The start of the 2017 tax season occurred this Monday on January 23rd. (Some argue tax season never ends.) By this we mean that Monday was the first day you can officially your income tax returns. Employers have until the 31st of this month to give you your W-2 and 1099 forms. If you made income on your investments in 2016, you may have to wait until mid-February to get all of your required forms.
As we get closer to tax season, there’s a benefit that many taxpayers consistently miss out on.
I like to help my clients get every benefit from the government they can. That’s why I’m taking time to help you familiarize yourself with the tax advantages of the Saver’s Credit.
Even though non-profit organizations can be tax-exempt, they are still required to file a return with the IRS. Many individuals, including those associated with non-profit organizations, do not understand the tax obligations of a non-profit organization.
I have compiled a top ten list of mistakes made in regard to taxes for these organizations.
• Not understanding the difference in non-profit and tax-exempt. An organization is a non-profit when it registers with the state as a non-profit organization. This state registration does not confer on it tax-exempt status. The organization must file a Form 1023 with the IRS to apply for, and receive tax-exempt status.
• Not filing a return. Because the organization is tax-exempt, some have a belief that the organization is not required to file a tax return. All tax exempt organizations, with the exception of churches, must file a Form 990 annually with the IRS. Read More
When you leave your tax preparer’s office each year, there are two very important questions you should probably be asking yourself.
Question #1:
How secure is your personal information after you leave it with your tax preparer? Probably not very secure! Do they leave your paperwork lying about the place, accessible to all, after they have completed your taxes? Are their computers adequately protected by firewalls and effective anti-virus software? Is there adequate background checks done on their employees, who obviously will have unlimited access to your sensitive personal information? The honest truth is that you really don’t know.
Also, you should be concerned about hackers. These criminals have been successful in hacking into supposedly very secure government computer systems; the Office of Personnel Management, and even the IRS itself come to mind immediately. These people know that they will have access to a treasure trove of personal information if they were to hack into the computers of H&R Block, Liberty Tax, or any CPA or other tax preparation office. So what is to stop them from hacking into your tax preparer’s computer, which obviously will be a lot less protected than the government’s computers? Read More
If you’re looking for things to do to get ready for the upcoming filing season or want to check your list against another, I have one for you. Please see “Preparing for the 2016 Filing Season,” AICPA Tax Insider, 12/17/15.
The article was written before passage of the extenders and appropriations tax package. Here is a list of links to that legislation you may find useful along with a list of some items for immediate consideration.
P.L. 114-113 (12/18/15) – H.R. 2029, Consolidated Appropriations Act 2016 – includes appropriations and other changes along with the Protecting Americans from Tax Hikes Act of 2015 (PATH), which is the extenders bill.
NOTE ON EXTENDERS: The bulk of the tax changes are in PATH, although a few, including a two year extension of Read More
January 4 – Time to Call For Your Tax Appointment –
January is the beginning of tax season. If you have not made an appointment to have your taxes prepared, we encourage you do so before the calendar becomes too crowded.
January 11 – Report Tips to Employer –
If you are an employee who works for tips and received more than $20 in tips during December, you are required to report them to your employer on IRS Form 4070 no later than January 11.
January 15 – Individual Estimated Tax Payment Due –
It’s time to make your fourth quarter estimated tax installment payment for the 2015 tax year.
Almost everyone knows the story of William Tell. Back in the days when the Austrian Hapsburgs were the bully of the block, one of the family’s lackeys ran an arrow through a hat and stuck it to a tree with the strict edict that all good Swiss in Uri should remove their hats in the presence of their overlords. William Tell, either because he was a nationalist or because he had a receding hairline, refused to doff his capuchin.
The enraged Duke of Someplace – whose name no one seems to remember – stood Billy’s son against a tree and placed an apple on his head. The pressure was on. If William could not shoot the apple off the boy’s head with a single arrow at 120 paces, it would not be a pleasant ending for either of them. But the task was mere child’s play for our intrepid hero. “Your life is now safe,” the Duke admitted. Yet, he was curious. “Kindly Read More
As the tax season heats up, so does the activity of the scammers. These scammers, who feed on people’s innate fear of the IRS, use this opportunity to place themselves right at the top of their game. I have heard of many instances of people receiving calls from individuals purporting to be IRS officers, who are making demands for payment of taxes on underreported income, and threatening imprisonment and/or seizure of assets if you do not comply with their demands. Also, they seek to obtain your personal information in the process.
Allow me to state categorically that these people are NOT IRS officers! When the IRS raises an assessment, they NEVER contact you initially by telephone. The typical MO of the IRS is to send you a written notice in the mail. This notice gives you the opportunity Read More
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