West Allis, WI – At the close of each tax filing season, the Internal Revenue Service (IRS) compiles a list of the most common errors taxpayers make when filing their tax returns. Believe it or not, incorrect mathematical calculations are not the number one error. The most frequent culprit for the past several years is submitting incorrect Social Security numbers on individual income tax returns.
When an incorrect return is filed, the IRS first “rejects” it then sends a notice to the taxpayer requesting additional information. This can delay a refund by several weeks, or even months. In other instances, the IRS may issue a refund to you, but for a lesser amount than what you were expecting. This may occur when a claimed dependent has a missing or incorrect Social Security number, or when another taxpayer claims the same dependent.
Another reason you may receive a reduced refund is if you are eligible to claim a tax credit for child and dependent care expenses but you do not include the Social Security number of your caregiver on your tax return. The IRS will issue your refund, less the amount of the credit. You will then have to file an amended return and wait several more weeks for the rest of your money. All this can be avoided if care is given when entering required information on your return.
Other details to keep in mind when filing your taxes this year include:
Taking a few minutes to double check your tax return before you send it to the IRS, whether we mail it or electronically file, will increase the likeliness that IRS issues your refund in a timely manner. The IRS encourages taxpayers to e-file. By e-filing your tax return, many common errors may be avoided or corrected by the computer software.
Contacting Spencer Accounting Group is the easiest way to e-file. We are the experts who keeps current on tax law changes as well as a member of the WICPA and the AICPA.
Here is what you will need:
This list is a continuation of our article of a Healthy Work Environment.
Student loan interest has been waived according to the Press Conference at the White House with the President. However, when I go to Navient website here is their statement:
As we find out more we will ensure we are updating you. If you have any questions contact us.
Treasury and IRS have extended the April 15, 2020 filing deadline by 90 days to July 15, 2020.
We’re waiting on IRS to release details and the specific guidance, and we will share that as soon as we see it, too.
This is great news for practitioners, and it’s a great tribute to the combined advocacy work of the WICPA, state CPA societies, AICPA and all our members!
With COVID-19 internet use has increased tremendously, since more people are staying at home there is an increase in video chats, online streaming and other online communications.
Here are some tips to stay mindful of when working from home:
With COVID-19 we are required to practice active social distancing however we don't want to socially disconnect. Actively scheduling client meeting and attending trainings and conference calls virtually will reduce the change of social disconnection.
Creating Morning routines, Keeping regular office hours and client meetings will help protect or create boundaries between work and home life.
Virtual socialization with colleagues, and attending trainings and conferences virtually of course will help avoid the creative staleness.
Positions that can easily convert to work at home:
The US Department of Treasury delays payments of the April 15th tax deadline to 90 days. This is a penalty free delay to pay not to file. You are still required to file timely returns.
At this time April 15th filing deadline remains in effect. You still have the option to file an six month extension of time to file, this will give you to October 15, 2020 to file your return.
The extension of time to pay gives individuals and Corporations an additional 90 days to send in their payments. Currently the guidance on this rule has not been written, once a written guidance is issued we will share any additional information with you.
Individuals and Corporations with due dates of April 15, this extension applies to you.
Individuals can defer up to $1 million in taxes due.
Corporations can defer up to $10 million in taxes due.
There is even an opportunity to delay your estimated quarterly tax payments.
Spencer Accounting Group, is focused on your safety and well being. We are for the foreseeable future 100% virtual, this will assist in adherence of social distancing and protect our families, our teams and all our clients. If you have any concerns please contact us.
Governor Tony Evers has changed the State ban from 50 or less to 10 or less people. The State of Wisconsin has banned all gathering of 10 or less. In just a day the amount of people infected with this virus has increased including the death toll. We need to all ensure extreme caution with proceeding with daily activities.
We have seen Actors, Professional Athletes, and Everyday People are being affected with COVID-19, protect your families by protecting yourself.
You are not alone if your business is without a retirement plan, however that doesn't mean it is a good idea. You are paying more taxes then you need to be.
Owner's of profitable business operations have the potential to a really large annual deduction---Sweet!
With the proper retirement plan, you can exceed the traditional elective deferral contribution limit of $19,500 (indexed).
Under the right circumstances, we can help you create a great retirement plan. If you would like to discuss this with me, please call me at 262-358-8297.
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Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.
Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.