Jayne Athey, Accounting

Keeping well-organized records can make it easier to prepare your tax return this filing season. Accurate records may help you find overlooked credits and deductions or avoid errors that may result in delays that slow your refund. for tax filing season by checking twice for all your documents before you file.

Learn more: www.irs.gov/getready

Did you document your vehicle mileage on 12/31 or 1/1? If not, grab your numbers today!

Do you own/operate a business with an entity filed with the state?

https://boiefiling.fincen.gov/boir/html

Starting from January 1, 2024, many companies are required to report beneficial ownership information (BOI) to the U.S. government1. The rule requires reporting companies to file reports with the Financial Crimes Enforcement Network (FinCEN) that identify two categories of individuals: the beneficial owners of the entity and the company applicants of the entity2.

Most registered business entities, like Limited Liability Companies (LLCs) and Corporations, must file a BOI report3. Additionally, corporations, LLCs, and other entities created under the auspices of a U.S. state’s Secretary of State office, or foreign companies registered to do business in the U.S., must also file a BOI report4.

If you have ownership in a business with an entity structure such as an LLC, partnership, S-Corp, or C-Corp, you will likely be required to file a BOI report5. Please note that there is no fee to file this form5. However, it is anticipated that it will cost reporting companies with simple management and ownership structures approximately $85 apiece to prepare and submit an initial BOI report2.

BOI E-FILING

As part of efforts to improve taxpayer service, the will test out a new Direct File tool in the 2024 tax season. The pilot will allow eligible taxpayers in 13 states to file their federal tax returns directly with the IRS for free. Learn more at: https://ow.ly/5lXM50PXTtR

New Ohio employee withholding tables beginning November 1, 2023.

Employer Withholding Tables A lock or https:// means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.

For all self-employed - remember to document your year-end mileage on all vehicles used for work! If you missed doing it on the 31st, then do it today!

There is a rumor that DFAS has an article telling military retirees that if they have service-related disability, their retirement is not taxable.

Please note that although disability payments are not taxable, retirement that comes on a 1099-R IS federally taxable. Please refer to the chart at this site before changing any withholding amounts to zero.

Defense Finance and Accounting Service > RetiredMilitary > disability > comparison The official website of the Defense Finance Accounting Service (DFAS)

Closed Monday, Martin Luther King Day, January 17th for weather. I can still be reached via phone.

MILEAGE: For all self-employed, document the mileage today on all vehicles so that the total miles for the year can be easily established.

Happy New Year! May this one be much better! :)

https://www.newsbreak.com/news/2344227832999/irs-direct-deposit-did-you-get-surprise-money-today-here-s-what-to-know-about-unexpected-refunds?s=oldSite&ss=a8

IRS direct deposit: Did you get surprise money today? Here’s what to know about unexpected refunds - NewsBreak Some happy Americans woke up to a pleasant surprise this morning: The Internal Revenue Service (IRS) delivered money into their bank accounts. No, it’s not a fourth stimulus check. All summer long, the IRS has been distributing additional refund payments to taxpayers who overpaid on 2020 unemploym...

https://www.youtube.com/watch?v=e81hS26HmEg

Tax Industry Updates for Tax Pros - March 9, 2021 Activate your Free TaxWise Online Trial: https://bit.ly/3mVm5Pb​Try TaxWise Desktop for Free: https://bit.ly/2JTMgrC​We invite you to explore why thousands o...

Unemployment and Child Credit from new stimulus package

There are those who will be amending their 2020 tax return to take advantage of the retroactive tax cuts offered by the newly signed stimulus package.

As of yesterday, my software company is letting the preparers know that they are waiting for official instruction from the IRS in order to proceed.

Amendments are normally filed after the close of tax season to allow for the maximum number of people to be able to get their returns submitted in time. However, in anticipation of the many amendments that will be made, I am setting aside incremental appointments on March 26th and 27th to process as many as I can. After those dates, other amendments will be done as time permits, but more than likely after April 15th.

Returns initially completed after the new instructions come out will not require an amendment.

For those who drop off returns for processing, please be sure to answer/include the following:

-Phone number and email address.
-Which dependents you claim in 2020 along with how many months they lived in your home.
-The amounts you received for the first stimulus and second stimulus packages
-Did you have any financial interest in virtual currency in 2020?
-Copies of drivers licenses for
-Verify if you are using the same bank account for direct deposit as last year or provide a cancelled check (routing number, account number bank name) for new account.
- A list of charitable contributions separated into cash contributions and goods, along with a dollar amount and name of organization for each. Contributions over $250 to any single organization also require documentation on letterhead.
-All applicable tax related forms necessary to complete the return.

For those who mailed in their 2019 tax return, the IRS is still dealing with a backlog of processing them.

The IRS this week issued the following statement:

Earlier this month, the IRS issued notices to approximately 260,000 taxpayers stating they haven’t filed their 2019 federal tax return. These notices, referred to as CP59 notices, are issued yearly to identified taxpayers who have failed to file tax returns due the prior calendar year (Tax Year 2019). Due to pandemic-related shutdowns, the IRS has not completed processing all 2019 returns at this time. Therefore, the CP59 notices should not have been sent because some portion of the recipients may have filed a return that is still being processed.

People who filed their 2019 returns but nevertheless received the CP59 notice can disregard the letter and do not need to take to take any action. There is no need to call or respond to the CP59 notice because the IRS continues to process 2019 tax returns as quickly as possible. The IRS regrets any confusion caused by this mailing. The IRS encourages those who have yet to file their 2019 return to promptly do so.

All first and second stimulus payments have now been issued.

If you have not received yours yet, the 2020 tax return has a worksheet that can be used as a vehicle to claim the payment.

If the payment was issued and not received, the IRS has a process to begin a trace to find what might have happened to it.

Recovery Rebate Credit
The recovery rebate credit was paid out to eligible individuals in two rounds of advance payments called economic impact payments. The economic impact payments were based on your 2018 or 2019 tax year information. The recovery rebate credit is figured like the economic impact payments except that the credit eligibility and the credit amount are based on your 2020 tax year information. If you didn’t receive the full amount of the recovery rebate credit as economic impact payments, you may be able to claim the recovery rebate credit on your 2020 Form 1040 or 1040-SR.

Generally, you are eligible to claim the recovery rebate credit if in 2020 you were a U.S. citizen or U.S. resident alien, weren't a dependent of another taxpayer, and have a valid social security number. This includes someone who died in 2020, if you are preparing a return for that person. Use the Recovery Rebate Credit Worksheet to figure the credit, if any, you can claim. For more information on the recovery rebate credit, go to IRS.gov/RRC.

Economic impact payments—EIP 1 and EIP 2. The first round of economic impact payments (EIP 1) was sent out beginning in April 2020, and the second round of economic impact payments (EIP 2) was sent out beginning in late December 2020. You may have received one or both of these payments.
Notice 1444 and Notice 1444-B. You should have received a Notice 1444 from the IRS that shows how much EIP 1 you were issued and a Notice 1444-B that shows how much EIP 2 you were issued (it will take several weeks to receive Notice 1444-B after your EIP 2 has been issued). Have these notices available when you complete the Recovery Rebate Credit Worksheet. If you haven't received Notice 1444 or Notice 1444-B, or you can't locate your notice, you can also go to IRS.gov/Account for the amount(s) to enter on the worksheet.
You may be able to claim the recovery rebate credit only if your economic impact payments are less than your credit. This happens when:

You are eligible but were not issued an EIP 1, an EIP 2, or neither an EIP 1 or EIP 2, or
Your EIP 1 was less than $1,200 ($2,400 if married filing jointly) plus $500 for each qualifying child you had in 2020; or
Your EIP 2 was less than $600 ($1,200 if married filing jointly) plus $600 for each qualifying child you had in 2020.
You don’t qualify for the recovery rebate credit if, for EIP 1:

You received $1,200 plus $500 for each qualifying child you had in 2020, or
You’re filing a joint return for 2020 and together you and your spouse received $2,400 plus $500 for each qualifying child you had in 2020.
And for EIP 2:

You received $600 plus $600 for each qualifying child you had in 2020, or
You’re filing a joint return for 2020 and together you and your spouse received $1,200 plus $600 for each qualifying child you had in 2020.
Married filing jointly.
If your EIP 1 or EIP 2 was based on a joint return, you and your spouse are each treated as having received half the payment that was issued.
If only one of you has a valid social security number, and neither you nor your spouse was a member of the U.S. Armed Forces at any time during 2020, your credit amount will be limited.
If applicable, include your spouse’s EIP 1 as shown on your spouse’s Notice 1444 on line 16. If applicable, include your spouse’s EIP 2 as shown on your spouse’s Notice 1444-B on line 19.
Valid social security number. A valid social security number is one that is valid for employment in the United States and is issued before the due date of your 2020 return (including extensions).
This is an Image: caution.gifIf you reside in a U.S. territory, don’t enter an amount on line 30 and do not complete the Recovery Rebate Credit Worksheet. In general, the tax authorities in American Samoa, Guam, Puerto Rico, the U.S. Virgin Islands, and the Northern Mariana Islands will provide the recovery rebate credit to eligible residents. Territory residents should direct questions about EIP 1 or EIP 2 or the recovery rebate credit to the tax authorities in the territories where they reside.

Recovery Rebate Credit Worksheet—Line 30
Tax Tables

See the instructions for line 30 to find out if you can take this credit and for definitions and other information needed to fill out this worksheet.
If you received Notice 1444 and Notice 1444-B, have them available.
Don’t include on line 16 or 19 any amount you received but later returned to the IRS.
1. Can you be claimed as a dependent on another person's 2020 return? If filing a joint return, go to line 2.
This is an Image: box.gifNo. Go to line 2.
This is an Image: box.gifYes. This is an Image: stop.gif You can't take the credit. Don’t complete the rest of this worksheet and don’t enter any amount on line 30.
2. Does your 2020 return include a valid social security number (defined under Valid social security number, earlier) for you and, if filing a joint return, your spouse?
This is an Image: box.gifYes. Skip lines 3 and 4, and go to line 5.
This is an Image: box.gifNo. If you are filing a joint return, go to line 3.
If you aren't filing a joint return,This is an Image: stop.gifyou can’t take the credit. Don’t complete the rest of this worksheet and don’t enter any amount on line 30.
3. Was at least one of you a member of the U.S. Armed Forces at any time during 2020, and does at least one of you have a valid social security number (defined under Valid social security number, earlier)?
This is an Image: box.gifYes. Your credit is not limited. Go to line 5.
This is an Image: box.gifNo. Go to line 4.
4. Does one of you have a valid social security number (defined under Valid social security number, earlier)?
This is an Image: box.gifYes. Your credit is limited. Go to line 5.
This is an Image: box.gifNo. This is an Image: stop.gif You can’t take the credit. Don’t complete the rest of this worksheet and don’t enter any amount on line 30.
5. If your EIP 1 was $1,200 ($2,400 if married filing jointly) plus $500 for each qualifying child you had in 2020, skip lines 5 and 6, enter zero on lines 7 and 16, and go to line 8. Otherwise, enter:
$1,200 if single, head of household, married filing separately, qualifying widow(er), or if married filing jointly and you answered "Yes" to question 4, or
$2,400 if married filing jointly and you answered "Yes" to question 2 or 3.
5. _____
6. Multiply $500 by the number of qualifying children under age 17 at the end of 2020 listed in the Dependents section on page 1 of Form 1040 or 1040-SR for whom you either checked the "Child tax credit" box or entered an adoption taxpayer identification number 6. _____
7. Add lines 5 and 6 7. _____
8. If your EIP 2 was $600 ($1,200 if married filing jointly) plus $600 for each qualifying child you had in 2020, skip lines 8 and 9, enter zero on lines 10 and 19, and go to line 11. Otherwise, enter:
$600 if single, head of household, married filing separately, qualifying widow(er), or if married filing jointly and you answered "Yes" to question 4, or
$1,200 if married filing jointly and you answered "Yes" to question 2 or 3.
8. _____
9. Multiply $600 by the number of qualifying children under age 17 at the end of 2020 listed in the Dependents section on page 1 of Form 1040 or 1040-SR for whom you either checked the "Child tax credit" box or entered an adoption taxpayer identification number 9. _____
10. Add lines 8 and 9 10. _____
11. Enter the amount from line 11 of Form 1040 or 1040-SR 11. _____
12. Enter the amount shown below for your filing status:

$150,000 if married filing jointly or qualifying widow(er)
$112,500 if head of household
$75,000 if single or married filing separately
12. _____
13. Is the amount on line 11 more than the amount on line 12?
This is an Image: box.gifNo. Skip line 14. Enter the amount from line 7 on line 15 and the amount from line 10 on line 18. 13. _____
This is an Image: box.gifYes. Subtract line 12 from line 11.
14. Multiply line 13 by 5% (0.05) 14. _____
15. Subtract line 14 from line 7. If zero or less, enter -0- 15. _____
16. Enter the amount, if any, of EIP 1 that was issued to you (before offset for any past-due child support payment). You may refer to Notice 1444 or your tax account information at IRS.gov/Account for the amount to enter here 16. _____
17. Subtract line 16 from line 15. If zero or less, enter -0-. If line 16 is more than line 15, you don’t have to pay back the difference 17. _____
18. Subtract line 14 from line 10. If zero or less, enter -0- 18. _____
19. Enter the amount, if any, of EIP 2 that was issued to you. You may refer to Notice 1444-B or your tax account information at IRS.gov/Account for the amount to enter here 19. _____
20. Subtract line 19 from line 18. If zero or less, enter -0-. If line 19 is more than line 18, you don’t have to pay back the difference 20. _____
21. Recovery rebate credit. Add lines 17 and 20. Enter the result here and, if more than zero, on line 30 of Form 1040 or 1040-SR 21. _____

View Your Tax Account | Internal Revenue Service Get instructions on viewing your tax account information online. Review the amount you owe, balance for each tax year and payment history.

Did not receive all of your stimulus payment? There will be a form on the 2020 tax return to be able to claim funds that did not make it to you in advance. Please be sure to have supporting documentation of the money that you did receive for each advance payment when we prepare your return. See you soon!

https://www.irs.gov/newsroom/recovery-rebate-credit

Recovery Rebate Credit | Internal Revenue Service Eligible individuals can claim the Recovery Rebate Credit on their 2020 Form 1040 or 1040-SR. These forms can also be used by people who are not normally required to file tax returns but are eligible for the credit.

You can use the Get My Payment tool on the IRS site to track the status of your payment, and get a projected deposit date. The IRS said the information is updated once daily, usually overnight.

If you do not receive the stimulus money you believe you are due, the IRS says you can claim the payment as a credit when you file your 2020 tax return. Similarly, if you got stimulus money but not the full amount you think you were due, you can also claim the difference as a credit when you file your 2020 tax return.

If you need the payment sooner, the agency recommends calling the IRS Economic Impact Payment line at 800-919-9835.

https://www.forbes.com/sites/jenniferbarrett/2020/06/21/stimulus-check-still-hasnt-arrived-this-may-be-why/

Stimulus Check Still Hasn’t Arrived? This May Be Why More than 30 million stimulus checks may still need to be issued. Here's what to know if you're among those still waiting for a stimulus payment.

Chart from IRS to help determine how much your stimulus payment should be:
https://www.irs.gov/pub/irs-utl/how_do_I_calculate_my_eip.pdf

For small businesses with liquor licenses that are closed for COVID, here is some information straight from the Ohio Liquor Board:

Thank you for contacting the Division of Liquor Control with your inquiry.

If you need to renew or take any action to maintain your license, permit, certification or registration between March 9, 2020 through the end of the emergency period declared by Governor DeWine, H.B. 197 gives you a 90-day window after the emergency period has ended to submit your renewal or take other actions necessary to maintain your license.

https://www.10tv.com/article/odjfs-asks-people-file-jobless-claims-designated-days-help-processing-2020-apr

ODJFS asks people to file jobless claims on designated days to help with processing The Ohio Department of Jobs and Family Services (ODJFS) is asking people who file for unemployment to apply on new designated days starting next week.

For self-employed, or those having issues filling out the unemployment applications, please check out the FAQ and help files on the Ohio FJS web page. Here is one good place to start:

https://unemploymenthelp.ohio.gov/expandedeligibility/

Expanded Eligibility Coronavirus and Unemployment Insurance Benefits: Expanded Eligibility Resource HubThe new federal Pandemic Unemployment Assistance Program will provide benefits for many indi

The IRS has compiled a list of FAQs for the stimulus payment and it can be found here:

https://www.irs.gov/coronavirus/economic-impact-payment-information-center

The IRS website has a portal where a taxpayer can provide their deposit bank's routing and account number for quicker receipt of the payment, as well as a portal to track information that pertains to your payment. Please remember, this is new, and they have only just started the first round of payments, so if the portal cannot find information on you, don't panic, they just haven't gotten to it yet. They also state on the website not to call. They have released most of their staff due to covid and are not readily available to answer calls.

The website also answer questions such as which dollar amount is the stimulus based on (adjusted gross income), and will they keep it for certain purposes (only keep it for unpaid child support, not for unpaid back taxes), and many other questions I am getting frequently throughout the day.

If you have a child on your return, they are allotting another $500 stimulus for the child. I have had several people ask me if they amend their returns so the child claims themselves, will that get them more stimulus. The best advice I can offer on that at this time is that an amendment takes more or less 8 weeks to process in a good year. With minimal staffing, it would take even longer, and the stimulus checks would likely already all be cut prior to them receiving and processing any amended returns. Also, in one of the information articles I read (and don't have the link handy), they indicated that if a child qualifies to be a dependent, they will be treated that way for stimulus (implied even if they intentionally take their own exemption, they would be treated as a dependent for stimulus purposes if they qualify).

We are at their mercy to receive these payments. It is highly doubtful that you can attempt to call, get a representative on the phone, and try to speed things up. What you CAN do at this point is ensure that they have your direct deposit info on file with them using the new portal (already done if you filed eletronically and had a federal refund direct deposited or if you receive social security benefits that are direct deposited). If you have not yet filed your 2019 return, then efiling with direct deposit information will aid the process. Mailing in returns at this point in the tax season will take much longer to process this year than normal years due to the minimal staffing.

I hope this helps answer some of the many questions everyone has about this aid package!

Economic Impact Payment Information Center | Internal Revenue Service All U.S. residents who are not a dependent of another taxpayer and have a work eligible social security number, will receive the Economic Impact Payment with adjusted gross income

The IRS does not have my direct deposit information. What can I do?
In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.

^
This is from the IRS website with Q&A regarding Covid19. The portal is their intention, but it is not set up yet.

More info on small business loans and what portion of them might be converted to a grant.

Q&A: How to get aid for a small business hit by virus crisis Millions of small business owners will be turning to the government, seeking help for the economic devastation caused by the coronavirus outbreak

Per RITA - both Ohio and RITA filings and payments have now been extended until July 15, 2020, following the federal extended guidelines.

"Late Friday afternoon the Ohio Tax Commissioner extended the due date for filing and payment of state income tax, which in turn has extended municipal income tax filings and payments.

Municipal income returns and payments for tax year 2019 with a due date of April 15, 2020 have been extended to July 15, 2020. Estimated payments for the first and second quarters of tax year 2020 have also been extended to July 15, 2020."

SBA offering emergency loans to small businesses for COVID.

SBA to Provide Disaster Assistance Loans for Small Businesses Impacted by Coronavirus (COVID-19) | The U.S. Small Business Administration | SBA.gov WASHINGTON – SBA Administrator Jovita Carranza issued the following statement today in response to the President’s address to the nation:

From NATP

COVID-19 Tax Credits Available Now
Taxpayers rely on our members. Our members rely on us.

Small and midsize employers can begin taking advantage of two new refundable pay​roll tax credits designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing COVID-19-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act).

The act gives businesses with fewer than 500 employees funds to provide employees with up to 80 hours of paid leave, either for the employee’s own health needs or to care for family members. There are two credits available:

Paid sick leave credit

For an employee who is unable to work because of COVID-19 quarantine or self-quarantine or has COVID-19 symptoms and is seeking a medical diagnosis, eligible employers may receive a refundable sick leave credit for sick leave at the employee's regular rate of pay, up to $511 per day and $5,110 in the aggregate, for a total of 10 days (up to 80 hours).

For an employee who is caring for someone with COVID-19, or is caring for a child because the child's school or child care facility is closed, or the child care provider is unavailable due to COVID-19, eligible employers may claim a credit for two-thirds of the employee's regular rate of pay, up to $200 per day and $2,000 in the aggregate, for up to 10 days (up to 80 hours). Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period.

Child care leave credit

In addition to the sick leave credit, for an employee who is unable to work because of a need to care for a child whose school or child care facility is closed or whose child care provider is unavailable due to COVID-19, eligible employers may receive a refundable child care leave credit. This credit is equal to two-thirds of the employee's regular pay, capped at $200 per day or $10,000 in the aggregate. Up to 10 weeks of qualifying leave can be counted towards the child care leave credit. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period.

Using the credits

Under guidance that will be released next week, eligible employers who pay qualifying sick or child care leave will be able to retain an amount of the payroll taxes equal to the amount of qualifying sick and child care leave that they paid, rather than deposit them with the IRS.

The payroll taxes that are available for retention include withheld federal income taxes, the employee share of Social Security and Medicare taxes, and the employer share of Social Security and Medicare taxes with respect to all employees.

If there are not sufficient payroll taxes to cover the cost of paid qualified sick and child care leave, employers will be able file a request for an accelerated payment from the IRS. The IRS expects to process these requests in two weeks or less. The details of this new, expedited procedure will be announced next week.

NATP is closely monitoring the news and will be in communication with our members as additional information becomes available.

The federal government has extended both the filing and the payment deadlines until July 15, 2020.

The City of Springfield, Ohio has chosen to follow suit. Filings, income tax payments and first quarter estimates for Springfield have all been given the extended deadline of July 15th.

Ohio is still considering extension, but has not done so at this time.