Dan Musick CPA PLLC

07/22/2024

Internet service - including our portal system and VOIP phone system - is currently down at the office. We are working to restore connectivity and hope to be back online today.

02/17/2024

This week I received an email saying we were in the top three in the voting for “best accountant/best tax preparer“ in this year‘s “Best of Hays County” awards.

This is the fifth time in a row that we’ve been in the top three, and we have won the award twice.

We are beyond humbled for the support you guys have shown us. Thank you all so much!

01/16/2024

Today the IRS announced that they will start processing 2023 tax returns on January 29th, 2024.

Preparers and taxpayers can submit returns before this date, but they will be held in queue by the IRS until they open their computers for processing.

Business returns are already being accepted as of January 11th.

04/10/2023

Due to a modem failure, our Internet is currently down. This unfortunately includes access to the client portals.

We are working to get the situation resolved, and hope to be up and running again by close of business today.

01/11/2023

The IRS recently announced that they will begin accepting electronically-filed 2022 tax returns on Monday, January 23rd.

Please remember that returns that include earned income credit or additional child tax credit claims may be subject to extra verification and refunds may be delayed on these returns.

10/19/2022

The IRS issued another warning today for companies considering filing or who have filed credit claims under the "employee retention tax credit" (ERTC). IRS warns that companies may be filing fraudulent claims and also that the ERTC assistance firms are NOT informing their clients that prior year returns need to be amended to reduce wages for amount received under ERTC (which will drive up income and create additional income tax liability).

If you applied or plan to apply for an ERTC claim please be sure to inform your CPA so they can properly advise you of the next steps once the refunds are received.

IR-2022-183, October 19, 2022 — The Internal Revenue Service today warned employers to be wary of third parties who are advising them to claim the Employee Retention Credit (ERC) when they may not qualify. Some third parties are taking improper positions related to taxpayer eligibility for and com...

09/30/2022

The IRS recently announced they will soon begin auditing the first round of Employee Retention Tax Credit (ERTC) claims.

The ERTC is a potentially huge tax break for employers who kept workers employed during the pandemic despite a downturn in sales during that time.

Due to the generous (and complex) nature of the potential credit, an entire chattel industry of "ERTC assistance companies" has popped up in recent months. These companies actively solicit business owners, promising the potential of hundreds of thousands of dollars in tax credits.

If you are a business owner that is considering filing a claim under the ERTC, it's critical that you research the firms offering this support....most of them charge a percentage of the refund (a potential violation of IRS Circular 230 ethics rules for firms licensed to practice before the IRS) and they may not be there to support your claim if the IRS eventually audits the claim.

Some red flags to consider:

1. they offer to work for a percentage of the refund
2. they say that they will calculate the credit but not prepare the amended tax returns to actually claim the credit
3. there is no BBB history or other online presence for the company
4. they promise specific refund amounts before even looking at your payroll records

08/31/2022

Last week, the IRS announced a sweeping penalty abatement program that will waive late filing penalties for most types of returns filed for the 2019 and 2020 tax years.

The penalty waiver will apply to tax returns for individuals (Form 1040), Corporations (Forms 1120 or 1120S), Partnerships (Form 1065), certain estates and trusts (Form 1041), and most year end information return filings (W2s/1099s).

If you have not filed your 2019 or 2020 returns, you can still get the penalty waiver by filing both returns before September 30, 2022. Information return (W2/1099) penalties will only be waived if the appropriate forms were filed before August 1 of the following year.

If you filed your return late and were charged a penalty, the IRS will automatically waive and refund the penalty - you do not have to apply for this relief. The IRS estimates that most refunds will be issued via check to the taxpayer's last known address by the end of September of this year.

The penalty waiver only applies to the failure to file penalty - failure to pay penalties and interest charged on unpaid balances will not be abated.

06/27/2022

Wondering why the IRS hasn't processed that tax return that you mailed in? Join the crowd.

https://www.cpapracticeadvisor.com/tax-compliance/news/21272012/irs-still-has-backlog-of-213-million-tax-returns?oly_enc_id=7333F3856512E0B

02/14/2022

In a "what took so long?" move, the IRS has finally announced that it would suspend issuing several types of automated notices to taxpayers, including collection notices and notices indicating that the IRS did not receive the taxpayer's tax return.

The IRS faces an enormous backlog of letters, responses, and returns that have to be manually processed; which has caused a ton of confusion in recent months as taxpayers were being sent through collections for balances not owed and being dunned for items that had already been turned in.

No word on how long the suspension would last, other than "until the backlog is cleared". More details here:

https://www.cpapracticeadvisor.com/tax-compliance/news/21256303/irs-suspends-sending-most-notices-due-to-backlog-and-errors?oly_enc_id=7333F3856512E0B

01/05/2022

The IRS announced that they are sending out letters to anyone who received the third Stimulus payment and/or the Advance Child Tax Credit payments during 2021.

Please save these letters and turn them in with your tax documents. They are important! Last tax season, by far our #1 issue with returns was clients not knowing how much they had received in Stimulus payments.

12/20/2021

The IRS recently announced that "opening day" for the 2022 tax season (for filing 2021 tax returns) will be January 31st. Taxpayers will not be able to file returns before this date.

This is about a week later than their normal opening day; the delay is being attributed to ongoing challenges in reporting COVID tax provisions.

The IRS also announced the refunds for returns showing Earned Income Credit (EITC) or the Child Tax Credit (CTC) may be delayed until March in order to verify the claims.