Receive a Faster Refund with Direct Deposit

Posted by Bruce Mc on Feb 8, 2011 in e file, Information | 0 comments

. . . it’s tax time!

This year, do you want your refund faster? Have it deposited directly into your bank account. More taxpayers are choosing direct deposit as the way to receive their federal tax refunds. More than 61 million people had their tax refunds deposited directly into their bank accounts last year. It’s the secure and convenient way to get money in your wallet faster.

• Security. The payment is secure – there is no check to get lost. Each year thousands of refund checks are returned by the US Post Office to the IRS as undeliverable mail. Direct deposit eliminates undeliverable mail and is also the best way to guard against having a tax refund stolen.
• Convenience. There’s no special trip to the bank to deposit a check!

You can also electronically direct your refund to multiple accounts. With the new “split refund” option, taxpayers can divide their refunds among as many as three checking or savings accounts and three different U.S. financial institutions. The split refund option, using Form 8888, is also available for paper returns.

Caution: Some financial institutions do not allow a joint refund to be deposited into an individual account. Check with your bank or other financial institution to make sure your direct deposit will be accepted. Also, make sure you have the correct nine-digit routing number and your account number when selecting direct deposit.

Don’t have a checking account? L & R Tax Preparation ( or your tax Professional) can Still give you the speed and Security of Direct Deposit.

To request direct deposit, ask us at L & R Tax Preparation for information..

Choosing a Payroll Provider —

Posted by Bruce Mc on Jun 25, 2010 in Choosing a preparer, Opinions, Payroll service, Preparer | 1 comment

There comes a time in every small business owner’s life when they start thinking about moving payroll from their living room computer into the hands of a hired professional.

View L & R Tax Preparation Payroll Video

Shopping for a payroll professional, as well as anything else, requires a little research.

Having just moved my company largely online with on line everything (including payroll) I thought I should put some information out for everyone. So, here are some key questions everyone should ask themselves before choosing a payroll provider.

Before you commit to a payroll provider, ask these questions.

1. What type of payroll provider service will address my needs best?

With traditional payroll services, you phone in, e-mail or fax your payroll information every pay period. These methods require you to establish a set time every pay period for you to submit your payroll. Traditional services also calculate taxes and other deductions and offer various payment methods for employees.

Online payroll has been available for nearly a decade. This service usually allows you to enter payroll hours from one Web site and will make all payroll tax calculations and deductions. Paycheck stubs and W-2s are available for employers and employees on a secure Web site, and direct deposit is usually included. Some, can and will file and pay payroll taxes on your behalf. (L & R Tax preparation now offers this service)

Payroll software, like online payroll, allows you to enter payroll information at your convenience and will perform necessary calculations. However, you are responsible for debiting your bank account, printing checks or arranging for direct deposit and handling IRS penalties and notices.

2. What are the biggest concerns about outsourcing payroll?

Most people agree that payroll would be an easy if it weren’t for payroll taxes, withholdings and other calculations such as 401k, or accrued leave time. If you don’t want to stay on top of strict IRS rules and regulations, choose a payroll service that will do the work for you.

Additionally, if you’re considering software or a phone/email/fax solution to process payroll, make sure they offer direct deposit. You’ll save your employees time, and you won’t have to be in on payday to hand out checks.

Although you probably won’t think of it immediately, online access for pay stubs and payroll records can save hours of tedious work. If an employee has ever asked you to provide the last six months worth of pay stubs for mortgage purposes, you know the advantages of offering employees self-service payroll accounts.

3. What if something goes wrong?

If it’s important for you to be able to speak with someone on the phone when you have a question about payroll, ask if they offer live, U.S.-based customer support. And if you’re one to work on Saturdays, you’ll want to make sure someone will be available to assist you then.

Phone support can be a lifesaver if you receive IRS penalties and notices. It’s not uncommon for businesses to receive these penalties or notices in error. If you don’t want to be on the phone directly with the IRS resolving the issue, make sure your payroll service has tax experts who will work with the IRS on your behalf.

Fitting in time for a call about a small payroll question is not on most small business owners’ lists of top priorities. Make sure your payroll service offers a comprehensive, easy-to-use online help database.

4. How does outsourcing my payroll help me stay in compliance?

Many services calculate payroll and provide direct deposits but don’t handle payroll tax deposits or filings. They may say they assist with those tasks, but if you want the most inconvenient and riskiest part of payroll off your plate, make sure your provider will deposit and file federal, state and local payroll taxes on your behalf.

If payroll taxes are the riskiest part of payroll, new hire reporting is the second. In a recent poll, 95 percent of business owners were not aware that federal and state law mandates that all new hires be reported to the state in an appropriate amount of time. To alleviate worries about compliance, select a payroll provider that reports new hires automatically.

Some payroll services offer more than payroll compliance. For example, your business must post the appropriate labor law posters. If you don’t want to worry about costly fines, ask a potential provider about labor law posters and poster updates.

5. Is it worth it?

Regardless of the method you choose — phoning-in, e-mailing, faxing, or entering payroll online or into software —outsourcing payroll is always faster and more reliable than doing it by hand. Homemade spreadsheets are useful, but a transposed number or erroneous formula can translate into a payroll nightmare as you try to rectify an employee’s pay and amend taxes.

If there’s one thing you can always count on changing, it’s tax laws. And they don’t always change at the beginning of the year. Outsourced payroll, even payroll software, spares you the burden of keeping up-to-date with ever-changing tax tables.

Some closing thoughts.

Outsourced payroll is the same as other outsourced services: You can’t put a price on more time to grow your business and service for your clients. That’s not to say the most expensive payroll service will provide you with the most free time. For example, traditional payroll services are usually the most expensive, yet they require you to set aside time during normal business hours to fax or phone in payroll. Likewise, the cheapest provider may save you money but will likely leave you scratching your head trying to decode payroll tax and compliance laws.

Look for the provider that meets your specific needs. Don’t pay for a service that charges for extras you won’t use. Likewise, don’t try to save money by selecting a service that meets just most of your needs. You want a service that handles all your needs. When you find the right payroll service, the benefits will justify the cost

Where I have been. . .

Posted by Bruce Mc on Jun 20, 2010 in Information | 0 comments

            Well let’s not let the title miss lead to much. I haven’t really been gone, but I have been very out of touch for a while so let’s find out what I have been doing. . . 

            Over the course of this past year, I have expanded my firm. Not so much in a construction manner but an expanse of my services. For a full listing, you can go to my website and explore the Services page. 

            The biggest part or upgrade would be the addition of on-line services. We now have available to our clients an online payroll service, on line accounting service, online employee services, and direct deposit capabilities. 

             It seems we have focused our online amenities towards the business folks. Well, that’s just where we started. We aren’t done yet. Still to come (timeline is looking at 2011), are going to have online access for all of our clients’ needs. From basic financial planning, to tax questionnaires (that will go out from here to clients, and back again) along with access to past returns for up to ten years. But that is latter. 

            We currently have over 50 on line calculators to assist you. You’ll find these calculators on our calculator’s web page. Under the following headings – Taxes & Payroll, Business Planning, Personal Finance, College Saving, Retirement, Estate Planning, Home Mortgage, Car Loan, and Loans. 

          Our changes in part are contributed to our upgrade to a better provider company. We have purchased many of our products from Thomson Reuters, the leading software provider worldwide for accounting professionals. This has opened the door to many services we can now offer our growing client base. We will continue to use our software from our pervious providers as well.

          The above notwithstanding, through the #1 software provider for the general public we have been able to offer our clients a choice between the two. By doing this, we are able to accommodate all your needs. 

          Last, but not least. We have a new web site. One of the top things we have done to better serve our clients. Through this site you will have a great many options to help you find the information you need. Not just the calculators that I mentioned above, but you also can find answers to common QuickBooks issues, buy intuit software, incorporate, get tax information at our Tax Center page where you can find more calculators, find forms (Federal and any State), find due dates and much more. You’ll also be able to sign up for our monthly newsletter, have access to financial guides, find links to buy books we recommend, almost everything you might need including my appointment calendar where you can request an appointment and see when we are available. 

           We are very happy with the new site and we hope you will be too. It will offer our clients and others information to access to information that isn’t always that easy to find. I have added links to our web site at the top right of this blog so they will always be there. Go to our home page to start looking for what you need. L & R Tax Preparation.

           As I work my way back through everything I will try and get back to my regular Sunday post where I recap the best post from other tax bloggers along with my favorite PF bloggers.

No word yet from Alltop. I’ll keep everyone up to date as things progress.

IRS TAX TIP 2010-19

Posted by Bruce Mc on Feb 10, 2010 in e file, Information, Tax Preparation | 0 comments

Get Your Refund Faster – Choose Direct Deposit 

If you want to get your refund as quickly as possible, just tell the IRS to deposit your refund directly into your bank account. By choosing Direct Deposit, you can get your refund much sooner than if you chose to have a paper check mailed to you.

Here are the main reasons 73 million taxpayers chose Direct Deposit in 2009:

1. Security Thousands of paper checks are returned to the IRS by the U.S. Post Office every year as undeliverable mail. Direct Deposit eliminates the possibility you won’t receive your check and prevents your refund from being stolen.
2. Convenience The money goes directly into your bank account. You won’t have to make a special trip to the bank to deposit the money yourself.
3. Ease When you’re preparing your return, simply follow the instructions on your return. Make sure you enter the correct bank account and bank routing numbers on your tax form and you’ll receive your refund quicker than ever.
4. Options You can also deposit your refund into multiple accounts. With the split refund option, taxpayers can divide their refunds among as many as three checking or savings accounts and up to three different U.S. financial institutions. Use IRS Form 8888, Direct Deposit of Refund to More Than One Account, to divide your refund among different accounts. A word of caution: some financial institutions do not allow a joint refund to be deposited into an individual account. Check with your bank or other financial institution to make sure your Direct Deposit will be accepted.

For more information about direct deposit of your tax refund and the split refund option, check the instructions for your tax form. Helpful tips are also available in IRS Publication 17, Your Federal Income Tax. To get a copy of Publication 17 or Form 8888, visit the Forms and Publications section of IRS.gov, or call 800-TAX-FORM (800-829-3676).

Links:

• E-file
•  Publication 17, Your Federal Income Tax (PDF 2,085K)

IRS TAX TIP 2010-19

An IRS reminder.

Posted by Bruce Mc on Nov 6, 2009 in e file, Information, Tax Preparation, Things forgotten | 0 comments

            The IRS (as stated below) says they had 107,831 refund checks returned to them because of incorrect addresses. {Is yours one of them?} This resulting in over 123 mil. Due to taxpayers who over paid. [okay 123.5 million divided by 107,831, equals and average refund amount per check of $1,1453.31]  Are you one of them? If you had e-filed and used direct deposit, you’d already have your refund. The other thing I ask, of those, I wonder how many if not wonder if all of these are self prepared returns?

Please read the below IRS notice…

IRS Seeks to return $123.5 Million in Undeliverable Refunds to Taxpayers
IRS Reminds Taxpayers to Use E-file and Direct Deposit

WASHINGTON — The Internal Revenue Service is looking for taxpayers who are due to receive a combined $123.5 million in the form of 107,831 refund checks that were returned to the IRS by the U.S. Postal Service due to mailing address errors.

“We are eager to get this money into the hands of taxpayers, so don’t delay if you think you are missing a refund,” said IRS Commissioner Doug Shulman. “The sooner you update your address information, the quicker you can get your refund.”

All a taxpayer has to do is update his or her address once. The IRS will then send out all checks due. Undeliverable refund checks average $1,148 this year, compared to $990 last year. Some taxpayers are due more than one check.

Average undeliverable refunds rose by 16 percent this year, which is in line with the 16 percent rise in average refunds for all tax returns in the latest filing season. Several changes in tax law likely played a role in boosting refunds, including the First-Time Homebuyer’s Credit and the Recovery Rebate Credit, among others.

The vast majority of checks mailed out by the IRS each year reach their rightful owner. Only a very small percent are returned by the U.S. Postal Service as undeliverable.

If a refund check is returned to the IRS as undeliverable, taxpayers can generally update their addresses with the “Where’s My Refund?” tool on IRS.gov. The tool enables taxpayers to check the status of their refunds. A taxpayer must submit his or her social security number, filing status and amount of refund shown on their 2008 return. The tool will provide the status of their refund and in some cases provide instructions on how to resolve delivery problems.

Taxpayers checking on a refund over the phone will be given instructions on how to update their addresses. Taxpayers can access a telephone version of “Where’s My Refund?” by calling 1-800-829-1954.

The IRS encourages taxpayers to choose direct deposit when they file their returns because it puts an end to lost, stolen or undeliverable checks. Taxpayers can receive refunds directly into personal checking or savings accounts. Direct deposit is available for filers of both paper and electronic returns.

The IRS also encourages taxpayers to file their tax returns electronically because e-file eliminates the risk of lost paper returns. E-file also reduces errors on tax returns and speeds up refunds.

Listen to an Audio File for Podcast
Watch Video: Undelivered Refunds
Watch Video: Track Your Refund