Altoona Outsource Bookkeeping Services

09/01/2025

05/28/2025

Every May, the IRS shifts from collections to enforcement – and millions of notices are sent to taxpayers.

Based on preliminary analysis, here are the four notices you can expect to see if you are in arrears to the IRS:

CP-14. This is a preliminary notice that you owe a balance.
CP-77 and LT-11. When someone receives a CP77 or LT11 notice, it’s a sign that the IRS is considering a levy on their bank accounts, wages, retirement funds, or potentially even physical assets like their home or car.
CP-49. This is a notice that a refund has been applied to an existing balance.

Don't let your back taxes get into situations where a levy, wage garnishment, or you having compounding penalties and interest.

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12/12/2024

The Blair County Tax Collection Bureau announced a change to Altoona city resident taxes. Effective Jan. 1, 2025, the resident withholding rate will increase from 1.6% to 1.7%. The non-resident tax will remain unchanged at 1.40%.
All employers are reminded they must adhere to the referenced increases.

Example- if you live in the city and work in the city- you will be paying 1.7% in local tax on Jan 1, 2025.

Example- If you live out side the city of Altoona but work in the city of Altoona, you'll pay 1.4% or the greater of your local tax rate.
Example- you live in Tyrone but work in the city of Altoona. Tyrone's rate is 1.9% which is what you will be paying since it is greater than 1.4%.
If you live outside the city of Altoona like Logan Township and you're employer is outside the city of Altoona say Walmart, you'll pay whatever your local rate is. Example- if you live in Logan township and work in Logan township, you pay 1%.
But if you live in Portage Boro and work in Logan Township, you still pay the 1.5% for Portage Boro local tax because it's greater than the 1.4%.
Another example- you live in Logan township but work in the city of Altoona- you pay 1.4% still. No change.

It's confusing sometimes, so if you have any questions, please call us 940-1944. We're open 9-5 Mon-Fri.

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12/11/2024

BOI Injunction: What It Means for You and Your Clients
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Last week a federal district court issued a preliminary injunction that temporarily halts enforcement of the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA). While this injunction is in effect, businesses are not required to file BOI reports with the Financial Crimes Enforcement Network (FinCEN). While Businesses will not face penalties for failing to file BOI reports during the period of the injunction, they could if the obligations may be reinstated. Find out more about recent developments and our recommendations

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09/24/2024

We have received several reports of a fraudulent payment request scam where a bad actor is attempting to solicit money from taxpayers using the backdrop of the Beneficial Ownership Reporting (BOI) requirement.

The taxpayer came to us as a trusted advisor to determine if the BOI filing fee being billed was accurate.

Below is the fraudulent bill the taxpayer received from the bad actor in an attempt to solicit money from the taxpayer.

This is first report that of this Scam hitting offices. Upon researched this letter appears to be part of the known scam FinCEN has warned about.
We also found other reports on the web about this Scam as well.

07/02/2024

USPS raising stamp prices: Last chance to lock in Forever stamp rate ahead of increase per USA Today

You'll pay more for stamps this month when the U.S. Postal Service increases prices across its services.

The price of first-class Forever stamps will increase from 68 cents to 73 cents on July 14, an increase of more than 7%. Prices for all services will rise more than 7.5%.

The price hikes are part of the USPS 10-year "Delivering for America" plan intended to financially stabilize the Postal Service. Forever stamps cost 55 cents when the plan was introduced in 2021.

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06/26/2024

SAVE PLAN UPDATE FOR STUDENT FORGIVENESS

Two federal judges have blocked significant parts of President Joe Biden’s new student loan repayment plan.

The preliminary injunctions stop the U.S. Department of Education from implementing provisions of The Saving on a Valuable Education, or SAVE, plan, including the lower payments set to begin in July.

The Biden administration also won’t be able to forgive any more debt under the plan until the cases are decided.

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06/21/2024

STUDENT LOAN PAYMENTS CUT IN JULY UNDER THE SAVE PLAN

Monthly payments, under the SAVE plan, are based on a borrower's income and family size-regardless of amount of debt.
Starting July payments for undergrad will be reduced from 10% to 5% of discretionary income.

Borrowers with both undergrad and graduate school will pay a weighted average of between 5% and 10% of income based on original principal balances of their loans.

The payment recalc happens automatically - no action required for those enrolled in SAVE. There could be a delay on the calcs as the Dept of Education says the recalcs are not finished. But those affected would go into forebearance and no payment or interest will accrue.

Stay tuned!

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06/13/2024

reminds self-employed, retirees and others making estimated tax payments of the second quarter deadline on June 17.

Also--
IRS Glitch Affecting Tax Payment Notices
We have received reports that some are receiving IRS notices indicating late tax payments. This appears to be due to an IRS system glitch that has caused erroneous CP14 (Balance Due) notices to be sent to taxpayers who have already made their payments on time.

What’s Happening:
We are receiving reports that clients who had 2023 tax return payments made by the deadline may still receive a notice stating they owe a balance.
It is being reported that the IRS may have an issue where their system is not properly reflecting timely payments, particularly those made by check or electronically.

What to Do:
Advise: Verify payment by checking bank statements to confirm the payment has been processed.
No Immediate Action Needed: Those who have paid in full and on time should not respond to the notice at this time. The IRS is aware of the issue and is working to correct it.
Documentation: Retain proof of payment, such as cleared checks or bank statements, in case further action is needed.

Utilize Taxpayer Assistance Centers: If you are unable to resolve the issue through standard channels, you can seek assistance from the Taxpayer Advocate Service.
.keeping you informed

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05/07/2024

The vast majority of those eligible for Economic Impact Payments related to Coronavirus tax relief have already received them or claimed them through the Recovery Rebate Credit. The deadlines to file a return and claim the 2020 and 2021 credits are May 17, 2024, and April 15, 2025, respectively

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