Tag: featured

Yes. Identity theft is a growing problem, and the start of the return filing season is one of the peak times for identity thieves filing fraudulent returns. Criminals file false returns early to get refunds and unsuspecting taxpayers are unaware their identities have been stolen until they file their returns. Individuals who believe they have been victims of identity theft should immediately alert their tax professional and the IRS. The IRS has a number of programs in place to assist victims of identity theft.

Identity theft

Identity theft has been the number one consumer complaint to the Federal Tax Commission for 13 consecutive years, and tax identity theft has been an increasing share of the FTC’s identity theft complaints. In 2010, tax identity theft accounted for 15 percent of the FTC’s identity theft complaints from consumers, while in 2011 it made up 24 percent of the overall identity theft complaints. In 2012, tax identity theft accounted for more than 43 percent of the identity theft complaints, making it the largest category of identity theft complaints. The IRS has reported similar growth in this troubling problem.

Identity theft occurs when a criminal uses the personal information of another to commit fraud or other crimes. Personal information includes an individual’s name, date of birth, Social Security number, bank account numbers, credit card numbers, personal identification numbers, and other identifying information.

In tax identity theft, a criminal typically uses a taxpayer’s identity to fraudulently file a tax return and claim a refund. The identity thief has obtained the taxpayer’s Social Security Number and other personal information. As mentioned, identity thieves attempt to get a refund early in the filing season. The taxpayer discovers that a false return has been filed when he or she files a genuine return.

IRS actions

The IRS has set up a special Identity Theft Protection Specialized Unit. These employees are the first responders in assisting taxpayers whose identities have been stolen. The IRS will take a report, and request that the victim complete a special form (IRS ID Theft Affidavit Form 14039). This special form requires the taxpayer to briefly describe the events giving rise to the identity theft. The taxpayer also must provide proof of his or her identity by submitting photocopies of identifying documents, such as a passport, driver’s license or other valid federal or state government-issued identification.

The IRS is assigning special identity protection personal identification numbers (IP PINs) to victims of identity theft to use when filing their returns. An IP PIN is a unique six-digit number and is assigned annually to victims of identity theft. During the 2014 filing season, the IRS reported that it expects to provide more than 1.2 million identity theft victims with an IP PIN, up from more than 770,000 in 2013.

Additionally, the IRS has overhauled its identity theft screening filters to spot suspected fraudulent returns before they are processed. After a suspected fraudulent return is flagged, the IRS will hold the return for further processing until the agency verifies it is a true return. If you receive a notice from the IRS, please contact our office immediately.

If you have any questions about protecting yourself from identity theft or the IRS’s activities to curb tax return identity theft, please contact our office.

IMPORTANT: This change applies to employers who pay individual health insurance policy premiums for employees or allow employees to pay those premiums pre-tax via payroll deduction. Employers who sponsor group health insurance policies are NOT affected by this rule.

Effective for plan years beginning on or after January 1, 2014, an employer can no longer reimburse or directly pay individual health insurance policy premiums on a pre-tax basis. Additionally, employees can no longer pay for their individual insurance premiums pre-tax via a cafeteria plan. This is not a change in tax law. A subtle rule in the Patient Protection and Affordable Care Act (PPACA) is driving the change.

To summarize the change:

• If employers pay these types of premiums directly or reimburse employees for individual insurance policy premiums, employers will need to include that payment in the employees’ compensation as fully taxable wages.
• If employees have the cost of their individual policy premium withheld from their paychecks, that premium will need to be a post-tax deduction — not a pre-tax deduction.
• If so far in 2014 any individual health insurance policy premium has been withheld pre-tax, modifications should be made in the payroll system to tax those amounts as soon as possible.

Nothing in this rule affects group health insurance.

Please contact Matthew Folz, CPA, Michael Vogel, CPA, or Michele Graham, CPA if you would like to discuss this in more detail or if you need any assistance in determining next steps, if this change impacts your current practices.

At this time of year, families gather to celebrate their traditions of faith and community. This year, Rosalind Robinson will celebrate in her new home recently completed through Habitat for Humanity of Evansville. Ground was broken on the home in August, and Robinson received the keys to her new home during a dedication ceremony held on November 23, 2013 after completing 300 hours of sweat equity.

Read more about Rosalind Robinson and the dedication ceremony.

The project began as the idea of Harding, Shymanski & Company’s retiring President & CEO Steve Titzer. He had witnessed the positive impact of Habitat homes as he served on their board of directors for 22 years. As his April 15, 2013 retirement date approached, he did something unexpected, but not uncharacteristic. Rather than host the traditional retirement party, he asked the firm to become the Foundation Sponsor of a Habitat for Humanity home and asked friends and family to redirect any intended giving to that project.

Read more about Building Milestones in the November/December 2013 issue of Evansville Living and “Giving Back” in the December 2013 issue of The Evansville Business Journal.

Employers are required to communicate the timing for open enrollment in the market place exchanges by October 1, 2013.

The Patient Protection and Affordable Care Act (Affordable Care Act) requires all employers to communicate to employees about the upcoming open enrollment period for health insurance. All employers must notify employees that open enrollment for the Marketplace Exchanges begins October 1st in order to meet the January 1, 2014 effective date. Everyone in the United States must have insurance in some form on January 1, 2014. If an individual elects not have insurance, they will be subject to a non-deductible excise tax beginning in 2014.

Even if you do not provide insurance for your employees, the U.S. Department of Labor requires that you communicate directly to your employees and offers these suggestions on how to deliver the notification:

• Attach a notice to employee paychecks.

• Personally hand out the notification to all employees. Simply posting or leaving the notices in a break room or other location for employees to pick up will not satisfy this method.

• Send notices to employees through First Class U.S. Mail.

• Deliver notices through e-mail if all employees have company e-mail addresses.

• Include notices in employee renewal or new hire packets.

For guidance on what to communicate to your employees, contact your insurance broker/agent or see the U.S. Department of Labor website.

What does this mean?

The Affordable Care Act is creating a new Public Marketplace or Exchange that will offer health insurance options for individuals and employers with fewer than 50 employees. Essentially, all individuals must have insurance, and they can choose between insurance provided by their employers or from plans offered in the Public Marketplace. Here’s a breakdown of the sources for insurance, who runs them, and who can participate.

For questions about the Affordable Care Act open enrollment, contact your insurance broker/agent or see the U.S. Department of Labor website.

For help with tax-related issues or concerns, contact Michele Graham, CPA at Harding, Shymanski & Company, P.S.C. at 800.880.7800 ext. 1360.

This is the eighth consecutive year McGladrey has polled executives in the manufacturing and distribution industries.  Of the 1,067 total survey respondents, 688 were categorized as manufacturers and 379 distributors.  While manufacturers and distributors remain concerned about the economy, regulations, and other threats, they remain optimistic about their growth prospects for the coming year.  This year’s report covers Outlook for growth; cost expectations and maintaining margins; workforce and business proximity; and information technology.  In addition to the full report, a number of customized reports are available by state.  Download a copy of the 2013 Monitor report here.  If you would like to discuss further or have any questions, please contact Brant Kennedy, CPA at (800) 880-7800 ext. 1425 or bkennedy@hsccpa.com.

Harding, Shymanski & Company, P.S.C. will sponsor seminars in Evansville and Louisville on September 5^th and 6^th this year.  Karen Kurek, national manufacturing and distribution practice leader for McGladrey, will be the featured speaker at both events.  More information to come.

Cara Sweeney, Paraprofessional at Harding, Shymanski & Company, P.S.C., has been appointed as Area 62 Governor, District 11 of Toastmasters International. As Area Governor, Cara will oversee 10 Toastmasters clubs in the Southwest Indiana and Western Kentucky area. Cara has been a member of Crescent City Toastmasters for 6 years and she holds the designations of Advanced Communicator Bronze and Advanced Leadership Bronze and recently completed a High Performance Leadership Award. Cara’s term will run through June 30, 2014.

Steve Titzer, CPA, former President and CEO of Harding, Shymanski & Company, P.S.C. will retire after 37 years with the firm. His last day with the firm will be April 15th.

“It wasn’t surprising when Steve approached me with the idea of foregoing the usual retirement party and instead making a donation to Habitat for Humanity of Evansville,” said Trudy Stock, CPA, Harding, Shymanski & Company’s current president and CEO.

Titzer has been involved with Habitat for Humanity of Evansville since 1992, serving on the board of directors for those 22 years. Quoting Titzer, “I believe Habitat is vital to the continued growth and stability of our community. Home ownership strengthens the family, and strong families will build a next generation with the ability to break the cycle of poverty.”

While the firm has committed to be a partial sponsor of a home to be built late summer or early fall, efforts are underway to raise enough money to fully fund the Habitat home build. To make a donation, visit Habitat for Humanity of Evansville’s website and select Retirement Build – Steve Titzer from the Area of Support drop-down menu.