Professional Bookkeeping, LLC

04/08/2020

In response to the COVID-19 pandemic, federal and state governments have made decisions that may impact your income and tax filings. Please pay careful attention to the different deadlines for Idaho state and federal filings below -- they are about a month apart.

Additionally, my office has received many questions about the direct Economic Impact Payments from the CARE Act. Answers to your questions are below, and please feel free to continue sending questions our way-- we are here to serve you.

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Tax Deadlines
Federal Tax Deadline

The Treasury Department and Internal Revenue Service (IRS) announced that the federal income tax filing due date has been extended from April 15, 2020, to July 15, 2020.
Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts, estates, corporations, and other non-corporate tax filers as well as those who pay self-employment tax.
Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing.
Idaho Tax Deadline

In response to the COVID-19 pandemic, Governor Little extended the 2019 Idaho income tax filing and payment deadlines from April 15, 2020, to June 15, 2020. The extension applies to all taxpayers – including individuals, businesses, and entities – regardless of the amount owed. Penalty and interest won’t apply if taxpayers file their return and pay the income tax they owe by June 15.
Governor Little has also extended the deadline to apply for property tax relief programs from April 15 to June 15.
FAQ
Do I need to file a 2019 return to see any direct payments?

No. If you have filed a 2019 return, the IRS will use that information. If you haven’t filed your taxes for 2019, then the IRS will use your 2018 return. It is tracked by Social Security Number; only those with a Social Security Number qualify for direct payments.
Do Seniors need to file a tax return to see any direct payments?

No. The U.S. Department of the Treasury and the IRS have announced that Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an Economic Impact Payment.
The IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate $1,200 Economic Impact Payments to Social Security recipients who did not file tax returns in 2018 or 2019. Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits.
Does the direct payment count as income? And, do I have to pay taxes on it?

No. All direct payments are tax free.
What should I do if I did not file a tax return for 2019 or 2018 (but I am required to do so)?

The best way to ensure you receive an Economic Impact Payment is to file a 2019 tax return if you have not already done so, and are required to. This could be accomplished for free online from home using the IRS Free File program. The IRS will also be engaging in a public campaign to alert all individuals of their eligibility for the rebate and how to receive it if they have not filed either a 2019 or 2018 tax return.
If I have a past due debt to a federal or state agency, or owe back taxes, will my rebate be reduced?

No, the bill turns off nearly all administrative offsets that ordinarily may reduce tax refunds for individuals who have past tax debts, or who are behind on other payments to federal or state governments, including student loan payments.
The only administrative offset that will be enforced applies to those who have past due child support payments that the states have reported to the Treasury Department.
My income has drastically changed from tax year 2018, how do I correct that?

Direct payments will utilize your 2019 tax return or 2018 return if you have not yet filed your 2019 tax return. Individuals will receive $1,200 and joint filers can receive $2,400 if you make up to $75,000 in Adjusted Gross Income (AGI) for individuals and $150,000 in AGI for joint filers. There is an additional $500 for each child. The payment reduces if you make more than $75,000 in AGI as an individual or $150,000 AGI as a joint filer, zeroing out by $99,000 in AGI for individuals and $198,000 for joint filers.
Other Resources
The latest resources from the IRS on Coronavirus tax relief
In-depth information on the Economic Impact Payments, who qualifies, and how they will be dispersed
During these uncertain times, navigating federal programs can be difficult. If you have any further questions, don't hesitate to contact any of our offices below.

Sincerely,
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Member of Congress

05/30/2018

https://tax.idaho.gov/i-2019.cfm

Changes to your Idaho taxes as a result of tax reform legislation.

01/11/2018

2018 Tax Filing Season Begins January 29, Prior Year Business to Open January 8
2018 Tax Filing Season Begins Jan. 29th, Tax Returns Due April 17
The Internal Revenue Service announced today that the nation’s tax season will begin Monday, January 29, 2018 and reminded taxpayers claiming certain tax credits that refunds won’t be available before late February. The IRS will begin accepting all Individual tax returns on January 29, with nearly 155 million individual tax returns expected to be filed in 2018. The nation’s tax deadline will be April 17 this year – so taxpayers will have two additional days to file beyond April 15.

The Business e-file servers will reopen Monday, January 8, 2018 for any 2015 or 2016 business returns needing to be electronically filed. Note: Tax Year 2017 Business returns will not be able to be transmitted until the start of the tax season on January 29, 2018.

Many software companies and tax professionals will be accepting tax returns before Jan. 29 and then will submit the returns when IRS systems open. Although the IRS will begin accepting both electronic and paper tax returns January 29th, paper returns will begin processing later in mid-February as system updates continue. The IRS strongly encourages people to file their tax returns electronically for faster refunds.

The IRS set the Jan. 29 opening date to ensure the security and readiness of key tax processing systems in advance of the opening and to assess the potential impact of tax legislation on 2017 tax returns.

April 17 Filing Deadline
The filing deadline to submit 2017 tax returns is Tuesday, April 17, 2018, rather than the traditional April 15th date. In 2018, April 15th falls on a Sunday, and this would usually move the filing deadline to the following Monday – April 16th. However, Emancipation Day – a legal holiday in the District of Columbia – will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 17, 2017. Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation.

The IRS also has been working with the tax industry and state revenue departments as part of the Security Summit initiative to continue strengthening processing systems to protect taxpayers from identity theft and refund fraud. The IRS and Summit partners continued to improve these safeguards to further protect taxpayers filing in 2018.

08/08/2017

A Message from the Idaho State Tax Commission

The solar eclipse is a few weeks away and will bring many visitors to Idaho. The Idaho State Tax Commission needs your help to spread the word about taxes that apply if Idahoans sell or rent out during the eclipse festivities. Many folks don’t know they need to collect and submit Idaho taxes when they sell goods or rent out their properties, even if it’s for only one day.

The Tax Commission has created a special solar eclipse webpage at tax.idaho.gov/eclipse that gives examples of when Idahoans should charge tax and what taxes apply. The Tax Commission has also created a Solar Eclipse Flyer that you can print for reference or hand out.

Selling or renting, here's a quick guide to your tax requirements.

07/26/2017

Tax Scams / Consumer Alerts

In recent years, thousands of people have lost millions of dollars and their personal information to tax scams and fake IRS communication. Scammers use the regular mail, telephone, fax or email to set up their victims. This page looks at the different scams affecting individuals, businesses, and tax professionals and what do if you spot a tax scam.
REMEMBER: The IRS doesn't initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. Be cautious of new and evolving schemes this summer and always keep in mind that the IRS does not threaten taxpayers with lawsuits, imprisonment or other enforcement action. Recognizing these telltale signs of a phishing or tax scam could save you from becoming a victim. See also: How to know it’s really the IRS calling or knocking on your door
Scammers are constantly changing tactics to carry out crimes in new ways.
Scams Targeting Tax Professionals
Increasingly, tax professionals are being targeted by identity thieves. These sophisticated criminals are looking for real client data to better impersonate the taxpayer when filing fraudulent returns for refunds. A new phishing email purporting to be from a tax software education provider is unusual for the amount of sensitive preparer data that it seeks. This information enables the thieves to steal client data and file fraudulent tax returns.The IRS reminds all tax professionals that legitimate businesses and organizations never ask for usernames, passwords or sensitive data via email. Nor should a preparer ever provide such sensitive information via email if asked.
The Security Summit has a campaign aimed at increasing awareness among tax professionals: Protect Your Clients; Protect Yourself.
Recent scams targeting the tax professional community include:
Tax Professionals Warned of e-Services Scam.
Tax Professionals Warned of New Scam to “Unlock” Tax Software Accounts.
A phishing scheme mimicking software providers targets tax professionals.
Criminals target tax professionals to steal data such as PTINs, EFINs or e-Service passwords.
Bogus email asks tax professionals to update their IRS e-services portal information and EFINs: Don’t Click on Strange Emails or Links Seeking Updated Information
Tax professionals should review Publication 4557, Safeguarding Taxpayer Data, A Guide for Your Business, which provides a checklist to help safeguard taxpayer information and enhance office security.
See also: Identity Theft Information for Tax Professionals.

Scams Targeting Taxpayers
IRS-Impersonation Telephone Scams
Beware of a new scam linked to the Electronic Federal Tax Payment System (EFTPS), where fraudsters call to demand an immediate tax payment through a prepaid debit card. In the latest twist, the scammer claims to be from the IRS and tells the victim about two certified letters purportedly sent to the taxpayer in the mail but returned as undeliverable. The scam artist then threatens arrest if a payment is not made through a prepaid debit card. The scammer also tells the victim that the card is linked to the EFTPS when, in fact, it is entirely controlled by the scammer. The victim is also warned not to contact their tax preparer, an attorney or their local IRS office until after the tax payment is made.
Please see: Emerging phone scam involving bogus certified letters and the EFTPS
There is an aggressive phone scam targeting taxpayers with limited English proficiency making the rounds. Callers claim to be employees of the IRS. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling. Here too victims are told they owe taxes and must pay promptly through a pre-loaded debit card or wire transfer. Victims may be threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting. In some instances victims may be told they have a refund due to trick them into sharing private information. If the phone isn't answered, the scammers often leave an “urgent” callback request.
Remember: Scammers Change Tactics -- Aggressive and threatening phone calls by criminals impersonating IRS agents remain a major threat to taxpayers, but variations of the IRS impersonation scam continue year-round and they tend to peak when scammers find prime opportunities to strike. Note that the IRS will never:
Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail you a bill if you owe any taxes.
Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.
Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
Ask for credit or debit card numbers over the phone.
Soliciting Form W-2 information from payroll and human resources professionals.The IRS has established a process that will allow businesses and payroll service providers to quickly report any data losses related to the W-2 scam currently making the rounds. See details at Form W2/SSN Data Theft: Information for Businesses and Payroll Service Providers. If notified in time, the IRS can take steps to prevent employees from being victimized by identity thieves filing fraudulent returns in their names. There also is information about how to report receiving the scam email.
Employers and tax professionals should notify states of any disclosures of W-2s or other identity information by emailing [email protected].
As a reminder, tax professionals who experience a data breach also should quickly report the incident to the IRS. See details at Data Theft Information for Tax Professionals.
Also see:
IRS, States and Tax Industry Renew Alert about Form W-2 Scam Targeting Payroll, Human Resource Departments
IRS Alerts Payroll and HR Professionals to Phishing Scheme Involving W-2s
Surge in Email, Phishing and Malware Schemes
When identity theft takes place over the web (email), it is called phishing. The IRS saw an approximate 400 percent surge in phishing and malware incidents in the 2016 tax season.
The IRS has issued several alerts about the fraudulent use of the IRS name or logo by scammers trying to gain access to consumers’ financial information to steal their identity and assets.
Scam emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. These phishing schemes may seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information.
Variations of these scams can be seen via text messages. The IRS is aware of email phishing scams that include links to bogus web sites intended to mirror the official IRS web site. These emails contain the direction “you are to update your IRS e-file immediately.” The emails mention USA.gov and IRSgov (without a dot between "IRS" and "gov"), though not IRS.gov (with a dot). These emails are not from the IRS.
The sites may ask for information used to file false tax returns or they may carry malware, which can infect computers and allow criminals to access your files or track your keystrokes to gain information.
For more details, see:
IRS Warns Seniors to Beware of Calls by Criminals Impersonating the IRS
Phishing Remains on the IRS “Dirty Dozen” List of Tax Scams for the 2017 Filing Season
Unsolicited email claiming to be from the IRS, or from a related component such as EFTPS, should be reported to the IRS at [email protected]. For more information, visit the IRS's Report Phishing web page.

Other Recent Tax Scams
Consumer Alert: Scammers Change Tactics, Once Again
Tax Scams via Video Relay Service
IRS Alerts Taxpayers with Limited English Proficiency of Ongoing Phone Scams
IRS, States and Tax Industry Warn of Last-Minute Email Scams
IRS Warns of Latest Scam Variation Involving Bogus “Federal Student Tax”
IRS Warns Taxpayers of Summer Surge in Automated Phone Scam Calls; Requests for Fake Tax Payments Using iTunes Gift Cards

How to Report Tax-Related Schemes, Scams, Identity Theft and Fraud
To report tax-related illegal activities, refer to our chart explaining the types of activity and the appropriate forms or other methods to use. You should also report instances of IRS-related phishing attempts and fraud to the Treasury Inspector General for Tax Administration at 800-366-4484.

Additional Scam-Related Information:
Security Summit - Learn more about how the IRS, representatives of the software industry, tax preparation firms, payroll and tax financial product processors and state tax administrators are working together to combat identity theft and refund fraud.
Taxes. Security. Together. We all have a role to play in protecting your data
IRS Security Awareness Tax Tips
Tax Scams — How to Report Them
Criminal Investigation's Tax Fraud Alerts
State ID Theft Resources - State information on what to do if you or your employees are victims of identity theft.
IRS Dirty Dozen – The annually compiled list enumerates a variety of common scams that taxpayers may encounter.
IRS YouTube Videos on Tax Scams:
Tax Scams: English | Spanish | ASL
Phishing-Malware: English | Spanish | ASL
Tax Scams via Video Relay Service ASL

07/26/2017

Taxpayers Should Review Their Withholding; Avoid Having Too Much or Too Little Federal Income Tax Withheld
IR-2017-121, July 20, 2017
WASHINGTON — The Internal Revenue Service today encouraged taxpayers to consider checking their tax withholding, keeping in mind several factors that could affect potential refunds or taxes they may owe in 2018.
Reviewing the amount of taxes withheld can help taxpayers avoid having too much or too little federal income tax taken from their paychecks. Having the correct amount taken out helps to move taxpayers closer to a zero balance at the end of the year when they file their tax return, which means no taxes owed or refund due.
During the year, changes sometimes occur in a taxpayer’s life, such as in their marital status, that impacts exemptions, adjustments or credits that they will claim on their tax return. When this happens, they need to give their employer a new Form W-4, Employee’s Withholding Allowance Certificate, to change their withholding status or number of allowances.
Employers use the form to figure the amount of federal income tax to be withheld from pay. Making these changes in the late summer or early fall can give taxpayers enough time to adjust their withholdings before the tax year ends in December.
The withholding review takes on even more importance now that federal law requires the IRS to hold refunds a few weeks for some early filers claiming the Earned Income Tax Credit and the Additional Child Tax Credit. In addition, the steps the IRS and state tax administrators are now taking to strengthen protections against identity theft and refund fraud mean some tax returns could face additional review time next year.
So far in 2017, the IRS has issued more than 106 million tax refunds out of the 142 million total individual tax returns processed, with the average refund well over $2,700. Historically, refund dollar amounts have increased over time.
Making a Withholding Adjustment
In many cases, a new Form W-4, Employee’s Withholding Allowance Certificate, is all that is needed to make an adjustment. Taxpayers submit it to their employer, and the employer uses the form to figure the amount of federal income tax to be withheld from their employee’s pay.
The IRS offers several online resources to help taxpayers bring taxes paid closer to what they owe. They are available anytime on IRS.gov. They include:
IRS Withholding Calculator – Online tool helps determine the correct amount of tax to withhold.
IRS Publication 505 – Tax Withholding and Estimated Tax.
Tax Withholding – Complete information on withholding, estimated taxes, FAQs, and more.
Self-employed taxpayers, including those involved in the sharing economy, can use the Form 1040-ES worksheet to correctly figure their estimated tax payments. If they also work for an employer, they can often forgo making these quarterly payments by instead having more tax taken out of their pay.

07/26/2017

New Federal Tax Law May Affect Some Refunds Filed in Early 2017; IRS to Share Details Widely with Taxpayers Starting This Summer
The Internal Revenue Service has announced initial plans for processing tax returns involving the Earned Income Tax Credit and Additional Child Tax Credit during the opening weeks of the 2017 filing season. The IRS is sharing the information now to help the tax community prepare for the 2017 season, and plans are being made for a wider communication effort this summer and fall to alert taxpayers about the changes that will affect some early filers.
This action is driven by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) that was enacted Dec. 18, 2015, and made several changes to the tax law to benefit taxpayers and their families. Section 201 of this new law mandates that no credit or refund for an overpayment for a taxable year shall be made to a taxpayer before Feb. 15 if the taxpayer claimed the Earned Income Tax Credit or Additional Child Tax Credit on the return.
This change begins Jan. 1, 2017, and may affect some returns filed early in 2017. Additional information is listed below.
To comply with the law, the IRS will hold the refunds on EITC and ACTC-related returns until Feb. 15.
This allows additional time to help prevent revenue lost due to identity theft and refund fraud related to fabricated wages and withholdings.
The IRS will hold the entire refund. Under the new law, the IRS cannot release the part of the refund that is not associated with the EITC and ACTC.
Taxpayers should file as they normally do, and tax return preparers should also submit returns as they normally do.
The IRS will begin accepting and processing tax returns once the filing season begins, as we do every year. That will not change.
The IRS still expects to issue most refunds in less than 21 days, though IRS will hold refunds for EITC and ACTC-related tax returns filed early in 2017 until Feb. 15 and then begin issuing them.
This is one more step the IRS is taking to ensure taxpayers receive the refund they are owed. The IRS plans to work closely with stakeholders and IRS partners to help the public understand this process before they file their tax returns and ensure a smooth transition for this important law change.

03/02/2016

http://sos.idaho.gov/corp/index.html

November 5, 2015 - Idaho Secretary of State Lawerence Denney is warning businesses to beware of a scam targeting Idaho corporations. A firm called Corporate Records Service is contacting Idaho businesses by mail in an attempt to collect a $125 fee to fill out a corporation’s “Shareholders, Directors…

12/02/2014

http://www.bbb.org/snakeriver/

08/30/2014

August 12, 2014 - Access Idaho Business Identity Monitoring.
http://www.sos.idaho.gov/corp/corindex.htm
Idaho Secretary of State - A new way of protecting your business.

Reinstatement forms are custom generated and partially pre-filled with information we have on file. Only Idaho entities can reinstate. Please call or click here if you need a reinstatement form.