| Photograph was taken by Joyce Ragels in Tucson, AZ, near her home. |
Newsletter for year end 2011.
Written by Joyce Ragels EA What is an EA? Enrolled Agent. I
passed a two day exam given by the IRS covering all levels of taxation
concerning individuals, partnerships, corporations, estates, and ethics. EAs
are the ONLY Federally licensed professional tax advocates. I can work in
any state without further credentials or certification. A few states require
licensing, Arizona does not. Mandatory continuing education of 72 hours is
required per three year license cycle.
Email jragels@gmail.com
Office Hours
I will open my office for tax preparation on January 16, Monday through
Saturday from 9 to 5. I no longer work evenings. Should you have all your
material sooner, just email me or give me a call.
Website
This is still a work in progress... Maybe it will always be. :) I will post this
newsletter and information forms.
http://www.jragels.com
Children
Nothing is cut in stone with the exception of children. I will always request
that you not bring your children for your appointment. They get bored and I
have no way to entertain them and do not care to do so while working on your
tax returns.
Appointments
I am not going to preschedule appointments. When you get your W-2s and
other paperwork, just email me or give me a call and I’ll get you in ASAP.
I am not going to do any tax prep after April 17. I am semi retired and
just want to do other things like travel and quilt between April and
December. So, if this is a problem for you, maybe it is time to find a new
tax preparer. Sorry, folks, but unless there is a serious illness or a death in
the family, there will be no extensions. My office will still be open year round
for advice or to respond to IRS letters.
Engagement Letter
This year I will be using an engagement letter for all clients. This
engagement letter will replace the verbal agreement we have always had. You
furnished me with info and I prepared your federal and state tax returns and
gave you copies. For that you paid me a fee.
It has been normal in the business to have a written contract for quite a few
years. I just resisted. I find it very unsettling that this has become
necessary.
You will find an engagement letter attached to this newsletter. Sign it and
date it and bring it to me with your other paperwork. I will make you a copy
that contains all the signatures and include it with the copy of your return.
Highlights for 2011 Returns
Landlords do not need to issue 1099s this year. That starts next year. So
keep track of any rental expenses you pay to an individual that is more than $
600. That is for the plumber, electrician, roofer, landscaper, etc. Any
work means any work that totals more than $ 600 for the year paid to one
person or company. Landlords and Sole Proprietors will be asked a new
question on the return. Were you required to file a 1099? Did you file the
1099? You can guess what might happen depending on those answers.
New Capital Gains Form - There is a new form for capital gains this year,
Form 8949. Some of your 1099s may include additional information. Brokers
are now being required to furnish more info.
Foreign Interest - Form 8938 will be required to be filled out and attached to
your return if you have any interest in a foreign country. This does not
include earnings from investments funds.
Use Tax - A use tax is imposed when you purchase an item out of state that
you will be using in the state in which you reside. Nothing new. What is new
is the aggressive way this is being addressed. During an audit, for such a
violation there will be a penalty. They are talking a higher penalty for
business property. Just a heads up. The states are hungry.
New Title This Year
Enrolled Agents, like myself, have been licensed by the Department of
Treasury for years starting shortly after the Civil War. CPAs and Attorneys
are licensed by the state where they practice.
A few states began licensing tax preparers several years ago, but most
income tax preparers are not now and have never been licensed by any agency
or state.
Testing is now mandatory to prove a paid preparer has minimum tax knowledge
requirements. I will be exempt from the testing because I have
already proven my tax knowledge by passing a two day EA exam given by the
IRS.
Beginning this year people who take and pass this test will become Registered
Tax Preparers. You must be either an EA, CPA, attorney, or a Registered
Tax Preparer in order to electronically file tax returns next year.
I have been wanting licensing to come to this profession for many years. Any
person who preparers a tax return should have to pass such an exam. There
is more to know than what comes is a software box. Case in point, there is a
tax preparer I fired for his lack of knowledge that has been writing returns
for over 25 years. With this testing requirement maybe he and those like him
will retire. Right now anyone can be a tax preparer.
I assume there will be some confusion as to the titles. Only the new licensees
will be known as Registered Tax Preparers. EAs, CPAs, and attorneys will
keep their current titles even if the work they do is substantially tax
preparation.
Congress comes up with some real winners.
See You Soon
I hope you had a wonderful year.
I look forward to seeing you. Thank you for trusting me to prepare your
return.
I will gladly accept new clients recommended by you.
THANKS
Written by Joyce Ragels EA What is an EA? Enrolled Agent. I
passed a two day exam given by the IRS covering all levels of taxation
concerning individuals, partnerships, corporations, estates, and ethics. EAs
are the ONLY Federally licensed professional tax advocates. I can work in
any state without further credentials or certification. A few states require
licensing, Arizona does not. Mandatory continuing education of 72 hours is
required per three year license cycle.
Email jragels@gmail.com
Office Hours
I will open my office for tax preparation on January 16, Monday through
Saturday from 9 to 5. I no longer work evenings. Should you have all your
material sooner, just email me or give me a call.
Website
This is still a work in progress... Maybe it will always be. :) I will post this
newsletter and information forms.
http://www.jragels.com
Children
Nothing is cut in stone with the exception of children. I will always request
that you not bring your children for your appointment. They get bored and I
have no way to entertain them and do not care to do so while working on your
tax returns.
Appointments
I am not going to preschedule appointments. When you get your W-2s and
other paperwork, just email me or give me a call and I’ll get you in ASAP.
I am not going to do any tax prep after April 17. I am semi retired and
just want to do other things like travel and quilt between April and
December. So, if this is a problem for you, maybe it is time to find a new
tax preparer. Sorry, folks, but unless there is a serious illness or a death in
the family, there will be no extensions. My office will still be open year round
for advice or to respond to IRS letters.
Engagement Letter
This year I will be using an engagement letter for all clients. This
engagement letter will replace the verbal agreement we have always had. You
furnished me with info and I prepared your federal and state tax returns and
gave you copies. For that you paid me a fee.
It has been normal in the business to have a written contract for quite a few
years. I just resisted. I find it very unsettling that this has become
necessary.
You will find an engagement letter attached to this newsletter. Sign it and
date it and bring it to me with your other paperwork. I will make you a copy
that contains all the signatures and include it with the copy of your return.
Highlights for 2011 Returns
Landlords do not need to issue 1099s this year. That starts next year. So
keep track of any rental expenses you pay to an individual that is more than $
600. That is for the plumber, electrician, roofer, landscaper, etc. Any
work means any work that totals more than $ 600 for the year paid to one
person or company. Landlords and Sole Proprietors will be asked a new
question on the return. Were you required to file a 1099? Did you file the
1099? You can guess what might happen depending on those answers.
New Capital Gains Form - There is a new form for capital gains this year,
Form 8949. Some of your 1099s may include additional information. Brokers
are now being required to furnish more info.
Foreign Interest - Form 8938 will be required to be filled out and attached to
your return if you have any interest in a foreign country. This does not
include earnings from investments funds.
Use Tax - A use tax is imposed when you purchase an item out of state that
you will be using in the state in which you reside. Nothing new. What is new
is the aggressive way this is being addressed. During an audit, for such a
violation there will be a penalty. They are talking a higher penalty for
business property. Just a heads up. The states are hungry.
New Title This Year
Enrolled Agents, like myself, have been licensed by the Department of
Treasury for years starting shortly after the Civil War. CPAs and Attorneys
are licensed by the state where they practice.
A few states began licensing tax preparers several years ago, but most
income tax preparers are not now and have never been licensed by any agency
or state.
Testing is now mandatory to prove a paid preparer has minimum tax knowledge
requirements. I will be exempt from the testing because I have
already proven my tax knowledge by passing a two day EA exam given by the
IRS.
Beginning this year people who take and pass this test will become Registered
Tax Preparers. You must be either an EA, CPA, attorney, or a Registered
Tax Preparer in order to electronically file tax returns next year.
I have been wanting licensing to come to this profession for many years. Any
person who preparers a tax return should have to pass such an exam. There
is more to know than what comes is a software box. Case in point, there is a
tax preparer I fired for his lack of knowledge that has been writing returns
for over 25 years. With this testing requirement maybe he and those like him
will retire. Right now anyone can be a tax preparer.
I assume there will be some confusion as to the titles. Only the new licensees
will be known as Registered Tax Preparers. EAs, CPAs, and attorneys will
keep their current titles even if the work they do is substantially tax
preparation.
Congress comes up with some real winners.
See You Soon
I hope you had a wonderful year.
I look forward to seeing you. Thank you for trusting me to prepare your
return.
I will gladly accept new clients recommended by you.
THANKS
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