• How do I contact the IRS for info and forms?

• How do I contact CT Department of Revenue Services for info and forms?

• Who do I contact in the firm for either audit or tax services?

• Does my non-profit organization need an audit?

• How much does an audit, review or compilation cost?

• How do I get specific information as to a CPAs license and qualifications?

• What are Social Security and Medicare wage bases and tax rates?

• What is standard mileage rate for vehicles?

• What are maximum contributions for profit sharing plans, IRAs and 401 K plans?

• What is the typical cost for a CPA to prepare my tax return?

• Do I have to pay taxes on my Social Security benefits?

• How has Solakian, Caiafa & Company performed on their most recent peer review?

• What is the Alternative Minimum Tax (AMT) and how does it affect me?

How do I contact the IRS for info and forms?
You can find the IRS on the web at www.irs.gov. If you are looking for information on your tax refund you can call 800-824-1040. Contact us directly if you need assistance, or Paul Caiafa if you would like more information about our tax services.

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How do I contact CT Department of Revenue Services for info and forms?
You can find the CT Department of Revenue Services on the web at www.ct.gov/drs. If you are looking for information on your tax refund you can call 860-297-5962. Contact us directly if you need assistance, or Paul Caiafa if you would like more information about our tax services.

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Who do I contact in the firm for either audit or tax services?
Michael Solakian, CPA and Managing Member heads up the firm’s Accounting & Auditing Practice and he is located in our Branford office. It is best to reach Mr. Solakian either by e-mail at solakian@solakiancaiafa.com or at 203-483-8115.

Paul A. Caiafa, CPA and Member heads up the firm’s Tax Practice and he is located in our Hamden office. It is best to reach Mr. Caiafa either by e-mail at caiafa@solakiancaiafa.com or at 203-248-8600.

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Does my non-profit organization need an audit?
If a non-profit organization solicits more than $50,000 of contributions from the general public it must register with the CT Department of Consumer Protection. If the organization’s annual revenue exceeds $200,000 it is required to have an annual audit. Contact Michael Solakian to obtain details.

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How much does an audit, review or compilation of financial statements cost?
Although it is not possible to quote an exact amount without additional details, generally speaking an audit may cost about twice as much as a review, and a review may cost about twice as much as a compilation. If the audit is in accordance with Federal or state Single Audit provisions, the cost will be greater. Contact Michael Solakian for further details.

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How do I get specific information as to a CPAs license and qualifications?
You can contact the CT State Board of Accountancy at 860-509-6182. The Executive Director is David Guay, and they are located at 30 Trinity Street Hartford, CT 06115-0470. For more information: please refer to http://www.ct.gov/sboa/site/default.asp or by email: sboa@ct.gov.

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What are Social Security and Medicare wage bases and tax rates?
Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. This limit increases each year with increases in the national average wage index. This annual limit is called the contribution and benefit base. For earnings in 2009 and 2010, this base is $106,800.

The OASDI tax rate for wages paid in 2009 is set by statute at 6.2 percent for employees and employers, each. Thus, an individual with wages equal to or larger than $106,800 would contribute $6,662.00 to the OASDI program in 2009 and 2010, and his or her employer would contribute the same amount. The OASDI tax rate for self-employment income in 2009 and 2010 is 12.4 percent. (Tax rates of 1.45 percent for employees and employers, each, and 2.90 percent for self-employed persons, are applied to all earnings—without a taxable maximum—under Medicare's Hospital Insurance program.) You can get more details at www.ssa.gov.

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What is standard mileage rate for vehicles?
There are different standard mileage rates depending on for what purpose a car was driven.

Business mileage
• 55 cents per mile

Medical or Moving mileage
• 24 cents per mile

Charity mileage
• 14 cents per mile

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• Maximum Compensation $230,000
• Social Security Wage Base $106,800
• 401(k) Contribution Maximum $16,500
• 401(k) Catch Up Contribution Maximum $5,500
• Annual Addition Limit $49,000
• Maximum IRA and ROTH IRA for 209 $5,000
• IRA Catch Up Contribution Maximum $1,000
  

The 'Annual Addition Limit' is the maximum permissible allocation per participant in a defined contribution plan (i.e. 401(k) plan, profit sharing plan, etc.). The limit includes 401(k) contributions, employer matching and profit sharing contributions and the allocation of plan forfeitures. The limit does not include 'Catch Up' contributions. 'Catch Up' contributions are additional 401(k) salary deferral contributions permitted under a 401(k) plan for participants age 50 and older. Therefore, a participant age 50 or older could receive contributions in 2009 totaling $54,500 ($49,000 of annual additions plus $5,500 of 'Catch Up' contributions). Contact Paul Caiafa for more details.

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What is the typical cost for a CPA to prepare my tax return?

Although costs vary depending on time it takes to prepare the return, we generally charge a minimum of $500 for a federal and CT individual tax return. Fees for preparation of corporate or partnership returns will generally be more. We will be glad to give a more detailed estimate, so contact us for more information.

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Do I have to pay taxes on my Social Security benefits?

How much, if any, of your Social Security benefits are taxable depends on your total income and marital status. Generally, if Social Security benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return. If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status.

You can do the following quick computation to determine whether some of your benefits may be taxable:

• First, add one–half of the total Social Security you received to all your other income, including any tax exempt interest and other exclusions from income.
• Then, compare this total to the base amount for your filing status.

The 2009 base amounts are expected to be:

• $32,000 for married couples filing jointly
• $25,000 for single, head of household, qualifying widow/widower with a dependent child or married individuals filing separately who did not live with their spouses at any time during the year
• $0 for married persons filing separately who lived together during the year
  For additional information on the taxability of Social Security benefits, see IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Publication 915 is available on the IRS Web site at IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676).

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How has Solakian, Caiafa & Company performed on their most recent peer review?

We received an unmodified peer review report on our most recent review and received no comments. This is the best report that can be issued, and we will gladly provide a copy of our report upon request.

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What is the Alternative Minimum Tax (AMT) and how does it affect me?

The alternative minimum tax (or AMT) is an extra tax some people have to pay on top of the regular income tax. The original idea behind this tax was to prevent people with very high incomes from using special tax benefits to pay little or no tax. But for various reasons the AMT reaches more people each year, including some people who don't have very high income and some people who don't have lots of special tax benefits. Congress is studying ways to correct this problem, but until it does, almost anyone is a potential target for this tax. We urge you to contact your U.S. senator or congressperson and tell them that they need to address this problem.

The name comes from the way the tax works. The AMT provides an alternative set of rules for calculating your income tax. In theory these rules determine minimum amount of tax that someone with your income should be required to pay. If you're already paying at least that much because of the "regular" income tax, you don't have to pay AMT. But if your regular tax falls below this minimum, you have to make up the difference by paying alternative minimum tax.

If you would like additional details on AMT contact Paul Caiafa in our Hamden office.

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