Dadeboe Tax - Accounting & Consulting

01/13/2023

It's almost that time of year...

IR-2023-05, January 12, 2023 — The Internal Revenue Service today announced Monday, January 23, 2023, as the beginning of the nation's 2023 tax season when the agency will begin accepting and processing 2022 tax year returns.

04/18/2022

Happy Tax Day!

Remember to file your return or an extension today to avoid a costly Failure to File Penalty. 😊

04/26/2021

TLDR: The IRS is REALLY busy.

1. Don't mail anything to the IRS unless absolutely necessary ("In total, the IRS is now holding over 29 million returns for manual processing").

2. The IRS probably won't pick up the phone ("As of April 10, 2021, IRS employees have answered about two percent of the roughly 70 million taxpayer calls to the IRS’s 1040 telephone line and the IRS has reported an official “Level of Service” of five percent. In other words, only about one out of every 50 calls has gotten through to a telephone assistor, and the taxpayers who managed to get through have waited on hold an average of 20 minutes").

Over the years, the IRS has gotten quite good at processing tax returns and issuing refunds quickly and efficiently. The IRS website says that normal processing time for an electronically filed return is 21 days, but in reality, millions of taxpayers receive their refunds even quicker — sometimes ...

03/19/2021

The federal tax filing and payment deadlines have been extended, but make sure your state deadlines have also changed.

The IRS has extended the 2021 federal tax deadline to May 17, but state tax deadlines are still up to each state. Here are the state tax deadlines announced so far for 2021.

03/17/2021

I can help if you need assistance determining your qualification and applying for a PPP loan.

The U.S. House of Representatives voted 415-3 Tuesday night to extend the Paycheck Protection Program application deadline by 60 days. The PPP Extension Act of 2021 moves the PPP application deadline from March 31 to May 31 and allots an additional 30 days for processing applications received by May...

03/11/2021

This is a well-written and concise summary of the important tax changes resulting from the American Rescue Plan Act.

If you received unemployment benefits in 2020 and have already filed your return, an amended return may be in your future. If you received unemployment benefits and have not filed your return, discuss whether waiting is your best approach with your tax professional. Once the President signs the bill, Treasury has to determine how to handle the change, then tax preparation software providers have to update their software to account for it.

Finally, it's doubtful that the April 15th personal income tax filing deadline will remain with all these changes.

The $1.9 trillion coronavirus relief bill that passed Congress contains many tax provisions, including changes to the child tax credit and many other credits, making certain unemployment benefits tax-free in 2020, and a $1,400 recovery rebate credit for many individuals.

01/19/2021

🥳The IRS announced it will begin accepting returns on February 12, 2021! Dadeboe Tax can get you ready to file on day one!

04/27/2020

The IRS has enhanced the Economic Impact Payment Tool. If you or someone you know is eligible to receive a payment but has not, please visit the site and enter your information again. The site now has the ability for you to enter your account information for direct deposit. Direct deposit is the fastest way to receive your payment.

Please share this and spread the word.

Use Get My Payment to get information about your payment status and payment type.

04/10/2020

The IRS launched a method to allow individuals who are not required to file returns with the IRS to provide their information to receive their Economic Impact Payment.

Do NOT use this if you fall into one of the following categories:
1. You receive Social Security, Railroad Retirement, or SSDI benefits. The IRS will automatically [direct deposit or] send you an Economic Impact Payment.

2. You have already filed a 2019 federal income tax return.

3. Your 2019 gross income exceeded $12,200 ($24,400 for a married couple) or other reasons require you to file a 2019 federal tax return.

4. You were married at the end of 2019 and are not submitting information here with your spouse.

5. You were not a U.S. citizen or U.S. permanent resident in 2019.

Steps to receive the Economic Impact Payment if you haven't filed a tax return for 2018 or 2019, and aren't receiving Social Security, SS Disability Income or Railroad Retirement benefits. This payment is also referred to as "stimulus checks" or "coronavirus relief."

04/03/2020

Given the number of job losses that have already occurred, and the ones we can anticipate are coming, I wanted to share this. The CARES Act (“Coronavirus stimulus law”) enacts the following changes to early distributions (with effective dates of January 1, 2020, to December 31, 2020) and loans (with effective dates of March 27, 2020, to December 31, 2020) from qualified employer-sponsored and IRA retirement accounts:

1. Allows withdrawals up to $100,000 without the normal 10% penalty tax.

2. Allows participants to take the full amount of their vested benefit as a loan. Normally, the loan amount is limited to 50% of the vested balance.

3. Allows up to three years for an individual to complete an IRA rollover before the funds are subject to tax. Normally, the allotted time is 60 days.

4. Increases maximum loan amounts from $50,000 to $100,000.

5. Spreads the recognition of taxable income from early withdrawals over three years. For example, if you withdraw $99,000 from a qualified account for reasons related to COVID-19 and you elect to or are unable to repay any of it, you would recognize tax on $33,000 of income in the subsequent three years, instead of all $99,000 in one year.

6. Loan repayments will have a one-year grace period from the initial date of the loan during which you are not required to make payments.

7. The loan repayment period is extended from three to five years.

I should add that any decision to withdraw funds from accounts meant for your retirement is a serious and delicate matter that should be treated as such. Consider reasonable and safe ways to reduce expenses or supplement your income. However, if those reasonable and safe actions are not enough, the temporary changes in the law may lessen the sting of using your funds.

03/25/2020

A helpful initiative being rolled out by the IRS.

One section of note:
Non-Filers –The IRS reminds people who have not filed their return for tax years before 2019 that they should file their delinquent returns. More than 1 million households that haven't filed tax returns during the last three years are actually owed refunds; they still have time to claim these refunds. Many should consider contacting a tax professional to consider various available options since the time to receive such refunds is limited by statute. Once delinquent returns have been filed, taxpayers with a tax liability should consider taking the opportunity to resolve any outstanding liabilities by entering into an Installment Agreement or an Offer in Compromise with the IRS to obtain a "Fresh Start." See IRS.gov for further information.

IR-2020-59, March 25, 2020 — To help people facing the challenges of COVID-19 issues, the Internal Revenue Service announced today a sweeping series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions.

03/20/2020

You can use this link to check for updates to state tax filing deadlines. It will be updated as states make and release their decisions.

Are my state tax filing deadlines delayed because of COVID-19?