Be Prepared For Disaster
Ahead of hurricane season, the IRS is reminding taxpayers to create or review their emergency preparedness plans, including protecting important tax-related information. The following tips are advised:
- Protect documents – original tax returns, birth certificates, titles and insurance policies should be kept in waterproof containers in a secure place. Duplicates or digital copies should be made and deposited with a trusted person outside the area.
- Document property – home or business photos, including contents, can help if insurance claims must be made.
- Check fiduciary bonds – employers should ensure that their payroll provider has a fiduciary bond in place, which would protect the employer in the event of default by the provider.
- Reconstructing documents – the IRS has a webpage to help.
National Small Business Week
In honor of National Small Business Week, the IRS is highlighting many tax benefits and resources for entrepreneurs:
- Free resources and information for starting a business
- Plan for 2022 tax benefits – enhanced deduction for business meals and home office deduction.
- Estimated tax payments – making quarterly payments electronically is fast and easy.
- How and why to use e-file – report payroll taxes and pay taxes electronically.
- Special tax credit for hiring certain workers – unemployed, those on SNAP or other benefits, residents of Empowerment Zones, and other qualified individuals.
IRS Reaches Out To Puerto Rico
The IRS is encouraging residents of Puerto Rico with even one child to file a federal tax return to claim the Child Tax Credit. Beginning with Tax Year 2021, the Credit is available, even if they had no income, only tax-exempt income, or paid no US Social Security taxes. If the April 18 filing deadline was missed, returns can still be filed without penalty to claim the Credit through April 15, 2025. Additionally, the IRS is expanding outreach to serve Puerto Rico residents who may have little or no experience filing a federal tax return. “Not only do we want them to know about the credit, but we also want them to know there is help – some of it free – for getting it.”
The IRS extended the tax filing deadline to May 17th, but they did not extend the estimated tax filing deadline.
What does this mean for our customers?
If your taxes are taken out of every paycheck and you receive a W-2, you do not have to make the quarterly estimated tax payments.
If you are an individual who expects to owe more than $1,000 in income taxes at your tax filing or a corporation which expects to owe more than $500 in income taxes, then you have to pay estimated taxes. For these tax filers, the IRS has not extended tax filings like they did in 2020.
For many of our customers, your tax filing deadline is May 17th, but if you fall into one of the estimated tax categories you still need to make that estimated tax payment on time.
2017 Returns Extended
US tax law gives taxpayers 3 years to file a return and receive a refund. After that, the money goes into the US Treasury and is no longer available to individuals.
We had posted on Facebook that this due date was still on April 15th. According to the IRS’s announcement, the tax extension is for the 2017 taxes as well. Also according to that announcement, there are over 16,000 taxpayers in South Carolina who have not yet filed their 2017 returns and are owed a total of over 15 million dollars.
If you need to file your 2017 tax return, please come see us! We can help you navigate the complexities of old documents and you might actually come out with more money than you owe.