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ACCEPTING NEW CLIENTS!
CENTRALLY LOCATED AT:
1451 EAST LANSING DR., STE. 222
EAST LANSING , MI 48823
CHARLES K. POOR, CPA, PC is a full service CPA firm serving small businesses, non-profit organizations and individuals since 1994. The firm provides services in Michigan and beyond.
The firm is a member of the American Institute of Certified Public Accountants and Michigan Association of Certified Public Accountants. As members, our work is peer reviewed every three years. Our last peer review was in January, 2010. The peer review resulted in a clean opinion and no letter of comments, placing us in the upper third of audit firms.
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SERVICES PROVIDED INCLUDE:
Small Businesses: Monthly, quarterly, or annual financial statements for your business, payroll tax service, live payroll service, monthly bookkeeping, sales tax preparation, year-end payroll and related processing, Quickbooks set-up and training, business tax returns, including 1120 and 1065, choice of entity, sale or purchase of business, new business tax registrations, budgeting and business planning, IRS and state of Michigan representation.
Non-Profit Organizations: Financial statement audit, review, or compilation, payroll tax service, live payroll service, monthly bookkeeping and financial statement preparation, year-end payroll and related processing, Quickbooks set-up and training, new entity filings including non-profit status from IRS, budgeting, non-profit form 990 and 990T and solicitation license. IRS and state of Michigan representation Attention non-profit managers – We can be your auditors or help you get ready for your auditors.
Payroll Service: We can provide complete, live payroll services including direct deposit and preparation of all forms for all types of employers.
Individuals and Self-Employed: Tax preparation, home office details, personal financial statement preparation, tax and financial planning, trust and estate income tax preparation, mutual fund selection, federal college aid form (FAFSA). IRS and state of Michigan representation. Moving? Need multiple states e-filed? No problem.
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FEE DISOUNT NOW IN EFFECT: Sign up for annual audits for four or more years and get a substantial fee discount. Call our office for details.
New 990 - As many of you know, the 990 was new and expanded starting in 2008. There are many more required disclosures and schedules. Three examples of new questions are: 1) Do you have a written conflict of interest policy?, 2) Do you have a written whistle blower policy, and 3) What is your method for hiring and paying your chief executive officer? During the first few years of the new form the filing threshhold was raised. However, now it is low enough to require many small non-profits to file. Call our office for details.
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The 2010 tax rates are going to be extended for 2011. For those who were planning for higher rates in 2011 (by accelerating income or delaying expenses) should pause and re-evalute.
Child tax credits are to continue, energy and education credits are to continue, but making work pay credit will expire in 2011.
From the health care reform legislations, adult children will be able to remain dependents for insurance purposes until they reach age 27. There are new prohibitions against pre-existing condition discrimination. We don't believe the health care legislation will significantly impact our clients in 2010, and 2011. There are nuances that may effect some people.
There have been so many bells and whistles added to the tax code in the past few years we can't begin to write enough in this space. Please make sure you give us all your information that you believe may have some tax consequence.
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The standard mileage rate for the first half of 2011 is 51 cents per mile. The IRS just announced that the rate for the second half of 2011 will be 55.5 cents per mile.
The employee share of social security tax for 2011 has been dropped from 6.2% to 4.2%. The employer share remains at 6.2%.
Health care legislation may have some effect on small business. Those with no more than 25 employees and less than $50,000 average salary may be able to compute a credit to help with health care premiums. The employer must pay at least 50% of the premium. That's the main law change for 2010. There are other provisions that come into play in 2011, 2012, 2013, and 2014. In our opinion, none of the provisions significantly impact our small business clients. Beginning in 2011, small employers may set up a "simple cafeteria plan," which has relaxed nondiscrimination rules for owners.
Michigan Business Tax - The new MBT is here. But it will soon be gone. Starting in 2012 there will be a Michigan corporate income tax. It will only apply to C-corporations and will be 6% of profit. It will not apply to S-corporations and other pass through entities and the self-employed. Those folks will just pay state income tax on their 1040. Stay tuned for more details as we get closer to 2012.
One thing to keep in mind about the MBT - this is not one tax, it's two: The gross receipts tax and the business income tax. There is some good: self-employed earnings are a deduction for the business tax portion. Therefore, there is basically no more double taxation of schedule C unincorporated businesses. The filing threshold is still $350,000 of sales, like the old SBT, but there is a phase-in schedule for those with sales of $350,000 to $700,000 (so you don't feel like driving off a cliff). You only pay the full amount of tax if your revenues are over $700,000. There is a small credit for your Michigan payroll. There is still a 21% temporary (?) surcharge due to Michigan's state budget woes. There are some good Frequently Asked Questions (FAQs) on the Michigan Department of Treasury web site. However, keep in mind Treasury's answers are only their desired interpretation of the law and do not have the authority of law.
DISCLAIMER: New IRS penalty rules for tax preparers suggest that we should always have the following disclaimer, as follows: To ensure compliance with the Treasury Department regulations, we inform you that any tax advice that may be contained in this communication, including this entire web-site, is not intended or written to be used, and cannot be used for the purpose of: 1) avoiding tax related penalteis under the Internal Revenue Code or applicable state or local tax law provisions; or 2) promoting marketing or recommending to another party any tax related matters addressed herein.
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