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The Goldberg Tax Practice, LLC An Enrolled Agent Tax Practice, with over 35 years experience and thousands of returns prepared for

Coronavirus-related Tax Scams – Did You know?The IRS warns everyone to watch out for scam phone calls, emails and text m...
21/04/2020

Coronavirus-related Tax Scams – Did You know?

The IRS warns everyone to watch out for scam phone calls, emails and text messages related to COVID-19 (coronavirus) tax relief programs during the spring of 2020. This new wave of phishing attempts and other criminal activity centers on the Economic Impact Payments (EIPs) that the IRS is currently distributing to many U.S. taxpayers. The scammers might incorrectly refer to these payments as “Stimulus Checks” or “Stimulus Payments.”

As a reminder, most taxpayers do not need to take any action in order to receive their EIPs. The IRS will NOT call, email or text you to request private information such as your address or bank account number. If anyone claiming to represent the IRS requests such information from you, asks you to sign over your EIP check, or suggests that they can get your EIP to you faster, you should immediately hang up or delete the message. You can also help the IRS to identify, track down and prosecute perpetrators by forwarding any suspicious emails you receive to [email protected].

If you are unsure whether a call or message you receive is legitimate, treat it as a scam and then contact the IRS for more information. You will not be punished for hanging up on an IRS agent because you believed that the call was fraudulent. Note that although most IRS taxpayer assistance phone services are temporarily suspended due to COVID-19, call centers will reopen as soon as possible. In the meantime, you can still email the IRS and/or find regular updates on coronavirus tax relief programs at https://www.irs.gov/coronavirus-tax-relief-and-economic-impact-payments.

If you wish to provide the IRS with information such as an updated mailing address to ensure that you receive your EIP as quickly as possible, you should ONLY do so through the official IRS Economic Impact Payments portal, https://www.irs.gov/coronavirus/economic-impact-payments.

New IRS Tools for Faster Delivery of Economic Impact Payments – Did You Know?The IRS has launched two new web portals to...
15/04/2020

New IRS Tools for Faster Delivery of Economic Impact Payments – Did You Know?

The IRS has launched two new web portals to help some taxpayers receive their COVID-19 Economic Impact Payments (EIPs) more quickly. Remember that the vast majority of Americans who filed a 2018 or 2019 federal income tax return, or receive Social Security or Railroad Retirement benefits, do not need to take any action in order to receive their EIPs. If you provided the IRS with bank account information on your most recent tax return or receive benefits by direct deposit, your EIP will be automatically deposited to your account. Otherwise, the IRS will mail an EIP check to the most recent mailing address you provided.

You can use the new “Get My Payment” portal to:

- Learn the amount of your EIP
- Check the status of your payment
- Provide direct deposit banking information to the IRS if you have not previously done so
- Update your mailing address if you have moved and prefer to receive your EIP by check

In order to check the status of your payment, you will need your social security number (SSN), date of birth, and the mailing address shown on your most recent federal tax return. To provide bank account information for direct deposit, you will also need your adjusted gross income (AGI) from your most recent federal tax return (2018 or 2019), the refund amount or amount you owed on that return, and your bank routing number, account type, and account number.

NOTE: If the IRS has already scheduled the delivery of your EIP, you will not be able to use Get My Payment to update your bank account information.

If you are not required to file federal income tax returns (for example, because of an individual gross income below $12,200) and do not receive Social Security or Railroad Retirement benefits, you may need to complete a simple online form in order to receive your EIP. The necessary form is called “Non-Filers: Enter Payment Info Here.”

IRS portals for EIPs:

Economic Impact Payments: https://www.irs.gov/coronavirus/economic-impact-payments

Get My Payment & Status (for those who file federal returns and other automatic EIP recipients): https://www.irs.gov/coronavirus/get-my-payment

Non-Filers: Enter Payment Information Here (for those who do not file federal returns and may not automatically receive their EIPs) https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here

Additional 2020 IRS Tax Deadlines Extended – Did You Know?Last month, the IRS announced that the April 15, 2020 federal ...
13/04/2020

Additional 2020 IRS Tax Deadlines Extended – Did You Know?

Last month, the IRS announced that the April 15, 2020 federal income tax filing and payment deadline had been extended to July 15, 2020 for most taxpayers. The IRS has now broadened this extension to cover nearly all federal income tax filing and payment due dates that fall between April 1 and July 15, 2020. In particular, individuals, couples, estates, corporations, other businesses, and Americans living abroad now all have until July 15, 2020 to file their 2019 federal income tax returns, without fear of penalties or interest charges.

Two other specific deadline changes will benefit payers of estimated tax and those who have fallen behind on filing returns or claiming refunds for past years:

- The deadline for second quarter 2020 federal estimated tax payments has changed from June 15 to July 15. Since the first quarter payment due date was previously moved from April 15 to July 15, taxpayers can now make their first two 2020 quarterly estimated tax payments at any time on or before the July deadline. For example, you can make both payments on July 15 without penalty.

- The deadline to file a 2016 federal income tax return (either new or amended) and claim a 2016 tax refund has also moved from April 15 to July 15, 2020. If you are unsure how to obtain a refund from a past year, a tax professional can help you file the necessary return.

If you have a complicated tax situation, such as filing on a fiscal-year schedule, a tax professional can help you determine how this broad deadline extension applies to you.

April 2020 Estimated Tax Payments Extension – Did You Know?The IRS has granted an automatic deadline extension to all ta...
08/04/2020

April 2020 Estimated Tax Payments Extension – Did You Know?

The IRS has granted an automatic deadline extension to all taxpayers who make federal estimated income tax payments. As part of the U.S. Treasury's COVID-19 tax relief program, the due date for estimated tax payments for the first quarter of 2020 has been moved from April 15 to July 15. You can make your first-quarter payment anytime up until the new deadline without penalty.

At this time, the deadline for estimated tax payments for the second quarter of 2020 remains June 15. Therefore, your second estimated tax payment for 2020 will technically be due a month before your first payment. While this circumstance has created some confusion, the important thing to know is just that you should make one payment by June 15, and another by July 15.

Remember that in most cases, your 2020 quarterly estimated tax payments must add up to either 100% of your 2019 federal tax or 90% of your 2020 federal tax to avoid penalties. A tax advisor can help you determine the appropriate amount to pay by the June and July deadlines. Many state tax authorities have also changed their 2020 estimated tax payment due dates. To learn more, you can find a link to your state tax agency's website at https://www.taxadmin.org/state-tax-agencies.

IRS Economic Impact Payments – Did You Know?As part of its COVID-19 (coronavirus) tax relief program, the IRS will begin...
06/04/2020

IRS Economic Impact Payments – Did You Know?

As part of its COVID-19 (coronavirus) tax relief program, the IRS will begin mailing Economic Impact Payments to many US taxpayers by the end of April. If you filed a 2018 or 2019 tax return, your payment will be sent automatically – no action is required on your part.

Senior citizens, recipients of social security disability benefits, and railroad retirees who are not required to file tax returns will also receive their payments automatically. The IRS will use the information on the Form SSA-1099 or Form RRB-1099 to generate Economic Impact Payments to those recipients who are not required to file a tax return and did not file a return for 2018 or 2019.

Individuals with an adjusted gross income (AGI) of up to $75,000 will receive payments of $1,200, while joint filers with a combined AGI of up to $150,000 will receive $2,400. Many taxpayers will also receive a payment of $500 for each qualifying dependent child. Payment amounts decrease for taxpayers with higher incomes; taxpayers without children who have AGIs above $99,000 ($198,000 for joint filers) are not eligible to receive Economic Impact Payments.

If you included bank account information for direct deposit on your most recent tax return, you will receive your payment by direct deposit. Otherwise, a check will be mailed to the address shown on your 2019 return, or your 2018 return if you have not yet filed for tax year 2019. The US Treasury also plans to open an online portal to allow taxpayers who have not previously provided direct deposit information to the IRS to do so if they wish.

If you are required to file tax returns and have not yet filed for 2018 or 2019, you must file at least one of these returns in order to receive your payment. If you are concerned about exposure to COVID-19, these Economic Impact Payments will be available throughout the rest of 2020. A tax advisor may also be able to provide remote assistance so you can file your return from home.

Deadline for 2019 IRA and HSA Contributions Extended – Did You Know?The IRS has extended the deadline for making contrib...
03/04/2020

Deadline for 2019 IRA and HSA Contributions Extended – Did You Know?

The IRS has extended the deadline for making contributions to traditional and Roth IRAs, Health Savings Accounts (HSAs), and Archer Medical Savings Accounts (MSAs) that are credited to tax year 2019. Contributions must usually be made by the April 15 tax filing deadline in order to count toward the previous year. However, since the IRS extended the 2019 tax filing due date to July 15, 2020, the deadline for these contributions has changed to July 15 as well.

If you have not yet reached your 2019 IRA contribution limit ($6,000 for most taxpayers under age 50, up to $7,000 for taxpayers over 50 making "make-up" contributions), you may continue adding 2019 contributions until July 15. While the same is true for HSAs and MSAs, it is important to remember that your employer's carry-over limit or grace period deadline might not have changed. Check with your company's benefits department to make sure additional 2019 HSA or MSA contributions can actually be used to cover medical expenses before contributing.

If you made withdrawals from an IRA or other retirement account in 2019 that are subject to the 10% additional tax (such as early IRA withdrawals not covered by an exemption), the deadline for paying this tax has also been extended to July 15, 2020. A tax professional can help you determine whether any of your 2019 withdrawals require payment of the 10% additional tax.

Tracking Income and Expenses for “Gig” Work – Did You Know?With working from home becoming more common in 2020, many peo...
01/04/2020

Tracking Income and Expenses for “Gig” Work – Did You Know?

With working from home becoming more common in 2020, many people are taking on freelance or “gig” work to supplement their incomes. Whether you rely on gig work as your primary income source or just log a few hours a week, it is important to track all your freelance income, along with any associated expenses. Freelance income must be reported to the IRS, but deductions for a home office and expenses like supplies and mileage may reduce your tax liability.

If you have multiple income sources, including an hourly or salaried job, you may need to adjust your withholding to account for your freelance work. The IRS offers a free Withholding Estimator tool to help you determine whether your current withholding is sufficient. If most or all of your work is on a freelance basis, you may need to make quarterly estimated tax payments.

A tax professional can help you develop an efficient system to record your income and expenses, and keep your withholding or estimated tax payments on track. It is much easier to track these numbers on an ongoing basis than to reconstruct them at the end of the year.

IRS Withholding Estimator: https://www.irs.gov/individuals/tax-withholding-estimator.

Tips to Keep Your Personal Information Safe – Did You Know?The ever-present threat of identity theft grows during tax se...
25/03/2020

Tips to Keep Your Personal Information Safe – Did You Know?

The ever-present threat of identity theft grows during tax season. To help taxpayers stay safe, the IRS recently offered suggestions to secure your personal data when preparing and filing your returns, and all year long. The most important steps you can take are:

- Use security software. Look for “always on” computer and mobile device apps with antivirus protection and a firewall to block unwanted internet traffic.

- File your return electronically, as early as possible. Your electronic filing not only eliminates the risk of a thief intercepting your paper return in the mail, but also makes it harder for someone else to file a fake return using your social security number (SSN).

- Do not click on links or open attachments in suspicious emails or text messages. If you receive an unsolicited or surprising message supposedly from the IRS, delete it and call the IRS directly to inquire about the matter. Do the same for strange messages that appear to come from banks, online sellers or credit card issuers.

- Protect your personal information at all times. NEVER give your social security number, address, date of birth or other identifying information to anyone, unless you know exactly who they are and why they need the information. Keep your tax files in a secured location in your home or office.

- Use a VPN on shared WiFi. If you must correspond with the IRS or file your return using a shared internet connection, especially public WiFi, install a virtual private network (VPN) on your device.

By following these guidelines, you can reduce the odds that you will become a victim of identity theft.

IRS Extends Filing and Payment Deadlines Due in April – Did You Know?In response to national health concerns, the IRS ha...
23/03/2020

IRS Extends Filing and Payment Deadlines Due in April – Did You Know?

In response to national health concerns, the IRS has extended both the 2019 federal income tax filing and payment deadlines for most taxpayers. Here are the important details:

- The filing deadline for 2019 federal individual income tax returns has been automatically moved from April 15, 2020 to July 15, 2020.

- The payment deadline for most individual taxpayers to pay their 2019 tax due has also been automatically extended from April 15, 2020 to July 15, 2020. Penalties and interest for income taxes postponed will not begin to accrue until July 16, 2020. This extension applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.

- The same extension applies to estimated tax payments with a due date of April 15, 2020. (For most payers of estimated taxes, this is their first-quarter payment for 2020).

Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension.

HDHPs and COVID-19 - Did You Know?The IRS has advised that high-deductible health plans (HDHPs) can pay for 2019 Novel C...
18/03/2020

HDHPs and COVID-19 - Did You Know?

The IRS has advised that high-deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus (COVID-19)-related testing and treatment without jeopardizing their status.

If you have a HDHP that covers these costs, you may continue to contribute to a health savings account (HSA). Health plans that otherwise qualify as HDHPs will not lose that status merely because they cover the cost of testing for, or treatment of COVID-19 before plan deductibles have been met. Any vaccination costs continue to count as preventative care and may be paid for by an HDHP.

This only applies to HSA-eligible HDHPs, please contact your plan administrator if you have any other type of health plan or specific questions about your plan.

S-Corporations and Partnerships Income Tax Filing DeadlineMarch 16, 2020 is the deadline to file a 2019 income tax retur...
16/03/2020

S-Corporations and Partnerships Income Tax Filing Deadline

March 16, 2020 is the deadline to file a 2019 income tax return for Partnerships (Form 1065) and S-Corporations (1120-S).

If you require a 6-month extension to file, you may submit Form 7004 and then file by September 15th, 2020.

Effective vs. Marginal Tax Rates – Did You Know? Do taxpayers belonging to the “22% tax bracket” actually pay federal in...
11/03/2020

Effective vs. Marginal Tax Rates – Did You Know?

Do taxpayers belonging to the “22% tax bracket” actually pay federal income taxes equal to 22% of their earnings? The answer is no, and the explanation lies in the difference between marginal and effective (or average) tax rates. First off, you only pay income tax on your taxable income, which is your adjusted gross income minus any allowed deductions. Next, each IRS tax rate only applies to the portion of your taxable income that falls within that bracket.

For example, the 2019 tax rates for a single taxpayer included 10% for incomes up to $9,700, 12% for incomes over $9,700, and 22% for incomes over $39,475, with next rate (24%) kicking in at $84,200. Suppose your 2019 total income is $87,000, but your taxable income is only $68,000. Your marginal tax rate (the highest tax rate that applies to you) is then 22%. You will pay 10% on your first $9,700 of income, 12% tax on the part of your income in the $9,700–$39,475 range, and 22% tax on the part of your income in the $39,476–$68,000 range. This all adds up to $10,819 in income tax, or about 12.4% of your total income. So 12.4% is your effective tax rate—the percent of your total income you actually lose to federal income tax.

A tax advisor can help you estimate your effective tax rate so you can better plan your 2020 budget. Remember that in addition to federal income taxes, you may also pay F**A (Social Security and Medicare), state, and local taxes.

IRS Raises Starting Age for Required IRA Distributions – Did You Know?The 2019 SECURE Act raised the age at which tradit...
09/03/2020

IRS Raises Starting Age for Required IRA Distributions – Did You Know?

The 2019 SECURE Act raised the age at which traditional IRA holders must begin taking annual required minimum distributions (RMDs) from 70 ½ to 72 years. If you have a traditional IRA and turned 70 ½ in 2019, you must still take your 2019 RMD by April 1, 2020. However, if you were under 70 ½ years of age on December 31, 2019, you do not need to begin receiving RMDs until the year when you turn 72. Note that this change does not affect the minimum age to withdraw from a traditional IRA without penalty, which remains at 59 ½ years.

Because the SECURE Act was signed into law near the end of December 2019, some banks may have sent out incorrect notices about RMDs in January 2020. If you turn 70 ½ in 2020 and received a notice from your traditional IRA manager that you must take a 2020 RMD, you should receive a correction notice by April 15, 2020 stating that no RMD is due this year. An experienced tax professional can help you determine when you must take your first RMD, and how to best follow up with your IRA manager if you believe you received an incorrect notification.

Refund Amounts - Did You Know?If your refund amount is different than stated on the filed tax return, part or all of you...
04/03/2020

Refund Amounts - Did You Know?

If your refund amount is different than stated on the filed tax return, part or all of your refund may have been used to pay off (offset) past-due federal tax, student loans, state income tax or other past-due debts.

You'll receive a notice from the IRS if such an offset occurs that will show the original tax refund amount, the offset amount, as well as the name, address and telephone number of the agency receiving the payment.

2019 Available Above-the-Line Tax Deductions and Credits – Did You Know?Even if you don't itemize deductions, you may be...
02/03/2020

2019 Available Above-the-Line Tax Deductions and Credits – Did You Know?

Even if you don't itemize deductions, you may be eligible to claim multiple above-the-line deductions and/or tax credits on your 2019 federal tax return. Above-the-line deductions reduce your tax by lowering your taxable income. Tax credits are directly subtracted from your total tax for the year, and some are even refundable if your resulting tax is less than zero. Here is a quick checklist of major above-the-line deductions and tax credits for tax year 2019:

Above-the-Line Deductions:

- Student Loan Interest
- Tuition and Fees Deduction (NOTE: This deduction was originally discontinued by the Tax Cuts and Jobs Act of 2017, but was reinstated for tax years 2018, 2019 and 2020.)
- Educator Expense Deduction
- Health Care Savings Account (HSA) Contributions
- Standard IRA Contributions
- Qualified Business Income (QBI) Deduction

Tax Credits:

- Earned Income Credit
- Child Tax Credit / Credit for Other Dependents
- Credits for Care of Children, Other Dependents or the Elderly or Disabled
Premium Tax Credit (for health insurance obtained through an Affordable Care Act insurance exchange)
- American Opportunity and Lifetime Learning Education Expense Credits
- Adoption Credit
- Credit for Prior Year Alternative Minimum Tax
- Residential Energy Efficiency Credit

If you are self-employed or operate a small business, you may qualify for additional deductions for business and home office expenses. A tax professional can help you identify all of the deductions and credits that you are entitled to for 2019.

Penalties You Can (And Can't) Avoid with a Tax Filing Extension – Did You Know?If for any reason you will not be able to...
29/02/2020

Penalties You Can (And Can't) Avoid with a Tax Filing Extension – Did You Know?

If for any reason you will not be able to file your 2019 federal tax return by the April 15, 2020 due date, you can avoid some—but not all—penalty charges by requesting a filing extension. Most taxpayers can receive an automatic extension of up to six months simply by submitting IRS Form 4868.

Taxpayers who file after the deadline without requesting an extension are subject to the late filing penalty. For returns filed no more than 60 days late, this penalty is typically a small percentage of any tax owed. However, returns filed more than 60 days after the April 15 deadline without an extension are subject to the Minimum Late Filing Penalty. Passed by Congress at the end of 2019, the SECURE Act increased the penalty to the lesser of $435 or 100% of tax owed for returns due in 2020 (this includes, for example, individual returns for 2019).

Most importantly, remember that requesting an extension does not eliminate the risk of penalties for late payment of your taxes. In most cases, 2019 taxes paid after April 15, 2020 will be subject to late fees that accrue monthly. Therefore, if you file for an extension, you should include payment for any tax you expect to owe for 2019. Speak with your tax professional to decide whether requesting an extension is the best option for you, and how much to pay when you submit your request.

Schedules You May Need for Your 2019 Form 1040 – Did You Know?Many taxpayers were surprised to learn that they needed to...
20/02/2020

Schedules You May Need for Your 2019 Form 1040 – Did You Know?

Many taxpayers were surprised to learn that they needed to include multiple numbered schedules with their 2018 federal Form 1040s. Since the IRS has now combined some of these schedules, there are fewer numbered schedules overall for 2019. However, as a result of this consolidation, the 2019 schedules are longer and more complex.

To avoid having your 2019 return rejected by the IRS as incomplete, pay careful attention to whether you need to add one or more of these schedules to your Form 1040:

- Schedule 1 (Additional Income and Adjustments to Income). Use this form to report non-wage income like business income, alimony and unemployment compensation. You must also file this schedule to claim various above-the-line deductions, such as educator expenses, qualified IRA contributions and student loan interest.

- Schedule 2 (Additional Taxes). Taxpayers must complete this schedule if they owe taxes other than ordinary income or capital gains tax, including self-employment tax, alternative minimum tax, tax on retirement account transactions or payroll taxes for household employees. (Combines Schedules 2 and 4 from tax year 2018.)

- Schedule 3 (Additional Credits and Payments). Use this schedule to claim tax credits such as the Credit for Child and Dependent Care Expenses, Education Credits (American Opportunity and Lifetime Learning) and the Premium Tax Credit (Affordable Care Act). You must also file this schedule if you made 2019 tax payments other than paycheck withholding, such as quarterly estimated tax payments. (Combines Schedules 3 and 5 from tax year 2018.)

Several of the lines on these schedules may require completion of additional schedules and forms. You may also need to file one or more lettered schedules (such as Schedule B for interest and dividend income or Schedule C for business income). An experienced tax pro can help you make sure you have completed all schedules that apply to your circumstances.

Where's My Refund?The IRS provides a "Where's my Refund" (https://www.irs.gov/refunds) tool to check the status of your ...
18/02/2020

Where's My Refund?

The IRS provides a "Where's my Refund" (https://www.irs.gov/refunds) tool to check the status of your refund. The "Where's my Refund" tool is updated once daily, usually overnight. Your status is generally available within 24 hours upon the IRS receiving your e-filed return and 4 weeks after mailing your paper return.

If you are claiming the Earned Income Tax Credit or Additional Child Tax Credit, your refund won't be released by the IRS until mid-February. The IRS expects the first EITC/ACTC related refunds to be available in bank accounts or on debit cards by the first week of March, if you chose direct deposit and there were no other issues with the tax return.

Scammers and IRS Impersonation - Did You Know?The IRS has issued alerts about scammers that are continuing to contact ta...
13/02/2020

Scammers and IRS Impersonation - Did You Know?

The IRS has issued alerts about scammers that are continuing to contact taxpayers. Among the most common are phone calls and fake emails. Thieves use the IRS name, logo or a fake website to try and steal money from taxpayers.

Any first contact from the IRS will typically come in the mail.

Please note that the IRS will never:

- Call to demand immediate payment using specific payment method such as a prepaid debit card, gift card or wire transfer
- Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying
- Demand payment of taxes without giving you the opportunity to question or appeal the amount owed
- Ask for credit or debit card numbers over the phone

For information on how to report scams or phishing attempts, visit http://IRS.gov/phishing.

New W-4 Form for 2020 – Did You Know?The IRS has made a number of changes to Form W-4, the Employee Withholding Certific...
10/02/2020

New W-4 Form for 2020 – Did You Know?

The IRS has made a number of changes to Form W-4, the Employee Withholding Certificate, for tax year 2020. Most employers require employees to complete a Form W-4 in order to receive paychecks. Here are four key facts to remember about the new-look form:

- If you provided a W-4 to your employer in a previous year and are happy with your current withholding amount, you do not need to submit a new W-4 in 2020.
- If you start a new job in 2020, or wish to submit a new W-4 to your current employer to adjust your withholding, you must use the new 2020 form.
If your tax situation is simple (for example, one job, no dependents), you may provide your personal information and filing status in Step 1 of the form, and then skip down and sign the form in Step 5.
- Steps 2, 3 and 4 of the form are intended for those with more complex tax situations, such as couples with two incomes, workers with multiple jobs, and those with non-employee income (self-employment or “gig” work, interest, dividends, etc.).

For privacy protection and the most accurate withholding, use the IRS Tax Withholding Estimator link, found below, in conjunction with Form W-4. This tool helps you calculate any needed adjustments to your paycheck withholding. After using the Estimator, enter the recommended increase to your withholding on W-4 line 4(c), or the recommended deduction from your withholding on line 4(b). A qualified tax pro can help you determine which information to enter into the Estimator to get the most reliable result possible.

IRS Tax Withholding Estimator: https://www.irs.gov/individuals/tax-withholding-estimator.

Year-End Transactions Can Change Your 2019 Tax RefundNow is the time to prepare to file your 2019 tax return, and the IR...
06/02/2020

Year-End Transactions Can Change Your 2019 Tax Refund

Now is the time to prepare to file your 2019 tax return, and the IRS is reminding taxpayers that certain end-of-year financial transactions might have significant tax impacts. Tax withholding from paychecks does not ordinarily take into account income sources like yearly or holiday bonuses, stock dividends, or selling real estate or other property at a profit. If you receive such income, you might end up getting a smaller tax refund than you have been anticipating, or even owing tax and penalties for underpayment.

In addition, the IRS reminds taxpayers that if they have outstanding debts like unpaid taxes from previous years, past-due child or spousal support, or overdue student loan payments, their 2019 tax refunds might be reduced by these amounts under the Treasury Offset Program (TOP).

An experienced tax pro can help you determine the tax implications of income you received late in 2019.

2020 Mileage Rate IncreaseStarting on Jan. 1, 2020, the standard mileage rates for the use of a car (also vans, pickups ...
03/02/2020

2020 Mileage Rate Increase

Starting on Jan. 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

- 57.5 cents for every mile of business travel driven, a decrease of one half of a cent from the rate for 2019.
- 17 cents per mile driven for medical or moving purposes, a decrease of 3 cents from the rate for 2019.
- 14 cents per mile driven in service of charitable organizations.

You may also have the option of calculating the actual costs of using your vehicle rather than using the standard mileage rates.

Reduce Fees & Penalties - Did You Know?You should still file your taxes, even if you can't pay, as the failure-to-file p...
30/01/2020

Reduce Fees & Penalties - Did You Know?

You should still file your taxes, even if you can't pay, as the failure-to-file penalty may be 10 times more than the failure-to-pay penalty. If you are unable to pay in full, try to file your tax return and pay as much as you can.

January 31, 2020 Deadline for Filing 1099 Forms – Did You Know?If you are self-employed or own a business, remember that...
27/01/2020

January 31, 2020 Deadline for Filing 1099 Forms – Did You Know?

If you are self-employed or own a business, remember that you may have to send an IRS Form 1099 to any contractor to whom you paid $600 or more in 2019. In most cases, appropriate 1099 forms must be provided to contractors by January 31, 2020. Any Form 1099-MISC that shows nonemployee compensation (Box 7) must also be filed with the IRS by January 31. The deadline for filing most other 1099 forms with the IRS is February 28, 2020 for paper filing, or March 31, 2020 for electronic filing.

Since filing electronically requires special formatting software and permission from the IRS, many small business owners may still have to file paper 1099 forms, along with a Form 1096 cover sheet. A qualified tax advisor can help you determine which forms you need to file, how you can file them, and which deadlines apply to your situation.

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