IRS Reminds Seniors to Remain Alert to Phone Scams during Tax Season

Unfortunately, during tax season scam artists like to take advantage of our seniors and try to threaten and coerce them by pretending to be and IRS Agent or an employee of the IRS, but they are not.  These phone scammers only want your tax return money, your savings, and maybe even your identity.  Do not fall for this scam.

These con-artists usually call people with an altered caller ID used to try to convince the recipient of the call they are legitimate agents of the Internal Revenue Service, when in fact they are nothing but criminals trying to scare you into paying money.

Victims of this scam are told they owe money to the IRS and must immediately pay or they will be arrested.  The con-artist will usually tell the victim that they need to pay through a pre-loaded debit card or wire transfer.  This scam is used to pray on people they consider vulnerable and will use threats and coercion to get their money any way they can.  Do not fall for this scam.  The IRS will never contact you via phone.

Another way these criminals try to scam their victims is to tell them they are due a REFUND and will try to trick them into revealing private information.  Do not under any circumstance reveal your private information to anyone over the phone.  The IRS does not work this way.

Read more here on how to protect yourself and learn more about these scams and how to protect yourself, your money and your identity.

JBL Accounting & Tax Professionals is based in Harrison, Tennessee. We offer a full range of professional accounting, payroll and tax services to the entire Chattanooga area including, Hamilton County, Ootlewah, Fort Oglethorpe, Georgia, and Ringgold, Georgia.

Contact us today to see how we can help you!

(615) 392-0522

Advertisements

Refer A Friend… We Pay You

Our Clients Mean the World to Us!

At JBL Accounting and Tax Professionals, we understand that if it wasn’t for our accounting and tax return clients, we wouldn’t be here today.

As a way to Thank our Clients, we wanted to give a little something back to them!

Starting February 1, 2017 through April 15, 2017 we will pay your $25.00 for each new paying client you refer to us!

 

Thank you for making JBL Accounting & Professionals Services, Inc. part of your lives!

 

JBL Accounting & Tax Professionals is based in the Chattanooga, Tennessee area. We offer professional accounting and tax return preparation services to the entire Chattanooga area including, Hamilton County, Ootlewah, Fort Oglethorpe, Georgia, and Ringgold, Georgia.

Contact us today to see how we can help you!

Who Should Receive a 1099-MISC

Should I have Received a 1099?

Tax Return Preparation in Spring Hill, TNTax season is upon us and we, at JBL Accounting & Tax Professionals, get the questions “Who Should Receive a 1099-MISC?”  This can be confusing subject because different rules apply to different situations.  So let’s dive in and see if we can make the muddy water somewhat clearer.

The Internal Revenue Service, or IRS, requires businesses to file informational returns reporting gross proceeds paid in the amount of $600.00 or more to unincorporated taxpayers and some businesses.  Form 1099-MISC is one of the most common informational returns used for this reporting feature.  The IRS uses these returns to track income received by unincorporated taxpayers and some businesses in an attempt to thwart underreporting of income.  To avoid unintentional underreporting of income, you should know who is subject to informational reporting.

Facts

Generally, you must postmark any form 1099-MISC you issue by January 31st of each year, except when it falls on a weekend, in which you will have until the following Monday.  Copy B is for the taxpayer records.  The IRS receives copy A of form 1099-MISC and Form 1096 which summarizes all the 1099-MISC.  These forms are required to be postmarked by February 28, except when it falls on a weekend, in which case you will have until the following Monday.  The IRS does not require taxpayers to submit a copy of form 1099-MISC with the annual income tax return.

 Business Services

Rent payments not associated with personal payments are reportable transactions.  Examples include your business renting space, equipment or other assets paid to any one vendor.  Gross rental proceeds are reported in box 1 of your form 1099-MISC.  Physicians and other healthcare providers paid more than $600 or more from your business, in a single tax period, receive form 1099-MISC with gross proceeds reported in box 6.  Legal services rendered by attorneys require informational reporting of gross proceeds in box 14 of form 1099-MISC.

Individuals

Individuals and unincorporated businesses receive form 1099-MISC for services performed.  Individuals receiving services are not required to furnish informational returns to service providers.  Taxpayers working on fishing boats receive form 1099-MISC reporting their share of catch income reported in box 5.  There are no minimum gross proceeds required to report fishing boat income.  Non-employee individuals and unincorporated businesses receiving proceeds for services rendered are subject to informational reporting.  Non-employee compensation is the most common income reported on form 1099-MISC, with gross proceeds reported in box 7.

Proceeds

Businesses paying proceeds to individuals and other businesses report income on form 1099-MISC, in box 3.  These proceeds include winners of prizes, awards and sweepstakes, punitive damages and other income not from services rendered.  Report cash values; however, if the payment is not cash, report fair market value at the time of the payment.  Farmers who receive monies from insurance companies receive a form 1099-MISC.  Gross crop insurance proceeds of $600 or more in a single tax period would be reported in box 10.

Other Income

Various other forms of payment require the issuance of form 1099-MISC to recipients.  Taxpayers receiving royalties in excess of $10, before reductions for taxes, commissions and more, report in box 2.  Aggregate payments of $10 or more, made to securities brokers on behalf of their clients, in lieu of tax-exempt interest or dividends, are reported in box 8 of form 1099-MISC.  Taxpayers receiving golden parachute payments in excess of the base amount should report it in box 13 of form 1099-MISC.

JBL Accounting & Tax Professionals is only a phone call away to help either walk you through the process or set up an appointment to complete the 1099-MISC process for you.

JBL Accounting & Tax Professionals is based in Harrison, Tennessee. We offer professional accounting and tax services to the entire Chattanooga area, including Hamilton County, Ootlewah, Fort Oglethorpe, Georgia, and Ringgold, Georgia areas.

Contact us today to see how we can help you!

(615) 392-0522

Does Your Business Need An Accountant?

Does Your Business Need an Accountant?

So many times business owners come into our office with wondering if they need an Accountant.  This is usually how the scenario evolves when JBL Accounting & Tax Professionals, Inc. meets a new client:

JBL Accounting & Tax Professionals, Inc.: “Ok. Tell me what you are currently doing to manage your company finances.”

Client: “Well, not very much. I take in money and deposit it. I then pay the bills when they come in.”

JBL Accounting & Tax Professionals, Inc.: “So basically, if you have money in the account, you are doing well, if not, then not so much.”

Client: “Basically, yes.”

If you are in this situation you should not feel bad. If everyone was an accountant, we wouldn’t have a job. The fact is you either love accounting or you hate it.  Very rarely is there anyone in between. For this reason, new business owners should truly seek out an accountant even at the start-up of their company.

To run a successful, growing, and well-balanced business – a business should have balanced and well-managed books.  You have 3 choices when it comes to managing your corporate financial health. (1) Do it yourself, (2) Hire in-house accountant(s) or (3) Outsource to accounting professionals. Should I do it myself?

  • TIME – At a minimum, you will spend about 3 to 4 hours each day on accounting if accounting was maintained at all.
  • CONSISTENCY – Due to time constraints and other demands getting in the way, many business owners have a hard time being consistent in their approach to their financials. Financials won’t do you any good if you can’t keep them accurate.
  • ACCURACY – Do you have an accounting background, taken accounting courses, or some other source of knowledge base? Do you understand the difference between cash and accrual accounting and which is better for you? Do you know about the latest tax laws and are you managing your corporate finances to get the best tax advantages at the end of the year? Do you have time to balance the bank accounts or research complex accounting presentation?
  • MONEY – How much is your time worth? $15 per hour, $20, how about $40? If you spend 4 hours per day at a rate of $20 an hour, 5 days a week, you are paying $400 per week or $20K a year on accounting that might not be completely accurate and useful to help your business.
  • USE – Do you know how to read financials, budget, forecast, do trend analysis, prepare and pay various governmental taxes or set goals? If all of this information sounds foreign then how can you create financial goals and forecast how to make money?

So now what?  Now you have to decide if you should hire an in-house accountant or outsource to an accounting firm. Hiring an in-house accountant could be costly.  Don’t settle for someone who can handle light bookkeeping.  While this may help with lowering the expense for hiring an accounting employee, you probably won’t get the information critical to the success of your business.  Not only will you have to pay a salary for this accountant you will have to pay additional employee taxes along with unemployment taxes.  This will also force you to consider increasing your insurances and purchasing workman’s compensation.

This leaves you with outsourcing to an accounting firm. Outsourcing is the least expensive in the long run and you get more experienced professionals who want you to succeed because if your business grows and becomes successful then the professionals will increase their business as well.  In addition, there are fewer delays in getting your financials completed due to vacations, sick days, or turn-over.  Finally, accounting professionals are usually more up to date on federal and state laws and have the ability to help guide you in the best decisions for your business.  How do you find the right accounting firms?

  • EXPERIENCE – Be sure they have experience in your business industry and can handle the size of your company. You want to make sure they have a degree in accounting and have a good standing in the state.
  • COST – How do the firms charge for the work being processed? Usually firms charge in one of two different rate structures – hourly pricing or flat rate pricing. Make sure to ask about contingencies and changes and how these will affect pricing.
  • PERSONNEL – Accounting firms usually have multiple employees that will work with your business accounting. Make sure that your accounting will be reviewed by qualified management.
  • ADDITIONAL SERVICES – Accounting firms may have additional services such as quarterly business reviews, bank loan package preparations, and/or other services.

What’s next?  You need to research accounting firms and set an appointment with them.  Ask as many questions as necessary to understand who they are and if they can actually help you.  Remember you will be setting up a long-term relationship and you should completely comfortable with them.

JBL Accounting & Tax Professionals, Inc. values each and every relationship we have created.  We work to maximize these relationships by keeping our clients up to date with federal and state organizations, increasing growth through knowledge and building our community one relationship at a time.  Contact our office today to schedule an appointment at (615) 392-0522.  You can also go to our website – www.jblaccountingandtax.com – and find out who we are and what we do.

JBL Accounting & Tax Professionals, Inc. is a professional accounting, tax, and payroll firm serving the Chattanooga, Tennessee area, including Harrison, Hamilton County, Ootlewah, Fort Oglethorpe, Georgia and Ringgold, Georgia.  Our staff has over 30 years of experience in accounting, tax return preparation and payroll preparation.  We would love to meet with you and gain your trust and business.

JBL Accounting & Tax Professionals is based in Harrison, Tennessee. We offer professional accounting and tax services to the entire Chattanooga area, including Hamilton County, Ootlewah, and Fort Oglethorpe and Ringgold, Georgia

Contact us today to see how we can help you!