Don Brown Tax Service, Inc.

"Don't Let The IRS Keep Yo ur Money!"

Two (2) Enrolled Agents on si te! If you’re looking for a fi rm that will focus on your individu al needs, and always treat you li ke a client who matters, look no furth er.

Our firm is large enough to off er a full range of professional servic es, but small enough to give y ou the individual attention that you deser ve. We will thoroughly and conscientiously stu dy your personal situation, and tailor o ur advice to your specific needs.

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Timeline photos 05/02/2022

Missed the April 18 IRS Deadli ne? File Now to Reduce Penalties

The I RS due date for filing 2021 t ax returns has passed, but taxpayers w ho missed the deadline still have ma ny reasons to file as soon as possib le. Both those who owe tax a nd those entitled to refunds will benef it from filing a 2021 return witho ut further delay.

If you owe tax a nd did not request an automatic fili ng extension, filing your return now wi ll minimize the late filing penalty. Ev en if you did request an extensi on, remember that the extension applies on ly to filing your return, not to payi ng your tax. By estimating how mu ch tax you owe and paying n ow, you can reduce other IRS penalti es and interest charges.

Some federal tax credi ts are also refundable, meaning that if y ou qualify, you may receive an I RS refund even if you owed no t ax or had no tax withheld duri ng the year. However, you generally mu st file a return to claim the se credits and receive your refund. Comm on refundable credits include the Child T ax Credit (CTC), Earned Income Tax Cred it (EITC), Recovery Rebate Credit, and Chi ld and Dependent Care Credit.

Timeline photos 04/25/2022

Refund Scams - Did You Know?

As tax filing season ends and individua ls start receiving their refunds, taxpayers shou ld be aware of a refund sc am that may be making the rounds.

T he scammer starts by stealing taxpayer informati on through hacks, uses the stolen informati on to file a tax return, a nd then gets the refund deposited in to the victim's account. They then conta ct the victim and pretend to be t he IRS saying that it was a mistak en deposit and to return the mon ey to them. The scammers may ma ke threats for you to return t he 'erroneous deposit' using a recorded ca ll message, or pose as debt collecti on agency officials acting on behalf of t he IRS.

The IRS has established procedures f or taxpayers to follow in the genui ne case of a mistaken refund th at can be found here:

Timeline photos 04/20/2022

Possible Reasons for 2021 IRS T ax Refund Delays

Most taxpayers who file the ir returns electronically and request direct depos it generally receive their IRS refunds with in 21 days. However, a variety of facto rs can result in longer return processi ng times. The IRS recently reminded taxpaye rs of the most common causes of t ax refund delays, including:

- The return w as mailed on paper instead of fil ed electronically. Filing a paper return typical ly doubles the expected wait time f or a refund.
- The IRS needs mo re information to process the return. In th is case, you will generally receive an I RS letter requesting the information.
- The retu rn did not include banking information f or direct deposit, so the IRS mu st mail a paper check.
- The retu rn includes a request for an Injur ed Spouse refund allocation.

The IRS cannot provi de information about refund status until at lea st 21 days after a return w as electronically filed, or six weeks aft er a paper return was mailed.

IRS Where 's My Refund Tool:

Timeline photos 04/14/2022

Filing Extensions and Minimizing Penalties – D id You Know?

Taxpayers who request an automat ic extension to file their 2021 feder al income tax returns may file anyti me up until October 17th, 2022. Rememb er, however, that an IRS extension is on ly an extension to file tax retur ns, NOT an extension to pay a ny tax owed. Taxes not paid by t he April 18th payment deadline may be subje ct to late penalties and interest charges.

Electron ic payments may be made using t he IRS online payment portal (link belo w). The IRS urges those who cann ot pay what they owe at th is time to pay whatever amount th ey can, and then apply for an installme nt plan to pay off the remaini ng balance.

You should still file your tax es, even if you can't pay, as t he failure-to-file penalty may be 10 tim es more than the failure-to-pay penalty.

IRS Onli ne Payment Portal:

Timeline photos 04/11/2022

Multiple IRS Deadlines Fall on Apr il 18th – Important Reminders

2021 INDIVIDUAL FEDER AL TAX RETURN FILING: U.S. resident individu al and joint tax filers, along wi th U.S. citizens must file 2021 Fo rm 1040 or 1040-SR and pay a ny tax due. If you cannot fi le your return by the deadline, reque st an automatic filing extension to Octob er 17th. However, if you expect to o we tax, estimate the amount and p ay it by April 18th to avo id late payment penalties.

FIRST 2022 QUARTER LY ESTIMATED TAX PAYMENTS: If you ea rn income and either do not p ay federal taxes through paycheck withholding or do n ot expect your withholding to cover yo ur 2022 tax obligations, you may ne ed to make quarterly estimated tax paymen ts. In particular, this requirement applies to ma ny self-employed taxpayers and “gig economy” worke rs. The first quarterly estimated payments f or 2022 are due on April 18 th, 2022.

DEADLINE FOR 2021 IRA AND H SA CONTRIBUTIONS: You may be able to tre at contributions made by April 18th to yo ur IRA or health savings account (H SA) as 2021 contributions, provided you ha ve not reached your 2021 contribution limit.

20 21 FEDERAL TAX AND 2022 ESTIMATED T AX DEADLINES FOR CORPORATIONS: Corporations must fi le their 2021 federal income tax retur ns and pay any tax due, a nd also make their first 2022 estimat ed income tax payments, by April 18th.

T he IRS urges taxpayers who cannot p ay the tax they owe to fi le by the April 18th deadline a nd pay what they can. By maki ng a payment in any amount n ow and setting up a payment pl an, you may be able to redu ce penalties and interest charges.

Timeline photos 04/07/2022

Foreign Bank and Financial Accounts Reporti ng – Did You Know?

Taxpayers with forei gn accounts, such as bank accounts or mutu al funds, generally must disclose this informati on on their tax returns. In mo st cases, U.S. individuals, trusts, estates a nd businesses with foreign accounts that total ed over $10,000 any time in 2021 mu st also file a foreign bank accoun ts report, or FBAR by April 15, 2022.

The official name of the FB AR form is FinCEN Form 114, Repo rt of Foreign Bank and Financial Accoun ts. FinCEN stands for the Financial Crim es Enforcement Network, a separate agency fr om the IRS. You must submit t he FBAR directly to FinCEN – y ou cannot file it with your t ax return. The standard FBAR filing deadli ne is April 15, although filers typical ly qualify for an automatic extension to Octob er 15.

Timeline photos 04/04/2022

Tax Refund Myths – Did Y ou Know?

There can be uncertainty around t he timeline for receiving IRS tax refun ds. Here are a few common questio ns related to these myths, along wi th real-world answers.

Q: Can I get a mo re accurate refund date by calling t he IRS or my tax return preparer?
No. The IRS Where's My Refu nd online portal (link below) and t he IRS2Go app provide the most accura te information available on the timeline f or your tax refund.

Q: Can I fi nd out my refund date by orderi ng a tax transcript from the IRS?
This popular myth is false. U se the Where's My Refund portal or IRS2 Go app to get an estimated da te for your refund.

Q: The Where's My Refu nd Portal or IRS2Go app does n ot show a refund deposit or maili ng date. Does this mean that t he system is not working?
A: Generally, if the se sources cannot provide a refund da te, it just means that the I RS has not finished processing your retu rn. While the IRS issues most refun ds within 21 days for electronically fil ed returns, processing can take longer f or a variety of reasons.

Q: What do es it mean if Where's My Refu nd shows a different refund amount th an I expected?
A: Most likely, the I RS had to make an adjustment to yo ur return. You will receive an offici al IRS or U.S. Treasury letter explaini ng any change to your refund amount.

If I get a 2021 t ax refund, does that mean my withholdi ng amounts are correct for 2022?
A: N ot necessarily. Regardless of your refund amou nt, it is always good to che ck the IRS Withholding Estimator Tool (li nk below) periodically to make sure y ou are staying on track.

IRS Where's My Refu nd portal:
IRS Withholding Estimator tool:

Timeline photos 03/31/2022

Federal Tax Extensions - Did Y ou Know?

If you file for an extensi on on your federal income tax retu rn, you have until Oct 15th, 2022 to fi le your taxes but you still ha ve to pay any taxes due by Apr il 18th, 2022. Bear in mind th at this extension applies only to FILI NG your return; the payment due da te will remain as April 18th. Faili ng to pay the full amount y ou owe by April 18th may resu lt in late fees, interest or oth er penalties.

If you are a US citiz en or green card holder living overse as, or active military on duty outsi de the United States on the regul ar due date of the return, y ou may be able to get an automat ic two month extension to file yo ur return and pay any taxes d ue.

Timeline photos 03/28/2022

Unclaimed 2018 IRS Refunds Deadline – D id You Know?

The IRS has issued a remind er that time is running out to cla im your 2018 tax refund if y ou did not file a 2018 feder al return. The deadline to file a 2018 I RS return and claim your refund is Apr il 18, 2022. Filing a missed 2018 retu rn may also qualify for the Earn ed Income Tax Credit (EITC) if y ou meet the requirements.

By law, there is a limit ed three year window to claim a refu nd. After that date, unclaimed 2018 feder al tax refunds will become the proper ty of the U.S. Treasury.

Timeline photos 03/24/2022

Reporting Cryptocurrency Transactions - Did Y ou Know?

If you had any involvement wi th cryptocurrency or other virtual currencies in 20 21, you generally must disclose this activi ty on your tax return. Form 1040 includ es the question, “At any time duri ng 2021, did you receive, sell, exchan ge, or otherwise dispose of any financi al interest in any virtual currency?”

Among oth er situations, you must check the “YE S” box for the virtual currency questi on if any of the following occurr ed in 2021:

- You received cryptocurrency as payme nt for property, goods or services.
- Y ou used cryptocurrency to pay for proper ty, goods or services.
- You received cryptocurren cy for mining or staking activities, or as t he result of a “hard fork.”
- Y ou purchased cryptocurrency through a trading platfo rm or from another individual.
- You so ld cryptocurrency for cash or exchanged it f or another real or virtual currency.
- Y ou gave away or received cryptocurrency in a transacti on that did not qualify as a bo na fide gift.

Because the IRS designates cryptocurren cy as property, any cryptocurrency transaction cou ld have tax impacts. If y ou received cryptocurrency as income, it shou ld be reported just like you wou ld if you had gotten the payme nt in cash. Other cryptocurrency transactions m ay involve a taxable capital gain. Capit al gains must be reported separately fr om ordinary income, and may be tax ed at different rates.

The U.S. Treasury h as significantly stepped up enforcement of cryptocurren cy tax rules since 2020, so t he IRS urges all taxpayers to ful ly disclose their transactions. A tax profession al can help you properly report yo ur cryptocurrency activities, and figure any resulti ng income or capital gains tax.

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Don Brown Tax Service, Inc.  2 EA 's on site!
Don Brown Tax Service, Inc.  2 EA 's on site!




1001 S Cherry Ln
White Settlement, TX

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