Hey Tax Pro!


February 2019

Tax season is the perfect time to spotlight the importance of including college savings as part of an overall savings strategy, and why ScholarShare 529, the California college savings plan, is the ideal program.

ScholarShare 529 is the California state-sponsored, tax-advantaged 529 college savings plan. Earnings in a ScholarShare 529 plan grow free from Federal tax. Paying fewer taxes translates to more earnings, allowing the account to grow that much faster — giving the beneficiary an even bigger head start.

 Indian Pretty Lady

Wages paid to nonresident aliens employed within the United States by an American or foreign employer, in general, are subject to Social Security/Medicare taxes for services performed by them within the United States, with certain exceptions based on their nonimmigrant status. This article discusses which classes of nonimmigrants and nonresident aliens are exempt from U.S. Social Security and Medicare taxes.

How many nonimmigrants overstay their visas and refuse to return to their country of origin?

According to the Department of Homeland Security, more than 600,000 foreign travelers overstayed their visas in 2017. Click here to view the full report : https://www.dhs.gov/sites/default/files/publications/18_0807_S1_Entry-Exit-Overstay_Report.pdf 

Is an H-1B visa holder a permanent or temporary resident?

The United States Citizenship and Immigration Services (USCIS) does not consider an H-1B visa holder a permanent resident. They are a nonimmigrant alien. The Internal Revenue Service (IRS) may consider the H-1B visa holder a resident if they meet the substantial presence test. They will never meet the green card test because they are not a lawful permanent resident per the definition of the USCIS.




A New Year’s Business Compliance Checklist for Your Small Business Clients

As you know, when your clients keep their financial records and tax filings in order and on-time, it can save them (and you) lot of time and spare them from headaches. To make sure that this New Year is indeed a happy one, your clients should also be aware of the ongoing compliance requirements they need to fulfill if their company is registered as an LLC or a corporation.


Completing the necessary business filings on time is critical for keeping their companies in good standing with the state(s) where they are registered. Corporations and LLCs that don’t stay compliant may face paying additional fees and penalties. Even worse, states might also revoke those companies’ “certificate of good standing,” which could mean the loss of personal liability protection or even dissolution.

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W-2s and 1099s:
How to Increase Tax Season Sales with Business Returns

You already serve your customers by handling their personal tax needs. But many of your customers are probably small business owners. Strengthen sales and client relationships by also filing their business returns, including W-2 and 1099 forms.

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IR-2019-01, January 7, 2019

WASHINGTON ― Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled.

UPDATE: Click the link to see our live discussion of the announcement: https://bit.ly/2RhwYiU 

suprised woman at her desk with palms up 

Updated as of January 7th @ 2pm PT - White House claims the IRS will now issue refunds!

We have good news and bad news.

The bad news: The IRS is among the government agencies affected by the government shutdown.

The good news: The IRS has a contingency plan in place which addresses which services the agency will and will not offer during the shutdown. Check it out: