Posted on September 3rd, 2020
The IRS mails millions of notices and letters to taxpayers every year for a variety of reasons. If you receive correspondence from the IRS don’t panic. You can usually deal with a notice by simply responding to it; most IRS notices are about federal tax returns or tax accounts. Each notice has specific instructions, so read your notice carefully because it will tell you what you need to do. In most cases, your notice will be about changes to your account, taxes you owe or a payment request; however, your notice may also ask you for more information about a specific issue. Read More…
Tags: Fraud Prevention, IRS, Tax Tips
Posted on September 2nd, 2020
The use of digital signatures on certain forms that cannot be filed electronically will now be temporarily allowed. Expanding the use of digital signatures will help to protect the health of taxpayers and tax professionals during the coronavirus pandemic by reducing in-person contact between taxpayers and tax professionals. Read More…
Tags: Tax Return, Tax Tips
Posted on August 5th, 2020
Starting in tax year 2020, payers must complete Form 1099-NEC, Nonemployee Compensation to report any payment of $600 or more to a payee. There is a new form that only applies to business taxpayers who pay or receive nonemployee compensation. Read More…
Posted on August 4th, 2020
Section 199A, enacted as part of the Tax Cuts and Jobs Act (TCJA), allows individual taxpayers and certain trusts and estates to deduct up to 20 percent of certain income (section 199A deduction). It is available to eligible taxpayers with qualified business income (QBI) from qualified trades or businesses operated as sole proprietorships or through partnerships, S corporations, trusts, or estates, as well as for qualified REIT dividends and income from publicly traded partnerships. The deduction is not available for C corporations. Read More…
Tags: Deductions, Tax Tips
Posted on August 3rd, 2020
Temporary administrative relief has been issued that helps certain retirement plan participants or beneficiaries who need to make participant elections by allowing flexibility for remote signatures. Generally, signatures of the individual making the election must be witnessed by a notary public or in the presence of a plan representative. This includes a spousal consent as well. Read More…
Tags: Retirement, Retirement Plan, Tax Tips
Posted on August 2nd, 2020
In most cases, gains from sales are taxable. But did you know that if you sell your home, you may not have to pay taxes? Here are ten facts to keep in mind if you sell your home this year. Read More…
Tags: Real Estate, Tax Tips
Posted on August 1st, 2020
Federal law requires most employers to withhold federal taxes from their employees’ wages. Whether you’re a small business owner who’s just starting or one who has been in business a while and is ready to hire an employee or two, here are five things you should know about withholding, reporting, and paying employment taxes. Read More…
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…
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…
Tags: Other Income, Tax Tips
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…
Tags: Coronavirus, COVID-19, Tax Credits, Tax Tips
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…
Tags: Retirement, Tax Tips
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…
Tags: Coronavirus, COVID-19, Tax Tips
Posted on June 3rd, 2020
Individuals with significant assets who want to transfer wealth to heirs tax-free, as well as minimize estate taxes, should take advantage of proven tax strategies such as gifting and direct payments to educational institutions; however low-interest rates and a volatile stock market are creating additional opportunities. Let’s take a look at some of the strategies available: Read More…
Tags: Estate Tax, Tax Planning, Tax Tips
Posted on May 6th, 2020
If you are in business for yourself—say, as a corporation or self-employed—payroll taxes and self-employment taxes are likely two of your biggest tax burdens.
Here’s some possible good news: Congress decided to give you significant relief from these taxes due to the COVID-19 pandemic. We’ll tell you what relief options are available and whether or not you qualify. Read More…
Tags: Coronavirus, COVID-19, Deductions, Self-Employment, Tax Credits, Tax Tips
Posted on April 22nd, 2020
COVID Tax Tip 2020-44, April 22, 2020 The IRS is issuing Economic Impact Payments. These payments are being issued automatically for most individuals. However, some people who don’t usually file a tax return will need to submit basic information to the IRS to receive their payment.
Read More…
Tags: Coronavirus, COVID-19, Tax Tips
