Is Mallett and Barnes affiliated with any accounting associations?

Yes, our San Diego EA firm is a member of California Society of Enrolled Agents and National Society of Tax Professionals. Our San Diego accountants are also members of many local and regional associations related to the various industries that we specialize in, from the construction industry groups to trusts and many others.

Does Mallett and Barnes specialize in certain industries?

Yes, because we want to provide exceptional service, out accounting consultants focus our expertise and resources on the following industries:

Construction
Our Construction Services Group provides accounting and business advisory services to the construction industry in San Diego and reflects the major forces in the industry: general contractors, as well as specialty trade subcontractors.

Professional Service Firms
Our professional consultants are committed to serving the professional services industry by providing services to law firms, advertising agencies, consulting firms and any other type of professional service firm. Our accounting consultants bring increased profitability and continued growth to our clients in the professional services industry through our team of dedicated and experienced professionals.

Manufacturers and Distributors
Our dedicated team of professional tax accountants and business consultants is prepared to share their specialized knowledge and expertise to provide innovative and actionable solutions tailored to the needs of the manufacturing or wholesale-distribution businesses we service.

High-Tech
Our accountants have helped many technologies maintain or reach positions of market leadership in their respective industries. We understand the needs of these diverse companies and respond with innovative solutions.

By partnering with Mallett and Barnes, industries in all of these sectors not only benefit from the breadth of industry-leading solutions that we provide, but from our ability to tailor all of these solutions to their unique needs.

What services does Mallett and Barnes provide and specialize in?

Our accounting and consulting firm provides assurance and accounting, tax compliance and consulting, and strategic and business consulting services to a wide variety of clients in San Diego.
The following is a brief list of the services we offer to our clients.

• Tax Services
• Bookkeeping
• Accounting Services
• Payroll
• Litigation Support and Forensic Accounting Services
• Mergers and Acquisitions
• Start – Up and Emerging Companies
• Women Owned Businesses
• Information Technology Consulting Services
• Trustee Services
• Wealth Management

Our service expertise is in the following industries

• Manufacturing and Distribution
• Technology Based Businesses
• Restaurants
• Professional Services
• Retail
• Government and Public Sector
• Construction
• Musicians and Artists
• Farming

We prepare all tax returns including individual, corporation, LLC and LLP, non-profit, estate and trust, partnership, payroll, sales tax, property tax, and other taxes. We offer bookkeeping and complete payroll processing. We can prepare your financial statements and assist you with managing your business. We also provide computer and information consulting utilizing QuickBooks, Quicken, Peachtree, Microsoft Excel, Microsoft Access, Microsoft Outlook, ACT! and many other office automation/accounting/contact management programs.

How long has Mallett and Barnes been in business?

Since 1990, we are celebrating 30 years providing San Diego with quality service in accounting and tax preparation.

What are Mallett and Barnes qualifications?

Connie J. Mallett has a Masters Degree in Business, Bachelors in Accounting and is an Enrolled Agent.

Jona S. Barnes has a Bachelors in Accounting and is an Enrolled Agent.

David K. Mallett has a Dagree in Computer Technology

Why should I choose Mallett and Barnes?

Because we provide excellent service at reasonable prices.

What size clients do you serve?

We provide services to individuals, home based businesses, professionals, and small businesses of all sizes.

• From initial start-up companies with one owner/employee to companies with over $5 million in gross revenue and up to 100 employees
• From retirees to corporate executives

What do I need to bring when I am having my taxes prepared?
Following is a list of the more common items you should bring if you have them.

• Wage statements (Form W-2)
• Pension, or retirement income (Forms 1099-R)
• Dependents' Social Security numbers and dates of birth
• Last year's tax return
• Information on education expenses
• Information on the sales of stocks and/or bonds
• Self-employed business income and expenses
• Lottery and/or gambling winnings and losses
• State refund amount
• Social Security and/or unemployment income
• Income and expenses from rentals
• Record of purchase or sale of real estate
• Medical and dental expenses
• Real estate and personal property taxes
• Estimated taxes or foreign taxes paid
• Cash and non-cash charitable donations
• Mortgage or home equity loan interest paid (Form 1098)
• Unreimbursed employment-related expenses
• Job-related educational expenses
• Child care expenses and provider information And any other items that you think may be necessary for your taxes.

Is my social security taxable?

Usually if your income including social security benefits is less than $25,000 if single or $32,000 if married, your benefits are not taxable. If your income is higher than those limits, there are formulas to determine what percentage of your social security is taxable. Currently up to 85% of your social security may be taxable.

When can I make contributions to my IRA?

Generally for any tax year, you can make a contribution to your IRA up until the original due date of the return (usually April 15). Thus for tax year 2010, you can make contributions from January 1, 2010 through April 15, 2011.

What are the differences between a Roth and a conventional IRA?

Traditional IRA’s lets you deduct contributions on your tax return in the year you make them, and the distributions are included as income on your return when you withdraw from the IRA after reaching age 59½. A Roth IRA does not let you deduct the contributions, but you also do not report the distributions as income, no matter how much the Roth account has appreciated. With a Roth, you can exclude the income earned in the account from being taxed.

What are the consequences of early withdrawals from my retirement plans?

If you withdraw money from a 401(k) or an IRA before age 59 ½, the distribution is taxable and there is a 10% penalty on the taxable amount. The main exceptions that let you withdraw money early without penalty are as follows:

• Qualified retirement plan distributions if you separated from service in or after the year you reach age 55 (does not apply to IRAs).
• Distributions made as a part of a series of substantially equal periodic payments (made at least annually) for your life or the joint lives of you and your designated beneficiary.
• Distributions due to total and permanent disability.
• Distributions due to death (does not apply to modified endowment contracts)
• Qualified retirement plan distributions up to (1) the amount you paid for unreimbursed medical expenses during the year minus (2) 7.5% of your adjusted gross income for the year.
• IRA distributions made to unemployed individuals for health insurance premiums.
• IRA distributions made for higher education expenses.
• IRA distributions made for the purchase of a first home (up to $10,000).
• Distributions due to an IRS levy on the qualified retirement plan.
• Qualified distributions to reservists while serving on active duty for at least 180 days.

What are the tax consequences of buying a home?

Mortgage Deductions
You can save a lot of money by being able to deduct mortgage interest.  For the first few years of owning a home mortgage interest accounts for nearly 90% of your overall payment.  While this may seem like wasted money, it will save you a considerable amount of money on your tax return.  For a person in the 33% tax bracket, 33 cents of every dollar spent in mortgage interest will be returned during tax season.

Real Estate Taxes
Also you will be able to deduct real estate taxes.  While many people complain that their real estate taxes are too high, they do not properly consider that the taxes are deductible.  Therefore as real estate taxes increase, a person’s federal income tax responsibilities will decrease.

Home Improvements
The third of the positive IRS tax consequences of buying a home that could save you a lot of money are deductions for home improvements.  To stimulate the economy and help the environment, the IRS offers many different tax deductions for those people that install environmentally friendly amenities to their homes.  These could include installing new windows, doors, or even buying a new refrigerator.

What is the tax Consequences of selling my house?

You can exclude profits up to $250,000 (if unmarried) or up to $500,000 (if married) on the sale of your main house. You need to have owned and lived in the house for at least two years. The house must also be your primary residence for at least 2 years during the 5 years you owned the home. This exclusion will reduce or eliminate any capital gains tax.

What are Enrolled Agents?

Enrolled Agents are individuals licensed by the federal government to represent taxpayers before the Internal Revenue Service. Enrollment dates back to 1884, when Congress acted to regulate persons who represented citizens in their dealings with the Treasury Department, after questionable claims had been presented for Civil War losses. Members of the California Society of Enrolled Agents have demonstrated their commitment to outstanding professional education, high ethical standards, and devotion to serving their clients in dealings with state and federal tax agencies. They are The Tax Professionals.

How is an EA different from other tax preparers?

Enrolled Agents are required to demonstrate competence in matters of taxation; their right to represent taxpayers comes directly from the U.S. government Department of the Treasury. Unlike many tax preparers for whom tax preparation is a seasonal job from January through April 15, EAs provide tax services year-round in the field of tax planning, preparation, and representation.

How do I know if my tax preparer is an Enrolled Agent?

Look for the “We SpEAk Tax” designation, and insist that your tax preparer be a Member of the California Society of Enrolled Agents (CSEA). Members of CSEA are required to fulfill 25% more professional education every year than any other Enrolled Agents. CSEA Members not only SpEAk Tax – they speak it fluently!

What qualifications are required to become an EA and maintain enrollment?

There are only two ways to earn the Enrolled Agent designation. The first route is to take a four-part examination, one of the most difficult professional examinations in the country. This test covers all aspects of taxation, including ethics. The application process includes a thorough background investigation.
The other way to become an EA is to be employed by the IRS for a minimum of five years, regularly interpreting and applying the provisions of the Internal Revenue Code and regulations.

Following successful enrollment, EAs are required to maintain a rigorous schedule of professional education in the tax field. Because of the difficulty in becoming enrolled and maintaining that enrollment, fewer than 45,000 tax professionals are currently enrolled as EAs. When you sit down with an Enrolled Agent, you are sitting down with the ultimate tax expert.