2011’s IRS Hot Buttons for Form 1040

As you begin preparing for your 2011 taxes, it’s important to be aware of the areas that are being scrutinized this year.

First, here’s a quick single-stop index of terms for you from Fairmark.com:

Form 1040 and Attachments

Form 1040	U.S. Individual Income Tax Return Form Instructions Use this form if you can't use Form 1040EZ or Form 1040A.
Schedule A Schedule B	Itemized Deductions Interest and Ordinary Dividends Form Instructions The IRS combines both forms in a single electronic file, and also combines the instructions for both forms in a (different) single electronic file. Schedule A: For more information see Your Itemized Deductions. Schedule B: Most taxpayers don't need this schedule unless they have $1,500 or more of interest income, or $1,500 or more of ordinary dividend income.
Schedule C	Profit or Loss from Business Form Instructions Use to report income and deductions from a sole proprietorship (a business or profession of your own). For more information see Your Business.
Schedule C-EZ	Net Profit from Business Form & Instructions You can use this easier version of Schedule C if you don't have a loss, have business expenses of $2,500 or less, and meet other requirements set forth at the top of this form.
Schedule E	Supplemental Income and Loss Form Instructions Use to report income and deductions from rental real estate, royalties, partnerships, S corporations, estates and trusts, and residual interests in REMICs.
Schedule EIC	Earned Income Credit Qualifying Child Information Form & Instructions File this schedule if you claim the earned income credit and you have one or more qualifying children. For more details see Pub 596 below.

 

Form 1040 Red Flags

Inconsistencies or incomplete information in the following areas are hot buttons on Schedules A, C, and E that are likely to earn you a closer look, either from your tax professional or from the IRS:

Schedule A

• Unreimbursed employee business expenses claimed on Form 2106;
• Mileage;
• Travel, meals, and entertainment expenses that require documentation; and
• Receipts for cash charitable contributions and adequate documentation of noncash contributions.

Schedule C

• Gross receipts not fully reported;
• Expenses must be ordinary and necessary; and
• Expenses must be paid or incurred during the taxable year.

Schedule E

• Rental income and expenses not property reported;
• Depreciation not properly calculated; and
• Passive activity and basis limitations not properly calculated.

It’s never too early to start preparing for the April 15^th deadline. When do you usually get started with your taxes?

BCWS would like to connect with you!

 

Please come join us at:

Our BCWS Blog or Our Website

On Facebook

BCWS’s Company Profile on LinkedIn
On Twitter

QR Codes: A How-To Guide For Business Use

Are you capitalizing on the latest little bit of free Techie gadgetry that's all the rage? We’re talking about QR codes, which are one of the easiest (and cheapest) marketing tricks a business can take advantage of.

Click here for eight more low cost social media tips we posted a few weeks ago and sit back to bask in the warmth of a new piece of technology fun that doesn't cost a thing!

What is a QR Code?

QR stands for Quick Response and was created by the automotive industry to help track vehicles during the manufacturing process. A QR Code is a barcode that stores a web address of your choosing.

If you scan the one above, you'll go to our Facebook page where we just posted some fun photos from our Halloween costume competition. There are apps available in both the Android and the iPhone that let you scan a QR code to quickly go to a website.

Note: To scan the code, you’ll need an app like QR Scanner [iTunes link] for the iPhone and iPod touch, or ShopSavvy for Android devices.

Marketing uses for QR Codes:

·    QR Codes are being used at some grocery stores and restaurants to give you recipes and nutritional information about the food you're buying.

·    To give you access to coupons, both in-store and on the internet.

·    On business cards, signs and brochures. A simple little barcode allows you to give the info you need to on the card or sign and, with a single click, also help the person to visit the webpage of your choice.

·    On clothing labels (Macy's and other retailers are already using this) to tell you about that item and others you may like in the store.

·    On anything with packaging, to push people to a website, Facebook or review page.

Can I get a QR Code of my very own?

Of course! There are tons of free spots to generate a QR code. Bit.ly and Social Oomph are two of the easiest.

To use Bit.ly:

·    Visit bit.ly, write or paste in a URL address, click “Shorten,” and add .qr to the end of the generated bit.ly link (like so: http://bit.ly/tm90xj.qr).

·    Copy the modified link into a new browser window to view the QR code.

·    Once you see the code on your screen, you can print it out, send to your friends via e-mail, post on your blog, etc.

To use Social Oomph:

·    You need to sign up for a free account, whereas for Bit.ly, you could sign in with Twitter (but it still asks for your email address).

·    Once you're signed in, l00k at the left navigation bar - "Shorten URL" is the fourth choice from the top.

·    Click the Shorten URL shortcut and type or paste the address in to the "Long URL" box and click the Shorten button.

·    There's a box that says QR Code - copy the link out of there and follow all the same steps as above in the Bit.ly example.

From Wikipedia: Users with a camera phone equipped with the correct reader application can scan the image of the QR code to display text, contact information, connect to a wireless network, or open a web page in the telephone's browser. This act of linking from physical world objects is termed hardlinking or object hyperlinking. Click here for more details than you probably want on how to work QR Codes. :-)

UPDATE: In the last few weeks since we wrote this post, viruses have targeted QR Codes here and there. That doesn't mean they aren't safe but, just like email, watch where you click. More details here on how to avoid viruses.

Does this give you any new marketing ideas for your business marketing or advertising efforts? Are you already using QR Codes? What has your experience been?

BCWS would like to connect with you! Please come join us at:  

Our BCWS Blog or Our Website
On Facebook
BCWS’s Company Profile on LinkedIn
On Twitter