Mr. Hawk is the Managing Member of Swindoll, Janzen, Hawk & and Loyd, LLC, (SJHL) a multi-faceted accounting firm, established in 1936 that offers a wide range of services to companies, individuals and organizations.

In his announcement, NACVA Chief Executive Officer, Parnell Black, MBA, CPA, CVA, noted, "The Certified Merger and Acquisition designation is an indication to the professional community that Mr. Hawk has met the Association's rigorous standards of professionalism, expertise, objectivity and integrity in the field of mergers and acquisitions."

In addition to passing the comprehensive certification exam, requirements to earn the Certified Mergers and Acquisitions designation include holding a credential from a recognized institution demonstrating a high level of training and accomplishment in a field of business, finance, accounting, economics or business management and furnishing a number of professional references, among others.

To maintain his CMAP designation Mr. Hawk will be required to periodically obtain continuing professional education in areas related to the dynamic field of mergers and acquisitions.

"This CMAP designation is an impressive addition to Mr. Hawk's accomplishments and knowledge base," said Carver Swindoll, CPA, CVA, partner at SJHL. "Our firm is known for being imaginative, creative problem solvers and for our specialized training and credentials.  SJHL has extensive experience in providing consulting services related to mergers and acquisitions.  This certification clearly differentiates us as experts in this area," added Swindoll.

The middle market is made up of businesses with revenues of between $2 million and $500 million with values ranging from $4 million to $1 billion and middle market businesses comprise about 18% of all US businesses but represent about 90% of all merger and acquisition transactions. "Our focus is on the lower end of the middle market- on companies valued between $2 and $100 million," said Hawk. "Our skill set and experience make us perfectly suited to serve these companies that are way too small for Wall Street or large investment banks. The M & A activity level in the lower middle market has been strong over the past several years, but significant increases in activity levels are expected over the next 5 to 10 years as the Baby Boomer business exit hits full stride, the consolidation of many industries continues, and technology and information continue to drive change and innovation. We are uniquely suited to play a major role in this exciting and dynamic process," added Hawk.

2011 Dirty Dozen

1. Hiding Income Offshore . Individuals continue to try to avoid paying U.S. taxes by illegally hiding income in off-shore bank and brokerage accounts or using offshore debit cards, credit cards, wire transfers, foreign trusts, employee leasing schemes, private annuities, or insurance plans. The IRS, state, and U.S. possession tax agencies aggressively pursue taxpayers and promoters of these scams. In early February, the IRS announced a second voluntary disclosure initiative available through 8/31/11 designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes.

2. Identity Theft and Phishing. Identity theft occurs when someone uses an unsuspecting individual's name, Social Security number, credit card number, or other personal information without permission to commit fraud or other crimes, such as using someone else's personal information to file a fraudulent tax return and collect a refund. Phishing is a tactic used by scam artists to trick unsuspecting victims into revealing personal or financial information, usually by promising a tax refund if the victim provides this information. IRS impersonation schemes can take the form of emails, tweets, or phony websites.

Note: Warn clients not to open any attachments or click on any links in suspicious emails claiming to be from the IRS. Also, the IRS requests that suspicious emails and Web addresses that do not begin with http://www.irs.gov be forwarded to the IRS mailbox: phishing@irs.gov . Clients who believe their personal information has been stolen and used for tax purposes should immediately contact the IRS Identity Protection Specialized Unit at 1-800-908-4490.

3. Return Preparer Fraud. Dishonest preparers cause many problems for taxpayers falling victim to their schemes. Such preparers derive financial gain by skimming a portion of their clients' refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. The IRS is implementing a number of steps for future filing seasons aimed at thwarting such dishonest deeds. These include requiring all paid tax return preparers to register with the IRS and obtain a Preparer Tax Identification Number (PTIN), as well as both competency tests and ongoing continuing professional education for any paid tax return preparer who isn't an attorney, CPA, or enrolled agent.

4. Filing False or Misleading Forms. This tactic is used by scam artists who file false or misleading returns to claim refunds they are not entitled to receive. Frivolous information returns, such as Form 1099-OID (Original Issue Discount), claiming false withholding credits are used to legitimize erroneous refund claims.

5. Frivolous Arguments. Frivolous scheme promoters encourage people to make unreasonable and unfounded claims to avoid paying taxes. The IRS has a list of frivolous legal positions that taxpayers should avoid (search for "The Truth About Frivolous Tax Arguments" on www.irs.gov .)

6. Reporting Nontaxable Social Security Benefits with Excessive Withholding. The IRS is finding returns where taxpayers report nontaxable social security benefits with excessive withholding. This tactic increases withholding but not taxable income, thus inflating the taxpayer's refund. Often both the withholding amount and the reported income are incorrect. The IRS warns that this indiscretion can result in a $5,000 penalty.

7. Abuse of Charitable Organizations and Deductions. Misuses of tax-exempt organizations include arrangements to improperly shield income or assets from taxation, attempts by donors to maintain control over donated assets or income from donated property, and overvaluation of contributed property. Often, the donations are highly overvalued or the organization receiving the donation promises that the donor can purchase the items back at a later date at a price the donor sets.

8. Abusive Retirement Plans . The IRS continues to uncover abuses in retirement plan arrangements, including Roth IRAs. It is looking for transactions that taxpayers use to avoid the limits on IRA contributions (such as, shifting appreciated assets into IRAs or companies owned by their IRAs at less than fair market value), as well as transactions that are not properly reported as early distributions.

9. Disguised Corporate Ownership . Domestic shell corporations and other entities are formed and operated in certain states to disguise ownership of a business or financial activity. Such entities can be used to under-report income, claim fictitious deductions, avoid the filing of tax returns, or participate in listed transactions, money laundering, financial crimes, and even terrorist financing. The IRS is working with state authorities to identify these entities and bring their owners into compliance.

10. Zero Wages. Filing a phony wage-related or income-related information return to replace a legitimate information return has been used as an illegal method to lower the amount of taxes owed. Typically, a Form 4852 (Substitute Form W-2) or a "corrected" Form 1099 is used as a way to improperly reduce taxable income to zero. The taxpayer also may submit a statement rebutting wages and taxes reported by a payer to the IRS. The IRS warns that this scheme can result in a $5,000 penalty.

11. Misuse of Trusts . Unscrupulous promoters have urged taxpayers to transfer assets into trusts, promising reduction of income subject to tax, deductions for personal expenses, and reduced estate or gift taxes. However, some trusts don't deliver as promised. The IRS has recently seen an increase in the improper use of private annuity trusts and foreign trusts to divert income and deduct personal expenses.

12 . Fuel Tax Credit Scams. The IRS is receiving unreasonable claims for the fuel tax credit. Some taxpayers, such as farmers who use fuel for off-road business purposes, may be eligible for the credit. But, others are claiming the credit for nontaxable uses of fuel when their occupation or income level makes the claim unreasonable. Fraud involving the credit can result in a $5,000 penalty.

Conclusion

Courtney was recently notified by the Kansas Board of Accountancy that she has successfully passed all four parts of the uniform certified public accountant examination, as well as the American Institute of CPA's Professional Ethics exam. She is now officially, Courtney Rierson, CPA.

The partners and staff at Swindoll, Janzen, Hawk & Loyd, LLC congratulate Courtney upon reaching this milestone in her career!

A 2008 graduate of McPherson College, Rierson received her Bachelor of Business Administration degree in Accounting and Finance. She then came to work at SJHL.

Courtney is the daughter of Dennis and Jazell Bersuch of McPherson. She and her husband Rory are in the process of building a home in McPherson.

Rierson's areas of concentration include audits, reviews and compilations for construction companies; audits of not-for-profit entities; tax preparation for businesses and individuals; and small business consulting.

Courtney can be reached by e-mail at crierson@sjhl.com, by phone at (620) 241-1826 in McPherson, or toll free at (888) 241-1826. Learn more about Courtney and the rest of the SJHL staff at http://www.sjhl.com/about.php.

A Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) IRA plan allows eligible employees to defer salary and requires an employer to contribute each year. An employer with a SIMPLE IRA plan deposits employee salary deferrals and makes its required contributions to each employee's SIMPLE IRA.

Though it avoids the complex nondiscrimination testing essential to a traditional 401(k) plan, a SIMPLE IRA plan has other important administrative requirements. Perhaps most important is the employer's annual notice to participants.

Each year, an employer notifies participants of its contribution choice for the coming plan year and provides them with a 60-day salary-deferral election period. A financial organization serving as a SIMPLE IRA custodian/trustee is responsible for providing part of the content of this annual notice.

This article serves as a reminder of the SIMPLE IRA plan notice requirement and reviews the necessary content.

Timing

An employer must provide the notice to each SIMPLE IRA plan participant prior to a required 60-day election period. SIMPLE IRA plans are calendar year plans so the annual 60-day election period runs from November 2 through December 31.

When notifying an employee who enters a SIMPLE IRA plan during a plan year, an employer must provide a different 60-day election period. It must include the employee's first day of eligibility or the day before.

Content

An employer's SIMPLE IRA plan notice must contain:

• A reminder of a participant's right to elect a new or modify an existing salary deferral or reduction agreement within the 60-day election period.
  
  
• An announcement of the type and amount of the employer's contribution for the coming year.
  
  
• A statement that a participant must establish a SIMPLE IRA with any SIMPLE IRA custodian/trustee he/she chooses and provide the location to the employer, if the employer established its SIMPLE IRA plan with IRS Form 5304-SIMPLE. For a SIMPLE IRA plan established with IRS Form 5305-SIMPLE, all employees must establish SIMPLE IRAs with the custodian/trustee chosen by the employer-the designated financial institution (DFI).
  
  
• A Summary Description provided by each participant's SIMPLE IRA custodian/trustee. This is generally a copy of the current SIMPLE IRA plan document (IRS Form 5304-SIMPLE or IRS Form 5305-SIMPLE) together with the financial organization's current Procedures for Withdrawal. For plans established with Form 5305-SIMPLE, the Summary Description also includes the DFI's policy and procedures for transfers without cost or penalty of SIMPLE IRA plan contributions during the coming year.

An employer should begin collecting this information from each SIMPLE IRA custodian/trustee early enough to ensure delivery of the complete notice before November 2. A SIMPLE IRA custodian/trustee should start preparing its Summary Description and Procedures for Withdrawal as soon as possible to be ready for employers in late September or early October.

Not providing the notice could result in an employer-paid penalty of $50 per day until the employer provides the notice.

Guidance

For more information on SIMPLE IRA plan notice requirements, an employer should look to its SIMPLE IRA plan agreement (Form 5304-SIMPLE or Form 5305-SIMPLE). IRS Notice 98-4 also provides information on the annual notice requirements and much more information on the operation of a SIMPLE IRA plan. Click here to read Notice 98-4.

During the two hour presentation, Stephanie and Vicki presented valuable short-cut keys and functions to use in QuickBooks®. Stephanie began by showing attendees how to customize the QuickBooks® Icon Bar.

A function that may benefit organizations is the use of class tracking. Vicki discussed class tracking in terms of payroll noting that company paid payroll taxes can also be allocated to classes automatically, if you have the correct setup in QuickBooks®. Moran also said that,"the payroll option to split the classes based on how you want the payroll allocated is very helpful."

New Service - "Wednesday's Workshop"

Have you ever looked at how your invoices affect your profit and loss report? Do you know where the "Item's" billed on your invoices are going on your income statement?

To quickly expose the general ledger entries behind a transaction in QuickBooks®, simply press Ctrl-Y. Now you can see all the Debits & Credits behind the scenes of a form. (See the Transaction Journal report below. This is the accounting entry that results from the invoice shown.)

Try it out. Go to a paycheck, an invoice, or any transaction in QuickBooks® and simply press Ctrl-Y and see the behind-the-scene accounting entry!

As you probably know, the 2010 Tax Relief Act provided bigger depreciation deductions for business assets. In fact, under Section 179, businesses can expense up to $500,000 of depreciable business assets acquired during 2011, with any remaining basis fully deducted using the 100% bonus depreciation. Unfortunately, unfavorable depreciation rules apply to most passenger autos and light trucks used in business. For a vehicle acquired in 2011, depreciation deductions are generally limited to the following amounts:

Of course, when a vehicle is used less than 100% for business, these figures are cut back even further. In fact, the average client may not live long enough to fully depreciate a really expensive car.

Exception for Heavy Trucks, Vans, and Sport Utility Vehicles (SUVs). These vehicles are not subject to the above limits. A truck, van, or SUV is "heavy" if it has a Gross Vehicle Weight Rating (GVWR) (the manufacturer's maximum weight rating when loaded) above 6,000 pounds. Below, we've listed many of the 2012 vehicle models that qualify for these special tax benefits based on their GVWRs at the time we checked them. As you can see, it's a surprisingly long list. In addition, there may be some we have missed (new and retooled models are coming out all the time). Thus, always verify the GVWR for yourself before making a buying decision. The GVWR can normally be found on a label attached to the inside edge of the driver's side door.

If you buy such a vehicle in 2011 and use it more than 50% for business, you may be able to deduct the entire business portion of the vehicle's cost this year. For example, if before the end of the year you buy a new $65,000 heavy SUV that has a gross vehicle weight above 6,000 pounds and is used 100% for business, you may be able to deduct the entire $65,000 this year.

To claim these deductions, you must establish through contemporaneous records (such as, a mileage log) that you use the vehicle over 50% of the time for business. If your business usage later falls below 51%, a portion of the deductions previously claimed will need to be recaptured and reported as ordinary income in that year. Also, deductions allowable for used vehicles may be limited as such vehicles do not qualify for 100% bonus depreciation. Finally, this strategy works best if you are self-employed-claiming a Section 179 and bonus depreciation deductions for a heavy corporate-owned vehicle is much more difficult. Nevertheless, the heavy vehicle deductions can generate major tax savings given the right circumstances.

If you would like more details, please do not hesitate to call a Swindoll, Janzen, Hawk & Loyd, LLC specialist at (620) 241-1826. Learn more about our services at http://www.sjhl.com/OurServices.

Vehicles with GVWRs above 6,000 Pounds[1]

Source:www.autosite.com

Swindoll, Janzen, Hawk & Loyd, LLC is pleased to announce that
Jaymie Rothrock
has successfully completed her Kansas Board of Accountancy requirements.

Jaymie was recently notified by the Kansas Board of Accountancy that she has successfully completed all requirements and is now licensed in Kansas. Prior to 2010, Jaymie lived and worked in Colorado where she is already licensed. This makes her the only SJHL staff member licensed in multiple states.

The partners and staff at Swindoll, Janzen, Hawk & Loyd, LLC congratulate Jaymie upon reaching this milestone in her career!

A 2006 graduate of McPherson College, Jaymie received her Bachelor of Science degree in Business Administration with concentrations in Accounting and Finance. She entered into the accounting profession with Bauerle and Company, P.C. in 2006 and joined SJHL in August 2010.

Jaymie is the daughter of Don and Paula Bickford of Little River, Kansas (formally of Lamar, Colorado). She and her husband Jonathan reside in McPherson with their new daughter Brielle.

Jaymie's areas of concentration include audits, reviews, compilations, and tax preparation for construction industry companies as well as other businesses. She also specializes in limited scope audits of employee benefit plans and performs tax preparation for businesses and individuals.

Please help us in congratulating, Jaymie. She can be reached by e-mail at jrothrock@sjhl.com, by phone at (620) 241-1826 in McPherson, or toll free at (888) 241-1826. Learn more about Jaymie at www.sjhl.com/OurStaff/JaymieRothrock.php.

On November 16, 2011, Swindoll, Janzen, Hawk & Loyd's managing partner Kyle Hawk, CPA, CMAP, was honored for his contributions as a leader in the accounting profession and the Kansas Society of Certified Public Accountants (KSCPA). At the KSCPA annual meeting Kyle received a Lifetime Achievement Award from the KSCPA, presented to him by the outgoing Chairman John Bruckner. In the history of the KSCPA, they have only given out three of these awards.

Kyle has been highly involved with the KSCPA throughout his career. He was chair of the KSCPA from 2006-2007, was the elected AICPA Council representative for the KSCPA from 2008-2011 and is currently a trustee for the KSCPA Educational Foundation. He believes his membership in the KSCPA has created long-term friendships within the profession, knowledge of daily issues, quality representation in front of legislative bodies, networking opportunities and the ability to give back to the profession that has been so good to him.

In addition to the positions listed above, Kyle has also served on the KSCPA board of directors, executive committee, nominations committee (and as chair) and on other numerous task forces. He also served on the board and as president of the Central Chapter of the KSCPA. Kyle became a member of the organization in 1987 and became a partner at SJHL three years later in 1990.

Kyle is also active in the community and other professional associations. Locally, Kyle is the treasurer and past president of the McPherson Industrial Development Co. (MIDC); a member of the McPherson Optimists Club and a member of the United Methodist Church. He also served on the board and as treasurer of the McPherson Chamber of Commerce.

Please help the SJHL staff in congratulating Kyle on this great achievement!

Learn more about Kyle at http://www.sjhl.com/OurStaff/KyleHawk.

The beginning of a new year often brings a feeling of change and a need to get organized. We tell ourselves we will do things differently this year, but the key is actually putting together a plan and sticking to it. Here are a few things you can do to prepare financially for the New Year.

1. Build a budget. Start with your monthly take home pay, and then pull out your last three months of bank and credit card statements. Review them for what you have actually been spending on a monthly basis. This can either be a very enlightening process for you, or it may be very scary. I recommend that you keep an open mind and work with your spouse to devise a workable budget that also takes into account a debt reduction plan.
2. Check your credit. Running your credit report on at least an annual basis has a number of benefits. It gives you an opportunity to take inventory of your debt, where it is coming from and how much you owe. This can be used as a starting point to come up with a plan for paying down your debt. Running your credit report annually can also be a good way to make sure you have not become a victim of identity theft. You can run a free credit report every year at www.annualcreditreport.com. This is a great service to take advantage of and utilize.
3. Review your retirement account(s). This is something you may want to do with your plan administrator and/or financial advisor so you have a good understanding of your investment options. It is also a good idea to make sure what you are putting into your account will give you enough to live comfortably on at retirement. And remember, if you have a retirement account through your employer and they offer a match, take them up on it. Everybody likes free money.
4. Prepare for your 2011 tax return. Organizing your tax information to the best of your ability prior to meeting with your tax preparer will give him or her the opportunity to spend more time thinking about your particular tax situation rather than shuffling through your receipts. Many accountants send out organizers for you to fill out based on your previous year's return. Utilizing these resources can be a big help to your accountant, which will in turn, benefit you in the long run.

Contact Swindoll, Janzen, Hawk & Loyd, LLC if you would like more information on planning your finances. Our contact information for the McPherson office is (620) 241-1826 or (888) 241-1826 and our Hutchinson office is (620) 662-3358 or (888) 414-0123.