WASHINGTON — The Internal Revenue Service today reminded small businesses that recent tax reform legislation lowered the backup withholding tax rate to 24 percent and the withholding rate that usually applies to bonuses and other supplemental wages to 22 percent. The agency also urged employers to encourage their employees to check their withholding using the IRS Withholding Calculator. [Read more…]
All taxpayers will file using 2018 Form 1040; Forms 1040A and 1040EZ no longer available
All taxpayers will file using 2018 Form 1040; Forms 1040A and 1040EZ no longer available
As the April filing deadline approaches, IRS reminds taxpayers that Form 1040 has been redesigned for tax year 2018. The revised form consolidates Forms 1040, 1040A and 1040-EZ into one form that all individual taxpayers will use to file their 2018 federal income tax return.
Forms 1040-A and 1040-EZ are no longer available to file 2018 taxes. Taxpayers who used one of these forms in the past will now file Form 1040. Some forms and publications released in 2017 or early 2018 may still have references to Form 1040A or Form 1040EZ. Taxpayers should disregard these references and refer to the Form 1040 instructions for more information.
The new form uses a building block approach that can be supplemented with additional schedules as needed. Taxpayers with straightforward tax situations will only need to file the Form 1040 with no additional schedules.
People who use tax software will still follow the steps they’re familiar with from previous years. Since nearly 90 percent of taxpayers now use tax software, the IRS expects the change to Form 1040 and its schedules to be seamless for those who file electronically.
Electronic filers may not notice any changes because the tax return preparation software will automatically use their answers to the tax questions to complete the Form 1040 and any needed schedules.
For taxpayers who filed paper returns in the past and are concerned about these changes, this year may be the year to consider the benefits of filing electronically. Using tax software is a convenient, safe and secure way to prepare and e-file an accurate tax return.
More information:
Here are five facts about the new Form 1040
Here are five facts about the new Form 1040
There are several changes to the 2018 Form 1040. However, taxpayers who file electronically may not notice the changes as the tax return preparation software guides people through the filing process.
The IRS worked closely with its partners in the tax return preparation and tax software industries to prepare for tax reform and tax form changes affecting tax year 2018, including the Form 1040. This ongoing collaboration ensures that taxpayers can continue to rely on the IRS, tax professionals and tax software programs when it’s time to file their tax returns.
Here are five things taxpayers need to know about the 2018 Form 1040.
- The 2018 Form 1040 replaces Forms 1040,1040A and 1040EZ with one 2018 Form 1040 that all taxpayers will file.
- Forms 1040A and 1040EZ are no longer available. Taxpayers who used one of these forms in the past will now file Form 1040.
- The 2018 Form 1040 uses a “building block” approach and allows taxpayers to add only the schedules they need to their 2018 tax return.
- The most commonly used lines on the prior year form are still on the form. Other lines are moved to new schedules and are organized by category. These categories include income, adjustments to income, nonrefundable credits, taxes, payments, and refundable credits.
- Many taxpayers will only need to file Form 1040 and no schedules. Those with more complicated tax returns will need to complete one or more of the 2018 Form 1040 Schedules along with their Form 1040. These taxpayers include people claiming certain deductions or credits, or owing additional taxes.
Electronic filers may not notice any changes because the tax return preparation software will automatically use their answers to the tax questions to complete the Form 1040 and any needed schedules.
For taxpayers who filed paper returns in the past and are concerned about these changes, this year may be the year to consider the benefits of filing electronically. Using tax software is convenient, safe and a secure way to prepare and e-file an accurate tax return.
More information:
About the Form 1040, U.S. Individual Income Tax Return
Questions and Answers About the 2018 Form 1040
Get Ready for Tax Filing Season
Publication 5307, Tax Reform: Basics for Individuals and Families
Publication 17, Your Federal Income Tax for Individuals
IRS Tax Map
Ten things for taxpayers to think about when choosing a tax preparer
Ten things for taxpayers to think about when choosing a tax preparer
It’s the time of the year when many taxpayers choose a tax preparer to help file a tax return. These taxpayers should choose their tax return preparer wisely. This is because taxpayers are responsible for all the information on their income tax return. That’s true no matter who prepares the return.
Here are ten tips for taxpayers to remember when selecting a preparer:
- Check the Preparer’s Qualifications. People can use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This tool helps taxpayers find a tax return preparer with specific qualifications. The directory is a searchable and sortable listing of preparers.
- Check the Preparer’s History. Taxpayers can ask the Better Business Bureau about the preparer. Check for disciplinary actions and the license status for credentialed preparers. For CPAs, people can check with the State Board of Accountancy. For attorneys, they can check with the State Bar Association. For Enrolled Agents, taxpayers can go to the verify enrolled agent status page on IRS.gov or check the directory.
- Ask about Service Fees. People should avoid preparers who base fees on a percentage of the refund or who boast bigger refunds than their competition. When asking about a preparer’s services and fees, don’t give them tax documents, Social Security numbers or other information.
- Ask to E-File. Taxpayers should make sure their preparer offers IRS e-file. The quickest way for taxpayers to get their refund is to electronically file their federal tax return and use direct deposit.
- Make Sure the Preparer is Available. Taxpayers may want to contact their preparer after this year’s April 15 due date. People should avoid fly-by-night preparers.
- Provide Records and Receipts. Good preparers will ask to see a taxpayer’s records and receipts. They’ll ask questions to figure things like the total income, tax deductions and credits.
- Never Sign a Blank Return. Taxpayers should not use a tax preparer who asks them to sign a blank tax form.
- Review Before Signing. Before signing a tax return, the taxpayer should review it. They should ask questions if something is not clear. Taxpayers should feel comfortable with the accuracy of their return before they sign it. They should also make sure that their refund goes directly to them – not to the preparer’s bank account. The taxpayer should review the routing and bank account number on the completed return. The preparer should give you a copy of the completed tax return.
- Ensure the Preparer Signs and Includes Their PTIN. All paid tax preparers must have a Preparer Tax Identification Number. By law, paid preparers must sign returns and include their PTIN.
- Report Abusive Tax Preparers to the IRS. Most tax return preparers are honest and provide great service to their clients. However, some preparers are dishonest. People can report abusive tax preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer. If a taxpayer suspects a tax preparer filed or changed their return without the taxpayer’s consent, they should file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit.
Here’s what taxpayers should consider when determining if they need to file
Here’s what taxpayers should consider when determining if they need to file
As people prepare to file their taxes, there are things to consider. They will want to determine if they need to file and the best way to do so.
For tax year 2018, all individual taxpayers will file using the new Form 1040. Forms 1040A and 1040EZ are no longer available. Taxpayers who previously filed these forms will now file Form 1040. The new Form 1040 uses a “building block” approach allowing individuals to add only the schedules they need to their 2018 federal tax return. Taxpayers with more complicated returns will need to complete one or more of the new Form 1040 Schedules. This group of taxpayers includes those who claim certain deductions or credits, or who owe additional taxes.
Individuals who filed their federal tax return electronically last year may not notice any changes, as the tax return preparation software will automatically use their answers to the tax questions to complete the Form 1040 and any needed schedules.
Here are three more things for people to keep in mind as they prepare to file their taxes:
Who is required to file. In most cases, income, filing status and age determine if a taxpayer must file a tax return. Other rules may apply if the taxpayer is self-employed or if they are a dependent of another person. For example, if a taxpayer is single and younger than age 65, they must file if their income was at least $12,000. There are other instances when a taxpayer must file. Taxpayers can visit IRS.gov/filing for more information.
Filing to get a refund. Even if a taxpayer doesn’t have to file, they should consider filing a tax return if they can get money back. If a taxpayer answers “yes” to any of these questions, they could be due a refund:
- Did my employer withhold federal income tax from my pay?
- Did I make estimated tax payments?
- Did I overpay on my 2017 tax return and have it applied to 2018?
- Am I eligible for certain refundable credits such as, the earned income tax credit
Taxpayers can file for free. Join the millions of Americans who safely file their taxes and save money using IRS Free File. Seventy percent of the nation’s taxpayers are eligible for IRS Free File. The IRS’s commercial partners offer free brand-name software to about 100 million individuals and families with incomes of $66,000 or less. Taxpayers who earned more can use Free File Fillable Forms. This option allows taxpayers to complete IRS forms electronically. It is best for those who are comfortable doing their own taxes.
Taxpayers can also use the Interactive Tax Assistant tool on IRS.gov to answer many tax questions.. They should look for “Do I need to file a return?” under general topics.
All taxpayers should keep a copy of their tax return. Taxpayers using a software product for the first time may need their adjusted gross income amount from their prior-year tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return.
Think about this before Filing your taxes during the shutdown
Read this before filing your taxes during a government shutdown
The IRS has just announced it will recall 46,000 furloughed workers to do their duty of processing tax returns and issuing refunds. An agency-wide furlough began on December 22, 2018.
The return of the employees, who will work without pay until the partial government shutdown ends, means you can expect to get your refund in a timely manner this year — despite some back-and-forth speculation.
Now, the IRS has new advice to guide you through the process of filing this year. It outlines what to do, what not to do and what to expect as millions of Americans get ready to file their taxes at this unprecedented time in our nation’s history.
The IRS highly recommends that you e-file
Paper returns will be accepted, but the IRS is definitely doing everything it can to steer people toward e-filing because of the unusual circumstances surrounding this year’s tax season.
“The IRS strongly encourages people to file their tax returns electronically to minimize errors and for faster refunds,” the agency notes.
Think twice before picking up the phone and trying to call
In the coming days, the IRS will allocate a certain portion of those 46,000 returning furloughed workers to the phone banks. However, there’s no live telephone customer service assistance just yet.
If you do call, make sure you have plenty of patience and keep your expectations in check.
“Due to the heavier call volume, taxpayers should be prepared for longer wait times,” the IRS notes.
The preferred alternative is to use IRS.gov to address any questions you may have this year.
Non-return mail won’t be dealt with until the shutdown is over
Have to correspond with the IRS beyond just sending in a paper tax return? You should also be prepared for a long wait. The agency says it won’t get to that mail until after the shutdown ends.
“Taxpayers who mail in correspondence to the IRS during this period should expect a lengthy delay for a response after the IRS reopens due to a growing correspondence backlog,” the IRS notes.
In-person service won’t be available
The IRS walk-in taxpayer assistance centers you may be familiar with are closed until further notice.
That means the offices won’t be open to accept large cash payments. No in-person assistance for taxpayers facing a hardship will be available. And there won’t be any help for those who need to establish their identity by visiting an IRS office following an identity theft.
All of that will have to wait until the government showdown is resolved.
In light of that, why not just do a free credit freeze and limit the ability of criminals to steal your identity? We’ve got details on how you can do it here.
The IRS is cancelling all taxpayer appointments
Assume any meetings you have scheduled with the IRS related to “examinations (audits), collection, Appeals or Taxpayer Advocate cases” are cancelled for now.
You’ll hear from IRS personnel when they return to the job to reschedule for a future date after the government reopens.
Tax-exempt status applications are on hold
Seeking tax-exempt status for your organization? The IRS says it won’t accept new applications at this time. Nor will it make determinations about existing applications until the government reopens.
The IRS won’t conduct any audits during the shutdown
The tax laws of our nation still apply during the partial government shutdown. Criminal investigation work and basic enforcement activity like examining returns for fraud and identity theft will continue unabated.
However, the IRS will cut back in some other areas.
“During this period, the IRS will not be conducting audits, but automated initial contact letters will continue to be mailed,” the IRS writes. “No collection activity will generally occur except for automated collection activity.”
Passport certification will not take place
This is a very difficult time to get a passport if you have international travel on the horizon!
“The IRS will not be certifying for the State Department any individuals for passport eligibility,” the agency notes.
The best way to check your refund status remains the same
As in years past, the IRS says the best way to determine the status of your refund is to use the “Where’s My Refund?” tool or to download the IRS2Go mobile app.
All automated apps from the IRS like these two remain up and running during the shutdown.
Special Thanks to Theo Thimou with Clark Financial for “original” content/data share
When Can I file my taxes for 2018
When Can I file my taxes for 2018
Tax filings can begin January 28, 2019 even with a partial government shutdown.
WASHINGTON ― Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled.
****2019 Important Tax Deadlines****
The New Tax Laws and YOU!
The recently passed overhaul of the U.S. tax code is already affecting the way many companies do business and how that relates to individual tax payers.
People who have studied the new law—which goes into effect starting with the 2018 tax year—say that most of us will pay less in taxes in the next few years, thanks to lower tax rates and higher standard deductions.
But the loss of some prized tax breaks and new caps on others like state and local taxes could result in higher tax bills in April 2019 for some older taxpayers, particularly those living in states with high tax rates. And over time, some of the benefits of the new tax bill will fade away; experts project that a majority of taxpayers will pay more within 10 years.
Ready to get the “Eggg Rolling”?
Click image to left for for our 2018 Tax Introduction
letter and instructions.
In need of an accountant/bookkeeper for your day to day business or personal life click here
IRS confirms tax filing season to begin January 28
IRS confirms tax filing season to begin January 28
WASHINGTON ― Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled.
“We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment to the taxpayers during this period,” said IRS Commissioner Chuck Rettig.
Congress directed the payment of all tax refunds through a permanent, indefinite appropriation (31 U.S.C. 1324), and the IRS has consistently been of the view that it has authority to pay refunds despite a lapse in annual appropriations. Although in 2011 the Office of Management and Budget (OMB) directed the IRS not to pay refunds during a lapse, OMB has reviewed the relevant law at Treasury’s request and concluded that IRS may pay tax refunds during a lapse.
The IRS will be recalling a significant portion of its workforce, currently furloughed as part of the government shutdown, to work. Additional details for the IRS filing season will be included in an updated FY2019 Lapsed Appropriations Contingency Plan to be released publicly in the coming days.
“IRS employees have been hard at work over the past year to implement the biggest tax law changes the nation has seen in more than 30 years,” said Rettig.
As in past years, the IRS will begin accepting and processing individual tax returns once the filing season begins. For taxpayers who usually file early in the year and have all of the needed documentation, there is no need to wait to file. They should file when they are ready to submit a complete and accurate tax return.
The filing deadline to submit 2018 tax returns is Monday, April 15, 2019 for most taxpayers. Because of the Patriots’ Day holiday on April 15 in Maine and Massachusetts and the Emancipation Day holiday on April 16 in the District of Columbia, taxpayers who live in Maine or Massachusetts have until April 17, 2019 to file their returns.
Software companies and tax professionals will be accepting and preparing tax returns before Jan. 28 and then will submit the returns when the IRS systems open later this month. The IRS strongly encourages people to file their tax returns electronically to minimize errors and for faster refunds.
What taxpayers should know about amending a tax return
What taxpayers should know about amending a tax return
Taxpayers who discover they made a mistake on their tax returns after filing can file an amended tax return to correct it. This includes things like changing the filing status, and correcting income, credits or deductions.
Here are some tips for taxpayers who need to amend a tax return.
- Complete and mail the paper Form 1040X, Amended U.S. Individual Income Tax Return. Taxpayers must file an amended return on paper whether they filed the original return on paper or electronically. Filers should mail the Form 1040X to the address listed in the form’s instructions. However, taxpayers filing Form 1040X in response to a notice received from the IRS, should mail it to the address shown on the notice.
- If taxpayers used other IRS forms or schedules to make changes, they should attach those schedules to their Form 1040X.
- Taxpayers should not amend a tax return to correct math errors; the IRS will make the math corrections for the taxpayers.
- Taxpayers should also not amend if they forgot to include a required form or schedule. The IRS will mail a request about the missing item.
- Anyone amending tax returns for more than one year will need a separate 1040X for each tax year. They should mail each tax year’s Form 1040X in separate envelopes.
- Taxpayers should wait for the refund from their original tax return before filing an amended return. They can cash the refund check from the original return before receiving any additional refund.
- Taxpayers filing an amended return because they owe more tax should file Form 1040X and pay the tax as soon as possible. This will limit interest and penalty charges.
- Generally, to claim a refund, taxpayers must file a Form 1040X within three years from the date they timely filed their original tax return or within two years from the date the person pays the tax – usually April 15 – whichever is later.
- Taxpayers can track the status of an amended return three weeks after mailing using “Where’s My Amended Return?” Processing can take up to 16 weeks.
Business Travel, can become a Nightmare!
Motivator excursions, meetings and different kinds of worker travel are basic courses for businesses to prepare, compensate and inspire their best representatives and chiefs. In any case, off-site work occasions can likewise be a legitimate land mine. From wounds to ambushes to liquor related episodes, your independent venture needs laborers’ comp scope to be set up for the different issues that can surface on work-supported treks—and possibly prompt exorbitant claims.
Here are probably the most widely recognized significant issues that jump up amid worker excursions and gatherings, alongside genuine circumstances:
Genuine damage.
In 2006, Danny Douglas, a PC bolster examiner for Advertisement Astra in Overland Stop, Kansas, went to an organization supported “group building” occasion at an indoor go-truck hustling office. Representatives were given a short get up and go discuss an up and coming item and were then isolated into groups and told they could win prizes by going the quickest. While adjusting a bend at 25 miles for every hour, Douglas was tossed from his go-truck and arrived on his side and endured a broke rib and lung damage that required prompt medical procedure.
His organization at first declined to pay laborers pay since it guaranteed the movement was willful; a judge later decided that the organization must pay specialists’ comp, as indicated by SafetyNewsAlert.com. The case in the long run achieved the Kansas Incomparable Court, which concurred that it seemed likely that Douglas was required to either be working or at the go-truck office, however said the state’s specialist remuneration board expected to reconsider the case utilizing an alternate test.
Representative wrongdoing.
A previous Microsoft director in the Assembled Kingdom, Simon Negus, was fired for “untrustworthiness” after he was professedly observed kissing another Microsoft worker at an Atlanta meeting in 2009. The organization rejected Negus the next September and sued him for $126,000—some portion of his 2008 marking reward—and for another piece of his vacation pay, as indicated by Bloomberg. Negus later counter-sued. For another situation of asserted offense, no less than one programming designer was laid off from his manager in 2013 after a tech blogger caught him and another engineer making jokes sexual in nature about “dongles” at PyCon, a Python designer meeting in Santa Clause Clara, California, as indicated by ArsTechnica.com.
Sickness and sustenance harming.
Legionnaire’s sickness is maybe the most scandalous instance of a noteworthy ailment episode amid a tradition (of the American Army in 1976). Be that as it may, representatives becoming ill amid a business related occasion isn’t so bizarre, truly. There’s dependably the hazard that representatives they will get sustenance harming or get an infectious ailment when going for work. Prior this year, indeed, in excess of 100 participants of—amusingly—a nourishment security summit in Baltimore, Maryland clearly got tired after one of the dinners, as per NBC News. Around 12 hours after the dinner, numerous visitors revealed queasiness, the runs and different side effects regularly connected with nourishment borne ailments. No participants were hospitalized and nourishment security overseers couldn’t promptly find the reason for the disease. Episodes, for example, this are simply one more motivation behind why organizations ought to consider a laborers’ pay protection design.
Worker captured.
At the point when outside the workplace—notwithstanding when actually on the clock—in some cases representatives can get stuck in an unfortunate situation. A judge in Guadalupe Area, Texas, Mike Wiggins, was captured on medicate ownership when going to a gathering in 2012. A laborer at the inn where the meeting was occurring noticed pot amid the gathering and followed it back to Wiggins’ room, as per KWTX.com.
Following stages: Would you say you are hoping to deal with your representatives all the more viably however don’t have room schedule-wise to stay aware of the most recent research and patterns in ability administration? We have you secured with the week by week Little Business Ahead Bulletin. Join today and begin accepting the week after week pamphlet stuffed with the most recent devices and assets to enable you to maintain an effective business.