Located at:

38 Fraley Street

Kane, PA 16735


Fax (814) 837-2267

Phone( (814) 837-9150

  Most people work in their business!   The solution is to work on your business!  

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2010 Year End Business Client Letter
We are once again writing to remind you of law changes, problem areas, and information we will need to prepare your business tax return.

Problem Areas Faced by Businesses




  Physical Inventories
The IRS has placed an increased emphasis in a court case this year on actual physical inventory on hand at year-end. Please make sure to physically count your inventory, retain the records, and provide us with the accurate total cost of inventory on hand at your year-end. Do not include consignments you are holding from other people in this number. In the event of an audit you must be able to provide copies of physical count sheets, so we are this year placing an increased emphasis upon obtaining correct year end physical inventory amounts.
  Your Corporate Minutes
We also want to remind you to make sure that your corporate minutes must be maintained on an annual basis-we do not maintain these forms for you, they are maintained by the officers of the corporation. Of course only S and C corporations are required to maintain minutes, LLC’s have no such requirement.
  Sales Tax Audits
Sales tax audits continue to increase. In general you must pay sales tax on any items you purchase that is not re-sold including office supplies, equipment, online and out of state purchases. You need to charge sales tax on any Pennsylvania taxable items you sell, except for those customers for whom you have a valid exemption certificate on file. Make sure that you file sales tax returns in all states in which you have an office, store, salespeople or other presence.
Major changes have been made in depreciation rules this year, so please call us if you have bought or are considering the purchase of any major equipment or buildings.

Tax Return 8-Point Information Needed


As usual we also need the following information to prepare your business tax return for this year (Check off as completed): 

  1. Copies of any new bank loans obtained during the year,
  2. Copies of any federal or state tax correspondence received during the year,
  3. Copies of any equipment purchase invoices over $500,
  4. Loan payoffs, by loan number, of all business loans at year-end,
  5. Copies of your year-end bank reconciliation(s),
  6. Year-End Balances of:
    1. Accounts Receivable;
    2. Cost of Inventory on Hand;
    3. Unpaid 941 Deposit;
    4. Unpaid State(s) Withholding deposits;
    5. Unpaid Sales & Uses tax:
    6. Unpaid wages earned thru year-end
  7. Engagement letter needs to be signed and returned,
  8. Year end summary of business activity-back up or hard copy (copy of your Quickbooks/Peachtree file  or back-up, trial balance, etc.).


If you use QuickBooks, we will require that you restore and close out 2010 information after we complete your work so that your records match the tax returns filed with the IRS. Our office can restore and close out 2010 information if you wish at a flat fee of $350 for any client if we have prepared your tax returns.
  Password Protection  
    Remember the password format for documents that we email to you follows either an either 8 (eight) or 9 (nine) character format. Most document will consists of the 8 (eight) character format. However, in some cases, it may be a 9 (nine) character format.

Protection using 8 (eight) character protection:

·        INDIVIDUAL— An 8 (eight) character protection will consists of the first four letters of your last name (in lower case) follow by the last four digits of your social security number. In the case of husband and wife, the social security number will be that of the husband. For example, Ralph and Mary Smith with a Social Security number of the husband of 123-45-6789 would have a password of smit6789.

·        CORPORATION— An 8 (eight) character protection will consists of the first four letters of your COMPANY NAME (in lower case) follow by the first four digits following the hyphen of your federal employment identification number. For example, The Smith Corporation with a federal employment identification number of 12-3456789 would have a password of smit3456.

Protection using 9 (nine) character protection:

·        INDIVIDUAL and CORPORATION — All 9 (nine) character protection will consists of the above character protection, with an underline separating the letters and the numbers. Using the above examples, a password for an INDIVIDUAL using a 9 (nine) character protection would be: smit_6789 and a CORPORATION using a 9 (nine) character protection would be: smit_3456.