Plymouth Michigan CPA Accounting and Tax Preparation Firm
CPA Firm Providing Accounting, Bookkeeping, Payroll and Tax Filings for Michigan Businesses and Individuals
Tax Preparation goes hand in hand with Schultz & Associates CPA Michigan. Our staff can help you with your individual income tax preparation needs.
The Affordable Care Act is going to create a very complicated filing season. Our tax preparation staff and CPA’s are ready to address these tax law changes. AMT, college tuition credits, rental real estate, sale of stock, health insurance, retirement distributions, ROTH contribution, and much more.
Schultz & Associates addresses your businesses: tax, accounting and compliance needs.
Whether it’s a mid-sized corporation, small business, or new business, partnership, corporation or S-corporation, our experienced accountants can handle all of your business accounting, payroll, bookkeeping and tax advisory needs. Schultz & Associates, CPA Plymouth Michigan.
Most of our start up clients begin with the LLC. We can help with some of the organization and assist in applying for a EIN number. We will then explain the different ways your LLC can be taxed and help you choose what makes the most sense for your situation. An LLC can choose to be taxed as a Sole Prop, a S Corp, a C Corp and even a partnership if there are multiple members.
Income Tax Preparation Services and Accounting Services for Plymouth, Canton, Northville, Ann Arbor and Livonia Michigan Areas
Schultz & Associates, CPA is one of the top ranked tax accounting firms in Michigan CPA. The Tax accounting firm was established in the City of Plymouth Michigan in Wayne County and on Ann Arbor Trail, with the purpose of providing professional, individual tax filing, and accounting services for Plymouth and the surrounding communities of Canton, Livonia, Northville, Ann Arbor and the rest of metro Detroit. Jeffrey Schultz, CPA is the firm’s managing member. We are located on Ann Arbor Trail. We are a trusted Michigan business adviser.
At Schultz & Associates, CPA our accountants provide traditional and non-traditional services including, filing income tax returns, business, estate and trust tax preparation, and financial statement preparation for small and mid size corporations. We excel in providing professional support that complements and assists clients in achieving their individual and business goals.
Schultz & Associates, CPA is also affiliated with Express Payroll Solutions, Inc. which provides outsourced payroll processing for Michigan small businesses. EPS is also located on Ann Arbor Trail
Or accounting firm have the talent and know-how to support you. Whether you need someone to prepare your taxes, help planning for a complex real estate transaction, IRS representation or provide comprehensive accounting services, we will be here for you.
Key Income Tax Topics
Our accounting firm staff have prepared thousands of income tax returns. Each IRS tax return is unique. Every income tax return has its own complications. Each federal and state of Michigan income tax returns deserve its own specific attention.
- With the advent of the Affordable Care Act there is additional planning that may be necessary. There are new taxes on investments. There is additional Medicare taxes for individuals with certain income levels.
- Dependents can be a complex tax issue. Parents with adult children need to pay special attention to the dependent rule. Parents must have and understanding of whether their child is considered a full time college student for tax purposes. Parents must be aware when their college student reaches age 24 and how that impacts them being a dependent on a tax return. Parents must also look at whether their adult child needs to be living with them to be a dependent. Parents also must know how much income their child has in order for them to be a dependent on their income tax return.
- Rental real estate tax can be complicated. It is a passive activity that generally is not subject to self employment tax. Losses from real estate activities cannot be off set against non-real estate passive income on a tax return. Rental real estate losses are not always deductible for income tax purposes. Material and Active participation must be determined for loss destructibility. Those who are deemed real estate professionals for tax purposes have separate rules for loss destructibility. Income thresholds can also limit the destructibility of a real estate loss for a non- real estate professional.
- All of our client tax returns are e-filed. e-filed returns results in a much quicker tax refund. If a taxpayer chooses to have the funds direct deposited the refund occurs even faster. I have seen refunds it client bank accounts in less than 14 day. Gone are the days of a “refund loan”. “Tax Refund Loans” were popular in the day when refunds could take 4 to 6 weeks. Those days are gone with the increased technology. Do not hesitate to e-file your income tax return.
- Do you have un-reimbursed business expenses? individuals who have business expenses that are not reimbursed by their employer often report this expenses on Form 21o6. Workers who are paid a per-diem often are able to use federal standard rates as well to report their deductions. The deduction is available for meals and travel, but not for lodging. The federal government posts tables for standards rates that can be used. They are updated frequently. They are specific to the city and state you are working in. The federal government also has tables for workers who are out of the country.
IRS Tax Help and Relief
Every year we hear from hundreds of taxpayers with different issues and stories. We hear from taxpayers who have not filed old tax returns. We hear that the returns are filed but they owe taxes. Taxpayers call and tell us they are being harassed by the IRS. We hear from taxpayer’s who have received a CP-2000 and do not know how to move forward. Every year we help hundreds of clients solve their IRS tax problems. We have helped clients settle their IRS problems including:
- We can help filing delinquent tax returns. We will request IRS transcripts and let them know that we are working to resolve the issue.
- We can help with an IRS wage garnishment. We will submit the proper forms and negotiate an installment agreement. We will request a letter that you can submit to your employer. The letter will let your employer know that the garnishment is not necessary any longer.
- Notice of intent to levy can be difficult. A quick reaction is necessary. With the proper paperwork the IRS will stop the levy.
- IRS Offer in Comprises can be difficult. They do not work most of the time. If you have an income then they would prefer to see you in an installment agreement.
- Most IRS installment agreements run for five years, although there are some 7 year options. These type of agreements help to remove liens, levies and garnishments. They pay the debt in full plus the penalty and interest. They act like a bank loan would act.
- The IRS does have a partial pay installment agreement option. The IRS partial pay agreement runs ten years. Whatever the ending balance at the end of ten years is eligible to have removed. Taxes that are older than ten years hare beyond the IRS statute of limitations. You still have to request the removal of taxes that are beyond the statute of limitations.
- We have seen taxpayers who have had the IRS get an SRF or Substitute For Return. This is where the IRS will take the information that they received and calculate a return for you. They will do this if you do not file a return. It is still necessary to file a return it the IRS does a Substitute For Return. The SFR is often incorrect. The SRF is does not have all of your information. Most importantly they do not have your deductible expenses or the cost basis of any stock sales.
- The IRS also have the option of being listed as “currently uncollectible” . The IRS requires taxpayers to submit financial information proving they do not have the where with all to make payment on their tax debt. Usually yo must submit Form 433 in order to qualify.
- The IRS does have a “Fresh Start” program. Alan Thick is correct but the price tag for this representation should not cost a third of the tax owed. It is best to work with a local firm that you can sit face to face with. Additionally is you have been assigned a local Revenue Agent there is a high probability that there is a local professional that has worked directly with that agent on a similar matter in the past.
- If your returns has been filed and your tax liability is under $25,000 setting up an installment agreement is not a tedious process for a professional familiar with working on IRS matters. Often agreements of this dollar amount require little to no paper work. Usually a five year installment agreement can be established quite quickly.
Key Health Insurance Tax Credit
As part of the provisions of the Affordable Care Act some taxpayers will become eligible for a health insurance tax credit or more specifically the Premium Tax Credit when filing their 2014 individual income tax return. This is a refundable tax credit that is intended to offset some of the cost of health insurance for certain taxpayers. The tax credit is intended to may health insurance more affordable.
Three Rules to Quality for Health Coverage Tax Credit
The credit is available for those individuals who meet certain criteria. First, the taxpayer must have purchased their insurance through the Health Insurance Marketplace. Taxpayers must have purchased their policy prior to March 31, 2014 in order to be eligible for the credit on their 2014 income tax return. Secondly a taxpayer with a household of four must have income for 2014 between $23,550 and $94,200. Finally, the taxpayer cannot be eligible for medicare, medicaid, or an employer sponsored plan.
How do I Receive the Credit
The credit can be received in two ways. First the taxpayer can choose to have the credit applied directly to their premiums. The taxpayer also apply for the credit when filing their 2014 individual income tax return.
Key Bookkeeping and Payroll Topics
Our CPA’s and accountants work with the general ledger, balance sheet, income statement and trial balances on a daily basis. Each set of books is different. Each client deserves an accountant that not only knows debits and credits but a accountant who understands the client’s industry.
- QuickBooks by Intuit is by far the most popular accounting and bookkeeping software for small business owners. Owners who actually do their own bookkeeping are really the best fit for QuickBooks. QuickBooks is easy to learn. Business owners with minimal accounting background can usually pick up on QuickBooks within a hour or two.
- Payroll processing with QuickBooks is available. However, it can be difficult to use without proper instruction. It is not the software that complicates it. Payroll in itself is complex. Using the proper withholding’s, knowing when to pay the tax withholding’s, and preparing quarterly 941 and annual Form w-2’s can be complicated. Often businesses who decide to process their own payroll will also retain an accountant or bookkeeper to complete the quarterly filings. Most small businesses find that the best option is to outsource their payroll altogether. Small business owners often feel that the price of hiring a payroll company is worth the cost.
- Reconciling your check book can be a nightmare. With today’s banking technology, bank statements have gotten even more complex than in past decades. Electronic debits, debit cards, and credit card processing, can make figuring out your bank balance difficult. More often we see clients that do not even keep their own register anymore and strictly rely on the online banking site. This is not a good habit. Because of these complexities, individuals should consider using Quicken. Business owner a should choose some sort of electric bookkeeping software.
- Payroll report due dates are as follows: Form 941 is due April 30th, July 31, October 31, and January 31. Form 940 (FUTA) is due January 31. Form W-2 must be distributed to employees by January 31. W-3 must be submitted to the IRS by February 28.
- Tax deposits for businesses are made using the EFTPS system. Businesses with employees are required to make certain timely tax deposits. Employers who’s liabilities over a 12 months period are less then $50,000 must remit their taxes on a monthly basis. They generally have 15 days after the end of the month to make the deposit. Employers with annual liabilities in excess of $50,000 must remit taxes on a semi-weekly basis.
Key Business Start Up Topics
- Business plans are key to a start up companies success. A entrepreneur must understand the true costs of doing business. Most business plan software should run under $100. Additionally if you are considering bank financing then a business plan will be necessary. Some banks require a two year projection of the proposed business. Many banks will want to see a five year projection.
- When starting up you will need to choose the state in which you want to organize your business. While Delaware is popular, most businesses choose to organize in the state which they plan to operate their business from. That being said, most Michigan businesses are organized in Michigan
- Selecting the type of entity is often a confusing exercise for new business owners. Business owners can choose a C Corporation, S Corporation, Limited Liability Company, partnership, limited partnership, Professional Limited Liability Company, sole proprietorship or joint venture. An CPA or attorney can help with this decision.
- Limited Liability Companies are very flexible for tax purposes. LLC’s also require much less documenting then a corporation. In most states a LLC needs to have an operating agreement. The State of Michigan does not require an operating agreement for a single owner LLC. For tax purposes LLC’s can choose how they want to be taxed. It is best to consult a CPA prior to this decision.
- New business owners typically will need to apply for a federal ID number. The IRS has an online system. A FIN can also be attained by filing Form SS-4. Most business start up’s choose to retain an accountant, CPA or an attorney for this request.
Facts About our Firm
Schultz & Associates, CPA is one of Michigan’s top rated tax accounting firms. The firm was formed by Jeffrey Schultz, CPA in Plymouth Michigan which is located in Wayne County. the Firm was organized in 2003.
- The Firm has been located at 496 W. Ann Arbor Trail since May of 2004.
- The Firm has now been located in four different suites inside the same building. Each internal move was the result of growth and the need for more space.
- The CPA Firm has serviced, individuals, businesses, non-profits, trusts and estates.
Schultz and Associates, CPA, Certified Public Accountants is located in Plymouth which is adjacent to Canton, Northville, Livonia, and Westland. It is in the County of Wayne. We are located on Ann Arbor Trail, Plymouth Michigan
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Tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used for the purpose of (i) avoiding tax related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.