Category Archives: Tips

Speeding Up Access to QBO Reports in Excel

If you’re a QuickBooks Online user — be it accountant or business-owner or bookkeeper — then you know that when you download a QBO report to Excel using Chrome or Firefox, the resulting file name appears at the bottom of the browser window. Usually the next step is to click the file name to open the report in Excel.

However, today I learned a great new trick from David Ringstrom, contributor to the AccountEx Report and Excel guru.

Going forward, Chrome and Firefox can open Excel files automatically for you. The next time you download a QBO report to Excel, once it’s sitting at the bottom of your browser window, just click the arrow adjacent to the file name and select “Always Open Files of this Type”. Magic.

As he notes, however:

Unfortunately, this ability to open files automatically after download is not available in the Edge or Safari browsers. You’ll also have to open reports manually if you use the QuickBooks Online desktop app. The app will prompt you to choose a name for your report, but you’ll then need to manually open the report in Excel by navigating to the folder where you saved the workbook.

He also has some nice tips for unraveling automatic downloads (which I don’t personally allow — I have my system set up to prompt me each time a report is downloaded so that I can rename it and save it where I need it). For those who defer to most browsers’ default “downloads” folder, this later section of the article is particularly handy.

Give it a try! Read the entire article here:

Speeding Up Access to QuickBooks Online Reports – Accountex Report

Pass-through Entities and Sec 199A

Accounting Today recently wrote up a good article on the challenges of the new Sec 199A — popularly known as the “20% Pass-Through Deduction”. I encourage giving it a read. I think the best takeaway for accountants and others running personal service companies comes from the last paragraph:

“Most accountants that are in a flow-through entity should probably continue that way,” Wheelwright said. “I don’t know any accounting professionals that leave money in the business, and if you’re going to take money out, it doesn’t make sense to be a C corporation,” he said. “Where being a C corporation does make sense is if you’re going to reinvest a large portion of the profits back into the business. Because of the double tax related to C corporations [the corporate tax plus the tax on dividends], most pass-throughs will want to continue to be pass-through entities.”

-Tom Wheelwright, Founder and CEO of ProVision

In a related article, Accounting Today reports:

“The National Society of Accountants wants the Internal Revenue Service to provide a six-month extension for businesses to make an election to be treated as S corporations for this year, arguing the current deadline of March 15 is just not enough time to make a decision given the uncertainty surrounding the new tax law.”

“By allowing a six month extension to Sept. 15, 2018, for a corporation to make an election to be treated as an S corporation for the current calendar year would afford time for all affected parties, as well as their tax adviser, to read and understand any such regulations and how they may impact their tax liabilities.”

-John Ams, NSA Executive Director

Shop Small — Shop Our Clients!

I’m very excited to announce that I’ve created a page on The Dancing Accountant website linking to some of my clients so that you can find them and become a patron. I couldn’t be prouder of their accomplishments and I wanted to share my enthusiasm with blog readers… and maybe inspire you to share yours as well.

If you follow my blog, you already know that my work isn’t just a job. I honestly feel it’s a calling — a mission. I try to keep my prices low for the industry, offer payment plans, remain accessible to clients at all times, and offer services outside-the-box… stretching my knowledge and abilities as far as I can, taking approximately three times the required continuing education each year, in wide-ranging topics that affect my clients.

Why? Why bother? As I’m reminded regularly by colleagues, salespeople, networking contacts and self-proclaimed “coaches”, I could make so much more money working at a large CPA firm. Or: “Any continuing ed beyond the requirement is a waste of non-billable time.” Or: “You have a waiting list? Well, that’s proof that you should raise prices.” Or: “You should outsource your [fill-in-the-blank] to India; you’re stifling your growth otherwise.” (Note: these are all actual quotes I have been told more than once.)

I struggled for years asking myself why I had such emotional resistance to these criticisms. Aren’t I an astute business-person? Then why am I being insulted as being naive or idealistic or non-business-minded?

The answer is easy — at least now (it took years of soul-searching). I love working with small businesses, and I don’t want to price myself out of their ability to use my services. Part of that is a personal mission and part is selfish; I really want to support the small business economy, especially in my own neighborhood, where daily I see my clients being priced out in favor of big chains. These folks make our neighborhoods quirky, vibrant, and engaging… then people want to shop/dine there… then rents go up… then chains replace them. It’s so painful. I don’t want to be a part of that cycle.

And I want to offer them the services that they need — not just the ones on a pre-determined list of CPA offerings. I want to be able to answer their questions about running a business, not just keeping the books clean and paying taxes. I want my work to be personally rewarding. I love shopping at my clients’ stores, engaging their services, and eating at their restaurants. I love living in a place like Cheers — where everybody knows your name.

Shopping small and shopping local — you’re hearing more about it these days, as large chains and online retailers crush once-vibrant communities. We don’t have to be a part of that. An article in Forbes summed up some great reasons for supporting small businesses.

So: please Shop Our Clients! Shop yours. Go find a small business in your neighborhood you’ve never been in, and pay them a visit today. If you enjoy ordering online, try to choose websites of independently-owned businesses, or platforms like etsy that provide small businesses a sales venue. It’s a win-win-win.

(Note: if you are a client of mine and would like to be listed on The Dancing Accountant’s Shop Our Clients page, please comment below or contact me directly!)

Free Financial/Tax/Legal Resources for Chicago-area Residents

Recently I came across two sets of resources for Chicago-area residents that seem worth sharing.

The Center for Economic Progress is offering free tax preparation and assistance to individuals with incomes less than $30,000 and families with incomes less than $55,000. Complete site locations and hours are available as a downloadable pdf on their site.

The Circuit Court of Cook County has a free seminar series geared toward the elderly, though applicable and open to all. Upcoming topics include: powers of attorney, reverse mortgages, foreclosures, long-term care, funeral pre-planning, property tax savings, evictions, financial literacy, social security, bankruptcy, elder abuse and exploitation, and more.

Add to these the extensive list of workshops that the City of Chicago offers for small business owners, and I’d say we’ve got a pretty rich set of options for free financial, legal and tax assistance in our city of Big Shoulders.

Form 1095-C Decoder

I recently stumbled across this wonderful “decoder” for Form 1095-C — the form that you’ll receive from your employer if they provide your health insurance. You simply click on the line number and a pop-up window explains all the different codes that you might see on your copy, and what each one means. It’s a confusing form, with many options, and I think this interactive website does a great job clearing up the complexity and confusion.

Source: Form 1095-C Decoder – Tax Form Management

Partnership and S-Corp Medical Insurance Premiums for Owners

Recently I was doing some research for a couple different clients about various alternatives regarding paying for (or reimbursing) a closely-held company owner’s health insurance. I was going to write up a short blog post about the proper way to handle these, but there is one already out there written by a colleague that is so well-illustrated and to-the-point that I realized the better approach was to share it with you here.

The most important take-aways:
1) you can’t double-dip; and,
2) though the particular hoops that have to be jumped through are a) different for partnerships than for S-Corps, and b) a PITA for both, they are in fact the law and must be followed.

Source: Polito Eppich: Articles of Interest–1202 Stock – Partnership and S Corp Medical Insurance Premiums

February 9th Budget Bill Includes 2017 Retroactive Extenders

Thank goodness for the National Association of Tax Professionals! Today I received a cryptic message from the IRS that gave no details and made little sense:

IRS Statement on Retroactive Extender Provisions

Following is an IRS statement issued today, Feb. 9:

“The IRS is reviewing the legislation signed Feb. 9 that retroactively extended and modified numerous tax provisions covering 2017. We are assessing these significant changes in the tax law and beginning to determine next steps. The IRS will provide additional information as quickly as possible for affected taxpayers and the tax community.”

I immediately freaked out and thought, “What significant changes? For 2017? I’m already working on 2017 returns! Tell me more!”

Thankfully, I’m a member of NATP, which had sent out an email at exactly the same time, answering many of the questions I’d just asked. And unfortunately, it’s all true. Our government has decided to pass a 2017 tax extenders bill AFTER tax season has already started. AFTER the IRS has already released all their updated forms. AFTER the tax software companies have already programmed their systems. AFTER tax preparers have already completed their 2017 tax update educational coursework.

From NATP‘s Special Alert e-mail to members:

Newly-Passed Budget Bill Includes Retroactive Extenders
These could impact your clients’ 2017 tax return

This morning President Trump signed a budget bill averting yet another government shutdown. Tucked in the Bipartisan Budget Act of 2018 are several extender provisions that expired but are now available retroactively through Dec. 31, 2017.

The most notable extenders include:

Exclusion for discharge of indebtedness on a principal residence
The provision extends the exclusion from gross income of a discharge of qualified principal residence indebtedness through 2017. The provision also modifies the exclusion to apply to qualified principal residence indebtedness that is discharged pursuant to a binding written agreement entered into in 2017.

Premiums for mortgage insurance (PMI) deductible as mortgage interest
The provision extends the treatment of qualified mortgage insurance premiums as interest for purposes of the mortgage interest deduction through 2017. This deduction phases out ratably for taxpayers with adjusted gross income of $100,000 to $110,000.

Above-the-line deduction for qualified tuition and related expenses
The provision extends the above-the-line deduction for qualified tuition and related expenses for higher education through 2017. The deduction is capped at $4,000 for an individual whose adjusted gross income (AGI) does not exceed $65,000 ($130,000 for joint filers) or $2,000 for an individual whose AGI does not exceed $80,000 ($160,000 for joint filers).

Three-year depreciation for race horses 2-years-old or younger
The provision extends the 3-year recovery period for race horses to property placed in service during 2017.

Also incorporated into the bill is a series of additional provisions that will go into effect for the 2018 tax year. The following are noteworthy:

Requirement for new Form 1040SR for seniors
The provision requires that the IRS publish a simplified income tax return form, designated a Form 1040SR, for use by persons who are age 65 or older by the close of the taxable year. The form is to be as similar as possible to the Form 1040EZ. The use of Form 1040SR is not to be restricted based on the amount of taxable income to be shown on the return, or the fact that the income to be reported for the taxable year includes social security benefits, distributions from qualified retirement plans, annuities or other such deferred payment arrangements, interest and dividends, or capital gains and losses taken into account in determining adjusted net capital gain. This provision is effective for taxable years beginning after the date of enactment.

Prohibition of modifying user fee requirements for installment agreements
The provision prohibits increases in the amount of user fees charged by the IRS for installment agreements. In addition, the IRS is required to waive the fees imposed for installment agreements for taxpayers whose income falls below 250 percent of the poverty line and have agreed to make the payments by electronic means through a debit account. Further, for those taxpayers whose income falls below 250 percent of the poverty line, are unbanked, and successfully complete an installment agreement, the fee would be reimbursed at the end of the installment agreement period.

Individuals held harmless on improper levy on retirement plans
The provision allows amounts, including interest, returned to an individual from the IRS pursuant to a levy to be contributed to the IRA, or employer-sponsored plan, without regard to normal contribution limits. In addition, the IRS is required to pay interest on an amount returned. The provision is effective for levied amounts, and interest thereon, returned to individuals in taxable years beginning after December 31, 2017.

The Joint Committee on Taxation released the estimated budget effects of the revenue provisions contained in the Bipartisan Act. With more than 40 tax provisions affected, we recommend that you find time during this busy season to review the tax summary of the bill.

And I couldn’t agree with them more.
Step 1: Join NATP if you’re a tax preparer.
Step 2: Review the extenders package. ASAP.

I’ve never seen an extenders bill passed after tax season has already started. This is irresponsible on the part of our government, and that’s not a political statement.

In the words of the Tax Foundation:

Retroactive changes like this are poor public policy and should not be expected to contribute to long run economic growth. Further, this is not a productive way to build on a tax reform bill designed to improve the tax code. Businesses and individuals have already made their decisions for 2017 and cannot go back and choose to invest differently in light of the new tax breaks—and counting on regular tax break extensions when planning ahead is no longer a sure bet. The uncertainty surrounding tax extenders is one of the most persistent features of tax policy discussions, and that should change.

However, it’s our job as tax preparers to make sure we’re looking out for our clients. So, even though the organizers we sent them don’t mention PMI or tuition deductions, let’s make sure to ask these additional questions to clients as their return prep work makes it into the office. And let’s hope the IRS and software preparers can get those lines and others back on the forms before too many more returns are filed.

Reminder: Jan 31 Filing Deadline Now Applies to All Wage Statements and Independent Contractor Forms

This went into effect last year, but it seems some folks missed that announcement, or thought it was only for last year, or just plain forgot. Because I’m getting a lot of surprised, blank stares when I remind folks that information returns are due by January 31st.

This most often refers to W-2 and 1099-MISC forms, because they report income and withholding to recipients, and the IRS needs this information to be able to accurately process (and computer-check) their individual returns that declare the income and withholding as part of their tax liability computations. The IRS hopes to catch folks in the first month of the filing season who misstate these items, and this way, they can compare the information submitted by payers to the information declared on returns by filers.

The application to extend these return due dates is no longer automatic.  There is a new address, and faxes will not be accepted anymore.

The IRS will only grant extensions for very specific reasons — such as: records being lost in a disaster; or, the person responsible for filing the returns has an unavoidable absence; or other inescapable scenario.

The best advice I can give for meeting this challenging deadline is:

  1. Do not pay anyone for services rendered, rent, royalties, or a settlement without first obtaining a signed W-9 form (or W-4 form in the case of an employee or household employee); this form is where they tell you whether they are incorporated or not (if they are, you do not need to send a 1099), and they give their address and tax ID number.
  2. Have your books reviewed by a professional accountant or bookkeeper each quarter. My staff accountant looks at our clients’ books for missing payee information, as well as folks that may be contractors for whom we do not have a W-9 already on file from the previous year. She reviews transactions in accounts that often have service providers’ activity tracked in them, such as: Repairs & Maintenance, Professional Services, Leasehold Improvements, Contracted Services, Legal & Accounting, Independent Contractors, Temporary Help, Cleaning, Payouts, Miscellaneous, and so on. That way we can have business owners inquire early-on for W-9 information (if they’ve forgotten to obtain it when payment was rendered).
  3. Order your 1099 forms early so they get to you on-time, if you’re preparing them yourself. If your accountant is preparing them, inform them asap that you’d like for them to do so, and reconcile your books as quickly as possible after the year-end.

Source: Reminder to Employers and Other Businesses: Jan. 31 Filing Deadline Now Applies to All Wage Statements and Independent Contractor Forms | Internal Revenue Service

IRS Urges Travelers Requiring Passports to Enter into Payment Agreements

Signed into law in December 2015, the FAST Act requires the IRS to notify the State Department of taxpayers the IRS has certified as owing a “seriously delinquent” tax debt, and requires the State Department to deny their passport application or renewal of their passport. (In some cases, the State Department may revoke their passport entirely.)

Taxpayers affected by this law are those with a seriously delinquent tax debt — someone who owes the IRS more than $51,000 in back taxes, penalties and interest (indexed yearly for inflation) for which the IRS has filed a Notice of Federal Tax Lien and the period to challenge it has expired or the IRS has issued a levy.

Taxpayers can request a payment agreement with the IRS by filing Form 9465. Taxpayers can download this form from and mail it along with a tax return, bill or notice. Some taxpayers can use the online payment agreement to set up a monthly payment agreement for up to 72 months.

Some financially distressed taxpayers may qualify for an offer in compromise. This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. The IRS looks at the taxpayer’s income and assets to determine the taxpayer’s ability to pay. To help determine eligibility, use the Offer in Compromise Pre-Qualifier, a free online tool available on

More here from the IRS newsroom: IRS Urges Travelers Requiring Passports to Pay Their Back Taxes or Enter into Payment Agreements; People Owing $51,000 or More Covered

2018 Tax Season Begins Jan 29; Tax Returns Due Apr 17

Big news — The IRS has finally announced the day they will begin accepting e-files: January 29th. And Tax Day is April 17th — making it a shorter-than-usual season, based on the number of days in-between.

Therefore, we encourage getting your books and tax prep docs together ahead-of-time, making fourth-quarter estimates based on these reconciled books, and getting in-line with your tax preparer asap, so as to avoid any bottlenecks. Your tax accountant can prepare your return ahead of the due date and simply check for new form updates the day filing opens — then your return will be one of the first in the queue.

More here: 2018 Tax Filing Season Begins Jan. 29, Tax Returns Due April 17; Help Available for Taxpayers | Internal Revenue Service