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Parson CPA

Loni Parson provides Quickbooks training, bookkeeping, tax & business consulting and entity selection, management advisory, cash flow & budget analysis

Loni Parson is a veteran CPA serving the Greater Louisville, Kentucky area, specializing in small-to-medium business accounting, Quickbooks training and business tax consulting. Loni focuses her client base on small-to-medium sized business, primarily self-employed individuals including physician and dental practices, landscape architects, plumbing and general contractors, dog breeders, attorneys,

cleaning services, advertising agencies, travel agencies and other service industries. Loni's extensive experience includes 17 years of public accounting and 3 years of industry experience. Some of the capacities in which Loni has functioned are:

- Official Certified Quickbooks Trainer
- Acting controller for a mid-sized advertising agency
- Lead auditor for both a city and a local chapter of a large not-for-profit agency
- Assisting clients with software selection and implementation
- Entity structure and selection
- Tax planning and preparation

Loni has also featured as an expert seminar speaker on topics such as the Revenue Reconciliation Act of 1997, QuickBooks Pro, Business Works, and Advanced Tax Savings Strategies for Small Business Owners, just to name a few. During Loni's 5 years in industry, she was controller for a national restaurant franchise. By the time Loni left, the company had more than quadrupled in staff and franchises. Loni was not only responsible for the monthly financial statements, and tax compliance, but also for the franchise requirements, zoning, licensing, and lease agreements for the new locations, in the states of TN, IN, OH, IL, and KY. This gave her unique and specialized insight into small-to-medium sized business and franchise accounting requirements. Loni received her accounting degree from the University of Louisville and has completed continuing education in the areas of federal estate and trust taxes, tax planning for self-employed individuals, and advanced S-Corporation Tax issues. She is a member of the American Women’s Society of Certified Public Accountants, American Institute of Certified Public Accountants, and the Kentucky Society of Certified Public Accountants. She has also served as Treasurer of Filson Fields Homeowners Association and Vice-President for the Louisville East Chapter of BNI. Contact Loni today through her website at www.parsoncpa.com

03/28/2024

IRS Third Party Authorizations – Did You Know?

All U.S. taxpayers have the right to designate a third party to work with the IRS on their behalf. In order to exercise this right, taxpayers must formally grant permission to the third party to represent them. This authorization may take several different forms:

Oral Disclosure: This level of permission simply authorizes the IRS to share the taxpayer's tax information with another person present on a phone call or in a meeting.

Third-party Designee: On their tax returns, taxpayers may designate a third party to discuss the return with the IRS. This authorization is limited to that specific return and year.

Tax Information Authorization: Taxpayers may appoint a third party to receive and review their confidential tax information for a specific type of tax for a designated time period.

Power Of Attorney: This designation authorizes a person or firm to represent the taxpayer in federal tax matters. The person or firm must be certified to practice before the IRS.

Oral disclosure and third-party designee permissions expire automatically. Taxpayers have the right to revoke tax information or power of attorney authorizations at any time, either by notifying the IRS of the revocation, or simply by appointing a new representative.

03/26/2024

Reducing Fees & Penalties - Did You Know?

If you are required to file your taxes, you should still file, even if you can't pay, as the failure-to-file penalty may be 10 times more than the failure-to-pay penalty. If you are unable to pay in full, try to file your tax return by the deadline of April 15th, 2024 and pay as much as you can. The IRS also has Installment Payment Plans available that you may qualify for.

In addition, April 15th is also the due date for Tax Year 2024 first quarter estimated tax payments for those making estimated payments.

03/21/2024

Taxpayer Bill of Rights - Did You Know?

As a taxpayer, you have a set of ten fundamental rights that the IRS is obligated to protect:

1. The Right to be Informed.
2. The Right to Quality Service.
3. The Right to Pay No More Than the Correct Amount of Tax.
4. The Right to Challenge the IRS's Position and Be Heard.
5. The Right to Appeal an IRS Decision in an Independent Forum.
6. The Right to Finality.
7. The Right to Privacy.
8. The Right to Confidentiality.
9. The Right to Retain Representation.
10. The Right to a Fair and Just Tax System.

The Taxpayer Bill of Rights ensures that the IRS must fairly review any objections a taxpayer raises to an IRS decision. Before objecting to an IRS letter, taxpayers should remember that tax refunds may also be adjusted for a variety of non-tax reasons, such as past-due child support. If you feel strongly that an IRS adjustment to your tax return is incorrect or unfair, a tax professional can review your return with you to determine whether you may have a basis for appealing the decision.

More information can be found in IRS Publication 1: Your Rights as a Taxpayer, available here: https://www.irs.gov/pub/irs-pdf/p1.pdf.

03/18/2024

Tax Debt Settlement Scams – Did You Know?

When a taxpayer owes more tax than they can pay without extreme hardship, the IRS sometimes accepts an offer-in-compromise (OIC). Under an OIC agreement, the taxpayer may settle their tax debt for less than the full amount owed.

However, the IRS warns taxpayers to watch out for "OIC mills," agencies that churn out stacks of OIC applications, costing the taxpayers they supposedly represent thousands of dollars. Many of these agencies make unrealistic claims in radio, TV and internet ads about settling tax debts for "pennies on the dollar." Often, a taxpayer gets talked into paying an OIC mill to file an application that the agency knows will be rejected, because the taxpayer does not qualify for the OIC program. Even when the IRS accepts an application from an OIC mill, the excessive fees charged by the agency may still cause the taxpayer financial harm.

If you are considering an OIC to settle your tax bills, do not believe the hype. You may check your eligibility using the IRS' Offer In Compromise Pre-Qualifier tool with the link below. Working with a trusted tax professional can also determine whether you qualify for the OIC program, as well as help you prepare an application with a better chance of being accepted.

Offer In Compromise Pre-Qualifier tool: https://irs.treasury.gov/oic_pre_qualifier/

03/13/2024

Credits and Deductions Changes This Filing Season – Did You Know?

As the April 15th filing deadline approaches, the IRS recently reminded taxpayers of several key tax law changes that took effect in 2023. Taxpayers should review these changes to avoid making errors on their returns.

Standard deduction amounts increased significantly from 2022 to 2023, up to $13,850 for single and married filing separately status, $20,800 for heads of household, and $27,700 for joint filers and qualifying surviving spouses. The maximum Additional Child Tax Credit, which is the refundable part of the Child Tax Credit (CTC), also increased to $1,600 for 2023.

Congress is considering legislation that would retroactively enhance the CTC itself. However, there is no need to wait for the result of those discussions to file your return. If a law change entitles you to a larger 2023 CTC than you have claimed, the IRS will automatically adjust your return, and send you a refund for the added credit amount.

A tax professional can help you determine how the 2023 credit and deduction rules affect your taxes, and file your return electronically to get your refund as rapidly as possible.

03/11/2024

Non-deductible Wellness Expenses – Did You Know?

The IRS recently issued a reminder that personal expenses for general health and wellness usually do not qualify as medical expenses for tax purposes. These costs typically cannot be claimed as itemized deductions, and are not eligible for reimbursement through a health flexible spending arrangement (FSA), health savings account (HSA) or similar tax-advantaged account.

Examples of non-deductible, non-reimbursable health and wellness purchases include healthy foods for weight or blood sugar management. Dishonest companies aggressively market food and wellness products, claiming that these items become eligible for FSA/HSA reimbursement when the seller provides a doctor's note to the buyer. In reality, a doctor's note generally does not change an ineligible expense into an eligible one.

Requests for FSA reimbursement based on these bogus marketing claims typically get denied, and may jeopardize the tax advantages of FSAs and similar plans. If you are unsure whether a particular health expense qualifies for reimbursement, check with your workplace benefits plan administrator before making the purchase.

03/07/2024

Recognizing Scams: The IRS Does NOT Contact Taxpayers in These Ways

Scammers often claim to represent the IRS in order to steal identities or money. You can better protect yourself by learning how to distinguish legitimate IRS communications from fraudulent messages or calls. As a starting point, it is important to know that there are some types of messages that the IRS never sends.

With the exception of verification codes for secure online account login, the IRS does not contact people or businesses about tax issues via text or SMS messages. The IRS also does not send messages to taxpayers through social media platforms or chat services.

While the IRS may communicate with a taxpayer via email, the messages will not ask the taxpayer to provide personal or financial information by replying or clicking on a link. All official IRS emails will originate from an address ending in irs.gov. If you are not 100% certain that an email claiming to be from the IRS is legitimate, do not reply and do not click any links in the message. Instead, delete the message and call the IRS directly for more information.

03/05/2024

Earned Income Credit Eligibility - Did You Know?

The Earned Income Tax Credit (EITC) provides vital assistance to low- and middle-income workers and their families. Unfortunately, the IRS estimates that up to 20% of eligible individuals do not claim the EITC, potentially costing them thousands of dollars a year. For eligible workers with qualifying children, the maximum EITC amount for tax year 2023 is $7,430, up nearly $500 from 2022. Eligible workers without dependents may receive a credit of up to $600.

To qualify for the EITC, you must have earned income, and you and your qualifying children (and your spouse if you file a joint return) must all have Social Security numbers. Your adjusted gross income (AGI) must be below the limit for your filing status and number of children. For example, the 2023 AGI for a taxpayer with two qualifying children cannot exceed $52,918 if the taxpayer files under single or head of household status, or $59,478 if the taxpayer files a joint tax return. In addition, you cannot have more than $11,000 in investment income.

Because the EITC is fully refundable, you may receive the credit as an IRS refund even if you owe no tax. However, you must file a tax return to claim the credit. A tax professional can help you determine whether you qualify for the EITC, and if so, help you file a return electronically to get your refund as quickly as possible.

02/29/2024

Hobby or Business - Did You Know?

Recent years have seen a rise in the number of people pursuing “side hustles,” such as delivery driving, dog walking and online craft selling. Many of these activities could be classified as either hobbies or business ventures, depending on how you pursue them. Since different tax rules apply for businesses and hobbies, it is important to know how the IRS will likely classify your side gig. The IRS considers a variety of questions, including:

- Do you depend on the activity for your livelihood?
- Do you pursue the activity in a professional, businesslike manner, and keep detailed records?
- Is the activity currently profitable for you, and if not, is there good reason to believe it will become consistently profitable in future years?
- Do you have the knowledge and skills needed to pursue the activity as a business?
- Do you approach the activity in a way that shows the intent to make a profit, such as changing methods to boost revenues?

In many cases, business income is subject to both income and self-employment tax, whereas hobbies may be subject to income tax. However, pursuing an activity as a business may enable you to reduce your taxable income by deducting business expenses, such as supplies, business vehicle use, and home office costs. A tax professional can help you determine how your side gigs should be classified, and how to account for that classification in your tax planning.

02/27/2024

Refund Amounts - Did You Know?

If your refund amount is different than stated on the filed tax return, part or all of your refund may have been used to pay off (offset) past-due federal tax, student loans, state income tax or other past-due debts.

You'll receive a notice from the IRS if such an offset occurs that will show the original tax refund amount, the offset amount, as well as the name, address and telephone number of the agency receiving the payment.

If you haven't received your refund yet, you may be able to check the status using the IRS' "Where's my Refund?" tool: https://www.irs.gov/refunds.

02/22/2024

Recipients of the Healthcare Premium Tax Credit Must File Form 8962 – Did You Know?

The health insurance Premium Tax Credit (PTC) helps millions of Americans with affordable healthcare. Most people who qualify for the credit receive it as a reduction in their monthly insurance premiums, known as the Advance Premium Tax Credit (APTC). If you purchased coverage through the Insurance Marketplace, watch your mail for IRS Form 1095-A (Health Insurance Marketplace Statement). This form shows whether you received the APTC during 2023.

The IRS requires all recipients of the APTC to file a 2023 tax return that includes Form 8962 (Premium Tax Credit), even if they would not otherwise have to file. On this form, you will reconcile your APTC premium reductions with your actual PTC amount for the year. If your credit amount exceeds those premium reductions, you may claim the excess credit as either a decrease in your tax or increase in your tax refund. However, if your premium reductions were greater than your actual PTC, you may need to repay part of the APTC.

If you qualified for the PTC in 2023 but did not receive APTC premium reductions, you may be able to claim claim your entire credit amount on Form 8962. A tax professional can help you complete the form, and file your return electronically to receive your refund as quickly as possible.

02/20/2024

Common Tax Filing Errors – Did You Know? (2/2)

Every year, many taxpayers may make mistakes on their returns that cause IRS processing delays. Be sure to also check for the following:

Math Mistakes:
Even mathematicians sometimes make errors in simple addition and subtraction, and some of the calculations required for 1040 schedules can be complicated. Thoroughly double-check every bit of math on your return.

Incorrect Filing Status (Single, Married Filing Jointly, etc.):
The IRS will not accept a return showing a filing status that you are not eligible to claim. If you qualify for more than one status (for example, filing jointly or separately if you are married), the option you choose may significantly change your tax.

Incorrectly Figuring Credits or Deductions:
Once you determine that you qualify for a tax deduction or credit, you must carefully compute the amount that you can claim. Many taxpayers fail to take into account income limitations (including the calculations that must be made if your income falls within a “phase-out” range) and other restrictions. Others claim less than they could, or miss out on deductions and credits entirely by not filing the required forms and schedules.

Expired ITIN:
Those who file their IRS returns using individual tax identification numbers (ITINs) must keep in mind that ITINs periodically expire. Although a return filed with an expired ITIN may be accepted, the IRS generally will not allow any of the exemptions or tax credits claimed. The taxpayer must renew their ITIN in order to obtain the full refund that they are owed.

To avoid costly mistakes, a tax professional can help prepare or check your return and file it electronically. A tax pro might also help you claim deductions and credits that you would otherwise miss.

Address

5427 Bardstown Road
Louisville, KY
40291

Opening Hours

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

Telephone

+15022313441

Website

http://parsoncpa.com/

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