Pacific Tax Professionals

Check the status of your refund here: www.irs.gov/refunds

With so many changes this year, the IRS recommends all taxpayers review their withholding annually. Use the IRS Tax Withholding Estimator to check and make sure... you’re not having too little or too much federal tax withheld. This tool offers workers, retirees and self-employed individuals a step-by-step method to help figure out if you should adjust your withholding. If you do need to adjust your withholding simply submit a new IRS Form W-4, Employee’s Withholding Certificate to your employer. To learn more, click here: https://go.usa.gov/xfSMk

Make sure to have withholding from Unemployment to avoid any "surprise" tax bills!

Fake charities make the list of the IRS Dirty Dozen tax scams again. Criminals frequently target natural disasters and other situations, such as COVID-19, by se...tting up fake charities to steal from well-intentioned people trying to help in times of need. Fraudulent schemes normally start with unsolicited contact by phone, text, social media, email or in-person using a variety of tactics. To see more IRS Dirty Dozen scams, click here: www.irs.gov/dirtydozen See more

File those back taxes!

If you owe 2019 income taxes and estimated tax for 2020, you must make two separate payments on or by July 15, 2020. One for your 2019 income tax liability and ...one for your 2020 estimated tax payments. If you owe two estimated tax payments, they can be combined into a single payment. Individuals can use Direct Pay for two payments each day. For businesses or those making large payments, the best payment option is the Electronic Federal Tax Payment System, which allows up to five payments per day. Enrollment is required. Visit IRS.gov/eftps for details. For more info and details about other payment options, click here: https://go.usa.gov/xfcAb

You have until July 15 to file your 2019 federal tax return. If you owe taxes or need to make estimated tax payments, there are many ways to pay. You can use IR...S Direct Pay, a credit or debit card, or the Electronic Federal Tax Payment System. You can even pay by cash. To find out more about these and other options, visit IRS.gov/payments. See more

The IRS has seen an increase in phishing schemes and fake charities. There are also more scams related to selling fake at-home test kits, offers to sell fake cu...res, vaccines, pills and advice on unproven treatments. Don’t fall victim to these scams, learn how to spot and report them. Click here: https://go.usa.gov/xwXMT #COVIDreliefIRS

You can still request an extension for Oct 15, 2020!

The IRS People First Initiative provides relief for taxpayers. The IRS moved several deadlines to Wednesday, July 15, 2020, including: April 15 tax filing dea...dline Existing Installment Agreements Offer in Compromise payments Automated liens and levies For a full list of the affected deadlines, click here: https://go.usa.gov/xvstN #COVIDreliefIRS

Estimated taxes pushed back but due soon!

The new #IRS Get My Payment tool is operating at record volumes. So far, 9.8M people got an Economic Impact Payment status and 1.6M provided direct deposit info...rmation. In some situations, the app responds: Status Not Available. Learn what this means at https://go.usa.gov/xv8qh #COVIDreliefIRS See more

Did you request a direct deposit of Economic Impact Payment but the IRS is mailing it? There are several reasons why your payment may have been sent by mail. Th...ese include: The payment was already in process before the bank information was entered. The IRS does not have the correct bank account information. The bank rejected the direct deposit. The IRS will mail the payment to the address on file. It will typically take up to 14 days for you to receive it. To look at the EIP FAQs, click here: https://www.irs.gov/eipfaq #COVIDreliefIRS

If you would like your Stimulus check to be direct deposit input your information on the IRS website.

The IRS deadline is now July 15. All taxpayers -- individuals, corporations, other non-corporate filers and those who pay self-employment tax -- can also defer federal income tax payments. For this and more #COVIDreliefIRS see www.irs.gov/coronavirus

If you make estimated tax payments, it’s important for you to know the tax deadline has changed. First and second quarter estimated tax payments normally due Ap...ril 15 and June 15 are postponed to July 15. To learn more about estimated tax payments, click here: https://www.irs.gov//irs-extends-more-tax-deadlines-to-cov #COVIDreliefIRS

Did you know that the 10% additional tax on early distributions from eligible retirement plans does not apply to any coronavirus-related distribution? There’s ...new rules about IRA & retirement plan distribution options and rollovers. IRS.gov has FAQs to help you better understand these changes. To find out more, click here: https://go.usa.gov/xv7Br #COVIDReliefIRS

#IRS will launch a tool that allows taxpayers who filed taxes without banking information to provide it to the IRS to receive an Economic Impact Payment faster. If you previously chose direct deposit, you don’t need to take any action. www.irs.gov/eip #COVIDreliefIRS

Homeless Americans also qualify for an Economic Impact Payment. If they normally don’t file taxes, they need to sign up with the IRS. Here’s what they’ll need: ... Name, an address and an email Date of birth and valid SSN Bank account, if they have one IP PIN if they got one from IRS earlier License or state ID, if they have one Name, SSN and relationship for each child An #IRS online feature is designed for people with low incomes to sign up to get an Economic Impact Payment; homeless Americans are urged to use this free tool: www.irs.gov/nonfilereip #COVIDreliefIRS Help us spread the word!

To help everyone check the status of their Economic Impact Payment, IRS is launching a tool that will provide the status of a payment, including the date it’s scheduled to be deposited or mailed. www.irs.gov/eip #COVIDreliefIRS

A new IRS online feature helps people who normally don’t file get Economic Impact Payments www.irs.gov/eip #COVIDreliefIRS

The IRS has opened up the portal for Non Filers! If you don't file a tax return use this portal to provide your payment information and the IRS will determine your eligibility and payment amount. Information You will Need to Provide: +Full name, current mailing address and an email address... +Date of birth and valid Social Security number +Bank account number, type and routing number, if you have one +Identity Protection Personal Identification Number (IP PIN) you received from the IRS earlier this year, if you have one +Driver’s license or state-issued ID, if you have one +For each qualifying child: name, Social Security number or Adoption Taxpayer Identification Number and their relationship to you or your spouse #taxes #economicstimulus #covid19 #longbeach

Social Security recipients not typically required to file tax returns will automatically receive economic impact payments. To get the latest information on economic impact payments from the IRS, click here: www.irs.gov/coronavirus

If IRS doesn’t have your direct deposit info, a check will be mailed to your address on file. For your #TaxSecurity, do NOT provide your direct deposit or banking information for others to input on your behalf into the IRS secure portal. https://go.usa.gov/xvrf7 #COVIDreliefIRS

IRS Statement: Economic Stimulus Payments: What You Need to Know 3/30/2020 6:45 PM WASHINGTON The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment. Who is el...Continue reading

JULY 15, 2020 NEW DEADLINE!

We are open but taking limited in office appointments to protect the community. To our elderly clients we ask that you drop off your paperwork to limit your exposure to the public. Fax or Email also works.

CALIFORNIA EXTENSION to JUNE 15, 2020! Sacramento The Franchise Tax Board (FTB) today announced special tax relief for California taxpayers affected by the COVID-19 pandemic. Affected taxpayers are granted an extension to file 2019 California tax returns and make certain payments until June 15, 2020, in line with Governor Newsom’s March 12 Executive Order. During this public health emergency, every Californian should be free to focus on their health and wellbeing, said St...ate Controller Betty T. Yee, who serves as chair of FTB. Having extra time to file their taxes helps allows people to do this, as the experts work to control the spread of coronavirus. This relief includes moving the various tax filing and payment deadlines that occur on March 15, 2020, through June 15, 2020, to June 15, 2020. This includes: Partnerships and LLCs who are taxed as partnerships whose tax returns are due on March 15 now have a 90-day extension to file and pay by June 15. Individual filers whose tax returns are due on April 15 now have a 60-day extension to file and pay by June 15. Quarterly estimated tax payments due on April 15 now have a 60-day extension to pay by June 15. The FTB’s June 15 extended due date may be pushed back even further if the Internal Revenue Service grants a longer relief period. Taxpayers claiming the special COVID-19 relief should write the name of the state of emergency (for example, COVID-19) in black ink at the top of the tax return to alert FTB of the special extension period. If taxpayers are e-filing, they should follow the software instructions to enter disaster information. The FTB will also waive interest and any late filing or late payment penalties that would otherwise apply.

Avoid unethical "ghost" preparers!

Retired? Your benefits may be taxable! Distributions from retirement plans must be included in income unless they represent an employee’s own contribution, such as after-tax employee contributions, or if the distribution is a qualified distribution from a Designated Roth Account. If the employee is under age 59 , Tax on Early Distributions may apply! Keep an eye out for form 1099-R!

What is an ITIN? It was created for tax purposes. The ITIN program was created by the IRS in July 1996 so that foreign nationals and other individuals who are not eligible for a Social Security number (SSN) can pay the taxes they are legally required to pay. Many immigrants have ITINs. People who do not have a lawful status in the United States may obtain an ITIN. In addition, the following people are lawfully in the country and must pay taxes but may not be eligible for a S...SN and may obtain an ITIN: *ITINs do NOT provide legal status or work authorization. *An ITIN does not provide legal immigration status and cannot be used to prove legal presence in the United States. * An ITIN does not provide work authorization and cannot be used to prove work authorization on an I-9 form. *ITIN holders pay taxes. ITIN holders are not eligible for all of the tax benefits and public benefits that U.S. citizens and other taxpayers can receive. For example, an ITIN holder is not eligible for Social Security benefits or the Earned Income Tax Credit (EITC). However, if that person becomes eligible for Social Security in the future (for example, by becoming a lawful permanent resident), the earnings reported with an ITIN may be counted toward the amount he or she is eligible to receive. Some ITIN holders are eligible for the Child Tax Credit (CTC). According to the new tax bill passed in December 2017, the CTC tax credit may be worth as much as $2,000 per qualifying child, depending upon the applicant’s income. Because ITIN holders are eligible for the CTC, over 4 million U.S. citizen children benefit from the tax credit, however if a child does not have a SSN they are no longer eligible for the tax credit.

Happy New Year Long Beach! Set those tax appointments now! The 2019 filing season starts January 27, 2020! We provide free estimates! Let's get those refunds!

2020 TAX SEASON TO START! FIRST DAY TO EFILE IS MONDAY, JANUARY 27TH. SET YOUR APPOINTMENT NOW!

HEALTH CARE MANDATE! The State of California is working to reduce the number of uninsured families with the adoption of a new state individual health care mandate. Here are three things California residents need to know:... 1. Make sure you have health coverage The mandate, which takes effect on January 1, 2020, requires Californians to have qualifying health insurance coverage throughout the year. Many people already have qualifying health insurance coverage, including employer-sponsored plans, coverage purchased through Covered California or directly from insurers, Medicare, and most Medicaid plans. Under the new mandate, those who fail to maintain qualifying health insurance coverage could face a financial penalty unless they qualify for an exemption. Generally speaking, a taxpayer who fails to secure coverage will be subject to a penalty of $695 when they file their 2020 state income tax return in 2021. The penalty for a dependent child is half of what it would be for an adult. The penalty is based on your state income and the number of people in your household.

Tax deadline fast approaching! Don't end paying extra penalties by not filing by Tuesday, October 15th! It may not be as bad as you think! Come in and let us help you! Two locations to serve you, Long Beach & Pasadena!

EXTENSIONS DUE OCTOBER 15, 2019! What happens if I miss the October tax extension deadline? You’ll owe more interest. A tax extension gives you more time to file your return, not more time to pay.... You may owe a higher late-payment penalty. The IRS’ late-payment penalty normally is 0.5% per month of the outstanding tax not paid by the April deadline. The maximum penalty is 25%. You’re supposed to pay at least 90% of your tax liability by the April deadline, but this year you might catch a break on the penalty if you’ve paid at least 80% of your actual tax liability by the April deadline and you pay the rest with your return. You may owe a late-filing penalty. The IRS can also sock you with a late-filing penalty of 5% of the amount due for every month or partial month your tax return is late. The maximum penalty is 25% of the amount due.

3rd Quarter Estimated Tax Payments due SEPT, 16, 2019. Pay online or use IRS Form 1040-ES

PREPARING FOR A DISASTER Planning what to do in case of a disaster is an important part of being prepared. The Internal Revenue Service encourages taxpayers to safeguard their records. Some simple steps can help taxpayers and businesses protect financial and tax records in case of disasters. Take Advantage of Paperless Recordkeeping for Financial and Tax Records.... Many people receive bank statements and documents by e-mail. This method is an outstanding way to secure financial records. Important tax records such as W-2s, tax returns and other paper documents can be scanned onto an electronic format. Be sure you back up your electronic files and store them in a safe place. Making duplicates and keeping them in a separate location is a good business practice. Other options include copying files onto a CD or DVD. Also, many retail stores sell computer software packages that you can use for recordkeeping. When choosing a place to keep your important records, convenience to your home should not be your primary concern. Remember, a disaster that strikes your home is also likely to affect other facilities nearby, making quick retrieval of your records difficult and maybe even impossible. Document Valuables and Business Equipment The IRS has disaster loss workbooks for individuals ( Publication 584, Casualty, Disaster, and Theft Loss Workbook) and businesses ( Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook) that can help you compile a room-by-room list of your belongings or business equipment. This will help you recall and prove the market value of items for insurance and casualty loss claims. One option is to photograph or videotape the contents of your home and/or business, especially items of greater value. You should store the photos with a friend or family member who lives away from the geographic area at risk.

Never a bad idea to check your withholding's midway thru the year!

HOME OFFICE DEDUCTION IRS Tax Tip 2019-66, May 28, 2019 Small business owners may qualify for a home office deduction that will help them save money on their taxes, and benefit their bottom line. Taxpayers can take this deduction if they use a portion of their home exclusively, and on a regular basis, for any of the following:... As the taxpayer’s main place of business. As a place of business where the taxpayer meets patients, clients or customers. The taxpayer must meet these people in the normal course of business. If it is a separate structure that is not attached to the taxpayer’s home. The taxpayer must use this structure in connection with their business A place where the taxpayer stores inventory or samples. This place must be the sole, fixed location of their business. Under certain circumstances, the structure where the taxpayer provides day care services. Deductible expenses for business use of a home include: Real estate taxes Mortgage interest Rent Casualty losses Utilities Insurance Depreciation Repairs and Maintenance Certain expenses are limited to the net income of the business. These are known as allocable expenses. They include things such as utilities, insurance, and depreciation. While allocable expenses cannot create a business loss, they can be carried forward to the next year. If the taxpayer carries them forward, the expenses are subject to the same limitation rules.

With all the fraud and identity theft that has been happening, we strongly suggest pulling your credit report and reviewing it. Federal law allows you to get a free copy of your credit report every 12 months from each credit reporting company. So, once a year you are entitled to pull your credit report for FREE from all 3 credit agencies.

Great organization to make a donation too!

IRS waives penalty for many whose tax withholding and estimated tax payments fell short in 2018.

The IRS today warned the public about a new twist on the IRS impersonation phone scam whereby criminals fake calls from the Taxpayer Advocate Service.

If you haven't filed 2015 tax returns, you must file by April 15, 2019 to claim a refund otherwise you lose it!

This has been true...

IRS Info on Refunds With EIC and ACTC The IRS reminded taxpayers last week that "By law, the IRS cannot release tax refunds for Earned Income Tax Credit or the Additional Child Tax Credit related tax returns before mid-February. Where's My Refund? will be updated by Feb. 23 for most early filers who claimed EIC or ACTC. These taxpayers will not see a refund date on Where's My Refund? until then. The earliest EIC and ACTC related refunds should be available in taxpayer bank accounts and debit cards starting Feb. 27, if taxpayers used direct deposit and there are no other issues with their tax returns."

This has been one of the biggest impacts this year. Refunds have been smaller in part to this limitation.

Very interesting start to this tax season...

The IRS has reopened following the end of the government shutdown, and IRS employees are working hard to resume normal operations and help taxpayers as much as possible. As the IRS resumes operations, there are some important pieces of information for taxpayers and tax professionals to keep in mind in several areas: Audits. For taxpayers and tax professionals with questions about examinations affected by the shutdown, we have Frequently Asked Questions.... Collections. For taxpayers and tax professionals with a collection issue affected by the shutdown, visit the Frequently Asked Questions. This section includes information related to liens, levies, notices of deficiency, penalties, passports and private debt collection. Tax Filing for individuals. The IRS successfully opened the 2019 filing season for taxpayers on Jan. 28. The IRS will be doing everything it can to have a smooth tax season and minimize the impact on taxpayers. Tax Court. Important updated information for taxpayers and tax professionals with Tax Court cases, including mail being returned and issues with court petitions not being processed.

If you owe the IRS your balance may be transferred out to Collections... Private Debt Collection The IRS began a new private collection program of certain overdue federal tax debts selecting four contractors to implement it. The groups are: CBE Group of Cedar Falls, Iowa; Conserve of Fairport, N.Y.; Performant of Livermore, Calif.; and Pioneer of Horseheads, N.Y. The taxpayer’s account will only be assigned to one of these agencies, never to all four. No other private group i...s authorized to represent the IRS. ***The IRS will always notify a taxpayer before transferring their account to a private collection agency (PCA). The IRS will send a letter to the taxpayer and their tax representative informing them that their account is being assigned to a PCA and giving the name and contact information for the PCA. This mailing will include a copy of Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency.

Child tax credit and additional child tax credit For 2018, the maximum credit increased to $2,000 per qualifying child. Up to $1,400 of the credit can be refundable for each qualifying child as the additional child tax credit. ... In addition, the income threshold at which the child tax credit begins to phase out is increased to $200,000, or $400,000 if married filing jointly. THIS MEANS THAT more families with children under 17 qualify for the larger credit.

Warning...refunds could be delayed

IRS Notice 2018-37 Alimony and separate maintenance payments are no longer deductible for any agreement executed or modified after December 31, 2018.

DID YOU MOVE IN 2018? The deduction for moving expenses has been suspended for most taxpayers for tax years beginning after Dec. 31, 2017 through Jan. 1, 2026. This suspension does not apply to members of the Armed Forces of the United States on active duty who move pursuant to a military order related to a permanent change of station. However, employers may exclude from wages any 2018 reimbursements to or payments on behalf of employees for moving expenses incurred for a move that took place prior to January 1, 2018, and which would have been deductible had they been paid prior to that date. See Notice 2018-75 for more information.

TAX REFORM BASICS FOR INDIVIDUALS & FAMILIES Deduction for state and local income, sales and property taxes modified. Your total deduction for state and local income, sales and property taxes is limited to a combined, total deduction of $10,000 ($5,000 if Married Filing Separate). Any state and local taxes you paid above this amount cannot be... deducted. No deduction is allowed for foreign real property taxes. Property taxes associated with carrying on a trade or business are fully deductible. THIS MEANS THATif you do itemize you can deduct state and local income, sales, and property taxes but only up to $10,000 ($5,000 if Married Filing Separate).

Reminder no more writing off job related expenses in 2018! Miscellaneous Itemized Deductions Under the Tax Cuts and Jobs Act, the deduction for miscellaneous itemized deductions that are subject to the... 2% floor is suspended. Therefore, no miscellaneous itemized deductions may be claimed by an individual on Schedule A of Form 1040 for tax years 2018 through 2025. *These deductions include unreimbursed job expenses, tax preparation fees and investment fees and expenses.

IRS Video on the new tax reform.

IRS Confirms Tax Filing Season to Begin January 28! WASHINGTON Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled. We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment to the taxpayers during this period, said IRS Commissioner Chuck Rettig

Starting in 2018, the standard deduction for each filing status is: Single....................$12,000........(up from $6,350 in 2017) Married filing jointly. Qualifying widow(er).............$24,000........(up from $12,700 in 2017)... Married filing separately...$12,000........(up from $6,350 in 2017) Head of household...$18,000........(up from $9,350 in 2017) The amounts are higher if you or your spouse are blind or over age 65.

Here are several changes that could affect the bottom line of many small businesses: Qualified Business Income Deduction Many owners of sole proprietorships, partnerships, trusts and S corporations may deduct 20 percent of their qualified business income. The new deduction -- referred to as the Section 199A deduction or the qualified business income deduction -- is available for tax years beginning after Dec. 31, 2017. Eligible taxpayers can claim it for the first time on the...Continue reading

AMENDING RETURNS CAN TAKE UP TO 4 MONTHS IRS Tax Tip 2018-118, August 1, 2018 Taxpayers who discover they made a mistake on their tax returns after filing can file an amended tax return to correct it. This includes things like changing the filing status, and correcting income, credits or deductions.... Here are some tips for taxpayers who need to amend a tax return. Complete and mail the paper Form 1040X, Amended U.S. Individual Income Tax Return. Taxpayers must file an amended return on paper whether they filed the original return on paper or electronically. Filers should mail the Form 1040X to the address listed in the form’s instructions. However, taxpayers filing Form 1040X in response to a notice received from the IRS, should mail it to the address shown on the notice. If taxpayers used other IRS forms or schedules to make changes, they should attach those schedules to their Form 1040X. Taxpayers should not amend a tax return to correct math errors; the IRS will make the math corrections for the taxpayers. Taxpayers should also not amend if they forgot to include a required form or schedule. The IRS will mail a request about the missing item. Anyone amending tax returns for more than one year will need a separate 1040X for each tax year. They should mail each tax year’s Form 1040X in separate envelopes. Taxpayers should wait for the refund from their original tax return before filing an amended return. They can cash the refund check from the original return before receiving any additional refund. Taxpayers filing an amended return because they owe more tax should file Form 1040X and pay the tax as soon as possible. This will limit interest and penalty charges. Generally, to claim a refund, taxpayers must file a Form 1040X within three years from the date they timely filed their original tax return or within two years from the date the person pays the tax usually April 15 whichever is later. Taxpayers can track the status of an amended return three weeks after mailing using Where’s My Amended Return? Processing can take up to 16 weeks.