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					 January ‘11 Issue




     THE                  Wisconsin
2011
Seminars
May 13
Technology
                          Accountant
                          Wisconsin Association of Accountants   1-800-237-4080 - 715-425-0482 - www.wiassociationofaccountants.com
by Bob Jennings
Green Bay
Radisson Hotel
(800) 333-3333             IRS Kicks Off 2011 Tax Season
June 23 - 24
Summer Seminar
                           with Deadline Extended to April 18;
Estates & Trusts
by Bob Jennings            Taxpayers Impacted by Recent Tax
Madison
Sheraton Hotel
(608) 251-2300
                           Breaks Can File Starting in Mid- to
September 18 - 20          Late February
                           Submitted by IRS
WAA Annual Convention
Waukesha
Marriott Milwaukee West    WASHINGTON — The Internal Revenue Service today opened the 2011 tax filing season by announcing
(877) 651-7666
                           thattaxpayers have until April 18 to file their tax returns. The IRS reminded taxpayers impacted by
October 3 - 4              recent tax law changes that using e-file is the best way to ensure accurate tax returns and get faster
Bob Jennings               refunds.
Business Entities
Wisconsin Dells            Taxpayers will have until Monday, April 18 to file their 2010 tax returns and pay any tax due because
Kalahari Resort
                           Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15.
(877) 254-5466
                           By law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do;
October 24 - 25            therefore, all taxpayers will have three extra days to file this year. Taxpayers requesting an extension will
Federal Tax Update         have until Oct. 17 to file their 2010 tax returns.
Wausau
Stoney Creek Inn
                           The IRS expects to receive more than 140 million individual tax returns this year, with most of those
(715) 355-6858
                           being filed by the April 18 deadline.
November 7 - 8
Gear Up 1040               The IRS also cautioned taxpayers with foreign accounts to properly report income from these accounts
Waukesha                   and file the appropriate forms on time to avoid stiff penalties. “The IRS has made important strides at
Country Springs Hotel
                           stopping tax avoidance using offshore accounts,” said IRS Commissioner Doug Shulman. “We continue
(800) 247-6640
                           to focus on offshore tax compliance and people with offshore accounts need to pay taxes on income
November 28 - 29           from those accounts.”
Bob Jennings
1040 Update                The IRS also reminded tax professionals preparing returns for a fee that this is the first year that
Wisconsin Dells
                           they must have a Preparer Tax Identification Number (PTIN). Tax return preparers should register
Kalahari Resort
(877) 254-5466             immediately using the new PTIN signup system available through www.IRS.gov/taxpros.

December 5 - 6
Gear Up 1040
Hudson
Hudson House Inn
                                                                                                                   Continued on page 3
(715) 386-2394
   THE WISCONSIN ACCOUNTANT                                                                                                                          pAGE 2


                            OFFICERS
                            President:
                                                                  Executive Corner . . .
. . . . . WAA Officers . . . . .
                            Thomas M Adler, CPA, ATA, ATP
                            1110 Fourier Dr Ste 110
                            Madison, WI 53717                                           As I look out my window and the snow is falling and blowing off
                            (608)664-1944                                               my office roof, I know we are in for a typical winter in Wisconsin .
                            tadler@adlercpa.com
                                                                                        Your WAA board has planned a schedule of seminars for 2011
                            Vice Presidents:                                            in beautiful hotels spread through out the state. There will be
                            Glen Johnson, EA, ABA, ATA                                  something for everyone covering topics varied from Bob Jennings
                            3707 Hamilton Av
                            Altoona, WI 54720                                           - Technology to Estate and Trusts to many differing approaches
                            (715)832-5779                            Byron Dopkins,     to income tax in the fall, business and personal taught by
                            jgr@ameritech.net                       Executive Director professional speakers who also do taxes on a regular basis. Our
                            Jolynn McIntosh, CPA                                       convention in September at the Mariott Milwaukee West will
                            1124 17th Av                          feature many speakers on many topics. Our calendar of events will be out soon. The
                            Monroe, WI 53566                      specific dates and locations are available on our website.
                            (608)328-8341
                            jtmcintosh@tds.net
                                                                  Remember in the busy time – get adequate rest and eat healthy food – we will see
                            Secretary:                            you in the spring!
                            De Anne Chappell, EA, ABA, ATP, ATA
                            PO Box 68
                            Boscobel, WI 53805                    Byron L Dopkins, EA, ABA
                            (608)375-2727
                            aai@mwt.net
                                                                  WAA Executive Director

                            Treasurer:
                            James Badertscher, EA, ABA
                            112 West 5th St
                            Marshfield, WI 54449

                                                                  From the president . . .
                            (715)387-1782
                            dataflow-jlb@tznet.com

                            NSA State Director:
                            Jim Weickgenant, EA, ATA
                            612 S Blvd                                                  People say accountants are boring!! How could that be with us
                            Baraboo, WI 53913                                           being busy getting W-2’s, 1099’s, and payroll tax reports done
                            (608)356-9494                                               by the end of the month.
                            jim@JDWTax.com

                            Past President:                                             I do not know why some clients do not understand deadlines or
                            William E Suttner, CPA                                      due dates. They must reduce stress by being late or believing
                            PO Box 187
                            Chilton, WI 53014                                           someone has to be last.
                                                                      Thomas Adler,
                            (920)849-9346                               president
                            wes@suttnercpa.com                                        I hope the notes Bill Suttner had you make last year and the
                            Directors:                            WAA training will make for a better tax season. Keep notes for this year to improve
                            Mary Jo Boldt, EA                     next year also.
                            820 Philip Dr, Ste A
                            Waukesha, WI 53186
                            (262)549-1700                         I hope you don’t forget the WAA and chapter benefits. Please make a list of your ideas
                            maryjo@tomhoye.com                    to improve your association and send to me.
                            Mark Burbey, CPA
                            900 S 10th St                         I hope you all have a great tax season.
                            Manitowoc, WI 54220
                            (920)682-6661
                            mburbey@burbeycpa.com

                            John M Arndt, CPA                     Thomas M. Adler, CPA, ATA, ATP
                            15050 W North Av                      WAA President
                            Brookfield, WI 53005
                            (414)444-4340
                            arndt.consulting.john@gmail.com

                            Mark Nelson, Sr
                            2581 S Kinnickinnic Av
                            Milwaukee, WI 53207
                            (414)481-6812
                            mark@ntatax.com

        WAA OFFICE
        Byron Dopkins, WAA Executive Director
        PO Box 356, River Falls, WI, 54022
        715-425-0482 • 1-800-237-4080
THE WISCONSIN ACCOUNTANT                                                                                                       pAGE 3



                                              IRS Kicks Off 2011 Tax Season
 WAA Benefits                                 with Deadline Extended to April 18;
    Seminars and Educational Forums           Taxpayers Impacted by Recent Tax
    Accreditation                             Breaks Can File Starting in Mid- to
    Local Chapter Involvement
                                              Late February Continued
    Government Agency Liaison                 Continued from page 1


    Monitor Legislation                       Who Must Wait to File
                                              For most taxpayers, the 2011 tax filing season starts on schedule. However, tax
    Insurance Programs                        law changes enacted by Congress and signed by President Obama in December
                                              mean some people need to wait until mid- to late February to file their tax returns
    Accountants Protection Plan
                                              in order to give the IRS time to reprogram its processing systems. Some taxpayers –
                                              including those who itemize deductions on Form 1040 Schedule A – will need to wait
                                              to file. This includes taxpayers impacted by any of three tax provisions that expired
                                              at the end of 2009 and were renewed by the Tax Relief, Unemployment Insurance
                                              Reauthorization, and Job Creation Act Of 2010 enacted Dec. 17. Those who need to
                                              wait to file include:
 WAA Objectives                               •   Taxpayers Claiming Itemized Deductions on Schedule A. Itemized deductions
    To raise professional standards and           include mortgage interest, charitable deductions, medical and dental expenses
                                                  as well as state and local taxes (add link to Schedule A). In addition, itemized
    improve the practice of accountancy.
                                                  deductions include the state and local general sales tax deduction that was
                                                  also extended and which primarily benefits people living in areas without state
    To strive for excellence in the               and local income taxes. Because of late Congressional action to enact tax law
    profession.                                   changes, anyone who itemizes and files a Schedule A will need to wait to file until
                                                  mid- to late February.
    To encourage accountants in a
    continuing program of                     •   Taxpayers Claiming the Higher Education Tuition and Fees Deduction. This
    professional development.                     deduction for parents and students – covering up to $4,000 of tuition and fees
                                                  paid to a post-secondary institution – is claimed on Form 8917. However, the IRS
                                                  emphasized that there will be no delays for millions of parents and students who
    To foster increased recognition
                                                  claim other education credits, including the American Opportunity Tax Credit
    for the professional in the public,           extended last month and the Lifetime Learning Credit.
    private and educational sectors of
    our state.                                •   Taxpayers Claiming the Educator Expense Deduction. This deduction is for
                                                  kindergarten through grade 12 educators with out-of-pocket classroom expenses
    To initiate legislative action and pro-       of up to $250. The educator expense deduction is claimed on Form 1040 Line
    vide government liaison between the           23 and Form 1040A Line 16.
    accounting profession and
                                              In addition to extending those tax deductions for 2010, the Tax Relief, Unemployment
    government leaders.
                                              Insurance Reauthorization, and Job Creation Act also extended those deductions for
                                              2011 and a number of other tax deductions and credits for 2011 and 2012 such
    To provide meetings and fellowship        as the American Opportunity Tax Credit and the modified Child Tax Credit, which
    for accountants.                          help families pay for college and other child-related expenses. The Act also provides
                                              various job creation and investment incentives including 100 percent expensing and
    To promote the highest standard of        a two-percent payroll tax reduction for 2011. Those changes have no effect on the
    ethical conduct among its member.         2011 filing season.

                                              The IRS will announce a specific date in the near future when it can start processing
                                              tax returns impacted by the recent tax law changes. In the interim, taxpayers affected
                                              by thesetax law changes can start working on their tax returns, but they should not
                                              submit their returns until IRS systems are ready to process the new tax law changes.
                                              Additional information will be available at www.IRS.gov.

                                                                                                                   Continued on page 4
THE WISCONSIN ACCOUNTANT                                                                                                            pAGE 4



Form 990 Filing                                  IRS Kicks Off 2011 Tax Season
Requirement                                      with Deadline Extended to April 18;
Increases to                                     Taxpayers Impacted by Recent Tax
$50,000                                          Breaks Can File Starting in Mid- to
Submitted by Ashwaubenon Tax Professionals
                                                 Late February Continued
IRS has released Revenue Procedure 2011-15       Continued from page 3

which reminds taxpayers of the change in the
                                                 For taxpayers who must wait before filing, the delay affects both paper filers and
filing requirement for exempt organizations.
                                                 electronic filers. The IRS urges taxpayers to use e-file instead of paper tax forms to
                                                 minimize confusion over the recent tax law changes and ensure accurate tax returns.
In prior years the filing requirement for Form
                                                 Except for those facing a delay, the IRS will begin accepting e-file and Free File returns
990 for an organization exempt from federal
                                                 on Jan. 14. Additional details about e-file and Free File will be announced later this
income tax has been $25,000 of annual gross      month.
receipts. As IRS has outlined in recent years,
this amount increases to $50,000 effective       Many Ways to Get Assistance
for tax years beginning on or after January 1,   The IRS is also continuing to focus on taxpayer service. Taxpayers with questions
2010.                                            should check the IRS website at www.IRS.gov, call our toll-free number or visit a
                                                 taxpayer assistance center.
A copy of this Revenue Procedure can be
found on IRSs web site www.irs.gov or by going   This is also the first filing season that tax packages will not be mailed to individuals
to www.irs.gov/pub/, clicking on irs-drop, and   or businesses. There are still many options for taxpayers to get paper forms and
then on rp-11-15. We can also send you a pdf     instructions if they need them. In recent years, fewer and fewer taxpayers received
copy attached to an email, upon request.         these mailings. Last year, only 8 percent of individuals who filed tax returns received
                                                 tax packages in the mail. Taxpayers can still get any forms and instructions they need
                                                 online at www.IRS.gov, or they can visit local IRS offices or participating libraries and
                                                 post offices.

                                                 In addition, individuals making $49,000 or less can use the Volunteer Income Tax
                                                 Assistance program for free tax preparation and, in many cases, free electronic filing.
                                                 Individuals age 60 and older can take advantage of free tax counseling and basic
                                                 income tax preparation through Tax Counseling for the Elderly.

                                                 IRS Free File provides options for free brand-name tax software or online fillable
                                                 forms plus free electronic filing. Everyone can use Free File to prepare a federal tax
                                                 return. Taxpayers who make $58,000 or less can choose from approximately 20
                                                 commercial software providers. There’s no income limit for Free File Fillable Forms,
                                                 the electronic version of IRS paper forms, which also includes free e-filing.

                                                 Check for a Refund
                                                 Once taxpayers file their federal return, they can track the status of their refunds
                                                 by using the “Where’s My Refund?” tool, located on the front page of www.IRS.gov.
                                                 Taxpayers can generally get information about their refunds 72 hours after the IRS
                                                 acknowledges receipt of their e-filed returns, or three to four weeks after mailing a
                                                 paper return.

                                                 Taxpayers need to provide the following information from their tax returns: (1) Social
                                                 Security Number or Individual Taxpayer Identification Number, (2) filing status, and
                                                 (3) the exact whole dollar amount of your anticipated refund. If the U.S. Postal Service
                                                 returns the taxpayer’s refund to the IRS, the individual may be able to use “Where’s
                                                 My Refund?” to change the address the IRS has on file, online.

                                                 Also, taxpayers may complete a Form 8822, Change of Address, and send it to the
                                                 address shown on the form. They may download Form 8822 from www.IRS.gov or
                                                 order it by calling 800-TAX-FORM. Generally, taxpayers can file an online claim for
                                                 a replacement check if more than 28 days have passed since the IRS mailed their
                                                 refund.
THE WISCONSIN ACCOUNTANT                                                                                                      pAGE 5




                                                Deduction for One-Half of Self-
     This newsletter was                        Employment Tax
                                                Submitted by Wisconsin Department of Revenue
     designed for the
     WAA by:                                    The federal Small Business Jobs Act of 2010 (Public Law 111-240, enacted
                                                September 27, 2010) provides that the deduction for health insurance costs of
                                                self-employed persons is taken into account when calculating the net earnings for
                                                purposes of determining the self-employment tax. This provision applies for taxable
                                                years beginning after December 31, 2009.

                                                As of this date (December 13, 2010), Wisconsin has not adopted the provisions of
                                                the Small Business Jobs Act.

   HUB 70
    Design & Print
                                                Federal Tax Treatment

                                                The deduction for health insurance costs of self-employed persons reduces net
                                                income when determining self-employment tax. This reduces the amount of self-
    From design to print...
                                                employment tax. This reduced amount of self-employment tax is then used to
    turning your creative vision into reality
                                                determine the deduction for one-half of self-employment tax.

                                                Example: The taxpayer has $50,000 of net profit from Schedule C and claims a
                                                $4,000 self-employed health insurance deduction on line 29 of 2010 Form 1040. The
                                                self-employment tax is $6,500 based on net earnings of $46,000 after subtracting
                                                the $4,000. The deduction for one-half of self-employment tax is $3,250. (Amounts
                                                are rounded.)

                       Brochures                Wisconsin Tax Treatment

                         Newsletters            Because Wisconsin has not adopted the provisions of the Small Business Jobs Act
                                                of 2010, the deduction for self-employed health insurance is not considered when

           Direct mail                          determining the self-employment tax. This results in an increased deduction for one-
                                                half of self-employment tax for Wisconsin. The taxpayer must file Wisconsin Schedule
                                                I, Adjustments to Convert 2010 Federal Adjusted Gross Income and Itemized
         Business cards                         Deductions to the Amounts Allowable for Wisconsin, to adjust for the difference in
                                                the federal and Wisconsin deduction for one-half of self-employment tax.

                Postcards                       Example: The facts are the same as in the federal example above. However, the
                                                deduction for self-employed health insurance is not considered when determining
                            Letterhead          the self-employment tax. The taxpayer should recompute Schedule SE for Wisconsin
                                                without subtracting the amount of the self-employed health insurance deduction.
                       & MORE                   For Wisconsin purposes, the self-employment tax is $7,065 based on earnings of
                                                $50,000. The Wisconsin deduction for one-half of self-employment tax is $3,533.
                                                (Amounts are rounded.) The taxpayer must file Wisconsin Schedule I to adjust for
                                                the difference between the federal and Wisconsin deduction for one-half of self-
                                                employment tax ($283).


    214 N Main St.
    River Falls, WI 54022
    Tel 715.426.1750

    nancy@hub70.com
    www.hub70.com

				
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