Welcome to The Golden Onyx Tax Consulting
dedicated to saving you time and money
* Income tax return preparation and Electronic-filing services:
Accurate,
smart and fast for
individuals and small
businesses (including
federal, all states,
local and foreign
returns).
A
properly, professionally prepared
tax return can leave significantly
more money in your pocket and
give you a peace of mind.
Isn't it time to do yourself
a favor and let a professional
prepare your taxes? Very often,
the money saved by little known
deductions more than offsets
the cost of preparation...
* Enrolled
Agent Service:
An
Enrolled Agent
(EA) is an individual
who has demonstrated
technical competence
in the field of
taxation and is
the only taxpayer
representatives
who licensed by the federal
government (CPAs
and attorneys are
licensed
by the
states). Only
EAs, attorneys
and CPAs may represent
taxpayers
before all
administrative levels of the Internal
Revenue Service.
EAs advise, represent and prepare
tax returns for individuals
and any entities with tax-reporting
requirements and also effectively
represent taxpayers audited by
the IRS. Unlike attorneys
and CPAs, who may or may not
choose to specialize in taxes,
all EAs specialize in taxation.
Please read below for
more info.
* Refunds
Now™ service: 
- Refund Anticipation Loan- your tax money in days, not weeks!
- Electronic Refund Check- your tax money in 7 to 14 days!
OR
* Tax
planning service:
Effective tax minimization
begins with a long-term
tax strategy to
establish overall
objectives and
is maintained with
consistent annual
and mid-year tax
planning.
* Bookkeeping
and payroll services:
complementary
services for small
businesses
We
stay on the "leading
edge" of the
ever-changing tax
laws through Continuing
Professional
Education courses.
Feel free to contact
us anytime. We're here
to help and are motivated
to make you happy.
We also offer weekend, evening and night appointments.
Thanks!
Paz Shoham (MBA), Enrolled
to Represent Taxpayers
Before the IRS
a
member of the National
Association of Tax Professionals and
National Association of Enrolled
Agents
Please Call or Email for an appointment:
NYC & LA : Paz
Shoham,
|
LA: Nitza
Abramovitz, |
 |
|
|
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All About Enrolled Agents
Enrolled Agents: The Tax Professionals
What is an Enrolled Agent?
An Enrolled Agent (EA) is an
individual who has demonstrated
technical competence in the field
of taxation. Enrolled Agents,
or EAs, can represent taxpayers
before all administrative levels
of the Internal Revenue Service.
What
does the term "Enrolled
Agent" mean?
" Enrolled" means EAs
are licensed by the federal government. "Agent" means
EAs are authorized to appear in
place of the taxpayer at the Internal
Revenue Service. Only EAs, attorneys
and CPAs may represent taxpayers
before the IRS. The Enrolled Agent
profession dates back to 1884 when,
after questionable claims had been
presented for Civil War losses,
Congress acted to regulate persons
who represented citizens in their
dealings with the Treasury Department.
How can an Enrolled
Agent help me?
EAs advise, represent and prepare
tax returns for individuals,
partnerships, corporations, estates,
trusts and any entities with
tax-reporting requirements. EAs
prepare millions of tax returns
each year. EAs' expertise in
the continually changing field
of tax law enables them to effectively
represent taxpayers audited by
the IRS.
What are the differences
between EAs and other
tax professionals?
Only Enrolled Agents are required
to demonstrate to the Internal
Revenue Service their competence
in matters of taxation before
they may represent a taxpayer
before the IRS. Unlike attorneys
and CPAs, who may or may not
choose to specialize in taxes,
all EAs specialize in taxation.
EAs are the only taxpayer representatives
who receive their right to practice
from the United States government.
(CPAs and attorneys are licensed
by the states.)
How does one become
an Enrolled Agent?
The EA designation is earned
in one of two ways: (1) an individual
must pass a difficult two-day
examination administered by the
IRS which covers taxation of
individuals, corporations, partnerships,
estates and trusts, procedures
and ethics. Next, successful
candidates are subjected to a
rigorous back ground check conducted
by the Internal Revenue Service;
or (2) an individual may become
an EA based on employment at
the Internal Revenue Service
for a minimum of five years in
a job where he/she regularly
applied and interpreted the provisions
of the Internal Revenue Code
and regulations.
Are EAs required to
take continuing professional
education?
In addition to the stringent
testing and application process,
EAs are required to complete
72 hours of continuing professional
education, reported every three
years, to maintain their status.
Because of the difficulty in
becoming an Enrolled Agent and
keeping up the required credentials,
there are fewer than 35,000 active
EAs in the United States.
Are Enrolled Agents
bound by any ethical
standards?
EAs are required to abide by
the provisions of U.S. Treasury
Department Circular 230. EAs
found to be in violation of the
provisions contained in Circular
230 may be suspended or disbarred.
Why should I choose
an EA who is a member
of the National Association
of Enrolled Agents
(NAEA)?
NAEA is the organization of and
for Enrolled Agents. The principal
concern of the Association and
its members is honest, intelligent
and ethical representation of
the financial position of taxpayers
before governmental agencies.
Members of NAEA are required to complete a minimum of 30 hours of continuing professional education each year in the interpretation, application and administration of federal and state tax laws in order to maintain membership in the organization. This requirement surpasses the IRS' required minimum of 16 hours per year.
Privilege and the
Enrolled Agent
The IRS Restructuring and Reform
Act of 1998 allows federally
authorized practitioners (those
bound by the previously mentioned
Circular 230) a limited client
privilege. This privilege allows
confidentiality between the taxpayer
and the Enrolled Agent under
certain conditions. The privilege
applies to situations where the
taxpayer is being represented
in cases involving audits and
collection matters. It is not
applicable to the preparation
and filing of a tax return. The
new privilege does not apply
to state tax matters, although
a number of states have an accountant-client
privilege.
Tax
Law Changes . .
.
Highlights of 2003 and
2004
Capital
Gains Rates
For sales and other dispositions
of property after May
5, 2003 (including installment
payments received after
that date), the maximum
tax rate for adjusted
net capital gains has
been lowered from 20%
and 10% to 15% and 5%,
respectively. The lower
rates for property held
more than five years
are eliminated, whereas
the new 15% rate applies
to gain that would have
qualified for the 18%
rate, and the new 5%
rate applies to gain
that would have qualified
for the 8% rate.
Child
and Dependent Care
Credit
Effective for 2003, the
maximum child and dependent
care credit is 35% of
AGI, with reduced credits
starting at $15,000.
The amount of eligible
expenses increased from
$2,400 for one child
and $4,800 for two or
more children, to $3,000
and $6,000 respectively.
The income deemed earned
by a student or disabled
spouse has risen to $300
(one child) per month
or $500 (two children)
per month.
Child
Tax Credit
For 2003 and 2004, the
maximum child tax credit
increased from $600 to
$1,000 for each qualifying
child. The qualifying
child must not have reached
age 17 by December 31,
2003. The amount of the
child tax credit that
taxpayers may claim in
2003 should be reduced
by any advance child
tax credit payment received.
Depreciation
The additional 30% bonus
depreciation increased
to 50% for qualifying
property placed in
service after May
5, 2003, and before
January 1, 2005.
Qualifying property
must still be brand
new MACRS property
with a class life
of 20 years or less.
The new law increased
the bonus depreciation
that may be deducted
with respect to passenger
automobiles from
$4,600 to $7,650.
The 30% depreciation
option continues
to remain in effect
following the same
criteria.
In addition, a new higher limit of $11,010 is the amount of bonus depreciation that may be deducted for any truck or van that is a qualified non personal use vehicle.
For 2003, taxpayers may expense up to $100,000 of qualifying property acquired for use in a trade or business. The phase-out threshold also increased from $200,000 to $400,000 on purchases of qualifying property. These amounts will be indexed for inflation for 2004.
Dividends
Beginning in 2003, qualified
dividends are subject
to the same 5% or
15% maximum tax rate
that applies to net
capital gains. The
lower rates apply
for both regular
and alternative minimum
tax. Qualified dividend
income does not include
any amount the taxpayer
elects to take into
account as investment
income for purposes
of deducting investment
interest.
Education
Credits
The maximum Lifetime
Learning Credit increased
to $2,000 for 2003, while
the Hope Credit remained
at $1,500. Both credits
are phased out when married
filing joint taxpayers'
MAGI is between $83,000
and $103,000 ($85,000
and $105,000 for 2004).
For all others, besides
married filing separately,
the phase out is between
$41,000 and $51,000 ($42,000
and $52,000 for 2004).
Elective
Deferrals
The maximum amount of
elective deferrals under
a salary reduction agreement
that could be contributed
to a qualified plan increased
to $12,000 ($14,000 if
the taxpayer was age
50 or over) for 2003
and $13,000 ($16,000
if the taxpayer is age
50 or over) for 2004.
For SIMPLE plans, the amount increased to $8,000 ($9,000 if the taxpayer was age 50 or over) for 2003 and $9,000 ($10,500 if the taxpayer is age 50 or over) for 2004.
HSAs are available for tax years beginning January 1, 2004. An HSA works like an IRA, but funds are exclusively for medical expenses. HSA owners must carry a high-deductible medical insurance policy. Like IRAs, funds saved in HSAs are 100% tax-deferred until distribution. Taxpayers may contribute the lesser of the annual deductible for medical insurance coverage, or up to $2,600 for singles, or $5,150 for families. There is an additional catch-up provision of $500 for taxpayers age 55 or older in 2004. This catch up provision gradually increases in subsequent tax years to $600 in 2005, $700 in 2006, $800 for 2007, $900 for 2008, and $1,000 for 2009 and thereafter. For more information, see pages 1 and 3 of this publication.
Self-Employed
Health Insurance
Deduction
Beginning in 2003, the
self-employed health
insurance deduction percentage
increased from 70% to
100%.
Social
Security
The maximum wages subject
to social security tax
increased to $87,000
($87,900 for 2004).
Tax
Rates
The 2003 tax rate schedules
have been revised to
reflect the following
changes:
The
2002 tax rate brackets
of 27%, 30%, 35%,
and 38.6%, have been
reduced to 25%, 28%,
33%, and 35%, respectively
for 2003.
For 2003 and 2004, the
15% rate bracket for
married taxpayers filing
jointly and qualifying
widow(er)s has expanded
to twice that of single
filers. After 2004, the
15% bracket falls to
180% of the maximum taxable
income in the same bracket
for unmarried individuals,
as adjusted for inflation.
The maximum taxable income
subject to the 10% tax
rate has increased to
$7,000 for single taxpayers
and married taxpayers
filing separately [$14,000
for married taxpayers
filing jointly and qualifying
widow(er)s].
Tuition
and Fees Deduction
Beginning in 2004, the
amount of qualified education
expenses that taxpayers
may take into account
for computing the tuition
and fees deduction increases
from $3,000 to $4,000
if their MAGI is not
more than $65,000 ($130,000
if they are married filing
jointly). No tuition
and fees deduction will
be allowed if the taxpayer's
MAGI is more than $80,000
($160,000 if they are
married filing jointly).