Employment tax examinations to begin; 2000 tax payers to be selected each year

American Payroll Association offers audit tips as detailed IRS employment tax examinations about to begin: The IRS National Research Program (NRP) study on employment taxes is scheduled to begin by the end of March. The IRS will randomly select 2,000 taxpayers for comprehensive, random employment tax examinations each year for the next three years. The Spring 2010 edition of the SSA/IRS Reporter includes an article by the American Payroll Association (APA) that offers tips on how to prepare for an IRS audit.

Before the first meeting. The APA advises employers to establish an internal team before the IRS meeting. The team should consist of payroll, accounts payable, accounting, human resources, internal auditing, general counsel, and outside tax professionals. A person (point person) should be appointed by the internal team to manage the examination and supervise the input from employees. The point person should assemble and regulate the flow of information between the IRS and the employer. The point person should review all information before it is turned over to the IRS and be present during tours and interviews of employees. The APA believes that this type of setup will increase the likelihood that the information provided to the IRS is organized, complete, and focused. The APA cautions employers not to try to restrict or hide information.

Information requests. The IRS requests information that it would like to look at during tax examinations on Form 4564, Information Document Request. The requests should be given to the point person. The APA notes that employers are required to provide the IRS with all the information that the Service is legally allowed to request. However, employers are not required to provide any information that is not specifically requested by the IRS.

Problems with the IRS agent. The APA says that it is perfectly acceptable to have unresolved audit issues with the auditors. The APA recommends that an audit be stopped if an employer feels that an agent is not conducting himself/herself professionally. The matter should then be discussed with the auditor's supervisor.

Appeals. Unresolved tax examination issues that are not part of the closing agreement may be appealed to the IRS Appeals Office. Open audit issues that cannot be resolved with the Appeals Office may be litigated through a formal trial. The APA believes that this option should be chosen only as a last resort because of the time and expense involved with the litigation of tax disputes.

Thrifty Thursdays: You gotta have fun!!

7 Ways to Save in the Cincinnati Scene

1. The Cincinnati Art Museum: Did you know that the art museum is free everyday!! That is 60,000 works of art all for the low, low price of $0. If that isn't a bargain I don't know what is! www.cincinnatiartmuseum.org

2. The Contemporary Arts Center: Monday's from 5pm to 9pm the CAC is free. Grab a friend and unwind while winding through Zaha Hadid's magnificent building. And don't forget to check out the unMuseum! www.contemporaryartscenter.org

3. Fountain Square: There is always something going on at Fountain Square. From ice skating to karaoke to live music this is a great place to hang out and have some fun. Most events are free! www.myfountainsquare.com

4. Cyclones Hockey: The Cyclones are all about their fans having fun on a budget. Most of their home games feature some kind of $1 special, pizza, beer, hot dogs, and even pulled pork sandwiches. To see the schedule of events go to www.cycloneshockey.com

5. Dollar Fridays at Turfway Downs: By Friday most of us are ready for some fun. What better way than to head to Turfway Downs for $1 Buds and hotdogs. There is live racing and live music from some of the best cover bands in the city. www.turfway.com

6. 5 for $5: The bars of Covington have found a great way for people to still go out and have a few cocktails without breaking the bank. On Wednesday evenings Cosmos & Mulligan's feature 5 for $5 well drinks or bottled beer, and on Thursdays Molly Malone's & Keystone offer the same.

7. And for more ways to hang out in Cincinnati on the Cheap go to www.CincinnationtheCheap.com

By: Gracie Mohr

Feed The Pig's Weekly Savings Tip...Online Bill Pay.

The internet has given us many modern conveniences, including online bill pay. Paying bills online can save you the effort of writing checks and stuffing envelopes, and ensure that your bills are always paid on time. Unsure if your bank offers online bill pay? Speak to your bank about available options and if any fees are involved.

Here are some advantages to online bill pay.

• Many banks have a database of companies to choose from when setting up your online bill pay, making the setup process easier. Additionally, you only need to enter a company's information once and it will be saved to your account, as opposed to manually writing checks for each bill.

• Avoid late fees and processing fees by setting up automatic payments. If you know your bill will be the same amount each month, taking advantage of automatic electronic payments will give you one less thing to worry about.

• Paying your bills online reduces the chance for human error and conveniently groups all your bills into a single location, giving you control over every aspect of your bill paying process. Just a few clicks and you're good to go!

Visit www.FeedthePig.org for more money-saving tips.

Buyer beware - Roth Conversions are Hot!

I just got a spam e mail with these headlines:

ROTH CONVERSIONS ARE HOT!
Millions of dollars are being transferred!
HUGE commissions are being generated!
Here's how to get your share of this exploding market.

Doesn't this just make you sick? Where is the client in this headline? What about the impact to the client on their goals, dreams and the cash flow to make it all happen?

Obviously the person who spammed me did not know that Mackey Advisors is a fee only firm, and so generating commissions is not our gig.

So my advice is buyer beware. Proceed with caution on Roth conversions. Do the math and see if it makes sense for you - does a Roth conversation make it easier or more difficult for you to reach your goals? This is the question that you must answer before taking action.

Do not go into fear over tax rates of the future. Take a breathe, run the numbers, do you homework. Then take action.

May prosperity be yours,
Mackey McNeill, CPA/PFS
CEO and President
Mackey Advisors
www.CultivatingProsperity.com

Solar energy, does it work for you?

Check out this article and imbedded spreadsheet to determine if solar is viable for you financially.

If the Return on Investment (ROI) is convincing, consider starting soon to get your project complete in 2010 and therefore your tax credit in 2010.

If the ROI for you is not spectacular, and your budget can accomodate the cost, consider solar as part investment for today and part an investment you are making for your grandchildren's future in a cleaner planet. Making a difference has its own ROI, the one in your heart.

http://tinyurl.com/ycsxeyy

May prosperity be yours,
Mackey McNeill, CPA/PFS
President and CEO Mackey Advisors
www.CultivatingProsperity.com

5 Beavers

A month ago at the Kenton Conservancy meeting (I am Chair of the Board) it was reported that the City of Independence had gone onto our property, Woolsing Trails (see great pictures of Woolsing on Facebook) and destroyed a beaver dam due to its interference with a low water bridge.

Needless to say the members of the board were unhappy. The purpose of the Conservancy is to preserve lands of natural, historical and cultural significance to the county. It follows that one of the reasons to preserve property is to allow for natural habitat, such as beavers. I was assigned the job of calling the City of Independence Administrator and requesting a different approach in the future. When we spoke, he apologized for going onto the property without contacting us and said he would most definitely contact us in the future. He also told me that the beavers had rebuilt the dam.

I hung up the phone very pleased that nature had won. Or so I thought. Tonight (a month later) at the Conservancy meeting I learned that a trapper had trapped, and killed all 5 beavers who resided in the creek. Supposedly he entered the creek from someone else’s property, not ours. No matter how he got there the beavers are gone.

I was at first filled with rage. Then I was just sick, with a heavy feeling in my heart. Is it possible for people to live in concert with nature? Why must we trap, kill, mine or gather every living and natural resource available? Why can’t we just see the beauty and leave it alone? Or see the beauty and leave it for the next person? When will we ever have enough? Will we wait until all the animals are all gone to mourn their loss?

Call me a tree hugger, an environmentalist, an eco-nut, honestly I don’t care. What is true is that I am a lover. A lover of nature and all that it offers. While my efforts seem insignificant and useless on days like this, I know that tomorrow, I will get up and get focused again, on preserving what is left of the natural and wild spaces of Kenton County Kentucky.

Mackey McNeill, CPA/PFS

President and CEO of Mackey Advisors

www.CultivatingProsperity.com