New Product: MRI Software Blank Laser Checks

Our newest product is #85009MRI Laser Checks.

Each letter sized sheet has two checks and are blank for MICR printing. The checks have 10 LaserSecure Fraud-Resistant security features to help guard against check fraud. MRI Software #85009 checks gets an "A" Grade at LaserCheckGRADER.com

These checks are fully guaranteed to be compatible with MRI Software for Property Management Accounting. Free samples are always available before purchasing.

The IRS is watching your 1099 Filings

Are you aware that the IRS will be watching your 1099 filings closer than ever this year? Just as a “friendly” reminder, there will be two new questions on your company tax return this year:

1. Did you make any payments in 2011 that would require you to file form(s) 1099?
2. If yes, did you (or will you) file all required forms 1099?

The IRS appears to be looking with much more interest at those independent contractors who receive more than $600 per year. Did your business make any payments to an individual or even to a business that was not incorporated (for example, a CPA or a lawyer)? If so, you must provide them with a form 1099.

Many companies make the mistake of thinking that these forms are only necessary for employees classified as independent contractors. This is a big mistake. Remember not to forget all of the independent business professionals that you have “hired” throughout the year as well. Forms must be supplied for all of these unincorporated professionals.

Penalties for forgetting to file, or doing these forms incorrectly can be expensive. These start at $30 per form. Remember, this $30 penalty is just the start; they only increase from that point.

The IRS has understood for a long time that many companies would like to classify their workers as “independent contractors” in order to save on their paperwork and tax liabilities. But this year, they seem to be much more focused in this area, as well as the businesses which use such types of employees.

An independent contractor has been defined by the IRS. When an employer has the right to control and direct only the result of the work and not what will be done and how it will be done. This is a legal definition. It really does not matter if an employee is given a large amount of freedom in their work. If the employer has the legal right to control the details of how the work (or service) is performed, than the employee is not an independent contractor.

Why is the IRS so concerned about these 1099s? The main reason is that there are not any taxes taken directly out of the earnings from independent contractors. In the past, there have been problems not only with 1099 reporting, but also in collecting these taxes. There are also self-employment taxes due from the worker.

Many times the independent contractor may not even realize their personal liability. This is especially true if they are new to world of self-employment or contract work. By getting the word out to businesses, the IRS is hoping to increase awareness and compliance.

Unfortunately, you are not able to download the form 1099 from the IRS web site. You must file either through paper forms (in the mail), or electronically. However, you can download the “General Instructions for Certain Information Returns.”

It is always a good idea to let all of the employees (and business professionals) who meet the independent contractor requirement that you intend to treat them for tax purposes as a 1099 employee or service provider. Let them know in advance that you will be filing their 1099 information with the IRS.

You do not want to “forget” to file these forms and subject yourself to stiff IRS penalties. The deadline for sending paper 1099s is February 28. The deadline for electronic forms is April 2. 

Avoid 1099 Reporting Errors and Possible Penalties by Using the Free IRS TIN Matching Program

The term TIN is defined as the identifying number assigned to a person under the Internal Revenue Code.  A TIN may be a Social Security Number (SSN), Employer Identification Number (EIN), Individual Taxpayer Identification Number (ITIN) or Adoption Taxpayer Identification Number (ATIN).

The penalty for a payor who furnishes an incorrect name / TIN to the IRS is $50 per return with a maximum penalty of $250,000 per year ($100,000 for small businesses).  The penalty for intentional disregard is $100 per return, with no maximum penalty.

The IRS has established a program called Taxpayer Identification Number (TIN) Matching Program.  A program participant may check the TIN furnished by the payee against the name / TIN combination contained in the IRS database maintained for the Program.  The matching details provided to participating payors will help avoid TIN errors and reduce fines and reduce the number of backup withholding notice required by the IRS.  TIN Matching is an internet-based program offered by the IRS that allows payers to check if a payee’s name and TIN matches.  It requires registration to receive a log on.  Log onto IRS TIN Matching Program Web Page through www.irs.gov(E-Services)

Enrolled users may TIN Match in one of two ways:

·        Interactively – a user can submit up to 25 name/TIN combinations at a time during a session and receive a response from the IRS within 5 seconds.

·        Bulk- users may download .txt files composed of up to 100,000 name/TIN combinations and receive a response from the IRs within 24 hours.

Remember the Best practice for ALL accounts payable departments is - Never set up a new vendor without TIN Matching for verification.

To find out more about the TIN Matching Program, go to the e-Services home page at, https://la.www4.irs.gov/e-services/Registration/index.htm. An On-Line Tutorial provides a full range of information for Interactive and Bulk TIN Matching, as well as other e-Services products.

Property Management Bookkeeper accused of $1.49M embezzlement

A 64-year-old La Jolla woman was arrested Thursday amid allegations that she embezzled $1.49 million from the Solana Beach firm where she once had worked, a San Diego County sheriff's detective said.

Financial crimes detective Sgt. Mark Varnau said Jennifer Davey "took significant funds over a long period of time."

Varnau said that while working for Beckman Properties as a bookkeeper and operations manager, Davey made up a fake company ---- dubbed Professional Advisors Unlimited ---- and then wrote checks to her "company" from Beckman's funds.

He said Davey altered or forged 332 of Beckman's checks. 

Davey worked for Beckman from 2000 until she was fired nearly seven years later, Varnau said. The embezzlement wasn't uncovered until a new bookkeeper came in, he said.

Varnau said Davey used money from the Beckman accounts to pay off her credit cards. He said that Davey also created counterfeit credit card statements to cover up the theft, and that those statements were superior in quality and design to the actual credit card bills.


Read article here.