Denver Tax Services | Bookkeeping | Net Prophet (720) 409-8227

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WASHINGTON

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LINCOLN

$199

FRANKLIN

$299

WASHINGTON

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$99

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$109 paid monthly)

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Includes: Access to your Prophet Platform, and monthly accounting, reconciliation, and financial statement preparation for up to 2 bank/credit card/Paypal accounts for a cumulative total of 50 transactions. Pricing does not include setup fees.

LINCOLN
PLATFORM

$199

PER MONTH
(Prepaid annually or
$219 paid monthly)

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Includes: Access to your Prophet Platform, and monthly accounting, reconciliation, and financial statement preparation for up to 4 bank/credit card/Paypal accounts for a cumulative total of 100 transactions. Pricing does not include setup fees.

 

 

FRANKLIN
PLATFORM

$299

PER MONTH
(Prepaid annually or
$329 paid monthly)

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Includes: Access to your real-time financials through your Prophet Platform, and monthly accounting, reconciliation, and financial statement preparation for up to 5 bank/credit card/Paypal accounts for a cumulative total of 125 transactions. Pricing does not include setup fees.

Call us about our addititonal services. 720-409-8227 or contact@netprophet.biz

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TESTIMONIALS

5 Things to Know Before Filing Tax-Exempt Status for Your Nonprofit

In Colorado, as a popular and reliable bookkeeping and accounting company, Net Prophet is often asked if there is a difference between a nonprofit organization and a tax-exempt organization. And we always answer, “There definitely is.” Yes, these two very different classifications do not equal the same entity, namely: Nonprofit status means the organization is state-approved as an entity that exists with a specific purpose, cause or mission in mind as opposed to a for-profit company that exists mainly to make money or a profit.   Tax-exempt: is a federal income tax classification, under the Internal Revenue Code, that allows a non-profit to claim exemption from paying corporate income taxes on any profits they raise if they are deemed appropriate to receive tax-exempt status. The numbers and letters, “501(c)3” or “501(c)s,” are what the Internal Revenue Service uses to reference the code explaining the tax-exempt status. In order for a nonprofit organization to receive their tax-exempt status, they must abide by certain requirements and apply with both the IRS and the state in which the nonprofit exists. When it comes to filing for tax-exempt status, there are five things you should know:
  1. Creating a nonprofit organization and applying for a tax-exempt status can be a complex process that can take a lot of time. The IRS claims the average person spends 105 hours to complete the paperwork for the 1023 form alone, and then other federal forms and state filings must be completed.
  2. After the forms are filed, if the government finds any mistakes, delays can last up to a year, or more, which is why it is so important to use an account, like Net Prophet, that knows about proper bookkeeping practices for nonprofits. We have submitted countless tax-exempt forms and are familiar with the process.
  3. Typically, tax-exempt applications are processed as quickly as possible, unless an error is found. To make sure you have filed correctly, completely answer all the questions asked. The checklists found on the last pages of Form 1023 or Form 1024 will help you streamline the process. Even better and safer is to hire a professional. Sometimes the IRS will work with an organization to speed up the process, however, there must a good reason for doing so, like a pending grant that is dependent on the tax-exempt status.
  4. Just because an organization receives tax-exempt status, does not mean the classification remains in effect indefinitely. A variety of reporting documents must be submitted annually to keep your non-profit organization compliant. Each year, hundreds of thousands of organizations have their tax-exempt status revoked for failing to file the documents necessary to maintain the tax-exempt status. Once a status is revoked, the process to reverse this can be very time-consuming and involve a lot of money.
  5. To maintain tax-exempt status, a nonprofit must comply with all the rules that apply, including:
  1. Your organization must not be involved in any political activity.
  2. Remain consistent with the purpose of the exemption.
  3. Receive a mixture of funding from individual donors, corporations, and foundations.
  4. The IRS requires that at least 33 % of its funding come from a wide range of the general public.
  5. Make sure the organization is maintaining the original purpose of serving the community, and not being used to provide financial resources to a board member.
If you are interested in claiming tax-exempt status or need helping to maintain this status, call Net Prophet today at (303) 396-5707.

Recognizing IRS Email and Phone Scams

As longtime, successful Colorado accountants, at NetProphet, we hear from our clients, all the time, disturbing stories of scammers attempting to collect money from innocent taxpayers. It’s one thing to have to pay the Internal Revenue Service (IRS) money you owe. It’s another, criminal act, to be scammed into believing you owe money you don’t.  Yet, countless people, in and around the Colorado area, continue to pay millions of dollars annually through email and phone scams. Scammers go to great lengths to mimic the IRS, and, too often, are successful in their victimizing efforts, using a variety of approaches, including: the postal service your private or business phone your email account The number one thing to keep in mind is, the IRS will never contact taxpayers through email, text messages or social media. The IRS will also never threaten a taxpayer with a lawsuit or possible imprisonment or any other type of criminal punishment. One of the most common ways a scammer contacts an individual is through their phone, and they usually use the following means to intimidate the victim into immediately believing the caller is a legitimate IRS agent: Caller alters caller I.D., so communication appears legitimate Caller states that he, or she, works for the IRS Caller uses familiar ways to claim money is owed, as in mentioning your name and/or other personal information Caller attempts to intimidate, and/or make demands   Caller states that if money is not paid, victim will be arrested, deported and/or business license will be revoked Caller demands that money owed must be paid immediately through a pre-loaded debit card or wire transfer Caller usually speaks with urgency, or uses an overly authoritative tone and can even be hostile and/or insulting Some callers even use the tactic that you qualified for a refund, to get your personal information. Voicemails are commonplace, with an urgent message to return the call The IRS never works this way. Typically, the IRS will send a bill or other form of postal service communication to discuss your specific tax situation. In addition, keep in mind that tax scammers will also try to contact taxpayers through their email accounts, sometimes mimicking your tax software, or seeking information regarding your tax refund, or demand your PIN number, or other means to gain your personal information. The newest scam is to approach individuals with requirements to share Life Insurance or Annuity updates. Another scam involves requests for necessary information from your current tax form. What can you do? If you are approached through a phone call, hang up. If through an email, do not respond. If you have any questions, contact the IRS to make sure the request is legitimate. If it is not, report this to phishing@irs.gov or call (800) 366-4484. At Net Prophet, our accountants are here to help you resolve any IRS communication concerns you might have. In the Colorado area, contact us today at netprophet.biz or at (303) 396-5707.

Charitable Donations: 5 Things to Know

Thinking about donating money to charity? Consider this: Winston Churchill once said, “We make a living by what we get. We make a living by what we give.” And, a study from the  Harvard Business School finds that people are happier when they give. In order for the giver to also benefit from a donation, there are certain things to remember, in and around the Denver area: Charitable contributions can reduce your tax bill – this is true, however, in on order to reduce your tax bill through charitable donations, you must itemize your deductions. Most people use the standard deduction, yet, by working with a qualified bookkeeper, like Net Prophet—who has worked with nearly every type of charitable donation, you might be surprised by all the deductions available, including charitable ones. Donations must be made to a qualified organization – yes, donations must be made to a qualified organization. Donations are also not allowed for certain individuals, political candidates or political parties. Net Prophet can help clarify which organizations and individuals qualify for this deduction. Important to keep in mind is that, should you receive a benefit from your contribution, only the amount that exceeds the fair market value of the benefit can be deducted. For example, if you received tickets to a sporting event in exchange for a donation, only the amount that exceeds the fair market value of the tickets can be claimed. To deduct clothing, clothes must be in good condition. The same can be said for household items. And, there are restrictions on vehicle donations, as well. But all these deductions are easily managed with the help of an expert bookkeeper.   Different types of donations – most people think in terms of monetary donations, but there are many other types of contributions acceptable by the IRS: goods and personal property, vehicles, art, jewelry, stocks, real estate. Let a qualified bookkeeper, like Net Prophet, help you get the maximum deduction you deserve. Keep good records – to claim a deduction, clear and concise records must be kept. Should the donation be made to a certain organization, the name, date of the contribution and the amount must be recorded on that organization’s letterhead. For donations over $250, a bank record must be kept. For payroll donations, some type of track record, like a payroll stub, must be recorded to claim the deduction. Make sure the organization you contribute to is reputable - a well-run charitable organization spends approximately 75 percent of their budget on services and programs. The other 25 percent goes toward administrative costs. Make sure to know the spending ratio for each organization you donate to. There are several websites on the internet that can help you determine if the one you want to contribute to is credible. At Net Prophet, we know charities and we know deductions. Year after year, we help countless Denver clients get the most out of their tax deductions to minimize taxes owed. Let us help you today. Contact Net Prophet by calling (720) 409-8227.