The loudest thing I want you to hear from this post is this: THANK YOU for your trust, Atlanta.

Our primary work for this tax season has just about wrapped up.

But notice I said “primary”, there … you see, unlike some tax professionals, we make it a point to do a bit more than simply “fill out forms” on your behalf. I’ll tell you more about that in a moment.

It is no small matter to place your financial life in front of another, and I know that for some it can bring with it some anxiety or discomfort. That’s why we work so hard to be people that you can trust for even more than just a simple “filling out some forms” service.

It’s why I make it a point to post these notes every week (even when we are slammed with work), and it’s why we work so hard to stay up-to-date on all of the latest tax code updates and regulatory changes that come like clockwork, every year.

We take your trust seriously. THANK YOU for it, and for your business.

But this work also brings with it a certain joy — because this past season, we got to see remarkable lives of generosity, love and integrity laid out before us with regularity. For some, this was reflected by their financial statements — and for others, this was displayed by the warmth, kindness and delight by which you communicated with us during this process.

This much is clear: No matter the state of your financial life, nobody (not the IRS, not anyone) can take from you the strength derived from a life lived with gratitude and joy.

You’ve reminded us of that once again, this year. What a privilege it has been to serve Greater Atlanta taxpayers this tax “season” … and we look forward to years of service to come.

Lastly, I hope you’ll forgive me for taking a break from writing you a Personal Strategy Note for this week … I’m not sure that if I did so, anything besides numbers and spreadsheets would come out. It’s amazing what 4 months of staring at government forms does to a brain!

But hey — this is what we signed up for. And we are extremely grateful for your trust, and for the chance you’ve given us to serve you in it, so you don’t have to suffer the same fate.

We will be in touch again soon. Hopefully, we’ll be able to taper off the newly-intense coffee addiction around here enough to write you clearly in the future!

[And, as I mentioned above … we’re not letting up! We’re committing the “offseason” to continue our education related to more ways to save you on your bottom line, and to serving you and your family in ways well beyond simple tax preparation. Ask us about how we can help you be better prepared for next year, and you may really like what we can do for your family’s bottom line!]

With affection, and until next week …

Dennis Bridges
(770) 984-8008
E. Dennis Bridges, CPA

This has been an intense tax season.

For those of us in the tax professional community, there have been emails, message board postings and blog posts flying about the difficulties that many have been facing with regards to all of the additional paperwork called for in the ACA (“Obamacare”) regulations — not to mention the normal round of new tax law changes that we saw.

But you know what has kept me sane? You.

This is the busiest week of our year, this last full week, and we continue to experience graciousness, warmth and encouragement from our clients. I’d like to think that it’s purely because we do such an excellent job, but that wouldn’t quite account for all of it.

We have the best clients of any tax professional firm in the nation, and realizing this, as we have, makes this next week or so vastly better, and more encouraging.

So, before I get to the content of what I have for you today, I wanted you to know how we have been feeling about YOU (among others). More about this soon.

Now, a couple quick reminders about what ELSE April the 15th means…

1) Wednesday, April 15th is the deadline to contribute to IRA’s, etc., in order to have them count on this year’s (2014) taxes.

2) It is also the deadline to claim the almost $1BN in unclaimed refunds for returns dating back to 2011. If you, for some reason, didn’t file for that year, you could be missing out. Call us for this special circumstance: (770) 984-8008
(Or for any other question — but again, bear with us, as we are extremely busy!)

Bridges’ Tax Extension Cheat Sheet
“Successful people are always looking for opportunities to help others. Unsuccessful people are always asking, ‘What’s in it for me?'” – Brian Tracy

There is a lot of confusion, every year, about filing a tax extension, so allow me to share what it’s REALLY about …

As you know, Wednesday, April 15th is the filing deadline for a federal tax return. If you need more time to get your paperwork complete, you need to file (or have us file on your behalf) Form 4868 (Automatic Extension of Time to File —http://1.usa.gov/1DcfWno) with the IRS by the end of the day on the 15th. This gives you an automatic six-month (until October 15, 2015) extension of time to file.

Here’s the bottom line: An “Extension of Time to File” is not an “Extension of Time to Pay”, unfortunately — except for certain cases (more on these in a moment). In normal circumstances, the Extension simply gives you an automatic six months of additional time to get your paperwork together and file that return.

But, if you owe more than what you paid with your estimate, you’ll be accumulating penalties and interest on the difference — so PLEASE don’t take the entire six months to do this!

The exception to this rule is for:

1) Those who have served in combat zones during any taxable events (including earning income) are given the same amount of time they served in the combat zones + 180 days — and this applies to filing *and* paying those taxes. More information for those affected by that is here: http://1.usa.gov/1IDkuTE

2) Any US citizens or resident aliens who live and work abroad automatically have until June 15th to file and pay their taxes (unless already covered by my first provision above)

3) If you have been affected by certain natural disasters. The official list is here: http://1.usa.gov/1FvZrlv

So, if that’s you — let us know. We’ll help you get the relief you need.

For the rest of you, when filing your “Extension of Time to File”, you’ll need to estimate what you think you owe to the IRS. This should not be pulling numbers out of thin air (or various body parts). You’ll still need to go through your receipts and tax documents and get them “somewhat” organized.

From here, you can estimate both your income and your expenses, and then approximate what you owe Uncle Sam. Keep in mind that this is an ESTIMATE. And, you’ll have to pay what you estimate you owe at the time we file for the extension.

You can do this all electronically through our office, you can mail in the form WITH estimated payment (must be postmarked by the 15th), or you can call a specialized provider and pay by credit card. We can provide you with the appropriate number to call.

Dennis Bridges
(770) 984-8008
E. Dennis Bridges, CPA

I’ve heard rumors that (for some unknown reason) many people don’t like to file taxes?

It appears that most folks do NOT like to fill out reams of paperwork only to finally discover how much money they are really giving to the IRS!

This, of course, is why we work so hard — to make this process as painless as possible, and to ensure that you keep all the money you deserve to keep, legally and ethically, under the current tax code.

And we’re in full “all-irons-in-the-fire” mode around here these days, with two weeks left to go in tax season.

Dennis Bridges Shares On Overcoming Procrastination
“Cultivate the habit of being grateful for every good thing that comes to you, and to give thanks continuously. And because all things have contributed to your advancement, you should include all things in your gratitude.” – Ralph Waldo Emerson

When your day wraps to a close, are you leaving tired and satisfied? Or just … tired?

You’ve spent the day in nearly constant activity.

And you may have been procrastinating the whole time.

“Huh?” you say, “I can’t have been procrastinating. I’ve been really busy!”

But there’s the rub: when we’re busy, we can easily trick ourselves into thinking that all of that activity means we’re not procrastinating. Yeah, we’re busy — but we’re not focused on the things that should really have our attention. If someone were to tap us on the shoulder and say, “that thing you’re doing — is that the best use of your attention right now?,” we would hesitate to agree.

We’re busy procrastinating.

The explosion of digital channels and the mobile web makes it very easy to integrate busy-ness and procrastination. There are a lot of “channels that lead to you.” Email, sure. But also Facebook and Twitter and instant messaging and LinkedIn and … etc., etc.

The inputs from these channels come at us thick and fast. That makes it tempting to let the real-time arrivals drive us. Procrastination is always only a click away.

But ask yourself: what are the odds that email at the top of your inbox is the best thing to focus on next? If it’s not, and you choose to deal with it next anyway, then you’re being driven by “latest and loudest,” and are letting your channels dictate your priorities.

So, if you’re set on overcoming procrastination, then what should you do? To get it under control, we need to make getting moving on the right things as attractive as possible.

Procrastination usually boils down to: 1) Not Thinking or 2) Not Doing. Here’s how to beat each…

1) Not Thinking.
I’m avoiding thinking about things I know I should think about.

There can be all kinds of reasons we don’t want to think about a given item, or issue. Whatever the reason, it is usually because of the size or complexity of the issue.

So, boil it down to its contingent parts, and address the smaller issues within the larger whole. Ask yourself: What’s the exact, smallest action that can be taken to move this forward? And, What do I want to see happen from that action? You can always address those questions.

Which leads to…

2) Not Doing.
I’m avoiding doing things I know I should be doing.

Again, break it down into something smaller. Take the tiny action, do it again … and you’ll find yourself suddenly settled into taking the larger action you had been putting off in the first place.
Here’s one small action…

Consider us “The Ultimate Procrastination Solution”.

Allow us to take the pain away from that big pile of forms and obligations … and allow yourself to move into sustained action on those bigger things.

Dennis Bridges
(770) 984-8008
E. Dennis Bridges, CPA

Spring has officially sprung and we’re working like busy bees on client tax returns these next few weeks before April 15th, and I would like to say: if you have not yet done so, we need to get your information to complete your return as soon as possible.

This has been a very busy season … so as much as you can enable us to do our work on your behalf, the better.

Give us a call: (770) 984-8008

You need someone on your side who can fight for you.

More and more municipalities (states, cities, the federal government) are looking into every corner possible for additional cash, and not just those who are facing bankruptcy.

And one way they do so is to scrutinize … you.

Dennis Bridges Reveals 6 Common Tax Preparation Mistakes That Could Get You Audited
“What is once well done is done forever.” – Henry David Thoreau

Sometimes clients come to us from other professionals because they have gotten themselves in hot water with the IRS, and they’re facing the withering gaze of the auditors.

We don’t want that to happen for you — so here are 6 common tax preparation mistakes we watch out for when preparing and submitting your tax returns…

1. Indefensible claims
There are so many old wives’ tales saying that certain items trigger an audit: home office deductions, passive losses, schedule C (sole proprietorship) activities, etc. But you really can’t predict the trigger (and you can drive yourself crazy trying), but you *can* adopt the “be reasonable” mantra about every item on your return, including these. So if you don’t have a decent claim for a home office, don’t claim it. If your money-losing sole proprietorship is really more of a fun hobby, treat it as such.

Look–don’t be scared to take deductions and losses you’re entitled to, but don’t take tax positions you aren’t comfortable defending. If you take reasonable tax positions, you’ll likely find you won’t end up needing to defend them. And if you do face an audit, it will likely be far easier.

2. It doesn’t all add up.
This seems like it should go without saying, but make sure you add, subtract and multiply accurately. Check your numbers through each step and do some simple math checks when you finish. If you do make a math mistake, you are likely to get a math correction notice from the IRS. This isn’t an audit. But your goal is to minimize your interaction with the IRS bureaucracy, which, ah… isn’t known for the best mail handling practices.

3. Lost 1099
This can be confusing, because the Form 1099 comes in many varieties, including 1099-INT for interest, 1099-DIV for dividends, 1099-G for tax refunds, 1099-R for pensions and 1099-MISC for miscellaneous income. These forms are sent by payers of such funds to both you and the IRS.

So regardless of how many 1099s you receive, make sure they all are accounted for on your return. There are also Forms 1098 which lenders send (to you and the IRS) recording how much interest you paid. The IRS matches your return against the 1098s and 1099s. So one sure way to guarantee an IRS query is to fail to account for something! If a Form 1099 is wrong–say it reports more income than you had–you can explain or deduct it on the return, but you need to first report it.

4. Suspicious OVER-reporting
I’m not talking about under-reporting income, or holding necessary information back. But you’d be surprised how many professionals and amateurs alike try to submit too much *supporting* information. True, if your return is complex, you may need to add explanations or disclosures in footnotes. Be concise, truthful and accurate, but don’t provide copies of sales agreements, settlement agreements, bank statements, etc., unless you are later asked by the IRS to do so.

Disclosures can be made on regular paper or special IRS forms. A Form 8275 “Disclosure Statement” on plain paper can be used any time you need to disclose something that can’t be adequately disclosed on the forms. Form 8275-R “Regulation Disclosure Statement,” is for disclosing positions that are contrary to IRS Regulations or other authority. You shouldn’t be filing a Form 8275-R–or taking a tax return position that would require it–without professional help.

5. Fighting unnecessary fights.
If you take reasonable tax positions, and complete your return accurately, checking your math, why should you pay a bill if the IRS sends you one?

Frankly, it’s simply a matter of practicality (and wisdom) rather than principle. It just doesn’t pay to fight with the IRS on small matters. So don’t get into the bureaucratic system and risk bigger problems for a few dollars. Just pay it and move on.

6. Ticky-Tack Prior Year Amending
Here’s the reverse situation of my previous point: amended returns are reviewed much more regularly than initial returns. So if you forgot a deduction or otherwise think you can get a small amount back by amending, think twice before amending your return (i.e. — consult with a pro). Consider whether you might have bigger problems if other matters on your return, unrelated to the amendment, are reviewed. Yes, you can win a battle … and lose a larger one.

And a last word: No matter how careful you are to avoid tax preparation mistakes, there’s no way to guarantee you’ll never have a tax controversy. Sometimes your number just comes up.

And if your number is called, well, we’re here to walk with you …

(But we’ll do everything in our power to make sure it’s NOT called!)

Warmly,

Dennis Bridges
(770) 984-8008
E. Dennis Bridges, CPA

Brackets, brackets, brackets.

Depending on when you read this, you may have already filled yours out (or it may already be busted!). Billions fly around every year (probably much of it not reported onForm W-2G!), and it’s become a huge part of this season, as you no doubt know.

You know what else is a big part of this season? Unclaimed refunds.

Every year, we get the number from the IRS, and it always hovers around $1B. That’s where it is this year: http://cnnmon.ie/1wQECRl
There’s buckets of the green stuff sitting in accounts, waiting for those unsuspecting non-filers to realize that it’s actually theirs. DEADLINE: April 15.

If you didn’t file taxes in 2011 (i.e., during the spring of 2012), now is your last chance. Allow us to help you do so by either reviewing a prior year’s return which somebody else submitted for you, or by evaluating your financial records if you didn’t actually file a return that year. It’s amazing how many people that is true for.

Lastly, in the interest of having this NOT happen for you, let’s make sure you do it right for THIS year.

In early January, I posted a “checklist”, and it was one of my most popular messages. I guess it was handy. And now is a time when many are finally getting around to this, so I thought I’d share it again.

Putting together this list may run slightly counter to my business goals — after all, we do get paid to do this on behalf of clients! That said, our mission is to ensure that EVERYONE in the local area saves the most possible when the IRS comes calling. Some of these may seem small, but trust me when I say that they add up.

Once Again, Dennis Bridges’ 2015 Tax Time Document Chase List
“So many fail because they don’t get started; they don’t go.” – W Clement Stone

Yes, this is a long list — but it’s the unfortunate reality of our tax code that it’s not even comprehensive! But these items will cover 95% of our clients. Really, this is for ensuring that we’re able to help you keep every dollar you can keep under our tax code.

Even if for some strange reason you won’t be using our cost-effective services this year, feel free to use this list as a handy guide…

Personal Data
Social Security Numbers (including spouse and children)
Child care provider tax I.D. or Social Security Number

Employment & Income Data
W-2 forms for this year
Tax refunds and unemployment compensation: Form 1099-G
Miscellaneous income including rent: Form 1099-MISC
Partnership and trust income
Pensions and annuities
Alimony received
Jury duty pay
Gambling and lottery winnings
Prizes and awards
Scholarships and fellowships
State and local income tax refunds
Unemployment compensation

Health Insurance Information (New for 2015)
* All 1095-A Forms from marketplace providers (if you purchased insurance through a Marketplace)
* Existing plan information (policy numbers, etc.)
* If claiming an exemption, your unique Exemption Certificate Number
* Records of credits and/or advance payments received from the Premium Tax Credit (if claiming)

Homeowner/Renter Data
Residential address(es) for this year
Mortgage interest: Form 1098
Sale of your home or other real estate: Form 1099-S
Second mortgage interest paid
Real estate taxes paid
Rent paid during tax year
Moving expenses

Financial Assets
Interest income statements: Form 1099-INT & 1099-OID
Dividend income statements: Form 1099-DIV
Proceeds from broker transactions: Form 1099-B
Retirement plan distribution: Form 1099-R
Capital gains or losses

Financial Liabilities
Auto loans and leases (account numbers and car value) if vehicle used for business
Student loan interest paid
Early withdrawal penalties on CDs and other fixed time deposits

Automobiles
Personal property tax information
Department of Motor Vehicles fees

Expenses
Gifts to charity (receipts for any single donations of $250 or more)
Unreimbursed expenses related to volunteer work
Unreimbursed expenses related to your job (travel expenses, entertainment, uniforms, union dues, subscriptions)
Investment expenses
Job-hunting expenses
Education expenses (tuition and fees)
Child care expenses
Medical Savings Accounts
Adoption expenses
Alimony paid
Tax return preparation expenses and fees

Self-Employment Data
Estimated tax vouchers for the current year
Self-employment tax
Self-employment SEP plans
Self-employed health insurance
K-1s on all partnerships
Receipts or documentation for business-related expenses
Farm income

Deduction Documents
State and local income taxes
IRA, Keogh and other retirement plan contributions
Medical expenses
Casualty or theft losses
Other miscellaneous deductions

We hope this helps, and we really look forward to seeing you in here in 2015!

Warmly,

Dennis Bridges
(770) 984-8008
E. Dennis Bridges, CPA