tag:blogger.com,1999:blog-88984698305395156552024-03-13T12:03:53.557-05:00Accounting and Tax TipsThis blog contains accounting and income tax tips to help answer questions businesses and individuals have about topics that affect most businesses and/or individuals.Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.comBlogger2493125tag:blogger.com,1999:blog-8898469830539515655.post-43853833484695870232020-12-16T12:06:00.000-06:002020-12-16T12:06:19.517-06:00Get Ready for Taxes: Stay home and stay safe with IRS online tools<p><span style="font-family: Arial, sans-serif;">WASHINGTON – The Internal
Revenue Service today encouraged taxpayers to take necessary actions now to
help file federal tax returns timely and accurately in 2021.</span></p>
<p><span style="font-family: "Arial",sans-serif;">This is the fourth in a series
of reminders to help taxpayers get ready for the upcoming tax filing season. A <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMjcsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2luZGl2aWR1YWxzL3N0ZXBzLXRvLXRha2Utbm93LXRvLWdldC1hLWp1bXAtb24tbmV4dC15ZWFycy10YXhlcyJ9.s_2RdXQsREu8ErRVzHYF0CvZTitzBpLdt7wJRPaAuzY/s/7189648/br/91981873796-l" target="_blank">special page</a>, updated and available on IRS.gov, outlines
steps taxpayers can take to make tax filing easier in 2021.<o:p></o:p></span></p>
<p><span style="font-family: "Arial",sans-serif;">With continued social distancing,
taxpayers can stay home and stay safe with IRS <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMjgsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2hlbHAvdGVsZXBob25lLWFzc2lzdGFuY2UifQ.6PKoUG8qR4dyiZyxn2X7DJN2qxnqV_ng3xRh5dUERWs/s/7189648/br/91981873796-l" target="_blank">online tools and resources</a> that help them find the
information they need. These IRS.gov tools are easy to use and available 24
hours a day. Millions of people use them to find information about their
accounts, get answers to tax questions or file and pay taxes. <o:p></o:p></span></p>
<p><b><span style="font-family: "Arial",sans-serif;">Free File</span></b><span style="font-family: "Arial",sans-serif;"><br />
Almost everyone can file electronically for free. The <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMjksInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2ZpbGluZy9mcmVlLWZpbGUtZG8teW91ci1mZWRlcmFsLXRheGVzLWZvci1mcmVlIn0.8gpk1hleg2lC_KKlpXTrO6z0IIqSWdAi3lNRs6bbRIc/s/7189648/br/91981873796-l" target="_blank">IRS Free File program</a>, available only through IRS.gov or
the <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzAsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L25ld3Nyb29tL2lyczJnb2FwcCJ9.NyNLlN5HoA9HzK4i3Zp7TIRVndXmaki2_09fylS0E5U/s/7189648/br/91981873796-l" target="_blank">IRS2Go app</a>, offers brand-name tax preparation software
packages at no cost. The software does all the work of finding deductions, credits
and exemptions. It‘s free for those who earned $72,000 or less in 2020. Some of
the Free File packages also offer free state tax return preparation.<o:p></o:p></span></p>
<p><span style="font-family: "Arial",sans-serif;">Taxpayers comfortable filling
out tax forms electronically, can use <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzEsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2UtZmlsZS1wcm92aWRlcnMvYmVmb3JlLXN0YXJ0aW5nLWZyZWUtZmlsZS1maWxsYWJsZS1mb3JtcyJ9.6rqvS8E3LKebnpEp8NcUyugOwrgU7OeY-kaT9cDsGr0/s/7189648/br/91981873796-l" target="_blank">Free File Fillable Forms</a>, regardless of income, to file
their tax returns either by mail or online.<o:p></o:p></span></p>
<p><b><span style="font-family: "Arial",sans-serif;">Choosing a preparer</span></b><span style="font-family: "Arial",sans-serif;"><br />
The IRS has several options for finding a tax preparer. One resource is <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzIsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L3RheC1wcm9mZXNzaW9uYWxzL2Nob29zaW5nLWEtdGF4LXByb2Zlc3Npb25hbCJ9.qbvA5PlMXluDQ3glKzOHNajkdGwmhvNBDcYXJJz8G4Y/s/7189648/br/91981873796-l" target="_blank">Choosing a Tax Professional</a>, which offers a wealth of
information for selecting a tax professional. The <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzMsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL2lycy50cmVhc3VyeS5nb3YvcnBvL3Jwby5qc2YifQ.tx2IdpEwohZNb_gYwgSQhBu2BhWM0PgZHFK1GP8Xg-g/s/7189648/br/91981873796-l" target="_blank">Directory of Federal Tax Return Preparers with Credentials and
Select Qualifications</a> can help taxpayers find preparers in their area who
currently hold professional credentials recognized by the IRS, or who hold an
Annual Filing Season Program Record of Completion.<o:p></o:p></span></p>
<p><b><span style="font-family: "Arial",sans-serif;">Other online help</span></b><span style="font-family: "Arial",sans-serif;"><br />
The <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzQsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2hlbHAvaXRhIn0.BjZOmV8Dw6DhhaioDiQwl1eAchK0R6eT8oxFrtsklO4/s/7189648/br/91981873796-l" target="_blank">Interactive Tax Assistant</a> answers general tax questions,
including helping to determine if a type of income is taxable or if someone is
eligible to claim certain credits and deductions. With changes to income and
other <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzUsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2luZGl2aWR1YWxzL2RpZC15b3Uta25vdy1saWZlLWV2ZW50cy1saWtlLW1hcnJpYWdlLWJpcnRoLWFuZC1kaXZvcmNlLW1heS1oYXZlLWEtc2lnbmlmaWNhbnQtdGF4LWltcGFjdCJ9.4NzY-195FhpgYJtQ3V5bAHPtovQ45yi9398vQ83NnzQ/s/7189648/br/91981873796-l" target="_blank">life events</a> for many in 2020, tax <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzYsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2NyZWRpdHMtYW5kLWRlZHVjdGlvbnMifQ.caN7PsX-dYh-maiaEdheCXh01RP9AG9jDfci1CsxEp4/s/7189648/br/91981873796-l" target="_blank">credits and deductions</a> can mean more money in a taxpayer’s
pocket and thinking about eligibility now can help make tax filing easier next
year.<br />
<br />
Taxpayers may qualify for credits like the <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzcsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2Zvcm1zLXB1YnMvYWJvdXQtcHVibGljYXRpb24tOTcyIn0.eUVMLA029WdGmevG6tfG22bdTZKWdPSbWeWC1hpHwAQ/s/7189648/br/91981873796-l" target="_blank">Child Tax Credit</a> and <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzgsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L3B1YmxpY2F0aW9ucy9wNTAzIn0.FSXZHJYCcNnCCarihQ0vukzuboLLYm5OqBrMrfK0qO8/s/7189648/br/91981873796-l" target="_blank">Child and Dependent Care Credit</a>. Taxpayers whose dependent
does not qualify for the CTC might be able to claim the <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzksInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2Zvcm1zLXB1YnMvYWJvdXQtcHVibGljYXRpb24tOTcyIn0.D9UDuJdanAkea98hIqYaUbJ7xLjhEaDAjO1dasHrYeY/s/7189648/br/91981873796-l" target="_blank">Credit for Other Dependents</a>. Individuals paying higher
education costs for themselves, a spouse or a dependent, may be eligible to
save some money with <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxNDAsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L25ld3Nyb29tL3RheC1iZW5lZml0cy1mb3ItZWR1Y2F0aW9uLWluZm9ybWF0aW9uLWNlbnRlciJ9.9GcdF7x6MXvBs2Bv3VnupF9pVcdoAY_IyKMoP8eoZN8/s/7189648/br/91981873796-l" target="_blank">education tax credits or deductions</a>. Additionally, low- to
moderate-income taxpayers may qualify for the <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxNDEsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2NyZWRpdHMtZGVkdWN0aW9ucy9pbmRpdmlkdWFscy9lYXJuZWQtaW5jb21lLXRheC1jcmVkaXQifQ.21uzKc9rKijOH1VOQ5utzcHGW8KgU35QF2571b5VzDI/s/7189648/br/91981873796-l" target="_blank">Earned Income Tax Credit</a>.<o:p></o:p></span></p>
<p><span style="font-family: "Arial",sans-serif;">Beginning in January 2021, the
Interactive Tax Assistant will be updated to include answers to more tax law
questions.<o:p></o:p></span></p>
<p><span style="font-family: "Arial",sans-serif;">Taxpayers can check the status
of their refund using the "<a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxNDIsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L3JlZnVuZHMifQ.5k--eqArY3jRdl_jlh6Hf9PeT66HvEonIdJU0qaSfzc/s/7189648/br/91981873796-l" target="_blank">Where's My Refund?</a>" tool. The status is available
within 24 hours after the IRS receives their e-filed tax return or up to four
weeks after they mailed a paper return. The “Where’s My Refund?” tool updates
once every 24 hours, usually overnight, so taxpayers only need to check once a
day.<o:p></o:p></span></p>
<p><span style="font-family: "Arial",sans-serif;">The best and fastest way for
taxpayers to get their tax refund is to have it <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxNDMsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L3JlZnVuZHMvZ2V0LXlvdXItcmVmdW5kLWZhc3Rlci10ZWxsLWlycy10by1kaXJlY3QtZGVwb3NpdC15b3VyLXJlZnVuZC10by1vbmUtdHdvLW9yLXRocmVlLWFjY291bnRzIn0.rm3xoigxAMgQ11NVBlBinN8F3GmqKPBxtiSI4BOHsIk/s/7189648/br/91981873796-l" target="_blank">direct deposited</a> into their financial account. Taxpayers
who don’t have a financial account can visit the <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxNDQsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5mZGljLmdvdi9jb3JvbmF2aXJ1cy9lY29ub21pYy1pbXBhY3QtcGF5bWVudHMvaW5kZXguaHRtbCJ9.aBLWdhAajeaLiPfxj36XHCETUlj9ax5LA_wa43Ko55M/s/7189648/br/91981873796-l" target="_blank">FDIC website</a> for information to help open an account
online.<o:p></o:p></span></p>
<span style="font-family: "Arial",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">For more information about planning ahead, see <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxNDUsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L3B1Yi9pcnMtcGRmL3A1MzQ4LnBkZiJ9.OveiUNZPJ7d15AOiCtiwDpRzT14BJd3-ucv-W8eTRVM/s/7189648/br/91981873796-l" target="_blank">Publication 5348</a>, Get Ready to File, and <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxNDYsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTI1MTEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L3B1Yi9pcnMtcGRmL3A1MzQ5LnBkZiJ9.glrFDH6zkfR1jZNNV6dwQPN9aZW2py5cu-QUBRkY-Nk/s/7189648/br/91981873796-l" target="_blank">Publication 5349</a>, Year-Round Tax Planning is for Everyone.</span>Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-68905682932107645212020-12-16T12:04:00.004-06:002020-12-16T12:04:52.874-06:00New things taxpayers should consider as they get ready to file taxes in 2021<p><span style="background-color: white; font-family: Arial, sans-serif; font-size: 10pt;">When people </span><a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMjgsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTc0MDEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2luZGl2aWR1YWxzL3N0ZXBzLXRvLXRha2Utbm93LXRvLWdldC1hLWp1bXAtb24tbmV4dC15ZWFycy10YXhlcyJ9.8qx1m-uIrsd8IdEza2ki-7XMz16EJtesmgi5zc-1O0c/s/7189648/br/91986789775-l" style="font-family: Arial, sans-serif; font-size: 10pt;" target="_blank">get ready</a><span style="background-color: white; font-family: Arial, sans-serif; font-size: 10pt;"> to file their federal tax return there are new
things to consider when it comes to which credits to claim and what deductions
to take. These things can affect the size of any refund the taxpayer may
receive. </span></p><p><span style="background: white; font-family: Arial, sans-serif; font-size: 10pt;">Here are some new key things people should consider when filing their 2020 tax
return.</span><span style="font-family: "Arial",sans-serif;"><o:p></o:p></span></p>
<strong><span style="background: white; font-family: Arial, sans-serif; font-size: 10pt;">Recovery rebate credit</span></strong><span style="background: white; font-family: Arial, sans-serif; font-size: 10pt;"> <br />
Taxpayers may be able to claim the <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMjksInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTc0MDEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L25ld3Nyb29tL3JlY292ZXJ5LXJlYmF0ZS1jcmVkaXQifQ.xNnOKGJgXcR7dG_51YcRvn3LMsCkSm3jA4OYmnZ9D5Y/s/7189648/br/91986789775-l" target="_blank">recovery rebate credit</a> if they met the <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzAsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTc0MDEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L25ld3Nyb29tL2Vjb25vbWljLWltcGFjdC1wYXltZW50LWluZm9ybWF0aW9uLWNlbnRlci10b3BpYy1hLWVpcC1lbGlnaWJpbGl0eSJ9.viNw0gNeavwpTZBWaCZmNnZCSoM2R7NFenx4gXO1zT0/s/7189648/br/91986789775-l" target="_blank">eligibility requirements</a> in 2020 and one of the following
applies to them: <br />
• They didn't receive an Economic Impact Payment in 2020.<br />
• They are single and their payment was less than $1,200.<br />
• They are married, filed jointly for 2018 or 2019 and their
payment was less than $2,400.<br />
• They didn't receive $500 for each qualifying child.<br />
<br />
<strong>Refund interest payment</strong><br />
People who received a federal tax refund in 2020 may have been paid interest.
The IRS sent <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzEsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTc0MDEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L25ld3Nyb29tLzEzLXBvaW50LTktbWlsbGlvbi1hbWVyaWNhbnMtdG8tcmVjZWl2ZS1pcnMtdGF4LXJlZnVuZC1pbnRlcmVzdC10YXhhYmxlLXBheW1lbnRzLXRvLWF2ZXJhZ2UtMTgtZG9sbGFycyJ9.gwIhF2zXYbcIByQwe6cBsoWpmuoOD-k70QUXRUswz7U/s/7189648/br/91986789775-l" target="_blank">interest payments</a> to individual taxpayers who timely filed
their 2019 federal income tax returns and received refunds. Most interest
payments were received separately from tax refunds. Interest payments are
taxable and must be reported on 2020 federal income tax returns. In January
2021, the IRS will send a <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzIsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTc0MDEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2Zvcm1zLXB1YnMvYWJvdXQtZm9ybS0xMDk5LWludCJ9.RzGOIvmBE8iH_VbPpY9TqSgfxmC5tXAH8Uslfd_kWUs/s/7189648/br/91986789775-l" target="_blank">Form 1099-INT</a>, Interest Income, to anyone who received
interest of at least $10.<br />
<br />
<strong>New charitable deduction
allowance</strong> <br />
New this year, taxpayers who don't itemize deductions can take a <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzMsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTc0MDEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L25ld3Nyb29tL2hvdy10aGUtY2FyZXMtYWN0LWNoYW5nZXMtZGVkdWN0aW5nLWNoYXJpdGFibGUtY29udHJpYnV0aW9ucyJ9._XE5YWNG-b-bwtha0V06bx3NwChtk0QDxBMLYwnex88/s/7189648/br/91986789775-l" target="_blank">charitable deduction</a> of up to $300 for cash contributions
made in 2020 to <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzQsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTc0MDEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2NoYXJpdGllcy1ub24tcHJvZml0cy90YXgtZXhlbXB0LW9yZ2FuaXphdGlvbi1zZWFyY2gifQ.K9tzGMNlEWegsvFl8h012Vv2qTnpDSHV71W4HdkvY1M/s/7189648/br/91986789775-l" target="_blank">qualifying organizations</a>. For more information, people
should review <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzUsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTc0MDEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2Zvcm1zLXB1YnMvYWJvdXQtcHVibGljYXRpb24tNTI2In0.uRe33izP-9wWGicCkPzYOVpcXBaMDnJ55rHDu-Fa0yE/s/7189648/br/91986789775-l" target="_blank">Publication 526</a>, Charitable Contributions. <br />
<br />
<strong>Other refund-related
reminders</strong><b><br />
</b> • Taxpayers shouldn’t rely on receiving a refund by a
certain date, especially when making major purchases or paying bills. Some tax
returns may require additional review and processing may take longer. <br />
• Refunds for taxpayers claiming the <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzYsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTc0MDEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2NyZWRpdHMtZGVkdWN0aW9ucy9pbmRpdmlkdWFscy9lYXJuZWQtaW5jb21lLXRheC1jcmVkaXQifQ.XdrHmYQTY2tMyq-VHv6vpseGp77f9hpt0ieV-J0nWtI/s/7189648/br/91986789775-l" target="_blank">earned income tax credit or additional child tax credit</a>
can’t be issued before mid-February. This applies to the entire refund, not
just the portion associated with this credit. <br />
• The fastest and most secure way to receive a refund is to
combine direct deposit with electronic filing, including the IRS <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzcsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTc0MDEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L2ZpbGluZy9mcmVlLWZpbGUtZG8teW91ci1mZWRlcmFsLXRheGVzLWZvci1mcmVlIn0.BJkLiwPTaneVsau_gK1ypZbWB3RAQezSemJm-w8xEKc/s/7189648/br/91986789775-l" target="_blank">Free File</a> program. Taxpayers can track the status of their
refund using the <a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzgsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTc0MDEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L3JlZnVuZHMifQ.mqmBBtOH3CNKpvGPSpgXBrJOtaLhzcO5PGBvnyHDH-c/s/7189648/br/91986789775-l" target="_blank"><i>Where’s My Refund?</i></a> tool.<br />
<br /><b><strong>More information:</strong></b></span><span style="background: white; font-family: Arial, sans-serif; font-size: 11pt;"><br />
</span><span style="background: white; font-family: Arial, sans-serif; font-size: 10pt;"><a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzksInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTc0MDEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L3B1Yi9pcnMtcGRmL3A1MzQ4LnBkZiJ9.UqQdrImx1_CDcp4vOwDxGxygDhRY8aMPVsHdVDgKZiw/s/7189648/br/91986789775-l" target="_blank">Publication 5348</a>, Get Ready to File </span><span style="background: white; font-family: Arial, sans-serif; font-size: 11pt;"><br />
</span><span style="background: white; font-family: Arial, sans-serif; font-size: 10pt;"><a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxNDAsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTYuMzIxMTc0MDEiLCJ1cmwiOiJodHRwczovL3d3dy5pcnMuZ292L3B1Yi9pcnMtcGRmL3A1MzQ5LnBkZiJ9.zxNs_dRGV-ykpBUs6InugipqKZeku4x9I5jhH9_ALPM/s/7189648/br/91986789775-l" target="_blank">Publication 5349</a>, Year-Round Tax Planning is for Everyone </span>Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-58088394352996623452019-10-12T06:48:00.000-05:002019-10-12T06:48:10.348-05:00U.S. Department of Labor Issues Notice of Proposed Rulemaking for Tipped Employees<div style="background-color: white; box-sizing: inherit; color: #212121; font-family: "Source Sans Pro", sans-serif; font-size: 17px; margin-bottom: 1em; padding: 0px; text-align: justify;">
<span style="box-sizing: inherit; font-weight: bolder !important;">WASHINGTON, DC</span><span style="box-sizing: inherit; font-weight: bolder !important;"> </span>– The U.S. Department of Labor announced <a href="https://www.federalregister.gov/documents/2019/10/08/2019-20868/tip-regulations-under-the-fair-labor-standards-act" rel="noopener noreferrer" style="background-color: transparent; box-sizing: inherit; color: #981b1e; outline-offset: 1px !important; outline: 0px; touch-action: manipulation; transition: color 0.5s ease 0s;" target="_blank">a proposed rule for tip provisions</a> of the Fair Labor Standards Act (FLSA) implementing provisions of the Consolidated Appropriations Act of 2018 (CAA). The proposal would also codify existing Wage and Hour Division (WHD) guidance into a rule.</div>
<div>
<div style="background-color: white; box-sizing: inherit; color: #212121; font-family: "Source Sans Pro", sans-serif; font-size: 17px; margin-bottom: 1em; padding: 0px; text-align: justify;">
The CAA prohibits employers from keeping employees' tips. During the development of those provisions, the Department provided technical assistance to Members of Congress. The Department's proposed rule would allow employers who do not take a tip credit to establish a tip pool to be shared between workers who receive tips and are paid the full minimum wage and employees that do not traditionally receive tips, such as dishwashers and cooks.</div>
</div>
<div>
<div style="background-color: white; box-sizing: inherit; color: #212121; font-family: "Source Sans Pro", sans-serif; font-size: 17px; margin-bottom: 1em; padding: 0px; text-align: justify;">
The proposed rule would not impact regulations providing that employers who take a tip credit may only have a tip pool among traditionally tipped employees. An employer may take a tip credit toward its minimum wage obligation for tipped employees equal to the difference between the required cash wage (currently $2.13 per hour) and the federal minimum wage. Establishments utilizing a tip credit may only have a tip pool among traditionally tipped employees.</div>
</div>
<div>
<div style="background-color: white; box-sizing: inherit; color: #212121; font-family: "Source Sans Pro", sans-serif; font-size: 17px; margin-bottom: 1em; padding: 0px; text-align: justify;">
Additionally, the proposed rule reflects the Department's guidance that an employer may take a tip credit for any amount of time an employee in a tipped occupation performs related non-tipped duties with tipped duties. For the employer to use the tip credit, the employee must perform non-tipped duties contemporaneous with, or within a reasonable time immediately before or after, performing the tipped duties. The proposed regulation also addresses which non-tipped duties are related to a tip-producing occupation.</div>
</div>
<div>
<div style="background-color: white; box-sizing: inherit; color: #212121; font-family: "Source Sans Pro", sans-serif; font-size: 17px; margin-bottom: 1em; padding: 0px; text-align: justify;">
"The proposed rule shows the Department's commitment to ensure that employees' tips are not stolen," said Wage and Hour Administrator Cheryl Stanton. "This proposal offers a clear pathway for both employers and employees to legally operate a tip pool. The Department is also seeking to add further guidelines in order to complement congressional action and solidify current guidance with the benefit of public input through notice and comment rulemaking."</div>
</div>
<div>
<div style="background-color: white; box-sizing: inherit; color: #212121; font-family: "Source Sans Pro", sans-serif; font-size: 17px; margin-bottom: 1em; padding: 0px; text-align: justify;">
This NPRM is available for review and public comment for 60 days. The Department encourages interested parties to submit comments on the proposed rule. The NPRM, along with the procedures for submitting comments, can be found at the WHD's <a href="https://www.dol.gov/WHD/flsa/tipcreditnprm.htm" style="background-color: transparent; box-sizing: inherit; color: #981b1e; outline-offset: 1px !important; outline: 0px; touch-action: manipulation; transition: color 0.5s ease 0s;">Proposed Rule website</a>.</div>
</div>
<div>
<div style="background-color: white; box-sizing: inherit; color: #212121; font-family: "Source Sans Pro", sans-serif; font-size: 17px; margin-bottom: 1em; padding: 0px; text-align: justify;">
WHD's mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the Nation's workforce. WHD enforces Federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the FLSA. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to Federal contracts for construction and for the provision of goods and services.</div>
</div>
<div>
<div class="field field--name-field-press-body field--type-text-with-summary field--label-hidden clearfix" style="background-color: white; box-sizing: inherit; color: #212121; font-family: "Source Sans Pro", sans-serif; font-size: 16px; margin: 0px; max-width: 900px; padding: 0px;">
<div style="box-sizing: inherit; font-size: 17px; margin-bottom: 1em; padding: 0px; text-align: justify;">
The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.</div>
<div>
<div class="field field--name-field-agency-reference field--type-entity-reference field--label-inline clearfix" style="box-sizing: inherit; margin: 0px; padding: 0px; text-align: justify;">
<div style="box-sizing: inherit; display: inline-block; font-weight: 700; margin: 0px; padding: 0px;">
Agency</div>
<div style="box-sizing: inherit; display: inline-block; margin: 0px; padding: 0px;">
Wage and Hour Division</div>
</div>
<div class="field field--name-field-press-release-date field--type-datetime field--label-inline clearfix" style="box-sizing: inherit; margin: 0px; padding: 0px; text-align: justify;">
<div style="box-sizing: inherit; display: inline-block; font-weight: 700; margin: 0px; padding: 0px;">
Date</div>
<div style="box-sizing: inherit; display: inline-block; margin: 0px; padding: 0px;">
October 7, 2019</div>
</div>
<div class="field field--name-field-press-release-number field--type-string field--label-inline clearfix" style="box-sizing: inherit; margin: 0px; padding: 0px; text-align: justify;">
<div style="box-sizing: inherit; display: inline-block; font-weight: 700; margin: 0px; padding: 0px;">
Release Number</div>
<div style="box-sizing: inherit; display: inline-block; margin: 0px; padding: 0px;">
19-1800-NAT</div>
</div>
<div class="field field--name-field-contact-card field--type-entity-reference field--label-hidden clearfix" style="box-sizing: inherit; margin: 0px; padding: 0px;">
<div style="box-sizing: inherit; margin: 0px; padding: 15px 0px 0px;">
<div about="/node/103569" data-history-node-id="103569" role="article" style="box-sizing: inherit; margin: 0px; padding: 0px;">
<div class="contact-card-name" style="box-sizing: inherit; margin: 0px; padding: 0px; text-align: justify;">
<span style="box-sizing: inherit; font-weight: bolder !important;">Contact:</span> Emily Weeks</div>
<div style="box-sizing: inherit; margin: 0px; padding: 0px;">
<div class="field field--name-field-contact-phone field--type-telephone field--label-inline clearfix" style="box-sizing: inherit; margin: 0px; padding: 0px; text-align: justify;">
<div style="box-sizing: inherit; display: inline-block; font-weight: 700; margin: 0px; padding: 0px;">
Phone Number</div>
<div style="box-sizing: inherit; display: inline-block; margin: 0px; padding: 0px;">
<a href="tel:202-693-4681" style="background-color: transparent; box-sizing: inherit; color: #981b1e; outline-offset: 1px !important; outline: 0px; touch-action: manipulation; transition: color 0.5s ease 0s;">202-693-4681</a></div>
</div>
<div class="field field--name-field-contact-email field--type-email field--label-inline clearfix" style="box-sizing: inherit; margin: 0px; padding: 0px; text-align: justify;">
<div style="box-sizing: inherit; display: inline-block; font-weight: 700; margin: 0px; padding: 0px;">
Email</div>
<div style="box-sizing: inherit; display: inline-block; margin: 0px; padding: 0px;">
<a href="mailto:weeks.emily.c@dol.gov" style="background-color: transparent; box-sizing: inherit; color: #981b1e; outline-offset: 1px !important; outline: 0px; touch-action: manipulation; transition: color 0.5s ease 0s;">weeks.emily.c@dol.gov</a></div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-76060099419211262292019-10-11T15:26:00.001-05:002019-10-11T15:26:24.994-05:00Breaking: DOL finalizes $35K overtime threshold<div style="text-align: justify;">
<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><span style="background-color: yellow;">The U.S. Department of Labor (DOL) announced today it will publish a final overtime rule, setting the minimum salary threshold for overtime eligibility at $35,568. <u>The regulations</u></span> implement the Fair Labor Standards Act (FLSA)'s overtime mandate and, according to a senior DOL official, <span style="background-color: yellow;"><u>will make an estimated 1.3 million additional U.S. workers eligible for overtime pay. The final rule will be effective January 1, 2020.</u></span><!--[endif]--></span></div>
<div style="text-align: justify;">
<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">The threshold is slightly higher that the $35,308 proposed in the initial draft of the rule and also will allow employers to count non-discretionary bonuses, incentives, and commissions as up to 10% of an employee's salary level, as long as those bonuses are paid annually. The FLSA's exemption threshold for highly-compensated employees will be set at $107,432, lower that in DOL's initial draft but still higher than the previous threshold of $100,000.</span></div>
<div style="text-align: justify;">
<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><b><u>What is it?</u></b></span></div>
<div style="text-align: justify;">
<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">The FLSA finalized a new rule that would increase the minimum salary requirement for exempt employees.</span></div>
<div style="text-align: justify;">
<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><b><u>What does this mean for business owners?</u></b></span></div>
<div style="text-align: justify;">
<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">Any employee on a salary less than $38,568 will now be eligible for overtime. Clients that don't want to raise their employee's salaries to the new minimum will need a system to track their hours and overtime.</span></div>
Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-11605433509641097202019-09-13T11:54:00.004-05:002019-09-13T11:54:33.716-05:00Tax Withholding Estimator helps retirees; figures tax on Social Security benefits<br />
<div style="text-align: justify;">
WASHINGTON — The new <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTkwOTEzLjEwMTQ3NDkxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE5MDkxMy4xMDE0NzQ5MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2Nzg1MzgxJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mdGFyZ2V0aWQ9JmZsPSZtdmlkPSZleHRyYT0mJiY=&&&127&&&https://www.irs.gov/individuals/tax-withholding-estimator" target="_blank">Tax Withholding Estimator</a>, launched last month on IRS.gov,
includes user-friendly features designed to help retirees quickly and easily
figure the right amount of tax to be taken out of their pension payments. <o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The mobile-friendly estimator replaces the Withholding Calculator. The
estimator has features specially tailored to the unique needs of retirees
receiving pension payments and Social Security benefits.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The new tool offers retirees, as well as employees and self-employed
individuals, a more user-friendly way to check their withholding. Whether they
receive wages or pension payments, it helps taxpayers estimate if the right
amount is being withheld from their income to cover their tax liability. The
estimator uses a simple, six-step question-and-answer format using information
like marital or filing status, income, withholding, adjustments, deductions and
credits.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
To help people use the tool most effectively, the IRS is holding a free
two-hour webinar on Thursday, Sept. 19 at 2 p.m. Eastern time. Among other
things, the webinar will feature step-by-step instructions on how to use the
new estimator and a live question-and-answer session. To sign up, visit the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTkwOTEzLjEwMTQ3NDkxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE5MDkxMy4xMDE0NzQ5MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2Nzg1MzgxJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mdGFyZ2V0aWQ9JmZsPSZtdmlkPSZleHRyYT0mJiY=&&&128&&&https://www.irs.gov/businesses/small-businesses-self-employed/webinars-for-tax-practitioners" target="_blank">webinar</a> page on IRS.gov.<o:p></o:p></div>
<br />
<div style="text-align: justify;">
<b><br /></b></div>
<div style="text-align: justify;">
<b>Special help for retirees</b></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
A retiree can use the estimator to enter any pension income or Social Security
benefits they or their spouse receive. The tool then automatically calculates
the taxable portion and incorporates it into an overall estimate of their
projected tax liability and withholding for the year. If a withholding change
is needed, the retiree can choose a tax due of close to zero or a refund
amount. The estimator will then link to <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTkwOTEzLjEwMTQ3NDkxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE5MDkxMy4xMDE0NzQ5MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2Nzg1MzgxJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mdGFyZ2V0aWQ9JmZsPSZtdmlkPSZleHRyYT0mJiY=&&&129&&&https://www.irs.gov/forms-pubs/about-form-w-4-p" target="_blank">Form W-4P</a>, Withholding Certificate for Pension or Annuity
Payments, and give the retiree a specific withholding recommendation based on
the option chosen. It also gives instructions on how to fill in each line of
the form.</div>
<o:p></o:p><br />
<br />
<div style="text-align: justify;">
<b><br /></b></div>
<div style="text-align: justify;">
<b>Enhancements for everyone</b> </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The enhancements for retirees are just a few of the many new features offered
by the Tax Withholding Estimator. Others include:</div>
<o:p></o:p><br />
<ul type="disc">
<li class="MsoNormal" style="text-align: justify;"><span style="mso-fareast-font-family: "Times New Roman";">Plain language to improve taxpayer understanding.<o:p></o:p></span></li>
<li class="MsoNormal" style="text-align: justify;"><span style="mso-fareast-font-family: "Times New Roman";">Mobile-friendly design.<o:p></o:p></span></li>
<li class="MsoNormal" style="text-align: justify;"><span style="mso-fareast-font-family: "Times New Roman";">A new progress tracker to help taxpayers know how much
more information they need to enter.<o:p></o:p></span></li>
<li class="MsoNormal" style="text-align: justify;"><span style="mso-fareast-font-family: "Times New Roman";">The ability to go back and forth through the steps,
correct previous entries and skip questions that don’t apply.<o:p></o:p></span></li>
<li class="MsoNormal" style="text-align: justify;"><span style="mso-fareast-font-family: "Times New Roman";">Tips and links to help users quickly determine if they
qualify for various tax credits and deductions.<o:p></o:p></span></li>
<li class="MsoNormal" style="text-align: justify;"><span style="mso-fareast-font-family: "Times New Roman";">Automatic calculation of taxes on self-employment
income.<o:p></o:p></span></li>
</ul>
<div style="text-align: justify;">
The IRS urges both pension recipients and wage-earners to do a Paycheck
Checkup now and review their withholding for 2019. This is especially important
for anyone who faced an unexpected tax bill or penalty when they filed earlier
this year. It’s also a critical step for those who made withholding adjustments
in 2018 or had a major life change, such as marriage, the birth of a child,
adoption or buying a home.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
People most at risk of having too little tax withheld include those who
itemized in the past, but now take the increased standard deduction. They also
include households with two wage earners, employees with non-wage sources of
income and those with complex tax situations.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Also, anyone who changes their withholding in the middle or latter part of
this year should do another Paycheck Checkup in January. That will help ensure
that they have the right amount of tax withheld for all of 2020.</div>
Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-69136827672083907822019-09-13T11:53:00.000-05:002019-09-13T11:53:12.745-05:00Treasury, IRS release final and proposed regulations on new 100% depreciation<div style="text-align: justify;">
WASHINGTON — The Treasury Department and the Internal Revenue Service today
released <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTkwOTEzLjEwMTU1MjAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE5MDkxMy4xMDE1NTIwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2Nzg1NDAxJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mdGFyZ2V0aWQ9JmZsPSZtdmlkPSZleHRyYT0mJiY=&&&127&&&https://www.irs.gov/pub/irs-drop/td-9874.pdf" target="_blank">final regulations</a> and additional <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTkwOTEzLjEwMTU1MjAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE5MDkxMy4xMDE1NTIwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2Nzg1NDAxJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mdGFyZ2V0aWQ9JmZsPSZtdmlkPSZleHRyYT0mJiY=&&&128&&&https://www.irs.gov/pub/irs-drop/nprm-reg-106808-19.pdf" target="_blank">proposed regulations</a> under section 168(k) of the Internal Revenue
Code on the new 100% additional first year depreciation deduction that allows
businesses to write off most depreciable business assets in the year they are
placed in service by the business.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The regulations released today on IRS.gov have been submitted to the Federal
Register and may vary slightly from the published documents due to minor
editorial changes. The documents published in the Federal Register will be the
official documents.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The final regulations finalize the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTkwOTEzLjEwMTU1MjAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE5MDkxMy4xMDE1NTIwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2Nzg1NDAxJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mdGFyZ2V0aWQ9JmZsPSZtdmlkPSZleHRyYT0mJiY=&&&129&&&https://www.federalregister.gov/documents/2018/08/08/2018-16716/additional-first-year-depreciation-deduction" target="_blank">proposed regulations</a> issued in August 2018 which implement
several provisions included in the Tax Cuts and Jobs Act (TCJA). The proposed
regulations contain new provisions not addressed previously.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The 100% additional first year depreciation deduction generally applies to
depreciable business assets with a recovery period of 20 years or less and
certain other property. Machinery, equipment, computers, appliances and
furniture generally qualify.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The deduction applies to qualifying property acquired and placed in service
after Sept. 27, 2017. The final regulations provide clarifying guidance on the
requirements that must be met for property to qualify for the deduction,
including used property. The final regulations also provide rules for qualified
film, television and live theatrical productions.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Additionally, in the proposed regulations, the Treasury Department and IRS
propose rules regarding (i) certain property not eligible for the additional
first year depreciation deduction, (ii) a de minimis use rule for determining
whether a taxpayer previously used property; (iii) components acquired after
Sept. 27, 2017, of larger property for which construction began before Sept.
28, 2017; and (iv) other aspects not dealt with in the previous August 2018
proposed regulations. The proposed regulations also withdraw and repropose
rules regarding application of the used property acquisition requirements (i)
to consolidated groups, and (ii) to a series of related transactions. <o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
For details on claiming the deduction or electing out of claiming it, see
the final regulations or the instructions to <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTkwOTEzLjEwMTU1MjAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE5MDkxMy4xMDE1NTIwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2Nzg1NDAxJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mdGFyZ2V0aWQ9JmZsPSZtdmlkPSZleHRyYT0mJiY=&&&130&&&https://www.irs.gov/forms-pubs/about-form-4562" target="_blank">Form 4562</a>, Depreciation and Amortization (Including
Information on Listed Property). For tax years that include Sept. 28, 2017, see
<a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTkwOTEzLjEwMTU1MjAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE5MDkxMy4xMDE1NTIwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2Nzg1NDAxJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mdGFyZ2V0aWQ9JmZsPSZtdmlkPSZleHRyYT0mJiY=&&&131&&&https://www.irs.gov/pub/irs-drop/rp-19-33.pdf" target="_blank">Rev. Proc. 2019-33</a> for further information about making a
late election or revoking an election.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Taxpayers who elect out of the 100% depreciation deduction must do so on a
timely-filed return. Those who have already timely filed their 2018 return and
did not elect out but still wish to do so have six months from the original
deadline, without an extension, to file an amended return.<o:p></o:p></div>
<div style="text-align: justify;">
<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">For more information about this and other TCJA
provisions, visit <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTkwOTEzLjEwMTU1MjAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE5MDkxMy4xMDE1NTIwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2Nzg1NDAxJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mdGFyZ2V0aWQ9JmZsPSZtdmlkPSZleHRyYT0mJiY=&&&132&&&https://www.irs.gov/tax-reform" target="_blank">IRS.gov/taxreform</a>.</span></div>
Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-37229702908050271232019-08-09T12:13:00.001-05:002019-08-09T12:13:14.803-05:00Tax tips for summertime employment<br />
<span style="font-family: "Arial",sans-serif; font-size: 10.0pt;">Summertime
workers often qualify for tax <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTkwODA5Ljg5NjA3MDEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTkwODA5Ljg5NjA3MDEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjc4MDc4OSZlbWFpbGlkPW1hc3RlcnR5cGVAbWFic3BjLmNvbSZ1c2VyaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnRhcmdldGlkPSZmbD0mbXZpZD0mZXh0cmE9JiYm&&&125&&&https://www.irs.gov/credits-deductions-for-individuals" target="_blank">credits or deductions</a>. Taxpayers working summer jobs should
file a return regardless of whether they earn enough to owe federal income tax.
Filing a return provides a refund for taxes withheld when they file next year.</span><span style="font-family: "Arial",sans-serif;"><o:p></o:p></span><br />
<span style="font-family: "Arial",sans-serif; font-size: 10.0pt;"><br /></span>
<span style="font-family: "Arial",sans-serif; font-size: 10.0pt;">For more
information, see: <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTkwODA5Ljg5NjA3MDEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTkwODA5Ljg5NjA3MDEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjc4MDc4OSZlbWFpbGlkPW1hc3RlcnR5cGVAbWFic3BjLmNvbSZ1c2VyaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnRhcmdldGlkPSZmbD0mbXZpZD0mZXh0cmE9JiYm&&&126&&&https://www.irs.gov/newsroom/have-a-sunnier-tax-season-with-these-summertime-irs-tax-tips" target="_blank">Have a sunnier tax season with these summertime IRS tax tips</a>.</span><br />
Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-89115290814681707862019-08-09T12:12:00.001-05:002019-08-09T12:13:46.302-05:00IRS launches new Tax Withholding Estimator online tool<br />
<span style="font-family: "arial" , sans-serif; font-size: 10.0pt;">The Internal
Revenue Service is alerting the small business and self-employed community
about its recent <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTkwODA5Ljg5NjA3MDEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTkwODA5Ljg5NjA3MDEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjc4MDc4OSZlbWFpbGlkPW1hc3RlcnR5cGVAbWFic3BjLmNvbSZ1c2VyaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnRhcmdldGlkPSZmbD0mbXZpZD0mZXh0cmE9JiYm&&&122&&&https://www.irs.gov/individuals/irs-tax-withholding-estimator" target="_blank">launch of a new IRS Tax Withholding Estimator online tool</a>.
It replaces and expands the previous IRS Withholding Calculator.</span><span style="font-family: "arial" , sans-serif;"><o:p></o:p></span><br />
<span style="font-family: "arial" , sans-serif; font-size: 10.0pt;"><br /></span>
<span style="font-family: "arial" , sans-serif; font-size: 10.0pt;">The new tool
offers a mobile-friendly, step-by-step way for employees, self-employed
individuals, and retirees to tailor the amount of income tax withheld from
their wages, self-employment income and pension payments. Other features
include:</span><span style="font-family: "arial" , sans-serif;"><o:p></o:p></span><br />
<ul type="disc">
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "arial" , sans-serif; font-size: 10.0pt;">The
ability to more effectively project either a tax due amount close to zero,
or a refund amount during filing time.</span><span style="font-family: "arial" , sans-serif; font-size: 9.0pt;"><o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "arial" , sans-serif; font-size: 10.0pt;">Self-employment
tax for individuals who have self-employment income in addition to wages
or pensions.</span><span style="font-family: "arial" , sans-serif; font-size: 9.0pt;"><o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "arial" , sans-serif; font-size: 10.0pt;">A
new progress tracker to help users see how much more information they need
to input.</span><span style="font-family: "arial" , sans-serif; font-size: 9.0pt;"><o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "arial" , sans-serif; font-size: 10.0pt;">The
ability to move back and forth through the steps, correct previous entries
and skip questions that don’t apply.</span><span style="font-family: "arial" , sans-serif; font-size: 9.0pt;"><o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "arial" , sans-serif; font-size: 10.0pt;">Tips
and links to help the user quickly determine if they qualify for various
tax credits and deductions.</span><span style="font-family: "arial" , sans-serif; font-size: 9.0pt;"><o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "arial" , sans-serif; font-size: 10.0pt;">A
mobile-friendly design.</span><span style="font-family: "arial" , sans-serif; font-size: 9.0pt;"><o:p></o:p></span></li>
</ul>
<span style="font-family: "arial" , sans-serif; font-size: 10.0pt;">The IRS
continues to urge everyone to do a <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTkwODA5Ljg5NjA3MDEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTkwODA5Ljg5NjA3MDEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjc4MDc4OSZlbWFpbGlkPW1hc3RlcnR5cGVAbWFic3BjLmNvbSZ1c2VyaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnRhcmdldGlkPSZmbD0mbXZpZD0mZXh0cmE9JiYm&&&123&&&https://www.irs.gov/paycheck-checkup" target="_blank">Paycheck Checkup</a> and review their withholding for 2019.
This is especially important for those who faced an unexpected tax bill or a
penalty when they filed earlier this year. </span><span style="font-family: "arial" , sans-serif;"><o:p></o:p></span><br />
<span style="font-family: "arial" , sans-serif; font-size: 10.0pt;">For more
information, see: <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTkwODA5Ljg5NjA3MDEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTkwODA5Ljg5NjA3MDEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjc4MDc4OSZlbWFpbGlkPW1hc3RlcnR5cGVAbWFic3BjLmNvbSZ1c2VyaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnRhcmdldGlkPSZmbD0mbXZpZD0mZXh0cmE9JiYm&&&124&&&https://www.irs.gov/newsroom/irs-launches-new-tax-withholding-estimator-redesigned-online-tool-makes-it-easier-to-do-a-paycheck-checkup" target="_blank">IRS launches new Tax Withholding Estimator; Redesigned online
tool makes it easier to do a paycheck checkup</a>.</span>Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-66296981809367186302018-05-04T13:27:00.003-05:002018-05-04T13:27:15.923-05:00For Small Business Week: Tax credit can help employers hiring new workers; key certification requirement applies<br />
With many businesses facing a tight job market, the Internal Revenue Service
reminds employers to check out a valuable tax credit available to them for
hiring long-term unemployment recipients and other categories of workers with
employment barriers.<o:p></o:p><br />
<br />
During National Small Business Week — April 29 to May 5 — the Internal
Revenue Service is highlighting tax benefits and resources designed to help new
and existing small businesses.<o:p></o:p><br />
<br />
The Work Opportunity Tax Credit (WOTC) is a long-standing income tax benefit
that encourages employers to hire designated categories of workers who face
significant barriers to employment. For any employer considering this option,
the WOTC may be able to help.<o:p></o:p><br />
<br />
For those who haven’t claimed the WOTC in a while, the IRS noted that
legislation enacted in recent years has both expanded and modified the credit.
For example, legislation effective Jan. 1, 2016, added a new category for
long-term unemployment recipients who had been unemployed for a period of at
least 27 weeks and received state or federal unemployment benefits during part
or all of that time.<o:p></o:p><br />
<br />
Here’s how it works.<o:p></o:p><br />
<br />
The credit, usually claimed on <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTA0Ljg5MzY4MzIxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwNC44OTM2ODMyMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NzQyJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&127&&&https://www.irs.gov/forms-pubs/about-form-5884">Form
5884</a>, Work Opportunity Credit, is generally based on wages paid to eligible
workers during the first two years of employment. To qualify for the credit, an
employer must first request certification by filing IRS <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTA0Ljg5MzY4MzIxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwNC44OTM2ODMyMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NzQyJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&128&&&https://www.irs.gov/forms-pubs/form-8850-pre-screening-notice-and-certification-request-for-the-work-opportunity-credit">Form
8850</a>, Pre-screening Notice and Certification Request for the Work
Opportunity Credit, with the state workforce agency within 28 days after the
eligible worker begins work. Other requirements and further details can be
found in the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTA0Ljg5MzY4MzIxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwNC44OTM2ODMyMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NzQyJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&129&&&https://www.irs.gov/pub/irs-pdf/i8850.pdf">instructions</a>
to Form 8850.<o:p></o:p><br />
<br />
There are now 10 categories of WOTC-eligible workers. Besides long-term
unemployment recipients, the other categories include certain veterans and
recipients of various kinds of public assistance, among others.<o:p></o:p><br />
<br />
The 10 categories are:<o:p></o:p><br />
<ul type="disc">
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Qualified IV-A Temporary Assistance for Needy Families
(TANF) recipients<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Unemployed veterans, including disabled veterans<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Ex-felons<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Designated community residents living in Empowerment
Zones or Rural Renewal Counties<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Vocational rehabilitation referrals<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Summer youth employees living in Empowerment Zones<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Food stamp (SNAP) recipients<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Supplemental Security Income (SSI) recipients<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Long-term family assistance recipients<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Qualified long-term unemployment recipients.<o:p></o:p></span></li>
</ul>
Eligible businesses claim the WOTC on their income tax return. The credit is
first figured on Form 5884 and then becomes a part of the general business
credit claimed on <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTA0Ljg5MzY4MzIxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwNC44OTM2ODMyMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NzQyJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&130&&&https://www.irs.gov/forms-pubs/about-form-3800-general-business-credit">Form
3800</a>, General Business Credit.<o:p></o:p><br />
<br />
Though the credit is not available to tax-exempt organizations for most
categories of new hires, a special rule allows them to get the WOTC for hiring
qualified veterans. These organizations claim the credit on <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTA0Ljg5MzY4MzIxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwNC44OTM2ODMyMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NzQyJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&131&&&https://www.irs.gov/forms-pubs/form-5884-c-work-opportunity-credit-for-qualified-tax-exempt-organizations-hiring-qualified-veterans">Form
5884-C</a>, Work Opportunity Credit for Qualified Tax Exempt Organizations
Hiring Qualified Veterans. Visit the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTA0Ljg5MzY4MzIxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwNC44OTM2ODMyMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NzQyJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&132&&&https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit">WOTC</a>
page on IRS.gov for more information.<br />
Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-7635509547660053062018-05-04T13:26:00.000-05:002018-05-04T13:26:12.013-05:00How the Employer Credit for Family and Medical Leave Benefits Employers<br />
During National Small Business Week, the IRS focuses on educating employers
about the employer credit for paid family and medical leave created by the Tax
Cuts and Jobs Act passed last year. Employers may claim the credit based on
wages paid to qualifying employees while they are on family and medical leave.<br />
<o:p></o:p><br />
<br />
Here are some facts about this credit and how it benefits employers:<o:p></o:p><br />
<ul type="disc">
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">To claim the credit, employers must have a written
policy that meets certain requirements:<o:p></o:p></span></li>
<ul type="circle">
<li class="MsoNormal" style="mso-list: l0 level2 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="mso-fareast-font-family: "Times New Roman";">Employers must provide
at least two weeks of paid family and medical leave annually to all
qualifying employees who work full time. This can be prorated for
employees who work part time.<o:p></o:p></span></li>
<li class="MsoNormal" style="margin-bottom: 12.0pt; mso-list: l0 level2 lfo1; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="mso-fareast-font-family: "Times New Roman";">The paid leave must be not less than 50 percent of the
wages normally paid to the employee.<o:p></o:p></span></li>
</ul>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">A qualifying employee is any employee who: <o:p></o:p></span></li>
<ul type="circle">
<li class="MsoNormal" style="mso-list: l0 level2 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="mso-fareast-font-family: "Times New Roman";">Has been employed for
one year or more.<o:p></o:p></span></li>
<li class="MsoNormal" style="margin-bottom: 12.0pt; mso-list: l0 level2 lfo1; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="mso-fareast-font-family: "Times New Roman";">For the preceding year, had compensation that did not
exceed a certain amount. For 2018, the employee must not have earned more
than $72,000 in 2017.<o:p></o:p></span></li>
</ul>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">For purposes of this credit, “family and medical leave”
is leave for one or more of the following reasons:<o:p></o:p></span></li>
<ul type="circle">
<li class="MsoNormal" style="mso-list: l0 level2 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="mso-fareast-font-family: "Times New Roman";">Birth of an employee’s
child and to care for the newborn.<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level2 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="mso-fareast-font-family: "Times New Roman";">Placement of a child
with the employee for adoption or foster care.<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level2 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="mso-fareast-font-family: "Times New Roman";">To care for the
employee’s spouse, child, or parent who has a serious health condition.<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level2 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="mso-fareast-font-family: "Times New Roman";">A serious health
condition that makes the employee unable to perform the functions of his
or her position.<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level2 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="mso-fareast-font-family: "Times New Roman";">Any qualifying event
due to an employee’s spouse, child, or parent being on covered active
duty – or being called to duty – in the Armed Forces.<o:p></o:p></span></li>
<li class="MsoNormal" style="margin-bottom: 12.0pt; mso-list: l0 level2 lfo1; mso-margin-top-alt: auto; tab-stops: list 1.0in;"><span style="mso-fareast-font-family: "Times New Roman";">To care for a service member who is the employee’s
spouse, child, parent, or next of kin.<o:p></o:p></span></li>
</ul>
<li class="MsoNormal" style="margin-bottom: 12.0pt; mso-list: l0 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">The credit is a percentage of the amount of wages paid
to a qualifying employee while on family and medical leave for up to 12
weeks per taxable year. <o:p></o:p></span></li>
<li class="MsoNormal" style="margin-bottom: 12.0pt; mso-list: l0 level1 lfo1; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">An employer must reduce its deduction for wages or
salaries paid or incurred by the amount determined as a credit. Any
wages taken into account in determining any other general business credit
may not be used toward this credit.<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">The credit is generally effective for wages paid in
taxable years of the employer beginning after December 31, 2017. It is not
available for wages paid in taxable years beginning after December 31,
2019.<o:p></o:p></span></li>
</ul>
<strong><span style="font-family: "Calibri",sans-serif;">More Information:</span></strong><br />
<span style="font-family: Calibri, sans-serif;"><b><br /></b></span>
<a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTA0Ljg5MzY2OTQxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwNC44OTM2Njk0MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NzM1JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&128&&&https://www.irs.gov/newsroom/section-45s-employer-credit-for-paid-family-and-medical-leave-faqs">Employer
Credit for Family and Medical Leave FAQs</a><br />
Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-84426875317064792992018-05-04T13:25:00.000-05:002018-05-04T13:25:02.609-05:00For Small Business Week, IRS offers tips to small business owners about the overlooked home office deduction<br />
The Internal Revenue Service today reminded small business owners who work
from a home office that they may be overlooking a common deduction.<o:p></o:p><br />
<br />
The IRS encourages small business owners to explore the guidelines
surrounding home office deductions so they understand the legal guidelines and
options available. More details are available in <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTAzLjg5MzIwNTgxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwMy44OTMyMDU4MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NjAxJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&127&&&http://www.irs.gov/publications/p587/">Publication
587</a>.<o:p></o:p><br />
<br />
As part of National Small Business Week (April 29-May 5), the IRS is
highlighting a series of tips and resources available for small business
owners. For someone considering claiming the home office deduction, there are
two options available:<o:p></o:p><br />
<br />
<strong><span style="font-family: "Calibri",sans-serif;">Regular method</span></strong><o:p></o:p><br />
<strong><span style="font-family: "Calibri",sans-serif;"><br /></span></strong>
The first option for calculating the home office deduction is the regular
method. This method requires computing the business use of the home by dividing
the expenses of operating the home between personal and business use. Direct
business expenses are fully deductible and the percentage of the home floor
space used for business is assignable to indirect total expenses. Self-employed
taxpayers file <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTAzLjg5MzIwNTgxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwMy44OTMyMDU4MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NjAxJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&128&&&https://www.irs.gov/pub/irs-pdf/f1040sc.pdf">Schedule
C</a>, Profit or Loss From Business (Sole Proprietorship), and compute this
deduction on <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTAzLjg5MzIwNTgxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwMy44OTMyMDU4MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NjAxJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&129&&&https://www.irs.gov/pub/irs-pdf/f8829.pdf">Form
8829</a>, Expenses for Business Use of Your Home.<o:p></o:p><br />
<br />
<strong><span style="font-family: "Calibri",sans-serif;">Simplified method</span></strong><o:p></o:p><br />
<strong><span style="font-family: "Calibri",sans-serif;"><br /></span></strong>
The second option, the simplified method, reduces the paperwork and
recordkeeping burden. The simplified method has a prescribed rate of $5 a
square foot for business use of the home. There is a maximum allowable
deduction available based on up to 300 square feet. Choosing this option
requires taxpayers to complete a short worksheet in the tax instructions and
enter the result on the tax return. There is a special calculation for daycare
providers. Self-employed individuals claim the home office deduction on <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTAzLjg5MzIwNTgxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwMy44OTMyMDU4MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NjAxJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&130&&&https://www.irs.gov/pub/irs-pdf/f1040sc.pdf">Schedule
C</a>, Line 30, and farmers claim it on <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTAzLjg5MzIwNTgxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwMy44OTMyMDU4MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NjAxJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&131&&&https://www.irs.gov/pub/irs-pdf/f1040sf.pdf">Schedule
F</a>, Profits or Loss from Farming, Line 32.<o:p></o:p><br />
<br />
Regardless of the method used to compute the deduction, business expenses in
excess of the gross income limitation are not deductible. Deductible expenses
for business use of a home include the business portion of real estate taxes,
mortgage interest, rent, casualty losses, utilities, insurance, depreciation,
maintenance and repairs. In general, expenses for the parts of the home not
used for business are not deductible.<o:p></o:p><br />
<br />
Deductions for business storage are allowed when the home is the only fixed
location of the business, or for regular use of a residence for daycare
services; exclusive use isn't required in these cases.<o:p></o:p><br />
Further details on the home office deduction and the simplified method can
be found in <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTAzLjg5MzIwNTgxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwMy44OTMyMDU4MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NjAxJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&132&&&http://www.irs.gov/publications/p587/">Publication
587</a>, Business Use of Your Home, on IRS.gov.<br />
Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-75401340522396093012018-05-04T13:23:00.003-05:002018-05-04T13:23:40.930-05:00IRS urges small businesses: Protect IT systems from identity theftThe IRS, state tax agencies and the nation’s tax industry are warning small
businesses to be on-guard against a growing wave of identity theft attempts
against employers.<o:p></o:p><br />
<br />
Small business identity theft is big business for identity thieves. When
businesses and their employees have their identities stolen, their sensitive
information can be used to open credit card accounts or file fraudulent tax
returns for bogus refunds.<o:p></o:p><br />
<br />
The Internal Revenue Service, state tax agencies and the private-sector tax
community -- partners in the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTAzLjg5MzA3ODYxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwMy44OTMwNzg2MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NTYwJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&127&&&https://www.irs.gov/privacy-disclosure/security-summit">Security
Summit</a> -- are marking “Small Business Week” with a series of reminders to
taxpayers and tax professionals. The week concludes with warnings about small
business identity theft.<o:p></o:p><br />
<br />
In the past two years, the Internal Revenue Service has noted a sharp
increase in the number of fraudulent filings of Forms 1120, 1120S and 1041 as
well as Schedule K-1. The fraudulent filings apply to partnerships as well as
estate and trust forms.<o:p></o:p><br />
<br />
Identity thieves are displaying a sophisticated knowledge of the tax code
and tax industry filing practices as they attempt to obtain valuable data to
help file fraudulent returns. To help counter this, Security Summit partners
have expanded efforts to better protect business filers and identify suspected
identity theft returns.<o:p></o:p><br />
<br />
Identity thieves have long made use of stolen Employer Identification
Numbers (EINs) to create fake Forms W-2 that they would file with fraudulent
individual tax returns. Fraudsters also used EINs to open new lines of credit
or obtain credit cards. Now they are using company names and EINs to file
fraudulent returns.<o:p></o:p><br />
<br />
As with fraudulent individual returns, there are certain signs that may
indicate identity theft. Business, partnerships and estate and trust filers
should be alert to potential identity theft and contact the IRS if they
experience any of these issues:<o:p></o:p><br />
<ul type="disc">
<li class="MsoNormal">Extension to file requests are rejected because a
return with the Employer Identification Number or Social Security number
is already on file;<o:p></o:p></li>
<li class="MsoNormal">An e-filed return is rejected because a duplicate
EIN/SSN is already on file with the IRS;<o:p></o:p></li>
<li class="MsoNormal">Received <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTAzLjg5MzA3ODYxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwMy44OTMwNzg2MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NTYwJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&128&&&https://www.irs.gov/individuals/understanding-your-letter-5263c-or-letter-6042c">5263C
or 6042C</a> Letters;<o:p></o:p></li>
<li class="MsoNormal">An unexpected receipt of a tax transcript or IRS notice
that doesn’t correspond to anything submitted by the filer;<o:p></o:p></li>
<li class="MsoNormal">Failure to receive expected and routine correspondence
from the IRS because the thief has changed the address.<o:p></o:p></li>
</ul>
<strong><span style="font-family: "Calibri",sans-serif;">Steps to protect
businesses</span></strong><o:p></o:p><br />
<strong><span style="font-family: "Calibri",sans-serif;"><br /></span></strong>
The IRS, state tax agencies and software providers also share certain data
points from tax returns, including business returns, that help identify a
suspicious filing. The IRS and states ask that business and tax practitioners
provide additional information that will help verify the legitimacy of the tax
return.<o:p></o:p><br />
<br />
Respond to the “know your customer” questions when prompted by software:<o:p></o:p><br />
<ul type="disc">
<li class="MsoNormal">Who signed the return – including name and SSN<o:p></o:p></li>
<li class="MsoNormal">Tax payment history of the company<o:p></o:p></li>
<li class="MsoNormal">Parent company information<o:p></o:p></li>
<li class="MsoNormal">Additional information based on deductions claimed<o:p></o:p></li>
<li class="MsoNormal">Tax filing history of the company<o:p></o:p></li>
</ul>
Sole proprietorships that file Schedule C and partnerships filing Schedule
K-1 with Form 1040 also will be asked to provide additional information items,
such as a driver’s license number. Providing this information will help the IRS
and states identify suspicious business-related tax returns.<o:p></o:p><br />
<br />
For small businesses looking to enhance their security, the National
Institute of Standards and Technology (NIST) produced <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTAzLjg5MzA3ODYxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwMy44OTMwNzg2MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NTYwJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&129&&&http://nvlpubs.nist.gov/nistpubs/ir/2016/NIST.IR.7621r1.pdf">Small
Business Information Security: The Fundamentals</a>. NIST is the branch of the
U.S. Commerce Department that sets information security frameworks followed by
federal agencies.<o:p></o:p><br />
<br />
The United States Computer Emergency Readiness Team (US-CERT) has<a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTAzLjg5MzA3ODYxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwMy44OTMwNzg2MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NTYwJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&130&&&https://www.us-cert.gov/ccubedvp/smb">
Resources for Small and Midsize Businesses</a>. Many secretaries of state also
provide resources on business-related identity theft as well.<o:p></o:p><br />
<br />
<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">The IRS, state tax agencies and the tax industry
continue to work together to fight against tax-related identity theft and to
protect business and individual taxpayers. Everyone can help. Take steps
recommended by cyber experts and visit the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTAzLjg5MzA3ODYxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwMy44OTMwNzg2MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NTYwJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&131&&&https://www.irs.gov/identity-theft-fraud-scams/identity-protection">Identity
Protection: Prevention, Detection and Victim Assistance</a> for information about
business-related identity theft.</span>Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-54350012373497556032018-05-04T13:22:00.001-05:002018-05-04T13:22:14.032-05:00Tax Reform: Changes to Depreciation Affect Businesses Now<br />
As employers across the country celebrate National Small Business Week, the
IRS reminds businesses that the passage of the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwNTAzLjg5MzA1ODIxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDUwMy44OTMwNTgyMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTg0NTUyJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&128&&&https://www.irs.gov/newsroom/tax-reform">Tax
Cuts and Jobs Act </a>may affect their depreciation deductions and taxes.<o:p></o:p><br />
<br />
Business taxpayers can generally depreciate tangible property except land,
including buildings, machinery, vehicles, furniture and equipment.<o:p></o:p><br />
<br />
Changes to depreciation and how they will affect businesses may include:<o:p></o:p><br />
<br />
<ul>
<li>Businesses can immediately expense more under the new law; taxpayers may
elect to expense the cost of any property and deduct it in the year the
property is placed in service.</li>
<li>Maximum deduction increased from $500,000 to $1 million.</li>
<li>The phase-out threshold increased from $2 million to $2.5 million.</li>
<li>The new law allows taxpayers to elect to include improvements made to
nonresidential property. The improvements must have been made after the date
the property was first placed in service.</li>
</ul>
<br />
<o:p></o:p><br />
These improvements include: <o:p></o:p><br />
<ul type="disc">
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Any improvement to a building’s interior<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Roofs<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Heating and air conditioning systems<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Fire protection systems<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Alarm and security systems<o:p></o:p></span></li>
</ul>
Improvements that do not qualify:<o:p></o:p><br />
<ul type="disc">
<li class="MsoNormal" style="mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Enlargement of the building<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Service to elevators or escalators<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="mso-fareast-font-family: "Times New Roman";">Internal structural framework of the building<o:p></o:p></span></li>
</ul>
These changes apply to property placed in service in taxable years beginning
after December 31, 2017.<br />
Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-65876577367304765312018-03-19T12:41:00.001-05:002018-03-19T12:45:21.073-05:00Per Diem Allowance for Meals and Incidental Expenses (M&IE) OnlyA per diem allowance for meal and incidental expenses (M&IE) only may be used to substantiate an employee's or other payee's M&IEs for purposes of the employer's return (Rev. Proc. 2011-47). The amount that is deemed substantiated is equal to the lesser of the per diem allowance or the amount computed at the federal M"&IE rate for the locality of travel for the period that the employee is away from home. If M&IEs are substantiated using a per diem allowance, the entire amount is treated as a food and beverage expense subject to the 50-percent limitation on meal and entertainment expenses.<br />
<br />
The M&IE rate must be prorated for partial days of travel away from home. If an employee's meals are provided by the employer, even though the employee may be working from home, the employee is entitled to deduct only the incidental expense portion of the applicable federal per deim M&IE rates (R.J. Zbylut, Dec. 57,348(M), 95 TCM 1172 (2008)).<br />
<br />
<i>Self-Employed Persons and Employees.</i> Self-employed individuals and employees whose expenses are not reimbursed may also use the M&IE-only rate to substantiate M&IEs while traveling away from home. The taxpayer must actually prove through adequate records or sufficient corroborative evidence the time, place, and business purpose of the travel, and lodging costs.<br />
<br />
<i>Optional Method for Incidental-Expense-Only Deduction.</i> Taxpayers may use an optional method to deduct only incidental expenses in lieu of using actual expenses. Taxpayers who do not incur any meal expenses may deduct $5 per calendar day (or partial day) as ordinary and necessary incidental expenses, paid or incurred, while traveling to any localities within the continental United States (CONUS) or outside the continental United States (OCONUS) (Notice 2017-54, Notice 2016-58). The optional method is subject to the proration rules for partial days and substantiation requirements for taxpayers who use the per diem method for substantiation (Rev. Proc. 2011-47). The optional method for incidental expenses only cannot also be used by taxpayers who use the lodging plus M&IE per diem method, the M&IE-only method, or the high-low method and the optional M&IE-only mnethod<br />
<br />
<i>Transportation Workers.</i> The M&IE rates for travel awy from home on or after October 1, 2017, for both self-employed persons and employees in the transportation industry are $63 for CONUS localities and $68 for OCONUS localities. The M&IE rates for travel away from home on or after October 1, 2016, for both self-employed persons and employees in the transpotation industry are $63 for CONUS localities and $68 for OCONUS localities (Notice 2017-54, Notice 2016-58). An individual is in the transportation industry only if the individual's work: (1) directly involves moving people or goods by airplane, barge, bus, ship, train, or truck; and (2) regularly requires travel away from home that involves travel to localities with differing federal M&IE rates during a single trip.<br />
<br />
Under a calendar-year convention for the transportation industry, taxpayers who used the federal M&IE rates during the first nine months of calendar year2017 to substantiate an individual's travel expenses may not use the special transportation industry rates for that individual until January 1, 2018 (Rev. Proc. 2011-47). Likewise, taxpayers who used the special transportation industry rates for the first nine months of calendar year 2017 to substantiate an individual's travel expenses may not use the federal M&IE rates for that individual until January 1, 2018.Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-91867960372495258732018-03-19T12:15:00.001-05:002018-03-19T12:45:35.518-05:00Per Diem Allowances for Lodging Plus Meals and Incidental Expenses (M&IE)Under the lodging plus meals and incidental expenses (M&IE) per diem method, the amount of an employee's (or other payor's_ reimbursed expenses that is deemed substantiated (for purposes of the employer's return) is equal to the lesser of the employee's per diem allowance or the federal per diem amount for the locality of travel for the period in which the employee is awy from home (Rev. Proc. 2011-47). The employer is not required to provide lodging receipts if per diem allowances are used to substantiate such expenses. The locality of travel is the place where the employee stops for sleep or rest. Employees and self-employed individuals may determine their allowable deductions for reimbursed M&IE while away from home by using the applicable federal M&IE rate. However, unreimbursed lodging costs must be substantiated by required records.<br />
<br />
<i>Per Diem Rates.</i> The federal per diem rate for lodging plus M&IE depends upon the locality or travel. For various geographic areas within the continental United States (the 48 contiguous states plus the District of Columbia) (CONUS), the federal per diem rate for a given locality is equal to the sum of a maximum lodging amount and the M&IE rate for that locality. There are also federal per diem rates for nonforeign localities outside of the continental United States (OCONUS), such as Alaska, Hawaii, Puerto Rico, and U.S. possessions. Rates are also established for foreign travel (foreign OCONUS).<br />
<br />
Rates for CONUS, OCONUS, and foreign travel are published under the Federal Travel Regulations for government travel and are updated periodically (Rev. Proc. 2011-47). The travel rates are issued to coincide with the government's fiscal year of October to September.<br />
<br />
<i>High-Low Method.</i> Instead of using the maximum per diem rates from the CONUS table, taxpayers can compute per diem allowances for travel within the continental United States under the high-low method, which is a simplified method for determining a lodging plus M&IE per diem. This ethod divides all CONUS localities into two categories: low-cost or high-cost localitiesa (Rev. Proc. 2011-47).<br />
<br />
For travel on or after October 1, 2017, through September 30, 2018, the following per diem rates for lodging expenses and M&IE are used for high-cost and low-cost localities (Noltice 2017-54):<br />
<br />
High-cost locality -- Lodging Expense Rate = $216; M&IE Rate = $68; Maximum per diem rate = $284<br />
<br />
Low-cost locality -- Lodging Expense Rate = $134; M&IE Rate = $57; Maximum per diem rate = $191<br />
<br />
For travel on or after October 1, 2016, through September 30, 2017, the following per diem rates for lodging expenses and M&IE are used for high-cost and lkow-cost localities (Notice 2016-58):<br />
<br />
High-cost locality -- Lodging Expense Rate = $214; M&IE Rate = $68; Maximum per diem rate = $282<br />
<br />
Low-cost locality -- Lodging Expense Rate = $132; M&IE Rate = $57; Maximum per diem rate = $189<br />
<br />
Some areas are treated as high-cost during certain periods of the year (e.g., peak tourist season) and as low-cost during other periods. Thus, employers who use the high-low method must determine whether the employee traveled in a high-cost area and if the area was classified as high-cost during the actual period of travel.<br />
<br />
If the high-low method is used for an employee, then the payor may not use the actual federal maximum per diem rates for that employee during the calendar year for travel within CONUS. For travel outside CONUS, the employer may use the applicable federal OCONUS rates, the M&IE-only rate, or reimbursement of actual expoenses.<br />
<br />
<i>Proration of M&IE Allwance.</i> If an individual is traveling away from home for only a portion of the day, these are two alternative methods that may be used to prorate the per diem rate or the M&IE rate. Under the first method, 75 percent of the M&"IE rate (or the M&IE portion of the per diem rate) is allowed for each partial day during which an employee or self-employed individual is traveling on business. Under the second method, referred to as the reasonable business practice method, the M&IE rate may be prorated using any method that is consistently applied and in accordance with reasonable business practice. For example, if an employee travels from 9:00 a.m. one day until 5:00 p.m. the next day, a proration method that gives an amount equal to two times the M&IE rate is treated in accordance with reasonable business practice (Rev. Proc. 2011-47).<br />
<br />
<i>Transition Rates.</i> Taxpayers may continue to use the per diem rates effective prior to October 1, 2017, for the remainder of 2017, or they may begin to use the new per diem rates for reimbursement for travel, as long as they use either the pre-October 1 rates or the updated rates for the October 1 through December 31 period consistently. Taxpayers who used the per diem method or the high-low substantiation method to reimburse travel expenses during the first nine months of calendar year 2017 must continue to use that method for the remainder of the calendar-year 2017. Taxpayers who use the high-low method during the first nine months of calendar-year 2017 may either continue to use the rates and localities in effect before October 1, 2017, or use the updated rates and localities in effect for travel on and after October 1, 2017, as long as they use the same rates and locations consistently for all employees reimbursed under the high-low method.Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-84191281004045851032018-03-19T11:34:00.001-05:002018-03-19T12:45:49.778-05:00Per Diem Methods for Substantiating Meals and Lodging ExpensesA taxpayer must substantiate the amount, time, place, and business purpose of expenses paid or incurred in traveling away from home. Although the taxpayer has the option of keeping the actual records or travel expenses, the IRS has provided per diem allowances under which the amount of meals and incidental expenses (M&IE) may be deemed to be substantiated. The per diem allowances eliminate the need for substantiating actual costs (Rev. Proc. 2011-47). A taxpayer who uses per diem allowances to calculate the deductible amount must still substantiate the time, place, and business purpose of the travel by adequate records or other evidence.<br />
<br />
Although most frequently used in the exployer-employee relationship, per diem allowances may be used in arrangements between any payor and payee, such as between independent contractors and those contracting with them. However, employees related to the payor under the related party rules of Code Sec. 267(b) (using a 10-percent common ownership standard) cannot use per diem substantiation methods.<br />
<br />
<i>Employees.</i> The per diem method can be used to substantiate an employee's reimbursed expenses (for purposes of the employer's return) only if the reimbursement arrangement is an accountable plan and the allowance:<br />
<br />
<ul>
<li>is paid with respect to ordinary and necessary expenses incurred or that the employer reasonably expects to be incurred by an employee for lodging and/or M&IE while traveling away from home in connection with the performance of services as an employee;</li>
<li>is reasonably calculated not to exceed the amount of the expense or the anticipated expenses; and</li>
<li>is paid at the applicable federal per diem rate, a flat rate, or stated schedule.</li>
</ul>
<i>Types of Per Diem Allownaces.</i> There are three types of per diem allowances:<br />
<br />
<ul>
<li>lodging plus M&IE, which provides a per diem allowance to cover lodging as well as meals and incidental expenses;</li>
<li>M&IE only, which provides a per diem allowance for meals and incidental expenses only; and</li>
<li>incidental expenses only, to be used when no meal or lodging expenses are incurred (Rev. Proc. 2011-47).</li>
</ul>
Incidental expenses has the same meaning as in the Federal Travel Regulations (41 C.F.R. 300-3.1). Under those regulations, incidental expenses include <i>only</i> fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. Transportation between places of lodging or business and places where meals are taken, and the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings, are not incidental expenses. Taxpayers using per diem rates may separately deduct or be reimbursed for such transportation and mailing expenses (Notice 2017-54; Notice 2016-58).<br />
<br />
Expenses of laundry, lodging taxes, and telephone calls are not incidental expenses (IRS Pub. 463). Lodging taxes for travel within the continental United States and for nonforeign travel outside the continental United States are reimbursable miscellaneous expenses. However, lodging taxes have not been removed from the foreign per diem rates set by the U.S. State Department (41 C.F.R. 301-11.27).<br />
<br />
<i>Allowances Exceeding Federal Rates.</i> If expenses are substantiated using a per diem amount, regardless of whether it covers lodging plus M&IE or only M&"IE, any reimbursement that exceeds the relevant federal per diem rates for that type of allowance must be included in the employee's (or independent contractor's) gross income. The excess portion is treated as paid under a nonaccountable plan, thus it must be reported on the employee's Form W-2 and is subject to withholding (Rev. § 1.62-2(h)(2)(i)(B)(1)).Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-15676944263376330832018-03-19T11:11:00.000-05:002018-03-19T12:45:59.687-05:00Per Diem Allowances Subject to WithholdingIf the amount of an employee's business expenses are substantiated through the use of an IRS-approved per diem allowance, any amounts paid by the employer to the employee exceeding the amounts deemed substantiated are treated as paid under a nonaccountable plan and subject to income tax withholding and other employment taxes (Reg. §§ 1.62-2(h)(2)(i)(B) and 31.3401(a)-4(b)(1)(ii)).<br />
<br />
For per diem or mileage allowances paid in advance, withholding on any excess must occur no later than the first payroll period following the payroll period in which the expenses paid (i.e., the days or miles of travel) are substantiated by the employee. For a per diem or mileage allowance paid as a reimbursement, the excess amounts reimbursed are subject to withholding when paid.<br />
<div class="MsoNormal">
<o:p></o:p></div>
Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-58213470786620356942018-02-01T12:28:00.000-06:002018-02-01T12:39:52.178-06:00Tax Cuts & Jobs Act of 2017: What You Need to KnowThe <b>Tax Cuts and Jobs Act</b> is a United States Congressional bill to amend the Internal Revenue Code of 1986, effectively altering the rate of taxation for individuals and businesses. Major components of the Act include:<br />
<ul>
<li>Reducing tax rates for individuals and businesses;</li>
<li>Increasing the standard deduction and family tax credits;</li>
<li>Limiting the mortgage interest deduction;</li>
<li>Limiting the Alternative Minimum Tax for individuals and eliminating it for corporations;</li>
<li>Reducing the number of estates impacted by the estate tax; and</li>
<li>Reducing the penalty for the individual mandate of the Affordable Care Act (ACA).</li>
</ul>
There are items in the Act that will affect employers and employees alike. Regardless of the extent of changes employers and employees are faced with due to legislative changes, you can rest assured that MasterType Accounting & Business Services, P.C. is staying up-to-date and ensuring your business is ready to comply with any and all new requirements.<br />
<h2>
<b><span style="color: blue;">Withholding Tables / Tax Rates</span></b></h2>
<h3>
<span style="background-color: white;"><span style="color: purple;">
What You Need to Know as an Individual Taxpayer</span></span></h3>
<ul>
<li>Tax rates will reduce for all tax brackets for married & single taxpayers with the highest tax bracket dropping to 37 percent.</li>
<li>The <b>Supplemental Tax Rate</b> will be set to 22 percent for payments up to $1 million and 37 percent for bonus payments in excess of $1 million paid after January 1, 2018.</li>
<li>The number of income tax brackets remain at seven, but the income ranges in several brackets have been updated.</li>
</ul>
<h3>
<span style="color: purple;">
What You Need to Know as an Employer</span></h3>
<ul>
<li>The IRS has posted the updated tax withholding tables to IRS.gov, showing the new rates for employers to use during 2018.</li>
<li>Employers should begin using the 2018 withholding tables as soon as possible, but no later han February 15, 2018.</li>
</ul>
<h2>
<b><span style="color: blue;">Exemptions</span></b></h2>
<h3>
<b><span style="color: purple;">What You Need to Know as an Employer</span></b></h3>
<ul>
<li>Since personal exemptions were eliminated, this required changes to <b>Federal Forms W-4, Employee's Withholding Allowance Certificate</b>.</li>
<li>The IRS has stated that a new form may not be released until March 2018.</li>
<ul>
<li>Until the new form is available, employers must use the prior versions.</li>
<li>Any exemptions claimed on Form W-4s completed before the new form is released will be null.</li>
</ul>
<li>The removal of personal exemptions will happen concurrently with the release of the new withholding tables.</li>
</ul>
<h2>
<b><span style="color: blue;">Fringe Benefits</span></b></h2>
<h3>
<b><span style="color: purple;">What You Need to Know as an Employer</span></b></h3>
Several items that previously were not subject to Federal Employment tax are now required to be added to gross wages and subject to Federal Income, Social Security, Medicare, and FUTA taxes.<br />
<ul>
<li>These items include: Moving Expense Reimbursements, Exclusion for Bicycle Commuting Reimbursements, and Employee Achievement Awards.</li>
<li>Employers will need to update any deductions used for these reimbursements to include them as wages, subject to Federal Income Tax Withholding, Social Security, Medicare, and SUTA taxes.</li>
</ul>
<h2>
<b><span style="color: blue;">Busines Income Tax Deductions Eliminated</span></b></h2>
<h3>
<b><span style="color: purple;">What You Need to Know as an Employer</span></b></h3>
The Act also contains repeals of deductions from business income tax such as:<br />
<ul>
<li>Eating facilities (meals furnished for convenience of employer)</li>
<li>Entertainment Expenses</li>
<li>Settlements - Sexual Harassment</li>
<li>Transportation Fringe Benefits</li>
</ul>
<h2>
<b><span style="color: blue;">Family and Medical Paid Leave</span></b></h2>
<h3>
<b><span style="color: purple;">What You Need to Know as an Employer</span></b></h3>
<ul>
<li>A business tax credit is now available if certain requirements are met.</li>
<li>Qualified paid leave does not include paid family leave benefits provided under a state plan.</li>
<li>Employers may need to track leave in order to determine eligibility of the credit.</li>
<li>For MasterType Accounting & Business Services, P.C. (MABS) clients, MABS will monitor the requirements and determine any required changes to reports or analytics to aid in determining eligibility.</li>
</ul>
<h2>
<b><span style="color: blue;">A Final Note</span></b></h2>
Many provisions of this Act are set to expire on December 31, 2025. If no legislation is passed to extend the tax changes beyond that date, tax rates and exemption rules will revert to 2017 law.Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-83087771954112991572018-01-31T16:16:00.002-06:002018-01-31T16:16:38.032-06:00Tax Scams — How to Report Them<span style="font-family: "Arial",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">The IRS would like
your help in identifying promoters of “too good to be true” abusive tax
schemes, and tax preparers using illegal schemes to avoid paying taxes.<br />
<br />
Use the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NjAxMjQxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDYwMTI0MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzU5JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&124&&&http://www.irs.gov/pub/irs-pdf/f14242.pdf">Report
Suspected Abusive Tax Promotions or Preparers </a>form to make a referral to
the IRS. Learn more about the role of the IRS Lead Development Center and its
efforts to stop abusive tax schemes at <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NjAxMjQxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDYwMTI0MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzU5JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&125&&&https://www.irs.gov/businesses/small-businesses-self-employed/tax-scams-how-to-report-them">IRS.gov/scams</a>.</span>Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-49328841379850622442018-01-31T16:15:00.004-06:002018-01-31T16:15:55.527-06:00These Tax Credits Can Mean a Refund for Individual Taxpayers<div style="text-align: justify;">
Taxpayers who are not required to file a tax return may want to do so. They
might be eligible for a tax refund and don’t even know it. Some taxpayers might
qualify for a tax credit that can result in money in their pocket. Taxpayers
need to file a 2017 tax return to claim these credits.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Here is information about four tax credits that can mean a refund for
eligible taxpayers:<o:p></o:p></div>
<ul type="disc">
<li class="MsoNormal" style="text-align: justify;"><strong><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Earned
Income Tax Credit.</span></strong> A taxpayer who worked and earned less than $53,930
last year could receive the EITC as a tax refund. They must qualify for
the credit, and may do so with or without a qualifying child. They may be
eligible for up to $6,318. Taxpayers can use the 2017 <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NTkyNjcxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDU5MjY3MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzMzJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&128&&&https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant">EITC
Assistant tool</a> to find out if they qualify.<o:p></o:p></li>
<li class="MsoNormal" style="text-align: justify;"><strong><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Premium
Tax Credit.</span></strong>Taxpayers
who chose to have advance payments of the premium tax credit sent directly
to their insurer during 2017 must file a federal tax return to reconcile
any advance payments with the allowable premium tax credit. In addition,
taxpayers who enrolled in health insurance through the Health Insurance
Marketplace in 2017 and did not receive the benefit of advance credit
payments may be eligible to claim the premium tax credit when they file.
They can use the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NTkyNjcxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDU5MjY3MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzMzJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&129&&&https://www.irs.gov/aca-ita">Interactive
Tax Assistant</a> to see if they qualify for this credit.<o:p></o:p></li>
<li class="MsoNormal" style="text-align: justify;"><strong><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Additional
Child Tax Credit.</span></strong> If a taxpayer has at least one child that qualifies
for the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NTkyNjcxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDU5MjY3MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzMzJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&130&&&https://www.irs.gov/help/ita/is-my-child-a-qualifying-child-for-the-child-tax-credit">Child
Tax Credit</a>, they might be eligible for the ACTC. This credit is for
certain individuals who get less than the full amount of the child tax
credit.<o:p></o:p></li>
<li class="MsoNormal" style="text-align: justify;"><strong><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">American
Opportunity Tax Credit.</span></strong> To claim the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NTkyNjcxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDU5MjY3MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzMzJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&131&&&https://www.irs.gov/newsroom/american-opportunity-tax-credit">AOTC</a>,
the taxpayer, their spouse or their dependent must have been a student who
was enrolled at least half time for one academic period. The credit is
available for four years of post-secondary education. It can be worth up to
$2,500 per eligible student. Even if the taxpayer doesn’t owe any taxes,
they may still qualify. They are required to have <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NTkyNjcxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDU5MjY3MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzMzJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&132&&&https://www.irs.gov/forms-pubs/form-1098-t-tuition-statement">Form
1098-T</a>, Tuition Statement, to be eligible for an education benefit.
Students receive this form from the school they attended. There are
exceptions for some students. Taxpayers should complete <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NTkyNjcxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDU5MjY3MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzMzJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&133&&&https://www.irs.gov/forms-pubs/about-form-8863">Form
8863</a>, Education Credits, and file it with their tax return.<o:p></o:p></li>
</ul>
<div style="text-align: justify;">
By law, the IRS is required to hold EITC and Additional Child Tax Credit
refunds until mid-February — even the portion not associated with the EITC or
ACTC. The IRS expects the earliest of these refunds to be available in
taxpayer bank accounts or debit cards starting February 27, 2018, if these
taxpayers choose direct deposit and there are no other issues with their tax
return.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Instructions for Forms <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NTkyNjcxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDU5MjY3MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzMzJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&134&&&https://www.irs.gov/forms-pubs/about-form-1040">1040</a>,
<a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NTkyNjcxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDU5MjY3MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzMzJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&135&&&https://www.irs.gov/forms-pubs/about-form-1040a">1040A</a>
or <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NTkyNjcxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDU5MjY3MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzMzJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&136&&&https://www.irs.gov/forms-pubs/about-form-1040ez">1040EZ</a>
list income tax filing requirements. Taxpayers can also use the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NTkyNjcxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDU5MjY3MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzMzJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&137&&&https://www.irs.gov/help/ita">Interactive
Tax Assistant tool</a> on IRS.gov to answer many tax questions. They should
look for “Do I need to file a return?” under general topics.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
This tax tip covers information for tax year 2017 and is not affected by the
Tax Cuts and Jobs Act of 2017. Most of the changes in this legislation take
effect in 2018 and will affect the tax returns filed in 2019.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;">More Information:</span></strong><o:p></o:p></div>
<br />
<ul type="disc">
<li class="MsoNormal" style="text-align: justify;"><a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NTkyNjcxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDU5MjY3MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzMzJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&138&&&https://www.irs.gov/forms-pubs/about-publication-596">Publication
596</a>, Earned Income Credit<o:p></o:p></li>
<li class="MsoNormal" style="text-align: justify;"><a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NTkyNjcxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDU5MjY3MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzMzJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&139&&&https://www.irs.gov/forms-pubs/about-schedule-8812-form-1040">Schedule
8812</a> (Form 1040A or 1040), Child Tax Credit<o:p></o:p></li>
<li class="MsoNormal" style="text-align: justify;"><a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NTkyNjcxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDU5MjY3MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzMzJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&140&&&https://www.irs.gov/forms-pubs/about-publication-972">Publication
972</a>, Child Tax Credit<o:p></o:p></li>
<li class="MsoNormal" style="text-align: justify;"><a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NTkyNjcxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDU5MjY3MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzMzJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&141&&&https://www.irs.gov/forms-pubs/about-publication-970">Publication
970</a>, Tax Benefits for Education<o:p></o:p></li>
<li class="MsoNormal" style="text-align: justify;"><a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMxLjg0NTkyNjcxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMS44NDU5MjY3MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNzMzJmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&142&&&https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc">Education
Credits</a><o:p></o:p></li>
</ul>
Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-49241817925813126932018-01-31T12:12:00.000-06:002018-01-31T12:12:00.829-06:00Bookkeeper: The NEW Definition<b><u>Bookkeeper:</u></b> <i>A management accounting professional, often specializing in financial compliance, business strategy, technology setup, execution, and maintenance.</i><br />
<br />
If you look up the definition of a Bookkeeper in Webster's Dictionary, or online, most of the time, the definition of a Bookkeeper is extremely outdated, and no longer applies to the bookkeeping profession. The above definition of a Bookkeeper is more up-to-date, and a much more accurate description of what a Bookkeeper does today.Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-63226859599385960332018-01-31T07:03:00.003-06:002018-01-31T07:03:59.872-06:00Tax Issues for Alaska Native American Corporations and Alaska Native Settlement Trusts<div style="text-align: justify;">
The Internal Revenue Service today reminds Alaska Native Corporations and
Alaska Native Settlement Trusts that they may be able to take advantage of
certain benefits in the recently enacted tax reform legislation. The new law
also requires that certain contributions made by Native Corporations to
Settlement Trusts in 2017 be reported to the Settlement Trusts by January 31,
2018.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;">Assignment of
Payments to a Settlement Trust</span></strong><o:p></o:p></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;"><br /></span></strong></div>
<div style="text-align: justify;">
The new law allows a Native Corporation to assign certain payments to a
Settlement Trust without treating the payments as income for federal tax
purposes.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The assignments must be in writing and the Native Corporations must not have
received the payments prior to the assignment to the trust. The Settlement
Trust must include the payments in its gross income in the taxable year
received, for taxable years beginning in 2017.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
If a Native Corporation assigns payments to a Settlement Trust, they are not
allowed to deduct those same payments.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;">Deduction for
Contributions by a Native Corporation to a Settlement Trust</span></strong><o:p></o:p></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;"><br /></span></strong></div>
<div style="text-align: justify;">
Native Corporations may also choose to deduct contributions made to a
Settlement Trust. The deduction is limited to the amount of the Native
Corporation’s taxable income for that year. Any unused deduction may be
carried forward 15 additional years.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
A Native Corporation makes the election to deduct contributions to a
Settlement Trust for a specific taxable year by including a statement with its
original or amended income tax return. The election is effective only for
the taxable year for which the return is filed. Additionally, the
election may be revoked on a timely filed amendment or supplement to that
income tax return.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
A Native Corporation may make this election for any taxable year for which
the statute of limitations period has not expired. If the refund statute
of limitations period expires before December 22, 2018, the Native Corporation
has until December 21, 2018 to make a claim for credit or refund.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;">Reporting
Requirements for Electing Native Corporations</span></strong><o:p></o:p></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;"><br /></span></strong></div>
<div style="text-align: justify;">
Native Corporations that choose to deduct contributions made to a Settlement
Trust are under a new reporting requirement. They must furnish a
statement to the Settlement Trust providing information about the contributed
property by January 31 of the year after the contribution was made.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The statement must include:<o:p></o:p></div>
<ul type="disc">
<li class="MsoNormal" style="text-align: justify;">the total amount of contributions to which the election
applies,<o:p></o:p></li>
<li class="MsoNormal" style="text-align: justify;">for each contribution, whether the contribution was in
cash,<o:p></o:p></li>
<li class="MsoNormal" style="text-align: justify;">for each contribution of other than cash, the date the
contributed property was acquired by the Native Corporation, the adjusted
tax basis and fair market value of the property at the time of its
contribution; and<o:p></o:p></li>
<li class="MsoNormal" style="text-align: justify;">the date of each contribution.<o:p></o:p></li>
</ul>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;">Deferral of Income
Recognition by Settlement Trusts</span></strong><o:p></o:p></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;"><br /></span></strong></div>
<div style="text-align: justify;">
Generally, the Settlement Trust must include income equal to the deduction
by the Native Corporation. However, under the new law, Settlement Trusts
may choose to defer recognizing contributions of property other than cash as
income until the Settlement Trust sells or disposes of the property. The
new law allows a Settlement Trust to amend the terms of its agreement to allow
this choice up to December 21, 2018, with certain restrictions.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">To defer recognition of income related to any
property contributed to it by a Native Corporation, the Settlement Trust must
identify and describe the property on a statement attached to its original or
amended income tax return for the year in which the contribution was made. A Settlement Trust may make this election for any taxable year for which
the statute of limitations period has not expired. If the refund statute
of limitations period expires before December 22, 2018, the Settlement Trust
has until December 21, 2018 to make a claim for credit or refund.</span></div>
Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-7234686966616289112018-01-30T13:41:00.005-06:002018-01-30T13:41:50.583-06:00IRS Encourages Native Americans to Check Eligibility for Earned Income Tax Credit<div style="text-align: justify;">
The IRS urges Native American taxpayers to check if they qualify for the
earned income tax credit since many workers in Tribal communities often
overlook this credit.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
EITC benefits Native Americans who meet basic rules. Taxpayers must have
income from a job, be self-employed, or run their own business. This includes
home-based businesses and work in the service industry, construction and
farming.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;">Income Limits and
Maximum Credit Amounts</span></strong><o:p></o:p></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;"><br /></span></strong></div>
<div style="text-align: justify;">
For tax year 2017, the income limits for all taxpayers’ <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMwLjg0NTAwMzIxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMC44NDUwMDMyMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNDg4JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&128&&&https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income">earned
income</a> and adjusted gross income must each be less than:<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<table border="1" cellpadding="0" cellspacing="1" class="MsoNormalTable" style="text-align: justify;">
<tbody>
<tr>
<td rowspan="2" style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
<strong><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Filing Status</span></strong><o:p></o:p></div>
</td>
<td colspan="4" style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
<strong><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Qualifying Children Claimed</span></strong><o:p></o:p></div>
</td>
</tr>
<tr>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
<strong><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Zero</span></strong><o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
<strong><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">One</span></strong><o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
<strong><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Two</span></strong><o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
<strong><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Three or More</span></strong><o:p></o:p></div>
</td>
</tr>
<tr>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
<strong><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Single</span></strong><o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$15,010<o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$39,617<o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$45,007<o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$48,340<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
<strong><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Head of Household</span></strong><o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$15,010<o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$39,617<o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$45,007<o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$48,340<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
<strong><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Qualifying Widow(er) with
Dependent Child</span></strong><o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$15,010<o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$39,617<o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$45,007<o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$48,340<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
<strong><span style="font-family: "Calibri",sans-serif; mso-fareast-font-family: "Times New Roman";">Married Filing Jointly</span></strong><o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$20,600<o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$45,207<o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$50,957<o:p></o:p></div>
</td>
<td style="padding: .75pt .75pt .75pt .75pt;">
<div class="MsoNormal">
$53,930<o:p></o:p></div>
</td>
</tr>
</tbody></table>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The maximum credit for Tax Year 2017 is:<o:p></o:p></div>
<ul type="disc">
<li class="MsoNormal" style="text-align: justify;">$6,318 with three or more qualifying children<o:p></o:p></li>
<li class="MsoNormal" style="text-align: justify;">$5,616 with two qualifying children<o:p></o:p></li>
<li class="MsoNormal" style="text-align: justify;">$3,400 with one qualifying child<o:p></o:p></li>
<li class="MsoNormal" style="text-align: justify;">$510 with no qualifying children<o:p></o:p></li>
</ul>
<div style="text-align: justify;">
By law, the IRS cannot issue refunds before mid-February for tax returns
that claim the EITC or the additional child tax credit. The law requires the
IRS to hold the entire refund — even the portion not associated with the EITC
or ACTC. The IRS expects the earliest EITC/ACTC related refunds to be available
in taxpayer bank accounts or on debit cards starting Feb. 27, 2018, if these
taxpayers choose direct deposit and there are no other issues with their tax
return.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;">More Information:</span></strong><o:p></o:p></div>
<br />
<ul type="disc">
<li class="MsoNormal" style="text-align: justify;"><a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMwLjg0NTAwMzIxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMC44NDUwMDMyMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNDg4JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&129&&&https://www.irs.gov/filing/e-file-options">Filing
for Individuals</a><o:p></o:p></li>
<li class="MsoNormal" style="text-align: justify;"><a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMwLjg0NTAwMzIxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMC44NDUwMDMyMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNDg4JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&130&&&https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant">EITC
Assistant</a><o:p></o:p></li>
</ul>
Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-13574614779581494062018-01-30T13:39:00.003-06:002018-01-30T13:39:52.602-06:00IRS Reminds Employers: Forms W-2, W-3 Some Forms 1099-MISC Due Jan. 31<div style="text-align: justify;">
The Internal Revenue Service is reminding employers that the deadline for
filing employee <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMwLjg0NTE2MjAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMC44NDUxNjIwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNTM2JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&129&&&https://www.irs.gov/pub/irs-pdf/iw2w3.pdf">Forms
W-2</a>, Wage and Tax Statement, for calendar year 2017 is Jan. 31, 2018. This
includes <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMwLjg0NTE2MjAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMC44NDUxNjIwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNTM2JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&130&&&https://www.irs.gov/forms-pubs/about-form-w3">Forms
W-3</a>, Transmittal of Wage and Tax Statements.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
In addition, reporting payments to contract workers on <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMwLjg0NTE2MjAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMC44NDUxNjIwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNTM2JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&131&&&https://www.irs.gov/pub/irs-pdf/i1099msc_16.pdf">Form
1099-MISC</a> (box 7, nonemployee compensation) must also be filed by Jan. 31.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Employers must file Form W-2 showing the wages paid and taxes withheld for
the year for each employee with the Social Security Administration. The due
date applies to both e-filed and paper filed W-2s. The Jan. 31 deadline began
last year as part of the Protecting Americans Against Tax Hikes (PATH) Act
legislation to combat identity theft and refund fraud.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The Social Security Administration encourages all employers to e-file their
Forms W-2 by using its <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMwLjg0NTE2MjAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMC44NDUxNjIwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNTM2JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&132&&&https://www.ssa.gov/employer/">Business
Services Online</a>. The online filing <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTMwLjg0NTE2MjAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEzMC44NDUxNjIwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwNTM2JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&133&&&https://www.ssa.gov/employer/W2checklist.htm">checklist</a>
provides a step-by-step process for employers to file W-2s quickly and
securely. Employers are required to use e-file if they file 250 or more Forms
W-2 or W-2c, and failing to do so may incur a penalty. The IRS projects that
employers will file more than 250 million Forms W-2 this year and that the vast
majority will be e-filed. E-filing can save time and effort and helps ensure
accuracy.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<br />
<div style="text-align: justify;">
Employers that file Forms 1097, 1098, 1099 (except a Form 1099-MISC
reporting nonemployee compensation), 3921, 3922 or W-2G electronically, have an
extended filing due date with the IRS of April 2, 2018. However, the due date
for giving the recipient these forms generally remains Jan. 31.<o:p></o:p></div>
Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0tag:blogger.com,1999:blog-8898469830539515655.post-68181049762405776782018-01-30T07:53:00.002-06:002018-01-30T07:53:20.347-06:00IRS Announces 2018 Tax Filing Season Opens with April 17 Deadline; 155 Million Tax Returns Projected, 70 Percent Expect Refunds<div style="text-align: justify;">
Marking the beginning of the nation’s tax season, the Internal Revenue
Service said today that it successfully started accepting and processing 2017
federal individual income tax returns. More than 155 million returns are
expected to be filed this year.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
People have until Tuesday, April 17, 2018, to file their 2017 returns and
pay any taxes due. The filing tax deadline is later this year due to several
factors. The usual April 15 deadline falls on Sunday this year, which would
normally give taxpayers until at least the following Monday. However,
Emancipation Day, a Washington, D.C., holiday, is observed on Monday, April 16,
giving taxpayers nationwide an additional day to file. By law, Washington
holidays impact tax deadlines for everyone in the same way federal holidays do.
Taxpayers requesting an extension will have until Monday, Oct. 15, 2018, to
file.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The IRS expects more than 70 percent of taxpayers to get tax refunds this
year. Last year, nearly 112 million refunds were issued, with an average refund
of $2,895.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
“The IRS has a number of ways to help taxpayers this filing season, and we
encourage people to look into the many options available,” said Acting IRS
Commissioner David Kautter. “The nation’s tax professionals and software
community work with the IRS and help make the tax filing process easier for
Americans. Today’s filing season kick-off reflects many months of hard work by
the nation’s tax community and IRS employees. And we also appreciate the time
and attention taxpayers take as they prepare and file their taxes."<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;">Use e-File and Free
File</span></strong><o:p></o:p></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;"><br /></span></strong></div>
<div style="text-align: justify;">
The IRS expects about 90 percent of returns to be filed electronically.
Choosing <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTI5Ljg0NDU1NTUxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEyOS44NDQ1NTU1MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwMzg0JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&129&&&https://www.irs.gov/Filing/E-File-Options">e-file</a>
and <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTI5Ljg0NDU1NTUxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEyOS44NDQ1NTU1MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwMzg0JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&130&&&https://www.irs.gov/Individuals/Get-your-refund-faster-Tell-IRS-to-Direct-Deposit-your-Refund-to-One-Two-or-Three-Accounts">direct
deposit</a> remains the fastest and safest way to file an accurate income tax
return and receive a refund.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTI5Ljg0NDU1NTUxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEyOS44NDQ1NTU1MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwMzg0JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&131&&&https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free">IRS
Free File</a> program, available at IRS.gov, gives eligible taxpayers a dozen
options for brand-name products. Free File is a partnership with commercial
partners offering free brand-name software to about 100 million individuals and
families with incomes of $66,000 or less. About 70 percent of the nation’s
taxpayers are eligible for IRS Free File. People who earned more than $66,000
may use Free File Fillable Forms, the electronic version of IRS paper forms.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;">Refunds in 2018: More
than 90 Percent in Less than 21 days; EITC/ACTC Refunds Starting Feb. 27</span></strong><o:p></o:p></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;"><br /></span></strong></div>
<div style="text-align: justify;">
The IRS issues more than nine out of 10 refunds in less than 21 days.
However, it’s possible a tax return may require additional review and take
longer. “<a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTI5Ljg0NDU1NTUxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEyOS44NDQ1NTU1MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwMzg0JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&132&&&https://www.irs.gov/refunds">Where’s
My Refund?</a>” has the most up to date information available about refunds.
The tool is updated no more than once a day, so taxpayers don’t need to check
more often.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The IRS also notes that refunds cannot be issued before mid-February for tax
returns that claim the Earned Income Tax Credit or the Additional Child Tax
Credit. This applies to the entire refund — even the portion not associated
with the EITC and ACTC. While the IRS will process the EITC and ACTC returns
when received, these refunds cannot be issued before mid-February. The IRS
expects the earliest EITC/ACTC related refunds to be available in taxpayer bank
accounts or on debit cards starting on Feb. 27, 2018, if they chose direct
deposit and there are no other issues with the tax return.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
“Where's My Refund?” on IRS.gov and the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTI5Ljg0NDU1NTUxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEyOS44NDQ1NTU1MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwMzg0JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&133&&&https://prod.edit.irs.gov/node/15611">IRS2Go
mobile app</a> remain the best way to check the status of a refund. “Where’s My
Refund?” will be updated with projected deposit dates for most early EITC and
ACTC refund filers Feb. 17, so those filers will not see a refund date on
“Where's My Refund?” or through their software packages until then. The IRS,
tax preparers and tax software will not have additional information on refund
dates, so these filers should not contact or call about refunds before the end
of February.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
This law change gives the IRS more time to detect and prevent fraud. Even
with the EITC and ACTC refunds and the additional security safeguards, the IRS
still expects to issue more than nine out of 10 refunds in less than 21 days.
However, it’s possible a particular tax return may require additional review
and take longer. Taxpayers are reminded that state tax agencies have their own
refund processing timeframes that vary, and some states may make additional
reviews to ensure their refunds are being issued properly. Even so, taxpayers
and tax return preparers should file when they’re ready. For those who usually
file early in the year and are ready to file a complete and accurate return,
there is no need to wait to file.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;">Free Tax Help</span></strong><o:p></o:p></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;"><br /></span></strong></div>
<div style="text-align: justify;">
Low- and moderate-income taxpayers can get help filing their tax return for
free. More than 90,000 volunteers around the country can help people correctly
complete their return.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
To get this help, taxpayers can visit one of the more than 12,000
community-based tax help sites that participate in the Volunteer Income Tax Assistance
and Tax Counseling for the Elderly programs. To find the nearest site, use the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTI5Ljg0NDU1NTUxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEyOS44NDQ1NTU1MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwMzg0JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&134&&&https://www.irs.gov/Individuals/Free-Tax-Return-Preparation-for-You-by-Volunteers">VITA/TCE
Site Locator</a> on IRS.gov or the IRS2Go mobile app.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;">Filing Assistance</span></strong><o:p></o:p></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;"><br /></span></strong></div>
<div style="text-align: justify;">
No matter who prepares a federal tax return, by signing the return, the
taxpayer becomes legally responsible for the accuracy of all information
included. IRS.gov offers a number of <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTI5Ljg0NDU1NTUxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEyOS44NDQ1NTU1MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwMzg0JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&135&&&https://www.irs.gov/taxtopics/tc254">tips
about selecting a preparer</a> and information about <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTI5Ljg0NDU1NTUxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEyOS44NDQ1NTU1MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwMzg0JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&136&&&https://www.irs.gov/Tax-Professionals/IRS-Tax-Pro-Association-Partners">national
tax professional groups</a>.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The IRS urges all taxpayers to make sure they have all their year-end
statements in hand before filing. This includes Forms W-2 from employers and Forms
1099 from banks and other payers. Doing so will help avoid refund delays and
the need to file an amended return.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;">Online tools</span></strong><o:p></o:p></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;"><br /></span></strong></div>
<div style="text-align: justify;">
The IRS reminds taxpayers they have a variety of options to get help filing
and preparing their tax return on IRS.gov, the official IRS website. Taxpayers
can find answers to their tax questions and resolve tax issues online. The <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTI5Ljg0NDU1NTUxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEyOS44NDQ1NTU1MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwMzg0JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&137&&&https://www.irs.gov/help/telephone-assistance">Let
Us Help You</a> page helps answer most tax questions, and the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTI5Ljg0NDU1NTUxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEyOS44NDQ1NTU1MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwMzg0JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&138&&&https://www.irs.gov/pub/irs-pdf/p5136.pdf">IRS
Services Guide</a> links to these and other IRS services.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Taxpayers can go to <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTI5Ljg0NDU1NTUxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEyOS44NDQ1NTU1MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwMzg0JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&139&&&https://www.irs.gov/payments/view-your-tax-account">IRS.gov/account</a>
to securely access information about their federal tax account. They can view
the amount they owe, pay online or set up an online payment agreement; access
their tax records online; review the past 18 months of payment history; and
view key tax return information for the current year as filed. Visit <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTI5Ljg0NDU1NTUxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEyOS44NDQ1NTU1MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwMzg0JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&140&&&https://www.irs.gov/individuals/secure-access-how-to-register-for-certain-online-self-help-tools">IRS.gov/secureaccess</a>
to review the required identity authentication process.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The IRS urges taxpayers to take advantage of the many tools and other resources
available on IRS.gov. IRS phone lines will be busy again this year, so to save
time, people should first visit the IRS website for tax assistance.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The IRS continues to work with state tax authorities and the tax industry to
address tax-related identity theft and refund fraud. As part of the <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTI5Ljg0NDU1NTUxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEyOS44NDQ1NTU1MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwMzg0JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&141&&&https://www.irs.gov/privacy-disclosure/security-summit">Security
Summit</a> effort, stronger protections for taxpayers and the nation’s tax
system are in effect for the 2018 tax filing season.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The new measures attack tax-related identity theft from multiple sides. Many
changes will be invisible to taxpayers but will help the IRS, states and the
tax industry provide new protections. New security requirements will better
protect tax software accounts and personal information. <o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;">Renew ITIN to Avoid
Refund Delays</span></strong><o:p></o:p></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;"><br /></span></strong></div>
<div style="text-align: justify;">
Many Individual Taxpayer Identification Numbers (ITINs) expired on Dec. 31,
2017. This includes any ITIN not used on a tax return at least once in the past
three years. Also, any ITIN with middle digits of 70, 71, 72 or 80 (Example:
9NN-70-NNNN or 9NN-80-NNNN) is now expired. ITINs that have middle digits 78 or
79 expired Dec. 31, 2016, but taxpayers can still renew them. Affected taxpayers
should act soon to avoid refund delays and possible loss of eligibility for
some key tax benefits until the ITIN is renewed. An ITIN is used by anyone who
has tax-filing or payment obligations under U.S. tax law but is not eligible
for a Social Security number.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
It can take up to 11 weeks to process a complete and accurate ITIN renewal
application. For that reason, the IRS urges anyone with an expired ITIN needing
to file a tax return this tax season to submit their ITIN renewal application
soon.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;">Sign and Validate
Electronically Filed Tax Returns</span></strong><o:p></o:p></div>
<div style="text-align: justify;">
<strong><span style="font-family: "Calibri",sans-serif;"><br /></span></strong></div>
<div style="text-align: justify;">
All taxpayers should keep a copy of their tax return. Some taxpayers using a
tax filing software product for the first time may need their Adjusted Gross
Income (AGI) amount from their prior-year tax return to verify their identity.<o:p></o:p></div>
<div style="text-align: justify;">
<br /></div>
<br />
<div style="text-align: justify;">
Taxpayers using the same tax software they used last year will not need to
enter their prior year information to electronically sign their 2017 tax
return. Taxpayers can learn more about how to verify their identity and
electronically sign tax returns at <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTgwMTI5Ljg0NDU1NTUxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE4MDEyOS44NDQ1NTU1MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3MTcwMzg0JmVtYWlsaWQ9bWFzdGVydHlwZUBtYWJzcGMuY29tJnVzZXJpZD1tYXN0ZXJ0eXBlQG1hYnNwYy5jb20mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&&&142&&&https://www.irs.gov/individuals/electronic-filing-pin-request?_ga=1.257548360.2101671845.1459264262">Validating
Your Electronically Filed Tax Return</a>.<o:p></o:p></div>
Kenneth Reidhttp://www.blogger.com/profile/15976434299669878977noreply@blogger.com0