Denke, McBride & Ryan CPAs, PLLC

02/10/2020

Taxpayers have fundamental rights when dealing with the IRS. Among them is the right to only pay what’s legally owed. You also have the right to: receive a refund if you overpay: be in contact with the IRS if you believe you’re being billed unfairly; and amend a tax return if you discover an error. In addition, you can ask to have an “amount owed” removed if it’s incorrect and request that interest be removed from your account if the IRS causes unreasonable delays or errors. And delinquent taxpayers may submit an offer in compromise, requesting the IRS to accept less than they owe (which the IRS may or may not accept). Here’s more about the “Taxpayer Bill of Rights”: https://bit.ly/3baKlYq

01/30/2020

Right now, you may be more concerned about your 2019 tax bill than you are about your 2020 tax picture. That’s because your 2019 individual tax return is due to be filed in less than 3 months. However, it’s a good idea to familiarize yourself with tax amounts that may have changed. For example, for 2020, the amount you can put into a 401(k) plan has increased to $19,500 (from $19,000). You may want to start making contributions early in the year because they’ll lower your taxable income. Keep in mind that not all tax figures are adjusted for inflation and some amounts can only change with new tax legislation. Contact us if you have questions or need more information about your situation.

12/27/2019

The end of the year is here, so it’s time to start planning for tax filing season. If you own a pass-through entity and pay tax on your share of business profits on your personal income tax return, the final installment of your 2019 estimated taxes is due on Wednesday, January 15, 2020. You may also need to make estimated payments if the amount of income tax withheld from your salary or pension isn’t enough, or if you receive income such as interest, dividends, alimony, self-employment income, capital gains, prizes and awards, Contact us with questions.

12/20/2019

In addition to a year-end funding bill, lawmakers finalized the Setting Every Community Up for Retirement Enhancement (SECURE) Act. The retirement bill includes expansion of the automatic contribution to savings plans to 15% of employee pay, allows some part-time employees to participate in 401(k) plans and raises the age limit for IRA contributions from age 70½ to 72. Also included in the retirement package are provisions aimed at Gold Star families, eliminating an unintended tax on children and spouses of deceased military family members. As with the funding bill, the Senate is expected to pass and the president to sign the bill by the end of the week.

12/13/2019

A reminder: Retirees born before July 1, 1949 usually must take required minimum distributions (RMDs) from their retirement plans by Dec. 31. Those who turned 70½ in 2019 (the onset age for RMDs) can wait until April 1, 2020, to take their first distributions. (The April 1 deadline only applies to the RMD for the first year. For all subsequent years, the RMD must be made by Dec. 31.) The required distribution rules apply to the owners of traditional IRAs, Simplified Employee Pensions (SEP) IRAs, Savings Incentive Match Plans for Employees (SIMPLE) IRAs, and participants in various workplace retirement plans, including 401(k)s, 403(b)s and 45(b)s. Contact us for more information.

11/26/2019

11/14/2019

Problems arise when data reported on a W-2 form doesn’t match data held by the Social Security Administration (SSA). Wages and taxes paid can’t be credited to the right wage earner. To fix errors, the SSA regularly notifies employers when mismatches occur in the name and Social Security number on a W-2, or when key data is missing. The problem may be a typo, an unreported name change or inaccurate records. In November, the SSA is sending employers a second round of letters, called Educational Correspondence (EDCOR), requesting corrections of tax year 2018 records. If you receive an EDCOR, visit the SSA online (https://bit.ly/33LI026 ) to correct the records, or contact us for help.

11/08/2019

Proposed regulations would update data used to determine required minimum distributions (RMDs). They would update the life expectancy and distribution tables used to calculate RMDs from qualified retirement plans, IRAs, annuities and other tax-favored employer-provided retirement arrangements. The proposed updated tables reflect current mortality data. The life expectancy distribution tables would apply for distribution calendar years (years when an employee must take an RMD) beginning on or after Jan. 1, 2021. Contact us if you have questions about taking RMDs from your retirement plans.

11/01/2019

Given the escalating cost of employee health care benefits, your business may be interested in setting up an employer-sponsored Health Savings Account (HSA). For eligible individuals, HSAs offer a tax-advantaged way to set aside funds (or have their employers do so) to meet future medical needs. To be eligible, an individual must be covered by a “high deductible health plan.” For 2019, a “high deductible health plan” is one with an annual deductible of at least $1,350 for self-only coverage, or at least $2,700 for family coverage. An HSA provides a number of tax benefits for your business and its employees. Contact us if you have questions or you’re interested in setting one up.

10/28/2019

The IRS has been making strides fighting identity theft, and it’s urging the public to do the same. Protecting personal information while using the Internet should be a priority for families and teens, the tax agency says. It recently offered some commonsense tips for online safety. For example, parents should teach their children to be wary of public Wi-Fi networks. Connection to Wi-Fi in a mall or coffee shop is convenient but may not be safe. Cybercriminals can easily intercept personal information. Always use a virtual private network when connecting to public Wi-Fi. Leaving a trail of personal information can lead to identity theft and tax fraud. Read more tips: http://bit.ly/2Paqos9

10/23/2019

What challenges does the IRS face? The Treasury Inspector General for Tax Administration (TIGTA), in a memo to the Treasury Secretary, detailed the management and performance hurdles facing the IRS for fiscal year 2020. The top five are 1) security over taxpayer data and protection of IRS resources; 2) implementing tax law changes; 3) addressing emerging threats to tax administration; 4) supporting an enhanced taxpayer experience; and 5) modernizing IRS operations. The memo also stressed how the trend of “reduced staffing has affected the IRS’s ability to deliver its priority program areas, including customer service and enforcement activities.” Read the memo: https://bit.ly/32OUTYw

10/11/2019

Heads up! Oct. 15 is an important deadline for taxpayers who live and work abroad, or have certain foreign financial accounts. Taxpayers abroad had until June 17 to file a 2018 individual tax return or request an automatic extension to file by Oct. 15. Requests must have been filed by June 17. Also, taxpayers with foreign accounts which, combined, exceeded $10,000 at any time in 2018 must electronically report the accounts. That means filing a Form 114, “Report of Foreign Bank and Financial Accounts (FBAR),” with the Treasury Dept. Financial Crimes Enforcement Network (FinCEN). FinCEN has granted filers who missed the deadline an automatic extension to Oct. 15. Contact us with questions.