From The Partners Pen….

Donovan Sullivan & Ryan

“More than accountants....business advisors”

 

 

Dear Clients and Friends,

 

We are gearing up to prepare for another tax season (my 32nd).  Planning and training are the keys for a successful tax season for us.

 

Please note the new rules related to charitable contributions for 2007. You must maintain documentation supporting any contribution.  Whereas in the past you may have estimated your church contribution based on a weekly cash contribution, you are now required to have written confirmation from your church.

 

If you are in need of year end tax planning, please contact me ASAP.

 

I wish you and your families peace and happiness during the holidays and throughout the New Year!

 

Sincerely,

 

 

Mike Ryan

 

 

 

 

 

Coming Soon to your Mailbox!

 

All of our individual clients will receive a 2007 tax organizer in the mail within the next month.  This organizer summarizes your 2006 tax information, and it provides space for you to enter your 2007 data. 

 

As you receive your 2007 tax documents, please collect them and keep them with this organizer.

 

Our engagement letter will also be included with the tax organizer.  Please sign this and return it to us along with your organizer and tax information.

 

We will not be offering the online Tax Notebook this year because it is not compatible with our tax software program.  Last year some of you used this online tax organizer rather than filling out the traditional  paper organizer. Everyone will be receiving a paper organizer this year.

New recordkeeping requirements for cash contributions

 

You cannot deduct a cash contribution, regardless of the amount, unless you keep as a record of the contribution a bank record (such as a canceled check, a bank copy of a canceled check, or a bank statement containing the name of the charity, the date, and the amount) or a written communication from the charity. The written communication must include the name of the charity, date of the contribution, and amount of the contribution.

Form 1099 Filing Requirements

The following is a summary of the filing requirements for Forms 1099 which are due on an annual basis and, as always, the IRS continues to impose stiff penalties for non-compliance or incomplete information. To avoid penalties, now is the time to begin gathering this information so that the forms can be filed accurately and on time.

 

If your trade or business makes payments for the following items to any unincorporated business or individual, in the amounts as specified below, a Form 1099 is required:

 

1. Subcontractors or others providing services - $600 or more.

2. Rents and Commissions - $600 or more.

3. Interest or Dividends - $10 or more.

4. Pension/profit-sharing plans - $10 or more.

5. Direct sales of consumer products of at least $5,000.

6. Payments made to all providers of medical and health care services of at least     $600 must be reported regardless of whether the recipient is a professional corporation.

7. All payments to attorneys must be reported regardless of whether the recipient is a professional corporation.

 

Please contact our office if you have any questions about whether or not you need to file 1099’s.  We can prepare them for you in our office.