Koala Financial and Bonita Tax Service

Californians have another month to recover from our terrible storms before finally finishing tax returns this year

For California storm victims, IRS postpones tax-filing and tax-payment deadline to Nov. 16 | Internal Revenue Service IR-2023-189, Oct. 16, 2023 — The Internal Revenue Service today further postponed tax deadlines for most California taxpayers to Nov. 16, 2023. In the wake of last winter’s natural disasters, the normal spring due dates had previously been postponed to Oct. 16.

Send a message to learn more

We want to do all we can to protect our clients from evil scammers. Unfortunately, some of our clients have already become victims, including a woman who was scammed out of over a million $ that she recently inherited.

Feel free to call us about anything you think might be suspicious. It is not a bad idea to call us whenever you are engaging in any significant financial transaction anyway so we can advise you of possible tax consequences and strategy.

Be extra wary of any solicitations to engage in crypto currency transactions, especially those that promise you can't lose. A favorite scam now is enticing social media users into online chats and romances that eventually turn into invitations to engage in crypto option trades. Options should only be traded by highly experienced professional investors. All crypto trading is inherently risky, but these scammers use completely fake sites that simulate winning transactions when in reality, the real money you send is stolen.

Send a message to learn more

If you receive an email purporting to be from the IRS referring to the Third Round of Economic Impact Payments and asking you to click on Complete My Information, it is almost certainly a scam, so delete the email. Always feel free to check with us before you respond to anything from the IRS.

IRS tweets apology for erroneous CP14s (06-08-23)

In tweets released late yesterday, the IRS stated that California taxpayers who qualify for the disaster-related October 16 postponements (August 15 for Modoc and Shasta counties) still have until the October 16/August 15 postponement deadline to pay their 2022 tax liabilities. The IRS stated that taxpayers receiving erroneous CP14 letters do not need to call the IRS or their tax professionals.

The IRS acknowledged that the CP14s are automatically generated when taxpayers have a balance due, but that taxpayers eligible for the disaster postponements do not have any balances currently due. From the IRS’s tweets: “The IRS apologizes to taxpayers and tax professionals for any confusion as we continue to review the situation.”

The tweet thread is available at:

IRSnews on Twitter “The IRS reassures California taxpayers that they continue to have an automatic extension until later this year to file and pay their taxes for those covered by disaster declarations in the state. (🧵 1/5)”

CFP® professionals are committed to acting in your best interest. That’s why It's Gotta Be A CFP®.

https://youtu.be/R3iIeRJ9cE4

We will be hosting a blood drive with the San Diego Blood Bank on March 20th at the office for anyone in Bonita who would like to donate. You can schedule an appointment ahead of time at the link below

San Diego Blood Bank - Donor Portal - Donate blood and help a neighbor in need. Find a donation location near you, and schedule your appointment today!

KFI team at the Avantax Wealth Management annual conference with astronaut Mike Massimino.

A ridiculously small increase with a silly time frame tacked on, but better than nothing

MarketWatch: As gas prices hit $5 per gallon, IRS makes rare midyear move on mileage deduction.
https://www.marketwatch.com/story/irs-makes-mileage-deduction-for-gas-costs-more-generous-in-rare-mid-year-move-11654811989

Koala Financial and Bonita Tax Service updated their business hours.

The Social Security Statement Gets a Makeover The Social Security Statement Gets a Makeover

https://www.newsweek.com/ukrainian-tax-office-says-captured-russian-tanks-dont-have-declared-1684278

Are you a criminal? Do you like paying taxes? We're here for you.

https://www.nbcnews.com/business/taxes/dont-forget-declare-income-stolen-goods-illegal-activities-irs-says-rcna10345?cid=sm_npd_nn_fb_ma

If you changed your name because of marriage, divorce or another reason...
Be sure to report the name change to the Social Security Admin.
Go to https://www.ssa.gov/ssnumber and select “Name change” to get the details.
Names shown on tax returns must match Social Security records.
Mismatches can lead to IRS delays in return processing and issuance of refunds.

Social Security Number and Card | SSA Social Security Number and Card - learn how to get a new and replacement card.

IRS works from home for one year and seems to have missed the news about gas prices going up https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2021 #:~:text=Beginning%20on%20January%201%2C%202021%2C%20the%20standard%20mileage,down%201.5%20cents%20from%20the%20rate%20for%202020%2C

IRS issues standard mileage rates for 2021 | Internal Revenue Service IR-2020-279, December 22, 2020 — The IRS today issued the 2021 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

A number of clients have asked us about the Employee Retention Credit. To qualify, you have to have actual employees. You as the owner do not count. You must also have experienced a full or partial suspension of the operation of your trade or business because of governmental orders limiting commerce, travel or group meetings due to COVID-19, or a decline in gross receipts in a calendar quarter in 2021 where the gross receipts of that calendar quarter are less than 80% of the gross receipts in the same calendar quarter in 2019 (to be eligible based on a decline in gross receipts in 2020 the gross receipts were required to be less than 50%). This credit is applied for through your payroll provider not through your tax return. For more information, please visit https://www.irs.gov/newsroom/new-law-extends-covid-tax-credit-for-employers-who-keep-workers-on-payroll

New law extends COVID tax credit for employers who keep workers on payroll | Internal Revenue Service IR-2021-21, January 26, 2021 — The Internal Revenue Service urges employers to take advantage of the newly-extended employee retention credit, designed to make it easier for businesses that, despite challenges posed by COVID-19, choose to keep their employees on the payroll.

One of our clients had an adult child who filed their own taxes for the first time as a non-dependent, using the free IRS website.

The problem is that the IRS software did not ask if this person received the stimulus checks in 2020, which means they may miss out on up to $1,800 in retroactive stimulus benefit.

As things keep getting more complex financially, we highly recommend using a professional.

As we at Koala Financial being the new tax season, here's a love song for the IRS.

"IRS Love Song" | Michael Bolton | Last Week Tonight All credit to Michael Bolton and Last Week Tonight.Comment below telling me what you want to see in future videosCheck out my website for all things Crazy Jo...