Jaycie Wakefield Joins Archer Group

by Archer Admin 2. March 2010 04:39

Jaycie Wakefield joins Archer Group as our newest Front Desk Coordinator. Jaycie graduated from Western Washington University with her Bachelor degree in fine arts.

Jaycie's duties include front desk customer service, telephone direction, data entry and other various clerical duties. Her helpful attitude and helping hand is a key factor to our front desk.

Welcome Jaycie!

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Categories: Personnel | team | Press release

Clint McDermott Joins Archer Group

by Archer Admin 2. March 2010 04:35

Clint McDermott, a graduate from Western Washington University's Accounting program has joined Archer Group as a Tax Reviewer.

Clint has become a part of the team after many years' experience of tax review, research and tax preparation. His attention to detail and strong work ethic make him a valuable part of our team and an asset to our clients.

Welcome Clint!

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Categories: Personnel | Taxes | team | Press release

April 15 is coming up fast

by Archer Admin 1. February 2010 03:43

Tax season is upon us! Our team is dilligently working on our valued client's tax returns.

If you are a current client and you have not turned in your tax information, please do so ASAP. The sooner you get your information to us, the quicker you will have your return.

If you are not a client, give us a call or email and experience first hand our stellar customer service and attention to detail.

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Alert on Census Workers

by Archer Admin 7. January 2010 06:53

This useful information is being passed on from The Bank of the Pacific

Warning: 2010 Census cautions from the Better Business Bureau; be cautious about giving information to Census workers

With the US Census process beginning, the Better Business Bureay (BBB) advises people to be cooperative but cautious so as not to become a victim of fraud or identity theft. The first phase of the 2010 US Census is under way as workers have begun verifying the addresses of households across the country.

Eventually more than 140,000 US Census workers will count every person in the United States and gather information about every person living at each address including name, age, gender, race and other relevant data.

The big question is: How do you tell the difference between a US Census worker and an con artis? BBB offers the following advice:

If a US Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag and a confidentiality notice. ASK TO SEE THEIR IDENTIFICATION AND THEIR BADGE BEFORE ANSWERING THEIR QUESTIONS; however, you should never invite anyone you don't know into your home.

At this time, Census workers are only knocking on doors to verify address information.

DO NOT GIVE YOUR SOCIAL SECURITY NUMBER, CREDIT CARD OR BANKING INFORMATION TO ANYONE, EVEN IF THEY CLAIM THEY NEED IT FOR THE US CENSUS.

REMEMBER: No matter what they ask, you really only need to tell them how many people live at your address.

While the Census Bureau may ask for basic financial information such as salary range, you do not have to answer anything at all about your financial situation. THE CENSUS BUREAU WILL NOT ASK FOR YOUR SOCIAL SECURITY NUMBER, BANK ACCOUNT OR CREDIT CARD NUMBERS; NOR WILL EMPLOYEES SOLICIT DONATIONS. Anyone asking for that kind of information is NOT with the Census Bureau.

The Census Bureau has decided not to work with Acorn on gathering this information. No Acorn worker should approach you saying he/she is with the Census Bureau.

Eventually Census workers may contact you by telephone, mail or in person at home; however, the Census Bureau will not contact you by email, so be on the lookout for email scams impersonating the Census.

Never click on a link or open any attachments in an email that are supposedly from the US Census Bureau.

For more information on avoiding identity theft and fraud, visit www.bbb.org

 

HAPPY NEW YEAR!

by Archer Admin 1. January 2010 07:18

Welcome to 2010! A new year means new beginnings and the start of tax season. Tax organizers will be mailed to our current clients in a few days. Please fill them out and get your information in to us as soon as possible. Remember: the sooner you bring in your information, the sooner your return will be processed!

If you are not yet a client, please contact us and inquire about receiving your tax planner.

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Categories: Notifications

Home Buyer Tax Credits - UPDATE

by Archer Admin 15. December 2009 07:46

The Worker, Homeownership and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

FOR SALES OCCURRING AFTER NOVEMBER 6, 2009, THE ACT ESTABLISHES INCOME LIMITS OF $125,000 FOR SINGLE TAXPAYERS AND $225,000 FOR MARRIED COUPLES FILING JOINT RETURNS.

The income limits for sales occurring after January 1, 2009 and on or before November 6, 2009 remain at $75,000 for single taxpayers and $150,000 for married taxpayer filing joint returns.

2009 First-Time Home Buyer Tax Credit Facts

by Archer Admin 1. October 2009 07:23

Who is Eligible?

The $8,000 tax credit is available for first-time home buyers only. The law defines 'first-time home buyer' as a buyer who has not owned a principal residence during the three-year period prior to the purchase. All US citizens who file taxes are eligible to participate in the program.

Payback Provisions:

The tax credit is a true credit. IT DOES NOT HAVE TO BE REPAID. The only repayment requirement is if the homeowner sold the home within three years after the purchase.

Income Limits:

Home buyers who file as single or head-of-household taxpayers can claim the full $8,000 credit if their modified adjusted gross income (MAGI) is less than $75,000. For married couples filing a joint return, the income limit doubles to $150,000. Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first-time home buyer tax credit. Married couples who earn between $150,000 and $170,000 are eligible to receive a partial first-time home buyer tax credit. The credit is not available for singe taxpayers whose MAGI is greater than $95,000 and married couples with a MAGI that exceeds $17,000.

Effective Dates for the Tax Credit:

First-time home buyers would receive an $8,000 tax credit for the purchase of any home on or after January 1, 2009 and before December 1, 2009. To qualify, you must actually close on the sale of the home during this period.

Tax Credit is Refundable:

A refundable credit means that if you pay less than $8,000 in federal income taxes, then the government will write you a check for the difference. For example, if you owe $5,000 in federal income taxes, you would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 tax refund from the government, your refund would grow to $9,000 ($1,000 plus $8,000 from the home buyer tax credit). Buyers can take the tax credit on their 2008 or 2009 income tax return.

Types of HOmes that Qualify for the Tax Credit:

All homes, whether single-family, townhomes or condominiums apartments will qualify, provided that the home will be used as a principal residence adn the buyer has not owned a principal residence in the prior three years. This also includes newly-constructed homes.

For more details on the tax credit, visit www.federalhousingtaxcredit.com

 

Ryan McDonald Joins Archer Group

by Archer Admin 1. August 2009 03:46

Ryan McDonald, an accounting graduate of Western Washington University joined Archer Group as a full-time staff accountant after interning during his last year of schooling.

Ryan applies his abilities and schooling toward tax preparation, accounting services, financial statements, and balance sheets and audits for our clients. Ryan's excellent grasp of accounting makes him an outstanding resource for our clients.

Welcome aboard Ryan!

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Categories: Personnel | team | Press release

Retirement Ideas for Small Businesses

by Administrator 15. January 2009 03:44

Every forward-looking U.S. worker hopes to set side funds to plan for retirement. However, finding extra cash to save may be difficult for the average worker, especially those employed in small businesses where working capital is not as plentiful. Additionally, small business owners ae often not able or willing to provide assistance with employees' retirement savings. To assist employees in their retirement saving efforts, as well as encourage employers to adopt retirement plans, the U.S. Internal Revenue Code provides a variety of tax-advantageous vehicles through which employees may save funds for retirement. In addition, employers can offer retirement plans for employees that, if they meet certain qualifications under the Tax Code, create tax advantages for both parties. However, with any qualified retirement savings plan for which the government affords tax breaks, there are  complex requirements under the tax code and the Employee Retirement Income Security Act of 1997 (ERISA), for maintaining the plans.

Types of Benefit Plans: Three general areas relate to employee benefit plans for retirement

1. Employee Welfare Benefit plans: These are not directly relevant because the plans do not provide immediate retirement benefits to employees; rather they provide other important benefits such as severance pay, supplemental unemployment benefits, health insurance, life and disability insurance, paid vacation and other fringe benefits. Welfare benefit plans assist employees indirectly in accumulating funds for retirement by helping employees to avoid draining retirement savings because of more immediate cash needs caused by unemployment, healthcare costs, etc.

2. Employer compensation and payroll practices: Employers can simply increase employee salaries and advise employees to contribute the extra cash to their savings accounts. Although increasing salaries in the hope employees will save the extra compensation may be the easiest way for employers to help with retirement, this technique does not make use of the tax advantages for qualified retirement plans offered by the Code, nor does it impress upon the employees its value as an 'additional employee benefit.'

3. Retirement Plans: These fall under two categories, 'qualified' and 'nonqualified' plans.

A nonqualified plan is generally a retirement plan that fails to meet the requirements of Code Section 401(a) for qualified plans. Even a nonqualified plan can provide benefits such as the deferral of income tax recognition on contributions, under certain circumstances, which provides employees the benefit of time-value of money savings. Nonqualified plans that meet the requirements under Code Sec. 409A are most often used to provide deferred compensation arrangements to corporate executives and key employees. These plans are not heavily regulated, require little administration, allow unlimited contributions and have tax advantages that are slight compared to those of qualified plans. Under the code, income tax is deferred on the compensation paid into the plan, but only if there is a 'substantial risk' that the employee may forfeit his or her rights to the funds or if the plan meets certain requirements regarding distributions, acceleration of benefits, elections, etc.

A qualified retirement plan is the most tax-advantageous type of plan for businesses. These plans are more heavily regulated than nonqualified plans and have many requirements. For example, plan assets must be held in a qualified trust or custodial account and employers must offer benefits under qualified plans on a nondiscriminatory basis (with respect to salary level) to all rank-and-file employees, not only to highly paid executives and other key employees. Plans are also required to contain 'antialienation' provisions that state that the plan benefits cannot be assigned or alienated. The combination of tax advantages, plus variety and flexibility of plan types makes qualified retirement plans preferable for a majority of small businesses.

 

Limited Liability Companies

by Administrator 15. January 2009 03:30
The limited liability company is popular among the business community, especially closely held companies and family-owned businesses. An estimated 1.2 million LLCs operate throughout the United States today. Considered a hybrid entity, the LLC appeals to many businesses because it combines the positive corporate characteristic of limited liability, which is afforded to all LLC members, with the passthrough tax treatment of partnerships. In addition to numerous tax benefits, LLCs offer owners substantial management and operational flexibility.
The formation and operation of LLCs are governed by state law; however, despite the popularity of LLCs and the fact that they originated in the United States more than 30 years ago, there is still no provision in the IRC specifically governing the federal tax treatment of LLCs. An LLC is not a federal tax entity but can elect how to be treated for federal tax purposes under the check-the-box regulations. The federal tax treatment of LLCs is governed by a patchwork of IRS guidance and regulations.
Following is a brief list of definitions and characteristics of Limited Liability Companies:
A Domestic LLC is a legal business entity created under state law. Like a corporation, members of the LLC are not personally liable for the debts and obligations of the company. At the same time, LLCs possess the passthrough characteristics of partnerships or sole proprietorships for federal income tax purposes. All income, profits, losses, credits and deductions pass through to LLC members according to the LLC's operating agreement and are reported on members' individual tax returns.
LLCs are generally formed by filing Articles of Formation or comparable state documents. Archer Legal Services is well versed in business start up, specializing in LLCs and the various forms of corporations. For more information on forming your LLC and/or the documentation required by the State of Washington, please contact us; we are happy to help make the process more smooth.

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