Ulrich & Associates PC

How complex is the tax code?

2011-11-10T14:34:00.000-07:00

Here is a flow chart for the new health insurance credit.......... Need a CPA?

Peer Review

2011-05-04T09:46:00.001-06:00

We are in compliance with the AICPA’s Statements on Quality Control Standards. Please click on the link below for our most recent peer review.

Peer Review Letter

2011 Tax Change Summary

2011-01-27T07:57:00.000-07:00

Below is a link to a summary of important changes for 2011 to individual taxes, business taxes, and retirement plans. Please contact us if you have any questions.

2011 Tax Change Summary

New 1099 reporting for rental property owners

2011-01-06T16:51:00.000-07:00

Do you own a rental property? If yes, the IRS is requiring you to issue Forms 1099 for the 2011 tax year. Click below to see addtional info.

1099 Requirement for Rental Property Owners

Will the new tax law affect you?

2011-01-05T13:56:00.000-07:00

The answer is yes. Click the link below to find out how. Most, if not all, taxpayers will have their tax bill reduced.

New Tax Bill Summary

Tax filing may be delayed

2010-12-29T21:42:00.000-07:00

Just before Christmas, Congress passed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. This tax act extended many tax cuts, reducing nearly everyone's tax bill. However, due to the late passage of the bill, the IRS need time to adjust to the new law. Please see the link below for more information.

If you file Form 1040 and itemize your deductions on Sch. A (i.e. you claim mortgage interest, property taxes, and/or charitable contributions) you won't be allowed to file your return until mid- to late-February. This will delay a potential refund for many taxpayers.

You will still be able to prepare your tax return before that date, so don't wait to make an appointment to come have your taxes prepared. We just won't be allowed to file the return until given the go-ahead by the IRS.

http://www.irs.gov/newsroom/article/0,,id=233449,00.html

The future of US tax?

2010-11-12T15:14:00.000-07:00

Recently, the Presidential Fiscal Commission released its draft proposal of the future of the US tax structure. It has a number of dramatic tax options that would significantly change the structure of taxes here in the US. If you are interested in some light to moderate reading, the document is provided in the link below.

Co-Chairs Tax Proposal

Also, the Commission also proposed $200 billion in spending cuts, noted in the document below. You'll find it very interesting.

Federal Spending Cuts Proposal

Ready for a smaller paycheck?

2010-10-28T09:08:00.000-06:00

This article notes that you may have a small paycheck come January. Just a heads up.

Tax Cut

2010-10-20T20:58:00.001-06:00

Interesting article, regardless of your political preference. Just a reminder that you may have a tax cut coming again on your 2010 taxes!

From Obama, the Tax Cut Nobody Heard Of

Utah Pass-Through Withholding

2010-08-25T15:22:00.000-06:00

Utah recently changed its requirements for withholding tax on non-resident and business owners of Utah pass-through entities (S corporations, LLCs, partnerships, and trusts). Click on the document below for additional information or contact Brandon or Bruce.

Utah Pass-Through Entity Withholding

Join us on Facebook!

2010-08-06T08:29:00.010-06:00

Please join us on Facebook. Follow our page to get our blog posts streamed to your Facebook account. Click below to join us!

Ulrich & Associates PC Facebook page

Summer Dam Party

2010-08-06T08:26:00.000-06:00

On Monday July 26th, we took a short break from working hard for our clients and headed up to Pineview Reservoir for the annual Ulrich & Associates Summer Dam Party. We had a great time (in spite of the weather deciding to contribute wind and rain to the festivities). Two boats, a rope swing, a beach for the children to play on, happy staff members and their families, and delicious food made for a wonderful afternoon and evening.

Can I deduct my moving expenses?

2010-08-03T09:53:00.000-06:00

Are my moving expenses deductible?

People commonly wonder whether they can deduct moving expenses and, if so, how much? The rules about moving expenses are fairly expansive but, in a nutshell, there are three criteria that determine if the expenses are deductible or not.

1- The move must be closely related to the start of work. As a general rule, if you move within a year of reporting to a new job and your new home is closer to your new job than your old home is to your new job, you probably meet this requirement.

2- The move must pass the distance test. This test requires that your new job be at least 50 miles farther from your former home than your old job was from your former home. For example, if your old job was 8 miles from your old home, your new job must be at least 58 miles away from your old home.

3- Your new job must pass the time test. This test requires that you work full-time in your new area for 39 weeks of the first 12 months after arriving in the area.

For each of the above criteria, there are additional details, exceptions, etc. that govern who may or may not deduct moving expenses. If you have moved for work, give Brandon or Bruce a call and we would be happy to help you figure out how to best use your moving expenses on your tax return.

Below is a link to a more detailed explanation of deductible moving expenses:

Moving Expenses

IRS Penalties and Interest

2010-07-29T09:54:00.000-06:00

In a previous entry, Bruce shared what it is like to be audited by the IRS. Here, we’re going to discuss another scary part of the IRS: penalties and interest.

Making mistakes on our tax returns, forgetting to file, or not having enough money to pay what we owe can happen to the best of us. We know there will be negative consequences, but how negative are they? Well the consequences can range anywhere from some minor interest charges to several years in prison.

Since our clients are honest people, we’ll assume that any issues you have were honest mistakes that don’t warrant jail time. Those mistakes, however, will probably warrant some penalties and/or interest. Interest and penalties can accumulated quickly, so it is important to file your taxes and pay any balance due on time. The IRS can assess any and all of the most common penalties faced by taxpayers, as shown below:

Failure to file or late filing of your return: Penalty is 5% of unpaid balance for each month the return is late (maximum of 25%)

Failure to pay or late payment: 0.5% of unpaid balance each month it is late (approximately 6%)

Underpayment of estimated tax: Interest at the federal rate for underpayment (currently 4%)

Adoption Credit - New and Improved!

2010-07-27T10:49:00.000-06:00

With the recent passage of the Health Care Reform Act, there are going to be many changes that affect how much and what kind of taxes we pay. One change that could be beneficial for some relates to the adoption credit.

For 2010, the maximum tax credit for qualified adoption expenses has been raised to $13,170 and is now a refundable credit, which means you may be able to get a refund that exceeds that tax you pay.

Please contact Brandon or Bruce if you have any questions.

Below is a link to a more detailed explanation of the credit.

Adoption Credit

Ragnar Relay Wasatch Back 2010

2010-07-19T16:31:00.004-06:00

Ulrich & Associates sponsored two teams for the Ragnar Relay Wasatch Back 2010 race. Each team ran from Logan to Park City, covering 188 miles. Chuck, Mike, Cathie, and Kylee each participated. The remaining runners were family members, friends, and clients. The firm has registered two teams for the 2011 relay and can't wait to do it again!

Top from left to right: Camille Ames, Brady Ulrich, Chuck Ulrich, Jed Johnson, Amanda Ulrich, Jamey Price
Bottom from left to right: Elyse Greiner, Ashley Ulrich, Camille Carver, Jennifer Ulrich, Eric Okleberry
Not pictured: Tasche Ulrich

From left to right: Tammy Ulrich, Mike Ulrich, Cathie Hurst, Jeff Hurst, Kylee Wayment, Ryan Wayment, Brant Beus, Jeremy Hart, Janet Pace, Becky Stromberg, Bryan Stromberg

Small-employer health insurance credit

2010-07-15T09:33:00.004-06:00

The recently enacted Health Care Bill included a new tax credit for small business owners who provide and pay for at least 50% of the insurance premiums of their employees' qualifying health plans. In 2010 the credit is a maximum of 35% of the cost of the employer-paid premiums.

In order to qualify for the credit, an employer can have no more than 25 full time equivalent employees (FTE) and the average wages per FTE must be less than $50,000. To qualify for the maximum credit, the employer can have no more than 10 FTE and average wages must be less than $25,000.

As usual the Congress and the IRS has not made things simple. If you need assistance determining if your business may qualify for the credit, please contact Brandon or Bruce.

Below is a link to a more detailed explanation of the credit.

Small-Employer Health Insurance Credit.pdf

My Audit Experience

2010-07-13T10:24:00.001-06:00

This is Bruce's experience in being personally audited by the IRS:

After sitting with a compliance officer for four hours I have come to the conclusion that the IRS must require its employees to have “can I see your documentation” tattooed on the inside of their eye lids. I heard this over and over. Fortunately, I was prepared with the documentation necessary to prove my case. Unfortunately, providing the evidence supporting your case is only half of the challenge. The second half of the challenge is getting the IRS to interpret the evidence the same way that you interpret the evidence, and helping the IRS to see how the evidence relates to the issue at hand. This second half of the challenge was, in my experience, the most difficult part of the process.

When presenting your evidence to the IRS, you must understand the evidence forwards and backwards, since the IRS representative is not experienced with the details of your particular case. Along with not having experience with my particular case, the compliance officer assigned to my case was not familiar with the Internal Revenue Code sections directly related to my case. I was caught off guard by his lack of familiarity with the section of the tax code that was in question. I brought with me the Regulations supporting my position and provided copies of the Regulations to the officer. This proved to be of great benefit since it limited the amount of time the officer had to spend researching the specifics of my case.

The most important thing I would like to share from my experience is the signing of the audit findings. The officer was very persistent in his attempts to get me to sign a statement saying that I agreed with the audit findings. I found this to be very unnerving. Remember that if you are not comfortable with the audit findings you have additional avenues you can pursue.

Congratulations Bruce!

2010-07-13T10:13:00.002-06:00

We are pleased to announce that Bruce Gulso has obtained his CPA license from the State of Utah, after successfully passing all four sections of the CPA exam. With the addition of Bruce, the firm now employs eight CPAs. The firm believes that Bruce’s high moral and ethical standards, coupled with his work ethic make him a great addition to the profession.

New sales tax deduction/tuition credit

2009-12-08T15:35:00.000-07:00

Several new and exciting, yes I said exciting, tax provisions have been enacted by congress for the 2009 tax year. Two of the provisions that caught my attention this year are the deduction for qualified motor vehicle taxes and the American Opportunity Tax Credit (AOTC).

The deduction for qualified motor vehicle taxes allows taxpayers to deduct the sales/excise tax that was paid when the taxpayer purchased a qualified vehicle in 2009. This new deduction is different from the sales tax deduction that can be claimed by itemizing taxpayers. In the past itemizing taxpayers have had to choose to deduct either State income taxes paid or sales tax. Under this new provision the taxpayer will be allowed to claim State income taxes paid and the sales/excise tax paid on the purchase of a qualified vehicle. This deduction can also be taken by individuals who claim the standard deduction. In order to claim this deduction, taxpayers taking the standard deduction must now complete Schedule L (Form 1040A or 1040). As usual, income and other limitations apply.

The AOTC has implemented several changes to the long standing Hope credit. The AOTC allows for taxpayers to claim a credit of up to $2,500 - the previous credit was $1,800, called the Hope credit - for qualified higher education expenses. The AOTC is available for the first 4 years of the student’s postsecondary education; the Hope credit was limited to two years. The AOTC has also expanded the definition of qualified higher education expenses to include textbooks and other course material. Again, income and other limitations apply.

Year-end Tax Planning Letter

2009-12-04T12:39:00.000-07:00

Below is a link to our annual year-end tax planning letter. Please call if you have questions or comments regarding the tax situation for the remainder of 2009 or 2010.

2009 Year-End Tax Planning Letter

2009 Tax Law Updates

2009-12-03T14:30:00.000-07:00

Congress passed two important tax bills in 2009. Below are brief summaries of each bill. Please call or email Brandon - brandon@ulrichcpa.com or 801-627-2100 - if you have questions.

American Recovery and Reinvestment Act

Worker, Homeownership, and Business Assistance Act

First-Time Homebuyer Tax Credit

2009-12-02T14:44:00.000-07:00

The First-Time Homebuyer Tax Credit has been extended. On November 6, 2009, the Worker, Homeownership and Business Assistance Act of 2009 was signed into law. This act extends and expands the first-time homebuyer credit. An eligible taxpayer entering into a binding contract on or before April 30, 2010 and closing on his or her home by June 30, 2010, will have the opportunity to claim the $8,000 credit. Due to some abuses of the original credit, the IRS is requiring additional supporting documentation. Click on the link below to see the complete list of documentation that may be required when claiming the credit.

The Worker, Homeownership and Business Assistance Act also includes an opportunity for long-time residents to claim a credit up to $6,500. To qualify for this credit, a buyer must have owned and lived in the same home as primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as primary residence. For assistance in claiming the First-Time Homebuyer Tax Credit, or to get more information about the credits, contact Brandon – brandon@ulrichcpa.com or (801)627-2100.

IRSHomebuyerCreditDocumentation.pdf

Free review of prior tax returns

2009-11-06T10:56:00.001-07:00

We are now offering a new service! We are offering to review your prior three years of tax returns for free. Our review could help determine possible missed deductions, or simply give you some peace of mind. Contact Brandon - brandon@ulrichcpa.com or 801-627-2100 - for assistance.

Congrats to Bruce...

2009-09-04T11:12:00.000-06:00

...for passing his first section of the CPA exam. He scored an 82 on BEC. Way to go above and beyond!

USU Meet the Firms Night

2009-09-04T11:09:00.001-06:00

The firm attended Meet the Firms night at Utah State University on Sept. 3. We had a great time and met many potential candidates to hire. We were even able to stream the USU-Utah football game at our table so we wouldn't miss any action.

Summer party!

2009-09-04T11:04:00.000-06:00

We had the firm's annual summer party at Pineview Reservior in August. Everyone enjoyed the boating, playing in the sand, and eating. Bruce and Brandon even tried out the rope swing!

Extended tax deadlines

2009-08-11T14:37:00.000-06:00

The extended deadline for filing partnership/LLC, trust, S-corporation and C-corporation returns is September 15. The IRS recently changed the extended filing deadline for all partnership/LLC and trust tax returns from October 15. Please click on the link below to view our client letter.

Extended Deadline Letter

Life Insurance Reporting

2009-08-11T14:35:00.001-06:00

The IRS has instituted new life insurance reporting guidelines for company-owned policies. If your business has these policies, please contact Brandon for details regarding the reporting guidelines.

Suspension of RMDs in 2009

2009-01-26T12:22:00.000-07:00

Congress recently suspended required minimum distributions from retirement accounts for 2009. Individuals should consider their investments and retirement goals, their marginal tax rates and their age when contemplating what distributions, if any, to take in 2009. Please contact Clark Ulrich at 801-627-2100 with questions regarding RMDs in 2009.

We've Grown!

2008-12-19T11:35:00.000-07:00

A big welcome to our latest additions to the Ulrich Family! Kylee Wayment, Bruce Gulso and Clint Allen, have all accepted positions within our office. Each of them individually bringing a wealth of knowledge and skill that will continue to elevate our firm's efficiency in best serving our clients.

Christmas Party

2008-12-19T11:19:00.000-07:00

The office Christmas Party was held on December 5th this year. A lot of fun gifts were exchanged and a lot of memories made. Thanks to all the staff and spouses who brought their "Christmas cheer". Its nice to slow down, enjoy ourselves and reenergize as we gear up for the busy season ahead.

Congratulations Lisa!

2008-12-19T10:54:00.000-07:00

It's official! Lisa Hopkins has passed the exam and is now a licensed CPA. We are proud of her and the hard work she put in to achieve this. Again, Congratulations Lisa!

Welcome Jennifer!

2008-11-11T08:13:00.000-07:00

We would like to welcome Jennifer to the Ulrich & Associates team. She is our new receptionist. She was previously employed by the State of Utah.

Basement Progress

2008-11-11T08:06:00.000-07:00

Work on our basement is moving forward. Cabinets will be installed this week. Carpet and electrical will be completed soon. We are tentatively scheduled to move into our completed basement around December 1st. We will have an open house in December or January so everyone can view our new digs!