The Tax Place of Denver

01/17/2022

Watch for IRS letters about advance Child Tax Credit payments and third Economic Impact Payments
The IRS started sending Letter 6419, 2021 advance Child Tax Credit, in late December 2021 and continues to do so into January. The letter contains important information that can help ensure the return is accurate. People who received the advance CTC payments can also check the amount of the payments they received by using the CTC Update Portal available on IRS.gov.

Eligible taxpayers who received advance Child Tax Credit payments should file a 2021 tax return to receive the second half of the credit. Eligible taxpayers who did not receive advance Child Tax Credit payments can claim the full credit by filing a tax return.

The IRS will begin issuing Letter 6475, Your Third Economic Impact Payment, to individuals who received a third payment in 2021 in late January. While most eligible people already received their stimulus payments, this letter will help individuals determine if they are eligible to claim the Recovery Rebate Credit for missing stimulus payments. If so, they must file a 2021 tax return to claim their remaining stimulus amount. People can also use IRS online account to view their Economic Impact Payment amounts.

Both letters include important information that can help people file an accurate 2021 tax return. If the return includes errors or is incomplete, it may require further review while the IRS corrects the error, which may slow the tax refund. Using this information when preparing a tax return electronically can reduce errors and avoid delays in processing.

The fastest way for eligible individuals to get their 2021 tax refund that will include their allowable Child Tax Credit and Recovery Rebate Credit is by filing electronically and choosing direct deposit.

03/30/2020

During this time of crises, here is some information which can help

Help is available from us with your application for disaster relief if you need it

The SBA loan sight was down due to volume.
The online application is back up and running. The website is working smooth as of right now, and there is a check-box option to request the $10,000 immediate business stimulus grant. Remember, Congress only allocated $10 billion of that $2.2 trillion stimulus package to these small business grants, and they're first come, first served, so get on this ASAP if you have lost revenue due to the pandemic. Here's the SBA page that you need:

03/29/2020

For creative Professionals to take advantage of government program

02/24/2020

02/13/2019

Now is the time to get your taxes done.

05/15/2018

Seasonal, Part-year Workers Urged to Check Tax Withholding Amount
WASHINGTON – The Internal Revenue Service today encouraged taxpayers who work seasonal jobs or are employed part of the year to visit the Withholding Calculator and perform a “paycheck checkup.”
The Tax Cuts and Jobs Act made changes to the tax law, including increasing the standard deduction, eliminating personal exemptions, increasing the child tax credit, limiting or discontinuing certain deductions and changing the tax rates and brackets. These changes do not affect 2017 tax returns due earlier this year, but they will affect 2018 tax returns filed next year.
Any changes that a part-year employee makes to their withholding can affect each paycheck in a larger way than employees who work year-round.
The Withholding Calculator, a special tool on IRS.gov, can help taxpayers with part-year employment estimate their income, credits, adjustments and deductions more accurately and check if they have the right amount of tax withheld for their financial situation.
The calculator asks about the dates of a taxpayer’s employment and accounts for a part-year employee’s shorter employment rather than assuming that their weekly tax withholding amount would be applied to a full year. The calculator makes recommendations for part-year employees accordingly. If a taxpayer has more than one part-year job, the Withholding Calculator can account for this as well. In contrast, the Form W-4 worksheets do not distinguish between part-year jobs and full-year jobs.
Using the Withholding Calculator
Taxpayers should have a completed 2017 tax return available when using the Withholding Calculator to help determine their proper withholding for 2018 and avoid issues when they file their returns in early 2019. Taxpayers also need their most recent paystub before using the Withholding Calculator.
Calculator results depend on the accuracy of information entered. If a taxpayer’s personal circumstances change during the year, they should return to the calculator to check whether their withholding should be adjusted. For taxpayers who work for only part of the year, it’s best to do a “paycheck checkup” early in their employment period so their tax withholding is most accurate from the start.
The Withholding Calculator does not request personally-identifiable information, such as name, Social Security number, address or bank account numbers. The IRS does not save or record the information entered on the calculator. As always, taxpayers should watch out for tax scams, especially via email or phone and be especially alert to cybercriminals impersonating the IRS. The IRS does not send emails related to the calculator or the information entered.
Adjusting Withholding
If the calculator results indicate a change in withholding amount, the employee should complete a new Form W-4 and should submit it to their employer as soon as possible. Employees with a change in personal circumstances that reduces the number of withholding allowances should submit a new Form W-4 with corrected withholding allowances to their employer within 10 days of the change.
As a general rule, the fewer withholding allowances an employee enters on the Form W-4, the higher their tax withholding will be. Entering “0” or “1” on line 5 of the W-4 means more tax will be withheld. Entering a bigger number means less tax withholding, resulting in a smaller tax refund or potentially a tax bill or penalty.
The IRS encourages taxpayers to review additional details about withholding by visiting IRS.gov.

03/29/2018

And the countdown begins!

02/19/2018

IRS Releasing Updated Forms
In order to implement the changes contained in recently enacted "extenders" legislation, IRS will be releasing several updated forms on February 22nd. The list of forms to be released includes: 1040, 1040A, Schedule A (1040), and 8917.

Complying with the changes in the forms will require the ATX team to respect multiple e-file rules that must be disabled and several that must be enabled. At this time, updated forms are expected to be released during the week of February 26th.

02/14/2018

Shutterstock Just when you thought you'd read about all of the tax scams: The Internal Revenue Service (IRS) is warning taxpayers about a new - and growing - scam involving erroneous tax refunds being deposited into real taxpayer bank accounts. Then, the crooks use various tactics to con taxpayers...

02/13/2018

Some of these items may affect your 2017 tax return as they are retroactive to Jan 1,2017. There are no forms for these items yet and the IRS has not issued any guidance.

President Trump on February 9 signed the Bipartisan Budget Act (P.L. 115-123) into law. The law contains many important tax provisions, including disaster tax relief and the extension of over 30 expired tax breaks. However, the majority of the tax relief included in the legislation applies for the 2017 tax year only.

The tax extenders included in the legislation, some with minor modifications, are as follows (extended through 2017 unless noted):

exclusion from gross income of discharge of qualified principal residence indebtedness
mortgage insurance premiums treated as qualified residence interest
above the line deduction for qualified tuition and related expenses
Indian employment tax credit
railroad track maintenance credit
mine rescue team training credit
classification of certain race horses as three-year property
seven-year recovery period for motorsports entertainment complexes
accelerated depreciation for business property on an Indian reservation
election to expense mine safety equipment;
special expensing rules for certain productions
deduction allowable with respect to income attributable to domestic production activities in Puerto Rico
special rule relating to qualified timber gain
empowerment zone tax incentives
American Samoa economic development credit
credit for nonbusiness energy property
credit for nonresidential energy property (extended through 2021 and modified)
credit for new qualified fuel cell motor vehicles
credit for alternative fuel vehicle refueling property
credit for 2-wheeled plug-in electric vehicles
second generation biofuel producer credit
biodiesel and renewable diesel incentives
production of credit for Indian coal facilities (extended to a 12-year period)
credits with respect to facilities producing energy from certain renewable resources
credit for energy-efficient new homes
energy credit (extended through 2021 and modified)
special allowance for second generation biofuel plant property
energy efficient commercial buildings deduction
special rule for sales or dispositions to implement FERC or state electric restructuring policy for qualified electric utilities
excise tax credits relating to alternative fuels
oil spill liability trust fund financing rate
temporary increase in limit on cover over rum excise taxes to Puerto Rico and the Virgin Islands
waiver of limitations with respect to excluding from gross income amounts received by wrongfully incarcerated individuals (extended through December 18, 2018)
carbon dioxide sequestration credit (enhanced, modified and generally extended through 2023).

02/09/2018

This morning President Trump signed a budget bill averting yet another government shutdown. Tucked in the Bipartisan Budget Act of 2018 are several extender provisions that expired but are now available retroactively through Dec. 31, 2017.