Kilgore & Co Accountancy

The IRA contribution deadline has been extended to May 17. Same for Health Savings Accounts and others.The IRA contribution deadline has been extended to May 17. Same for Health Savings Accounts and others.

The deadline has been extended to May 31. FREE CASH!

The PPP loan application deadline has been extended to May 31. FYI to business owners.The PPP loan application deadline has been extended to May 31. FYI to business owners.

IRS IS STILL PROCESSING 2019 RETURNS! In an article from The Washington Post, dated March 17, 2021, they report the IRS has a backlog of 24 million returns awaiting processing since the 2019 tax year. Also The Washington Post stated, That includes more than 12.3 million paper-based tax returns the IRS has received, but hasn’t started processing over the past two tax years. - Reported by James Counts, CPA

IRS is pushing back this year's filing deadline to May 17.IRS is pushing back this year's filing deadline to May 17.

LOOKS LIKE SOME 2020 RETURNS WILL NEED AMENDING! 'After hours of negotiations, Democrats struck a new deal to extend the current $300 weekly benefits through Sept. 6 and MAKE A POROTION OF THE 2020 BENEFITS NONTAXABLE for some households.' - WSJ today.

Those who received unemployment benefits in 2020 may get tax relief. See the article in Forbes below. This may mean filing extensions for those affected.

New PPP loans: very good news for the self-employed. From Spidell: In an effort to target PPP loan relief to very small businesses, the Biden administration announced it will revise how loan amounts are calculated for Schedule C earners. The official announcement did not provide details about the change, but according to the New York Times and other sources, under the revised formula the loans will be based on 2.5 times the business’s 2019 average monthly GROSS INCOME rathe...r than their net profits (which for many was $0). According to various articles, the change will not be implemented until early March. The fact sheet also stated that over a 14-day period, starting Wednesday, February 24, only businesses with fewer than 20 employees can apply for PPP funding. Big questions that need to be answered: Will businesses that already received loans be allowed to reapply under the new guidelines? Will the new formula apply to applications in process or should applicants pull their applications and reapply? See more

IRS HAS STILL NOT RELEASED MANY FORMS! 'As you will see today we find out from the IRS that many forms, instructions and publications needed to be able to prepare tax returns for 2020 have not YET been finalized. Plus you will see no estimated dates on when they will be was provided. 'So depending on your taxpayers you may need to further delay finalizing their returns before you can file. If any of your returns have the forms not yet finalized those for sure you will not be able to file until the form is finalized.' - James Counts, CPA of Hemet, CA

$1,000 per new employee California tax credit for 2020... (From Spidell Publishing.) The CDTFA will begin taking tentative credit reservations on December 1 for the new Small Business Hiring Credit. There is only $100 million in available credit and it will be assigned on a first-come, first-served basis.... The credit is only available for the 2020 tax year and may be claimed against personal income tax, corporation franchise or income taxes, or, at the election of the taxpayer, against sales and use taxes. The credit is equal to $1,000 for each net increase in qualified employees. It’s critical that you talk with your clients now to determine if they may be eligible for the credit and be ready to sign up on December 1. A list of the information that will be required when you apply for a tentative credit reservation as well as a list of FAQs is available on the CDTFA’s website: www.cdtfa.ca.gov/taxes-and-fees/SB1447-tax-credit.htm

We work with you on each component of your tax return, so that we can maximize your deductions and maximize your federal and state tax refund. "My family has been Randy's clients for 20+ years. We use Kilgore and Co for two businesses & our personal taxes. Wonderful staff, very helpful and always answer questions immediatly. We always recommend them to friends and family." - Bonnie Y.

Nice state tax credit available to business that: 1 - Laid off workers business during Q-2 of 2020 AND 2 - Rehired workers after the layoff. The credit is $1,000 per added employee.... It MUST be applied for between December 1 and January 15. If you think this may apply to your business, please contact us.

Mr. Trump's deferral of employee FICA taxes is probably not worth taking advantage of. Unless it will be forgiven later. But there is no promise of that.

Good news on 'robocalls': 'The U.S. District Court for the Eastern District of New York has permanently barred two individuals and two companies that transmitted massive volumes of fraudulent robocalls from operating as intermediate voice-over-internet-protocol (VoIP) carriers conveying telephone calls into the U.S. telephone system, the Department of Justice announced today. The consent decree entered yesterday by United States District Judge Eric R. Komitee resolves a civi...l complaint brought by the United States Attorney's Office for the Eastern District of New York and the Department's Consumer Protection Branch. 'The news release also stated, " Many of the robocalls were made by individuals impersonating government investigators conveying false and alarming messages, such as the victim recipient's social security number or other personal information had been compromised or otherwise connected to criminal activity, the recipient faced imminent arrest, the recipient's assets were being frozen, the recipient's bank and credit accounts had suspect activity, the recipient's benefits were being stopped, and the recipient faced imminent deportation - each designed to frighten the recipient into paying large sums of money. Often the numbers that appeared as the originating or caller-ID numbers were "spoofed" to make it appear that they originated from legitimate government or business offices in the United States when in fact they were made by overseas scammers, often located in India. The defendants also sold to foreign call centers toll-free and other U.S. numbers that were left in fraudulent robocall messages on victims' phones to deceive them into believing that the calls were legitimate and originated in the United States. These calls led to significant financial losses to victims throughout the United States and the Eastern District of New York, many of whom were elderly and vulnerable."' - From an original post by James Counts Source: https://oig.ssa.gov//invest/aug26-ny-fraudulent-robocalls

Prop 13 is in danger. VOTE NO on Propositions 15 and 19!Prop 13 is in danger. VOTE NO on Propositions 15 and 19!

IRS is way behind in depositing the checks that taxpayers have sent in payment of their 2019 taxes. But now they are actually sending bills out to those same taxpayers. I other words, IRS HAS the money, but hasn't had time to credit the payments to taxpayer accounts. But they DO have the time to send out bills. (Yes, this IS ridiculous.)

The PPP loan application deadline has been extended to August 8. Contact us if you are interested.The PPP loan application deadline has been extended to August 8. Contact us if you are interested.

Although the Federal 'Obamacare penalty' has been eliminated, California is instituting a penalty to be assessed with your state tax return. The penalty is around $700 per individual and $350 for dependents.

IRS may have no right to recover the $1200 payments to the dead. Even if they DO have the right, they may find it unfeasible to do so, as I and others have suspected. Here is the report from James Counts (June 30, 2020): IRS May Not Be Able to Get Back Payments to Decedents Saw a news item today where the IRS is being criticized for payments to decedents of over $1 billion under the EIP program.... I did not report that the IRS Taxpayer Advocate issued her first report to Congress and she states that the CARES Act does not specifically prohibit payments to decedents. The Taxpayer Advocate states the IRS should not spend their resources to try and recoup those payments. You might remember in 2008 this same thing happened and the IRS did not try to recoup those funds. A few weeks ago I reported my opinion that I did not think the IRS should go after the payments to decedents due to the cost and difficulty to get the funds back. The next news item (in this Daily Update) is a Senate bill that appears to make changes in the IRS requirements to recover incorrect payments by the IRS. I was unable to find a draft of the bill at this time so not sure what the bill might say if enacted. So we have not heard the last on this issue but I again believe the IRS will not be going after any EIP payments do decedents. Link to news article: https://www.foxbusiness.com//irs-stimulus-checks-dead-peop

PPP loan cancellation notes - FYI: One participating bank recently sent an email message that included the following text: "Please refrain from submitting any Program documentation until you have been contacted by us so that we may guide and streamline your efforts and reduce the possibility of resubmissions."

Retired people: If you already took your Required Minimum Distribution for 2020, you may redeposit it by August 31 without tax or penalty: WASHINGTON The Internal Revenue Service today announced that anyone who already took a required minimum distribution (RMD) in 2020 from certain retirement accounts now has the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver for 2020. The 60-day rollover period for any RMDs already taken this year has been extended to Aug. 31, 2020, to give taxpayers time to take advantage of this opportunity.

IRS extends due dates for (some) unpaid taxes. Here is a recent notice from IRS: BALANCE DUE NOTICE MAILINGS: DUE DATES EXTENDED TO HELP TAXPAYERS Due to the COVID-19 pandemic, the IRS was unable to mail some previously printed balance due notices as a result of office closures. As IRS operations continue to reopen, these notices will be delivered to taxpayers in the next few weeks. Given the time it would take to reprogram IRS systems, and generate updated notices, some of ...the notices taxpayers will receive have due dates that have already passed. However, each notice will include an insert confirming that the due dates printed on the notices have been extended. Extended Payment Due Dates: The payment due dates printed on the notices have been extended, as described in the insert. The new payment due date will be either July 10, 2020, or July 15, 2020, depending upon the type of tax return and original due date. Taxpayers should be sure to read the insert included with the notice that explains the delay and provides the correct payment due dates.

Reported today by James Counts, CPA: SBA and Treasury To Disclose More on Who Got PPP Loans The SBA and Treasury have agreed with the bipartisan leaders of the U.S. Senate Small Business Committee to make public additional data regarding the Paycheck Protection Program (PPP). This agreement will ensure that the interests of both transparency and protections for small businesses are served.... SBA will disclose the business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, jobs supported, and loan amount ranges as follows: $150,000-350,000 $350,000-1 million $1-2 million $2-5 million $5-10 million These categories account for nearly 75 percent of the loan dollars approved. For loans below $150,000, totals will be released, aggregated by zip code, by industry, by business type, and by various demographic categories. The link below is only what information they had been disclosing about PPP loans. Once the new information is available I will post that link. Link to data to date; https://home.treasury.gov//SBA-Paycheck-Protection-Program

PPP LOAN RESTRICTIONS ARE BEING EASED. The PPP loan program is being expanded by Congress and the President is expected to sign the bill. The new bill: Extends the deadline to APPLY for a PPP loan to year-end. Extends the time to SPEND the proceeds of the loan from 8 weeks to 24 weeks! (House version.) Lowers the portion of the funds that must be spent on payroll costs from 75% to 60% to qualify for loan forgiveness. (House version.)... Lengthens the term of the loan from 2 to 5 years. (The Senate version extended the payout period to 16 weeks, not 24, and keeps the original 75% payroll expenditure. We expect that the House version will be adopted.) See more

OPINION: There is something unfair in the Paycheck Protection Program. If a business is given a PPP loan, and continues to pay wages to employees for the following 60 days, the loan will cancelled. The loan turns into a grant. (I'm simplifying.) But suppose your business is a restaurant that has been shut down by the governor? You would certainly qualify to receive the loan, but you couldn't afford to re-hire employees to do nothing because with zero income you desperate...ly need the funds to pay rent and other ongoing overhead costs. And the result is that your loan is NOT cancelled because you haven't spent the funds on wage payments. A reasonable fix would be to defer the start of the 60-day clock to the point when the forced shutdown is over. Then employers (like restaurants) could reopen and rehire their employees, and thus be able to count the wages paid from that point on.

Gavin Newsom wants to hang the cost of COVID-19 on employers. This will have two economic effects: 1 Wage levels will be depressed. 2 Prices charged to consumers will be increased. The following is from James Counts, CPA of Hemet:... California Governor Wants California Businesses to Pay for COVID-19 Costs with Worker Compensation Costs California Governor Gavin Newsom issues Executive Order making COVID-19 illness PRESUMPTIVELY WORK RELATED. The key takeaways from the order include: Identification of four requirements to establish workers compensation link: 1. The employee was diagnosed within 14 days of working at their place of employment. 2. Employee received a COVID-19 diagnosis on or after March 19, 2020. 3. Their place of employment is not their home. 4. Diagnosis was done by a licensed California physician and confirmed by testing within 30 days.

Self-employed business owners may be able to get unemployment - click below.

'Both World War I and World War IIand, indeed, the Vietnam Warwere followed by nasty bouts of inflation. If that happens again, policy makers today being cheered for their swift, decisive action will instead have to answer for their grave lack of foresight.'

The WSJ reports today that the House is set to pass the Senate's $484 billion stimulus bill.The WSJ reports today that the House is set to pass the Senate's $484 billion stimulus bill.

Some Borrowers for PPP Loans Will Have to Returns the Funds! Per the COVID-19 Task Force news conference today Secretary Mnuchin stated will expect many of the large businesses to return the funds borrowed and if they do it voluntarily will not be any penalties but if they do not then there will be penalties. This will make more PPP loans available to small businesses.

IRS has a website for tracking COVID19 relief payments.

To get your $1200 COVID19 payment - for those who did not file returns for 2018 or 2019.: https://www.freefilefillableforms.com/

Hope this helps...

Required Minimum (IRA) Distributions are suspended for 2020. Those who have already taken RMDs they may re-contribute by 7/15.Required Minimum (IRA) Distributions are suspended for 2020. Those who have already taken RMDs they may re-contribute by 7/15.

IRS now has a web page for nonfilers to enter their banking data - to get their $1200 disbursements. Another page for CORRECTING your bank information will be available next week.

IRS has extended the filing deadline for 'all taxpayers' to July 15. That means for businesses and trusts (as well as 1040s).IRS has extended the filing deadline for 'all taxpayers' to July 15. That means for businesses and trusts (as well as 1040s).

IRS has closed its massive Ogden service center due to the pandemic. Expect little 'service' at this time.IRS has closed its massive Ogden service center due to the pandemic. Expect little 'service' at this time.

Your cash is on the way! IRS: The $1200 stimulus payments will be direct-deposited by 4/14. Checks will go out starting 4/20.Your cash is on the way! IRS: The $1200 stimulus payments will be direct-deposited by 4/14. Checks will go out starting 4/20.

Virtually all businesses should be filing for the $10K SBA handout. https://covid19relief.sba.gov/#/ Contact us if you need help with this.

I'm not sure how big a concern this is, but NEVER respond to a phone call from IRS. They don't EVER call.

SBA is handing out $10K grants! ALL business clients, including ind. contractors & landlords should apply to the SBA! See below.SBA is handing out $10K grants! ALL business clients, including ind. contractors & landlords should apply to the SBA! See below.

MORE CORONAVIRUS HELP - IRA DISTRIBUTIONS: You may withdraw IRA fund without the Federal 10% penalty, and spread the tax over three years. The funds may be redeposited (and deducted) within three years. This applies to those who lost income due the the pandemic because of loss of wages or a slowdown/shutdown of their own businesses.

IMPORTANT! FREE STUFF! CORONAVIRUS RELIEF! (Third of three posts.) THIRD FORGIVABLE BUSINESS LOANS (YES, FORGIVABLE): 1. You may make a loan guaranteed by the Small Business Administration (SBA) and not pay it back ever based on how many employees you retain. The amount of the potentially forgivable loan is equal to two months’ worth of wages, employee health insurance, other employee benefits, rent, utilities, and interest on existing loans and mortgages. ... 2. This forgivable amount is 100% cancelled if you maintain 100% of your workforce, 80% cancelled if you maintain 80% of your workforce, etc. If wage payments fall by over 25%, there is also an adjustment of the forgiven portion. 3. For instance, if a business pays wages, benefits, rent, utilities of $75,000 a month, it could borrow money (in whatever amount) through an SBA loan, and $150,000 (two months of those expenses) would be wiped out, assuming no attrition of work force. If half the employees were laid off, then $75,000 would be forgiven. (This, at least, is our current understanding of the plan.) 4. The loan forgiveness is not (federally) taxable as debt cancellation income. 5. (Apparently) the loan must be applied for by June 30. 6. All payments are deferred for six to twelve months, assuming there is a portion of the debt that has not been cancelled. 7. Those taking advantage of this provision will not be eligible for the payroll tax deferral and payroll rebate discussed above. 8. This is an IMMENSE giveaway, and every business owner should investigate it. Contact your bank! See more

IMPORTANT! FREE STUFF! CORONAVIRUS RELIEF! (Second of three posts.) SECOND RELIEF PROVISIONS FOR SMALL BUSINESSES: 1. For businesses that suffer net losses, those losses may be treated as deductions applicable to prior years going back five years. This applies to losses arising in tax years 2018, 2019, and 2020. So if you suffered such a loss (called a Net Operating Loss) in one of those three years, you will be able to recover taxes paid for tax years 2013 to the pre...sent. Any losses not so absorbed will be carried to future years. This will be done by amending the tax returns for the target years. (We will be scanning client data for 2018 et seq., and will contact you if indicated.) 2. Payment of some payroll taxes may be deferred to 2021 and 2022. This applies to the employer’s share of Social Security and Medicare taxes. Half of those such owed for 2020 may be deferred until December of 2021, and the other half will be due a year after that. (But see ‘Third’ below.) 3. This deferral of SS and Medicare taxes also applies to 50% of Self Employment Tax (for sole proprietors). 4. Employers who have shut down or slowed down, but who continue to pay wages, will receive $5,000 for every employee they keep on the payroll. (The details of this are very complex, so we will need clarification before we can promise it for sure. More details to come.) (But see ‘Third’ below.) 5. Employers may pay up to $5,250 toward employees’ student loans without treating the payments as wages subject to income and payroll taxes. This applies to payments during 2020 only. See more

IMPORTANT! FREE STUFF! CORONAVIRUS RELIEF! (First of three posts.) The Coronavirus is an ill wind, but it may blow some good your way. Or at least some Congressional help may be coming to you. Read on the business provisions at the end are very interesting:... Congress is rushing through its Coronavirus stimulus the CARES Act. It is a grab-bag of handouts, some may apply to you, and others will not. Some are pretty good and some are fantastic. There will be many sources of information available soon about how you may benefit, including the SBA, IRS, FTB, and various news outlets. We will be posting information on our Facebook page frequently (see below). Please ‘like and follow’ in order to get updates. The CARES Act is scheduled for a House vote tomorrow, Friday 3/27, and presumably it will pass, and it looks like President Trump will endorse it as-is. Here are a few of the high points. FIRST IMMEDIATE CASH PAYMENTS: 1. Except for high earners, every taxpayer gets a payout a ‘Recovery Rebate’ of $1,200. Those whose incomes are below $75,000 (single), $150,000 (joint) and $112,500 (head of household) will receive full cash payments of $1,200 ($2,400 joint). The payouts are increased by $500 for each dependent child under 17. 2. The above amounts will be phased out at higher incomes. There will be total phase-outs for those whose incomes exceed $99,000 (single), $198,000 (joint), and $146,500 (head of household). 3. The income thresholds will be based on your 2019 Adjusted Gross Income. If you haven’t filed your 2019 return yet, they will base it on your 2018 AGI. (If it turns out you qualify based on your 2018 income but fail to qualify under your 2019 income, we have no idea at this point whether you have to pay it back.) 4. It seems that you won’t need to apply for the payment it will be directly deposited to your account or a check will be sent to you.

CORONAVIRUS EMERGENCY TAX CHANGES - HERE ARE THE HIGH POINTS: - 1040s are due 7/15 (not 4/15). (May be extended to 10/15.) - Underpaid tax for 2019 may be paid as late as 7/15.... - For quarterly estimates, your 4/15 payment is due 7/15. - No penalty will be charged on the above if paid by 7/15. - IRA and HSA contributions can be made through 7/15. - The Q-2 estimated tax payment is still due June 15. - California returns and underpaid 2019 tax are due 7/15. - California estimated tax payments for April are due 7/15. - Other states have conformed to the Fed changes, but not all. See more

This year's tax deadline has been extended to July 15. No penalties or interest will be charged for not paying tax by April 15! We continue to work on tax returns. Feel free to contact us - by phone or email, please. You may email your documents to us or drop them through our mail slot.

To clients who are unable to visit our office: Please call so we can arrange to get your tax data from you.To clients who are unable to visit our office: Please call so we can arrange to get your tax data from you.

April 15 may be postponed. IRS has been given authority to extend the deadline. Awaiting details...April 15 may be postponed. IRS has been given authority to extend the deadline. Awaiting details...

The governor of California has extended the filing deadline by 60 days. Now we wait for whatever action IRS may take.The governor of California has extended the filing deadline by 60 days. Now we wait for whatever action IRS may take.

'The Trump administration is likely to extend the April 15 tax deadline.' This was published last night by the WSJ. See below...'The Trump administration is likely to extend the April 15 tax deadline.' This was published last night by the WSJ. See below...

Beware: Phony IRS scammers are active right now.

Girl Scout Cookies are now available for sale in our office. Come on by and get your favorites while they last!Girl Scout Cookies are now available for sale in our office. Come on by and get your favorites while they last!

We reduce our clients’ tax burdens conscientiously, creatively and lawfully.

"Randy Kilgore has been my accountant for almost 20 years. I have great faith in his expertise and appreciate the excellent service provided by everyone in the office." - Debby L.

"Randy is a consumate professional. I have used his services for years and I have referred several of my friends and clients to him. All of them have been very pleased." - Patricia W.

"Kilgore's insights into the nuances of the tax code are unparalleled. Do I enjoy tax time? No. But Kilgore and Co. certainly take a lot of the weight off my shoulders. They are the only firm I recommend, no matter who asks." - Dave P.

"Always a blessing to do business with accountable accountants! And wonderful people on a personal level, I recently sent a Captain, and his wife who is a Sergeant that I have worked for, knowing they will receive excellence!" - Milton