• JANUARY 2012 BHS NEWSLETTER


    It’s tax time again

    It’s time to file various tax returns once again. If any of the following tax deadlines will apply to you, circle the dates on your 2012 calendar.

    • January 17 – Due date for the fourth quarterly installment of 2011 estimated taxes for individuals unless you file your tax return and pay any taxes due by January 31.
    • January 31 – Employers must furnish 2011 W-2 statements to employees. Payers must furnish payees with Form 1099s for various payments made. The deadline for providing Form 1099-B and consolidated statements to customers is February 15.
    • January 31 – Employers must generally file annual federal unemployment tax returns.
    • February 28 – Payers must file information returns, such as Form 1099s, with the IRS. This deadline is extended to April 2 for electronic filing.
    • February 29 – Employers must send Form W-2 copies to the Social Security Administration. This deadline is extended to April 2 for electronic filing.
    • March 1 – Farmers and fishermen who did not make 2011 estimated tax payments must file 2011 tax returns and pay taxes in full.
    • April 17 – Individual income tax returns for 2011 are due.
       
    Last-minute 2011 deal reached on payroll tax cut

    On December 23, 2011, Congress finally approved a two-month extension of the payroll tax cut for American workers. The agreement was reached after weeks of partisan bickering. Though both Democrats and Republicans wanted a one-year extension of the tax cut, they could not agree on how to pay for a year-long extension and settled on a paid-for two-month extension.

    The new law extends the 4.2% social security tax on wages through February 29, 2012. Without this extension, the tax rate would have gone to 6.2% on the first $110,100 of wages earned in 2012.

    The law also extends benefits for the long-term unemployed for two months and prevents a scheduled cut in fees paid to Medicare providers from taking effect January 1, 2012.

    These extensions will be paid for by an increase in fees charged by government-backed mortgage companies (Fannie Mae and Freddie Mac) for new home loans.  Included in the agreement is a requirement that President Obama make a decision within 60 days on the construction of the 1,700 mile Keystone oil pipeline.

    Finally, the agreement calls for a House-Senate conference committee to negotiate an agreement that would extend the payroll tax cut through the end of 2012, extend unemployment benefits, and prevent cuts in payments to Medicare doctors.

    IRS expands innocent spouse relief

    If you file a joint income tax return with your spouse, you are considered “jointly and severally” liable for the payment of all taxes owed. The IRS can come after either you or your spouse for the entire amount of tax due, plus any penalties and interest due.

    The law has “innocent spouse” rules that may limit an individual’s responsibility for unpaid taxes resulting from filing a joint return. If the “innocent spouse” can establish that he or she did not know, or have reason to know, that there was an understatement of tax when signing the joint return, relief can be requested. Under previous rules, this relief had to be requested within two years after collection proceedings were initiated by the IRS.

    In a new 2011 ruling, the IRS has decided to eliminate the two-year time limit for requesting innocent spouse status under the “equitable relief” provision in the law.


    Watch out for scams when selling your business

    You’ve spent years developing your business, building its value, enhancing its reputation. Now you’re ready to move on. You place a “Business for Sale” advertisement in the Internet classifieds, and the next day an eager – overly eager – buyer approaches you with a deal that seems too good to be true. The buyer offers full price and wants to structure the deal as a stock sale. A stock sale means the buyer will get the entire business, including all its assets (cash, checking accounts, receivables, inventory and so on) at closing. The buyer doesn’t ask tough questions about the firm and seems in a hurry to close the sale. He or she offers a 10% down payment and says the full balance will be paid off within a year.
    Seller beware! Business owners and regulators have found that scam artists use these types of transactions to strip value from companies, pulling out cash, and leaving the seller with a fistful of worthless stock. Within days of closing the sale, the buyer factors (sells) the receivables for cash, runs up company credit cards, sells off inventory, and empties cash accounts. The firm’s creditors don’t get paid. Your formerly prosperous business becomes an empty shell.

    How can you avoid these types of scams when selling your business? Here are a few suggestions.

    • Perform an extensive background check on any potential buyer, including a review of the person’s credit reports, litigation history, tax liens, and so forth. A skilled attorney can often help with this research.
    • Beware of sales that go too smoothly. Legitimate buyers will perform due diligence, asking tough questions, inspecting financial records, and calling customers and vendors. If the buyer wants to close the sale in a hurry and doesn’t seem interested in the firm’s ongoing prospects, beware!


    This newsletter provides business, financial, and tax information to clients and friends of our firm. This general information should not be acted upon without first determining its application to your specific situation. For further details on any article, please contact us.
     

  • Accounting & Tax Updates

  • Tax Tips

  • Company News

    Company News

    BHS Circleville Welcomes Angela Hill - 7/18/11

     We are very excited to welcome Angeala Hill, CPA to the BHS tax department in our Circleville office.  Angela has over 15 years of relevant experience and will no doubt be a fantastic addition to the team.  Welcome, Angela!

  • Archived Company News




    BHS Columbus Welcomes Kevin Culver & Lauren Widdersheim - 5/27/11

    It is our pleasure to welcome Kevin Culver & Lauren Widdersheim to the BHS Audit team in our Columbus office.  Bringing on new members to our team is something we take very seriously, and we were overwhelmed by the total number of applicants and the quality of the candidates we interviewed.  We feel very good about our decision to have them join the team and we are excited for them to start in August.  Welcome, Kevin & Lauren!
    ------------------------------------------------------------------------------------------------------------------------------------------------

    BHS Columbus looking to add 2 Staff Auditors - 4/1/11

    We will be conducting on campus interviews at Ohio and Ohio State, as well as interviews in our Columbus office during the first week of May. Interested applicants please click on Careers to the left and apply. We will contact you and potentially set up an interviewBHS is looking for 2 entry level staff auditors to join our team. Applicants must have a bachelor's degree in Accounting and be available to start by August 2011. The staff auditor will assist in many audits of different types and sizes and be based out of our Columbus office.
    -------------------------------------------------------------------------------------------------------------------------------------------------

    BHS Portsmouth Moves to Wheelersburg - 12/28/10


    The most southern BHS office is on the move, leaving Portsmouth for nearby Wheelersburg. BHS had the office in downtown Portsmouth for 3 years and have enjoyed their time there, but decided to take things outside of town going forward. The new office location is located on Ohio River Road, just north of the Ohio River. Click on the locations link for contact information.

    ---------------------------------------------------------------------------------------------------------------------------------------

    Southern Office Promotions - 11/24/10

    BHS would like to congratulate Chrissy Downs for her promotion to Audit Manager. In addition, Chris Roush, Zach Holbert, Stephen Sowards, Matt Sanders, & Alan Schmandt have been promoted to Senior Auditors. BHS looks forward to moving ahead with these fine employees under their new roles.
    --------------------------------------------------------------------------------------------------------------------------------------------------

    BHS adds 3 to team - 11/8/10

    BHS is happy to bring aboard Rick Galloway (Senior Governmental Audit Manager), Christina Hoffman (Staff Governmental Auditor), and Erica Eyre (Staff Consultant) today. We are excited to bring them aboard and serve our clients with them!

    --------------------------------------------------------------------------------------------------------------------------------------------------
    CPAs from BHS teach local students how to manage money - 11/2/10

    Fifth grade students at Indian Springs Elementary School will make big spending, saving and budgeting decisions November 10 in a special lesson taught by CPAs from Balestra, Harr & Scherer in Columbus.

    This fun competitive lesson uses a new game called FETCH!, which stands for Financial Education Teaches Children Healthy Habits. FETCH! teaches children to manage money early in life so they will grow into adults who make smart financial decisions.

    FETCH! is set in a dog park where student teams manage the finances of owning a pet. With each turn, they use critical math and thinking skills to earn money for basics like a leash and collar, budget for unexpected expenses and save money for the future. If your dog is naughty, you could end up paying to fix the neighbor’s fence. If he learns a new trick or wins first place in the dog show, you get rewarded with money to put in your savings account.

    The game teaches children that sometimes you must delay buying what you want right now so that you can afford what you need later. The team that ends the game with the most money in their savings account, and the most items for their pooch, wins. The lesson couldn’t be timelier as families across America are struggling with economic issues. According to the U.S. Census Bureau, 77% of U.S. families are in debt with 46.1% holding credit card debt.

    FETCH! was created by The Ohio Society of CPAs and its charitable affiliate, The Ohio CPA Foundation with guidance from elementary teachers and a curriculum developer. It includes a testing component to gauge if students have mastered a basic understanding of financial terms. Click here to see a video of FETCH! in action or for more information, visit www.cpasintheclassroom.com.

    --------------------------------------------------------------------------------------------------------------------------------------------------

    BHS survives inventory observations! - 9/7/10

    With agribusiness being a prominent industry for us, and with their inventory being a highly material item, we BHS auditors occasionally go out and climb grain bins and observe other types of farming inventory. It's a nice change of pace from the office and we know what we're doing. We covered over 150 branchesin the days surrounding August 31st, and we managed to snap a few photos of our endeavors. Check them out on facebook!

    --------------------------------------------------------------------------------------------------------------------------------------------------


    BHS welcomes Marie Stewart to the audit staff! - 7/27/10

    It is our pleasure to welcome Marie Stewart to the BHS audit team in our Columbus office. We were overwhelmed by a number of quality candidates, and we feel very good about having her become a valued team member. Welcome, Marie!

    --------------------------------------------------------------------------------------------------------------------------------------------------

    Join us on Facebook! - 7/2/10

    BHS has made a facebook page!  Please "like" us at this link to receive various updates from BHS in your news feed.

    --------------------------------------------------------------------------------------------------------------------------------------------------

    BHS launches new website! - 6/21/10

    It has been a long time coming, and BHS is proud to launch their new website. A big thanks to Jason Gonzales and the team at RMG Advertising for their great work in helping with the design of the site. We highly recommend them to anyone looking for a web design or marketing firm!