Adjusted Gross Income (AGI)

This may be the most important tax term since the tax code uses the Adjusted Gross Income (AGI) to limit a vast number of tax benefits. AGI is basically a taxpayer’s gross taxable income from all sources (gross income) reduced by certain allowable adjustments, sometimes referred to as above-the-line deductions, which are deductible whether or not the taxpayer itemizes their deductions. The more frequently encountered adjustments include deductions for deductible IRA contributions, moving, alimony payments, higher education interest, forfeited interest and deductions for health insurance premiums, pension plan contributions and 50% of SE tax for self-employed individuals.

 

Watch out for Corporate Records Services scam

A client of mine asked me about completing a form and paying $125.00 to a company called Corporate Records Services. They sent him a very official looking letter asking for corporate information and a check for $125.00. For a sample of the letter, click here.

I just happened across a warning about this yesterday from one of my LinkedIn attorney contacts. He had this posted on his LinkedIn profile:

“Right now business corporation owners all over the area (possibly entire state) are receiving official looking green envelopes from “Corporate Records Service” calling for “Annual Minutes Requirement Statement”. Be warned — this is NOT an official government mailing, this is NOT the Illinois Secretary of State, and you are NOT required to send this private company your corporate information and credit card information. I could not find “Corporate Records Service” company registered in the IL SOS database or authorized to do business here. Consult your legal adviser before doing anything.”

So be warned!

By the way, we are publishing this only as a warning to others. Please don’t call our office requesting confirmation of whether the letter you received is correct. We are a very busy CPA firm and we have been fielding many calls about this. If you have a question, we advise you to contact your own CPA or attorney.

 

Fake Affordable Care Act Websites Target Consumers for Identity Theft

Computer hackers are creating phony Affordable Care Act (ACA) websites and are asking for consumers’ personal information, such as social security and bank account numbers. The Better Business Bureau (BBB) warns consumers to never give out personal information on the Internet before confirming that the website is run by the government.
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