Castleberry and Associates P. C.

01/10/2022

Filing season opens January 24 and Treasury officials are urging taxpayers to get their tax returns in as early as possible.

02/26/2021

https://www.irs.gov/newsroom/irs-announces-tax-relief-for-oklahoma-severe-winter-storm-victims

OK-2021-01, February 25, 2021 — Victims of winter storms that began February 8, 2021 now have until June 15, 2021, to file various individual and business tax returns and make tax payments, the IRS announced today.

02/24/2021

IRS MISTAKENLY SENT NON-FILING NOTICES; HASN’T PROCESSED ALL 2019 RETURNS
IRS Statement about CP59 notices (02/18/2021)
The IRS has posted a statement on its website acknowledging that it mistakenly sent non-filer notices to thousands of taxpayers regarding their 2019 returns (“CP59 notices”). The IRS shouldn't have sent the CP59 notices because it hasn’t finished processing all the 2019 returns that were filed.
Background. The IRS sends CP59 notices to taxpayers who failed to file the federal tax return that was due during the prior filing season (e.g., tax year 2019 returns that were due to be filed in 2020). (Understanding your CP59 Notice)
At the beginning of the COVID-19 pandemic, the IRS scaled back its operations to focus on mission-critical activities, including accepting returns and sending refunds. The IRS shut down all its Taxpayer Assistance Centers (TACs) and reduced its mail processing operations. See IRS mission-critical operations continue but no face-to-face assistance available (03/25/2020).
The reduction in mail processing caused a significant backlog, which the IRS is still dealing with. (IRS Operations During COVID-19: Mission-critical functions continue)
Mistaken CP59 notices. In early February 2021, the IRS issued CP59 notices to approximately 260,000 taxpayers. These notices claimed the notified taxpayers didn’t file their 2019 federal tax returns.
However, due to pandemic-related shutdowns, the IRS hasn’t finished processing all the 2019 returns that have been filed.
According to its statement, the IRS shouldn’t have sent the CP59 notices because some of the notice recipients may have filed a 2019 return that still hasn’t been completely processed.
The IRS says that taxpayers who filed their 2019 tax return, but still received a CP59 notice, can disregard the notice and do not need to take any action. There is no need to call or respond to the CP59 notice.
“The IRS regrets any confusion caused by this mailing.”

12/29/2020

Another Stimulus Rebate Payment Is Coming
Good news. The President signed the COVID-related Tax Relief Act of 2020 on December 27, 2020. The new law includes, in its almost 600 pages, the second round of recovery rebate payments.
Individuals and children (under age 17) are entitled to a $600 rebate if income is below a threshold amount. A family of four can qualify for a $2,400 rebate payment.
Note. Your adult dependent children do not qualify for the $600 rebate.
The payment you receive is based on the income shown on your 2019 tax return. If your 2019 income is too high, you will not qualify for a recovery rebate payment. When adjusted gross income (AGI) exceeds $75,000 single, $112,500 head of household, and $150,000 married filing joint, the payment is reduced by $5 for every $100, which your AGI exceeds the applicable threshold amount. For example, a single taxpayer with AGI over $87,000 does not qualify for the rebate.
If you received a rebate payment during 2020, you will receive this second round, with this one caution. If the earlier rebate was based on your 2018 AGI (your 2019 return wasn't filed yet) and the 2019 AGI is higher, the phaseout rules may mean you will receive a reduced payment or no payment on the second round of rebates.
When will the rebate payment arrive? If you had direct deposit information on your 2019 return, the rebate payments should start to arrive in mid-January. Paper checks will be at least a month later. Do not expect a paper check (or a debit card) until near the end of February 2021. The IRS has an "Economic Impact Payment Information Center" page on their website at IRS.Gov. In a few weeks, the center should be open to help you tract this additional rebate payment.

12/18/2020

Many preparers see anything but smooth sailing in the offing. “I’m anticipating a very delayed tax season and probably not a very taxpayer-friendly one,” said Ryan Losi, executive vice president of accounting firm Piascik. “Many departments in the IRS are still not operating at full staff or are experiencing extreme delays in processing taxpayer information, such as payments made months ago or requests for information or amended returns that haven’t been processed.”

Fewer DIY taxpayers, an overwhelmed IRS and other likely features of the upcoming filing season.

04/15/2020

Here's how to track the status of your stimulus check from the IRS.

03/20/2020

President Donald Trump ordered the IRS federal income tax filing extension to help deal with the coronavirus pandemic's economic fallout, Treasury Secretary Steven Mnuchin said.

03/02/2019

Thank you Norman for voting us best CPA every year since 2009. Honored to add financial planning to the award list. Than you again we are truly humbled and honored to work in this community.

05/24/2018

Thanks largely to a progressive tax code and lawmakers' love of tax breaks, nearly 79 million households will not owe any federal income tax this year, according to estimates from the Tax Policy Center.