Susan E. Graves, CPA Tax & Accounting

12/11/2024

Here's a new article from WSJ calling CPAs to advocate for change in CPA licensing requirements

From WSJ.com, by Paul Knopp

12/07/2024

Watch for Charitable Contribution Scams this holiday season!

The IRS cautioned taxpayers against falling victim to scammers of fraudulent tax schemes involving donations of ownership interests in closely held businesses, which are sometimes sold as “Charitable LLCs.” The IRS views these promotions, which frequently target high-income individuals, as abusive transactions.

Taxpayers can report abusive tax schemes using:

The complaint form located at Treasury Inspector General for Tax Administration or by calling 800-366-4484.

Form 14242, Report Suspected Abusive Tax Promotions or Preparers, to report a suspected abusive tax avoidance scheme and tax return preparers who promote such schemes.

11/25/2024

New post! Very interesting AICPA article regarding starting salaries for new accountants. Currently, 75% of all CPAs are retiring in the next 10 years and there is a pipeline shortage in the profession, the main driver being starting salaries that aren't as high as for other disciplines for business majors.

Subscribe free to my substack and leave a comment with your thoughts.

12/01/2023

5 Key QuickBooks Online Tasks to Do Before January 1

10/04/2023

New post on Panoptic Perspectives!

Courtesy Sechler Morgan CPAs, LLC

01/14/2023

2023 Standard Mileage Rates Announced!

As it does every year, the Internal Revenue Service recently announced the inflation-adjusted 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2023, the standard mileage rates for the use of a car (or a van, pickup or panel truck) are:

• 65.5 cents per mile for business miles driven (including a 28-cent-per-mile allocation for depreciation). This is up from 62.5 cents for the last half of 2022;
• 22 cents per mile driven for medical or moving purposes unchanged from the last half of 2022; and
• 14 cents per mile driven in service of charitable organizations.

The business standard mileage rate is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. The rate for using an automobile while performing services for a charitable organization is statutorily set (it can only be changed by Congressional action) and has been 14 cents per mile for over 20 years.

Employer Reimbursement – When employers reimburse employees for business-related car expenses using the standard mileage allowance method for each substantiated employment-connected business mile, the reimbursement is tax-free if the employee substantiates to the employer the time, place, mileage and purpose of employment-connected business travel.

The Tax Cuts and Jobs Act eliminated employee business expenses as an itemized deduction, effective for 2018 through 2025. So, during these years employees may not take a deduction on their federal returns for unreimbursed employment-related use of their autos, light trucks or vans.

If you have questions related to the best methods of deducting the business use of your vehicle or the documentation required, please give this office a call.

06/14/2022

This just in....

Starting July 1, 2022 the IRS has raised the business mileage rate to $.625. This is in respond to the price hikes in gasoline and will be in effect until the end of the year

02/20/2021

Yesterday evening I talked with a client who filed her return in October 2020 and still hasn't received her refund from the IRS!!

This morning I received word that the IRS is STILL processing 2019 returns due to pandemic work stoppages, BUT they have sent out notices (CP59 letters) to taxpayers who haven't filed and those folks who are caught up in the IRS delay more than likely will receive a letter.

Grrrrrrrr.

02/16/2021

This just in!

As required by law, all first and second Economic Impact Payments issued; eligible people can claim Recovery Rebate Credit

WASHINGTON – The IRS announced today that, as required by law, all legally permitted first and second round of Economic Impact Payments have been issued and the IRS now turns its full attention to the 2021 filing season.

Beginning in April 2020, the IRS and Treasury Department began delivering the first round of Economic Impact Payments within two weeks of the legislation. The IRS issued more than 160 million EIPs to taxpayers across the country totaling over $270 billion, while simultaneously managing an extended filing season. In addition, since Congress enacted the COVID-related Tax Relief Act of 2020, the IRS has delivered more than 147 million EIPs in the second-round totaling over $142 billion.

The legislation required that the second round of payments be issued by Jan. 15, 2021. While some second round Economic Impact Payments may still be in the mail, the IRS has issued all first and second Economic Impact Payments it is legally permitted to issue, based on information on file for eligible people.

Get My Payment was last updated on Jan. 29, 2021, to reflect the final payments and will not update again for first or second Economic Impact Payments.

Most people who are eligible for the Recovery Rebate Credit have already received it, in advance, in these two rounds of Economic Impact Payments. If individuals didn't receive a payment – or if they didn’t receive the full amounts – they may be eligible to claim the Recovery Rebate Credit and must file a 2020 tax return. Eligibility for and the amount of the Recovery Rebate Credit are based on 2020 tax year information while the Economic Impact Payments were based on 2019 tax year information. For the first Economic Impact Payment, a 2018 return may have been used if the 2019 was not filed or processed.

Individuals will need to know the amounts of any Economic Impact Payments they received to claim the Recovery Rebate Credit. Those who don’t have their Economic Impact Payment notices can view the amounts of their first and second Economic Impact Payments through their individual online account. For married filing joint individuals, each spouse will need to log into their own account.

To avoid refund delays, the IRS urges people to file a complete and accurate tax return. Filing electronically allows tax software to figure credits and deductions, including the Recovery Rebate Credit. The Recovery Rebate Credit Worksheet on Form 1040 and Form 1040-SR instructions can also help.

Anyone with income of $72,000 or less, including those who don’t have a tax return filing requirement, can file their federal tax return electronically for free through the IRS Free File Program. The fastest way to get a tax refund is to file electronically and have it direct deposited - contactless and free - into the individual’s financial account. Bank accounts, many prepaid debit cards and several mobile apps can be used for direct deposit when you provide a routing and account number.

03/31/2020

Just got info about the IRS tax credits for eligible employers!

The Families First Coronavirus Response Act (the "FFCRA"), signed by President Trump on March 18, 2020, provides small and midsize employers refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages to their employees for leave related....

12/17/2016

Get Ready for Tax Season!

What To Do Before The Tax Year Ends Dec. 31

For most taxpayers, Dec. 31 is the last day to take actions that will impact their 2016 tax returns. For example:

Charitable contributions are deductible in the year made. Donations charged to a credit card before the end of 2016 count for the 2016 tax year, even if the bill isn’t paid until 2017. Checks to a charity count for 2016 as long as they are mailed by the last day of the year.

Taxpayers who are over age 70 ½ are generally required to receive payments from their individual retirement accounts and workplace retirement plans by the end of 2016, though a special rule allows those who reached 70 ½ in 2016 to wait until April 1, 2017 to receive them. Most workplace retirement account contributions should be made by the end of the year, but taxpayers can make 2016 IRA contributions until April 18, 2017. For 2016, the limit for a 401(k) is $18,000. For traditional and Roth IRAs, the limit is $6,500 if age 50 or older and up to $15,500 for a Simple IRA for age 50 or older.

Taxpayers who have moved should tell the US Postal Service, their employers and the IRS. To notify the IRS, mail IRS Form 8822, Change of Address, to the address listed on the form’s instructions. For taxpayers who purchase health insurance through the Health Insurance Marketplace, they should also notify the Marketplace when they move out of the area covered by their current Marketplace plan.

For name changes due to marriage or divorce, notify the Social Security Administration (SSA) so the new name will match IRS and SSA records. Also notify the SSA if a dependent’s name changed. A mismatch between the name shown on your tax return and the SSA records can cause problems in the processing of your return and may even delay your refund. (This happened to me after I got married in 2006 so it's important!)

Effective Jan. 1, 2017, any Individual Taxpayer Identification Number (ITIN) not used at least once on a tax return in the past three years will no longer be valid for use on a return. In addition, an ITIN with middle digits 78 or 79 will also expire on Jan. 1. Those with expiring ITINs who need to file a return in 2017 must renew their ITIN. Affected ITIN holders can avoid delays by starting the renewal process now.

Taxpayers should allow seven weeks from Jan. 1, 2017, or the mailing date of the Form W-7, whichever is later, for the IRS to notify them of their ITIN application status - nine to 11 weeks if taxpayers wait to submit Form W-7 during the peak filing season, or send it from overseas. Those who fail to renew before filing a return could face a delayed refund and may be ineligible for some important tax credits. For more information, including answers to frequently-asked questions, visit the ITIN information page on IRS.gov.

Keeping copies of tax returns is important as the IRS makes changes to protect taxpayers and authenticate their identity. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income amount from a prior tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign their tax return at Validating Your Electronically Filed Tax Return.

Questions? Send me a message!