Rickey W Dill CPA PC

Rickey W Dill CPA PC Our mission is to provide the highest quality professional accounting and consulting services.

We continually strive to provide outstanding customer service for each and every one of our valued clients.

01/25/2026

Due to the inclement weather and concern for the safety of our clients, the office will be closed Monday January 26th. Please be safe!!

05/07/2025

For 2025, The IRS introduces a new requirement that certain energy-efficient home improvements will need product identification numbers to qualify for tax credits. This system is designed to verify that products meet the efficiency standards required for the tax credits.

Specifically:

Manufacturers will need to register qualifying products in a Department of Energy database

Products will receive unique identification numbers

Homeowners will need these ID numbers when claiming the tax credit (Energy Efficient Home Improvement Credit) on their 2025 tax returns

This applies to windows, doors, insulation, HVAC systems, water heaters, and other qualifying improvements

The ID system is specifically for items that have clear manufacturer specifications and performance ratings that can be verified through a database. The Department of Energy is developing this database in collaboration with manufacturers to implement this requirement for the 2025 tax year.

When making energy-efficient home improvements in 2025 you will want to confirm with manufacturers or retailers that their products have the required identification numbers before purchase.

03/24/2025

BENEFICIAL OWNERSHIP INFORMATION (BOI) REPORTING REQUIREMENTS AMENDED TO INCLUDE FOREIGN COMPANIES ONLY

The government on Friday March 21st significantly narrowed the scope of beneficial ownership information (BOI) filing requirements to foreign entities only, formalizing a move the Treasury Department previewed earlier this month.

The Financial Crimes Enforcement Network (FinCEN) issued an interim final rule that removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act (CTA), P.L. 116-283, passed by Congress in 2021.

The rule revises the definition of “reporting company” to mean only those entities that are formed under the law of a foreign country and that have registered to do business in any U.S. state or tribal jurisdiction by the filing of a document with a secretary of state or similar office (formerly known as “foreign reporting companies”). FinCEN also exempts entities previously known as “domestic reporting companies” from BOI reporting requirements.

In addition, the rule exempts foreign reporting companies from having to report the BOI of any U.S. persons who are beneficial owners of the foreign reporting company and exempts U.S. persons from having to provide such information to any foreign reporting company for which they are a beneficial owner.

The new rule also delays by 30 days the filing deadline for foreign entities that were registered to do business in the U.S. before Friday.

Thank you to Judy Besler with Farmers Insurance for providing each of us our own Tax Season Survival Kit!! It brought s...
02/06/2025

Thank you to Judy Besler with Farmers Insurance for providing each of us our own Tax Season Survival Kit!! It brought smiles to all of us, and will be put to good use!

11/18/2024

Increased business penalties and fines for incorrect 1099 or W-2 filing due in 2025.

For 1099 and W-2 forms (information returns) filed for tax year 2024 due between January 1, 2025 and December 31, 2025 you could be fined:

* $60 per information return return if you correctly file within 30 days of the deadline.

*$130 per information return if you correctly file more than 30 days after the due date, but before August 1st.

* Intentional disregard of filing requirements - If any failure to file a correct information return is due to intentional disregard of the filing or correct information requirements the penalty is at least $660 per information return.

09/24/2024

The special per diem rates that a taxpayer may use in substantiating travel and business expenses under the per diem substantiation method (set out in Rev. Proc. 2019-48) will be higher starting Oct. 1, as provided by the IRS in Notice 2024-68.

Generally, under the per diem substantiation method, if an employer or other payer pays a per diem allowance in lieu of reimbursing an employee's actual expenses for lodging, meals, and incidental expenses, the amount deemed substantiated for each calendar day is the lesser of the allowance amount for that day or the amount computed under federal per diem rates for the place of travel within the continental United States (CONUS).

A separate federal rate applies to per diem allowances just for meals and incidental expenses (M&IE). Taxpayers using the rates and the list of localities in Notice 2024-68 must comply with the rules for the per diem substantiation method in Rev. Proc. 2019-48.
High-low substantiation method rates

The high-low substantiation method applies a higher rate to designated high-cost localities and a lower rate to all other localities. The annual update includes the per diem rate under the high-low substantiation method for travel within CONUS.

The rate for travel to high-cost localities within CONUS is $319, and the rate for non-high-cost localities will be $225. The current rates for the period Oct. 1, 2023, to Sept. 30, 2024, are, respectively, $309 and $214. The portion of the rates treated as paid for meals for purposes of Sec. 274(n) will also be higher: $86 for high-cost CONUS localities and $74 for all other CONUS localities.

The notice revised the list of high-cost localities for the upcoming new annual period (Oct. 1, 2024, to Sept. 30, 2025) for which the new rates are in effect. High-cost localities have a federal per-diem rate of $272 or more. Los Angeles has been added to the list of high-cost localities for the new period after it was removed from the high-cost list last year.
Transportation industry rates

The notice also provides special rates for taxpayers in the transportation industry. The meals and incidental expenses rates are $80 for any locality of travel within CONUS and $86 for localities of travel outside CONUS, both the same as the current rates.

The rate for incidental expenses remains $5 per day for travel in and outside CONUS.

07/03/2023

IRS warn taxpayers of new scam; unusual delivery service mailing tries to trick people into sending photos, bank account information.

The Internal Revenue Service warned taxpayers today to be on the lookout for a new scam mailing that tries to mislead people into believing they are owed a refund.
The new scheme involves mail coming in a cardboard envelope from a delivery service. The enclosed letter includes the IRS masthead and wording that the notice is “in relation to your unclaimed refund.”
Like many scams, the letter includes contact information and a phone number that do not belong to the IRS. But it also seeks a variety of sensitive personal information from taxpayers – including detailed pictures of driver’s licenses – that can be used by identity thieves to try obtaining a tax refund and other sensitive financial information.
“This is just the latest in the long string of attempts by identity thieves posing as the IRS in hopes of tricking people into providing valuable personal information to steal identities and money, including tax refunds,” said IRS Commissioner Danny Werfel. “These scams can come in through email, text or even in special mailings. People should be careful to watch out for red flags that clearly mark these as IRS scams.”
In this new scam, there are many warning signs that can be seen in many similar schemes via email or by text. An unusual feature of this scam is that it tries tricking people to email or phone very detailed personal information in hopes of stealing valuable information.
The letter tells the recipients they need to provide “Filing Information” for their refund. This includes some awkwardly worded requests like this:
“A Clear Phone of Your Driver’s License That Clearly Displays All Four (4) Angles, Taken in a Place with Good Lighting.”
The letter proceeds for more sensitive information including cellphone number, bank routing information, Social Security number and bank account type, followed by a poorly worded warning:
“(You’ll Need to Get This to Get Your Refunds After Filing. These Must Be Given to a Filing Agent Who Will Help You Submit Your Unclaimed Property Claim. Once You Send All The information, Please Try to Be Checking Your Email for Response From The Agents Thanks”
This letter contains a variety of warning signs, including odd punctuation and a mixture of fonts as well as inaccuracies.
For example, the letter says the deadline for filing tax refunds is Oct. 17; the deadline for people on extension for their 2022 tax returns is actually Oct. 16, and those owed refunds from last year have time beyond that. And the IRS handles tax refunds, not “unclaimed property.”
The IRS never initiates contact with taxpayers by email, text or social media regarding a bill or tax refund.
As a reminder: Never click on any unsolicited communication claiming to be the IRS as it may surreptitiously load malware. It may also be a way for malicious hackers to load ransomware that keeps the legitimate user from accessing their system and files.
Individuals should never respond to tax-related phishing or smishing or click on the URL link. Instead, the scams should be reported by sending the email or a copy of the text/SMS as an attachment to [email protected]. The report should include the caller ID (email or phone number), date, time and time zone, and the number that received the message.
Taxpayers can also report scams to the Treasury Inspector General for Tax Administration or the Internet Crime Complaint Center. The Report Phishing and Online Scams page at IRS.gov provides complete details. The Federal Communications Commission's Smartphone Security Checker is a useful tool against mobile security threats.
The IRS also warns taxpayers to be wary of messages that appear to be from friends or family but that are possibly stolen or compromised email or text accounts from someone they know. This remains a popular way to target individuals and tax preparers for a variety of scams. Individuals should verify the identity of the sender by using another communication method; for instance, calling a number they independently know to be accurate, not the number provided in the email or text.

12/20/2021

The IRS announced Friday the rate by which taxpayers may compute their deductions for costs of using an automobile for business purposes will go up to 58.5 cents per mile for the 2022 tax year, an increase of 2.5 cents per mile over the 2021 rate. Taxpayers may use the business standard mileage rate for their use of an automobile as an ordinary and necessary business expense or they may claim actual allowable expense amounts if they substantiate the expenses.

06/30/2021

IRS Portal For Bank Accounts Now Available

The Internal Revenue Service today upgraded a key online tool to enable families to quickly and easily update their bank account information so they can receive their monthly Child Tax Credit payment.

The bank account update feature was added to the Child Tax Credit Update Portal, available only on IRS.gov. Any updates made by Aug. 2 will apply to the Aug. 13 payment and all subsequent monthly payments for the rest of 2021.

Families will receive their July 15 payment by direct deposit in the bank account currently on file with the IRS. Those who are not enrolled for direct deposit will receive a check. The IRS encourages people without current bank account information to use the tool to update their information so they can get the payments sooner.

The IRS also urges people to be on the lookout for scams related to the Child Tax Credit. People who need to update their bank account information should go directly to the IRS.gov site and not click on links received by email, text or phone.

06/29/2021

IMPORTANT CHANGES TO THE CHILD TAX CREDIT

As part of the American Rescue Plan Act that was enacted in March 2021, the child tax credit:
• Amount has increased for certain taxpayers
• Is fully refundable (meaning you can receive it even if you don’t owe the IRS)
• May be partially received in monthly payments

The new law also raised the age of qualifying children to 17 from 16, meaning some families will be able to take advantage of the credit longer.

The IRS will pay half the credit in the form of advance monthly payments beginning July 15. Taxpayers will then claim the other half when they file their 2021 income tax return.

Though these tax changes are temporary and only apply to the 2021 tax year, they may present important cashflow and financial planning opportunities today. It is also important to note that the monthly advance of the child tax credit is a significant change. The credit is normally part of your income tax return and would reduce your tax liability. The choice to have the child tax credit advanced will affect your refund or amount due when you file your return. Planning now can help to avoid any surprises when the 2021 tax return is filed next year.

The child tax credit and advance payments are based on several factors, including the age of your children and your income.
• The credit for children ages five and younger is up to $3,600 –– with up to $300 received in monthly payments.
• The credit for children ages six to 17 is up to $3,000 –– with up to $250 received in monthly payments.

To qualify for the child tax credit monthly payments, you (and your spouse if you file a joint tax return) must have:
• Filed a 2019 or 2020 tax return and claimed the child tax credit or given the IRS your information using the non-filer tool
• A main home in the U.S. for more than half the year or file a joint return with a spouse who has a main home in the U.S. for more than half the year
• A qualifying child who is under age 18 at the end of 2021 and who has a valid Social Security number
• Income less than certain limits

You can take full advantage of the credit if your income (specifically, your modified adjusted gross income) is less than $75,000 for single filers, $150,000 for married filing jointly filers and $112,500 for head of household filers. The credit begins to phase out above those thresholds.

Before the end of June, the IRS states they will have an update portal available on IRS.gov which will allow changes to an account including adding dependents not listed on the 2020 tax return or changing bank deposit information, or opting out of receiving the advanced credit.

With any tax law change, it’s important to revisit your full financial roadmap. We can help you determine how much credit you may be entitled to and whether advance payments are appropriate. How you choose to receive the credit (partially advanced via monthly payments or solely on your next year’s return) could have many impacts to your financial plans.

08/31/2020

On September 1st, the payroll tax deferral called for by President Trump’s Executive Order becomes effective. The Executive Order suspends the collection of the 6.2% Social Security tax for employees with biweekly pre-tax income of less than $4,000 IF the employer participates in the withholding deferral.
There are several questions still not answered about the Executive Order, but as of now, employers are not required to participate.
One point to make clear, this is a deferral of taxes, NOT a tax holiday. If an employee defers the tax from September 1, 2020 thru December 31, 2020, they will repay the deferred tax through prorated payroll withholding between January 1, 2021 thru April 30, 2021. The net effect is that while take-home pay will be greater this year, next year’s take-home pay will be less until the deferred tax has been paid.

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