Bank reconciliation is the process of comparing your accounting records to the bank’s records. You go through every transaction in your account and make sure your book and the bank agree on the transaction. You should do a bank reconciliation at least every month to make sure you know what’s going on with your accounts.
Reconciliation can help you detect your recording errors. It can also help you detect other problems such as people stealing from your account or bank errors.
Your record can differ from the bank's and they need to get reconciled. Some items, such as outstanding checks, won’t show up on your bank statement because the bank doesn’t know about them yet. Likewise, there may have been electronic transfers at the bank that you didn’t know about. Bringing all of these things into the open is what bank reconciliation is all about.
Treasury officials have warned of a widespread and sophisticated phone scam
involving callers who impersonate Internal Revenue Service representatives and demand immediate payments with pre-paid debit cards and wire transfers.
Identity theft is rampant in America today. This year when I tried to
e-file the returns for a couple of clients, I got a message from the
software saying that the social security number was already used by
someone else. That is a sign of identity theft. Later I talked to other
CPAs and it seems that quite a few of them have seen identity theft
cases in their firm.
IRS Intensifies Work on Identity Theft and Refund Fraud
The IRS is taking several steps to alleviate identity theft and refund
Social Security at some point
will touch the lives of nearly all Americans. It is probably the only real
pension most people have. It is a
defined benefit plan - the longer you live, the more you get.
social security benefits be around in the future?
A research shows that there will
be enough funds to pay full benefits till 2036. Without reform, the benefits
will be reduced to 77% in 2036. The baby boomers will not likely to be affected
by social security reform.
When to take social security
1 - Charitable Contributions (Working Poor) Tax Credit
- Maximum $200/yr (single) or $400/yr (married filing jointly) .
- Your donations must be received by the agency by December 31, 2012 to be able to take the credit for 2012.
- You have to itemize deductions on your Arizona return in order to get this tax credit.
- The charity knows if they qualify for the tax credit.
2 - Public School Tax Credit
- Maximum $200/yr (single) or $400/yr (married filing jointly).
- In order to take the tax credit, your donations must be received by the school by December 31, 2012.
1. Failure to file penalty. It is usually 5% of the
unpaid taxes for each month or part of a month that a tax return is
penalty will not exceed 25% of the unpaid taxes. If a taxpayer files
his tax return more than 60 days after the due date or extended due
date, the minimum penalty is the smaller of $135 or 100% of the unpaid
2. Failure to pay penalty. It is one-half of one
percent of the unpaid
taxes for each month or part of a month after the due date that the
taxes aren't paid.
the 142,823,105 total individual income tax returns with a filing requirement,
1,581,394 were audited. This works out to roughly 1.1%. Of the total number of individual income tax
returns audited in FY 2010, 473,999 (30%) were for returns with an earned
income tax credit (EITC) claim.
are selected audit rates for individuals not claiming the EITC: