Witter CPA, LLC

12/30/2022

Tax season is almost here. Year end documents should start arriving soon. New clients should contact me soon for a free consultation.
https://www.wittercpa.com/area-served/lake-hopatcong-nj-cpa-accountant/

12/24/2022

IRS announces delay for implementation of $600 reporting threshold for third-party payment platforms’ Forms 1099-K
As a result of this delay, third-party settlement organizations will NOT BE REQUIRED TO REPORT TAX YEAR 2022.
The Internal Revenue Service today announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season.
As a result of this delay, third-party settlement organizations will NOT BE REQUIRED TO REPORT TAX YEAR 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021.
As part of this, the IRS released guidance today outlining that calendar year 2022 will be a transition period for implementation of the lowered threshold reporting for third-party settlement organizations (TPSOs) including Venmo, PayPal and CashApp that would have generated Form 1099-Ks for taxpayers.

Lake Hopatcong Business & Personal Income Tax Returns Lake Hopatcong Tax Preparation Services Today’s tax laws are so complex, even filing a simple return can be confusing. With new initiatives and incentives each year… it’s just too easy to overlook deductions and credits to which you are ent...

12/16/2021

Retirees Must Take RMDs by Dec. 31

The IRS reminds retirement plan participants and individual retirement account owners that required minimum distributions (RMDs) must usually be taken by Dec. 31. Generally, account owners must withdraw RMDs annually starting with the year they reach 72 or, if later, the year they retire. However, if the retirement plan account is an IRA or the account owner is a 5% owner of the business sponsoring the retirement plan, the RMDs must begin once the account holder is age 72, even if they’re still working. RMD amounts not timely withdrawn from accounts may be subject to penalties.

https://www.wittercpa.com/services/tax-preparation/

12/02/2021

The IRS reminds individuals and businesses that
special recordkeeping rules apply to any taxpayer
claiming a charitable contribution deduction. Usually,
this includes obtaining an acknowledgment letter
from the charity before filing a return and retaining
a cancelled check or credit card receipt for contribu-
tions of cash.

https://www.wittercpa.com/services/tax-preparation/

11/02/2021

Special Deduction for Charitable Donations:
Taxpayers who claim the standard deduction ordinarily cannot deduct any charitable donations on their tax returns. However, the special rules allow these taxpayers to claim a deduction of up to $300 (up to $600 for joint filers) for qualified monetary contributions made to charities in 2021. You may claim this deduction in addition to the standard deduction for your filing status. Don't forget to obtain documentation to support your deduction.

Note: This deduction is for cash donations. Donations of goods or services do not qualify for this special deduction. However, if you itemize, you may still qualify for a deduction for gifts of goods or services to charity.

https://www.wittercpa.com/services/tax-preparation/

10/28/2021

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Thus, taxpayers need not contact the IRS to get this relief. However, affected taxpayers who receive a late filing or late payment penalty notice from the IRS that has an original or extended filing payment or deposit due date falling within the postponement period should call the number on the notice to have the penalty abated.

https://www.wittercpa.com/services/tax-preparation/

09/02/2021

IRS notices/letters
The IRS sends notices and letters for various reasons. First and foremost, don’t panic if you receive one. Read it carefully. Sometimes it’s just valuable information to keep with your tax records. Other times, the notice might say the IRS needs more information or changed something on your tax
return, especially if you filed your tax return before
March 11, 2021. If you agree with the change, there’s no need to contact the IRS, but you must follow the instructions in the notice if you have a balance due. On the other hand, if you dis-agree with the change, you must respond as directed in the notice. Contact me if you receive a notice, and we can work together on how to respond.
https://www.wittercpa.com/services/tax-preparation/

09/02/2021

IRS notices/letters
The IRS sends notices and letters for various reasons. First and foremost, don’t panic if you receive one. Read it carefully. Sometimes it’s just valuable information to keep with your tax records. Other times, the notice might say the IRS needs more information or changed something on your tax
return, especially if you filed your tax return before
March 11, 2021. If you agree with the change, there’s no need to contact the IRS, but you must follow the instructions in the notice if you have a balance due. On the other hand, if you dis-agree with the change, you must respond as directed in the notice. Contact me if you receive a notice, and we can work together on how to respond.

Small Business & Personal Income Tax Returns Tax Preparation Services Today’s tax laws are so complex, even filing a simple return can be confusing. With new initiatives and incentives each year… it’s just too easy to overlook deductions and credits to which you are entitled. Even if you use a...

08/18/2021

Tax Tip: 100% Business Deduction for Restaurant Food & Beverage in 2021

A special tax rule enables many businesses, including sole proprietors and independent contractors, to take larger meal expense deductions in 2021 than the IRS usually allows. Ordinarily, deductions for food and beverage costs cannot exceed 50% of the actual expense. However, the 2021 rule enables businesses to deduct 100% of the cost of food and beverages from restaurants in certain cases from January 1, 2021 through December 31, 2022.

The provision defines a restaurant as a business that prepares food or beverages for retail customers to consume on-site, pick up, or receive by delivery. This definition excludes most grocery and convenience stores, unless the store contains a separate restaurant or cafe area. In addition, facilities overseen or owned by the employer claiming the deduction, such as a workplace cafeteria, generally do not qualify as restaurants under this rule.

In order for meal expenses to qualify for this special deduction, the following conditions must be met:

The business owner or an authorized employee is present when the food and/or beverages are provided.
The expense is paid to a restaurant, based on the definition above.
The food and beverage costs are not lavish or extravagant for the circumstances.

https://www.wittercpa.com/area-served/sparta-nj-cpa-accountant/

08/02/2021

Quick Tip for Small Business Owners - Plan ahead for quarterly income tax payments. Set money aside as you earn it throughout the year. This way you can avoid the problem of having to make large payments at times when you may not have ready funds available to do so. https://www.wittercpa.com/area-served/sparta-nj-cpa-accountant/

07/26/2021

Child Tax Credit Portal Update

The IRS recently upgraded the Child Tax Credit Update Portal to allow taxpayers to update their bank account information to receive their monthly child tax credit payment. The tool also allows families to unenroll from the advance payments if they don’t want to receive them.

Any updates made by Aug. 2 will apply to the Aug. 13 payment and all subsequent monthly payments for the rest of 2021. Taxpayers with outdated bank account information can use the online tool to update their information so they can receive the payments sooner by direct deposit. Those who are not enrolled for direct deposit will receive a check.
https://www.wittercpa.com/area-served/mount-arlington-nj-cpa-accountant/

07/19/2021

With the recently enacted American Rescue Plan, there were changes made to the child tax credit that may benefit many taxpayers, most notably:
• The amount has increased for certain taxpayers
• The credit is fully refundable
• The credit may be partially received in monthly payments
• The qualifying age for children has been raised from 16 to 17
The IRS will pay half the credit in the form of advance monthly payments beginning July 15 and ending Dec. 15. Taxpayers will then claim the other half when they file their 2021 income tax return.
https://www.wittercpa.com/area-served/sparta-nj-cpa-accountant/