If you don't necessarily love doing your taxes (or have an accounting degree), you've come to the right place. Our staff can provide for your needs: taxes, small businesses, larger enterprises, and individuals – we've done them all.
So we are receiving calls and emails about the Advance Child Care Credit. Beware!!!! In some cases, you may be required to repay some or all of the credit to the IRS. BEWARE! This is your responsibility to know the rules and report income and family member changes to the IRS!!!!!
In a generic way, it is my advice you should ELECT out of this unless you read and prepare for all the different rules. If you do not elect out of receiving the advance you must keep track of how much you receive. While it is not taxable, we will have to reconcile it on the tax return for 2021. Anyone who has custody issues, divorcing, alternating years, income changes of a major amount, or tax issues different in 2021 than 2020 will be taking a major risk to not elect out. You will NOT lose any benefit you are entitled to; it just delays until you file your 2021 tax return when you will have ACCURATE information to determine the eligibility and amount. This is a terrible option and is bound to cause a lot of confusion now and when we file your 2021 tax return. Beware!!!!
Notice 2020-17; Payment relief on account of Coronavirus Disease 2019 (COVID-19) emergency. The Treasury Department and IRS are extending the due date for Federal income tax payments due April 15, 2020, to July 15, 2020, for payments due of up to $10 million for corporations and up to $1 million for individuals - regardless of filing status – and other unincorporated entities. Associated interest, additions to tax, and penalties for late payment will also be suspended until July 15, 2020.
Given the state of our country, the IRS has announced that payments for 2019 income tax for individuals.
The filing deadline for tax returns remains April 15, 2020.
Payment Relief - Individuals
Income tax payment deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment relief applies to individuals, trusts and estates. IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief.
Estimated Tax Payments
This relief also includes estimated tax payments for the tax year 2020 that are due on April 15, 2020.
Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. If a tax return or extension is filed by April 15, 2020, the taxpayer will automatically avoid interest and penalties on the taxes paid by July 15.
This relief only applies to federal income tax (including tax on self-employment income) payments otherwise due April 15, 2020, not state tax payments or deposits or payments of any other type of federal tax. State filing and payment deadlines vary and are not always the same as the federal filing deadline. We expect state tax agencies to announce any available tax relief for affected taxpayers in the coming days; some have already published these notices on their websites.
Dorinda Kisner CPA PLLC plans:
Providing West Virginia follows the same protocol and we do NOT know that yet; we will postpone preparing estimates normally due on April 15 until after the filing deadline. However, if our state does NOT follow suit; then we will discuss with you individually the possible options we have. And, if, for any reason you want us to prepare and pay them, we can entertain that possibility, but there would be no advantage to doing so. We are committed to keeping you current on any matter of importance during these trying times. Stay safe and thank you for your patience.
Did you know if you are mailing something and need PROOF you did; you can request a Certificate of Mailing? The cost is only $1.40 for a letter or can be purchased for a batch of letters. i.e. this could be used to PROVE to the IRS you mailed a certain document. A Certificate of Mailing is a receipt that provides evidence of the date that your mail was presented to the Postal Service™ for mailing. Much cheaper than registered return receipt, etc.
We are pleased to announce the addition to our staff Sarah Trottier. Sarah (Hoalcraft) Trottier grew up in Keyser, WV. She attended both Potomac State College and West Virginia University and holds a BA in Psychology. She had a 6 year career in human services that began in Terra Alta at Hopemont Hospital. Sarah went back to school at Frostburg State University for her BS in Accounting after becoming interested in the finance side of her position as Welfare to Work Coordinator for Garrett County and taking a personal enrichment course on income tax preparation. Sarah brings three tax seasons and five plus years of accounting experience to the table. She currently lives in Oakland with her husband and daughter. In her free time she enjoys hiking, yoga, reading, and photography.
Please see our tax Law updates page regarding the 199A deduction application to rentals - if you have a rental.
Sellers beware! The regs state that a 1231 gain treated as capital is excluded from the calculation of QBI, meaning that such gains are not eligible for the 20% deduction. The regs are inconsistent when it comes to the treatment of 1231 losses treated as ordinary – such losses will reduce a taxpayer’s QBI. So while 1231 gains do not qualify for the 20% deduction, losses will reduce the taxpayer’s income eligible for the 20% deduction. What a mess!
Reminder if you take mileage expenses on your tax return; it is very wise to write down your odometer reading on or around December 31 for purposes of tracking total miles used on your vehicles. We recommend this to all our clients. Remember the IRS doesn't just ask how many business miles you drove in 2018 but how many TOTAL miles you drove in 2018.
We now have the night drop box open for use and drive thru too! If we are not open when you need to drop off paperwork, please use the first lane drive thru where you will find the secure night depository. If you want to drop something off during office hours, feel free to drive thru the first lane and we will be alerted by our security system that you are present.
We issued a reminder to clients last year but this requests are resurfacing. No, any form you receive trying to charge your company money from Workplace Compliance Services is NOT required and not a government requirement. Last year I was told by the attorney general's office they were investigating this but do NOT be confused; you can download all notices you are required to have for free and you do NOT need to file, pay or complete these notices from Workplace Compliance Services. It borders on a scam the way they do this. BEWARE.
You can download the posters you need for free; don't be scammed by these mailings.
Yes you do have to poster labor laws; no you don't have to pay for them
For more recent updates please visit our
Tax Law Updates page.