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IRS SYSTEM DOWN

Ten Forty + Quality Tax Preparation & Financial Services 281-397-7777 Fax 281-397-7443 Tax Tips February 4, 2016 - IRS E-File System Outage (updated as of 7:30am) As of 7:30am, the IRS is still experiencing a computer outage. Remember that during this period you should continue filing returns with your tax software company. Your software company will hold the returns and submit them to the IRS as soon as IRS systems become operational. The IRS issued the following statement the evening of the February 3: The IRS experienced a hardware failure this afternoon affecting a number of tax processing systems, which are currently unavailable. A number of our systems are not currently operating, including our modernized e-file system and a number of other related systems. The IRS is currently in the process of making repairs and working to restore normal operations as soon as possible. Some of the systems will remain unavailable until tomorrow. The IRS remains in close contact with e-file software transmitters and the tax community during this period. A number of taxpayer and tax practitioner tools will be unavailable during this period. IRS.gov remains available, although a number of the services on the site are not, including Where’s My Refund. Taxpayers can continue to prepare and file their tax returns as they normally would. Taxpayers can continue to send their tax returns to their e-file provider; these companies will hold the tax returns until the IRS resumes accepting electronic tax returns. Taxpayers who have already filed their tax returns do not need to take any additional action. The IRS is still assessing the scope of the outage. At this time, the IRS does not anticipate major refund disruptions; we continue to expect that 9 out of 10 taxpayers will receive their refunds within 21 days. Please call us if you have any questions. Tax season is here. Go to www.tenfortyplus.com and complete your online organizer (under forms and documents). Make your appointment using our online appointment system. Call 281-397-7777 and get a user id with password set up so you can send us all your information through our online secure portal and do your taxes from the comfort of your home or office or come see us at our office. 1040 + Quality Tax Preparation & Financial Services Joseph C Becker www.tenfortyplus.com 281-397-7777, Fax 281-397-7443 joeb@tenfortyplus.com Contact Us There are many events that occur during the year that can affect your tax situation. Preparation of your tax return involves summarizing transactions and events that occurred during the prior year. In most situations, treatment is firmly established at the time the transaction occurs. However, negative tax effects can be avoided by proper planning. Please contact us in advance if you have questions about the tax effects of a transaction or event, including the following: • Pension or IRA distributions. • Retirement. • Significant change in income or • Notice from IRS or other deductions. Revenue department. • Job change. • Divorce or separation. • Marriage. • Self-employment. • Attainment of age 59½ or 70½. • Charitable contributions • Sale or purchase of a business property in excess of $5,000. • Sale or purchase of a residence or other real estate.

Capitalization of Assets Policy

Ten Forty + Quality Tax Preparation & Financial Services 281-397-7777 Fax 281-397-7443 Tax Tips Is your capitalization policy up to date? It's January — time to update your capitalization policy! A recent IRS notice increased the safe harbor amount for deducting tangible property expenses currently, starting January 1. That means you'll need to review the written policy you use to set a threshold for which qualifying costs you'll record as assets and which you'll charge to expense. As you may remember, the "repair regulations" became effective in January 2014. This guidance from the IRS on the capitalization and repair of assets applies to all businesses, including sole proprietorships, rentals, and farms. The guidance explains the federal income tax treatment of expenditures you make for materials and supplies, repairs and maintenance, and business property you buy, produce, or improve. In general, you're required to capitalize these items. However, the regulations provide a de minimis safe harbor for expensing certain costs. The amount of the safe harbor depends on the type of financial statement you have prepared. For instance, if you have an applicable financial statement, the safe harbor is $5,000. (An example of an applicable financial statement is a certified audited statement with a report by an independent CPA that you use for credit or reporting purposes.) If your business does not have an applicable financial statement, the de minimis safe harbor was originally set at $500. Beginning January 1, 2016, the safe harbor is $2,500 per invoice or item with a supporting invoice. Please give us a call to discuss how this change to the capitalization and repair regulations will affect your business and what you need to do to update your accounting policy. Tax season is here. Go to www.tenfortyplus.com and complete your online organizer (under forms and documents). Make your appointment using our online appointment system. Call 281-397-7777 and get a user id with password set up so you can send us all your information through our online secure portal and do your taxes from the comfort of your home or office or come see us at our office. 1040 + Quality Tax Preparation & Financial Services Joseph C Becker www.tenfortyplus.com 281-397-7777, Fax 281-397-7443 joeb@tenfortyplus.com Contact Us There are many events that occur during the year that can affect your tax situation. Preparation of your tax return involves summarizing transactions and events that occurred during the prior year. In most situations, treatment is firmly established at the time the transaction occurs. However, negative tax effects can be avoided by proper planning. Please contact us in advance if you have questions about the tax effects of a transaction or event, including the following: • Pension or IRA distributions. • Retirement. • Significant change in income or • Notice from IRS or other deductions. Revenue department. • Job change. • Divorce or separation. • Marriage. • Self-employment. • Attainment of age 59½ or 70½. • Charitable contributions • Sale or purchase of a business property in excess of $5,000. • Sale or purchase of a residence or other real estate.

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