Important Dates
Individual Tax Returns
Individual Data Organizers Due to Jorstad, Inc. - Monday, March 12, 2012
Individual Tax Returns Due – Tuesday, April 17, 2012
Individual Extension Requests Due - All Available Tax Data Due - Monday, March 28, 2012
Extended Due Date - Monday, October 15, 2012
Partnerships, LLC, Estate and Trust Tax Returns
Financial Data Due to Jorstad, Inc. - Monday, March 12, 2012
Extension Requests, All Available Tax Data Due - Monday, March 19, 2012
Federal and State Tax Returns Due Date - Tuesday, April 17, 2012
Extended Due Date - Thursday, September 17, 2012
S Corporations & C Corporations
Financial Data Due to Jorstad, Inc. - Monday, February 13, 2012
Extension Requests - All Available Tax Data Due - Monday, February 20, 2012
Federal and State Tax Returns Due Date – Thursday, March 15, 2012
New This Year
Mandatory e-pay California Legislature Passes Mandatory Electronic Payment Law for Taxpayers
On September 30, 2008, the Governor signed Assembly Bill 1389, requiring taxpayers to remit their payments electronically if either of the following occurs:
- Estimated tax or extension payments exceed $20,000
- Tax liabilities are more than $80,000
This new law took effect January 1, 2009 and applies to estimated tax or extension payments made on or after that date, or 2009 taxable year liabilities that are more than $80,000. Once you meet the mandatory e-pay threshold, you must remit all payments electronically regardless of the taxable year, type of payment, or payment amount. If your estimated tax payments, extension payments, or total tax liabilities in 2009 meet the mandatory threshold under the new law, The Franchise Tax Board will require you to make all future income tax payments electronically. The Franchise Tax Board offers three convenient electronic payment options:
| Option | How |
| Web Pay | Go to ftb.ca.gov and select payment options |
| Electronic Funds Withdrawal (EFW) | Include your banking information as instructed on your e-file return |
| Credit Card | Go to ftb.ca.gov and select payment options |
Regular to Roth IRA Conversions
Similarly to tax year 2010 and unlike prior years there is no overall income limitation for taxpayers who are converting regular IRA or qualified retirement account(s) to Roth IRA account(s). However be aware that unlike tax year 2010 the amount of the conversion initiated in 2011 has to be included in taxable income in 2011 and cannot be deferred into the next two tax years.
100% Bonus Depreciation for certain qualified Business Property
During the entire 2011 tax year businesses, including sole proprietorships, can utilize 100% immediate write off on newly acquired qualifying business property if the property is purchased as new and placed in service during 2011. This write off is available only for tangible business property with tax depreciation life of 20 years or less. However there is an overall limitation for this write off in the case of business autos with gross loaded weight of less than 6000 lbs.
Stock Basis Reporting by Brokers
2011 is the first tax year in which your stock broker or equity account custodian has to provide specific stock tax basis information to you as well as a copy to the IRS. The mandatory basis reporting applies only to stocks purchased in 2011 and future years. This information will be provided on the redesigned Form 1099B which you will be receiving from your broker for stock sales in 2011. This mandate was not in existence prior to 2011 so please review the stock basis information reported by your broker and note any corrections if applicable when submitting the information to our office for tax preparation.
Expanded reporting of Foreign Bank Accounts
The IRS has increased the disclosure / reporting requirement for US Citizens having signature authority on foreign bank account(s). Please be aware that you have to disclose bank or securities account information for account(s) on which you have signature authority if the highest maximum aggregate balance on all such accounts during the year exceeds $50,000. In order to properly disclose such account(s) please provide to us the name of the institution(s) with the applicable address and account number as well as the highest maximum account balance during the year on such account(s). Furthermore please provide the amount of any applicable interest or dividend income or capital gain / loss recognized during the year on such account(s). Please note that this is an additional reporting requirement starting in 2011 and the information has to be enclosed with the tax return. The previously applicable separate reporting for foreign bank account(s) with an aggregate value of $10,000 or more still applies.
Employees- Consistent with the 2010 tax filing season, John Kirk, CPA/MA Tax and Radoslav Simeonov, MBA along with Gaylene DeBisschop will handle the bulk of the income tax interviews and tax return preparation. Steve Miller, CPA continues to provide contract services to a number of our firm’s clients.
Nance Dunev will not be joining us for tax season 2011, please contact Nyree Hotchkiss for bookkeeping needs.
Appointments- We have not pre-assigned appointments this year. Please call Nyree Hotchkiss to make your tax appointment now since meeting times fill up quickly. Most of you will be seeing Gaylene, John or Rado for your initial tax preparation meeting. Tim will be available for the latter part of the tax appointment to do planning for 2012 and answer questions that may come up during your tax return interview meeting.
E-Mail & Web Site- Jorstad Incorporated's web site provides company information, financial tools such as loan amortization calculators, newsletters and other articles concerning financial and tax matters and a calendar of important due dates and deadlines. Please take a minute to tour our web site. All staff members have e-mail addresses as well.
You should have received your 2011 organizer in early January to assist you in the assembly and organization of your 2011 income tax return information. If you have not received your 2011 data organizer by the end of January, please call our office as soon as possible and one will be mailed to you or we can e-mail you a PDF copy. Please complete this data organizer as thoroughly as possible. The better organized you are, the faster your income tax returns can be completed which, in turn, will reduce the preparation time and costs. We are planning to use CCH Prosystems to process your 2011 income tax returns. We have used CCH Prosystems services for off-site printing for thirty years and we have been very pleased with their confidential and professional processing of returns.
Your 2011 income tax returns are due Tuesday, April 17, 2012. We can promise to have your returns completed and back to you by April 17, 2012 only if your organizer, tax information and engagement letters are in our office on or before Monday, March 12, 2012.
Extensions of Time to File-
We are happy to assist you in the preparation of your 2011 extension requests, if necessary. Because of the tax preparer liability associated with completing extension requests, we will not provide this service to our clients unless we have sufficient information to prepare a complete and accurate extension request in our possession by Monday, March 28, 2012. We encourage you to complete your organizer and, unless there has been a significant change from 2010, mail your completed organizer to the office, as soon as possible, especially if you are expecting a refund. If you have any questions regarding the completion of your organizer, please call our office for assistance. You may be called to review your tax information, as necessary, before your returns are finalized. Please send in your organizer if it is nearly complete except for missing partnership K-1 forms, etc. Please note in your organizer which forms are missing. If information in your organizer is no longer applicable, please line through it. If you are responsible for assembling information for partnership, corporation or trust income tax returns, please get this data to us on or before Monday, February 13, 2012. You should have received a data organizer for the trust income tax returns. (There is no such data organizer for corporate or partnership entities). . The following firm's hourly billing rates are effective January 1, 2012
Timothy J. Jorstad, CPA tim@jorstad.com $375. John H. Kirk, CPA john@jorstad.com $240. Radoslav Simeonov, MBA rados@jorstad.com $250. Steven P. Miller, CPA steve@jorstad.com $200. Gaylene DeBisschop, gay@jorstad.com $175. Nancy Mallonee, Manager Nancym@jorstad.com $225. Ratna Ross, Bookkeeper Ratna@jorstad.com $150. Liz Simpson, Bookkeeper Liz@jorstad.com $150. Deb Jorstad, Bookkeeper deb@jorstad.com $150. Nyree Hotchkiss, Office Manager Nyree@jorstad.com $150. Administrative$150. We look forward to hearing from you soon.
Sincerely,
Timothy J. Jorstad