The PELTZ Company

09/27/2022

Tax Credit Warning:
There are many agencies attempting to “help” you apply for credits they believe you should receive. The Employee Retention Credit is one that is being pushed right now. As a public record PPP loan recipient, you are their target. There is much more to deciding if you qualify for ERC than what these agencies are willing to do for you and the 10% or so you pay them. Please realize that the IRS is cracking down on fraudulent applications for ERC and are not afraid to prosecute. If you believe that this credit applies to your business, please contact our office for guidance. As a client, know that when we prepare your tax returns, we scrutinize if you are eligible for this and any other tax credit available.
-The Peltz Company

01/10/2022

Here we go....January 10th and we being told they cannot keep with the demand. Our Congressman and Senators needs to find a solution to this crisis. The April 15th needs changed to May or June 15th; this date is no longer a functioning date due to various reasons, lack of funding, lack of employees, and COVID measure. The guidelines of forever ever changing, confusing to say the least. Our government needs to act on this, I call on our Congressmen and Senators to set aside their political biases to get this fixed. More funding, trained employees, consistency to begin with. Stop this crisis NOW

Officials predict refunds and other services will be delayed.

09/08/2021

The backlog was a 3,230% increase relative to the end of 2019, according to a report issued Tuesday by a Treasury Department watchdog.

08/18/2021

Are you lazy? Is the competition finding your weak spots?

07/15/2021

Families across the U.S. will start receiving a monthly child tax credit payment Thursday through the American Rescue Plan.

Called an advanced child tax credit, the monthly payments are connected to your income taxes. If eligible, parents may receive half of their annual tax credit money in the form of monthly payments. Parents will receive the other half of the credit when they file their income tax returns.

Here's what families should know about this new benefit:

Start the day smarter. Get all the news you need in your inbox each morning.

Am I eligible?
Families with one or more children under 18 years old qualify for the full child tax credit amount this year if their income is less than:

$75,000 for individuals filing their taxes alone
$112,500 for individuals filing as the head of household, such as single parents
$150,000 for a married couple jointly filing taxes
People who earn higher incomes still may be eligible for a smaller child tax credit, depending on how much they earn.

Families will get up to $300 a month for each child up to 5 years old and $250 per month for children ages 6 to 17.

07/08/2021

Update from the IRS...on July 1, 2021 Erin Collins of the Taxpayer Advocate released her annual IRS report. Here are some of the Highlights

1. The current tax return backlog is 35 million individual and business returns that require manual processing. 5 times as many as there were in 2019. The backlog is because
a. Less than 1/2 is paper tax returns awaiting processing with remaining 1/2 for various reason but the main cause because of discrepancies between the amount of stimulus the taxpayers received versus what they should have received.
b. EIC - in 2020 taxpayers could elect to use either 2019 or 2020 income to calculate this tax credit.
2. All taxpayer can do at this point is remain patience until the backlog is cleared. No time tables are available.
3. Adding to the backlog is the sharp increase in the number of returns flagged as suspicious. 3.7 million as of May 2021, in 2019 there was 1.3 for 2019.
4. Phone jams - the IRS received more than 85 million phone calls, the most ever and over 4 times the amount compared to the previous. He the stunner....only 3% of all call make it to an IRS customer representative.

Conclusion - I am not for the IRS by any means. But we have to realize which many have forgot. When the rest of the US was shut down during 2020, so was the IRS. When things began to reopen, IRS employee were working for home. Many still are with unknown return dates to their offices. I can only suggest patience.

06/24/2021

If you are a client still waiting for your refund, delays by the IRS.

The IRS is churning out 2020 tax year refunds, while it offers free tax prep days to help eligible families claim advance payments of the 2021 Child Tax Credit.

06/23/2021

Here at The Peltz Company we are monitoring what the current administration tax policy might effect our clients. Here are some proposed highlights:

1. Increase in the top marginal tax rate to 39.6%.
2. The top marginal tax bracket would begin at $452,700, a change of $70,901.
3. Capital gains for those earning more than $1M to be tax at the top marginal tax rates.
4. Transfer of property via either gifting or death will be treated as sale of property. Capital Gain rates apply. Retroactive to January 1, 2021. Holding assets until death in order to achieve step up in basis may not be in the best interest of taxpayer(s).
5. S-Corp, partnership who receive pass through income over $400K will have to pay the net investment tax 3.8% FOR the investor or the self-employment tax 12.4% if the investor is active in the business.
6. Like-kind exchanges (1031) is limited to $1M annually.

The effective dates of these changes is after December 31, 2021, BUT there is some talk having the law retroactive to April 28, 2021 which is the date of announcement of these proposed changes.

We cannot emphasis more these are all PROPOSED tax changes and not FINAL.

Even if these proposals do not come to pass, we do have AUTOMATIC tax changes made in 2017 under the previous administration. These changes were become effective in 2026.

Here at The Peltz Company we will continue to monitor these and other tax changes.