PipelineB2B Blog

PipelineB2B – Taxes over Cocktails Event Recap

Posted on December 21, 2009. Filed under: 1 |

When PipelineB2B was launched the goal was to connect small businesses, freelancers and entrepreneurs in ways that would lead to collaboration and referrals.  One of my biggest goals was to facilitate introductions that would allow complimentary services/businesses to work together.  It is only fitting that the last event of the year culminates in something that isn’t too far from the minds of many of us as the year draws to a close…taxes.

On Monday, December 7^th, Ellen Mitchell was the special guest at PipelineB2B’s December event.  Ellen was available to questions attendees had about freelance work, unemployment tax liability, insurance and many more topics.  Those who attended walked away empowered and enlightened about how to best prepare their taxes.  Sincerest and heartfelt thanks to Ellen and those who braved the cold to make the last PipelineB2B event of 2009 a wonderful evening of networking and sharing.

As an overview of Ellen, she comes highly recommended and regarded by the several entrepreneurs in my network who work with Ellen on their taxes.  Time and time again she has been described as warm, friendly, helpful, found opportunities for deductions not previously itemized and an advocate for making such that your business and personal tax filings are sound and accurate.

I have included Ellen’s bio below, but I did ask her a few questions to kick-off the event:

1. You have a great enthusiasm for helping people understand the tax process, can you tell us a little more about that?

My very first tax job was helping people from the IRS view point. I was in the taxpayer service division (no longer part of the IRS) and I helped taxpayers understand why they pay taxes, how to pay taxes when they are self-employed and how to pay taxes for employees. I answered all kinds of tax questions (income, gift and estate and excise) and realized that taxes did not require math as much as logic. I love researching to find the answer to a question. Initially, I answered inquiries on the phone, then as the employee assigned to walk-in customers and finally, my duties included meeting people at their business sites and talking in front of groups of professionals who were interested in how to prepare their books and tax returns. I love to see the light bulb turn on when individuals finally process what they need to do to get their financial ducks in a row and how much easier life becomes once that is done.

Although it has been some time since I worked at the IRS, I still am very much connected to its laws and procedures since I write about the organization and new laws, court cases and rulings that constantly change and annotate the already out-of-control Internal Revenue Code.

2. What are some prep suggestions for a small business owner or entrepreneur meeting with you for the first time?

My initial meeting with a client is low key. I like to listen to what a client wants and I will determine how I can best help. I impress that the IRS still likes paper receipts despite the fact that everyone is going green. Do use your computer to track income and expenses; just make sure to back everything up and save any receipts that come your way. Depending on the size of the business, I usually encourage a monthly accounting to figure out the net income and the taxes that may need to be set aside. I advise clients to set up a banking account and a phone used just for business, even if the business is small and the owner is not sure how long the business may exist. Most small business owners who have been employees are not always aware of the tax issues that affect them once they are self-employed. Self-employed individuals compute their net income; the lower the net, the lower the income and self-employment taxes!

I also offer advice concerning how to set up a business if that hasn’t been decided upon when I first meet them. The state filing is determinative of the type of entity the individual may file for federal purposes. Businesses that hire employees have to account for taxes they withhold from their employees (referred to as trust fund taxes), in addition to contributions they must make to various state agencies (employment security and state department of revenue are some).

I attempt to cover the tax issues that the individual may need to consider before going into business, particularly if the business involves insurance coverage to protect the individual or his or her assets. I see my job more as an assist to determine whether the business requires a combination of bookkeeping and tax preparation, or whether the individual owner can (or wants to) have a hand in computing gains and losses.

3. Most important question, after several months of long hours and reviewing over 1000 individual tax filings each year, how do you unwind the day AFTER tax returns are due?

I usually unwind by making an appointment with my hair stylist and lunch at Sarah’s Bakery (on Oak St) – my idea of a spa treatment! My friends who live out west (Geneva) have already sent me an invite to see The Bitchin’ Babes on April 17^th. Despite the name, these ladies all have excellent voices and are laugh out loud funny.

Thanks again for your invitation to your networking evening.

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Ellen Mitchell Bio:

Ellen Mitchell is an enrolled agent (EA) and in addition to preparing tax returns and giving tax advice, she can represent taxpayers in IRS collection, examination and appeals matters. She works for CCH, a division of Wolters Kluwer, in the tax and accounting field preparing explanations of IRS-sourced documents for tax preparers. She is a site manager at one of 30 free tax preparation sites for The Center for Economic Progress, a tax-exempt organization, and reviews about 1000 returns over the course of a filing season.

Her educational background is in English literature, but her career took an unexpected turn when the IRS became her employer for five years. She has prepared a variety of tax returns for individuals and other entities, and really does enjoy researching tax issues.

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