With the entrance of the New Year, can April 15th be far behind? Each year we mark the passing of days with anxiety and stress as we feverishly gather all the financial documents with the hopes of ending the annual trek to our tax man without bruises to our pocketbook.
In Roselle Park, New Jersey, Koenig,Russo & Associates is a fine, reputable tax preparation service which has earned the trust of my husband and me for over 20 years. The firm is well established and respected in the community. After the death several years ago of the owner, Mr. Koenig, Bob Russo became senior partner and very capably stands at the company’s helm today. The office staff offers superb customer service; the tax accountants are quite knowledgeable, efficient and stand ready to assist the client in filing his tax return accurately. They have our highest recommendation for being a top notch, reputable and honest tax preparation service.
Koenig, Russo, and Associates offer services to individuals, local businesses and self employed business owners. During tax season, firm will help the client find answers to varied tax issues such as retirement savings options for the self employed, year end tax planning strategies and answers to complicated financial issues that individuals and businesses alike may face in filing taxes.
Taxes may be filed electonically which is a quick and efficent method.
Some tax saving strategies recommended by Koenig, Russo & Associates:
State estimated tax payments If tax payment was made before the end of December 2006, it can count as a tax deduction for 2006. You have until January 15, 2007 to make the 4th quarter 2006 state’s estimated payment. If that payment is made before the end of December 2006, the payment will count as a tax deduction for 2006.
Property taxes The property taxes are billed in installments and most people pay them by this method. However, the dreaded property tax can be paid fully in one payment instead of billed installments thereby yielding a greater tax benefit.
IRA withdrawals Retired individuals taking IRA distributions are cautioned to be certain that you have withdrawn the minimum distribution amount from the IRA or other qualified plans to avoid the 50% underwithdrawal penalty. For Roth IRA conversions, individuals with a low taxable income or a negative amount for the year, may find it helpful to convert the traditional IRA to a Roth IRA at little or no tax cost.
Education Credits Koenig, Russo & Associates advises that if you qualify for one of the higher educational tax credits and have not paid enough tuition during the past year to attain the maximum credit, the law permits you to prepay your tuition for the academic period beginning within the first three months of the next year and then claim the tutition for the current year’s credit-a nice bonus for saving.
These suggestions are but a few of the year end tax planning strategies recommended by the firm. During your session with the tax accountant, you will be advised of other strategies which are not readily apparent and you will be directed how to properly apply those deductions to your specific tax situation. The firm keeps up to date with current tax laws and has reported that an unexpected refund for 2006 awaits consumers concerning the collection of long distance telephone excise tax from individuals on their monthly bills. The court ruling states that in losing its case relating to the collection of long distance telephone excise tax from individuals and businesses, the IRS will be refunding the 3% federal excise tax levied between February 28, 2003 and August 1, 2006. Individuals may still base their refunds on actual amounts paid if you have copies of their long distance telephone bills dating back to 2003 and are willing to spend the time adding up the monthly charges. This rebate is available even to individuals who are not usually required to fill out a tax return and can be obtained by completing special form 1040EZ-T to claim the refund.
Self employed business owners have needs that are different from the needs of employees. There are provisions for several tax sheltered option that allow you to put away money for your retirement. Some available plans include:
Defined benefit plans that allow contribution in an amount that will produce a specific retirement benefit beginning at a specific age and payable throughout your lifetime. These plans are custom designed and require the service of an actuary.
Simplified Employee Pension Plan (SEP) It is an IRA but according to Koenig, Russo & Associates, the contribution allowed is the same as for a Keogh making the SEP plans generally a better alternative for the self employed business owner. Keogh plans require annual require annual returns but no such rule exists for SEP plans. SEP plans can be established after the year end.
The Traditional or Roth IRA The self employed owner can contribute to the IRA under the same rules as other individuals which may actually be a better option for those who do not wish to included employees in the retirement plans. Roth contribution do not provide a current tax benefit and the opportunity to contribute to a Roth IRA opts out for incomes $150,000-160,000 for most other individuals.
In preparing for tax filing and recordkeeping, Koenig, Russo & Associates advises that we keep the following dates in mind:
January 31, 2007 Deadline for providing 1099’s and @-2’s for employees by their company.
February 2007 Deadline for filing 1099’s and W-2’s to the government
April 2007 Last day to withdraw funds from your traditional IRA if you are
70 1/2 in 2006 and have not yet taken the 2006 distribution.
Not taking the required distribution can result in penalties.
April 16, 2007 Deadline for individuals to file a 2006 Federal return or
to request an extension of time to file
Koenig, Russo & Associates can be contacted for more specific questions on tax related matters. The address is:
Koenig, Russo, & Associates, L.L. C.
Certified Public Accountants
277 West Clay Avenue
Roselle Park, NJ 07204
The firm has convenient day and evening hours to schedule appointments. Call the office to obtain office hours. Their service is prompt and you will contacted to pick up your completed tax forms.
We salute this firm for their competence, integrity and honesty. Although we recently moved out of state, we plan to keep them as our tax preparers…..forever!