REGIONAL LEDGER SPECIALISTS LLC

01/21/2022

Economic Impact Payment #3 to be Reconciled & Claimed on 2021 Tax Returns

The third ECONOMIC IMPACT PAYMENTS (EIP) were received by eligible individuals most generally in December 2020 or January 2021. Some payments may have been received shortly after this time frame as the IRS worked through the list of eligible individuals.

Individuals who did not receive, or who initially did not qualify for, the 3rd EIP may be eligible for the RECOVERY REBATE CREDIT (RRC) based on their 2021 tax situation.

If you are eligible, you will need to file a 2021 tax return to claim the RRC, even if you don’t usually file, or if you didn’t get the full amount of the 3rd EIP.

The IRS in early 2022 will send you LETTER 6475 to provide the total amount of the third EIP and any Plus-Up payments that you received per their records. You will need to determine how much, if any, you were eligible to receive, as well as the amount you actually received for the 3rd EIP. Compare these amounts – they should all be the same. If there is any discrepancy, the source of the difference will need to be determined and addressed. It is best if a tax professional assists with this, since the IRS has not yet issued guidance on how to proceed if there is a discrepancy. As of now, it appears they will use the amount listed in LETTER 6475.

If you use a tax professional, make sure you give this information to them for accurate preparation of your tax return to avoid a refund delay. The fastest way for you to get your tax refund that will include your RRC is by filing electronically and choosing direct deposit.

See IRS.gov for more information.

01/21/2022

Advance Child Tax Credit Payments to be Reconciled on Tax Returns

In filing your 2021 tax return, please take note: You will need to compare the Advance Child Tax Credit payments that you received during 2021 with the amount of Child Tax Credit (CTC) that you can properly claim on your 2021 return.

 If you received LESS THAN the amount that you are eligible for, you will claim a credit for the remaining amount of CTC on your 2021 tax return.

 If you received MORE THAN the amount you are eligible for, you may need to repay some or all of that excess payment when you file.

During the month of January, the IRS will send you LETTER 6419 informing you of the total amount of Advance Child Tax Credit payments that you received in 2021. You need to KEEP THIS - and any other IRS letters you receive about advance CTC payments you received – with your tax records and refer to them when you file.

If you have a tax professional prepare your taxes, be sure to give them this important information so your tax return will be correctly prepared.

01/21/2022

IRS TO REQUIRE SELFIE TO FILE TAXES

The IRS has recently announced that their existing identity credentials of all taxpayers will no longer be valid beginning this summer. This will result in taxpayers experiencing a much more difficult process of filing income tax returns.

In an ongoing effort to prevent fraud, the IRS will begin to use a third party identity verification service called ID.me. Taxpayers will submit an online application to ID.me and will be required to submit copies of documents proving your identity, such as utility bills, mobile phone service details, scans of your driver’s license or other government IDs. If you don’t have the required documents or your application triggers a potential fraud flag, you will also need to submit a live video feed of your face(s) using your smartphone or your computer’s we**am. The company will then verify your phone number.

Identity theft is out of control, and using additional tools to help prevent fraud is commendable. However, submitting documents and biometric data to a third party company raises serious concerns. If ID.me suffers a data breach of any kind, cybercriminals will have access to extensive personally identifiable information to be able to carry out any manner of identity theft.

Very strong passwords are strongly recommended consisting of a combination of letters (both upper and lower case), numbers, and special characters. Various IT professionals recommend no less than 16 digits in length. Yes, you read that right….16 characters. And don’t forget to securely record and save the password for future use. ID.me also uses multi-factor authentication (MFA), such as a 6-digit code sent to you by text, or other security code options.

The tax filing landscape is changing. It is best to be aware and prepared.

04/15/2020

CHECK ON THE STATUS OF YOUR ECONOMIC IMPACT PAYMENT

The IRS has announced an application tool on its website to check on the status of your Economic Impact Payment. Here's the link:

https://www.irs.gov/coronavirus/get-my-payment?ftag=MSFd61514f

This application will give you information about:
> Your payment status
> Your payment type
> Whether they need more information from you, including bank account information

There is also information about what to do if you did not file, or were not required to file, a tax return for 2018 or 2019.

Use Get My Payment to get information about your payment status and payment type.

03/31/2020

BEWARE OF STIMULUS PAYMENT SCAMS !

Scammers seem to have now targeted the new stimulus payments that will be sent to taxpayers within the next few weeks.

Be alert for the following:

1. PHONE SCAMS - The Internal Revenue Service, Treasury Department, or any other government agency WILL NOT contact you by phone to collect information for stimulus payment processing. Period.

2. PHISHING SCAMS - Government agencies WILL NOT email or text you to collect information for stimulus payment processing. Watch for suspicious emails or texts with links or attachments requesting information for processing stimulus deposits or checks. If you receive one, DO NOT click the link or open the attachment. It's a scam - delete it.

3. STATE-RELATED SCAMS - State agencies also WILL NOT call, email or text you to collect information or a fee to process a stimulus payment. To date, no state has introduced their own version of a stimulus payment.

As of this posting, there is only one communication we are aware of that a taxpayer will receive from the IRS. No later than 15 days AFTER distributing a stimulus payment, the IRS is required to mail a notice to the taxpayer indicating the payment amount, whether the payment was mailed or direct deposited, and a phone number to call if the taxpayer did not receive the payment.

If you are a victim or target of a stimulus payment scam, report it immediately to the Federal Trade Commission at:
www.ftc.gov/complaint

03/21/2020

WISCONSIN'S TAX FILING DEADLINE EXTENDED

The WI Department of Revenue announced Saturday that Wisconsin's tax filing deadline has been extended to July 15, 2020 to match the new federal tax filing deadline.

This new tax filing deadline applies to individuals, trusts, estates, partnerships, associations, companies, or corporations.

According to officials, taxpayers do not have to file for an extension and there is no limit on the amount of payment that can be postponed.

03/21/2020

ATTENTION TAXPAYERS WITH STUDENT LOANS

The U.S. Secretary of Education today announced that student loan payments can be suspended upon proper request to the loan servicer. In addition, interest rates will be reduced to 0% for 60 days commencing on March 13, 2020.

HOW TO STOP PAYMENTS

Borrowers have to request an "administrative forbearance" with their federal student loan servicers, according to the release put out by the Department of Education. The forbearance will allow those with loans to temporarily suspend payments.

To take advantage of the benefit, borrowers have to directly contact their lender either online or by phone. President Trump said that his administration has given "strict instructions" to servicers on how to put this policy into place.

You can also re-adjust how much you're paying per month if you've had a significant change in income due to the corona-virus outbreak. In order to lower the monthly payment, the Department of Education suggests contacting the loan servicer directly.

The Secretary of Education has also ordered automatic suspension of payments for anyone who is more than 31 days delinquent as of March 13, 2020.

03/21/2020

FEDERAL TAX FILING DEADLINE EXTENDED

Due to the COVID-19 outbreak, the Treasury Secretary today announced that individual and business taxpayers will now have an additional 90 days, until July 15, 2020, to file their 2019 tax returns. This announcement sets both the filing and payment deadlines to the same day.

The Treasury still encourages taxpayers who may have tax refunds to file now in order to get their refund money.

PLEASE NOTE: There is no word yet from Wisconsin Department of Revenue as to whether or not Wisconsin will follow the Federal extended filing deadline. As of today, the filing deadline for Wisconsin returns is still April 15, 2020.

Stay tuned for further updates...…..

03/19/2020

2019 Tax Return Tax Payment Due Date Extended

The Treasury Department and the IRS just announced that income tax payment deadlines will be extended due to the Coronavirus outbreak.

For Individuals: Income tax payment deadlines for individual returns with a due date of April 15, 2020 are being automatically extended until July 15, 2020 for up to $1 Million of their 2019 tax due. This payment applies to all individual returns, including self-employed individuals, and all entities other than C Corporations, such as trusts or estates.

IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief.

This relief also applies to estimated tax payments for tax year 2020 that are due on April 15, 2020.

Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. If you file your tax return or request an extension of time to file by April 15, 2020, you will automatically avoid interest and penalties on the taxes paid by July 15, 2020.

PLEASE NOTE: This relief only applies to FEDERAL income tax (including tax on self-employment income) payments otherwise due April 15, 2020. It DOES NOT apply to state tax payments or deposits or payments of any other type of federal tax. Taxpayers will need to file income tax returns in 42 states plus the District of Columbia. State filing and payment deadlines vary and are not always the same as the federal filing deadline. The IRS urges taxpayers to check with their state tax agencies or their tax professional for those details.

More information is available at:
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https://www.irs.gov/coronavirus

https://www.taxadmin.org/state-tax-agencies

03/17/2020

It has just been announced by Treasury Secretary Mnuchin that major programs will be taking effect to assist the American public during the COVID-19 crisis. Briefly, the Treasury Department will try to send checks to Americans immediately, within the next 2 weeks. People who owe or currently owe the IRS can defer those payments - without interest charges - for 90 days.

This story continues to unfold and information may change. Stay tuned as further announcements are made.

08/26/2019

Good info on cell and land line robocalls and how to stop them.

This article offers tips to help you combat unwanted robocalls.

08/22/2019

The IRS just issued a new scam alert today. Taxpayers are receiving emails with a subject line that varies, but recent examples include "Automatic Income Tax Reminder" or "Electronic Tax Return Reminder". The emails have links that show an IRS.gov-like website with details pretending to be about the taxpayer's refund, electronic return, or tax account. The emails contain a "temporary password" or "one-time password" to "access" the files to submit the refund. But when taxpayers try to access these, it turns out to be a malicious file.

PLEASE BEWARE: According to IRS Commissioner Chuck Rettig, the IRS does not send emails about your tax refund or sensitive financial information. "This latest scheme is yet another reminder that tax scams are a year-round business for thieves. We urge you to be on-guard at all times."

This new scam uses dozens of compromised websites and web addresses that pose as IRS.gov, making it a challenge to shut down. By infecting computers with malware, these imposters may gain control of the taxpayer's computer or secretly download software that tracks every keystroke, eventually giving them passwords to sensitive accounts, such as financial accounts.

The IRS does not initiate contact with taxpayers by email, text messages, or social media channels to request personal or financial information. This includes requests for PIN numbers, passwords, or similar access information for credit cards, banks, or other financial accounts.

The IRS also does not call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card, or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.

For more details, see:
https://www.irs.gov/privacy-disclosure/report-phishing

The IRS doesn't initiate contact with taxpayers by email, text or other social media channels to request personal or financial information. Visit this page for instructions if you're unsure about any communication claiming to be from the IRS that you didn't expect to receive.