RGA Bookkeeping and Tax Services

RGA Bookkeeping and Tax Services Services include Bookkeeping, Payroll and Income Tax Preparation for Small Business and Indivduals. My Bookkeeping and Tax practice includes all areas of bookkeeping and tax consulting for small business owners and issues with State and Federal Tax laws.

Also includes the preparation of payroll and reports required by IRS and State entities. As a Quickbooks Proadviser I also provide traning and consulting for quickbooks software.

Mission: To provide quality Bookkeeping,Tax and Payroll Services for my clients and associates.

Operating as usual

01/11/2020

Taxpayer Advocate finds problems with tax refund delays and taxpayer service

The Internal Revenue Service’s new anti-fraud filters are unnecessarily flagging millions of tax returns and delaying legitimate tax refunds for weeks or months, according to a new report from the acting National Taxpayer Advocate’s office.

Bridget Roberts, who took over the job last year from Nina Olson, the longtime head of the IRS’s Taxpayer Advocate Service, released her first annual report to Congress Wednesday, where she focused on inadequate taxpayer service, limited funding of the IRS, and implementation of the Taxpayer First Act, which was passed by Congress last year. Unlike Olson, however, Roberts was appointed to fill the role in only an acting capacity, and she said the job deserves a permanent appointee.

The report noted that during the 2019 filing season, the IRS used a new refund fraud filter known as “Filter X” that ultimately flagged and stopped the processing of nearly 1.1 million tax returns. More than half of those refunds were eventually paid. But the false positive rate for other non-identity theft refund fraud filters was a whopping 71 percent. That means 71 out of every 100 tax refunds stopped by the IRS’s fraud filters were ultimately determined to be legitimate.

Along with the annual report, Roberts also released the third edition of the National Taxpayer Advocate’s “Purple Book,” presenting 58 legislative recommendations aimed to strengthen taxpayer rights and improve tax administration.

The report found that the Taxpayer First Act, which was signed into law on July 1, 2019, has made the most comprehensive revisions to IRS procedures since the IRS Restructuring and Reform Act of 1998. The new law includes 23 provisions previously recommended by the National Taxpayer Advocate.

“By passing the Taxpayer First Act, Congress has sent the IRS a clear message that it needs to rethink the way it operates – the services it provides, its organizational structure, the way it trains employees, and the technology it uses,” Roberts wrote in her preface to the report.

Despite the passage of the Taxpayer First Act, the report found the IRS is struggling to accomplish its mission of providing taxpayers with top-quality service to meet their tax responsibilities. The IRS is among the lowest-performing federal agencies in providing a positive customer experience, according to the American Customer Satisfaction Index and the Forrester U.S. Federal CX Index. The 2019 Forrester report ranked the IRS as 13th out of 15 federal agencies and characterized the IRS’s score as “very poor.”

During fiscal year 2019, the acting National Taxpayer Advocate’s report found the IRS received approximately 100 million telephone calls, but the agency’s customer service representatives answered only 29 percent of the calls. In recent years, the agency has also closed more than 10 percent of its face-to-face Taxpayer Assistance Centers, generally requiring taxpayers to schedule appointments in advance, and reduced the number of taxpayers served by nearly half from FY 2015 to FY 2018.

The IRS is also struggling to collect taxes. The IRS recently estimated it was unable to collect an annual average of about $381 billion in unpaid tax attributable to legal-source income for tax years 2011-2013. Each U.S. household that does comply is estimated to be effectively paying an average annual “surtax” of more than $3,000 to subsidize noncompliance by others.

The IRS frequently focuses its enforcement efforts against taxpayers with the least ability to pay, but taxpayers often can’t reach the IRS to make it aware of their hardships. During FY 2019, the IRS’s Automated Collection System (ACS) more than doubled the number of levies it served (from about 200,000 in FY 2018 to approximately 428,000 in FY 2019), while the percentage of calls answered on the consolidated ACS telephone lines dropped from 49 to 31 percent. Wait times for taxpayers who were able to reach the IRS by phone increased from 24 minutes to 38 minutes. The report urged the IRS to prioritize phone service for taxpayers against whom it takes collection action.

The report attributed the IRS’s shortcomings mostly to budget constraints but also to a culture in which the agency focuses on its own priorities without adequately factoring in the needs of taxpayers. Since FY 2010, the IRS budget has been cut approximately 20 percent after adjusting for inflation, and the number of full-time equivalent employees has fallen by about 22 percent. The report urged Congress to increase the IRS’s funding and to change the budget rules to account for the revenue additional IRS appropriations are likely to generate. In FY 2018, the IRS collected nearly $3.5 trillion on a budget of about $11.4 billion. In particular, the report recommends that Congress increase funding for taxpayer service and technology.

The report also found the Free File program was failing to promote the best interests of taxpayers, and pointed to low usage and taxpayer confusion. Under the Free File program’s terms, 70 percent of individual taxpayers should qualify to prepare their returns at no cost, but fewer than 2 percent of taxpayers actually use the program, the report found. Over the past four years, fewer than half of taxpayers who have used Free File in one year have used it again the following year. The low initial usage rate and low repeat usage rate suggest taxpayers are not generally satisfied with the program. On top of that, the report found the IRS incurs costs to administer the program and Free File members provided free tax software to at least 17.7 million taxpayers outside the Free File program during the 2019 filing season. The report noted that it is likely that most, if not substantially all, of the 2.5 million taxpayers who used Free File software last year would have been able to file for free through company websites if Free File didn’t exist. The IRS announced a new agreement last week with the Free File software vendors to make it easier to find free versions of their tax prep software.

The IRS issued a statement in response to the report. "The IRS respects the vital role the National Taxpayer Advocate and employees of the Taxpayer Advocate Service play in the tax administration process," said IRS spokesman Dean Patterson in the statement. "IRS leadership will be reviewing this year’s report to help us in our continuing efforts to help the nation’s tax agency improve and evolve. The IRS emphasizes the agency and our employees are fully committed to proudly serving the nation’s taxpayers and ensuring fairness throughout the tax system. The IRS remains committed to continuing to do as much as it can, subject to budget constraints, to provide meaningful services to all taxpayers, whether in-person, on the phone or online. And the agency has taken important steps in the past year to appropriately balance taxpayer services with meaningful enforcement efforts to pursue those who would intentionally evade their tax obligations, to assure law-abiding citizens that everyone is paying what the law requires. The new IRS annual report highlights many of the areas where the IRS and our employees are taking important steps forward."

07/23/2019

Here's the tax rates for Married filing jointly couples for 2019, now is time to adjust your FWT tax with your employer or estimate tax payments if your self employed.

Married, filing jointly
Tax rate Taxable income bracket Tax owed
2019 tax year
10% $0 to $19,400 10% of taxable income
12% $19,401 to $78,950 $1,940 plus 12% of the amount over $19,400
22% $78,951 to $168,400 $9,086 plus 22% of the amount over $78,950
24% $168,401 to $321,450 $28,765 plus 24% of the amount over $168,400
32% $321,451 to $408,200 $65,497 plus 32% of the amount over $321,450
35% $408,201 to $612,350 $93,257 plus 35% of the amount over $408,200
37% $612,351 or more $164,709.50 plus 37% of the amount over $612,350

07/15/2019

When Is the Extended Due Date for a Corporate Tax Return?

When Is a Corporate Tax Return Due?

How Far Back Can You Amend Your Tax Return?
There is a range of due dates and extended due dates for tax returns, depending on which kind of business you run. The following due dates are based on tax returns ending the 2018 fiscal year. However, a more general discussion will be made later about due dates for taxes.

What Is the Extended Due Date for a Corporate Tax Return?
Sole Proprietorships

If you’re a sole proprietorship, or at least a single-member LLC, then your tax return will be under Schedule C and will be filed with your own personal tax return as the owner of the business. The due date for this kind of tax is April 15, 2019.

Partnerships
If you’re a partnership, then you will be filing your returns on the Form 1065 with the Schedule K-1 for each partner in the company. The due date for this tax return is March 15, 2019.

S Corporations
If you’re an S Corporation then you will file your returns on the Form 1120 S. The deadline for these returns is March 15, 2019.

C Corporations
If you’re a C corporation then you will file your returns on the Form 1120. Here your tax year matters since it will determine the exact date on which you will be expected to file your returns. If your year ends on December 31, then the corporate tax return due date for 2018 will be April 15, 2019. In general, however, as a C Corporation, you should file your tax returns on or before the fifteenth day of the fourth month after the end of your corporation’s tax year. If, however, you have a fiscal year that ends on June 30, you should file your tax returns by the fifteenth day of the third month after your tax year ends.

The Case for Extensions
In the event that you are late for whatever reason and cannot observe the deadlines set out, there are extended business tax returns that allow you to file your tax returns a little later.

Sole Proprietorships
For sole proprietors and single-member LLCs, the appropriate schedule is Schedule C. These tax returns are filed along with the business owner’s own individual tax returns. You have an extension until October 15, 2019.

Partnerships
For partnerships and multiple-member LLCs, the extension deadline is September 16, 2019. The actual date should be September 15, 2019. However, because this will be a Sunday, it has been extended to the next day, which will be a Monday.

S Corporations

S corporations have an extension deadline of September 16, 2019, which is the same as that of partnerships and multiple-member LLCs.

C Corporations
C corporations have an extension deadline of October 15, 2019. The corporate tax filing deadline for 2017 was October 15, 2018.

Recent Changes to Due Dates
Partnerships

For partnerships, there are a few changes that were brought into effect as from the 2016 tax year. From that year onward, tax returns for partnerships will be filed on the Form 1065 and should be filed by the fifteenth day of the third month after the end date of the tax year of the partnership. For most partnerships, the tax year ends on December 31, and so the due date is March 15. Previously, that date had been April 15. The reason why the due date has been pushed to an earlier date is so that partners have a chance to receive their Schedule K-1s before the due date for filing their personal tax returns.

C Corporations

For C corporations, there are a few changes that were brought into effect as from the 2016 tax year. These tax returns are filed on the Form 1120 and the due dates depend on the end of the fiscal/tax year of the C corporation.

If the fiscal year of the C corporation ends on December 31, the new due date will be April 15 of the next year. In this case, that date is April 15, 2019.

If the fiscal year of the C corporation ends on a date other than December 15, then the due date is simply the fifteenth day of the fourth month after the end of the fiscal year. You can see that this rule applies even in the case of C corporations whose fiscal year ends on December 31.

How Are Due Dates Determined?
While concrete dates have been given for the due dates, they are not rigid and can be changed in certain circumstances. If the due date happens to fall on a holiday or a weekend, then the due date will be moved to the immediate next work day. So, for example, if the deadline for the tax return for 2017, April 15, will fall on a Saturday, then the due date will be pushed to the following Monday, which will be April 17. There are different types of business entities and the type of business entity you run determines the due date for your tax returns.

Sole Proprietorships

A sole proprietorship is not an independent business entity. Instead, it is considered an extension of the business owner, and the assets and liabilities of the business are really the assets and liabilities of the business owner. This holds when determining the due dates for the tax returns of the business. The year-end of a business is December 31, and the due date for its tax return is April 15, at least as far as 2019 is concerned. Note that these are also the year-end and the due date for the individual’s tax return. Sole proprietorships will file their tax returns on the business income tax return section of the Schedule C. This is part of the set of schedules and forms that come with a person’s personal tax return. The individual tax return is filed in Form 1040.

Single-Member LLCs

A single-member LLC is one that has just one owner. Such an entity is taxed the same as a sole proprietorship, where the Schedule C is used to determine the net income of the single-member LLC. The tax returns and taxes are due on April 15, along with the owner’s personal tax return.

Partnerships

Returns for partnerships are filed as information returns on the Form 1065. It is called an information return because the tax won’t be owed there. Instead, it will be owed on the personal tax returns of the individual partners. The form 1065 is due on the fifteenth day of the third month after the partnership’s tax year ends.

Multiple-Member LLCs

These entities are taxed the same as partnerships, with the exact same regulations applying.

C Corporations

A C corporation is a corporation that has not filed an election under Subchapter S. In this case, the corporation can choose whichever date is convenient, as the company's year-end date. For the 2018 tax year, such corporations should file their tax returns and pay their taxes by the 15th day of the fourth month after the end of the fiscal year of the corporation.

S Corporations

S Corporations are corporations that have filed an election under the Subchapter S. in this case, the tax returns will be filed on the individual income tax returns of the corporation’s owners. The tax return is filed under Form 1120-s and the individual owners will receive their tax distributions on a Schedule K-1.

03/01/2016

If you have made rollovers from employer retirement plans to a SIMPLE IRA rather than a rollover IRA in 2015, such a rollover is now a permitted rollover not subject to tax if the contribution was made after Dec. 18, 2015.

03/01/2016

Due to holidays, the due dates for 2015 tax returns have received a modest extension. April 18, 2016, is the due date for most of the country, with April 19, 2016, being the due date in Maine and Massachusetts. The extended due date, due to a weekend, is Oct. 17, 2016.

New Web Site for my Bookkeeping Practice.   www.rgabookkeepingandtax.com
05/25/2015
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New Web Site for my Bookkeeping Practice.

www.rgabookkeepingandtax.com

As a Quick Books Proadvisor we provide tailored business training regarding bookkeeping, payroll, and software installation for small business owners and corporations.

12/07/2014

Here's some great end of year tips for 2014.

Energy Tax Credits and Rebates

Government agencies, utilities and others offer a variety of tax credits, rebates and other incentives to support energy efficiency, encourage the use of renewable energy sources, and support efforts to conserve energy and lessen pollution.

Residential Renewable energy Tax Credit – the federal tax credit for residential energy property applies to: solar-electric systems, solar water heating systems, fuel cells.
The Energy Improvement and Extension Act of 2008 extended the tax credit to small wind-energy systems and geothermal heat pumps, effective January 1, 2008.
Other key revisions included an eight-year extension of the credit to December 31, 2016; the ability to take the credit against the alternative minimum tax; and the removal of the $2,000 credit limit for solar-electric systems beginning in 2009. A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer.

Electric Rebate Program – provides businesses with rebates based on the installation of energy efficiency equipment and system improvements

179D Energy Tax Deduction – EPAct – Energy Efficient Buildings – Section 1331 of the Energy Policy Act of 2005 enacted Section 179D of the Internal Revenue Code which provides federal tax deductions worth up to $1.80 per square foot for commercial buildings that have been newly constructed or retrofitted since December 31, 2005.

Plan Your Charitable Contributions

If you have made money in stocks or funds, you can make a contribution or transfer shares to a charitable organization, allowing them to sell the shares (they do not pay taxes on it), and receiving a charitable deduction for yourself – win/win!

If your contribution entitles you to merchandise, goods, or services, including admission to a charity ball, banquet, theatrical performance, or sporting event, you can deduct the amount that exceeds the fair market value of the benefit received.

For a contribution of cash, check, or other monetary gift (regardless of amount), maintain as a record of the contribution a bank record or a written communication from the qualified organization containing the name of the organization, the date of the contribution, and the amount of the contribution. In addition to deducting your cash contributions, you generally can deduct the fair market value of any other property you donate to qualified organizations.

Charitable contributions are deductible only if you itemize deductions. To be deductible, charitable contributions must be made to qualified organizations.

Choose the Correct Tax/Financial Advisor

He or she should be able to inform you of tax-savings options relating to business structure. The right advisor will be able to assemble your tax plan with a far more efficient structure, using the right strategies, with the right combination of relative assets (looking beyond S-Corps and LLCs, etc) -that’s the key. That’s how you make the most of your tax return and legally put yourself into the minimum tax bracket and tax level. You should choose someone who can help you look and plan ahead for how to set yourself up, instead someone who is reacting to the way things have already gone.

Your tax adviser can also help you evaluate and strategize how to structure your income/assets year to year if you expect to be in the alternative minimum tax group. The alternative minimum tax, or AMT, affects taxpayers who have higher than average incomes, are married and have more than two children, own a home and live in a state with high incomes because it won’t let them count certain deductions that would otherwise lower their taxes (such as dependents or children, state income taxes, property taxes, interest on second mortgages or home-equity loans and high medical expense). By strategizing with your adviser on how to perhaps exercise a stock option or take a bonus before year end, you may be able to get taxed at a lower AMT rate.

Don’t Forget About Potential Deductions and Education Credits

Caution: Deductions Increase Your Audit Risk

To claim work related-expenses you must itemize deductions; Work-related expenses must exceed 2% of adjusted gross income; if you must pay the alternative minimum tax, you cannot take work-related deductions

Unreimbursed Employee Expenses (paid or incurred during tax year; for carrying on your trade or business of being an employee; ordinary and necessary)
Education that is work related
Legal fees related to your job
Licenses and regulatory fees
Medical exams required by an employer
Passport for business trip; Travel, transportation, entertainment, and gifts related to work
Business Liability Insurance
Depreciation on Computers
Dues to Chambers of Commerce and Professional Societies (Boards of trade, business leagues, civic or public service organizations, Unions, real estate boards, trade associations)
Work Clothes and Uniforms, Protective clothing
Tax preparation fees

Student Loan Interest Deduction
If your modified adjusted gross income (MAGI) is less than $75,000 ($150,000 if filing a joint return), there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. This deduction can reduce the amount of your income subject to tax by up to $2,500. The student loan interest deduction is taken as an adjustment to income. This means you can claim this deduction even if you do not itemize deductions on Form 1040’s Schedule A.

There are two Education Credits available: the American Opportunity Tax Credit and the Lifetime Learning Credit.
An education credit helps with the cost of higher education by reducing the amount of tax owed on your tax return. If the credit reduces your tax to less than zero, you may get a refund.

Make Maximum Contributions To Your Tax Advantaged Plans

If you have a High Deductible Health Plan, you may contribute to a Health Savings account (HSA). A tax advantaged medical savings account is available to taxpayers in the United States who are enrolled in a high-deductible health plan. The funds contributed to an account are not subject to federal income tax at the time of deposit. HSA funds may currently be used to pay for qualified medical expenses at any time without federal tax liability or penalty

Contribute the maximum to your defined contribution and benefit plans.

Traditional 401ks (defined contribution plan) and IRAs (Individual retirement accounts) allow taxpayers to deduct the value of contributions (to a limit) from taxable income but tax value of distributions made during retirement.

Roth IRAs and Roth 401ks generate no immediate tax deductions but allow distributions to be received tax-free after the worker has reached retirement age.

Address

711 Firefly Street
San Antonio, TX
78216

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Monday 09:00 - 17:00
Tuesday 09:00 - 17:00
Wednesday 09:00 - 17:00
Thursday 09:00 - 17:00
Friday 09:00 - 17:00
Saturday 09:00 - 17:00

Telephone

(210) 341-1009

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