Help Us Help You Avoid Tax Prep Fraud

Prepping for tax season is enough of a challenge…you shouldn’t have to fear getting ripped off when you go to file. But among the many legitimate tax preparation businesses in the state, there are a handful of shady companies that collect personal financial information under false pretenses or that file a customer’s tax return without consent and keep all or part of any refund. 

One type of tax and loan scam that has repeatedly surfaced over the past couple of years involves tax preparation businesses filing returns on behalf of consumers without their consent. These businesses initially solicit the consumers’ business with a promise of providing short-term loans.

Here are some tips to avoid becoming the victim of tax preparation fraud:

Be alert to promotions such as “holiday loans” or other short-term loans that can be used to gain the personal financial information needed to file an individual’s tax return.


Be careful providing personal financial information to a business unless you want the preparer to file your taxes. Make sure you provide clear direction and that the company specifically advises you on whether they intend to file your tax return.

Never sign an authorization permitting a company to file your taxes if you do not want the company to do so.

Never sign a document without first reading and understanding what it says.

Always insist upon receiving copies of all documents that you are required to sign or that identify the terms of a transaction and the charges you will be required to pay. Confirm, before signing, that you will receive copies. If a business does not agree to provide copies, don’t sign.

NEW JERSEY: Minimum Wage Changes Effective January 01, 2015

Dear Valued Clients:

To assist you with your planning for the New Year, we are posting to let you know that New Jersey has a minimum wage change effective January 01, 2015:

Non-Tipped Employees:  $8.38
Tipped Employees:  $2.13

We are happy to assist you in complying with this new minimum wage rate.  Failure to comply with minimum wage laws may result in substantial penalties. 

Kathryn C. Tiffany, LLC appreciates the opportunity to be an essential partner with you and your business.

4 Reasons to Use a Bookkeeping Service for Your Small Business

Many business owners are hesitant to hire a bookkeeping service to track their expenses. They may feel it is an unnecessary cost, or some may be uncomfortable giving a third party access to this privileged information. While these concerns are valid, there are many advantages to hiring an outside party to take bookkeeping off your hands that may outweigh drawbacks.

#1 Opportunity Cost

The bottom line is it takes time to keep your own books; this is time you could be spending on other areas of your business. If you are not an accountant or have little familiarity with software that assists with bookkeeping, the time it takes you to enter transactions into your ledger will be much higher than what is necessary. Think about cost not just in terms of the dollar amount you could save doing this yourself but also how much more you could earn for your business if you were not spending time keeping books. You may find it makes financial sense to bring in a third party, even if it involves some additional expense to your business.


#2 Accuracy

When you hire a bookkeeping service, you are employing an individual with accounting experience or even a certified accountant. These individuals know how to enter and classify your transactions. This not only helps keep your books accurate; it also helps for pre-tax planning. When you keep your books yourself, you may find a certain amount of procrastination is natural. You get busy, and you decide to close out the month on the third of next month instead of the thirtieth of this month. A person employed for the sole purpose of keeping the books will procrastinate less, check more often and usually do a better job.

#3 Conflict of Interest

You may be in a partnership or business arrangement where there is more than one individual with an interest in the accounting of your business. Even if you think you have a great business relationship, these relationships can easily turn sour if there is any accusation of misconduct with bookkeeping. Even an unintentional error at the hands of one person can cause a serious and unrepairable rift in a business relationship. Take the potential conflict of interest out of the situation, and use a third party to carry out the transactions. You and your business partners will be better able to deal with any potential issues if none of you are directly at fault.

#4 Outsourcing

Today, there is no need to hire an in-house bookkeeper or accountant for most small businesses. If your transactions demand a daily, full-time accountant, then it may be the time to seek one. However, if you simply need someone for a few hours a day or a few hours a week, consider outsourcing the job. You will save money on salary and benefits to the individual. With the advances of Internet technology, communicating with a third-party accountant is as simple as sharing your information with an external hard drive. You do not even need to have the bookkeeper in the office if you can share files effectively.

Original article can be found at FW