The 2017 Tax Extender Bill was passed on February 9, resurrecting no less than 32 provisions which were to have sunset December 31, 2016. In fact, a number of these provisions would/could have impacted 2017 tax planning, had they been been taken up in a timely manner, but so it goes. Nevertheless, there are some important points to bear in mind for this tax season.
This will probably morph into a series of brief posts about cryptocurrency and how to handle it from a business and tax perspective. Most of us are still working through the maze, and of course, the tax landscape continues to shift beneath our feet. This article has been written post-signing of H.R.1, the Tax Cuts and Jobs Act, signed into law in December, 2017.
A recent article in the CPA Practice Advisor cites a study of 2,234 people, conducted by “audio branding specialist” (whatever that means exactly) PH Media Group, which concludes that less than 24% of Americans who contact their accountants via telephone are satisfied with the manner in which their calls are handled. The article goes on to infer that as a result, accounting firms score an F in the area of phone skills this post.
It seems that each year, criminals become emboldened by their past successes, and 2016 is no exception to that rule. While not at the top of this year’s <a href="https://www singulair generic.irs.gov/uac/Newsroom/IRS-Wraps-Up-the-Dirty-Dozen-List-of-Tax-Scams-for-2016″ target=”_blank”>IRS Dirty Dozen list of tax scams, phone scams are certainly toward the top of ours.
The allure of being your own boss is a strong pull for many to escape the traditional demands of a regular job. Recently, app-oriented companies (such as Uber, Washio, Postmates, Shyp, and others) have become popular ways for non-capitalized erstwhile entrepreneurs to enter the wide world of self-employment.
Payroll services are great assets. As compliance becomes more and more a full time job, outsourcing this task to experienced providers has become a popular alternative to handling such matters in-house. A single penalty for a missed tax deposit can far exceed the cost of a good payroll service for an entire year.
Complications do arise, however, such as when starting up, switching from in-house to a provider, changing providers mid-year, or terminating a business mid-quarter or before W-2 season.
We recently had a situation where a client sold his business assets (but no the business). As his business entity no longer had payroll, he contacted the payroll provider to terminate his account (with no payroll to process and no income from further operations, it seemed a logical choice). Unfortunately, that left the final quarter’s payroll tax reporting undone, and us (as the accountants preparing the general ledger) unable to access his payroll data online.
While we can’t blame the service provider per se (the provider is not paid to maintain the data in the online portal or to provide any services whatsoever after the account is closed), the issue is that many clients seem to forget that even though payroll may have stopped after the first week of the payroll quarter, payroll returns will still be due following the end of the quarter, and year-end reports (Federal Form 940, at a minimum) and W-2’s (and W-3) will also be due the following January.
Most payroll service providers will require their clients to maintain accounts (even if no current payroll is being generated) for a nominal fee in order to prepare the quarterly and year-end reports, as well as the W-2’s, and clients should expect to likely pay a la carte for such reporting services, even if they were previously accustomed to a package deal (unless the provider offers a similar package for inactive employers).
As always, communication is key. In the case above, because we have an ongoing relationship with the payroll provider, we were able to obtain the reports necessary and get the dialog moving (again) between our client and the payroll provider to ensure that the reports will indeed be prepared for this year, and to obtain the data we needed to prepare the general ledger work in a timely fashion. It may be easy to mentally separate the roles of accountant and payroll service provider, but in truth, we both work together, complimenting each other’s service offerings, and a good accountant will strive to maintain a good rapport with the service provider to minimize the impact on the client of procedural and administrative matters.
The initial filing went in sometime in 2007, though our check was never processed. We then received a letter from the Service some months later, advising us that the application was pending review, and that they would follow up if additional information was needed. At some point after that, I recall another letter, requesting some additional information (nothing serious), then all went silent. Subsequent inquiries were met with no response.
A second filing of the same application similarly met with no response. Finally, in February of 2013, fully 18 months ago, we filed a fresh 1023. This time, our application fee was processed, and we did get a letter acknowledging receipt. A subsequent telephone call to the Service some months later confirmed that the application was indeed in the queue.
Last Friday, I received the notification letter, though it indicates that this was a reinstatement of a previous revocation in May of 2010, under Rev Proc 2014-11, which is the new streamlined process for reinstatement subsequent to an automatic revocation due to non-filing of the Form 990 for three years. However, not only did we never receive a previous approval, we never received a revocation notice, either. There is no sense in arguing the point, however, as all contributions made to Warpstock since May of 2010 are considered fully tax deductible to the extent allowed on each donor’s return.
Quality : HD
Title : John Wick: Chapter 2
Director : Chad Stahelski.
Release : 2017-02-08
Language : English.
Runtime : 122 min.
Genre : Thriller, Action, Crime.
Movie ‘John Wick: Chapter 2’ was released in February 8, 2017 in genre Thriller. Chad Stahelski was directed this movie and starring by Keanu Reeves. This movie tell story about John Wick is forced out of retirement by a former associate looking to seize control of a shadowy international assassins’ guild. Bound by a blood oath to aid him, Wick travels to Rome and does battle against some of the world’s most dangerous killers.
It is often hard to decipher some of these codes which identify various amounts reported on Forms W-2 in boxes 12 and 14. A quick sampling of them (specifically as related to New York State) would be:
414(h) – All non-taxable retirement contributions made to New York State or City retirement systems or to TIAA-CREF. This amount must be reported for State and Local taxes. If there is a minus sign (-) with this amount, State and Local taxes have already been paid.
WCX – Workers’ Compensation excluded amount. This is the amount awarded by NYS Workers’ Compensation Board which is excluded from the gross pay for the current year for a work- related injury.
IRC125 – For City University of New York (CUNY) employees only. This amount includes Dependent Care, Flexible Spending Account, and Non-Taxable Health Insurance and is excludable for Federal income tax, FICA and Medicare taxes. It is not included in Boxes 1, 3 and 5. This amount must be reported for State and Local taxes.
A full listing of these codes (and other interesting W-2 reporting) is available from the Office of the State Comptroller.
What began as the Hope Scholarship Credit has morphed into the American Opportunity Tax Credit (AOTC). Set to expire at the end of 2010, Congress first extended it through the end of 2012 under the Tax Relief and Job Creation Act of 2010, and further extended it through the end of 2017 under the American Taxpayer Relief Act of 2012.
The AOTC expands on the original Hope Credit in a number of ways. If you are attending college, or if a dependent of yours is attending college, the possibility of claiming the AOTC during the first four years of post-secondary education should not be overlooked.
When determining the amount of qualified higher education expense (QHEE) to use for the purpose of claiming the credit, remember to include:
- Activity & center fees;
- Books & study materials;
- Equipment (including lab equipment, computer purchased for studies, etc.)
Other criteria apply, and the credit may be limited based upon income; nevertheless, the possibility should be explored go to these guys. Please be sure to mention higher education when discussing your tax matters with us.