SOME TAX FACTS

Some tax facts from National Taxpayer Advocate Nina Olson's annual report to Congress:

* Americans spend 6.1 billion hours preparing their taxes every year.

* There have been 4,428 changes to the tax code over the past ten years.

* Nine out of ten Americans have someone prepare their tax return or use tax software.

* The tax code is so long that no one is certain exactly how long it is.

NEW WORKER CLASSIFICATION PROGRAM ANNOUNCED BY IRS

Companies that have had worker classification issues are being offered a settlement program by the IRS. The program, labeled the "Voluntary Worker Classification Settlement Program," will let employers who previously misclassified employees as independent contractors make a minimal payment to settle the tax dispute. The program will give eligible employers substantial relief from federal payroll taxes they may have owed in the past. Employers must pay just over 1% of wages paid to reclassified workers for the past year, and they must agree to treat these workers as employees going forward.

PAM CLEVELAND ATTENDS NATIONAL FORENSIC ACCOUNTING CONFERENCE

Pamela L. Cleveland, CPA, CFFA, Manager of Accounting, Assurance, and Advisory Services at the Certified Public Accounting firm CMJ, LLP, recently attended the National Forensic Accounting Conference in Chicago sponsored by the American Institute of Certified Public Accountants (AICPA).

The conference offered sessions in fraud investigation, identification, reporting and deterrence, and complex analytical techniques. Speakers included leading experts in fraud and litigation services such as judges, attorneys, corporate executives, and forensic specialists.

CMJ, LLP, located in Queensbury, New York, provides tax, accounting, and management consulting services for corporations, partnerships, and professionals throughout the region.  They also provide business valuation services and merger and acquisition consulting to clients both domestically and globally.  More detailed information regarding the firm’s services is available through its web site: http://www.cmjllp.com.

CHECK YOUR INCOME LEVEL AND TAX BREAKS

Check into all the tax credits and deductions for which you might qualify this year. Because some of these tax breaks are reduced or eliminated entirely once your income reaches certain limits, you need to be aware of the income phase-out thresholds for those credits and deductions. While it doesn't make sense to make less income just to qualify for a tax break, shifting income from one year to another may sometimes be a smart thing to do.

GET THE BEST TAX BANG FOR DEDUCTIONS

Review your tax deductions for 2011. If you're close to the cutoff point between itemizing or taking the standard deduction, consider the advantage of bunching your deductible expenses every other year. You can then alternate between itemizing one year and taking the standard deduction the next, saving tax dollars by doing so. For help in your calculations, contact us at (518) 798-3330.

CMJ, LLP, CERTIFIED PUBLIC ACCOUNTANTS, INVITES YOU TO OUR FOOD DRIVE

CMJ, LLP, Certified Public Accountants, invites you to “Fill our Foyer” from Monday, November 14th to Friday, November 18th to support the Warren-Hamilton Counties Community Action Agency.  Their food pantry has had over 9,000 people come through their doors so far this year, plus provided over 4,000 people with emergency food baskets.

With the holidays approaching, their shelves need to be filled.  Canned foods and soups, boxed dinners, instant potatoes, pasta, beans, cereal, crackers and canned fruit are in great demand. Also in need are hygiene products such as shampoo, individually wrapped bars of soap, deodorant, and individually wrapped toilet tissue.

We have a large foyer and we are confident that you will assist in filling it.  Our office is located at 276 Dix Avenue in Queensbury (near Kmart and across the street from the car wash.)  Call us at (518) 798-3330 if you have any questions.  Thank you for your generosity!

GUIDANCE ON EMPLOYEE USE OF CELL PHONES

The Internal Revenue Service has issued guidance designed to clarify the tax treatment of employer-provided cell phones.The guidance, issued as an IRS Notice, relates to a provision in the Small Business Jobs Act of 2010, enacted last fall, that removed cell phones from the definition of listed property, a category under tax law that normally requires additional recordkeeping by taxpayers.