Beverly Smith Moulden, CPA LLC

04/15/2023

Please note IRS warning regarding ERC promotions that may not be all they purport to be!

IR-2023-49, March 20, 2023 — In a further warning to people and businesses, the Internal Revenue Service added widely circulating promoter claims involving Employee Retention Credits as a new entry in the annual Dirty Dozen list of tax scams.

02/02/2022

Tax season is officially open! The IRS began accepting 2021 returns on January 24th. The filing deadline to submit 2021 Federal tax returns is Monday, April 18, 2022. The Maryland filing deadline has been extended to July 15th to file and pay 2021 state income taxes.

I encourage everyone to file electronically and to receive refunds by direct deposit to avoid delays in processing. Note the new informational letters being sent out by the IRS to facilitate accurate information for filing listed below.

From the IRS:
New for this year, the IRS sent Letter 6419, Advance Child Tax Credit Reconciliation, in January 2022 to help individuals reconcile and receive the full amount of their 2021 Child Tax Credit. This letter includes the total amount of the 2021 advance Child Tax Credit payments issued and the number of qualifying children used to calculate their advance payments. People need this important information to accurately claim the other half of the 2021 Child Tax Credit when filing their 2021 tax return and prevent delays in processing. The IRS reminds people to check this information carefully.

Most eligible people were already issued their third Economic Impact Payment and won't include any information about it when they file. However, people who didn't qualify for a third payment or did not receive the full amount may be eligible for the 2021 Recovery Rebate Credit based on their 2021 tax situation. They will need the total amount of their third Economic Impact Payment to file an accurate tax return to avoid a processing delay. Taxpayers can sign into their IRS Online Account to view the total amount of the third-round Economic Impact Payment or wait to receive IRS Letter 6475.

We are taking appointments for 2021 tax preparation at this time. You may call the office at 301-631-6864 to make your appointment or with any questions you may have.

Thank you!

04/07/2021

FROM the Internal Revenue Service - Additional tax deadlines extended to May 17.

Following the extension of the filing and payment deadline for individuals to May 17, 2021, the IRS announced other tax deadline extensions to the same date.

Here’s what’s affected:

Contributions to IRAs and health savings accounts

People now automatically have until May 17, 2021, to make 2020 contributions to their:

Individual retirement arrangements
Health savings accounts
Archer medical savings accounts
Coverdell education savings accounts
The deadline for reporting and paying the 10% additional tax on amounts included in gross income from 2020 distributions from IRAs or workplace-based retirement plans is now May 17, 2021. Lastly, the due date for Form 5498 series returns related to these accounts is now June 30, 2021,

2017 unclaimed refunds The law provides a three-year window to claim a refund. Normally, April 15, 2021, is the deadline to claim a refund from tax year 2017 but, the IRS has extended it to May 17, 2021. To get the unclaimed refund, a taxpayer must properly address and mail the tax return, postmarked by May 17, 2021. If a taxpayer doesn’t file a return within three years, the money becomes property of the U.S. Treasury.

Foreign trusts and estates Foreign trusts and estates with federal income tax filing or payment obligations, who file Form 1040-NR, now have until May 17, 2021.

2021 Annual Filing Season Program application deadline Tax return preparers who’d like to participate in the Annual Filing Season Program for calendar year 2021 now have until May 17, 2021, to file their application with the IRS.

01/15/2021

The Internal Revenue Service (IRS) has announced that tax season will open on FRIDAY FEBRUARY 12, 2021!
The IRS will begin accepting paper and electronic tax returns that day. This is about two weeks later than had been expected. The delay allows the IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes - especially those involving a second round of stimulus checks (Economic Impact Payments, or EIPs).

01/09/2021

New York Times article regarding the opening up of PPP loan applications starting next week.

A small group of lenders that focus on underserved borrowers will get priority when the Paycheck Protection Program resumes.

03/30/2020

Update from Maryland State Department of Assessments and Taxation, March 30, 2020
Annual Report and Personal Property Tax Return Deadline Extended to July 15

The Maryland Department of Assessments and Taxation (SDAT) today announced that the 2020 deadline to submit Annual Reports and Personal Property Tax Returns will be automatically extended to July 15 as part of the Hogan administration’s response to COVID-19. Expiration dates for trade names and name reservations, as well as entity forfeiture dates, will also be extended to 30 days after the state of emergency is rescinded in accordance with Governor Hogan’s executive orders.

03/30/2020

From the Baltimore Sun
March 30, 2020
Hogan issues stay-at-home order for Marylanders to stop spread of coronavirus. Gov. Larry Hogan on Monday issued a stay-at-home order for Marylanders to stop the spread of the coronavirus.

That means no one should leave their home for any reason other than essential work, to get food or other fundamental reason. He said no one should travel outside of the state or ride public transportation unless it is “absolutely necessary.” The order takes effect at 8 p.m.

“We are no longer asking,” Hogan said.

Hogan said the state will enforce the directive. Any person who knowingly and willfully violates the order is guilty of a misdemeanor.

The state will be sending a public safety announcement to cell phones today to spread the word about the stay-at-home directive.

“This is a rapidly escalating emergency situation,” the governor said.

Hogan said he is especially concerned about an outbreak in the region because it is home to federal workers leading the emergency response. He said more than 404,000 federal workers live in Maryland, Washington and Virginia. Among the federal agencies based in Maryland are the National Institutes of Health and Federal Drug Administration. He said, currently there are 2,709 confirmed COVID-19 cases in the DC-Maryland-Virginia area.

Hogan said he is grateful to the president and the Congress for coming together in a bipartisan way to deliver the stimulus package, including money for unemployment benefits, food stamps and child care.

Three drive-thru testing sites have opened at Motor Vehicle Administration emissions stations in Glen Burnie, Waldorf and Belair, Hogan said.

Additionally, a testing site has opened at FedEx Field in Lanover. Testing at the sites is “strictly limited” to those with orders and an appointment, Hogan said.

The state has ordered 500 new beds for on-site surge expansion at Maryland hospitals with an option for another 500 to be deployed based on any virus hotspots. Hogan said the state has also ordered more tests for hospitals to expand on site.

The state has ordered 500 new beds for on-site surge expansion at Maryland hospitals with an option for another 500 to be deployed based on any virus hotspots. Hogan said the state has also ordered more tests for hospitals to expand on site.

A week ago, thousands of applications have been received for resources in the state’s $175 million relief package with businesses and unemployed workers. Nearly $9 million has been provided to more than 400 small business, helping more than 8,000 Marylanders keep their job.

03/23/2020

REMINDER: Federal and Maryland State income tax return filing and payment deadlines have been extended to July 15, 2020. This extension also pertains to 1st quarter estimated tax payments ordinarily due by April 15. All payments made by July 15 will not incur penalties nor interest.

Please feel free to call the office or email with any questions you may have.

Thank you, Beverly

03/23/2020

Maryland Governor Hogan announced closure of non-essential businesses due to the COVID-19 pandemic.
Businesses included in the essential business category include: Banks, insurance and accountants.

Providers of financial services can remain operational per the executive order, which includes banks and credit unions, lenders, payroll and payment processors, armored car companies, insurance firms, securities and investment companies and accountants and bookkeepers.

Per the notice above our office will remain open for business. If you have an appointment and would prefer to mail or provide information electronically please call our office for more information.

Be safe, be well.
Beverly

03/22/2020

MARYLAND COMPTROLLER ANNOUNCEMENT
To assist businesses affected by the economic impact of COVID-19, Comptroller Peter Franchot announced he will extend business-related tax filing deadlines. The June 1st extension applies to certain business returns with due dates during the months of March, April and May 2020 for businesses filing sales and use tax, withholding tax, and admissions & amusement tax, as well as alcohol, to***co and motor fuel excise taxes, tire recycling fee and bay restoration fee returns.

Business taxpayers who file and pay by the extended due date will receive a waiver of interest and penalties.

As the IRS has extended its April 15th filing deadline for corporate and individual income tax returns, Maryland will conform to the decision of the IRS. All returns and payments will now be due by July 15th, 2020 for calendar year 2019 tax returns and first quarter 2020 estimated tax payments.

03/20/2020

UPDATE:As of March 20, 2020 the extended or postponed tax deadline for 2019 IRS Tax Returns is now July 15, 2020. If you owe Federal Taxes as a result of your 2019 Tax Return, you have until July 15, 2020 to pay your Taxes penalty free.

The MARYLAND filing deadline for individual and corporate income tax returns has been extended to July 15, 2020.