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Wednesday, July 23, 2014

Major Sales Tax changes coming!!

Last week I attended the "Arizona Forum for Improvement of Taxation" semi-annual conference.  (Now, don't all of you flood my phone with, "how do I join?" calls.)  It's hard to believe, but I do find taxation rather intriguing.  It's like watching a train wreck!  It's amazing how out of control it's gotten.


Back to the topic of sales tax changes.  AZ is making some major shifts that are scheduled to come on-line January 1, 2015.  From what I gleaned from the conference, AZ Dept of Revenue is still frantically trying to get all the policies, procedures and forms in place.  They are scheduled to send out notifications in the "fall" (sometime in October) regarding the changes.

The most over-arching change is that there will be no more city sales tax reports.  All the cities must comply, and all sales taxes will be paid directly to ADOR & from there distributed to the cities.

On the surface, this looks like a wonderful consolidation for taxpayers.  I would like to hope that is where this change will stop.

However, I have a sneaky suspicion, that I just want you to be aware of.  There are major debates going on in Congress currently regarding online sales tax & implementing a federal sales & use tax.  Here is an article that explains why.  Here is the website to sign up.  I think ADOR is getting aligned to join this streamlined process.  That's just my two cents worth. They didn't say anything officially, mostly because they have spent all year working on this consolidation project, but I don't think this possibility is too far distant.

I've debated whether or not this would be a good move in my head for a few years now, but I'd love to get others' thoughts on the topic!

Monday, July 14, 2014

Immigration Issues

I know a lot of articles have been written about this topic and it would be fool-hearty to offer a "simple" solution.  However, I'd like to share just a couple of perspectives that I have encountered just this week.  Hopefully, as we (as a society) tackle social issues, we will try to do so without political persuasions, but in an earnest effort to create a society in which compassion, justice and freedom prevail.

 Teachers and teaching runs in my blood, I have quite a few close family members deeply entrenched in the educational institutions.  A couple of them were comparing notes on recent "sweeps" that were done in their school neighborhoods.  During this time, the Maricopa County Sheriff's Department felt it necessary to "sweep" the streets.  They would canvas & stop parents walking their children to school to request proof of citizenship.  This scared some of the parents so much, that attendance dropped by more than half.  One family member said she only had eight children show up to class for about a week!  It's heart-breaking to see so many children being used as pawns by politicians and parents alike.

It's impossible to live in AZ, and not be influenced by this social issue.  Other family members have military background & have even worked on the Border Patrol.  They have a very different perspective, as they see the massive influx of people daily crossing the very porous Mexican border.  Also, since they are closely tied to the justice system, they see the corruption, greed, and disrespect for human dignity.  It's infuriating to see the unending sea of criminals and lack of justice on the border.

So what does all this have to do with small business?  Let me give you one last perspective to consider.  We see many small business owners struggling to conquer the american dream.  I don't use the word "conquer" lightly, it's a monumental task to learn all there is to know to make a small business succeed!  One of the main issues I help owners struggle with is being compliant with all the tax and licensing laws:  there are permits to obtain, professional licenses to maintain, sales and use taxes, income taxes, corporate taxes, and a myriad of payroll taxes.  There are many industries that seem to attract those less willing to stay compliant.  This makes it virtually impossible for those who want to be compliant to even compete!  I have seen a few that have built enough of an excellent reputation and a loyal client base, that have survived.  However, more than I'd like to count, either end up shutting their doors, or decide it's too hard to stay compliant, and just decide they have to operate illegally; and disappear from the government's radar.

There seems to be a big elephant in the room that many people like to talk about, but not many seem willing to do much about.  As we look at all the different perspectives, our American ingenuity can tackle this complex problem!  Let's make Arizona a place of compassion and freedom while enforcing the laws to keep us safe and prosperous!!

Monday, July 7, 2014

Is it too early to talk about year-end?



As I write this, it's currently over 100F outside, so why am I talking about year-end?  The summertime is an excellent opportunity to get caught up on your back-end office work.  For most service industries, summertime means a reduction in sales.

A great alternative to laying off staff or forcing vacation time is to do some deep-cleaning, mid-year planning! All those projects that you put off at the beginning of the year because you were too busy...now's a great time!  Here are a couple of suggestions to keep everyone busy during the slow time:


  • Have the sales team do quality reviews & referral requests - there's no better referral than a current customer!
  • Have the sales managers do one-on-one interview with the current sales staff to get suggestions on process improvements and marketing strategies/ideas.
  • Have the office staff review and catch up on all inventory control measures/AP, AR, bank & credit card reconciliations/research outstanding items over 60 days/preliminary budgets for next year & annualized financial statements - fun stuff!!
  • This is a great time of year to catch up on software training and industry data to keep at the top of your game! (Seriously, who wants to be outside right now??)



Before you know it, we'll be rolling into the busy season!  If there's anything we can do to help you make your 3rd and 4th quarters better than projected (or even projected), let us know! We offer free QuickBooks training and we are always looking for new suggestions for our free webinar series about all Small Business Topics!

We're here to help!
Trudy Hetzel
General Manager


Wednesday, July 2, 2014

Today the IRS released it's Sumertime Tax Tip 2014-01: What to do if you Get a Notice from the IRS.


#1 is Don't ignore it.  This is ALWAYS #1!  If you're afraid to talk to them, contact us & we can help you determine the severity of the situation.
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July 2, 2014

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Issue Number:    IRS Summertime Tax Tip 2014-01

Inside This Issue


What to do if You Get a Notice from the IRS
Each year the IRS mails millions of notices. Here’s what you should do if you receive a notice from the IRS:
1. Don’t ignore it. You can respond to most IRS notices quickly and easily. And it’s important that you reply promptly.
2. IRS notices usually deal with a specific issue about your tax return or tax account. For example, it may say the IRS has corrected an error on your tax return. Or it may ask you for more information.
3. Read it carefully and follow the instructions about what you need to do.
4. If it says that the IRS corrected your tax return, review the information in the notice and compare it to your tax return.
If you agree, you don’t need to reply unless a payment is due.
If you don’t agree, it’s important that you respond to the IRS. Write a letter that explains why you don’t agree. Make sure to include information and any documents you want the IRS to consider. Include the bottom tear-off portion of the notice with your letter. Mail your reply to the IRS at the address shown in the lower left part of the notice. Allow at least 30 days for a response from the IRS.
5. You can handle most notices without calling or visiting the IRS. If you do have questions, call the phone number in the upper right corner of the notice. Make sure you have a copy of your tax return and the notice with you when you call.
6. Keep copies of any notices you get from the IRS.
7. Don’t fall for phone and phishing email scams that use the IRS as a lure. The IRS first contacts people about unpaid taxes by mail – not by phone. The IRS does not contact taxpayers by email, text or social media about their tax return or tax account.
For more on this topic visit IRS.gov. Click on ‘Responding to a Notice’ at the bottom left of the home page. Also see Publication 594, The IRS Collection Process. You can get it on IRS.gov or call 800-TAX-FORM (800-829-3676) to get it by mail.

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