Firm of John F Howes CPA

01/21/2024

Some changes still coming (maybe) to 2023.

A new last-minute tax deal could change the child tax credit, R&D expensing, and the employee retention tax credit.

01/02/2023

The word of caution from the IRS comes due to a change in how the tax agency issues 1099-Ks.

01/02/2023

Some taxpayers are going to get a surprise 1099 this year.

The word of caution from the IRS comes due to a change in how the tax agency issues 1099-Ks.

03/13/2022

It's tax season, if you call me, you won't get me. You will get a text back. If you text me, you will get a text back. If you show up at my door without an appointment, I will not answer when you ring the doorbell.
New clients are welcome, but do not expect me to call you. I do not return phone calls until April 19th. Email is my friend.
This is the only way I can maintain some semblance of order this time of year.

02/09/2022

Always wondered about this. Once had an IRS agent tell me that if an owner could not pay a "reasonable compensation" because of a lack of funds, then they must borrow the money in order to do so. The agent was clearly misinformed.

If an S corporation cannot pay an owner, then they should not make any distributions.

Reasonable Compensation is derived from the value of the services provided, not the profit or loss of the business.

01/26/2022

Welcome to my nightmare!

The letters that the Internal Revenue Service has been sending to taxpayers about the amounts they received on advance payments of the Child Tax Credit may have outdated information.

01/23/2022

Tax form changes, wish they would go back to the old forms. So much easier for review purposes.

Don't get caught off guard this tax season. Familiarize yourself with potential changes for your 2021 tax return before tackling your 1040.

01/22/2022

https://www.cpapracticeadvisor.com/tax-compliance/news/21253705/employers-must-file-w2-forms-by-january-31

A 2015 law made it a permanent requirement that employers file copies of their Form W-2, Wage and Tax Statements, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by January 31.

01/22/2022

Interesting

01/22/2022

Next Monday the fun begins!

The January 24 start date for individual tax return filers allows the IRS time to perform programming and testing that is critical to ensuring IRS systems run smoothly. Updated programming helps ensure that eligible people can claim the proper amount of the Child Tax Credit after comparing their 2021 advance credits and claim any remaining stimulus money as a Recovery Rebate Credit when they file their 2021 tax Read the full release:https://www.naea.org/wp-content/uploads/2022/01/IR-22-08.pdf