Did You Use the Non-Filers Tool to Register for your Economic Impact Payment (EIP)?

Published: 7/2/2020 3:43:50 PM

If you have a filing requirement but have not filed your tax return for 2019 yet, and you used the non-filers tool on irs.gov to register for the EIP, the IRS announced that you have to file your tax return on paper. An electronically filed return will be rejected as a duplicate return. Taxpayers must complete a paper 2019 Form(s) 1040/1040-SR. On the return they must write "Amended EIP Return" at the top. Tax returns must be mailed and postmarked by July 15, 2020, for taxpayers to avoid late-filing penalties, interest, and late fees.

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Updates on Economic Impact Payment Facts on IRS.gov

Published: 5/28/2020 6:11:19 PM

What about a child's parents who are not married to each other, but both got the $500 for the same child? Will one of them have to pay that back? The law doesn’t require repayment of an Economic Impact Payment in these situations. Each parent should review Notice 1444, Your Economic Impact Payment. The IRS will mail this notice to their last known addresses within 15 days after the payment is made. The parents should keep the notice for their 2020 tax records. If someone who owed tax scheduled a payment from their bank account, will the IRS send the payment to the account used? No, the IRS will

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Received a Lower than expected Economic Impact Payment?

Published: 5/20/2020 1:55:48 PM

Why did I receive a lower than expected Economic Impact Payment? Here are some reasons as to why: You did not file your 2019 tax return, and you payment was based on the 2018 return. You filed your 2019 tax return in March or April 2020, and the IRS has not finished processing the 2019 return.Your qualifying child is not under the age of 17. For purposes of the payment, the child’s age is how old they are at the end of the year for the tax return on which the IRS bases the payment amount. If a dependent is 17 or older,

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How can I choose a tax preparer?

Published: 1/23/2020 12:56:53 PM

f In January of each year people are thinking about their taxes and who is going to prepare their tax return. When moving to new area this is particularly a challenge to decide who to trust with your financial and personal information. In these times of identity theft, it is vital to make a wise choice to ensure your information is secure and the office is taking data security measures. Here are some suggestions on how to select a tax preparer: Check the Prepare's Qualifications -- Is the preparer an EA (Enrolled Agent) or a CPA? You can check the

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Beware of the "Ghost" Tax Preparer!

Published: 1/23/2020 11:47:11 AM

Each year I have people come into the office and say "So-and-So" can do my tax return cheaper. Many times I think of reminding them of the old saying, "You get what you pay for." This saying is particularly true with tax preparation. By law a paid preparer is required to sign each tax return he or she prepares. Ghost preparers who charge maybe $25 or $50 to prepare a return will refuse to sign a return. That is an immediate red flag revealing a paid preparer who only looking to make a fast buck. I recommend avoiding these unethical

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Buying Business — Questions to Ask

Published: 5/5/2018 5:45:52 PM

Each year I learn about the disasters that occur when my clients or others either buy or start a business. Why do the disasters happen? Many times the problems start because of consulting the attorney and the banker, but not consulting their tax professional. Why is it necessary to consult their tax professional? Many tax issues can be properly planned and dealt with by working with a tax professional even before buying or starting a business. If you wait until tax season to inform your tax professional, you could then be facing a large tax bill that could have been

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Divorced or Single and Have Children Living With You?

Published: 5/5/2018 5:44:00 PM

One of the biggest complaints I get during tax season is from custodial parents who have not claimed their children in past years, because the noncustodial parent efiled and claimed the children first. These parents have been told by other tax preparers that there is nothing that can be done since the children have already been claimed. We specialize in helping such parents and have helped several of these parents get the credits, deductions, and refunds they deserve. In most cases we also have to correct the custodial parent's filing status from single to head-of-household. When we get an

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Court Order Says My Ex Claims the Children

Published: 5/5/2018 5:39:42 PM

Many tax prepares misinterpret court orders and tax law when preparing tax returns. Since 2009 the IRS has taken the position that a county court cannot tell the IRS how exemptions are claimed on a tax return. Attaching copies of a divorce decree are not sufficient to claim the exemption on a child who does not live with you. Basicly, the parent who has the child in their home for more than half the year and provides 50% or more of the support (this does not include child support) is the parent that can claim the child as an exemption.

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Child Claimed on Another Tax Return?

Published: 5/5/2018 5:38:26 PM

Several times during tax season we electronically file a client's tax return, only to learn that one of the client's legal dependents was claimed falsely on another tax return. Sometimes this is due to identity theft, which will be discussed in another blog. More often this situation arises because an ex-spouse, a grandparent, or another ineligible family member has the child's information and claims the child, even though they did not have the child for at least 6 months or provide 50% or more of the child's support. Unfortunately, many tax preparers simply tell their clients that there is nothing

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Summertime is a Great Time to Check Your Tax Withholding

Published: 5/5/2018 5:36:17 PM

Have you had a change in family status this year? Did you get married or will you get married? Have you welcomed a new child into the family? Have you changed jobs? Has your income changed? Each of these various life events can and will have an impact on your taxes. A review of your withholding at this time would be good to especially avoid surprises when you files your taxes next year. To help you to make or adjust your plan, here are some suggestions:. If you start a new job, properly complete a new W-4 form. We suggest

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Why Should I Think About Taxes Now?

Published: 5/5/2018 5:35:20 PM

With football season underway and the holidays just around the corner it seems like an unusual time to think about taxes. However, as we go into the last quarter of the year now is an excellent time to check on your potential tax liability, especially if you are self-employed. Also, it would be good to review if you may be able to itemize your deductions, instead of taking the standard deduction. Planning now helps to avoid surprises in the spring If you received a raise this year, it is important to bring in your most recent paycheck stub to review

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Tips for Choosing a Tax Preparer

Published: 5/5/2018 5:33:24 PM

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. 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

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6 Reasons Why Your Business Needs an Accountant

Published: 4/27/2018 6:13:09 PM

We often with speak with small business owners who rely upon DIY accounting programs. They say the program works good for them and makes operating their business a breeze. What we often find though is that even with the use of such programs, many business owners do not know the true profitability of their business. Or, if they have more that one office, they do not know which office is truly making money and which office is possibly losing money. Sometimes income and expenses are not being properly entered or categorized. Having an accountant help your company to grow, move

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Reasons to Use Direct Deposit for a Tax Refund

Published: 3/27/2018 7:03:55 PM

We recommend taxpayers consider a Direct Deposit of any refunds due. It’s easy, safe, fast — and the best way to get a refund. That’s why 80% of taxpayers choose it every year. IRS Direct Deposit: Is Fast. The quickest way to get your refund is to electronically file your federal tax return and use direct deposit. Is Secure. Since refunds go right into a bank account, there’s no risk of having a paper check stolen or lost. This is the same electronic transfer system that deposits nearly 98 percent of all Social Security and Veterans Affairs benefits into millions

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