Sept/October 2011 Newsletter
Olsen Thielen Celebrates 90th Anniversary
Written by Newsletter Editor on October 11, 2011
It is important for all of us to pause occasionally and reflect on the history and accomplishments of those who have gone before us.
Olsen Thielen’s roots go all the way back to 1921 when it was founded by Tom Macoubrey. It was founded on the belief that personal respect, personal attention, trust and quality services are the key elements to helping our clients succeed. While change has become a reality in today’s world, at least one thing remains constant—more than 90 years later, those same attributes still serve as the core foundation of every aspect of our business. Read the rest of this entry »
Cost Effective Fraud Prevention Services
Written by Andrea Addo, CPA, CFE on October 11, 2011
Ponzi schemes and insurance and tax fraud are topics appearing on the news regularly these days. We tend to associate these incidences with large publicly-traded companies, but is that the case? Fraud can occur in any size company or organization if proper education and prevention measures are not taken. Read the rest of this entry »
The Minnesota Real Estate Show Has Moved!
Written by Greg Nelson, CPA, MBT on October 11, 2011
Olsen Thielen Tax Principal, Greg Nelson, CPA, MBT, is a frequent guest/speaker on the Minnesota Real Estate Show on the radio at NewsTalk 100.3 FM. The show recently moved from NewsTalk 100.3 to NewsTalk 102.5 and 1130 AM. This means that The Minnesota Real Estate Show will be heard on both AM and FM radio.
Minnesota Sales Tax Accelerated Payments
Written by Cheryl Ellefson, CPA, MBT, CFP on October 11, 2011
As a reminder, the sales tax rules for taxpayers with at least $120,000 of sales tax liability in the prior year ended June 30, changed effective September 1, 2010. The new rule requires that a partial payment is to be made by the 14th day of the month – six days early. Late payments can be expensive. We have noticed that the state is starting to charge penalties, which can be significant to late filers. Read the rest of this entry »
Paying Too Much Minnesota Sales Tax?
Written by Gerri Hoff, CPA on October 11, 2011
Businesses involved in industrial production may be exempt from sales tax on materials used or consumed in the production process. Industrial producers include manufacturers, fabricators, miners and refiners, and many others. Read the rest of this entry »
Cost of Education at Upper Midwest Colleges
Written by Newsletter Editor on October 11, 2011
You hear so much about the price of college, it’s easy to get intimidated. But, how much does college really cost? As you can see below, the answer is “it varies.” The table below lists the approximate cost of tuition and room and board for an incoming freshman attending an Upper Midwest school for the 2011-2012 school year. Read the rest of this entry »
Olsen Thielen is Going Green!
Written by Lisa Dunnigan, MCTS, CNE on October 11, 2011
The Olsen Thielen Adviser newsletter is now available on-line at www.otcpas.com/adviser. If you would like to receive this newsletter via email, you can sign up on-line by visiting the site and clicking on the SUBSCRIBE link.
You can also opt out of the paper newsletter mailing list if you no longer wish to get this paper version. Paper copy opt-out requests can also be sent to newsletter@otcpas.com. While you’re visiting our website, check out the latest articles on our Olsen Thielen Adviser blog. The blog contains timely updates that occur between publications of the newsletter.
IRS Guidance on Taxation of Cell Phones
Written by Nate Nelson, CPA on October 11, 2011
On September 14, 2011, the IRS issued a notice that is designed to provide guidance on the tax treatment of employer-provided cell phones. In 2010, the Small Business Jobs Act removed cell phones from the listed property category, which required taxpayers to keep detailed records of their business and personal calls. The value of the phone provided needed to be included in the employee’s gross income. The September 14 notice determined that when an employer provides an employee with a cell phone used primarily for noncompensatory business reasons, it is no longer taxable based on the following reasons:
- Business use of the phone will be deemed a working condition fringe benefit
- Personal use of the phone will be deemed a de minimis fringe benefit
The IRS will not require recordkeeping of business use in order to receive the tax-free treatment.
The IRS also issued a memo to their examiners which provided guidance on the practice of small businesses providing cash allowances or reimbursements to employees for business use of their personal cell phones.
- If employers require employees to use their personal cell phones for business use, the reimbursements will be considered nontaxable
- The guidance does not apply to the reimbursement for cell phones or for cell phone use that is not primarily business related. That arrangement is still generally taxable
- The guidance appears to be for employers and employees
The IRS does not mention self employed individuals in the notice.
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Sept/October 2011 Newsletter
