Pivot Accounting Services LLC

Pivot Accounting Services LLC Providing personalized accounting and income tax services to small businesses and individuals who ar

An accounting firm providing small business owners with personalized start-up, bookkeeping, payroll, taxation, consulting, accounting, bill pay, and CFO/controller services and individuals with income tax services. Our offices are conveniently located on Tiger Blvd in Clemson, on Old Greenville Hwy in Clemson, and on North Main Street in Anderson to serve Anderson, Oconee and Pickens counties.

11/23/2021

Year-End 2021 Retirement Plan RMD Planning – Did You Know?

Many taxpayers who hold traditional IRAs or other retirement accounts must make annual withdrawals called Required Minimum Distributions, or RMDs. The CARES Act waived most RMDs for tax year 2020, and also created special tax rules for 2020 RMDs that were reclassified as "coronavirus-related distributions." Those special provisions have now expired, so standard IRS rules apply for 2021 RMDs.

In general, taxpayers with traditional IRAs or certain other retirement plans must take a 2021 RMD if they either (a) reached age 70 1/2 in 2019 or before, or (b) reach age 72 in 2021. As a rule, RMDs are taxable income, usually at the person's ordinary income tax rate.

In addition, someone who inherited an IRA from a person who died before 2020 generally must take a 2021 RMD, regardless of their age. If you inherited a retirement plan from someone who died on or after January 1, 2020, you may either need to take annual RMDs or withdraw all funds from the account within 10 years, depending on your circumstances. These rules apply to both traditional and Roth inherited IRAs, although RMDs from Roth IRAs may not be taxed.

For most people, the deadline to take 2021 RMDs is December 31, 2021. However, those who turn 72 this year generally have until April 1, 2022 to take their first RMD. If this exception applies to you, keep in mind that you will need to take your second RMD by December 31, 2022. Therefore, you may end up owing tax on both your first and second RMDs in 2022. Taking your first RMD in 2021 will prevent this issue.

RMD amounts depend on the recipient's age and other factors. A tax professional can help you determine whether you must take a 2021 RMD or other IRA withdrawal, how to calculate the amount, and how to report the withdrawal to the IRS.

10/22/2020

PLEASE READ: Executive Order 2020-63 (PDF) urges counties and municipalities to enact ordinances requiring individuals to wear face coverings in public settings. Make sure to check which counties and municipalities have enacted face mask ordinances when considering guidelines for businesses, gatheri...

10/01/2020

New Tax Scams and Identity Theft Warnings – Did You Know?

The IRS recently posted warnings about new and ongoing tax scams, along with other fraudulent activity related to the COVID-19 (coronavirus) pandemic. The most prevalent and dangerous scams involve identity theft, deceptive advertising, and attempts to cheat taxpayers out of their refunds or economic impact payments (EIPs, also called stimulus payments).

- STEALING REFUNDS OR EIPS THROUGH IDENTITY THEFT: Some criminals steal a taxpayer's Social Security number (SSN), and then file bogus forms with the IRS in order to receive tax refunds or other payments that rightly belong to the taxpayer.

- FAKE CHARITIES: Currently, a number of fraudulent charities with names very similar to legitimate organizations are calling taxpayers, claiming that they are collecting funds to help pandemic victims. Actual charities will provide their Employer Identification Numbers (EINs) upon request, so you can look them up and verify that the callers are who they say they are. Most real charities also offer secure online contribution portals.

- OFFER-IN-COMPROMISE (OIC) MILLS: You may have heard ads for agencies that can settle people's IRS debts for "pennies on the dollar." Some of these companies charge high fees to submit an OIC application to the IRS on a taxpayer's behalf. Only about one in three OIC proposals are accepted by the IRS, but the companies do not refund fees for rejected applications. If you need help applying, work only with a reputable tax professional.

- FAKE PAYMENTS & REFUNDS WITH REPAYMENT DEMANDS: In this very complex scam, identity thieves first obtain a taxpayer's SSN and bank account information, then file a fake IRS return and have the refund deposited into the taxpayer's bank account. A scammer then calls the refund recipient and impersonates an IRS agent, claiming that the refund was issued by mistake and must be returned to the IRS. Often, these scammers demand the "repayment" in the form of gift cards. If you receive a mysterious payment from the IRS, especially if you then receive a phone call demanding repayment, contact your bank and the IRS immediately to report the potential scam.

Above all, remember to never share your SSN or any other personal information with anyone unless you are 100% sure who they are and why they need it. If in doubt, hang up or delete the email or text message, then contact the IRS directly to inquire about the issue.

07/24/2020

Where's My Refund? - Did You Know

You can use the IRS 'Where's my Refund' (https://www.irs.gov/refunds) tool to check the status of your refund. The 'Where's my Refund' tool is updated once daily, usually overnight. Your status is generally available within 24 hours upon the IRS receiving your e-filed return.

If you have filed a paper return, the IRS is currently experiencing processing delays for paper filed returns due to limited staffing, but will process them in the order received.

06/18/2020

Tax Rules for Tuition Refunds and Section 529 Plans – Did You Know?

Many families and students may have received partial or complete refunds of school tuition and fees during the spring of 2020 as a result of the COVID-19 (coronavirus) pandemic. If you paid for these expenses using a Section 529 education savings plan (also called a Qualified Tuition Program, or QTP), your refund could be taxable income, and/or subject to a 10% penalty on interest earned by the account.

However, it is usually possible to avoid these taxes and penalties by properly handling the refunded money and carefully documenting your transactions. One option is to redeposit the funds into the same account from which they were originally taken, or a different QTP account set up for the same child. Generally, such redeposits or rollovers do not count toward your annual contribution limit.

To avoid tax implications, a redeposit or rollover of a QTP education expense refund ordinarily must be completed within 60 days of receiving the refund. However, special tax rules for the spring of 2020 may enable you to complete the reinvestment transaction within 60 days or by July 15, whichever comes later. Be sure to keep documentation of all actions taken.

If redepositing your refund is impractical, you may still be able to avoid paying tax on it by using the funds for other qualifying education expenses. In addition to tuition and fees, qualifying expenses may include computers and education-related software that will be used primarily by a child who is enrolled at an eligible postsecondary school. A tax professional can help you identify your best option to manage your refund, ensure that you complete any necessary transactions by the appropriate deadline, and maintain all records required by IRS rules.

06/12/2020

Latest Newsletter July 15th 2020 Filing & Payment Deadline Approaching June 1, 2020 In response to the COVID-19 (coronavirus) pandemic and the National Emergency declaration, the IRS and U.S. Treasury moved the deadline for filing 2019 federal tax returns and paying any tax due from April 15 to .......

06/12/2020

Key Facts About IRS Economic Impact Payments (EIPs) – Did You Know?

Although the IRS has sent out over 100 million Economic Impact Payments (also called stimulus payments), some Americans are still waiting to receive their payments. Even if you have gotten your EIP, you may have questions about how the money affects your income or taxes. The IRS recently issued answers to some of the most common questions about EIPs, including:

- EIPs are NOT taxable income. You do not need to report your EIP on your 2020 tax return or pay tax on it, and it will not affect your eligibility for government programs with income limits.

- If you are not required to file a federal tax return but receive Form SSA-1099 or RRB-1099 for Social Security or Railroad Retirement benefits, you can use the IRS Get My Payment portal (see below) to check on the status of your EIP.

- If your direct deposit information has changed since you last filed a tax return and received a refund, you can NOT use the Get My Payment portal to provide the IRS with new account information. If your old account number is no longer valid or the account has been closed, the bank will return your EIP to the IRS. The Get My Payment portal will then be updated to show that you will receive a check in the mail, with an estimated delivery date.

- If you are a U.S. citizen living abroad, you qualify to receive an EIP as long as you do not exceed the income limit, are eligible to file IRS Form 1040 or 1040 SR, have a valid Social Security Number (SSN) and cannot be claimed as a dependent by another taxpayer. The basic income limit is $99,000 for individuals or $198,000 for joint filers.

Finally, the IRS reminds all Americans to stay alert for scams related to EIPs. You should ONLY provide your private information to the IRS through the official Get My Payment portal. Anyone who requests your bank or tax information in order to help you get your EIP, or asks you to sign your EIP check over to them, is a scammer. Hang up or delete the message immediately.

IRS Get My Payment Portal: https://www.irs.gov/coronavirus/get-my-payment

06/12/2020

Economic Impact Payments by Prepaid Debit Card – Did You Know?

As part of the U.S. Treasury's ongoing effort to get COVID-19 Economic Impact Payments (EIPs, also called stimulus payments) to all eligible Americans, the IRS has begun sending payments by prepaid debit card in addition to direct deposits and paper checks. Many people who are still waiting for their payments will receive these prepaid cards in the coming weeks.

You can do any of the following with an EIP prepaid debit card with no transaction fees, until you use up the balance on the card:
- Make purchases anywhere Visa is accepted, including online and in-person stores
- Transfer funds from the card to your bank account
- Get cash from in-network ATMs (the ATM will tell you if it is not in-network, which could result in fees being charged)
- Check your card balance 24/7 by phone, online, or by using the mobile app

Prepaid debit cards also offer built-in protection against loss, fraud, theft or other unauthorized use. If you already have a prepaid debit card and the IRS has not yet scheduled your payment, you may be able to request that your EIP be loaded directly onto your existing card. To find out if you are eligible for this option, visit either the Get My Payment IRS portal or the Non-Filers: Enter Payment Info Here page (see links below).

NOTE: EIP prepaid debit cards will NOT come in an IRS or U.S. Treasury envelope. Instead, the card will arrive in a plain envelope from Money Network Cardholder Services, with a letter explaining that the card has been preloaded with your EIP. The front of the card has a Visa logo, while the back displays the name of the issuing bank, Metabank, N.A. The letter also explains how to activate and use the card, or you can learn more at www.eipcard.com.

IRS Get My Payment portal for federal return filers: https://www.irs.gov/coronavirus/get-my-payment
IRS Non-Filers – Enter Payment Info Here Portal: https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here

05/29/2020

2020 Adjustments to Standard Deductions and Tax Brackets – Did You Know?

The IRS has updated the 2020 inflationary adjustments for both standard deductions and the income limits for marginal tax rates. For individual taxpayers, the standard deduction for 2020 will be $12,400, up $200 from the 2019 amount. The deduction for joint filers will increase by $400 to $24,800, while the head-of-household deduction will be $18,650, an increase of $300 from 2019. As a reminder, there are no personal exemptions for tax year 2020, since the Tax Cuts and Jobs Act (TCJA) eliminated them through tax year 2025.

The maximum income for every tax rate bracket is also increasing in 2020. For example, in 2019, the jump from the 24% to the 32% tax rate occurred for individual incomes over $160,725 ($321,450 for married filing jointly). For 2020, the 32% rate will apply to incomes above $163,300 for individuals, or $326,600 for joint filers.

05/29/2020

IRS Adjusts Tax Residency Rules for Travelers Affected by COVID-19 – Did You Know?

As part of its COVID-19 (coronavirus) tax relief package, the IRS is offering waivers of certain tax rules for individuals and businesses affected by coronavirus-related travel disruptions. Under standard IRS policies, anyone who spends time within the U.S. on a certain number of days during the tax year (for example, 31 days for most nonresident aliens) must pay taxes as a U.S. resident. This rule is known as the “substantial presence test.” Similarly, American taxpayers living in foreign countries must spend a specified number of days in their claimed country of residence in order to exclude foreign income from U.S. taxation.

Key IRS tax residency rules adjustments for 2020 include:

- For a person who visited the U.S., up to 60 consecutive days of presence in the U.S. may not be counted when determining if the person meets the “substantial presence test” for taxation as a resident. In most cases, this “COVID-19 Emergency Period” must have begun on or after February 1, 2020.

- For residents of foreign countries, certain days spent away from their home countries may not jeopardize their national residency status for the purpose of excluding foreign income from U.S. taxation.

- When performing calculations to determine if they are “engaged in a U.S. trade or business” for tax purposes, some businesses may exclude up to 60 consecutive days of conducting business activities within the U.S.

You may only claim these exemptions for days on which your personal or business activities took place in an unplanned location, as a result of travel disruptions caused by the COVID-19 pandemic. A tax advisor can help you determine whether your travel or business activities qualify for an exemption, and how the exemption rules affect your U.S. tax status.

05/29/2020

2020 IRA Required Minimum Distributions Waived – Did You Know?

The CARES Act that was signed into law on March 27, 2020 includes an important provision for taxpayers with various retirement accounts, including 401(k), 403(b), 457(b), traditional Individual Retirement Accounts (IRAs), and designated Roth accounts. For many taxpayers, the law waives their obligation to withdraw a certain amount from such accounts (called a required minimum distribution, or RMD) during tax year 2020.

Under standard IRS rules for the above retirement account types, you would need to accept a 2020 RMD if you turn 72 years of age in 2020, turned 70 1/2 in 2019 or before, or are any age and inherited the account as a beneficiary. RMDs are usually taxed as ordinary income. However, the CARES act allows you to skip your 2020 RMD without penalty. Note that Roth IRAs are not affected by this waiver, since they do not have RMDs under normal circumstances.

05/05/2020

Small businesses that manage to get their Paycheck Protection Program loans forgiven may find themselves losing valuable tax breaks, according to new guidance from the Internal Revenue Service.

Address

122 Strode Cir
Clemson, SC
29631

Opening Hours

Monday 9am - 5pm
Tuesday 9am - 5pm
Wednesday 9am - 5pm
Thursday 9am - 5pm
Friday 9am - 1pm

Telephone

(864) 654-8999

Website

Alerts

Be the first to know and let us send you an email when Pivot Accounting Services LLC posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Business

Send a message to Pivot Accounting Services LLC:

Shortcuts

Share

Category