Quality Returns, Inc.

Did you receive a penalty on your tax account? If so, there are many reasons why this may have occurred. is here to help you understand why this happened and what your next steps should be. Learn more: https://ow.ly/UGLq50SkhZl

We have been seeing a lot of these CP14 notices from our clients. Please note that the IRS is looking into the issue and states to hold off on any action.

IRS Statement on balance due notices (CP14) | Internal Revenue Service June 12, 2024 — The IRS is aware that some taxpayers are receiving CP14 (Balance Due, No Math Error) notices indicating a balance due even though payments were made with their 2023 tax return.

Consumers should be aware that there may be unscrupulous health insurance brokers who enroll you in the ACA without your knowledge. It could have severe tax consequences.

When rogue brokers switch a person's ACA health insurance, tax surprises can follow Some tax filers' returns are being rejected because they failed to provide information about Affordable Care Act coverage they didn't even know they had.

Self-employed people, including persons in the gig economy, often need to pay in quarterly installments.
Don’t miss the April 15 estimated tax deadline.

See: https://ow.ly/QBnZ50R9CGa

Reasonable compensation for S-Corp officers is a topic that often comes up in conversations with our clients. This blog brings up important points S-Corps should be aware of.

What if an S Corp Owner can’t afford to pay Reasonable Compensation? Reasonable Compensation is derived from the value of the services provided, not the profit or loss of the business. Let’s take a look at a few examples so we can better understand the issue

BOI reporting expanding

FinCEN To Require Beneficial Ownership Reporting For Transfers Of Residential Real Estate As part of the ongoing anti money laundering drive, FinCEN has turned its eye to gifts of residential real estate in trusts and other entities and proposes requiring beneficial ownership reporting.

https://t.co/6UGuBq1bkR

IRS Announces 2024 Tax Filing Season Will Open On January 29 The IRS has announced that tax season will open on Monday, Jan. 29, 2024. The agency will begin accepting paper and electronic tax returns that day.

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IRS tax bracket changes could mean your paycheck is slightly bigger in 2024. Here's why

New, looser rules on 529 Plans.

A ‘significant objection’ to 529 college savings plans will go away Jan. 1. ‘This is a big deal,’ expert says Starting in 2024, savers can roll unused money from a 529 plan over to a Roth individual retirement account free of income tax or tax penalties.

IRS to waive $1 billion in penalties for millions of taxpayers – here’s who qualifies

Good news! Another year delay on implementing 1099-K forms at the $600 threshold to resolve issues of personal versus business transactions through 3rd party settlement organizations (credit card providers). The threshold remains at $20,000/over 200 transactions for reporting transactions, not the $600 required under the American Rescue Plan. Hopefully Congress will resolve the issue with legislation in 2024.

IRS Announces Big Changes To Form 1099-K, Including Another Reporting Delay The IRS announced that it would delay the new $600 Form 1099-K reporting threshold for third-party settlement organizations for 2023.

Most California counties are granted an extra month to file and pay for 2022. The deadline is now November 15th

Taxes Are Due Monday for Most Californians. What to Know About the 2023 Tax Deadline | KQED When are your 2023 taxes due? For almost all California counties, the extended tax deadline is Monday. Here's what you need to know about the deadline extension to file and pay your federal and state taxes.

Just a note that our telephones are intermittent today due to an internet issue with our provider. Please be patient and call back later today if you cannot get through.

To protect taxpayers from scams, has stopped new Employee Retention Credit processing amid surge of questionable claims.

Learn about the moratorium at: https://ow.ly/vNAh50PLN8U

I have been speaking about being careful with who you trust to prepare your 941X forms for ERC for awhile. Use a trusted tax professional only as the IRS states in this article.

IRS Commissioner signals new phase of Employee Retention Credit work; with backlog eliminated, additional procedures will be put in place to deal with growing fraud risk | Internal Revenue Service IR-2023-135, July 26, 2023 — With the IRS making substantial progress in the ongoing effort related to the Employee Retention Credit claims, Commissioner Danny Werfel said the agency has entered a new phase of increasing scrutiny on dubious submissions while renewing consumer warnings against aggr...

Make sure that whoever is preparing your ERC 941X forms is certified by the IRS. CPA’s and Enrolled Agents are required to abide by Circular 230. Circular 230 includes ethics guidelines and how we can charge clients. Don’t be fooled by your unlicensed bookkeeper who now is in the business of ERC credits and is charging you 10-15% of your ERC credit as their fee. This is an extremely lucrative business for them so buyer beware. If you get audited or have a problem they cannot represent you before the IRS. Have questions concerning ERC? You can call our office to discuss eligibility and whether or not it is worth filing.
Also, please note that you must amend prior year’s tax returns for ERC and pay the taxes as ERC is not tax free. This is a consideration on whether you choose to file.

IRS opens 2023 Dirty Dozen with warning about Employee Retention Credit claims; increased scrutiny follows aggressive promoters making offers too good to be true | Internal Revenue Service IR-2023-49, March 20, 2023 — In a further warning to people and businesses, the Internal Revenue Service added widely circulating promoter claims involving Employee Retention Credits as a new entry in the annual Dirty Dozen list of tax scams.

We get this question a lot from clients, are GoFundMe Donations tax deductible? It depends…

Are GoFundMe Donations Tax Deductible? We Explain. Are GoFundMe donations tax deductible or not? For example, are GoFundMe donations for funerals tax deductible? Let us explain.

IRS announces tax relief for victims of severe winter storms, flooding, landslides, and mudslides in California | Internal Revenue Service CA-2023-02, January 24, 2023 — Victims of severe winter storms, flooding, landslides, and mudslides beginning December 27, 2022, now have until May 15, 2023, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

Great News! We have been delaying finishing individual tax returns for 2022 waiting for this ruling.

Taxpayers in many places will not need to report special state payments on their 2022 federal tax returns. See the latest update at: http://ow.ly/1TKS50MPUIG

https://www.kiplinger.com/taxes/tax-returns/602068/irs-audit-red-flags

19 IRS Red Flags: What Are Your Chances of Being Audited? These red flags could increase your chances of the IRS selecting your return for audit.

Great News!

A new tool lets you e-file large volumes of 1099s for your . Learn more about the Information Returns Intake System (IRIS): http://ow.ly/5QaV50MAqSX

New inflation adjusted numbers for 2022 tax returns. https://www.wsj.com/articles/what-the-irss-new-tax-brackets-mean-for-you-11666877052?mod=e2fb&fbclid=IwAR3xyaW8861-L-JDuEPbYZLW9dumqmFLQOkswP6-0-scxoPNXSsfiOG3iZA_aem_AbSQUFdkO3TQ1ZFm9nN1B6Fg4x4FVagEYdH70ULid7OLp-JAdd0nsFw2Ea82b4mr2NZw5JgeN8cvH-XbQtaYLleIlbdZZpGU88O2biBA6wf7vH01siA6HRDGZuYTMxNMR58

What the IRS’s New Tax Brackets Mean for You Changes to brackets, deductions and other benefits will lower some Americans’ tax burden for 2023.

https://www.kron4.com/news/national/irs-announces-tax-inflation-adjustments-why-your-paycheck-could-see-a-bump/?utm_campaign=socialflow&utm_medium=referral&utm_source=facebook.com&fbclid=IwAR0aN7uz8kry-go01z0PrTz-mCTkPKEcB_pTtG9mi_fXXu86VxrO7DKZBZg

IRS announces tax inflation adjustments – why your paycheck could see a bump Millions of American could take home more pay in 2023 thanks to inflation adjustments to the tax code announced by the IRS Tuesday.

Teachers can deduct up to $300 of qualified out-of-pocket expenses when they file their 2022 tax return. Eligible K-12 teachers, instructors, counselors, principals or aides from both public and private schools can take this deduction on their IRS tax return in 2023. To read more, click here: http://ow.ly/6baS50K6R1f

Happy !

Huge pandemic relief for many taxpayers. Welcome news.

IRS Forgives Penalties For Millions Of Taxpayers Who Filed Late—Here’s Who Qualifies The IRS is refunding and waiving many Americans’ penalties for late tax returns, as the agency struggles with a massive backlog.

An inside look at why taxpayer problems are taking so long to be resolved at the IRS.

Opinion | Why does the IRS need $80 billion? Just look at its cafeteria. This is the antiquated system the IRS uses to process millions of tax returns each year.

https://www.irs.gov/newsroom/heres-what-businesses-need-to-know-about-the-enhanced-business-meal-deduction?fbclid=IwAR3J9bhLMG4cDsdIK0olX2YjYVGbHsN0bmU6LwaJozelBtyH4bKJZBvPsrI&fs=e&s=cl

Here’s what businesses need to know about the enhanced business meal deduction | Internal Revenue Service Tax Tip 2022-91, June 14, 2022 — The IRS encourages businesses to begin planning now to take advantage of tax benefits available to them when they file their 2022 federal income tax return. This includes the enhanced business meal deduction.

Dirty Dozen: Scammers use every trick in their communication arsenal to steal your identity, personal financial information, money and more | Internal Revenue Service IR-2022-121, June 8, 2022 — Suspicious communications in all its forms designed to either trick, surprise or scare someone into responding before thinking is No. 7 on the 2022 "Dirty Dozen" scams warning list, the Internal Revenue Service announced today, warning everyone to be on the lookout for ...

IRS increases mileage rate for remainder of 2022 | Internal Revenue Service IR-2022-124, June 9, 2022 — The Internal Revenue Service today announced an increase in the optional standard mileage rate for the final 6 months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain oth...

https://t.co/fKFuyCc8tO

The IRS Is Coming for Your Venmo Income Entrepreneurs and small-business owners who use services such as Venmo, PayPal, EBay, and Airbnb are about to find their digital payments facing more scrutiny.