRS may try to collect any or all of the amount due from either taxpayers. The Tax Code provides relief from this liability in some circumstances. One of the most interesting things about these cases is that while the action is filed against the IRS, a third party (the former spouse, called an intervenor) has the right to step in and force a matter to court even when the IRS may be inclined to settle. That likely skews the numbers since it may boost the number of cases headed to court which would have otherwise been resolved prior. Of the seven cases where an intervenor was involved, taxpayers were completely successful in two instances and partially successful in two more. Overall, taxpayers in these matters were successful about 33% of the time.

List of 15 Commonly Overlooked Personal Tax Deductions for Individuals

Laura Williams for MoneyCrashers.com writes: The only thing worse than paying taxes is inadvertently paying more than you have to. You can avoid this by taking advantage of the common and commonly overlooked deductions. It’s best to be aware of these all year long, so you can maximize your deductions and maintain good records.

Even if the tax filing deadline is rapidly approaching, it still pays to know which deductions you could be eligible for so you can dig up old receipts to claim them. See if you can reduce your taxes or increase your refund by claiming any of the following.

Overlooked Tax Deductions

1. Tax Preparation Fees, Schedule A, Line 22
You can actually deduct the cost of tax preparation on your Schedule A. If you paid taxes and used a credit or debit card to do so, you can also deduct convenience fees. This deduction doesn’t apply if you used a free online tax preparation software or service, but you can write off paid services, such as TurboTax, H&R Block, or TaxACT. Just keep in mind this only applies to fees you paid in the year you’re deducting them. For instance, when filing taxes for 2013, you can only deduct fees paid in 2013 for your 2012 tax return.

2. Hobby Expenses, Schedule A, Line 28
Hobby expenses can be claimed as “other miscellaneous deductions.” While your hobby may not actually qualify you for small business tax deductions, you can deduct some of its expenses. However, you can only deduct as much as you generated in income from your hobby For instance, if your homegrown orchids netted you $300, but cost you $1,000, you can only deduct $300 in expenses. This helps recoup some money if you have a small business that has gone three years without a profit – at which point the IRS categorizes your operation as a hobby.

3. Personal Legal Bills, Schedule A, Line 28
Personal legal bills also fall into the “other miscellaneous deductions” category. You can deduct your legal fees as long as the lawyer is pursuing taxable income on your behalf, or is working on a determination, collection, or refund of any tax. For example, if you’re going through a divorce and pay $1,000 to a lawyer who is working to secure alimony for you, you may deduct the $1,000. However, hiring a lawyer to gain custody of a child is not deductible.

You may also deduct legal expenses incurred while doing or working to keep your job. For instance, if you’re in a legal dispute with your company over unlawful termination, you could deduct the expenses as long as you’ve paid the fees you’re deducting and you’re deducting them in the year you paid them.

Legal deductions are limited to two percent of your Adjusted Gross Income (AGI). For instance, if your adjusted gross income is $40,000, your deduction would be limited to $800 – two percent of $40,000.

4. Educator Expenses, Form 1040, Line 23
If you worked as an eligible educator in a K-12 school as a teacher, aide, counselor, or administrator, and you personally purchased ordinary and necessary back-to-school supplies for the classroom, you can deduct up to $250 worth of these expenses on your 1040 form. If you spent more than $250, you can deduct the remainder on Schedule A.

If you’re married and filing jointly, and your spouse is also an eligible educator, you can deduct up to $500 total in educator expenses, but neither you nor your spouse may deduct more than your individual $250 limit.

5. Charitable Mileage, Schedule A, Line 16
While it’s widely known that cash or goods donated to charities are tax-deductible, you may not realize that mileage driven as a volunteer is also deductible. If you drive to your volunteer location or run any errands while volunteering, keep a log of your miles. You can deduct 14 cents per mile plus parking and toll fees.  You can also deduct the fees you pay to use public transportation to go to and from the volunteer location.

6. Contributions to Fraternal Lodge Societies, Schedule A, Line 16
These are also considered charitable donations – to a point. Dues that are specifically required of members are not deductible, but donations in excess of the required amount which are used for qualified charitable purposes (such as the Shriners hospital funds, or donating to local charities) are considered charitable donations. You can claim an amount up to a maximum of 30% of your adjusted gross income (AGI).

7. Losses Due to Theft or Destruction, Schedule A, line 20
If your car was hit by hailstones or you lost siding in a natural disaster, you can deduct the amount of the loss that you weren’t reimbursed by your car or homeowners’ insurance company. You must complete Form 4684 to determine the amount you can deduct.

8. Retirement Savings Contribution Credit, Form 1040, Line 50
If you contributed to your 401k, another retirement plan through work, or a traditional or Roth IRA, you may be eligible for the saver’s credit. The maximum credit for individual filers is $1,000 if you contribute at least $2,000 to a qualified retirement account. Those who are married filing jointly may receive up to $2,000 in credit.

However, you must meet the income requirement for your filing status in order to qualify, and the lower your income, the greater the credit you can receive – an amount ranging from 10% to 50%. For 2013, the income limits are $29,500, $44,250, and $59,000 if you file as single, head of household, or married filing jointly, respectively. Use Form 8880 to determine your total credit and credit rate.

9. Education Credits, Form 1040, Line 49
Did you take a knitting class or pick up sign language or another life skill at your local community college this year? What about the continuing education classes you took for your job? Any expenses incurred may qualify for the Lifetime Learning Credit, which can net you up to $2,000 in tax credits. You can get this credit for classes taken by your spouse or any dependent as well, as long as you aren’t part of an employer tuition reimbursement program. The more well-known American Opportunity credit allows you to deduct up to $2,500 in expenses for undergraduate students, including you or your spouse. It is also a refundable credit – unlike the Lifetime Learning credit. In other words, you can get a portion of it refunded to you, even if you have no tax liability. If you claim either credit, you cannot also claim the tuition and fees deduction on your 1040.

10. Property Taxes on a Timeshare, Schedule A, Line 6
Frequently, your portion of the property taxes paid on a timeshare are included in your yearly maintenance fee. Check the statement to see if they are separated out. Additionally, if you sold a home or timeshare this year, any property taxes you already paid should be on your settlement statement and can be deducted as well.

11. Last Year’s State Income Taxes, Schedule A, Line 5a
If you owed any state tax from 2012 and paid it in 2013, be sure to deduct it on your Schedule A, as it’s now a deduction for 2013.

You may also elect to deduct state and local sales taxes instead of state income taxes. These are entered on Schedule A, Line 5b. You may use your actual expenses, or the state and local sales tax tables located in the Instructions for Schedule A to determine your deduction. Your deduction is based on the state where you live, your AGI plus any nontaxable items, and the number of exemptions claimed on your tax form.

12. Penalty on Early Withdrawal of Savings, Form 1040, Line 30
Did you cash in a certificate of deposit early this year? If you were charged a fee for doing so, you can deduct the penalty on your 1040 as part of your AGI.

13. Medicare B and D Premiums, Schedule A, Line 1
Medicare B and D premiums (which you sign up for voluntarily) can be deducted as a medical expense. Also, if you aren’t eligible for Social Security and you voluntarily enroll in Medicare A, you can deduct your Medicare A premiums.

Beginning January 1, 2013, you can only deduct the part of your medical or dental expenses that exceeds 10% of your AGI.

14. Breastfeeding Equipment and Pumps, Schedule A, Line 1
An IRS ruling has declared breast pumps and other breastfeeding equipment to be medical equipment, which means its cost can be deducted on Schedule A. Since these pumps are often expensive, adding their cost to your other medical expenses can help you achieve the required total before deductions are meted out (10% of AGI).

15. Financial Planning and Management Expenses, Schedule A, Line 23
If you subscribed to an investment newsletter, paid a financial advisor to review your retirement plan, had an attorney prepare a living will or trust, or otherwise spent money to manage your money, you can deduct these expenses.

Veterinary Tax Deductions

Fraser Sherman, Demand Media Even if you love your pet like a child, you can't claim him as a dependent. People have tried that, but the IRS says no way. A bill to make pet costs tax deductible came before Congress in 2009 but as of 2013, it hasn't become law. Until that changes, animal owners, with a few exceptions, don't get to write off vet bills.

SERVICE ANIMAL

The days when "service animal" only meant "seeing-eye dog" are long gone. Dogs work with the deaf to alert them to dangerous sounds, and they can be trained to pick up and carry items for people with disabilities. The cost of a service animal counts as a tax deductible medical-expense. That includes not only buying and feeding the animal but whatever you need to keep it healthy, including veterinary care.

FOSTER CARE

For years the IRS insisted that the cost of fostering stray or injured animals wasn't tax-deductible. If you just take in a stray kitten you found on your doorstep, it still isn't deductible. If, however, you foster animals as part of your work with a 501(c)3 animal-welfare group -- one you can make tax-deductible donations to -- you can now write off your expenses, including veterinary care . If you reserve part of your house for fostering, you may be able to deduct part of your utility bills as well.

BUSINESS

If you can tie your animals to your business, you have a valid write-off. For instance, if you have a guard dog patrolling your junk yard after hours, the expenses associated with the animal are a legitimate write-off .Farming, training performing dolphins or breeding dogs professionally, even if it's part-time, are all businesses. If the animal is a necessary business asset, taking care of her is deductible. If you simply bring the family cat to work, the auditor probably won't won't be impressed.

CLAIMING THE WRITE-OFF

Business expenses are deductible on the same form you use to report your business income, typically Schedule C. Medical and charitable write-offs require that you itemize: if you take the standard deduction, it's a no-go. Medical deductions are particularly tough. You have to add up all your deductible medical bills, then subtract 10 percent of your adjusted gross income. What's left is all you get to write off. The complete list of approved medical expenses is in IRS Publication 502.

Understanding The Home Office Tax Deduction

Mark Boss for Less Accounting writes: The home office tax deduction is real. You’ve probably never used it, but you’ve heard of it because your buddy said his former college roommate who started a web design studio in his basement uses it. But whether you work at home for someone else or for yourself, you may qualify for this deduction.

However, the IRS does have rules, and two of their keywords are “exclusively” and “regularly.” In other words, the workspace you claim must be used exclusively for work and not for other activities. And it must be used regularly, although that is a bit more difficult to define.

The IRS does provide some flexibility, though. While you might assume that the space you’re claiming must be your principal place of business, it can also be where you meet clients or store business inventory. It can even be a separate structure not attached to your home. For example, if your art studio is in a separate building in your backyard, it may actually be easier to claim because it’s used exclusively for business.

Size of Your Home Office

The math involved is based on what percentage of your home is used for work. So if you use a 10 x 12 spare room exclusively and regularly as an office, you’re using 120 square feet for work. Let’s say your house is 2400 square feet total. So divide 120 by 2400, and you’ll see that your workspace is .05 or 5% of your home.

Chicago based accountant, Mike Carney writes, “I always encourage taking the home office deduction if it’s legit. The room has to be dedicated space for your work. A separate room is preferable and it can’t be a HUGE proportion of the overall square footage of the home.”

If you’re self-employed, this deduction should be no problem. However, if you someone employs you, the IRS states that your work at home must be for your employer’s convenience, not yours. So if your employer doesn’t have an office for you to report to and has asked you to work at home, you qualify. But if you work at home because you like working in your pajamas and hate riding the subway, you don’t qualify.

Some people worry that attempting the home office deduction will get them ‘red flagged’ and could lead to an IRS audit. But St. Louis accountant, Kevin McCoy says, “I think the red flag for audit thing is an urban myth. Historically, only about 1% of returns are audited, so the risk is pretty low anyway. I tend to be conservative with tax stuff, but I always tell clients if they are entitled to a deduction and have the proper documentation–take it and don’t look back.”

If you decide to take the home office deduction, this might lead you to consider taking deductions for home office expenses. For tax purposes, these expenses come in two flavors. Direct expenses pertain to the workspace you are claiming, and include things like painting your office or repairing damage to it. Indirect expenses deal with your whole house. For example, you pay an electrical bill for your entire house, not just the home office, so you can only take a partial deduction. This is another situation where having a separate structure might make your claim more simple.

When it comes time to download the specific forms, you’ll need Form 8829 (Expenses for Business Use of Your Home) if you are self-employed. Use Form 8829 to calculate your home office deduction and then include that information on Line 30 of your Form 1040 Schedule C (Profit or Loss from Business).

Self-Employed Tax Deduction

In general, the home office deduction is easier to justify if you’re self-employed, but if someone else employs you, remember that working at home must be for their convenience. A separate structure is easier to justify than a room inside your house, but a room inside is fine if it’s used exclusively and regularly for your business. The main thing is to keep good records. Solid documentation will justify your claim and help you through an audit just in case you’re that 1%.

For further explanation and links to forms, check out this IRS page “Work from home? Consider the Home Office Deduction.”

Ranking the Top 20 Best Affordable Online Accounting Degree Programs 2014

Online Accounting Degree Programs writes: Top 20 Best Affordable Online Accounting Degree Programs (Bachelor’s) 2014

Are you intrigued by the idea of getting an affordable online accounting degree from a highly ranked institution?

Online education has exploded in recent years, with many colleges and universities leveraging the power of online collaboration, videoconferencing, and cloud-based tools to help non-traditional students obtain degrees in a variety of fields. In short, online degrees are maturing in all aspects, and prospective accounting students are benefitting from this trend as more and more excellent and relatively cheap accounting degree programs become available online.

Ranking the Top 20 Best Affordable Online Accounting Degree Programs 2014

Among the many accredited online accounting degree programs available, we decided to explore the notion of getting a high quality degree at an affordable price. It turns out that many highly ranked colleges and universities offer online accounting degrees, at a cost that can be very affordable compared to many others. The schools that made our ranking offer accounting students an exceptionally valuable education.

The criteria we used in developing this ranking is as follows.

- The school must be in the top 100 Best Online Bachelor’s Programs nationwide according to U.S. News and World Report. (Listed below as “Bachelor’s Degree Ranking.”)
- The school must offer an online Bachelor’s in Accounting or an online Bachelor’s in Business Administration with a concentration in Accounting.
- Among these schools, we selected the 20 cheapest online accounting degree programs based on cost of tuition (source: College Navigator).

Many of these institutions also have top-100 ranked business schools (source: U.S. News and World Report). We’ve included this information here (listed below as “Business School Ranking”), and we encourage prospective students to consider these honors as well as the honors of other national rankings as they think about the overall value of their degree.

Schools are listed in our ranking in order of the cost of their tuition, from most expensive to least expensive.

20. St. Leo University

Degree: Bachelor of Arts in Accounting Online

Program Website

St. Leo has been providing distance education services to students since long before the Internet was commonplace in America’s homes. Since 1973, students have been earning degrees in business-related fields and other pursuits, all without setting foot on campus. This gives the university a solid track record of producing well-rounded, successful students in a number of key disciplines. With more than 15,000 students across the country, St. Leo is easily a top option for a B.A. in accounting.

Tuition: $19,370
Bachelor’s Degree Ranking: #53
Business School Ranking: N/A
Other Achievements: Best regional universities (U.S. News and World Report), Best colleges for veterans (U.S. News and World Report)
Accreditations: Southern Association of Colleges and Schools

19. Grand Canyon University

Degree: Online B.S. in Accounting

Program Website

Grand Canyon started out as a private, liberal arts college but was purchased by a for-profit corporation in 2004. Since then, the university’s campus has been completely overhauled while many of its programs have been made available online. While students can always opt to attend classes on the school’s actual campus, all online degrees can be earned from home. With years of experience in the industry and a history of investing in cutting-edge educational tools, students will be excellently prepared for a future in any accounting-related profession.

Tuition: $17,000
Bachelor’s Degree Ranking: #63
Business School Ranking: N/A
Accreditations: North Central Association of Colleges and Schools, Association of Collegiate Business Schools and Programs

18. Peirce College

Degree: B.A. in Business Administration, Accounting Concentration Online

Program Website

Based in Philadelphia, Peirce is another institution that offers both on-campus programs and online degrees. Students in Philadelphia can choose from offline, online, or hybrid programs, while students nationwide can choose from online-only degrees. In continuous operation since 1865, Peirce is one of the best distance learning schools for business education anywhere in the country. Its affordable tuition rate is an even better perk for students who don’t want to graduate significantly in debt.

Tuition: $16,500
Bachelor’s Degree Ranking: #52
Business School Ranking: N/A
Accreditations: Middle States Commission on Higher Education, Accreditation Council for Business Schools and Programs

17. DeVry University

Degree: Online B.S. in Accounting

Program Website

Since 1931, DeVry has been providing students the opportunity to pursue a degree from virtually anywhere in the country. The school’s accounting program has risen in the rankings for the past several years, and now is part of the top 100 online degrees offered anywhere in the United States. With both regional and business-specific accreditation, DeVry offers students the convenience of online education with the prestige of a more traditional degree.

Tuition: $15,915
Bachelor’s Degree Ranking: #61
Business School Ranking: N/A
Accreditations: North Central Association of Colleges and Schools, Accreditation Council for Business Schools and Programs

16. Regent University

Degree: Online B.S. in Business, Accounting Concentration

Program Website

Regent University is probably most widely known for its commitment to both Christian values and rigorous education. Its online programs are just as rigorous, and offered with some of the most innovative online collaboration tools in the business. With the help of highly skilled professors who teach both online and at Regent’s offline campus, students have access to some of the foremost accounting experts in the country.

Tuition: $15,308
Bachelor’s Degree Ranking: #10
Business School Ranking: #75
Other Achievements: Southern Association of Colleges and Schools, Accreditation Council for Business Schools and Programs
Accreditations: Best tier-2 national university (U.S. News and World Report)

15. Northwestern State University of Louisiana

Degree: B.S. in Accounting Online

Program Website

Founded as a “Normal School” to educate new teachers, Northwestern State University in Louisiana today is an innovator in providing education to students nationwide. The university offers an online bachelor’s of science degree in accounting, which provides the affordability of public higher education with the convenience and accessibility of online courses, discussions, lectures, and materials. The university’s accreditation further makes it a powerhouse of both online and business-related education.

Tuition: $14,923
Bachelor’s Degree Ranking: #57
Business School Ranking: N/A
Other Achievements: Best student services and technology (U.S. News and World Report)
Accreditations: Southern Association of Colleges and Schools, Association to Advance Collegiate Schools of Business

14. City University of Seattle

Degree: Online B.S. in Accounting
Program Website

Established in 1973, City University of Seattle has experienced enormous growth in both online and offline enrollment over the past 40 years. That’s due in large part to a track record of investment and improvement, creating some of the best and most accessible degree programs for all kinds of students. Today, the school’s accounting program ranks in the top 50 online bachelor’s degrees offered nationwide. That’s a major boost to students looking for post-graduation employment.

Tuition: $14,440
Bachelor’s Degree Ranking: #48
Business School Ranking: N/A
Other Achievements: Best regional university (U.S. News and World Report)
Accreditations: Northwest Commission on Colleges and Universities

13. Pennsylvania State University, World Campus

Degree: Online B.A. Business Administration, Accounting Option

Program Website

The university is the single largest higher educational institution in Pennsylvania and one of the most prestigious state universities anywhere in the United States. Its global campus brings 200 years of prestige to students across the country, with a flat tuition rate that’s predictable, affordable, and reasonable. With its top-20 ranking for both its degrees and its business schools, students will graduate with a powerful degree and an unprecedented opportunity for networking within the profession as they develop their long-term careers.

Tuition: $12,962
Bachelor’s Degree Ranking: #16
Business School Ranking: #19
Other Achievements: Top school for recruiters (Wall Street Journal), Fifth-best accounting program (Wall Street Journal), Top 10 best colleges (U.S. News and World Report)
Accreditations: Middle States Commission on Higher Education, Association to Advance Collegiate Schools of Business

12. Jones International University

Degree: Online B.A. in Business Administration, Accounting Concentration

Program Website

Jones International offers 60 degree programs, all of which are based entirely online. Is accounting degree is a strong option for students, boosted by affordable tuition and a growing team of professors who are experts in the field. With great collaboration tools and a reputation for outpacing the competition, this for-profit university is a great choice.

Tuition: $12,720
Bachelor’s Degree Ranking: #84
Business School Ranking: N/A
Accreditations: North Central Association of Colleges and Schools,

11. Florida Institute of Technology

Degree: Bachelor of Arts in Accounting Online

Program Website

Perhaps the most impressive thing about FIT is that it has only been serving students since 1958. In that amount of time, however, the institution has graduate more than 60,000 students in a variety of business and technology-related fields. A great choice for nontraditional students and active-duty members of the military, this is a strong option for those with a future in accounting.

Tuition: $11,880
Bachelor’s Degree Ranking: #78
Business School Ranking: N/A
Other Achievements: Best National University (U.S. News and World Report), Best Military-Friendly University (G.I. Jobs)
Accreditations: Southern Association of Colleges and Schools

10. University of Minnesota, Crookston

Degree: Online B.S. in Accounting

Program Website

UMC Crookston is known for experimentation, primarily in the world of agriculture. It has also been a real innovator in online education, bringing some of its most popular four-year programs to a nationwide audience in the 21st century. Today, students enjoy regular use of discussion posts, video lectures, and online course materials as they pursue the prestigious University of Minnesota degree.

Tuition: $11,456
Bachelor’s Degree Ranking: #60
Business School Ranking: N/A
Other Achievements: Top 4 Midwest public colleges and universities (U.S. News and World Report)
Accreditations: North Central Association of Colleges and Schools

9. Herzing University

Degree: B.S. in Accounting

Program Website

Since 1965, Herzing University has promoted itself as a career-focused university for those who prefer distance learning to attending classroom lectures. Today, the university has built a strong reputation for business-related programs online that give students the tools they need to succeed offline for the long-term. Accounting is one of the school’s most popular degrees and also one of its most prestigious, with a high placement rate and students who really excel in their careers after graduation.

Tuition: $11,150
Bachelor’s Degree Ranking: #80
Business School Ranking: N/A
Other Achievements: Best Online Program in Wisconsin (U.S. News and World Report)
Accreditations: North Central Association of Colleges and Schools

8. Brandman University

Degree: B.A. Business Administration, Concentration in Accounting Online

Program Website

Brandman is pretty unique, since it’s actually part of the private Chapman University system. The Brandman University name is applied to all of Chapman’s online programs, including its pretty impressive accounting program. With a business school that ranks in the top 70 nationwide and a top-10 online degree ranking, graduates from Brandman stand out as some of the best-qualified students for accounting-related professions nationwide.

Tuition: $10,243
Bachelor’s Degree Ranking: #8
Business School Ranking: #70
Accreditations: Western Association of Schools and Colleges

7. University of Phoenix

Degree: B.S. in Accounting

Program Website

Few names are more synonymous with online education than the University of Phoenix, which at one time was responsible for educating more than 600,000 concurrent students. Though enrollment has declined in recent years, the University of Phoenix has continued to invest in regional campuses across the country and enhanced tools for its students. To that end, the school’s online degree ranks in the top 80 nationwide and its fortunes are only expected to increase in the future.

Tuition: $9.937
Bachelor’s Degree Ranking: #79
Business School Ranking: N/A
Accreditations: North Central Association of Colleges and Schools, Accreditation Council for Business Schools and Programs

6. Colorado State University, Global Campus

Degree: Online Bachelor of Science in Accounting

Program Website

CSU’s Global Campus was founded in 2007 to bring the prestige of the University of Colorado to a nationwide, online audience. The school’s degree ranks in the top 10 issued online in the United States, while its business school ranks in the top 100 business schools, online or offline, across the country. That bodes well for graduates, who have excellent job prospects and networking opportunities immediate after graduation.

Tuition: $8,400
Bachelor’s Degree Ranking: #7
Business School Ranking: #99
Accreditations: North Central Association of Colleges and Schools, Association to Advance Collegiate Schools of Business

5. Baker College of Flint

Degree: B.S. in Accounting Online

Program Website

Baker operates 13 campuses throughout Michigan’s Lower Peninsula, which has given it the managerial skills necessary to create a really great online program. Accounting students benefit from cutting-edge collaboration and assignment tools, and they earn an online degree ranked in the top 100 nationwide. With an expanding enrollment and affordable tuition, Baker College is an easy choice for many.

Tuition: $7,740
Bachelor’s Degree Ranking: #98
Business School Ranking: N/A
Accreditations: North Central Association of Colleges and Schools, International Assembly for Collegiate Business Education

4. Granite State College

Degree: B.S. in Accounting and Finance

Program Website

Part of the University of New Hampshire System, Granite State College operates several offline campuses in addition to its online presence. ITs degrees are ranked in the top 30 nationwide for online institutions and its students enjoy excellent networking after graduation. With affordable tuition that can only come from a public school, this is also a great option for students looking to keep their debt load minimal.

Tuition: $7,305
Bachelor’s Degree Ranking: #27
Business School Ranking: N/A
Other Achievements: Best for Social Mobility (Washington Monthly)
Accreditations: New England Association of Schools and Colleges

3. Columbia College

Degree: Online B.A. in Business Administration, Accounting Concentration

Program Website

Recognized as a top choice for active duty military service members and veterans, Columbia College offers several prestigious programs from its Missouri center of operations. Its accounting degree is ranked well both in terms of the degree itself and the business school that offers it, and students greatly benefit from access to some of the most esteemed accounting professions in the Midwest as they pursue graduation.

Tuition: $6,739
Bachelor’s Degree Ranking: #36
Business School Ranking: #67
Other Achievements: Best Midwestern College (Princeton Review), Best Buy (GetEducated.com)
Accreditations: North Central Association of Colleges and Schools

2. American Public University System

Degree: B.S. in Accounting Online

Program Website

The American Public University System was founded exclusively to serve veterans across the country and around the world, though it now serves even non-military students who simply need access to a great online program. In accounting, APUS offers one of the best-ranked bachelor’s degrees and pairs it with accounting professors who are among the most experienced in their field. Since professors come from all across the country, students have access to a variety of networking opportunities and real industry insights.

Tuition: $6,400
Bachelor’s Degree Ranking: #22
Business School Ranking: N/A
Accreditations: North Central Association of Colleges and Schools, Accreditation Council for Business Schools and Programs

1. Bellevue University

Degree: Online B.S. in Accounting

Program Website

Nebraska’s Bellevue University stands out as offering the lowest tuition for an online accounting program. It also offers a top 10 online bachelor’s degree, giving students a great deal of power and prestige as they seek their first position in the industry. With expert professors and excellent online tools, this degree should be a top consideration for those who don’t want to go into excessive student debt.

Tuition: $6,300
Bachelor’s Degree Ranking: #9
Business School Ranking: N/A
Other Achievements: Top 3 online schools for veterans (U.S. News and World Report)
Accreditations: North Central Association of Colleges and Schools, International Assembly for Collegiate Business Education

Excellent Institutions for the Aspiring Accounting Students

Without setting a foot outside the home, today’s aspiring accountants can achieve a prestigious degree in the field using only their Internet connection and some unique collaboration tools. These programs vary from private, religious institutions to for-profit universities and public colleges supported by state funds. At each them, tuition is priced affordably for all students, programs are designed to be both rigorous and self-paced, and the use of cohorts allows students to develop digital rapport with fellow online accounting students and esteemed professors in the field.

There’s never been a better time to apply to one of the top 20 affordable online accounting degree programs in the country. With a fast pace of growth and a number of highly ranked degrees, these programs will produce future accountants who excel in their profession at all levels.

Top 10 Accounting Modules That Every ERP (Enterprise Resource Planning) Solution Should Have

ERP Software News writes: The foundation of a modern ERP solution is a combination of the functionality of financial information and accounting. Many business owners are interested in knowing more about how they will manage the wide range of financial processes and what they should be looking out for when it comes to essential accounting features in an ERP solution.

1. Key Performance Indicators

KPIs are metrics which are designed so that business owners can get a good indication of the health of their business quickly and without much effort as frequently as needed. If a business is counting sales at a certain time of day they might be able to predict the volume of sales for the next day and schedule any kind of staff that is required to handle the volume.

2. Payroll

If you have a large business, you probably have a dedicated payroll department. It is the job of the payroll department to keep track of hours of employees, track deductions and remit payments to the appropriate authorities.

3. General Ledger

This is the section of accounting information where balance sheet and income statement details can be found. If inventory is moving, supplier payments, shipped orders and other transactions are all posted to these “books” to produce a summary which you may know as a financial statement.

4. Fixed Assets

Any equipment that is owned by your business including machinery, equipment, land and buildings is called a fixed asset. Fixed assets need to be regularly maintained and the cost of that maintenance is spread out over several years and is posted as a depreciation expense.

5. Control

Control is one of the main aspects of business management. Control is often managed by the accounting department where personnel have the means to compare budget expenses to help control costs. If revenue from customers can be measured it helps to control profitability. The financial return on assets can be measured and this can help to manage the investment in equipment and other fixed assets.

6. Analysis

Accountants have a wide range of skills and one of those skills is analysis. They are very in tune with details and analysis helps them to find every possible way to save money through budgeting and cost cutting.

7. Job Cost

The cost of manufacturing a product for sale is accounted for in a job. A job can include every detail including all of the labor and materials required to complete a customer order. The profit on each job is the difference between sales revenue and job cost.

8. Accounts Payable

Accounts payable is a list of all of the money that is owed to others that is due in the year. Much of this money is due to suppliers who provide the materials which are purchased for inventory. Supplies, rent and payments due are added to accounts payable and all amounts are paid when they come due by employees who work in accounts payable.

9. Accounts Receivable

Accounts receivable is money that is owed to you by your customers for any purchases that they have made. Sales are sometimes made on the condition that the customer has a certain amount of time to pay for their purchase. Most often this is net 30, which gives the customer 30 days to pay. If purchases by customers become past due, you want to know that your ERP solution can help you to find and retrieve these funds.

10. Reporting

Do you know how your business is doing? The government wants to be paid taxes based on your profit and banks need to know that their loan is secure. Business owners and managers want to have a good idea of what is going on with the company’s finances too.

The 7 hottest 401(k) trends for 2014

PAULA AVEN GLADYCH For BenefitsPro writes:  What’s going to take off this year? Fidelity's 401(k) team put together a list of trends it believes will gain a lot of traction in the coming months, including higher adoption of Roth 401(k) and managed account options.

1.     Self-directed brokerage windows. To give participants more investment choices, employers are offering self-directed brokerage options that allow them to invest in options outside of the company’s fund lineup. Brokerage windows continue to gain in popularity, with about 26 percent more assets in 2013 than in 2012, Fidelity found. It also found that there were 18 percent more participants using brokerage windows in 2013 than in 2012.

2.     Roth 401(k)s. Employers continue to add Roth 401(k) features to their plans as a way to help participants manage the uncertainty of tax rates in the future. According to Fidelity, as of Sept. 30, 2013, about 42 percent of 401(k) plans offered a Roth 401(k) savings option, up from 21 percent in 2009. As more employers add a Roth option, participation adoption and utilization will continue to increase.

3.     Expansion of “auto” features. According to Fidelity, nearly one-quarter of 401(k) plans offer auto enrollment, up from 17 percent in 2009. Among large plans, 60 percent have adopted auto enrollment, which is having a positive impact on participation rates. Plans with auto enrollment have an 84 percent participation rate compared to 53 percent for plans without auto enrollment. When combined with auto escalation features, the numbers improve even more.

4.     Understanding how your plan compares to other plans. An increasing number of employers want to know how their plan design and participant behaviors compare to other company plans. They also want to understand whether their employees are prepared for retirement. Through the use of new tools and services, employers will be able to get specific in their comparisons and find out if employees are taking the right steps toward a successful retirement, Fidelity said.

5.     Increasing use of high deductible health plans. As high-deductible plans become more popular, companies will start making health savings accounts available to help employees save for both current and future health costs in a tax-advantaged account.

6.     Managed account options.Fidelity noted that one-third of 401(k) participants had 100 percent of their retirement plan assets in a target-date fund, up from just 3 percent 10 years ago. For younger workers, 55 percent had all of their assets in a TDF. Nearly 1,800 plans now offer a professionally managed account option, up from 489 in the third quarter of 2009, Fidelity found.

7.     Plan sponsors concerned with retirement outcomes. Plan sponsors are taking an active interest in the retirement outcomes of their employees. Instead of just providing a defined contribution plan for employees and forgetting about it, they are designing “outcome-based” plans. Companies will continue to leverage new technology and measurement tools to help their workforce understand how to make the best use of their plan and realize what their savings will provide when they reach retirement.

SalesPad Introduces SalesPad SB: Business Management Software that works with Intuit QuickBooks

The launch of SalesPad SB product suite takes successful features from SalesPad LLC's Microsoft Dynamics GP software and now offers them to QuickBooks users.  SalesPad  a longtime developer of software as a front-end to Microsoft Dynamics GP, has launched a new software product suite, SalesPad SB, designed for businesses using Intuit QuickBooks®. With the success of SalesPad GP, the company's sales, order entry and customer service product for Microsoft Dynamics GP®, SalesPad SB combines with Intuit QuickBooks’ simple and powerful accounting functionality to create a truly powerful enterprise application.

SalesPad® SB for use with Intuit QuickBooks® delivers an all-in-one sales, customer service, CRM, reporting, and business management solution for desktop and mobile devices. It utilizes Microsoft SQL Server® and a SQL database to store QuickBooks® data. The client and server design offers significantly increased speeds for processing.

Knight Watch, a distributor of security and energy systems, was an early adopter of the SalesPad SB software. Knight Watch’s CEO Eric Lindsley, on the topic of scalability, said, "A big advantage of SalesPad SB is that it takes QuickBooks and gives you the ability to take a small company that might be 5 to 10 people and very easily go to 100—200—300 people. You can scale it from very small to very large. As a business owner, that’s a huge thing." 

The SalesPad SB product suite includes the core desktop application, iOS and Android mobile apps, and integration with Microsoft Outlook. SalesPad SB also provides powerful workflow capabilities, such as a customizable sales process that lets you route a document through your business process. Additionally, the solution offers a dashboard designer and viewer for reporting and analysis, a Report Manager to simplify report generation, and customizable document output via a Report Writer.

“Small and medium businesses can now add Fortune 500 tools at a low price point,” said Jon Reifler, SB National Sales Manager. In addition, the solution’s highly configurable architecture makes it easy to customize. “SalesPad SB is extremely configurable,” says Lindsley. “SalesPad thought of that, and the framework is there. With some configuration, you can get SB to do almost anything you want it to do, and that’s very nice because small businesses like us don’t have the money to put a guy on staff that will cost $150,000 a year.”

Retirement Plan Deductions, Contributions: 2014 Caps

PAUL KATZEFF, INVESTOR'S BUSINESS DAILY WRITES: Congress giveth, Congress taketh away. Many of the ceilings on contributions and deductions for a variety of retirement and health savings accounts changed this year.

Some are up, others stayed put or disappeared — so far, anyway, in the case of the popular charitable individual retirement account rollover. "You can't plan without knowing what changed and what didn't," said CCH tax expert Mark Luscombe. Here are key new rules:

• 401(k) contribution limit. The maximum that you can kick in stays the same this year: $17,500. If you are age 50 or older, the catch-up contribution ceiling is also unchanged at $5,500.

Only 11% of members of 401(k) plans run by Vanguard Group in 2012 contributed the basic maximum. You can beef up your nest egg a lot just by boosting the amount you pony up each year.

• IRA contribution limit. Here too the maximum stays the same: $5,500. Ditto for the $1,000 catch-up contribution max.

• Eligibility for IRA deduction. This concerns eligibility to deduct your contribution, not eligibility to make a contribution.

The tax deduction phases out for savers who have a workplace retirement plan like a 401(k) or whose spouse does, depending on the saver's modified adjusted gross income. For a single taxpayer or head of household, the phaseout starts once your MAGI hits $60,000. Eligibility ends totally at MAGI at $70,000. Last year's phaseout range was $59,000 to $69,000.

For marrieds filing jointly, when the account owner is covered by a workplace plan, the new phaseout range is $96,000 to $116,000. That's $1,000 higher on both ends of the range.

If the nonaccount-owner spouse is covered by a workplace plan, the phaseout range is $181,000 to $191,000, up $3,000 on each end.

For a single filer who does not have a workplace plan, your IRA contribution is deductible no matter what your MAGI is.

Even with little or no deduction, try to contribute. Ed Slott, editor of the IRA Advisor newsletter, said, "You get something like a Roth IRA. No deduction, but tax-free withdrawals."

• Roth IRA eligibility. Eligibility to contribute to a Roth IRA phases out with adjusted gross income of $114,000 to $129,000 for singles and heads of household. That's up $2,000 vs. 2013. The phaseout range is $181,000 to $191,000 for marrieds filing jointly, up $3,000.

If your income is too high, you can make a nondeductible contribution to a traditional IRA and convert to a Roth.