Dan Johnson, CPA

08/22/2023

New school year reminder to educators; maximum educator expense deduction is $300 in 2023

IR-2023-150, Aug. 17, 2023 — As the new school year begins, the Internal Revenue Service reminds teachers and other educators that they’ll be able to deduct up to $300 of out-of-pocket classroom expenses for 2023 when they file their federal income tax return next year.

07/31/2023

The ERC is a refundable COVID-era tax credit designed for employers that kept paying employees while shut down because of a COVID-19 related government order or that had a requisite decline in gross receipts during the eligibility periods. The credit can be claimed only by eligible businesses and tax-exempt organizations that had employees during specific time periods.

Anyone considering claiming the ERC should carefully review the specific eligibility requirements at IRS.gov/erc. Eligible employers who need help claiming the credit should work with a trusted tax professional.

Tax Tip 2023-93, July 24, 2023 — Businesses and tax-exempt organizations should watch out for telltale signs of misleading claims involving the Employee Retention Credit. Scammers and unscrupulous promoters continue to run aggressive broadcast advertising, direct mail solicitations and online prom...

06/16/2023

Major Cyber Attack at OMV Vendor, Louisianans Should Act Urgently to Protect Their Identities

June 15, 2023
BATON ROUGE, La. – Louisiana’s Office of Motor Vehicles (OMV) is one of a still undetermined number of government entities, major businesses and organizations to be affected by the unprecedented MOVEit data breach.

MOVEit is an industry-leading third party data transfer service used to send large files. It is widely used across the country and around the world, and reports are rapidly emerging of newly discovered exposures of sensitive data in this major international cyber attack.

There is no indication at this time that cyber attackers who breached MOVEit have sold, used, shared or released the OMV data obtained from the MOVEit attack. The cyber attackers have not contacted state government. But all Louisianans should take immediate steps to safeguard their identity.

OMV believes that all Louisianans with a state-issued driver’s license, ID, or car registration have likely had the following data exposed to the cyber attackers:

Name
Address
Social Security Number
Birthdate
Height
Eye Color
Driver’s License Number
Vehicle Registration Information
Handicap Placard Information
Gov. John Bel Edwards met with the Unified Command Group at 11 a.m. Thursday to be briefed on the incident, where he instructed the Governor’s Office of Homeland Security and Emergency Preparedness (GOHSEP), Office of Motor Vehicles (OMV), Louisiana State Police (LSP), and the Office of Technology Services (OTS) to act to inform Louisianans of the breach and their best next steps as soon as possible.

We recommend all Louisianans take the following steps immediately:

1. Prevent Unauthorized New Account Openings or Loans and Monitor Your Credit

Individuals can freeze and unfreeze their credit for free, which stops others from opening new accounts and borrowing money in your name. Freezing your credit does not prevent the use of any existing credit cards or bank accounts. Freezing your credit may be done quickly online or by contacting the three major credit bureaus by phone:

Experian
1-888-397-3742
www.experian.com/freeze Equifax
1-800-685-1111
www.equifax.com/personal/credit-report-services/credit-freeze/ TransUnion
(888) 909-8872
www.transunion.com/credit-freeze
Please also request and review your credit report from these agencies to look for suspicious activity.

2. Change All Passwords

As an additional precaution, consider changing all passwords for online accounts (examples: banking, social media, and healthcare portals) in the event your personal data was used to access these accounts. Utilize multi-factor authentication when able. Learn more about password protection at www.CISA.gov.

3. Protect Your Tax Refund and Returns with the Internal Revenue Service

To prevent someone else from filing returns or receiving your federal tax refund, request an “Identity Protection Pin” from the Internal Revenue Service by signing up at: https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin or calling the IRS at 1-800-829-1040.

4. Check your Social Security Benefits

All individuals who are eligible, applied for, and/or are receiving social security benefits (including disability), please consider registering for a ssa.gov account at https://www.ssa.gov/myaccount/ to stop others from stealing your benefits. If you suspect Social Security fraud, call the Office of Inspector General hotline at 1-800-269-0271, Social Security Administration at 1-800-772-1213 or file a complaint online at oig.ssa.gov.

5. Report Suspected Identity Theft

If you suspect any abnormal activity involving your data, including financial information, contact the Federal Trade Commission at 1-877-FTC-HELP or visit www.ReportFraud.FTC.gov immediately.

The State of Louisiana will be issuing additional information in the coming days. Additional tips on protecting your data and identity can be found at nextsteps.la.gov and www.IdentityTheft.gov.

Protect your community by reporting fraud, scams, and bad business practices

09/15/2022

September 14, 2022
Individual Income Tax
Louisiana Tax Implications of Federal Student Loan Forgiveness
Revenue Information Bulletin 22–017
( https://www.revenue.louisiana.gov/LawsAndPolicies/Policies )

On August 24, 2022, President Biden announced a plan that, in part, provides up to $20,000 in student loan forgiveness to Pell Grant recipients with loans held by the U.S. Department of Education and up to $10,000 in student loan forgiveness to non-Pell Grant recipients.
Taxpayers who have either a federal filing status of single and earn less than $125,000 or a federal filing status of married filing jointly and earn less than $250,000 are eligible for the federal student loan forgiveness.

The purpose of this bulletin is to explain the effect any federal student loan forgiveness may have on individuals subject to Louisiana individual income tax.

Student Loan Tax Relief Act
On March 11, 2021, the American Rescue Plan Act (“ARP”) was enacted as a part of the broader federal response to the COVID-19 pandemic. Included within the ARP is Section 9675, entitled the Student Loan Tax Relief Act (“SLTRA”). The Act excludes any amount of qualifying student loan forgiveness from federal gross income when such amounts are discharged after December 31, 2021, but before January 1, 2026.1 Specifically, the SLTRA amends Internal Revenue Code Section 108, which governs discharge of indebtedness, to create a limited-time exception for qualifying student loans, which includes, among others, the following types of student loans, as provided in Internal Revenue Code Section
108(f)(5)(A):
(A) any loan provided expressly for postsecondary educational
expenses, regardless of whether provided through the educational
institution or directly to the borrower, if such loan was made, insured, or guaranteed by—

Louisiana Individual Income Tax
For individual taxpayers in Louisiana, the starting point for determining Louisiana’s tax table income is the taxpayer’s “adjusted gross income” (“AGI”), which is defined as the adjusted gross income of the individual for the taxable year that is reportable on the individual’s federal income tax return. Because Louisiana largely conforms to federal tax law for purposes of individual income tax, amounts that are exempt from federal tax, and therefore not includable in the taxpayer’s adjusted gross income, will automatically be exempt from Louisiana tax without further action.

As such, for taxpayers qualifying for federal student loan forgiveness pursuant to President Biden’s plan, any amounts so forgiven will likely be automatically excluded from a taxpayer’s AGI and exempt from Louisiana tax.

Address questions concerning this Revenue Information Bulletin to
[email protected]

07/08/2022

https://kcovington.org/community-prayer-breakfast/
Kiwanis Club of Greater Covington

04/29/2022

We are a local CPA firm who help small to medium sized companies with their accounting, payroll, payroll tax, sales tax, and income tax for both the business and their owners. The focus of the firm is to serve in the role as the small business Controller or Chief Accountant where they could not afford to hire one full time as their large business counterparts can. The purpose is to provide an accounting department at their disposal more affordably and thus become more successful through the reliable financial reports dictating the financial results of the business operation that could not have achieved at the business’ limited skillset in this area.

We are looking for an experienced Certified Public Accountant (CPA) to join our CPA Firm. You’ll be responsible for preparing, reviewing and analyzing financial reports for our business clients. Our ideal candidate has in-depth knowledge of bookkeeping, analytical review, business and personal income tax preparation and budgeting procedures. You should be able to monitor daily transactions and recommend ways we can improve and streamline our processes. Previous CPA Firm work experience, along with a CPA qualification is required for this role. Ultimately, you will play a vital role in our Firm, ensuring future stability and continuity for our clients.

Skills

Proven work experience as a Certified Public Accountant or Senior Accountant
Thorough knowledge of accounting and financial procedures
Understanding of Generally Accepted Accounting Principles (GAAP)
Experience with accounting software, like Quickbooks and Tax Software
Advanced MS Excel knowledge (familiarity with formulas, VLOOKUPs and pivot tables)
Excellent analytical skills with an attention to detail
Integrity, with an ability to handle confidential information
Use of a 10 key calculator
If you have these qualities and skills we would be very pleased to meet you.

04/29/2022

We are growing!

Dan Johnson, CPA, LLC.

09/01/2021

IR-2021-175, August 31, 2021 — Victims of Hurricane Ida that began on August 26 now have until January 3, 2022, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

05/31/2021

03/16/2021

https://www.irs.gov/newsroom/irs-announces-tax-relief-for-louisiana-severe-winter-storm-victims

LA-2021-02, March 10, 2021 — Victims of Winter Storms that occurred February 11-19, 2021 now have until June 15, 2021, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

01/26/2021

2020 Personal Income Tax Filing Begins Feb. 12, 2021

IR-2021-16, January 15, 2021 — The Internal Revenue Service announced that the nation's tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns.

11/19/2020

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