The Statement
The Statement

A less taxing tax season

These tools can help lead you through the maze of busy season

macpa's tax season resources

The MACPA offers a number of valuable resources to help make your tax season less taxing. They include the following:

Tax resource center: All of the MACPA's online tax resources in one place. It's updated often, so check back each day to see what's new. Visit here.

Tax listserve: One of our most popular member resources. Send and receive tax-related advice via e-mail with other MACPA members. Signing up is fast and free.

CCH tax guides: Get 30-percent discounts on a variety of best-selling CCH tax books, including the U.S. Master Tax Guide, the Guidebook to Maryland Taxes, the Practical Guide to the Sec. 199 Deduction, the Investment Tax Planning Guide, 1040 Express Answers, the U.S. Master Sales and Use Tax Guide and the U.S. Master GAAP Guide. Get details here.

Tax E-ssentials: Our monthly e-newsletter is packed tax news, articles, resources and events. Sign up for a free subscription.

Money Management columns: These free columns offer great advice for taxpayers. Share them with your clients, staff, family and friends.

NOTE: The California Society of CPAs contributed to this article.

The clouds of yet another tax season are gathering on the horizon, and the prospects of long hours and stressful deadlines weigh heavily on the minds of CPAs from Western Maryland to the Eastern Shore.

But help exists. You just have to know where to look.

The MACPA has been doing some searching of its own, and we’ve compiled a list of resources that could help ease the pain of tax season 2007.

Maryland tax resources

Resources for tax pros: The Maryland Comptroller’s Office has developed an online center of state tax resources specifically for CPAs and other tax pros. Visit the center at taxpros.marylandtaxes.com.

2006 tax law changes: The Maryland Comptroller’s Office has put together a comprehensive summary of 2006 tax legislation that may impact CPAs and their clients. Read the summary at taxpros.marylandtaxes.com/legislative.asp.

New CPA-related laws: Find out which CPA-related bills passed and which ones didn’t during the 2006 session of Maryland’s General Assembly. www.macpa.org/content/Member/
Documents/PDF/MDtax06.pdf

Maryland’s e-filing program: Complete rules and guidelines for e-filing resident, non-resident and business returns is available at taxpros.marylandtaxes.com/efileinfo/.

Estate tax updates: Recent law changes affect the calculation, filing requirements, extension requests and interest and penalties involved with the Maryland estate tax. Get complete details on the Maryland Comptroller’s Web site: individuals.marylandtaxes.com/estatetax/.

Tax calculators: The Comptroller’s Office offers online resources that can help you calculate quarterly estimated income taxes or the amount an employer should withhold from income for state taxes. Get details at taxpros.marylandtaxes.com/onlinesrvc/calculator.asp.

State tax FAQs and help lines: You will find answers to some frequently asked state tax questions and phone numbers where you can get additional help at taxpros.marylandtaxes.com/guides/taxproblems.asp.

Federal tax resources

IRS resources for tax pros: Get answers to all of your federal tax-related questions at www.irs.gov/taxpros/.

Practitioner Priority Service: The IRS Practitioner Priority Service – (866) 860-4259 – is a toll-free, accounts-related service for tax practitioners. It is your first point of contact for IRS assistance regarding your clients’ account issues. Calls are routed to a designated site based on the practitioner’s area code. Service hours are 8 a.m. – 8 p.m. local time, weekdays.

IRS Web tools: In addition to the IRS e-file program (www.irs.gov/efile/article/0,,id=118663,00.html) , other e-services for tax professionals are available.

  • Disclosure Authorization allows tax pros to electronically submit Form 2848, Power of Attorney and Declaration of Representative, and Form 8821, Tax Information Authorization.
  • Electronic Account Resolution allows tax pros to expedite closure on clients’ account problems by electronically sending and receiving account-related inquiries.
  • The Transcript Delivery System allows practitioners to request and receive account transcripts, wage and income documents, tax return transcripts and verification of non-filing letters.
  • The Record of Account, a new product, combines both the Return Transcript and Account Transcript into one product.
  • Taxpayer Identification Number Matching is part of the IRS’s e-services suite. For details, visit www.irs.gov/taxpros/article/0,,id=107478,00.html.
  • E-payments: The IRS offers electronic payment options for individuals and businesses, including electronic funds withdrawal. Visit www.irs.gov/efile/article/0,,id=101317,00.html.
  • Electronic Federal Tax Payment System: The EFTPS is a free service provided by the Treasury. It allows businesses and individuals to pay their federal taxes electronically. For more information, visit www.EFTPS.gov.
  • Directory of prior publications: This may prove valuable when doing a prior-year return and can help refresh your memory to previous law. Visit www.irs.gov/pub/irs-prior.

Mandatory e-filing for corporations and exempt organizations: Corporations and tax-exempt organizations with total assets of $10 million or more that file at least 250 returns per year are required to e-file their Forms 1120 for the 2007 filing season. Private foundations and charitable trusts must electronically file Form 990-PF, regardless of their asset size, if they file 250 or more returns per year. Returns include income, employment tax and information returns, such as Forms W-2 and 1099. For more, visit www.irs.gov/businesses/corporations/article/0,,id=146959,00.html.

The AICPA also offers guidance related to e-filing requirements. Download the guidance at www.macpa.org/Content/22855.aspx.

2007 standard mileage rates: As of Jan. 1, 2007, the standard mileage rates used by the IRS to calculate the deductible costs of operating an automobile will be 48.5 cents per mile for business purposes; 20 cents per mile for medical or moving purposes; and 14 cents per mile for charitable purposes. Get details at www.macpa.org/Content/22786.aspx.

2007 pension plan limitations: The IRS has unveiled cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2007. Many of the pension plan limitations will change for 2007. For most of the limitations, the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. For example, the limitation under Sec. 402(g)(1) on the exclusion for elective deferrals described in Sec. 402(g)(3) is increased from $15,000 in 2006 to $15,500 for 2007. This limitation also affects elective deferrals to Sec. 401(k) plans and to the federal government’s Thrift Savings Plan, among others. Get details at www.macpa.org/Content/22763.aspx.

Roth Sec. 401(k) plans: 2006 was the first year that employers could offer Roth Sec. 401(k) plans, which combine features of traditional Sec. 401(k) plans with those of the Roth IRA. Roth Sec. 401(k) contributions are taken out of a participant’s paycheck and deposited into selected investment options, like a Sec. 401(k) contribution. But contributions to Rosh Sec. 401(k) plans are made with after-tax dollars. While there is no up-front tax deduction, the account will grow tax-free and withdrawals will be tax-free provided they are taken after age 59½ and after at least five years from the first contribution date. Down the regulations at www.ustreas.gov/press/releases/reports/roth401k_reg_attch.pdf.

Automatic six-month extension: Individual and business taxpayers can request an automatic six-month tax filing extension without a reason or a signature. The streamlined extension program is available for individual taxpayers through Form 4868, and for business taxpayers through a streamlined Form 7004. For more, visit www.irs.gov/newsroom/article/0,,id=150456,00.html.

Federal legislation

Tax Increase Prevention and Reconciliation Act: For individuals, the TIPRA provides lower tax rates on long-term capital gains and qualified dividends; AMT relief; an increase of the kiddie tax age to children under 18; and the removal of the AGI ceiling after 2009 for regular IRA and Roth IRA conversions. Changes affecting businesses and corporations include the extension of the enhanced Sec. 179 expense election through 2009, and tax-free corporate divisions. The act also makes extensive changes to the IRS’s offer-in-compromise program. Read an overview of the act at www.macpa.org/Content/21609.aspx.

Pension Protection Act: President Bush signed the PPA on Aug. 17, 2006, providing extensive changes to existing law and new rules affecting qualified retirement plans, plan administrators and participants. The PPA makes comprehensive amendments to the Internal Revenue Code and the Employee Retirement Income Security Act of 1974, as amended. The PPA made permanent certain temporary provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 relating to retirement plans. Other changes include automatic enrollment in Sec. 401(k) plans, increased deduction limits, more frequent reporting and disclosure statements, broadened portability, cash balance pension plans and changes to fiduciary rules governing investment advice. For more about the PPA, visit www.macpa.org/Content/22602.aspx.

2005 Gulf Opportunity Zone Act: Some of the provisions of this act apply nationally, including changes to the suspension of interest and certain penalties, non-qualified deferred compensation plans, and the deduction regarding domestic production activities. Read an overview of the act at www.house.gov/jct/x-88-05.pdf.

AICPA resources

Brochures for individuals and businesses: The AICPA has produced a series of brochures that provide tax saving tips and guidance about retirement planning, financial planning and college planning. Guidance for businesses center on business financial, business structures and ways to protect a business. Download the brochures at www.aicpa.org/cpamarketing.

You also can save money when you customize and print these brochures for clients, family and friends by using FedEx Kinko’s. Find out how at www.macpa.org/Content/22720.aspx.

Speeches: Giving a speech about tax strategies? The AICPA has produced the perfect text for your discussion. Download the text and an accompanying PowerPoint presentation at www.aicpa.org/cpamarketing.