SAC Forms New Professional Alliance

Spiegel Accountancy Corp. announced today it has formed a professional alliance with Bedford Cost Segregation to assist its mortgage lending clients in applying research and development tax credits as a beneficial tax strategy.

While the R&D tax credit has been around since 1981, it was recently made permanent and the incentives were expanded upon to increase opportunities for those who develop “internal-use”  software, which broadens the types of businesses the credit may be applicable for. Now, certain mortgage lenders may benefit from this tax credit.

“We have partnered with the best, Bedford, to help our clients determine their eligibility for these incentives,” stated Jeff Spiegel, CPA, Principal, at Spiegel Accountancy Corp.

The R&D tax credit was designed to encourage economic stimulation and is an incentive for businesses of all sizes to invest in research and development activities and increase technological growth and competitiveness. The U.S. federal tax law provides a benefit up to 20% in the form of a non-refundable tax credit for mortgage companies that engage in qualified research and development activities. The credit, if used, can create immediate cash flow by reducing tax liability dollar for dollar. Mortgage companies that create new or improved products, processes or select technologies have the potential to take advantage of the credit.

Greg Bryant, Managing Partner at Bedford Cost Segregation said, “We’re excited about our partnership with Spiegel Accountancy Corp. and the wealth of opportunities our collaboration offers mortgage lenders.”

About Bedford Cost Segmentation

Bedford is an independent professional services firm specializing in cost segregation and innovative tax and energy solutions for the commercial real estate industry. Its tax team consists of seasoned professionals, who are well versed in the various aspects of tax law pertaining to depreciation, capitalization and expense provisions. More information can be found at https://www.bedfordteam.com/.

2017 Tax Rate Schedule

Please click here to view the 2017 Tax Rate Schedule.Created: February 10, 2016

Head of Household Status

The FTB has made it easier for taxpayers to claim head of household filing status. Beginning with the 2015 tax year, taxpayers claiming head of household filing status must complete and attach form FTB 3532, Head of Household Filing Status Schedule, to their tax returns. The new schedule helps taxpayers determine if they qualify for the filing status at the time of filing their returns, simplifies and reduces the questions asked, and assists taxpayers in completing the form correctly. The new schedule will also substantially reduce the volume of audit letters the FTB sends.

Created: February 10, 2016

Enhanced MyFTB

The FTB has launched its enhanced MyFTB online service, which allows taxpayers, businesses representatives, and tax preparers to view account information, communicate with the FTB, and use new self service tools. If you haven’t registered for your own MyFTB, click here to register.

As an individual, you can use MyFTB to access:
• Account information
• View account balance and tax year details.
• View estimated payments and credits before filing a return.
• View payment history.
• View a list and images of tax returns.
• View a list and images of notices and correspondence.
• View and update contact information.
• View proposed assessments.
• View California wage and withholding information.
• View FTB-issued 1099 information.
• View a list of authorized representatives (tax preparer or a tax preparer with a power of attorney) and manage who can access your account.
• View a list of activities that occurred on your account, such as the last time you or your authorized representative accessed your account.

Online services the FTB provides:
•Calculate a balance due for a date in the future.
• File a power of attorney (POA).
• File a nonresident withholding waiver request.
• Protest a proposed assessment.

Ways to communicate with the FTB:
• Chat with an FTB representative about confidential matters.
• Send a secure message with attachments to FTB.
• Choose to receive an email when we send you a notice or correspondence.

Created: February 10, 2016

2017 Mileage Rates

The Internal Revenue Service issued the 2017 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 53.5 cents per mile for business miles driven, down from 54 cents for 2016
  • 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016
  • 14 cents per mile driven in service of charitable organizations

The business mileage rate decreased half a cent per mile and the medical and moving expense rates each dropped 2 cents per mile from 2016. The charitable rate is set by statute and remains unchanged.

Created: February 10, 2016

IRS Scams

REMEMBER, the IRS always initiates contact via U.S. mail. Therefore, if you receive an unexpected phone call or email and have not had any prior contact with the IRS, immediately HANG UP the phone and DO NOT RESPOND or click on any links included in an email. If it is a phone call, do not engage the caller even if you know it is a scam, and here’s why…

Thieves and their scamming techniques are very clever. They take advantage of a taxpayer’s fear of the IRS to persuade their potential victim that a significant problem truly exists. Oftentimes, they will have your personal information in advance of calling or emailing such as the last four digits of your Social Security number, current or past addresses, name of your spouse and name(s) of your current employer(s) in an effort to convince you that their phone call or email is legitimate. Oftentimes, thieves manipulate caller ID to show a call from the “IRS” with a toll-free number and the caller will give you a bogus name and IRS badge number. Do not correct any erroneous personal information that the caller recites and do not give them your date of birth. Be smart by NOT “playing along” with their scheme. You may find yourself doubting the situation and divulging information that the thief will further use to influence the conversation and wreak havoc on your finances and credit.

Keep in mind the following about the IRS:
• The IRS will never ask for payment information over the phone. EVER. This includes credit card, debit card, prepaid card or banking account information.
• The IRS will not ever demand or insist upon a certain payment method to satisfy any tax payments due.
• The IRS never requests payment over the phone.
• The IRS does not pursue payment action immediately after a phone conversation. Any action to be taken by the IRS will be sent via written notification via U.S. mail prior to the enforcement, such as liens or levies.

Commons tricks of the scammers:
• Scammers may sometimes send an email following a phone call in an attempt to substantiate the validity of their phone call with the victim.
• Scammers will make it appear they are calling from the IRS by initiating background noises to make it appear they are operating from a bona fide call center.
• Scammers will make threats about potential jail time or revocation of a driver’s license. Their threats will intensify with callbacks posing as local law enforcement or the DMV, and their manipulation of caller ID will make it appear as such.

BEST PRACTICE…If you receive a phone call or email from a person claiming to be an agent or representative of the IRS, under NO circumstances should you release any personal information or give money. HANG UP and DO NOT RESPOND!

Created: February 10, 2016