SECURE Act: A big change to retirement rules

At the end of 2019, Congress passed the most sweeping change to retirement rules in over a decade. Known as the Setting Every Community Up for Retirement Enhancement Act (SECURE Act), this legislation went into effect on January 1, 2020, and impacts retirement and estate planning rules. Here are a few of the biggest takeaways from the Act: RMDs Now …

Extra deductions for 2019 taxes

if you’re 65 or over, you are entitled to an additional $1,300. For an individual, that would raise the standard deduction to $13,500 for the tax year 2019, the first year that you can use the form. For a married couple, if one is 65 or over, the deduction would rise to $25,700 2019 standard deduction amounts Filing status 2019 …

Tax situations when taking care of family

In support of October’s National Work and Family Month. the IRS is providing tax information on a number of topics related to work-life balance. Families often hire individuals to care for children and dependents so family members can work or actively look for work. These individuals include babysitters, caretakers, health aides, nannies, private nurses and au pairs. As employers, family …

In the news: IRS extends Oct. 15 filing deadline for Tropical Storm Imelda victims, and announces new payment option for taxpayers in private debt collection program

IRS extends Oct. 15 and other upcoming deadlines, provides other tax relief for victims of Tropical Storm Imelda IR-2019-164, October 7, 2019 – Victims of Tropical Storm Imelda in parts of Texas, including the Houston area, have until Jan. 31, 2020, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced this week. …

Mandate to electronically file Form 4419 begins October 1, 2019

As of October 1, 2019, Form 4419, Application for Filing Information Returns Electronically, is mandated to be electronically filed when requesting an original Transmitter Control Code to transmit information returns through the FIRE System. Form 4419 isn’t applicable when requesting an Affordable Care Act TCC. Find and submit an online, fill-in Form 4419 located within the FIRE System on IRS.gov. Submit a …

New Tax Withholding Estimator – Big help to workers with self-employed income and retirees

The new Tax Withholding Estimator tool offers self-employed individuals, workers, retirees and other taxpayers a more dynamic and user-friendly way to calculate the amount of income tax they want to have withheld from either wages or pension payments. And, after the calculations are done, the Tax Withholding Estimator automatically links to the appropriate withholding form. Please share these news releases …

Don’t overlook payroll security – Secure your data, identify attacks and how to report them

Payroll security is a critical concern for professionals providing payroll services. Data theft attempts are on the rise, and attacks on payroll services have also increased. Check out these Tax Tips on keeping computer data safe. Also, share them with in-house payroll processors, tax compliance personnel, clients and partners. Create a recovery plan and report thefts immediately Create a recovery …

New and draft forms and publication on IRS.gov

New form: Form 8809, Application for Extension of Time to File Information Returns New pubs: Pub 1141, General Rules and Specifications for Substitute Forms W-2 and W-3 Pub 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G Draft form: 2020 Form W-4, Employee’s Withholding Allowance Certificate (draft)

After $1.1B Connecticut Tax Measure, Penalties Waived for Late Filers

Connecticut’s tax collector is notifying nearly 10,000 business owners that they are eligible for waivers on penalties, which were assessed after they were late submitting estimated taxes for a new “pass-through entity” filing option the state established last year as a workaround to help some limit the impact of changes in federal tax law. The Connecticut Department of Revenue Services …

IRS automatically waives estimated tax penalty for eligible 2018 filers

The IRS recently announced it is automatically waiving the estimated tax penalty for eligible taxpayers who already filed their 2018 federal income tax returns but did not claim the waiver. Many business owners, especially self-employed individuals who received income subject to withholding, would qualify for this relief. The waiver applies to any individual taxpayer who paid at least 80% of …

Truckers: File your highway use tax by Sept. 3

Truck drivers who have registered, or are required to register, a heavy highway vehicle with a taxable gross weight of 55,000 pounds or more must file Form 2290, Heavy Highway Vehicle Use Tax, and pay any tax due by the deadline. For most Form 2290 taxpayers, the deadline is Tuesday, Sept. 3, for vehicles used on the road in July. …

Security Summit warns of new IRS impersonation email scam

Last week, the IRS detected this new scam about unsolicited emails from IRS imposters. The email subject line may vary, but recent examples use the phrase “Automatic Income Tax Reminder” or “Electronic Tax Return Reminder.” The emails have links that show an IRS.gov-like website with details pretending to be about the taxpayer’s refund, electronic return or tax account. The emails …

Self employment tax

“U.S. Territories – Self-Employment Tax” webinar

Topic:  U.S. Territories – Self-Employment Tax Aired:  Wednesday, June 19, 2019 View:   IRS Video Portal The Spanish version is also available on the portal. The complete transcript is provided as closed captioning, and the PowerPoint presentation is posted for downloading under the “Slides PDF” link. To view other archived webinars of interest to the small business and self-employed community, visit …