Shippen, Pope & Associates, PLLC

Shippen, Pope & Associates, PLLC We maintain a full service approach to accounting and tax. It is our goal to add value to your busin

With CPA's who have been serving the Yuma community since 1979, Shippen, Pope & Associates, PLLC is a trusted advisor for business and individual clients. We work with our clients and help them understand their financial statements. We work and support the business owner and accounting staff so that the company records are current and meaningful. A business needs current financial data in order to make the necessary changes to overcome the day to day business challenges due to changes in tax law, business regulations, competition, economic conditions, and political environment.

In 2019, the Taxpayer First Act established the IRS Independent Office of Appeals (IOA) to resolve federal tax “controve...
09/30/2022

In 2019, the Taxpayer First Act established the IRS Independent Office of Appeals (IOA) to resolve federal tax “controversies” without litigation. In general, the IOA’s resolution process is available to all taxpayers, but the IOA isn’t required to consider every dispute. Now, the IRS is proposing regulations to clarify what rules the IOA must follow when denying a request for a resolution. Along with other guidelines, the proposed regs say the IOA must be fair and impartial to both the government and taxpayer, promote a consistent interpretation of tax laws and enhance public confidence in the process. Comments on the proposed regs are due by Nov. 12, 2022.

Do IRS employees follow the law when contacting taxpayers? In most cases, yes, according to a recent audit. Taxpayers ha...
09/29/2022

Do IRS employees follow the law when contacting taxpayers? In most cases, yes, according to a recent audit. Taxpayers have the right to seek representation when contacted by the IRS. The Treasury Inspector General for Tax Administration (TIGTA) did its annual audit of IRS compliance practices to ensure these rights are protected and violations are addressed. The audit found that the majority of IRS Field Collection employees appeared to comply with the relevant provisions and fair tax collection practices. However, not all revenue officers are familiar with the requirements. TIGTA recommended that the IRS reemphasize the correct procedures. Here’s the audit: https://bit.ly/3ROA60B

Tax law excludes from “gross income” damages received in a legal action for “personal physical injuries or physical sick...
09/29/2022

Tax law excludes from “gross income” damages received in a legal action for “personal physical injuries or physical sickness,” if certain conditions are met. There must be a “direct causal link” between the damages and the injury. In one case, the U.S. Tax Court ruled that married taxpayers weren’t entitled to income exclusion for a settlement payment the husband received from his former employer in connection with an employment discrimination / wrongful termination lawsuit. Although the settlement agreement provided for payment “for alleged personal injuries,” there was no evidence that it was paid on account of physical injuries or sickness. (TC Memo 2022-90)

09/27/2022

Tax rules regarding remote and hybrid work arrangements need updating. That’s what the
American Institute for Certified Public Accountants (AICPA) is telling the IRS and Treasury Department. The AICPA claims that existing revenue rulings and case law interpretations don’t reflect the fact that many workers now consider their homes their “principal place of business.” This makes it difficult for employers to determine when expenses are deductible travel expenses and when they’re non-deductible commuting expenses. The AICPA recommends offering a safe harbor option with specific criteria that no longer refers to concepts such as “exclusive use.” To read the AICPA letter:

How will the IRS spend $80 billion of new funding provided under the Inflation Reduction Act? The plan is to course-corr...
09/26/2022

How will the IRS spend $80 billion of new funding provided under the Inflation Reduction Act? The plan is to course-correct after setbacks (including COVID-19) that led to erosion of customer service. U.S. Treasury Secretary Janet Yellen listed some key areas of focus. They include fully staffing all IRS Tax Assistance Centers by next year to triple the number of taxpayers able to get in-person help and cut in half the wait time for telephone assistance. Over half of the new funding will be used for compliance enforcement, but Yellen said the added scrutiny will be directed at wealthy individuals. With improved technology, she said, “we expect audit rates for honest taxpayers to decline.”

The IRS is providing tax relief to eligible victims of Arizona severe storms that occurred July 17 and 18, 2022. Taxpaye...
09/23/2022

The IRS is providing tax relief to eligible victims of Arizona severe storms that occurred July 17 and 18, 2022. Taxpayers affected by the storms that reside or have a business in the Salt River Pima-Maricopa Indian Community now have until Nov. 15, 2022, to file returns and pay any taxes originally due during the relief period. This covers all returns normally due on or after July 17 and before Nov. 15 including: 1) quarterly estimated income tax payments; 2) quarterly payroll and excise tax returns; and 3) individual and business returns with valid extensions. To learn more: https://bit.ly/3U0RRLT

With control of both the Senate and the House of Representatives at stake in November’s midterm election, the fate of so...
09/22/2022

With control of both the Senate and the House of Representatives at stake in November’s midterm election, the fate of so-called “tax extenders” may depend on the election’s outcome. However, inserting tax extenders into a continuing resolution to fund federal programs into fiscal year 2023, which begins Oct. 1, at the same levels appropriated for 2022 would fit a recent pattern for lawmakers. Congress could also decide to attach tax extenders legislation to the Enhancing American Retirement Now (EARN) Act or the Secure Act 2.0. Stay tuned.

Tax-exempt organizations take note: Some of your tax data may have been publicly exposed. On Sept. 2, the IRS admitted i...
09/22/2022

Tax-exempt organizations take note: Some of your tax data may have been publicly exposed. On Sept. 2, the IRS admitted it erroneously released some Form 990-T information via its Tax Exempt Organization Search (TEOS) tool. Form 990-T is used by not-for-profits to report income unrelated to their exempt purpose. Fortunately, the disclosed information didn’t include Social Security numbers, detailed accountholder data or individual tax return data. However, it did include some individual names and business contact information. The IRS says it has removed the data from the TEOS tool and will be contacting all affected filers.

Here are some important 4th quarter tax-filing dates for businesses. OCT. 17: If you’re the owner or operator of a calen...
09/20/2022

Here are some important 4th quarter tax-filing dates for businesses. OCT. 17: If you’re the owner or operator of a calendar-year C corp. which filed an extension, file a 2021 income tax return. OCT. 31: Report income tax withholding and F**A taxes for Q3 2022 (unless you’re eligible for a Nov. 10 deadline because you deposited on time and in full all of the associated taxes due). DEC. 15: If a calendar-year C corp., pay the fourth installment of 2022 estimated income taxes. Note: Certain deadlines may be postponed in federally declared disaster areas. We can provide more information about filing requirements and ensure you’re meeting all applicable deadlines.

If you requested an extension from the IRS to file your 2021 tax return, the Oct. 17 deadline is coming up soon. Taxpaye...
09/19/2022

If you requested an extension from the IRS to file your 2021 tax return, the Oct. 17 deadline is coming up soon. Taxpayers who asked for an extension should file on or before the deadline to avoid a late-filing penalty. Although Oct. 17 is the last day for most people to file, certain taxpayers may have more time. They include military members and others serving in a combat zone. They typically have 180 days after they leave the combat zone to file returns and pay any taxes due. Also, taxpayers in federally declared disaster areas who already had valid extensions are given more time. Contact us right away to prepare your return to avoid penalties and claim any refund due.

If you’re a “gig worker” or freelancer, your tax obligations are different from an employee’s. You’re considered self-em...
08/19/2022

If you’re a “gig worker” or freelancer, your tax obligations are different from an employee’s. You’re considered self-employed, so clients don’t withhold taxes from your payments. But even if they don’t send you information returns (such as Form 1099-K), you owe tax on that income. Gig workers may have to pay quarterly estimated taxes. Or, if you also have a job as an employee, you can have your employer withhold more tax from your paychecks. Keep in mind that you may be able to deduct business expenses for gig work, which can lower your income tax liability. It’s essential to keep good records. More information: https://bit.ly/3IFLh8v

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200 E. 16th Street Suite #200
Yuma, AZ
85364

Opening Hours

Monday 8am - 5pm
Tuesday 8am - 5pm
Wednesday 8am - 5pm
Thursday 8am - 5pm
Friday 8am - 5pm

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+19287269470

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With CPAs who have been serving the Yuma community since 1979, Shippen, Pope & Associates, PLLC is a trusted advisor for business and individual clients. We work with our clients and help them understand their financial statements. We work and support the business owner and accounting staff so that the company records are current and meaningful. A business needs current financial data in order to make the necessary changes to overcome the day to day business challenges due to changes in tax law, business regulations, competition, economic conditions, and political environment.