2018 Annual Volunteer Day

This year Wheeler staff in San Jose chose to spend volunteer day working with the Second Harvest Food Bank (https://www.shfb.org/) to help feed families in our community and beyond. Second Harvest provides food to more than a quarter of a million people every month. That is 1 in 10 people in Santa Clara and San Mateo who receive food from Second Harvest! Feeding that many requires an enormous commitment from volunteers to sort, pack, and prepare quality produce, perishables, and non-perishable food for distribution. Our Wheeler team of 28 sorted and packed 19,000 lbs. of broccoli into 12 lb. boxes to deliver other partner agencies. Those smaller organizations distribute fresh food directly to families or prepare meals to serve a diverse population of families and individuals who might not otherwise have access to food services in their neighborhoods. Manager, Katie Vachon, at home in Massachusetts, chose to volunteer for the Merrimack Valley Food Bank, who provides a similar service in that area.

We recognize how fortunate we are at Wheeler and are committed to regularly providing service to those in our community who are less fortunate. Volunteer Day is always a gratifying event that is appreciated by everyone who participates.

 

Offshore Voluntary Disclosure Program to End this Year

U.S. taxpayers with undisclosed foreign financial assets should take advantage of the Offshore Voluntary Disclosure Program (OVDP) before the program closes on September 28, 2018. The planned end of the current OVDP also reflects advances in third-party reporting and increased awareness of U.S. taxpayers of their offshore tax and reporting obligations.

More than 56,000 taxpayers have used one of the programs to voluntarily comply since the OVDP’s initial launch in 2009, paying a total of $11.1 billion in back taxes, interest, and penalties. The number of taxpayer disclosures under the OVDP peaked in 2011 when about 18,000 people came forward; however, the number steadily declined through the years, falling to only 600 disclosures in 2017.

The current OVDP began in 2014 and is a modified version of the OVDP launched in 2012, which followed voluntary programs offered in 2011 and 2009. The programs have enabled U.S. taxpayers to voluntarily resolve past non-compliance related to unreported foreign financial assets and failure to file foreign information returns.Continue reading

What to do if you get a Letter from the IRS

Each year, the IRS mails millions of notices and letters to taxpayers for a variety of reasons. If you receive correspondence from the IRS here’s what to do:

Don’t panic. You can usually deal with a notice simply by responding to it. Most IRS notices are about federal tax returns or tax accounts.

Each notice has specific instructions, so read your notice carefully because it will tell you what you need to do.Continue reading

Filing an Amended Return

What should you do if you already filed your federal tax return and then discover a mistake? First of all, don’t worry. In most cases, all you have to do is file an amended tax return. But before you do that, here is what you should be aware of when filing an amended tax return.

Taxpayers should use Form 1040X, Amended U.S. Individual Income Tax Return, to file an amended (corrected) tax return.

An amended return cannot be e-filed. You must file the corrected tax return on paper. If you need to file another schedule or form, don’t forget to attach it to the amended return.Continue reading

Tax Consequences of Crowdfunding

Crowdfunding websites such as Kickstarter, GoFundMe, Indiegogo, and Lending Club have become increasingly popular for both individual fundraising and small business owners looking for start-up capital or funding for creative ventures. The upside is that it’s often possible to raise the cash you need but the downside is that the IRS considers that money taxable income. Here’s what you need to know.

What is Crowdfunding?

Crowdfunding is the practice of funding a project by gathering online contributions from a large group of backers. Crowdfunding was initially used by musicians, filmmakers, and other creative types to raise small sums of money for projects that were unlikely to turn a profit. Now it is used to fund a variety of projects, events, and products and in some cases, has become an alternative to venture capital.

There are three types of crowdfunding: donation-based, reward-based, and equity-based. Donation-based crowdfunding is when people donate to a cause, project, or event. GoFundMe is the most well-known example of donation-based crowdfunding with pages typically set up by a friend or family member (“the agent”) such as to help someone (“the beneficiary”) pay for medical expenses, tuition, or natural disaster recovery.

Reward-based crowdfunding involves an exchange of goods and services for a monetary donation, whereas, in equity-based crowdfunding, donors receive equity for their contribution.Continue reading

Saving for Education: 529 Plans

Many parents are looking for ways to save for their child’s education and a 529 Plan is an excellent way to do so. Even better, is that thanks to the passage of tax reform legislation in 2017, 529 plans are now available to parents wishing to save for their child’s K-12 education as well as college or vocational school.

You may open a Section 529 plan in any state, and there are no income restrictions for the individual opening the account. Contributions, however, must be in cash and the total amount must not be more than is reasonably needed for higher education (as determined initially by the state). There may also be a minimum investment required to open the account, typically, $25 or $50.

Each 529 Plan has a Designated Beneficiary (the future student) and an Account Owner. The account owner may be a parent or another person and typically is the principal contributor to the program. The account owner is also entitled to choose (as well as change) the designated beneficiary.Continue reading

Employee Spotlight – Marlena De Santiago

Marlena De Santiago, Administrative Assistant, has been chosen as Employee of the Quarter. Marlena joined our firm a little over a year ago. She is a great addition to our team. We really enjoy her upbeat and can do attitude at the front desk. Congratulations to Marlena and thank you for all your hard work!

Employee Spotlight – Nick Satterfield

Nick Satterfield, CPA, and Senior Accountant, has been chosen as Employee of the Quarter. Nick was hired as a Summer intern at Wheeler in June 2014, and upon graduation joined us as a full-time employee in April 2015. This year Nick completed the licensing process and became a CPA. Nick has become a well-rounded accountant with experience in our Audit, Tax and Accounting Services departments. Congratulations to Nick!

 

Health Care Tax Credit Relief for Small Employers

Tax relief is available for certain small employers who provide health coverage to their employees and wish to claim the Small Business Health Care Tax Credit for 2017 and later years.

To qualify for the credit small employers must provide employees with a qualified health plan from a Small Business Health Options Program (SHOP) Marketplace and may only claim the credit for two consecutive years.Continue reading

Home Equity Loan Interest Still Deductible

The Tax Cuts and Jobs Act has resulted in questions from taxpayers about many tax provisions including whether interest paid on home equity loans is still deductible. The good news is that despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labeled.Continue reading