Tax Preparation & Representation/Notary Public (TPR)

02/12/2023

IRS issues guidance on state tax payments to help taxpayers

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IR-2023-23, Feb. 10, 2023

WASHINGTON — The Internal Revenue Service provided details today clarifying the federal tax status involving special payments made by 21 states in 2022.

The IRS has determined that in the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns.

During a review, the IRS determined it will not challenge the taxability of payments related to general welfare and disaster relief. This means that people in the following states do not need to report these state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island. Alaska is in this group as well...

02/09/2023

For your information the IRS is urging taxpayers to delay filing personal income tax returns while a decision is made concerning tax treatment of certain economic stimulus and hardship payments issued by states with regard to the covid 19 epidemic. I encourage and recommend that you delay filing, if possible until you are sure all source documents with tax related implications are received and guidance is provided by IRS.

Please do not hesitate to contact me if there are any question regarding this matter.

09/13/2022

1.2 billion in IRS penalty relief refunds coming for certain 2019 and 2020 tax returns

To help struggling taxpayers affected by the COVID-19 pandemic, the IRS recently issued Notice 2022-36, which provides penalty relief to most people and businesses who filed certain 2019 or 2020 returns late.

To qualify for this relief, any eligible income tax return, not already filed, must be filed on or before Sept. 30, 2022

The agency is also taking an additional step to help those who paid these penalties already. Nearly 1.6 million taxpayers will automatically receive more than $1.2 billion in refunds or credits. Many of these payments will go out by the end of September.

Which returns are eligible
The relief applies to the failure to file penalty. The penalty is typically assessed at a rate of 5% per month, up to 25% of the unpaid tax when a federal income tax return is filed late. It applies to forms in both the 1040 and 1120 series, as well as others listed in the notice.

Other penalties, such as failure to pay penalty, are not eligible.

01/19/2022

TAX PREPARATION & PREPARATION/NOTARY PUBLIC (TPR)
TAX TIPS JANUARY 2022

Happy New Year 2022! I hope the new year for you and yours will be positive, happy, and healthy, given the circumstances. Tax time will be here shortly, and we need to begin preparation. Here are a few tax tips to facilitate you meeting filing obligations. Below is a summary of the most important new tax changes and extensions through the end of 2021.

• Charitable contribution without itemizing of $300 to qualified entities extended to 2021 and increased to $600 for a married filing joint return.
• Business meal deduction increased to 100% for periods after 12/31/2020-12/31/2022 if food or beverages are provided by a restaurant. Otherwise to 50% rule still applies.
• Tuition and fees education deduction was not extended after 2020 and is eliminated.
• The cancellation of qualified principal residence indebtedness exclusion from gross income of up to $2 million for married couples is extended through the end of 2025.
• Residential energy efficient property credit extended through the end of 2023.
• Child tax credit increased to $3,000 per qualifying child, and $3,600 if the qualifying child is 5 years old or younger as of 12/31/2021.
• Age limitation for the child tax credit is increased from age 16 to 17.
• Earned income credit (EIC) is expanded for individuals without a qualifying child; investment income limitation is increased from $3,650 to $10,000; if earned income for 2021 is less than 2019, you may elect to use 2019 earned income to calculate the 2021 EIC.
• The child and dependent care expense credit paid for a qualifying person is increased to $8,000 for one person, and $16,000 for two or more.
• For 2021 through 2025, discharge of student debt, for any reason, may be excludable from taxable income absent quid pro quo required from the discharging lender.

Employers and payors are required by law to provide source documents such as W-2 and 1099 by January 31, 2022. Please be patient with this deadline because IRS in most cases will not attempt to enforce compliance with this requirement until at least February 15, with consideration given to mailing delays. In the recent past, a client insisting on filing without receiving all documents had to file amended returns when additional forms were subsequently received resulting in an additional fee for preparing and amended return.

I hope you have a healthy 2022. I look forward to helping you have a successful filing season and please contact me to assist in your tax preparation, representation, and notary public needs.

Sincerely,
Fletcher Haley Sr. PO Box 402
Enrolled Agent Antioch, CA 94509
(Ret'd. IRS) [email protected]
"Over 26 years of IRS experience"


“Over 26 years of IRS experience.”

06/28/2021

If you have not filed, missing stimulus payments, or wondering if you still qualify the attached provides very useful information to assist in your inquiry.

Frequently asked questions about the Recovery Rebate Credit.

05/27/2021

Very useful information for those especially receiving IRS' CP11 letter.

COVID Tax Tip 2021-74, May 25, 2021

03/22/2021

Note: This extension does not apply to State returns.

IR-2021-59, March 17, 2021 — The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.

02/03/2021

TAX TIPS JANUARY 20 February 2, 2021

The 2020 filing season is here and with its arrival there are changes that may affect preparation of your tax returns. IRS reports they will not begin receiving tax returns until February 12, 2021 for tax years ending 12/31/2020. This will allow you additional time to ensure all documents relative to your tax report will be provided.

NEW FOR 2020

• Age for required minimum distribution from retirement plans increased from 70 1/2 to 72
• The mortgage interest deduction for certain qualified mortgage insurance premiums after 12/31/2017 is extended through 12-31-2020
• Deduction for unreimbursed medical expenses is reduced from 10% to 7.5% for taxable years before 1-1-2021
• Standard mileage rates for personal vehicles used for: Business purposes 57.5 cents
Per mile
Charitable purposes 14 cents per mile
To obtain medical care 17 cents per
mile
• Standard deduction increased to $24,800 for married filing jointly
12, 400 for singles and married filing separately
18,650 for head of household
• Health Flexible Spending Arrangement contributions amount increased to $2,750
• Non-itemizers may deduct up to $300 per return of charitable cash contributions

This, as usual, is a summary of changes for your information. If you have additional questions, please contact me.

Be safe – respect others, wear your mask, practice social distancing, and have a happy and healthy new year!

11/15/2020

Self-supporting college students may qualify for an Economic Impact Payment



Any eligible self-supporting college student who doesn't need to file a tax return should register using the Non-Filers tool by 3:00 p.m. ET November 21 to receive an Economic Impact Payment before the end of this year.

Generally, a self-supporting student who registers will receive a $1,200 payment if they are single or $2,400 if married and file a joint return and the student or their spouse cannot be claimed as a dependent. If they have dependent children, they may also get an additional $500 for each qualifying child.

Only self-supporting students who are not required to file a tax return should use the Non-Filers tool. Dependent students do not qualify. This means any student who is claimed as a dependent by their parents or someone else cannot get a payment.

Recent college graduates may not have received an Economic Impact Payment because they were claimed as a dependent by their parents or someone else. If their situation changes, these graduates may be eligible for the Recovery Rebate Credit when they file their 2020 tax return in 2021.

People who don't normally file a tax return may be able to register for an Economic Impact Payment quickly using the Non-Filers tool on IRS.gov.

Students who need to or want to file a regular tax return should not use the Non-Filers tool. This includes any student who had federal income tax withheld from their pay and wants to file a tax return to claim a refund. Working students who have a summer or part-time job should consider filing a tax return so they can receive a potential federal tax refund.

Anyone using the Non-Filers tool can speed up the arrival of their payment by choosing to receive it by direct deposit. Those not choosing this option will get a check.

People can track the status of their payment using the Get My Payment tool starting two weeks after they register.

Anyone who misses the November 21 deadline will have to wait until next year to claim the Recovery Rebate Credit, if they’re eligible, when they file their 2020 federal income tax return.

More Information:
Economic Impact Payment Information Center
A Closer Look

Share this tip on social media -- : Self-supporting college students may qualify for an Economic Impact Payment. https://go.usa.gov/x7RWQ

Get My Economic Impact Payment Non-Filers: Enter Payment Info Here Get Coronavirus Tax Relief Get Your Refund Status Tax Professionals: Renew Your PTIN Get Your Tax Record View Your Account Make a Payment Forms and Instructions 1040 and Schedules 1-3 Individual Tax Return Other 1040 Schedules Inform...

05/11/2020

Time is running out to receive Economic Impact Payments by Direct Deposit....
Load direct deposit information at www.irs.gov/getmypayment

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04/15/2020

ICYMI # 7

I hope most of you had the pleasure of waking up with having Economic Impact Payments deposited into your accounts.

If not, IRS launched the "Get My Payment" portal on www.irs.gov.

Get My Payment allows people a chance to provide their bank account information. People who did not use direct deposit on their last return will be able to input information to receive drect deposit into their bank account, expediting request.

In order to enter bank account information, you will need to have the following information available:

1. Adjusted gross income from the most recent return submitted, 2018 or 2019

2. Refund or amount owed from the last filed tax return, and

3. Bank account type, account and routing numbers

Get My Payment Get Coronavirus Tax Relief Non-Filers: Enter Payment Info Here Get Your Refund Status Do Your Taxes for Free Get Your Tax Record View Your Account Make a Payment Forms and Instructions 1040 and Schedules 1-3 Individual Tax Return Other 1040 Schedules Information About the Other Schedu...