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What to Do If You’re Faced with an IRS Audit (8 Tips)

Posted on July 31st, 2020

“I hoped this day wouldn’t come…but I need help with an IRS audit.”

Picture this: you own a small business. You just sent out invoices a week ago, and the checks are rolling in. As you walk to the mailbox, you have a smile on your face. You pull out the mail and see a half dozen checks…and an envelope from the IRS?

Worried, you open the envelope. Panic sets in. Yes, you’ve been selected for an audit. You don’t know who can help with an IRS audit. What should you do?

Keep calm and call Robert P. Russo CPA, PC. Read More…

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pay debt the smart way

Paying off Debt the Smart Way

Posted on July 6th, 2020

With a potential economic downturn in the wings due to COVID-19, being debt-free is a worthwhile goal. Unfortunately, between mortgages, car loans, credit cards, and student loans, this is unrealistic for most people – especially those of pre-retirement age. Instead, it’s better to start by focusing on managing debt. When you handle debt wisely, you won’t have to shell out every cent of your hard-earned money to your lender or feel like you’re always on the verge of bankruptcy.

These tips will help you get started paying off debt the smart way and help you save extra money to pay down those debts even faster: Read More…

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summer jobs and taxes

Tax Tips for Students With a Summer Job Income

Posted on July 6th, 2020

Whether the goal is to gain experience or earn some spending money or help pay for college, summer is the prime job season for teens and college students. This year, however, with the coronavirus pandemic, the job situation has not been as easy – not to mention that it is starting later than usual. Nonetheless, if you are a high school or college student (or the parent of one) who has been lucky enough to find summer employment, here’s what you should know about income earned during the summer months: Read More…

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small business financing

Small Business Financing: Securing a Small Business Loan

Posted on July 5th, 2020

At some point, most small business owners will visit a bank or other lending institution to borrow money. Understanding what your bank wants, and how to properly approach them, can mean the difference between getting a loan for expansion or scrambling to find cash from other sources.

Unfortunately, many business owners fall victim to several common, but potentially destructive myths regarding financing, such as: Read More…

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employee retention credit

Employee Retention Credit Deadline July 31

Posted on July 5th, 2020

As a reminder, employers whose business has been financially impacted by COVID-19 can take advantage of the Employee Retention Credit, a refundable tax credit designed to encourage businesses to keep employees on their payroll. The credit is worth 50 percent of up to $10,000 in wages paid by an employer. Employers that are eligible for the credit for the first and second quarters of 2020, can apply for the credit when they file their second-quarter filing of Form 941, Employer’s Quarterly Federal Tax Return which is due July 31. Read More…

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july 15 tax deadline

July 15 is the Deadline for Reporting Foreign Income

Posted on July 3rd, 2020

If you live or work outside the United States, you generally must file and pay your tax in the same way as people living in the U.S. This includes people with dual citizenship. Due to the coronavirus pandemic, people who live and work abroad have until Wednesday, July 15, 2020, to file their 2019 federal income tax return and pay any tax due. The deadline is normally June 15. Read More…

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rollover relief for rdm on retirement accounts

Retirement Accounts: Rollover Relief for RMDs

Posted on July 3rd, 2020

Generally, taxpayers must begin taking a required minimum distribution (RMD) from a defined-contribution retirement plan, including a 401(k) or 403(b) plan, or an IRA when they reach age 72 (70 1/2 if they reached 70 ½ before January 1, 2020). The RMD for any year is the account balance as of the end of the immediately preceding calendar year divided by a distribution period from the IRS’s “Uniform Lifetime Table” and is the minimum amount you must withdraw from your account each year. Read More…

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owing money to the irs

Here’s How to Pay If You Owe Money to the IRS

Posted on July 2nd, 2020

The federal tax deadline is quickly approaching. If you owe money to the IRS – including estimated and other business taxes – here are six options for quick and easy electronic payments: Read More…

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tax tips for farming income and expenses

10 Things About Reporting Farm Income and Expenses

Posted on July 2nd, 2020

Farms include plantations, ranches, ranges and orchards and farmers may raise livestock, poultry or fish, or grow fruits or vegetables. If you’re in the farming business or are thinking about it, here are ten things you should know about farm income and expenses. Read More…

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returning economic impact payment

Q & A: Returning an Economic Impact Payment

Posted on July 1st, 2020

According to the Treasury Department, more than 159 million individuals have already received their Economic Impact Payments; however, a recent audit found that the IRS sent $1.4 billion in stimulus checks to deceased individuals. As such, many people may have received a payment for a deceased family member or another taxpayer who is not eligible to receive a payment and may have questions about what to do. Here are some answers: Read More…

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tax tips forclosing a business

Closing Your Business: A Tax Checklist

Posted on July 1st, 2020

More than 100,000 small businesses have closed due to COVID-19. If yours is one of them, you should be aware that there is more to closing a business than laying off employees, selling office furniture, and closing the doors – you must also take certain actions as required by the IRS to fulfill your tax obligations. For example, if you have employees, you must file final employment tax returns as well as make final federal tax deposits of these taxes. Read More…

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Tax Due Dates 2021

Tax Due Dates for July 2020 — 2019 Tax Return Filing Deadline

Posted on July 1st, 2020

July 10

Employees Who Work for Tips – If you received $20 or more in tips during June, report them to your employer. You can use Form 4070.

July 15

Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in June.

Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in June.

Individuals – File an income tax return for 2019 (Form 1040 or Form 1040-SR) and pay any tax due. If you want an automatic 3-month extension of time to file the return, file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return and pay what you estimate you owe in tax to avoid penalties and interest. Then file Form 1040 or Form 1040-SR by October 15.

Household Employers – If you paid cash wages of $2,100 or more in 2019 to a household employee, file Schedule H (Form 1040 or Form 1040-SR) with your income tax return and report any employment taxes. Report any federal unemployment (FUTA) tax on Schedule H (Form 1040 or Form 1040-SR) if you paid total cash wages of $1,000 or more in any calendar quarter of 2018 or 2019 to household employees.

Individuals – If you are a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, file Form 1040 or Form 1040-SR and pay any tax, interest, and penalties due. If you want additional time to file your return, file Form 4868 to obtain 3 additional months to file. Then file Form 1040 or Form 1040-SR by October 15.

However, if you are a participant in a combat zone you may be able to further extend the filing deadline.

Individuals – If you are not paying your 2020 income tax through withholding (or will not pay in enough tax during the year that way), pay the first installment of your 2020 estimated tax. Use Form 1040-ES.

Individuals – Make a payment of your 2020 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the second installment date for estimated tax in 2020.

Corporations – File a 2019 calendar year income tax return (Form 1120) and pay any tax due. If you want an automatic 3-month extension of time to file the return, file Form 7004 and deposit what you estimate you owe in taxes.

Corporations – Deposit the first installment of estimated income tax for 2020. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.

Corporations – Deposit the second installment of estimated income tax for 2020. A worksheet, Form 1120-W, is available to help you estimate your tax for the year. Read More…

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