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It seems like only yesterday, if you don't
count the grey hairs. Parker & Riddick
opened its office on Dallas St. in 1976,
relocated to Navajo Rd. in 1986 and moved
to our current Alvarado Road location
in 1997.
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In
the beginning, we were awash in carbon paper
and white-out corrective fluid, IBM Selectric
typewriters, and rotary dial telephones embracing
technological advancements when they proved
worth while and a benefit to our clients. We're
now hip deep in e-filing tax returns, desk and
lap top computers, servers and backup regimens.
But
some things didn't change including our commitment
to providing our clients with the best financial
counseling, tax planning and preparation.
To
further answer our client requests for specialized
accounting services we embraced Intuit's QuickBooks
software and started The Business Wizards in
1999, providing software instruction and specialized
accounting services to businesses large and
small.Looking back, it's been a wonderful 30
years and we wouldn't change a thing.
Thank
you for selecting us to be your friend, advisor,
and CPA.
30
Years Ago
In 1976 Gerald Ford was President, Nelson Rockefeller
VP, and our country celebrated its Bicentennial.
The
median household income was $12,686 and a first-class
postage stamp cost 13 cents. Box office movie
hits included Rocky, Taxi Driver, Network, and
All the President's Men. Viking landed on Mars
and Air France and British Airways begin the
first regularly scheduled commercial supersonic
transport (SST) flights.
Tax
Season Is Right Around the Corner
| Tax
Appointments |
Whether
or not you are missing some of your tax
information
Appointments (K-1's, etc.) make your appointment
early this year. March 31, 2006 is the appointment
deadline so that we may prepare your personal
income tax return, forward it to you for
your approval, and transmit it to the Franchise
Tax Board and Internal Revenue Service.
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| Form
571-L |
Parker
& Riddick can prepare your Business
Property Statement, Form 571-L, Declaration
of Costs and Other Related Property Information.
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| 1099’s
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Annual
1099-Series returns must be furnished to
recipients by February 2, 2006, and to the
IRS by March 1, 2006. If you would like
Parker & Riddick to prepare your 1099
forms, please contact our office in order
to meet the January deadline. |
| W-2’s
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If
you need assistance with W-2’s, please contact
our office. W-2’s need to be to employees
by February 2, 2006. |
| Personal
Auto Usage |
It
is time to assemble information pertaining
to employees
who have utilized a company vehicle
for personal use during 2005 or received
other taxable fringe benefits. Employers
are required to submit to each employee
by February 2, 2006, a W-2 reflecting the
fair market value of the personal use of
a company vehicle. In order to determine
the taxable amount allocable to each employee,
a special formula must be used, so please
submit the following information to us:
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- The
make, model and year of the vehicle
- The
date the vehicle was purchased
- The
original cost of the vehicle
- The
total miles driven during 2005
- The
business miles driven in 2005
- The
commuting miles driven in 2005
- The
personal miles driven in 20005
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The
calculated fair market value of personal
use of a company vehicle for each employee
is subject to FICA, FUTA and SDI where
applicable. You will need to estimate
the total miles, business miles, personal
miles and commuting miles for the month
of December 2005 based on previous months.
If
your company engages the services of a
payroll computer service, you will need
to submit this additional W-2 information
for processing prior to its cut-off date
for year-end payroll processing.
This information is being requested
now to avoid possible payroll tax return
amendments. |
Four
Month Tax Calendar
JANUARY
31, 2006
Employers' Taxes - Employers must file returns
for employees' withheld income and FICA taxes
in last quarter of 2005 and for FUTA taxes for
2005.
Withholding
- Employees' statements (W-2 and 1099-R) for
amounts withheld in 2005 to be furnished by
employer to employees.
Individuals
- Individuals (other than farmers and fishermen)
who owed, but did not pay, estimated tax on
January 15 must file final 2005 income tax return
and pay tax in full to avoid late payment penalty.
Information
Returns - Annual 1099-Series returns must be
furnished to recipients. These recipients may
include independent contractors, recipients
of dividends, broker and barter exchange transactions,
proceeds from real estate transactions, certain
government transactions, royalty payments, prizes
and awards, and rents or other business payments.
FEBRUARY
15, 2006
Individuals - Last day for filing Form W-4 by
employees who wish to claim exemption from withholding
of income tax for 2005.
FEBRUARY
28, 2006
Information Returns - Annual 1099-Series returns
must be filed with the Internal Revenue Service
(IRS) and the Franchise Tax Board (FTB) to report
payments to recipients who received Forms 1099
on January 31, as indicated above.
Withholding
- Form W-2 must be filed with the Social Security
Administration, the IRS and the FTB.
MARCH
15, 2006
Corporations - Due date of 2005 income tax returns
for calendar-year U.S. corporations or calendar-year
foreign corporations with offices in the U.S.
Fiscal-year U.S. corporations and foreign corporations
with an office in the U.S. must file by the
15th day of the 3rd month following the close
of the tax year.
Due
date of 2005 income tax returns for calendar-year
S corporations.
Last
date for filing application by calendar-year
corporations for automatic six-month extension
to file 2005 income tax return.
Last
date for a calendar-year corporation to file
an amended income tax return for the calendar
year 2002.
Next
Year's Standard Mileage Rate Decreases
From Post-August 2005 Rate
IRS
has announced that the optional standard mileage
rate has decreased 4¢ to 44.5¢ a mile
for all business miles driven after 2005, down
from 48.5¢ for the last four months of
2005. The rate for computing deductible medical
or moving expenses after 2005 is decreased to
18¢ a mile, down from 22¢ for the
last four months of 2005.
Although
IRS normally updates the mileage rates once
a year in the fall for the next calendar year,
back in September IRS increased the optional
standard mileage rates for the last four month
of 2005 by 8¢ to 48.5¢ a mile. IRS
made this special adjustment in recognition
of gasoline price increases.
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