Category: Professional Tax Articles

It’s no secret that tax time is the busiest time of the year for accountants and tax preparers. While it’s important to get some much needed rest and relaxation during the off season, it’s also the best time to evaluate what’s working for your tax business and what’s not.

One important consideration is the current tax prep software you are using. It is providing you with a user-friendly experience? Does your tax prep software have all the bells and whistles you need to better serve your clients? If not, the offseason is the best time to consider changing tax prep software.

Making the Choice

We know that the market is flooded with software promising to simplify tax preparation. We also know you, as a tax professional, have many options. That’s why we’d like to walk you through the benefits of using Sigma Tax Pro, a comprehensive tax prep software that allows you to not only prepare taxes with ease and file the best returns for your clients, but also allow you to organize documents and keep track of your clients throughout the year – not just during the busy tax season.

Interested in learning more? Keep reading.

Sigma Tax Pro takes innovation to the next level. And, the offseason is the perfect time to explore its capabilities. Whether you are a small accounting firm or a tax preparer with a large client base, know that Sigma Tax Pro can offer you the solution you need to not only simplify tax preparation, but also help you organize your financial and accounting records.

Your Tax Preparation Software Options

Sigma Tax Pro is happy to provide you with two very viable options of our innovate tax preparation software.

• Option 1: The Sigma 1040-DR package takes the basic Sigma 1040-CL to the next level. Not only do you get the same innovative features, but you can also convert archived files directly into the software platform, utilize the step-by-step tax preparation interview method and process state and federal business tax returns. Find the support your need with an exclusive account manager and utilize the features that allow you to compare the results of filing jointly or separately.
• Option 2: Prepare yourself for the big time with Sigma 1040-TW, the top-of-the-line tax preparation software that includes forms and interview methods to simplify data entry as well as the option to transfer files from previous years into the software. Take advantage of the profiling, executive and power accounting features, as well as all of the features available with the Sigma 1040-CL and Sigma 1040-DR packages.

While time is limited during the busy tax season, your off season is the perfect time to explore the capabilities of Sigma Tax Pro tax preparation software.

The Ultimate Tax Prep Software: Sigma Tax Pro

If you’re seeking to simplify the process of running your tax prep or accounting business, it’s time to invest in one of the Sigma Tax Pro packages. This innovative software is perfect for accounting professionals who need a simpler option for organizing documents, receipts and forms. Sigma Tax Pro offers professional tax preparation software with bank products and best-in-class technical and tax prep support. Including software for form 1040 preparation as well as 1120, Sigma has everything you need to make your tax preparation business successful this season.

The TCJA has imposed new rules aimed to assist nonprofit organizations in the calculation of nondeductible parking expenses that were once deductible before the passage of the new act.  The IRS has issued interim guidance related to the treatment of qualified transportation fringe benefit expenses compensated or incurred after December. 31st, 2017. This interim guidance may also help nonprofit taxpayers find out how these new nondeductible expenses can positively or negatively affect unrelated business taxable income, also known as UBTI.

The guidance provided by the IRS comes in response to objections from several nonprofit organizations to the newly imposed taxes within the Tax Cuts and Jobs Act in relation to parking expenses. The IRS conceded that this interim guidance has been issued quite late in the year.  For said reason, the IRS has stated that taxpayers can rely on this interim guidance (until more guidance is given) or use any justifiable method for calculating nondeductible employee parking expenses.

A significant point of the guidance is a particular rule that gives employers the right to retroactively decrease the amount of nondeductible parking expenses stated on Form 990-T.  Employers will have until March 31st of 2019 to update their parking records in order to lower or terminate the amount of reserved parking they have set for their employees.

In making these updates, many tax-exempt organizations may be able to reduce their UBTI quite significantly by acting before the end of March, 2019.  Mitch Elbarki of Sigma Tax Pro states “Tax professionals should definitely take this as an opportunity to proactively reach out to their tax-exempt clients to help reduce their overall UBTI…I am confident their clients will be quite grateful to say the least.”

In light of the Tax Cuts and Jobs Act passed last December, the IRS has issued proposed regulations for both businesses and individuals in regards to foreign tax credits.  The TCJA includes several significant changes on how the government taxes foreign activities. The proposed regulation issued earlier this week includes information and rules to help taxpayers and tax preparers determine taxable income from offshore sources.

After deciding to delay changes to Form W-4 until 2020, the Internal Revenue Service released Notice 2018-92, which offers interim guidance on income tax withholding for 2019.  The IRS did release a draft version of a new Form W-4 earlier this year, however it was received with heavy criticism from accountants and professional tax preparers alike.

Groups such as the American Institute of CPAs raised concerns in relation to the draft version of the new W-4.  Concerns raised included: privacy, risk of underwithholding, and the issue of taxpayers predicting tax-items that have been known to be quite difficult to forecast.  Due to these criticisms, the IRS and Treasury Department have decided to postpone changes in the withholding form.

The notice released by the IRS also asks for comments from taxpayers on the new withholding rules and procedures.  Mitch Elbarki, CEO of Sigma Tax Pro states “…the IRS asking for public comments on new withholding procedures should signify that they plan on more regulations to withholding rules in relation to changes made by the Tax Cuts and Jobs Act.”  Elbarki also went on to clarify that “…this is significant in that further regulation means taxpayers and tax preparers need to stay tuned on developments until 2020, where form rules and procedures are expected to be solidified.”

In terms of its features, the new 2019 Form W-4 will be quite similar to the  2018 Form W-4. The new “withholding allowance” terminology in the tax law is also addressed in the new W-4.  Additionally, the new notice states that for 2019, the default rule when an employee does not provide a Form W-4, will continue to be single with zero withholding allowances.

The notice also allows taxpayers to take the qualified business income deduction into account.  This deduction, under section 199A, reduces withholding under section 3402(m) of the tax code. The IRS and the Treasury plan to update the regulations to specifically allow taxpayers’ use of the online withholding calculator instead of the worksheets to Form W-4.

The news site hosting this press release is not associated with Sigma Tax Pro. It is merely re-publishing a press release announcement submitted by a company, without any stated or implied endorsement of the product or service. Please always consult with a tax professional.

For the last 36 years, Inc. has recognized the fastest-growing private companies in the United States.  Inc. has acknowledged companies that have proven to achieve not only strong, but consistent growth as well.  On average, companies that have been admitted onto the Inc. 5000 list in 2018 have established growth of over 500% since 2014.  Some companies recognized by Inc. over the years include Microsoft, Oracle, GoPro, Under Armour, and many other prominent businesses.  Sigma Tax Pro, a pioneering service bureau that supports tax professionals, has now joined the ranks of the prestigious companies being honored on this list.

Since its launch in 2013, Sigma Tax Pro has successfully demonstrated its ability to provide innovative professional tax preparer solutions to tax offices of all sizes.  The company’s mission statement is simple: “…to enable tax preparers to maximize their revenue and increase client satisfaction.” With over one hundred Google Verified Reviews at a 5-star rating and becoming one of America’s fastest-growing companies, it is apparent that Sigma Tax Pro clients are quite content to say the least.

On the company’s induction to the Inc. 5000 list, CEO of Sigma Tax Pro, Mitch Elbarki states, “Our recognition by Inc. is attributed to our remarkable team and their deep and expansive understanding of our clients’ needs.  Our team has continuously raised the bar in providing valuable solutions to tax professionals, while surpassing expectations.  We are humbled by the acknowledgment from Inc. and will continue to strive for further growth by powering tax professionals for many years to come.”