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In Balance Books

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United States
Decatur, IN
In Balance Books

We are a full-service accounting office offering: business financial statements (monthly, quarterly, Decatur: 238 S 2nd St.; Decatur, IN 46733 PH: 260-724-7549.

In Balance Books has two offices serving Northeastern Indiana and Northwestern Ohio. Fort Wayne: 1010 Memorial Way Suite 103, Fort Wayne, IN 46805, PH: 260-918-3457. The owner is Patricia Rumschlag EA

05/31/2022

IRS Issues Answers to FAQ About 2021 Child Tax Credit (3/3)

Q: What happens if two different taxpayers claimed the CTC for the same qualifying child?

A: In some cases, a child meets all the IRS tests to be a qualifying child for multiple taxpayers. Generally, however, only one taxpayer may claim the child for the CTC. As a result, the IRS may reject a return because the taxpayer claimed the CTC for a child already listed on a return filed earlier by someone else. If this situation arises with your return, you will need to submit a paper return instead of filing electronically. You will then receive an IRS notice detailing next steps, so that IRS personnel can determine which taxpayer may actually claim the credit.

05/23/2022

IRS Issues Answers to FAQ About 2021 Child Tax Credit (2/3)

Q: How do I respond to a notice saying that the IRS changed the CTC amount on my return?

A: If you agree with the change made, you do not need to respond at all. However, if you believe the IRS made a mistake, you can call the number shown on the letter you received. Remember, you have the right to appeal any IRS decision.

05/16/2022

IRS Issues Answers to FAQs About 2021 Child Tax Credit (1/3)

The maximum credit amounts and income limits for the Child Tax Credit differed in 2021 from other years. In addition, many taxpayers received advance CTC payments, and had to reconcile these payments with their actual credit amount on their 2021 tax returns. The IRS recently provided information to help taxpayers who still have questions about their 2021 CTC.

Q: I filed my return electronically but made a mistake reconciling my CTC. What should I do?

A: Wait to hear from the IRS, and understand that the processing of your return may be delayed. DO NOT file an amended return. In most cases, IRS personnel will simply correct your CTC amount and adjust your refund amount or amount of tax you owe accordingly. You will receive an official IRS notice by mail that explains the change.

05/09/2022

Why Some Taxpayers May Receive IRS Letters

If the IRS needs to contact a taxpayer, the agency will generally send a letter in the mail rather than emailing or calling. Taxpayers may receive IRS letters for many reasons, including:

- The taxpayer owes tax and did not pay it with their return or set up a payment plan.
- The IRS has a question about a tax return or needs more information to process it.
- The IRS has made an adjustment to a tax return or refund amount.
- The IRS needs to verify a taxpayer's identity.

If you receive an IRS letter in the mail, do not ignore it, but also do not panic. Some IRS notices do not require the taxpayer to take any action, while others advise the taxpayer of an issue that can be readily resolved. In many cases, you will not need to respond to the letter. For example, if an IRS notice simply informs you of a minor change made to your return or your refund amount, you can just file it with your tax records for future reference.

However, if the letter asks you to provide the IRS with additional information, you should respond as quickly as possible. Pay special attention to whether the notice includes a deadline to respond. Taxpayers who fail to reply to an IRS letter by a specified deadline may face penalties or forfeit their appeal rights.

You have the right to appeal any IRS decision about your tax return or the amount of tax you owe. If you do not understand an IRS notice or believe the IRS has made an error, a tax professional can help you figure out the situation and plan your next steps.

05/02/2022

Missed the April 18 IRS Deadline? File Now to Reduce Penalties

The IRS due date for filing 2021 tax returns has passed, but taxpayers who missed the deadline still have many reasons to file as soon as possible. Both those who owe tax and those entitled to refunds will benefit from filing a 2021 return without further delay.

If you owe tax and did not request an automatic filing extension, filing your return now will minimize the late filing penalty. Even if you did request an extension, remember that the extension applies only to filing your return, not to paying your tax. By estimating how much tax you owe and paying now, you can reduce other IRS penalties and interest charges.

Some federal tax credits are also refundable, meaning that if you qualify, you may receive an IRS refund even if you owed no tax or had no tax withheld during the year. However, you generally must file a return to claim these credits and receive your refund. Common refundable credits include the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), Recovery Rebate Credit, and Child and Dependent Care Credit.

04/25/2022

Refund Scams - Did You Know?

As tax filing season ends and individuals start receiving their refunds, taxpayers should be aware of a refund scam that may be making the rounds.

The scammer starts by stealing taxpayer information through hacks, uses the stolen information to file a tax return, and then gets the refund deposited into the victim's account. They then contact the victim and pretend to be the IRS saying that it was a mistaken deposit and to return the money to them. The scammers may make threats for you to return the 'erroneous deposit' using a recorded call message, or pose as debt collection agency officials acting on behalf of the IRS.

The IRS has established procedures for taxpayers to follow in the genuine case of a mistaken refund that can be found here: https://www.irs.gov/taxtopics/tc161.

04/20/2022

Possible Reasons for 2021 IRS Tax Refund Delays

Most taxpayers who file their returns electronically and request direct deposit generally receive their IRS refunds within 21 days. However, a variety of factors can result in longer return processing times. The IRS recently reminded taxpayers of the most common causes of tax refund delays, including:

- The return was mailed on paper instead of filed electronically. Filing a paper return typically doubles the expected wait time for a refund.
- The IRS needs more information to process the return. In this case, you will generally receive an IRS letter requesting the information.
- The return did not include banking information for direct deposit, so the IRS must mail a paper check.
- The return includes a request for an Injured Spouse refund allocation.

The IRS cannot provide information about refund status until at least 21 days after a return was electronically filed, or six weeks after a paper return was mailed.

IRS Where's My Refund Tool: https://www.irs.gov/refunds.

04/14/2022

Filing Extensions and Minimizing Penalties – Did You Know?

Taxpayers who request an automatic extension to file their 2021 federal income tax returns may file anytime up until October 17th, 2022. Remember, however, that an IRS extension is only an extension to file tax returns, NOT an extension to pay any tax owed. Taxes not paid by the April 18th payment deadline may be subject to late penalties and interest charges.

Electronic payments may be made using the IRS online payment portal (link below). The IRS urges those who cannot pay what they owe at this time to pay whatever amount they can, and then apply for an installment plan to pay off the remaining balance.

You should still file your taxes, even if you can't pay, as the failure-to-file penalty may be 10 times more than the failure-to-pay penalty.

IRS Online Payment Portal: https://www.irs.gov/payments

04/11/2022

Multiple IRS Deadlines Fall on April 18th – Important Reminders

2021 INDIVIDUAL FEDERAL TAX RETURN FILING: U.S. resident individual and joint tax filers, along with U.S. citizens must file 2021 Form 1040 or 1040-SR and pay any tax due. If you cannot file your return by the deadline, request an automatic filing extension to October 17th. However, if you expect to owe tax, estimate the amount and pay it by April 18th to avoid late payment penalties.

FIRST 2022 QUARTERLY ESTIMATED TAX PAYMENTS: If you earn income and either do not pay federal taxes through paycheck withholding or do not expect your withholding to cover your 2022 tax obligations, you may need to make quarterly estimated tax payments. In particular, this requirement applies to many self-employed taxpayers and “gig economy” workers. The first quarterly estimated payments for 2022 are due on April 18th, 2022.

DEADLINE FOR 2021 IRA AND HSA CONTRIBUTIONS: You may be able to treat contributions made by April 18th to your IRA or health savings account (HSA) as 2021 contributions, provided you have not reached your 2021 contribution limit.

2021 FEDERAL TAX AND 2022 ESTIMATED TAX DEADLINES FOR CORPORATIONS: Corporations must file their 2021 federal income tax returns and pay any tax due, and also make their first 2022 estimated income tax payments, by April 18th.

The IRS urges taxpayers who cannot pay the tax they owe to file by the April 18th deadline and pay what they can. By making a payment in any amount now and setting up a payment plan, you may be able to reduce penalties and interest charges.

04/07/2022

Foreign Bank and Financial Accounts Reporting – Did You Know?

Taxpayers with foreign accounts, such as bank accounts or mutual funds, generally must disclose this information on their tax returns. In most cases, U.S. individuals, trusts, estates and businesses with foreign accounts that totaled over $10,000 any time in 2021 must also file a foreign bank accounts report, or FBAR by April 15, 2022.

The official name of the FBAR form is FinCEN Form 114, Report of Foreign Bank and Financial Accounts. FinCEN stands for the Financial Crimes Enforcement Network, a separate agency from the IRS. You must submit the FBAR directly to FinCEN – you cannot file it with your tax return. The standard FBAR filing deadline is April 15, although filers typically qualify for an automatic extension to October 15.

04/04/2022

Tax Refund Myths – Did You Know?

There can be uncertainty around the timeline for receiving IRS tax refunds. Here are a few common questions related to these myths, along with real-world answers.

Q: Can I get a more accurate refund date by calling the IRS or my tax return preparer?
A: No. The IRS Where's My Refund online portal (link below) and the IRS2Go app provide the most accurate information available on the timeline for your tax refund.

Q: Can I find out my refund date by ordering a tax transcript from the IRS?
A: This popular myth is false. Use the Where's My Refund portal or IRS2Go app to get an estimated date for your refund.

Q: The Where's My Refund Portal or IRS2Go app does not show a refund deposit or mailing date. Does this mean that the system is not working?
A: Generally, if these sources cannot provide a refund date, it just means that the IRS has not finished processing your return. While the IRS issues most refunds within 21 days for electronically filed returns, processing can take longer for a variety of reasons.

Q: What does it mean if Where's My Refund shows a different refund amount than I expected?
A: Most likely, the IRS had to make an adjustment to your return. You will receive an official IRS or U.S. Treasury letter explaining any change to your refund amount.

Q: If I get a 2021 tax refund, does that mean my withholding amounts are correct for 2022?
A: Not necessarily. Regardless of your refund amount, it is always good to check the IRS Withholding Estimator Tool (link below) periodically to make sure you are staying on track.

IRS Where's My Refund portal: https://www.irs.gov/refunds
IRS Withholding Estimator tool: https://apps.irs.gov/app/tax-withholding-estimator

03/31/2022

Federal Tax Extensions - Did You Know?

If you file for an extension on your federal income tax return, you have until Oct 15th, 2022 to file your taxes but you still have to pay any taxes due by April 18th, 2022. Bear in mind that this extension applies only to FILING your return; the payment due date will remain as April 18th. Failing to pay the full amount you owe by April 18th may result in late fees, interest or other penalties.

If you are a US citizen or green card holder living overseas, or active military on duty outside the United States on the regular due date of the return, you may be able to get an automatic two month extension to file your return and pay any taxes due.

Address

238 S 2nd Street
Decatur, IN
46733

Opening Hours

Monday	9am - 4pm
Tuesday	9am - 4pm
Wednesday	9am - 4pm
Thursday	9am - 4pm
Friday	9am - 4pm

Website

http://www.inbalancebooks.com/

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