RT Tax & Consulting, LLC

02/02/2023

Colorado SecureSavings is a new retirement savings program, created by the State of Colorado. It’s an easy way to help Colorado employees save and plan for a stronger financial future.

02/02/2023

To the employers with 5 or more employees - Colorado Secure Savings is going into effect in 2023 and you must offer a retirement plan or have a plan in place already. You must register or opt out or face a fine even if you already offer a retirement plan.

Employees must register, designate options or opt out within 180 days of the hire date. If they don't opt out or make a selection contributions AUTOMATICALLY are made at 5% of your compensation to a ROTH IRA (many people make too much to contribute to a Roth IRA and contributions and earnings would have to be withdrawn or be subject to a 6% excise penalty).

More information here -
https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-updates/pages/colorado-retirement-savings-program.aspx

Registration/opt out
https://coloradosecuresavings.com/

We just received a letter about it in the mail. Employers may need their access code as well.

Colorado SecureSavings is a new retirement savings program, created by the State of Colorado. It’s an easy way to help Colorado employees save and plan for a stronger financial future.

06/09/2022

IRS changing the mileage rate July 1 to 62.5 cents.

02/13/2022

https://www.washingtonpost.com/politics/2022/02/11/irs-returns-backlog/?fbclid=IwAR3uHctY4ojBtMuc7bTqTKiRL-8bskUGaMHC41iXUyiHDU_CuIvl5w8YLRY

The estimate of the backlog keeps increasing! Plus all the Net Operating Carrybacks they are supposed to process in 90 days and amended returns that haven’t been processed.

Maybe they were essential after all and should’ve worked through Covid.

The inventory of unprocessed returns and related correspondence was provided by the IRS’s taxpayer advocate service to the tax-writing committees in Congress. The Treasury Department, the IRS’s parent agency, warned in January that it expected its response to be subpar this year.

01/31/2022

The deadline to file Forms W-2, Wage and Tax Statements, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration is January 31, 2022. Filing these documents timely helps employers avoid penalties and helps the IRS in fraud prevention.
Forms 1099-MISC, Miscellaneous Information and Forms 1099-NEC, Nonemployee Compensation are also due January 31.
The IRS and SSA encourage all employers to e-file. It’s the quickest, most accurate and convenient way to file these forms. For more information about e-filing these forms visit SSA.gov/employer.

Employer W-2 Filing Instructions & Information

01/05/2022

Keep these important papers when they arrive for preparation of your income tax returns -

COVID Tax Tip 2022-03, January 5, 2022 — The IRS started issuing information letters to advance child tax credit recipients in December. Recipients of the third round of the Economic Impact Payments will begin receiving information letters at the end of January.

12/29/2021

IRS starts sending out advance Child Tax Credit and Economic Impact Payment letters - KEEP THESE FOR TAX PURPOSES

12/20/2021

A friendly reminder the waiver of the required minimum distribution (RMD) of an IRA was only for 2020, remember to withdraw before December 31 for 2021.

12/02/2021

A reminder (not just for the holidays) - the IRS or state(s) will not call nor will they EVER request gift cards to pay your taxes.

Tax Tip 2021-178, December 2, 2021

12/01/2021

What taxpayers can do now to get ready to file taxes in 2022
There are steps people, including those who received stimulus payments or advance child tax credit payments, can take now to make sure their tax filing experience goes smoothly in 2022. They can start by visiting the Get Ready page on IRS.gov. Here are some other things they should do to prepare to file their tax return.
Gather and organize tax records
Organized tax records make preparing a complete and accurate tax return easier. They help avoid errors that lead to processing delays that slow refunds. Having all needed documents on hand before taxpayers prepare their return helps them file it completely and accurately. This includes:
• Forms W-2 from employers
• Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, distributions from a pension, annuity or retirement plan
• Form 1099-K, 1099-MISC, W-2 or other income statement for workers in the gig economy
• Form 1099-INT for interest received
• Other income documents and records of virtual currency transactions
Taxpayers should also gather any documents from these types of earnings.
Taxpayers should also keep end of year documents including:
• Letter 6419, 2021 Total Advance Child Tax Credit Payments, to reconcile advance child tax credit payments
• Letter 6475, Your 2021 Economic Impact Payment, to determine eligibility to claim the recovery rebate credit
• Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance premium tax credits for Marketplace coverage

11/08/2021

Get ready for taxes: Easy steps taxpayers can take now to make tax filing easier in 2022

IR-2021-217, Nov. 8, 2021
WASHINGTON – The Internal Revenue Service today encouraged taxpayers, including those who received stimulus payments or advance Child Tax Credit payments, to take important steps this fall to help themselves file their federal tax returns in 2022.

Planning ahead can help people file an accurate return and avoid processing delays that can slow tax refunds.

This is the first in a series of reminders to help taxpayers get ready for the upcoming tax filing season. A special page, updated and available on IRS.gov, outlines steps taxpayers can take now to prepare to file a 2021 tax return next year.

Gather and organize tax records
Organized tax records make preparing a complete and accurate tax return easier. It helps avoid errors that lead to processing and refund delays. Individuals should have all their tax information available before filing to ensure the return is complete and accurate. They should notify the IRS if their address changes and notify the Social Security Administration of a legal name change.

Remember, most income is taxable. Record keeping for individuals includes:
• Forms W-2 from employer(s)
• Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, distributions from a pension, annuity or retirement plan
• Form 1099-K, 1099-MISC, W-2 or other income statement for workers in the gig economy
• Form 1099-INT for interest received
• Other income documents and records of virtual currency transactions. Income documents can help individuals determine if they're eligible for deductions or credits. Additionally, people who need to reconcile their advance payments of the Child Tax Credit and Premium Tax Credit will need their related 2021 information. Those who received third Economic Impact Payments and think they qualify for an additional amount will need their stimulus payment and plus-up amounts to figure and claim the 2021 Recovery Rebate Credit. Taxpayers should also keep end of year documents including:
• Letter 6419, 2021 Total Advance Child Tax Credit Payments, to reconcile advance Child Tax Credit payments
• Letter 6475, Your 2021 Economic Impact Payment, to determine eligibility to claim the Recovery Rebate Credit
• Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance Premium Tax Credits for Marketplace coverage. Online Account securely provides tax account information on IRS.gov; helps provide important filing information
• Taxpayers who have an Online Account may:
• Taxpayers with questions about how to create an account or how to reset their username or password can find help at How to Register for Certain Online Self-Help Tools. Individuals should act now if they need to create an account. If they’re unable to verify their identity online, there’s a mail option they can use, but that takes longer.
• Individuals who have not set up an Online Account yet should act soon to create an account. People who have already set up an Online Account should make sure they can still log in successfully.
• Eligible individuals claiming a 2021 Recovery Rebate Credit can log in to their online account to see their Economic Impact Payment amounts so they can accurately claim the credit when they file.
• Taxpayers who access Online Account can securely gain entry to the Child Tax Credit Update Portal to see their payment dates and amounts. Taxpayers will need this information to reconcile their advance Child Tax Credit payments with the Child Tax Credit they can claim when they file their 2021 tax returns.
• View the amounts of their Economic Impact Payments
• Access Child Tax Credit Update Portal for information about their advance Child Tax Credit payments
• Approve or reject authorization requests from their tax professional
• Update their email address and opt-out/in for selected paper notice preferences

Taxpayers should make sure they’ve withheld enough tax
Individuals may want to consider adjusting their withholding if they owed taxes or received a large refund the previous year. Changing withholding can help avoid a tax bill or let individuals keep more money each payday. Life changes – getting married or divorced, welcoming a child or taking on a second job – may also be reasons to change withholding. Taxpayers might think about completing a new Form W-4, Employee's Withholding Certificate, each year and when personal or financial situations change.

People also need to consider estimated tax payments. Individuals who receive a substantial amount of non-wage income like self-employment income, investment income, taxable Social Security benefits and in some instances, pension and annuity income should make quarterly estimated tax payments. The last payment for 2021 is due on Jan. 18, 2022.

Individuals can log in to their Online Account to make a payment online or go to IRS.gov/payments.

Pay your taxes, view your account or apply for a payment plan with the IRS.

10/05/2021

Reminder - advance child tax credits may need to be repaid with your 2021 returns

COVID Tax Tip 2021-147, October 5, 2021