April 15th Deadline – REMINDERS!

As the April 15th tax deadline approaches, here are a few reminders.

TAX RETURNS vs. TAX PAYMENTS – What is due?

Your tax payment is due by April 15th.  Your tax return does not have to be filed by 4/15 as long as we have filed an extension.  If we have prepared your taxes in the past, and your taxes are not complete – rest assured, we have filed an extension for you, you do not need to do anything, or sign anything.

** IF YOU OWE TAXES — Your TAX PAYMENT is due by April 15th **

EXTENSION PAYMENTS:

If you would like to make a tax payment for April 15th, Please contact us ASAP.  We will be happy to help you with this.  If you had a tax review completed by us for 2013, please refer to the notes from that meeting for our instructions on what you will need to do by 4/15.

If you have questions, please email:  darrellynn@biz-by-design.  He can get your questions to your accountant in charge.

HEALTH SAVINGS ACCOUNTS (HSA) for 2013

Your 2013 HSA contribution needs to be funded by 4/15/14.  The max contribution for a family plan is $6,450.  The max contribution for an individual plan is $3,250.  If you are 55+, you can add an additional $1,000 to your contribution.  This contribution can not be extended with a personal tax extension.

NOTE:  You would need to have had the plan opened up in 2013 to make a contribution for 2013.

IRA’s and ROTH IRA’s for 2013 – Personal Contributions

IRA Contributions for 2013- The max IRA contribution is $5,500.   If you are 50 and older, you can an additonal $1,000.   The IRA must be opened and funded by 4/15/14.  This contribution can not be extended with a personal tax extension.

ROTH IRA Contributions for 2013:   The max ROTH IRA contribution is $5,500.   If you are 50 and older, you can an additonal $1,000.   The IRA must be opened and funded by 4/15/14.  This contribution can not be extended with a personal tax extension.

NOTE:  The due date of 4/15 DOES NOT apply to SEP’s and 401K contributions.  Those contributions can be extened with the due date of the Personal or Corporation tax return.

How to access your myBBDPass Account

Your private account, safe and secure.myBBDPass Logo - Transparent-small

All copies of your returns and any relevant tax documents will be provided via your secure online account (myBBDPass).  This account allows you to have  24/7 access to all your relevant tax information and documents.  You can access this account & can view or download this information as needed from any device.

For detailed log-in instructions, please click here:

myBBDPass Log-in Instructions

Access with Smartphone or Tablet?Net Client Image

You can access your account with any device.  You can download the app “Net Client CS” for your Apple or Android device.  See instructions in this post for more information.

Sales & Use Tax Due on 2-5-14.

REMEMBER:  You need to file your sales and use tax return by February 5th, 2014.

If you do not regularly file a sales tax return, you need to file a “Sales & Use Tax” return by February 5th, 2014.  Click here to file: https://www.mndor.state.mn.us/ur/jsp/Login.jsp

“. . . but I do not collect sales tax or have taxable services!” 

Many people think this, however you must file a return for USE TAX as well as SALES TAX.  USE TAX is the sales tax you should have paid on purchases you may have bought over the internet or in other situations where you did not pay the sales tax at the time of purchase.  This sales tax must be paid in voluntarily and must be paid online.

Business By Design can not file this return for you!  For more infomation, click below to download details about filing this return and filing requirements:

BBD’s Explanation:   Explanation of Sales & Use Tax -2013

Frequently Asked ??’s:  2013 FAQ’s-MN Sales and Use Tax

How to file?:    Step by step instructions for filing Sales and Use Tax returns

For information on what is or is not taxable, please refer to the MN Fact Sheets here:  http://www.revenue.state.mn.us/businesses/sut/Pages/fact_sheets.aspx

For more information, you can go to the MN Department of Revenue Website at:  http://taxes.state.mn.us/sales/pages/index.aspx

1099 Forms & Independent Contractor Rules

Do you need to send 1099’s for payments made in 2013?

If you, individually, or your corporation, have paid $600.00 or more to any one individual in 2013, you are REQUIRED to prepare a 1099 for each individual. (NOTE:  No 1099 is required if you pay a Corporation).  LLC’s would require a 1099 unless the LLC is taxed as a Corporation.

Please note that the Payee needs to receive their 1099 by January 31st, 2014 and the IRS needs to receive their copy by February 28th, 2013.

How to prepare your 1099’s.

If you are required to issue 1099’s you have two options.  Please choose one.

Option #1:  Prepare these yourself by the due dates stated.

You can get the forms from the IRS directly by calling the IRS; ordering the forms online; or visiting one of their offices.  The St. Paul and Bloomington offices do have these forms, but you may be limited in the amount they will give you.

Option #2:  Business by Design will prepare these forms for a fee.

BBD Charges $50.00 for two (2) 1099 forms, and $25.00 for each additional form 1099.  For example:  we prepare 5- 1099’s-the cost is $125.  These fees include preparing the 1099’s and the applicable 1096 form.  The attached payment authorization will need to submitted with your 1099 request.

We will not prepare these returns without a payment authorization on file.  No charges will be processed until the 1099’s are completed and reviewed by you.

Click for Payment Authorization:  Payment Authorization Form

Click for 1099 request form (FILL-IN):  External 1099 Request – Fill In

      1. Who the Payer is (you or corporation name)
      2. Who the Payee is (the name of the person that was paid)
      3. Address of the Payee.
      4. Social Security Number of the Payee.
      5. Amount Payee was paid in 2013.
      6. What is payment for:  services, rent, mortgage interest, interest, etc.

This information MUST be provided to us in WRITTEN form by fax or e-mail (no voicemails) by January 24th, 2014. Any handwritten information must be legible.  If you would like to fax us this information, our fax is:  952-392-1201.

PLEASE BE CERTAIN YOUR INFORMATION IS CORRECT:  There is a $200.00 fee for 1099’s that need to be corrected and reissued because of erroneous information received.  Therefore, it is important you send us the correct and complete information.

If you have any other questions, you can contact Karin Horkey at Business By Design (karinhorkey@biz-by-design.com) or 952-392-1210.

Annual Registration Solicitation – FYI

Recently you may have received some information in the mail concerning your corporation’s annual registration with the Secretary of State.   We have been notified by a number of our clients about this and we wanted to let you know this IS NOT something you need to respond to.

  • You should not pay this fee or respond to this mailing.

Business By Design will file your annual registration for you when your corporation tax returns are completed.  This has always been our practice and will continue to do so in the foreseeable future.

Example of Annual Registration Solicitation

Click hereAnnual Registration Solicitation-2013