What is the Life Cycle of an Exempt Organization?

Non-Profit OrganizationsOrganizations that meet the requirements of Internal Revenue Code section 501(a) are exempt from federal income taxation. In addition, charitable contributions made to some section 501(a) organizations by individuals and corporations are deductible under Code section 170.

Here are the five stages in an organization’s life cycle:

  • Starting Out: Creating an organization under state law, acquiring an employer identification number, and identifying the appropriate federal tax classification.
  • Applying for Exemption:  Acquiring, completing, and submitting application forms; how the IRS processes applications; and getting help from the IRS during the application process.
  • Required Filings:  Annual exempt organization returns, unrelated business income tax filings, and other returns and reports that an organization may have to file.
  • Ongoing Compliance:  How an organization can avoid jeopardizing its tax-exempt status, disclosure requirements, employment taxes, and other ongoing compliance issues.
  • Significant Events:  Audits, private letter rulings, and termination procedures.

Considering a Tax Professional? For no obligation free consultation contact us today!

ABA Tax Accounting

Amare Berhie, Senior Tax Accountant

amare@abataxaccounting.com

612-282-3200

866-936-0430 Toll Free

http://www.abataxaccounting.com

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Like to get out from under your tax burden completely.

Bankruptcy – Your back taxes, interest and penalties can be wiped out by filing bankruptcy. If you qualify, bankruptcy can be the best solution to resolve your crushing tax problems.

Unfortunately, not everyone qualifies to wipe out their tax debt in bankruptcy. Certain rules have to be met first. If you file bankruptcy and don’t meet the rules, the IRS will still be in hot pursuit after your bankruptcy is over. Proper pre-bankruptcy planning is key to determining if bankruptcy is or can be a viable solution. For no obligation free consultation contact us today!

ABA Tax Accounting

Amare Berhie, Senior Tax Accountant

amare@abataxaccounting.com

612-282-3200

866-936-0430 Toll free

www.abatax81.blogspot.com

www.abataxaccounting.wordpress.com

http://www.abataxaccounting.com

BACK TAXES OWED

Do you owe Back Taxes? You have filed your returns but didn’t have the money to pay what was owed. You may think, “Oh well—I will catch up next year.” Before you know it you find yourself several years in arrears and suddenly there is a notice from the IRS, stating that you owe three or four times the original amount.

It’s truly amazing how fast tax penalties and interest add up. Now you have a choice, you can write a big fat check and pay the full amount, including interest and penalties. Or you can just keep ignoring them while the penalties and interest keep piling up.

Luckily, we offer several options when it comes to resolving unpaid taxes. Yes, we are available to help. For no obligation free consultation contact us today!

ABA Tax Accounting

Amare Berhie, Senior Tax Accountant

amare@abataxaccounting.com

612-282-3200

866-936-0430 Toll free

http://www.abataxaccounting.com

Save 40 to 60% on costs associated with accounting and bookkeeping functions.

ABA Tax Accounting Finance and Accounting Outsourcing Services provides financial management services help companies achieve high performance within finance. Outsourcing finance and accounting presents a series of unique challenges that require proficiency and refined expertise. The competitive benefit in every industry goes to those financial managers who strategically leverage lower costs and streamline their business processes. Equally, this must be balanced with ensuring compliance with the GAAP and Sarbanes-Oxley Act. 100% U.S. based finance and accounting outsourcing solutions.
For Free Consultations call or email:
Amare Berhie, Managing Member
ABA Tax Accounting
amare@abataxaccounting.com
Toll free 866-936-0430
http://www.abataxaccounting.com

Report of Foreign Bank and Financial Accounts (FBAR)

If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service.
Who must file an FBAR? Any United States person who has a financial interest in or signature authority or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year.
Failure to file an FBAR when required to do so may potentially result in a fine up to $500,000 and a jail term of up to ten years.
The FBAR is a tool to help the United States government identify persons who may be using foreign financial accounts to circumvent United States law. Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.
For additional FBAR information contact ABA Tax Accounting. Based in MN, ABA Tax Accounting has been helping clients in Minnesota and surrounding states grow their businesses since 1989. Our significant investment in cloud computing enables us to provide affordable online payroll, bookkeeping, accounting, individual income tax, business tax, international tax, IC-DISC – U.S. export tax incentive and EB-5 Investors Green Card services in ALL 50 states. For Free Consultation call or email.
Amare Berhie, Enrolled Agent
Managing Member and International Tax Advisor
ABA Tax Accounting
amare@abataxaccounting.com
Skype id “amareberhie”
Direct 612-282-3200
G Voice 612-424-1540
Toll free 866-936-0430
http://www.abataxaccounting.com

Report of Foreign Bank and Financial Accounts (FBAR)

If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service.
For additional FBAR information contact ABA Tax Accounting. Based in MN, ABA Tax Accounting has been helping clients in Minnesota and surrounding states grow their businesses since 1989. Our significant investment in cloud computing enables us to provide affordable online payroll, bookkeeping, accounting, individual income tax, business tax, international tax, IC-DISC – U.S. export tax incentive and EB-5 Investors Green Card services in ALL 50 states. For Free Consultation call or email.
Amare Berhie, Enrolled Agent
Managing Member and International Tax Advisor
ABA Tax Accounting
amare@abataxaccounting.com
Skype id “amareberhie”
Direct 612-282-3200
G Voice 612-424-1540
Toll free 866-936-0430
http://www.abataxaccounting.com

Reporting Foreign Bank and Financial Accounts (FBAR)

Does your organization have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account? If so, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service.
For additional FBAR information contact ABA Tax Accounting. Based in MN, ABA Tax Accounting has been helping clients in Minnesota and surrounding states grow their businesses since 1989. Our significant investment in cloud computing enables us to provide affordable online Payroll, Bookkeeping, Accounting, Individual income tax, Business tax, International tax, IC-DISC- U.S. export tax incentive and EB-5 Investors Green Card services in ALL 50 states. For Free Consultation call Toll Free 866-936-0430 or email amare@abataxaccounting.com.
Amare Berhie, Enrolled Agent
Licensed to Represent Taxpayers Before the IRS

Points to Keep in Mind When Choosing A Tax Preparer

If you pay someone to prepare your tax return, the IRS urges you to choose that preparer wisely. Taxpayers are legally responsible for what’s on their tax return even if it is prepared by someone else. So, it is important to choose carefully when hiring an individual or firm to prepare your return. Most return preparers are professional, honest and provide excellent service to their clients.
Here are a few points to keep in mind when choosing someone else to prepare your return:
1. Check the person’s qualifications. Ask if the preparer is affiliated with a professional organization that provides its members with continuing education and resources and holds them to a code of ethics. New regulations require all paid tax return preparers including attorneys, CPAs and enrolled agents to apply for a Preparer Tax Identification Number — even if they already have one — before preparing any federal tax returns in 2011.
2. Check on the preparer’s history. Check to see if the preparer has a questionable history with the Better Business Bureau and check for any disciplinary actions and licensure status through the state boards of accountancy for certified public accountants; the state bar associations for attorneys; and the IRS Office of Professional Responsibility for enrolled agents.
3. Find out about their service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers.
4. Make sure the tax preparer is accessible. Make sure you will be able to contact the tax preparer after the return has been filed, even after the April due date, in case questions arise.
5. Provide all records and receipts needed to prepare your return. Most reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items.
6. Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form.
7. Review the entire return before signing it. Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.
8. Make sure the preparer signs the form and includes their PTIN.A paid preparer must sign the return and include their PTIN as required by law. Although the preparer signs the return, you are responsible for the accuracy of every item on your return. The preparer must also give you a copy of the return.

ABA Tax Accounting: The safest, fastest, easiest and most accurate way to file! For more information contact ABA Tax Accounting. Based in MN, ABA Tax Accounting has been helping clients in Minnesota and surrounding states grow their businesses since 1989. Our significant investment in cloud computing enables us to provide affordable online Payroll, Bookkeeping, Accounting, Individual income tax, Business tax, International tax, IC-DISC- U.S. export tax incentive and EB-5 Investors Green Card services in ALL 50 states. Call For Free Consultation Toll Free 866-936-0430 or email.
Amare Berhie, Enrolled Agent
Licensed to Represent Taxpayers Before the IRS

Tax-Time Errors Filers Should Avoid

Mistakes on tax returns mean they take longer to process, which in turn, may cause your refund to arrive later. The IRS cautions against these nine common errors so your refund is timely.
Incorrect or missing Social Security Numbers When entering SSNs for anyone listed on your tax return, be sure to enter them exactly as they appear on the Social Security cards.
Incorrect or misspelling of dependent’s last name When entering a dependent’s last name on your tax return, ensure they are entered exactly as they appear on their Social Security card.
Filing status errors Make sure you choose the correct filing status for your situation. There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er) With Dependent Child. Exemptions, Standard Deduction, and Filing Information to determine the filing status that best fits your needs.
Math errors When preparing paper returns, review all math for accuracy. Or file electronically!
Computation errors Take your time. Many taxpayers make mistakes when figuring their taxable income, withholding and estimated tax payments, Earned Income Tax Credit, Standard Deduction for age 65 or over or blind, the taxable amount of Social Security benefits, and the Child and Dependent Care Credit.
Incorrect bank account numbers for Direct Deposit If you are due a refund and requested direct deposit review the routing and account numbers for your financial institution.
Forgetting to sign and date the return An unsigned tax return is like an unsigned check – it is invalid. And, remember on joint returns both taxpayers must sign the return.
Incorrect Adjusted Gross Income information Taxpayers filing electronically must sign the return electronically using a Personal Identification Number. To verify their identity, taxpayers will be prompted to enter their AGI from their originally filed 2009 federal income tax return or their prior year PIN if they used one to file electronically last year. Taxpayers should not use an AGI amount from an amended return, Form 1040X, or a math error correction made by IRS.
Claiming the Making Work Pay Tax Credit Taxpayers who file Form 1040 or 1040A will use Schedule M to figure the Making Work Pay Tax Credit. Completing Schedule M will help taxpayers determine whether they have already received the full credit in their paycheck or are due more money as a result of the credit. Taxpayers who file Form 1040-EZ should use the worksheet for Line 8 on the back of the 1040-EZ to figure their Making Work Pay Credit.
ABA Tax Accounting: The safest, fastest, easiest and most accurate way to file! For more information contact ABA Tax Accounting. Based in MN, ABA Tax Accounting has been helping clients in Minnesota and surrounding states grow their businesses since 1989. Our significant investment in cloud computing enables us to provide affordable online Payroll, Bookkeeping, Accounting, Individual income tax, Business tax, International tax, IC-DISC- U.S. export tax incentive and EB-5 Investors Green Card services in ALL 50 states. Call For Free Consultation Toll Free 866-936-0430 or email.
Amare Berhie, Enrolled Agent
Licensed to Represent Taxpayers Before the IRS

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