Thomas Watson & Company, LLC - Certified Public Accountants

03/07/2023

The IRS is warning employers to be wary of third parties who are advising them to claim the Employee Retention Credit when they may not qualify. Their concern is that some third parties are taking improper positions related to taxpayer eligibility and computation of the credit, often charging large upfront or contingency fees.
"These companies are very aggressive at promoting themselves," said Mankowski. "In some cases they will lower their fee if the businessman pays them upfront. For example, they tell them that they qualify for a $100,000 credit. They will lower their normal fee from 15% to 10% if they are paid upfront. They will amend the Form 941, but the taxpayer — and their CPA – has to amend the corporate and/or the personal return to reflect the Form 941."

A look at how filing season is going, five weeks in.

11/14/2022

11/14/2022

Rebates are being issued with a maximum cap of $800
The South Carolina Department of Revenue is currently issuing the first round of rebates to eligible taxpayers who filed a 2021 SC Individual Income Tax return (SC1040)​ by October 17​. Rebates are being issued by direct deposit or mailed paper checks.

https://mydorway.dor.sc.gov/_/

To use the rebate tracker, you will need:

Y​our SSN or ITIN
Line 10 from your 2021 SC1040
​​
What you need to know about the $800 rebate cap and if you have not yet filed your 2021 Income Tax Return:

Your rebate amount is calculated according to your tax liability, up to $800 maximum​. See how to calculate your rebate amount below for more details.

If you are filing your 2021 SC Individual Income Tax return​ by February 15, 2023, you will receive your rebate in March 2023.

01/13/2022

If anyone wonders why the Internal Revenue Service seems to be moving so slowly, Chuck Rettig, the IRS Commissioner, made the following comments on January 11, 2022:

1. IRS has 14,000 employees who answer their call centers. Between March 2020 – August 2021, IRS received 240,000,000 phone calls related to IRS matters.
2. IRS call centers are automatically routed phone calls during federally declared disaster areas. These phone calls take precedent over calls related to IRS matters as FEMA does not have the personnel to take all the phone calls when a disaster occurs.
3. IRS is still way behind is handling tax returns and other hard copy correspondence…months behind
4. IRS annually receives 96% of all revenue received by the US government.

12/04/2015

New post has been published on TWD - CPA Columbia SC