Murphy's Accounting Services

01/16/2024

So here we are at the start of a new tax season. I just want to update you all as to where we are at with the start of the new year. W***y is still retired. ☹ Sorry, no talking him out of that one, I tried. We will still be continuing as we have in the past few years, with clients dropping off, mailing or uploading their tax documents to our secure portal on our website.

As far as in-office appointments go, I will try to accommodate those that have special circumstances where they feel they need an appointment. However, please be aware that if you schedule an appointment there will be an additional consultation fee, in addition to the tax preparation fee. With just one full-time tax preparer it is difficult to try to have appointments plus work on drop-offs. While I do love visiting with you all, it is not a very efficient use of time when having to stop to meet with clients. I do realize that some clients will want to discuss certain situations and may want an appointment. If that is the case, please first consider a call or email or include your questions in with your information you drop off. Please do not make an appointment if all you are looking to do is have your return prepared during that time, lets save those times for those clients that really do need that face-to-face time. Please call the office to set up an appointment time if you feel you need to do so.

We ask that you please get your documents to us as soon as possible. Please don’t wait until the first of April, and think your returns will be completed by April 15th, because they won’t. Last year our general cutoff for getting returns done by the due date was for clients that had their stuff to us by mid-March. Anyone dropping off after that point will have an extension filed for them so they will not get a late filing fee. The final due date after an extension is filed is October 15th.

Masks will be optional again. We ask that if you have been sick within the prior week, or are not feeling well, first refrain from coming in, but if you must, please wear a mask when coming into the office, or if you are just dropping off information, use our drop off slot in our front door. We want to keep our staff, their families and our clients healthy so we can get through the season without any illnesses.

While in the past we have appreciated referrals, at this time we are not taking on any new clients.
We appreciate all our loyal clients and wish you all well in the new year.

01/04/2023

Dear Clients

There have been a lot of rumors floating around about our business and the upcoming tax season, so we are sending out this message to help clear some things up.

Bad news (for the rest of us anyway) , after 40 years in the tax preparation business, W***y is retiring. While it has been a great run, he has been wanting to retire for some time, and now that the whole Covid craziness is hopefully over, he has decided now is a good time to retire. Bad news for the rest of us, good news for W***y!

Good news is, Debbie has decided to continue on with the tax preparation business. As there is no way that Debbie can prepare returns for all her clients as well as all of W***y's, letters have gone out to some clients letting them know we will be unable to prepare their 2022 tax returns. For the rest of you that didn't get a letter, we will do our best to prepare your 2022 tax return as we have in prior years.

Some clients are asking about in-office appointments. We are going to keep the same process as we have in the past few years. We ask that you either drop off, mail, or upload into the secure portal on our website, your tax documents required to prepare your return.

As the business has grown over the years, we have had to try to find ways to make the processes more efficient and less time consuming. We loved meeting with out clients in the past but by avoiding in-office appointments, this helps us to be more efficient.

One IMPORTANT thing you can do to help us help you is by getting us your tax documents to us as soon as you receive them.

The sooner we receive your tax documents, the sooner we can get your return prepared and sent out. Last year we had to file 4 times as many extensions as we normally do because of so many clients waiting to bring us their tax documents! The sooner the better is greatly appreciated.

Masks will be optional, but we ask if you have been sick within the prior week, or are not feeling well, to please wear a mask if you are coming into the office, or if you are just dropping off information, use our drop off slot. We want to keep our staff, their families and our clients healthy so we can get through the season without any illnesses.

We appreciate all our loyal clients and wish you all well in the new year.
If you have any questions or concerns please send us a message directly. Thanks

01/06/2022

Hope you all had a great holiday season and that the new year is good to you. 😍

Just want to update you all to some things you need to be aware of this year.

The IRS has started sending out LETTER 6419- ADVANCE CHILD TAX CREDIT. If you received any of the ACTC in 2021 you will receive this letter . This letter will be required for the 2021 tax return. It will state how much you received for the ACTC in 2021, and the children listed showing who this credit pertained to. SO IT IS VERY IMPORTANT THAT YOU KEEP THIS LETTER. Please note if you are married the IRS would have sent the ACTC payments to each spouse, so you should expect to receive two letters, one for each spouse. It is important that you keep both letters for preparing your 2021 tax return.

The IRS is also sending out LETTER-6475- ECOMONIC IMPACT PAYMENTS for the third stimulus payment you may have received in 2021. We will also need this letter for preparing your 2021 tax returns.

If we do not have the correct amounts for either the ACTC or the 3rd stimulus payment, this will hold up the processing of your return and any refund due to you. This is you why need to hang onto the letters.

Also, because COVID is still with us we will not be booking in-office appointments, same as last year. We are again asking all our clients to use our drop off service. You can drop off via our drop off slot in our office door, or you can mail, or email your information. If you decide to email please use our email [email protected], which has a secure upload portal for documents. Or you can come in and drop off. We do require when you come in to the office that you wear a mask and maintain social distancing.

This is the same as what we did last year and for many of our clients use of the drop off service is no different than what you’ve done in the past. In light of the environment we are still in we need to be safe for us, our staff and our clients. We wish you all a safe and happy new year. If you have any questions about this process, please call the office. 364-4100

01/07/2021

So as we start the new year in preparation for another tax season, we want to update our clients with some changes this year. Due to COVID we will not be booking in office appointments. We are asking all our clients to use our drop off service. You can drop off via our drop off slot in our office door, or you can mail, or email your information. Or you can come in and drop off. We do require when you come in to wear a mask and maintain social distancing. For many of our clients use of the drop off service is no different than what you’ve done in the past. For others, I know you (and we will as well) miss our in person visits. But in light of the environment we are in we need to be safe for us, our staff and our clients. We wish you all a safe and happy new year. If you have any questions about this process, please call the office. 364-4100

10/05/2020

04/15/2020

So here we are on the day tax season was supposed to end. I thought I would put out a question and answer update to all the various things going on with taxes, stimulus checks, etc. Also at the end of this there are some other items that were passed with the CARES act that may apply to you that you should be aware of.

First of all though, I want to thank our clients for your ongoing support of our small business. It is greatly appreciated from all of you that have been clients for many years, to the new clients we get each year. Thank you.

Also, we will be taking a break for the next few weeks. For those of you we had to cancel appointments with, we are hopeful we will be able to start booking again mid-May. Governor Mills extended the emergency order through May 15. May 1 we will re-evaluate and see where we are at.

1) WHAT IS DUE DATE FOR FILING AND PAYING ANY AMOUNTS DUE ON MY RETURNS?
Due date for filing and for paying if you owe is now July 15, 2020, for both the Federal and State of Maine tax returns. No need at this point to file an extension if you will be able to file by then. Traditional IRA contribution deadline for 2019 has also been extended until July 15, 2020.

2) WHAT IF I CAN'T FILE OR PAY BY THEN?
If you aren't going to be able to file by July 15, 2020, you will need to file an extension with the IRS which will bring your new due date to October 15, 2020. The state automatically gives you a 6 month extension. Keep in mind if you do file an extension the IRS and State of Maine will charge interest on any amounts due starting on July 15th. Contact us if you need an extension filed for you.

3) WHERE IS MY STIMULUS PAYMENT?
Stimulus payments from the federal government have started to be direct deposited this week. The best place to find out all the details on the stimulus payments is on the IRS.gov website. The IRS is calling this your Economic Impact Payment (EIP) , so that is the terminology you will look for on the site.

4) HOW CAN I CHECK ON THE STATUS OF MY STIMULUS PAYMENT?
If you haven't received your payment yet you can go to the website and click on the "Get Info on Economic Impact Payments", then click on "Get My Payment" on the next screen. Input your information that is requested then you should get info on when to expect your payment.

5) THE IRS DOESN'T HAVE MY DIRECT DEPOSIT INFO, WHAT DO I DO?
The IRS is processing direct deposit payments first. If the IRS would not have your direct deposit information, because when you file your tax return you requested a check, or you owe and make that payment via check, there is a place you can go and input your direct deposit information so you can get your Economic Impact Payment that way. If you wait for a check there may be substantial delays before you receive it. On the IRS.gov website go to the "Get Info on Economic Impact Payment", click on "Get My Payment", input the information requested and it will tell you if they need your direct deposit info. We are unsure how long they are going to keep this "portal" available to input your direct deposit information.

6) DO I HAVE TO CLAIM THIS STIMULUS PAYMENT AS INCOME OR WILL IT REDUCE MY REFUND?
The answers to both are no. There will be a reconciliation of the payment you received to the payment you should have received based on the information on your 2020 return. If you received too much then you do NOT have to pay it back. However if you did not receive as much as you should have then you will get that extra on your 2020 tax return. This EIP is considered a 2020 Recovery Rebate which is an advance of a tax rebate based on your 2020 return, so the true amount you are entitled to will be based on the information on your 2020 return.

7) I AM NOT REQUIRED TO FILE A RETURN, WILL I STILL GET A STIMULUS PAYMENT?
If you do not file because you are under the filing threshold, and receive Social Security income, SSI income or Railroad Retirement Income, then NO you do not have to file. All others, yes you will. The best way to do this is on the IRS.gov website click on the "Get Info on Economic Impact Payment", then click on the "Non-Filers: Enter Payment Info Here" button, and you can input your info so you can get your payment.

😎 IF I'VE BEEN LAID OFF, OR UNABLE TO WORK BECAUSE OF LACK OF CHILDCARE, OR MYSELF OR SPOUSE OR DEPENDENT HAVE BEEN DIAGNOSED WITH CORONAVIRUS, CAN I USE MY RETIREMENT MONEY TO LIVE ON UNTITL I GET BACK TO WORK?
Under the CARES Act, you will be able to take up to $100,000 in retirement distributions and not have to pay the 10% early distribution penalty. Keep in mind these distributions may still subject to tax so you may want to do federal and state withholding. There is a special provision so if you do qualify you can take the funds, and then have 3 years to pay that money back into the retirement account and then the distribution is not taxable (in affect you are borrowing from yourself). Also you can claim the retirement distribution in equal amounts over 3 years if decide not to pay back. This is a little tricky and no forms are out yet to see how this will actually work but it is an option for you if you need it.

9) I AM RECEIVING UNEMPLOYMENT INCOME, IS THAT TAXABLE?
Yes unemployment income is taxed by both federal and state, and it is recommended you have federal and state withholding to cover the tax on that income

OTHER CARES ACT ITEMS:
1) RMD Requirement- for 2020 RMD (required minimum distributions) requirements from retirement plans have been suspended for 2020. Contact your financial institution or investment advisor if you are interested in suspending these payments. It is unclear as to whether this is an automatic suspension or if you have to request it.

2) Charitable Contributions- If you are unable to itemize, and take the standard deduction starting on your 2020 tax return you will be able to take a $300 deduction for charitable contributions if taking the standard deduction. Keep in mind in order to deduct contributions they need to be a non-profit organization. So if you donate to a fundraiser for someone's house who burned down, or someone who is sick, you CANNOT deduct these contributions. It needs to be a non-profit ORGANIZATION, and you must get a receipt.

3) And last but not least, this little ditty that some congressperson added to the CARES ACT: Amounts paid for menstrual care products are allowed as medical expenses for HSAs, Health Flexible Spending accounts. Let's see who reads all the way through and picks up on this one.

This list is by no means complete, as there are many other provisions, but I tried to mention the ones that would apply to the most people. Also, things seem to be changing on a daily basis so what is stated as of today, could change tomorrow. If you have any questions feel free to contact us. You can contact via phone,207-364-4100, leave a message as we will be checking messages. Or you can contact via Facebook, or email [email protected]. Thank you all again for your continued support.

03/27/2020

So as you may have seen the Governor has decided to extend the due date for tax returns and payments due if you owe to July 15 to match the Federal deadline. Yay!

Also, if you are funding your Traditional IRA for 2019, the deadline for funding it is also July 15th.

03/25/2020

Guidance to our clients regarding due dates for filing tax returns and payments due.

As of today, March 25, 2020:

Federal tax return due date is July 15, 2020, which is automatic and applied to all individual taxpayers. No need to file an extension, or do anything different if you have not filed by April 15th.

Federal income tax payments are also due July 15th. If you have already filed a return and owe you now have until July 15th to make payment without penalties and interest. If you have not filed a return, and believe you will owe you also have until that date to file and pay.

Federal estimated tax payments- for those of you that make quarterly estimated tax payments, the first payment which was due April 15th is now due July 15th. However, your June 15th quarterly estimated payment is still due June 15th. (Crazy I know).

State of Maine tax returns and payments ARE STILL DUE APRIL 15TH! So if you have already filed a return, and owe, you still need to make the payment as of April 15th in order to avoid penalties and interest.

If you have not yet filed your State of Maine return, the State of Maine grants you an automatic six month extension, however this is an extension of time to file, NOT to pay. If you believe you will owe and have not filed a return by April 15th you will want to send in a Maine Extension Payment Voucher along with a payment.

We are still open to our clients for dropping off your returns (you can leave in the box on our door if preferable) or you can scan and email your information to us, or fax, or mail it. We will then be in contact with you.

WE DO ASK IF YOU HAVE BEEN SICK, FEEL ILL, OR HAVE BEEN AROUND ANYONE WHO HAS BEEN SICK TO REFRAIN FROM COMING INTO THE OFFICE. THIS ALSO APPLIES TO ANYONE OR ANYONE IN YOUR HOUSEHOLD WHO HAS TRAVELED OUT OF COUNTRY OR OUT OF STATE.

We know this can be confusing so if you have any questions feel free to call. Stay safe and stay healthy!

03/19/2020

After much consideration we have decided to suspend in-office appointments for the next two weeks. We will re-evaluate on April 1. We will be contacting all clients that have appointments within that timeframe to make other arrangements.

We are asking clients to either drop off their information, or preferably if you have the means to scan and email your tax documents please do so. Or you can fax or mail them to us.

You can still drop off your tax information at the office at this time, but we request that if you have been sick in the last two weeks OR have been in contact with someone who’s is sick OR show any symptoms at all, OR have traveled out of state or out of country, please do NOT come into the office. You can leave your information in our mailbox that is on our door and we will pick it up.

Also, to clarify what due dates are now in place:
Federal returns are still due by April 15th. If you owe however, you now have until July 15th to pay the IRS without penalty or interest charged.
State of Maine returns and payment if you owe is still due April 15th as if right now.
If you think you are going to owe it is important that you get an extension filed, if you haven’t already filed a return. Please call if you need an extension and we can easily do this for you.

We apologize for any inconvenience this causes, but we want to do our part to try and keep everyone safe. Thank you for your consideration.

Contact info: Phone 207-364-4100
Fax. 207-364-4944
Email. [email protected]
Mail: 711 Crescent Ave
Rumford Me 04276

03/17/2020

In order to provide a safe environment for our clients and our staff we are asking the following:

-If you are feeling ill or have developed a fever, cough or shortness of breath, OR
-If you have traveled to a high-risk area in the past 14 days, OR
-If you have been in contact with someone who is suspected of having or has been diagnosed with COVID-19 (Coronavirus),

Then we ask that if you have a scheduled appointment please call and we will reschedule for you. OR

If you are dropping off paperwork, please leave in our mailbox outside of our door, or you can scan and email to us, or fax to us. OR

If you are coming to pick up your return copies give us a call and we will make arrangements for you to pay and we will mail you your copies.

We want to continue to meet our clients needs during this difficult time. W***y is considered high-risk with a compromised immune system so we want to make sure he stays healthy! Thank you for your cooperation.

Phone: 207-364-4100. Fax: 207-364-4944
Email: [email protected]

10/06/2010