Each year we encounter this question as we are gathering information for tax returns. We normally ask for a complete copy of the 1099. The questions we get is "Why do you need all the pages of the 1099 statement? You have the totals that get reported on the 1st page." Here's an explanation. Depending on the types of investments you hold in your account the detail can give us information that provide for additional income and/or deductions. There are state deductions for some types of … [Read more...]
Latest News: Changes to Installment Agreements and Collections
The latest from the IRS was posted the afternoon of March 25, 2020. This is related to relief for taxpayers under installment agreements or anybody receiving notices for liens and levies. The IRS is suspending payments due between April 1 to July 15 for existing installment agreements. Taxpayers unable to pay the amounts in their installment agreements can defer their payments without being in default. However, based on federal law, interest will still continue to accrued. If you owe … [Read more...]
When is my tax return due? When is my tax payment due?
Many of my clients are calling asking when their taxes are due. As of March 18, the IRS posted that tax returns are still due on April 15. They have however delayed the payment due date to July 15 for many taxpayers. Read more at https://www.irs.gov/coronavirus and https://home.treasury.gov/news/press-releases/sm948. The IRS is allowing individual taxpayers to defer up to $1 million of federal income tax payments until July 15, 2020. They are also allowing corporations to defer payments … [Read more...]
IRS Notices
Receiving anything from the IRS can bring on significant stress and can cause you to panic. It’s easy to feel anxious and not know how to react when the situation presents itself. We’re here to remind you to not panic and provide helpful information on what to do if you happen to be one of the millions that receives a letter or a notice this year. First it is important to remember that the IRS doesn’t contact taxpayers by email or phone and will not threaten with lawsuits or other … [Read more...]
Standard or Itemized Deductions?
Are you trying to determine if you should use the standard or itemized deductions? I've been asked by several people "At what point do I start itemizing my deductions?" In some cases people believe it has to do with marriage or age that determines which option you should use. In actuality the determination is by how much it will save you on taxes. Typically an individual or married couple only itemize if they own their personal residence and have a mortgage against it; however, there are a … [Read more...]
Organize Your Tax Information
The way you organize your tax information can be extremely beneficial. It helps your tax preparer, makes the whole process run more quickly, and can mean you receive your return sooner. Keep in mind some of the items listed below may not affect you or your tax return, however if you see something that you have, but has not been a part of your tax return in the past, you should discuss it with your preparer. If you receive an organizer from your preparer make sure to sign the engagement … [Read more...]
Tax Forms to Gather Now
It's time to get to work collecting tax forms! As you know your accountant will be needing all the information coming in the mail saying "tax documentation." There are the basic tax forms the W-2s for employees, 1099s for those that are or have been self employed during the year, 1099s or K-1s for investment income, and 1098s for mortgage interest. In addition to those tax forms don't forget your personal property and real estate tax receipts these are used to help you get more deductions. … [Read more...]
W-2 Forms Need to be Filed in January
As a business owner there are tax forms you need to be concerned with getting prepared and to recipients by the end of January. The forms that affect most business owners are: 1. W-2 forms for your employees. 2. 1099-Misc - these forms go to people or companies that you paid for services or rent in the amount of $600 or more. If the businesses are incorporated you do not need to send them. Keep in mind that an LLC does not mean the company is incorporated. You should ask each person or … [Read more...]
