Integrity Tax and Accounting Firm

10/16/2024

The amount of love that has come from family, friends and my small community is absolutely AMAZING.

Our office has teamed up with Chamber's County Sheriff's department to bring aid to NC, TN and FL.

I want to personally thank everyone for not losing your humanity in the world we live in today.

God is incredibly good!!!

God blesses those who bless others 🙏

10/07/2024

We are taking donations from 10/7-10/18. There are many towns west of Ashville that have yet to receive any assistance from FEMA. We will be renting a uhual to deliver items to those who so desperately need them. If you would like to donate you can call our office at 281-954-3223.

08/07/2024

Employer-offered educational assistance programs can help pay for college
An educational assistance program is an employer’s written plan to provide employees with undergraduate or graduate-level educational assistance. These programs allow employers to pay student loan debt and other education expenses tax-free.
Eligible expenses
Educational assistance programs can help pay for:
• Books
• Equipment
• Supplies
• Tuition and other fees
• Qualified education loans
Loan payments
These programs can be used to pay principal and interest on an employee's qualified education loans.
The option is available only for payments made after March 27, 2020. Under current law, this option will be available until Dec. 31, 2025.
Payments made directly to the lender and those made to the employee qualify under these programs. By law, tax-free benefits under an educational assistance program are limited to $5,250 per employee per year. Normally, assistance provided above that level is taxable as wages.
For other requirements, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Chapter 10 in Publication 970, Tax Benefits for Education, provides details on what qualifies as a student loan.

More information
Frequently asked questions about educational assistance programs
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08/07/2024

Issue Number: IR-2024-202
Inside This Issue
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Department of Treasury and IRS release Inflation Reduction Act clean energy statistics
WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued statistics on the Inflation Reduction Act clean energy tax credits for tax year 2023.
The Inflation Reduction Act, or IRA, extended and expanded tax credits that allow taxpayers to claim residential and energy efficient home energy credits.
Taxpayers have claimed more than $6 billion in credits for residential clean energy investments—which include solar electricity generation, solar water heating and battery storage—and more than $2 billion for energy efficient home improvements — which include heat pumps, efficient air conditioners, insulation, windows and doors — on 2023 tax returns filed and processed through May 23, 2024.
Residential and Energy Efficient Home Improvement Credit
Credit Number of returns
Credit value
Residential Clean Energy Credit 1,246,440 Total: $6.3 billion, Average per return: $5,084
Rooftop solar 752,300 Up to 30% of cost
Batteries 48,840 Up to 30% of cost

Energy Efficient Home Improvement Credit 2,338,430 Total: $2.1 billion, Average per return: $882
Home insulation 669,440 Up to 30% of costc
Windows and skylights 694,450 Up to 30% of cost or $600c
Central air conditioners 488,050 Up to 30% of cost or $600c
Doors 400,070 Up to 30% of cost, $250 per door, or $500 total
Heat pumps 267,780 Up to 30% of cost or $2,000
Heat pump water heaters 104,180 Up to 30% of cost or $2,000

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07/30/2024

Issue Number: 2024-19
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Withholding agents: What is a partial suspension of U.S. – Russia income tax treaty?
On June 21, 2024, Announcement 2024-26 (.pdf 48.30 KB) was issued providing notice of the partial suspension of the U.S. – Russia income tax treaty. The suspension will take effect both for taxes withheld at source and in respect of other taxes on August 16, and will continue until otherwise decided by the two governments.

Why is this important for withholding agents?

The partial suspension of the treaty will require withholding agents to start withholding at the statutory 30% withholding tax rate on payments of U.S. source income made on or after August 16, to recipients that may have previously claimed treaty benefits under the U.S. - Russia income tax treaty. As such, withholding agents should review their payment systems and make the necessary adjustments to ensure they are withholding at the right rate to avoid liability for failure to withhold at the correct rate.

For more guidance, please read Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.
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Thank you for subscribing to FATCA News & Information, an IRS e-mail service. For more information on federal taxes please visit IRS.gov.

07/29/2024

Issue Number: Tax Tip 2024-63
Beware of scammers posing as the IRS
Identity thieves may try to contact taxpayers through fraudulent calls, emails, texts and social media messages pretending to be the IRS. Here’s how taxpayers know when it’s the IRS that contacts them.
Email, text and social media
The IRS will mail a letter or notice before calling or emailing. The IRS does not:
• Send unexpected or unsolicited text messages to taxpayers.
• Initiate contact with taxpayers by email, text message or through social media.
• Send messages that ask for personal or financial information, especially when it comes to a tax refund.
Common IRS-related online scams include:
• Phishing emailssent to taxpayers.
• Fake IRS social media accounts that contact taxpayers about a fake bill, grant or refund.
• Text messages sent to taxpayers for fake "tax credits" or "stimulus payments."
Scammers’ messages often direct taxpayers to click fraudulent links they claim are IRS websites or other online tools.
Phone calls
After mailing a notice or letter to a taxpayer, IRS agents may call to confirm an appointment or discuss items for a scheduled audit. Taxpayers should know that:
• The IRS doesn't leave pre-recorded, urgent or threatening messages. Scammers will tell victims that if they do not call back, a warrant will be issued for their arrest. These calls are scams.
• Private collection agencies that the IRS works with may call taxpayers to collect certain outstanding inactive tax liabilities, but only after sending written notice to the taxpayer and their representative.
• The IRS and its authorized private collection agencies will never ask a taxpayer to pay using any form of pre-paid card, store or online gift card. Taxpayers can review the IRS payments page at IRS.gov/payments for all legitimate ways to make a payment.
Letters and notices
A letter or notice is usually the first contact a taxpayer gets from the IRS contacts. If a taxpayer gets a suspicious letter or notice, they can check to see if it's really the IRS:
• Log in to their secure IRS Online Account to find a copy of the notice or letter.
• Contact IRS customer service to verify it, if they weren't able to do so in their Online Account.
• Review IRS letters and notices at Understanding Your IRS Notice or Letter.
• Confirm that collection notices from a private collection agency have the same Taxpayer Authentication Number as the Notice CP40 the taxpayer received from the IRS.
• Visit Private Debt Collection Frequently Asked Questions to learn more about verifying a private collection agency.
Warning signs of a scam
If taxpayers get an unexpected letter, email or text that claims to be from the IRS or another trusted source – like a bank, a credit company or a tax software provider – here are some tell-tale signs that it’s a scam:
• Spelling errors or incorrect grammar.
• A link or attachment that with a slightly misspelled URL or an unusual one such as irs.com. All IRS links go to irs.gov.
• A threatening or urgent request to pay now, to follow a link or to open an attachment.
Taxpayers who receive a request from IRS in the mail or by phone can always contact IRS customer service to authenticate it.

02/05/2024

Texas Governor Greg Abbot has declared February 4th-10th Enrolled Agents Week!

12/06/2023

Just a reminder!!📢📢

The IRS will NEVER call you, they will NEVER send you an email!!
Please keep this in mind if you start receiving emails stating you need to send them a copy of your tax return in order for them to send you your refund. This seems to be a new tactic of scammers to get you to send them your information.

12/04/2023

Mont Belvieu Christmas on the Hill parade 2023! We had a blast Mont Belvieu Area Chamber of Commerce

11/29/2023

Clean energy credits:
What you need to know about elective pay
Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). The IRA allows governmental entities to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable.
How do I make an elective pay election?
The elective payment election is made on your annual tax return in the manner prescribed by the IRS, along with any form required to claim the relevant tax credit (source credit forms), a completed Form 3800, General Business Credit (or its successor), and any additional information, including supporting calculations, required in instructions to the relevant forms. Making an elective payment election requires completing multiple steps, including completing the required pre-filing registration process.
The term annual tax return includes:
1. for any person normally required to file an annual tax return with the IRS, such annual return (including Form 990-T for organizations with unrelated business income tax or a proxy tax under section 6033(e));
2. for any person that is not normally required to file an annual tax return with the IRS (such as taxpayers located in the territories), the return they would be required to file if they were not located in the territories, or, if no such return is required (such as for State, local, or Indian tribal governmental entities), the Form 990-T Exempt Organization Business Income Tax Return; and
3. for short tax year filers, the short year tax return.
Electronic return filing is strongly encouraged.
Each entity making an elective payment election must have a unique EIN. More information about applying for an EIN is available at IRS.gov/ein.
How do I determine the taxable year?
Check the instructions for the annual tax return you are filing. For example, for tax-exempt entities filing Form 990-T, the return must be filed using the organization's established annual accounting period. If the organization has no established accounting period, file the return on the calendar-year basis.
How do I timely file my return?
An elective payment election may only be made on an original, timely filed return (including extensions). This means the deadline is the due date (including extensions of time) for the tax return for the taxable year for which the election is made. For most tax exempt and government entities including Indian tribal governments this is generally 4.5 months (for example, May 15 for a calendar year taxpayer) (or up to 10.5 months with extensions) after the end of the entity's tax year.
An original return includes a superseding return filed on or before the due date (including extensions). No election is permitted to be made on an amended return or by filing an administrative adjustment request under section 6227 of the Code. There is no relief available under §§ 301.9100-1 through 301.9100-3 of the Procedure and Administration Regulations (26 CFR part 301) for an elective payment election that is not timely filed.
Subject to future guidance, an automatic paperless six-month extension from the original due date is deemed to be allowed for entities for which no Federal income tax return is required under sections 6011 or 6033(a) of the Code.
Additional information about Clean Energy Credits can be found at IRS.gov/cleanenergy
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If you have a technical or procedural question relating to government entities, please visit IRS.gov/fslg.
For employment tax and account related questions, call the Business and Specialty Tax Line at 800-829-4933.

Determine your eligibility and apply online for an employer identification number (EIN).

11/21/2023

Issue Number: IR-2023-221
Inside This Issue
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IRS announces delay in Form 1099-K reporting threshold for third-party platform payments for 2023; plans for a threshold of $5,000 in 2024 to phase in implementation
WASHINGTON — Following feedback from taxpayers, tax professionals and payment processors and to reduce taxpayer confusion, the Internal Revenue Service today released Notice 2023-74 announcing a delay of the new $600 Form 1099-K reporting threshold for third-party settlement organizations for calendar year 2023.
As the IRS continues to work to implement the new law, the agency will treat 2023 as an additional transition year. This will reduce the potential confusion caused by the distribution of an estimated 44 million Forms 1099-K sent to many taxpayers who wouldn’t expect one and may not have a tax obligation. As a result, reporting will not be required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023.

Given the complexity of the new provision, the large number of individual taxpayers affected and the need for stakeholders to have certainty with enough lead time, the IRS is planning for a threshold of $5,000 for tax year 2024 as part of a phase-in to implement the $600 reporting threshold enacted under the American Rescue Plan (ARP).
Following feedback from the tax community, the IRS is also looking to make updates to the Form 1040 and related schedules for 2024 that would make the reporting process easier for taxpayers. Changes to the Form 1040 series – the core tax form for more than 150 million taxpayers – are complex and take time; delaying changes to tax year 2024 allows for additional feedback.
“We spent many months gathering feedback from third-party groups and others, and it became increasingly clear we need additional time to effectively implement the new reporting requirements,” said IRS Commissioner Danny Werfel. “Taking this phased-in approach is the right thing to do for the purposes of tax administration, and it prevents unnecessary confusion as we continue to look at changes to the Form 1040. It’s clear that an additional delay for tax year 2023 will avoid problems for taxpayers, tax professionals and others in this area.”
The ARP required third party settlement organizations (TPSOs), which include popular payment apps and online marketplaces, to report payments of more than $600 for the sale of goods and services on a Form 1099-K starting in 2022. These forms would go to the IRS and to taxpayers and would help taxpayers fill out their tax returns. Before the ARP, the reporting requirement applied only to the sale of goods and services involving more than 200 transactions per year totaling over $20,000.
The IRS temporarily delayed the new requirement last year.
Reporting requirements do not apply to personal transactions such as birthday or holiday gifts, sharing the cost of a car ride or meal, or paying a family member or another for a household bill. These payments are not taxable and should not be reported on Form 1099-K.
However, the casual sale of goods and services, including selling used personal items like clothing, furniture and other household items for a loss, could generate a Form 1099-K for many people, even if the seller has no tax liability from those sales.
This complexity in distinguishing between these types of transactions factored into the IRS decision to delay the reporting requirements an additional year and to plan for a threshold of $5,000 for 2024 in order to phase in implementation. The IRS invites feedback on the threshold of $5,000 for tax year 2024 and other elements of the reporting requirement, including how best to focus reporting on taxable transactions.
“The IRS will use this additional time to continue carefully crafting a way forward to minimize burden,” Werfel said. “We want to make this as easy as possible for taxpayers. We will work to make the new reporting requirements easier for them, and we’ll work closely with third-party groups, tax professionals and others to find the smoothest path to ensure compliance with the law. This is consistent with our Strategic Operating Plan. The IRS is focused on meeting taxpayers where they are and helping them get it right the first time.”
Expanded information reporting, which will occur as the result of the change in thresholds for Form 1099-K, is important because it increases tax compliance and can reduce burden on taxpayers seeking to follow the law. The IRS believes that expansion must be managed carefully to help ensure that Forms 1099-K are issued only to taxpayers who should receive them. In addition, it's important that taxpayers understand what to do as a result of this reporting, and that tax professionals and software providers have the information they need to assist taxpayers.
The IRS will continue to provide information on IRS.gov/1099Khttps://www.irs.gov/1099K.
Fact Sheet 2023-27 contains more details about this announcement.

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11/07/2023

Are you or someone you know looking for Christmas Assistance? Integrity Tax and Accounting Firm is looking to adopt a few families for 2023 Christmas. To enter, please fill out the Google Form below:

Integrity Tax and Accounting Firm wants to adopt your family for Christmas 2023! We only have a few spots to fill so please be as descriptive as possible. If your family is picked we will contact you and get a few more details.