Tuesday, August 20, 2013

Admin. Books newsletter


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Issue #110
  August 20, 2013
 
 

Newsletter

Renee_at_WIC_Small.jpg
 
As you read this newsletter, my staff and I will be in Las Vegas celebrating 10 years of business for Admin Books, Inc.  This is our way of thanking our team for all the great efforts made over the last decade to help our clients be financially successful.  And, going to a Cirque du Soleil show was a GREAT way to celebrate!! 
To Your Success, Renee and Team

Is the IRS Knocking at Your Door? 
By: Renee Daggett
There are times when the IRS intimidates taxpayers and they are so fearful, they will pay a notice without verifying the accuracy.  The IRS may not have all the facts, so do not pay anything without checking the details.  However on the flip side, I have seen taxpayers ignore letters and make the situation much worse.  Dealing with the IRS can be stressful.  Owing the tax can be what keeps taxpayers awake at night.  There ARE solutions.  If you do owe the IRS money, here are a few options I would like to share with you. 
Stop_IRS.jpg1. Pay them what you can each month and be consistent!
2. Set up a payment plan with the IRS:  
     a. They charge a one-time fee of $105 if you pay by check in doing so, $52 if you allow them to do a direct debit. 
     b. Interest and penalties still accrue (Interest right now is 3% daily and penalties are .5% on the tax).
     c. If it is less than $50k, you have 6 years to pay it off.
     d. No financial statements or bank statements required to submit for approval.
3. Offer in Compromise:
     a. Pay less than you owe.  Depends on:
          i. Value of current assets (house, rentals, boats, vehicles, retirement accounts)
          ii. Amount of discretionary income
          iii. Ability to pay future income looking at health issues and number of years left to generate income, passive income opportunities. 
     b. Must submit financials, bank statements and proof of expenses for approval
     c. Once the offer is accepted, interest and penalties are no longer accrued
     d. Typically will take from 6-8 months or more to go through the process
     e. There are several options in payment, but usually the agreed amount is paid soon after the offer is approved in either a lump sum or payments
Here are some typical situations that Admin Books can assist with an offer:
Scenario A:
A married couple ages 35 and 38.  The wife gets pregnant and quits working.  They rent and have no assets.  They owed $45,000, but the IRS settled on a lump sum payment of $4,000. 
Scenario B:
An 85 year-old single woman owns a home and a commercial building.  The IRS want to take the commercial building to pay for taxes from the last 25 years that they say totaled $1.5 million.  The taxpayer sold her personal residence, paid the IRS $85,000 and kept the commercial building. 
Scenario C:
A 58 year-old single man cashes out $100,000 of his retirement to purchase a property.  He puts the property in a friend’s name.  There is a falling out with the friend which leads into the man legally not owning the property and owing the IRS taxes for the withdrawal of the funds plus the early distribution taxes. The IRS assessed interest and penalties in addition to the taxes owed, but settled on only paying the $39k of taxes.
Don’t get yourself in a situation where the IRS deducts money from your bank account.  Communication is the key.  Have someone on your side to fight for you.  Call your tax representative for sound advice!

Did You Know?
Question_Man.jpg•The IRS allows business owners to deduct 50% of their entertainment expenses.  However, if audited, they will look at the details of what was deducted and deem anything lavish or extravagant as not deductible. 
•If you have any foreign assets, you are required to inform the IRS.  If you do not, the penalties are very high!
•Do not co-mingle personal and business bank and credit card accounts.  You will eliminate your credibility and any deductions may be denied!

Our Featured Client:
IP Solutions, Inc.
We have some fabulous clients that have amazing businesses. 
As an added value of working with Admin Books, clients are highlighted in our newsletters. 
See their answers to our interview questions below.
IPSI.jpg1. What is your industry? 
Legal: Art Licensing and Patent Contracting.
2. What is unique about what your business offers? 
With regard to the Art Licensing, we are a one-stop shop for artists.  We act as the agent on behalf of the artists at trade shows and in dealing with licensees.  We are also equipped to handle the artist's copyright and trademark needs.
As for the patent contracting services, our veteran patent paralegal is capable of assisting law firms and companies with many issues concerning their patent practice/portfolios.  Since the patent field is so specialized, it is not possible to hire a temp unless they have patent experience.  Our paralegal fills a role that is generally unavailable through regular temp agencies.
IPSI_Ladies.jpg3. Who is your ideal client? 
For art licensing, that would be an artist with work that would appeal to a broad range of manufacturers.  It is also important to have a great rapport and connection with clients.
On the patent side, the projects are generally more interesting at companies rather than law firms.  Working in the patent departments at companies offers more flexibility in the work schedule.  Again, there must be a great connection between our paralegal and the client.
4. What is the best business advice you can pass on? 
Always be straight forward with your clients, even when something goes wrong.  Transparency will help build trust and your services will likely be requested multiple times.  Never B.S. your way through an issue and be direct and honest about failures.
Half Moon Bay, CA
www.ipsilaw.com

Speech_Bubble.jpg"I've learned that
people will forget what you said,
people will forget what you did,
but people will never forget
HOW YOU MADE THEM FEEL."

~Maya Angelou, Poet   

Our Business Corner
Do you have questions on home office rules, auto deductions, charitable donations, etc.?  Here is some information on those HOT
Take advantage of this helpful guide full of important BUSINESS TIPS
Check out the 2013 NEWSLETTER ARCHIVE to see any of our past newsletters.

Looking forward to connecting with you,
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408.782.9640
 
 
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