TaxesPlus, Inc

12/07/2023

PLEASE contact your Senators and Representatives to delay and repeal the CTA

11/30/2023

Please contact your Senators and Representatives as soon as possible and ask that the Corporate Transparency Act (CTA) delayed and then revoked.
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In 2021 a bipartisan vote of both houses of Congress passed the Corporate Transparency Act (CTA) as an attempt to identify the owners of entities that could potentially be involved in money laundering and other illegal activities. FinCen or the Financial Crimes Enforcement Network was assigned by Congress to implement and enforce the Act. The reporting requirements of CTA go into effect in less than six weeks and FinCen has yet to issue reporting forms, clear guidance on hundreds of questions, forms necessary to protect the identities of owners (Unique Identifier), assure users that the projected tens of millions of new submissions will not crash the website or frankly even consider the real-world aspects of CTA to millions of small business owners.

According to the SBA small businesses provide nearly two thirds of all new jobs in the United States, employ nearly 50% of all non-governmental employees, and 40% of non-governmental payroll in America. Yet, this very group has their very existence threatened by a new law with no provision for extended filing dates, a $500 daily non-filing penalty, a potential two-year felony prison term for non-filing and a total lack of awareness of the requirement to file this new form on the part of business owners, attorneys, accountants, and other business professionals.

With over 18 years experience working with small businesses, here are just a few of the potential problems neither FinCen nor Congress addressed in CTA:

• The single mom that set up her own LLC on a state website, does her own tax return and has no attorney because she is trying to pay for rent and food for her kids. She is not aware of CTA, cannot afford to hire an expert, wants to build a business, but unbeknownst to her is accruing a $500 daily non-filing penalty and potential prison time for not filing a form she never heard of and cannot figure out how to file since it must be filed electronically directly to FinCen. Multiply this example by ten million similar small businesses.

• The small business owner that somehow figures out, with their attorney or accountant, how to E-file the not yet released form, attaches a picture ID driver’s license as required and then 30 days later gets a new driver’s license to replace the old one. According to the image provided in FinCen’s own small business compliance guide they need to file a new report within 30 days for “any information that has changed”. Of course, they don’t think of this on a new driver’s license, don’t file the form and face a $500 daily fine and two years in prison. Multiply these times one hundred million business owners that are being forced to file multiple forms for multiple small businesses they own.

• The individual that owns 15 rental properties, each legally titled in a separate single member LLC. They are forced to file 15 separate forms, and heaven forbid that they move and must file 15 more change forms within 30 days (as mandated) or face the same penalties and prison time.


• The small business that is owned exclusively by one person, but which allows two of the more experienced employees out of six total employees to sign receipts and contracts. The owner must request filing information from these employees and include them in the CTA form or face fines and prison time. In a time where labor is impossible to get and keep, these employees will likely quit and destroy that small business.

• The small business that is just above the exemption threshold of 20 full time employees that has one employee quit. The CTA exempts businesses with 20 employees from filing, but blatantly and directly threatens the very small business that does not apparently count employees every day or minute and must now file a form. FinCen has provided no guidance on when to file this form, but the business owner still faces a $500 daily penalty and Federal prison time. A similar situation exists if the business’s revenues dip just below the $5,000,000 reporting exemption. Do they file the day a customer leaves or the end of the month or the next year? Do they need to file the day that average sales drop below a necessary threshold? Who knows-we are six weeks from this law becoming effective and there is no FinCen guidance, yet the small business owner again faces daily fines and prison time.

In over 18 years of small business advising, we have never encountered such a singular anti-small business law that was so poorly envisioned by Congress, so poorly implemented by government agencies and so directly devastating to the very existence of small business and indirectly to the United States economy as a whole.

In summary: CTA must be delayed and then revoked.

03/13/2021

IRS Communication on Unemployment

"The IRS is reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021 [ARPA]. Additional information about a new round of Economic Impact Payments, the expanded Child Tax Credit, including advance payments of the Child Tax Credit, and other tax provisions will be made available as soon as possible on IRS.gov. The IRS strongly urges taxpayers to not file amended returns related to the new legislative provisions or take other unnecessary steps at this time.

The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable. For those who haven't filed yet, the IRS will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return. For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance."

Get Coronavirus Tax Relief Get Your Refund Status File Your Taxes for Free Get Your Tax Record View Your Account Make a Payment Get Answers to Your Tax Questions Protect Your Identity Forms and Instructions 1040 and Schedules 1-3 Individual Tax Return Other 1040 Schedules Information About the Other...

03/11/2021

**Tax Update** Stimulus Bill Passed
Single taxpayers can exclude up to $10,200 (married couples $10,200 each) in unemployment income (only for 2020) if your Adjusted Gross Income is less than $150,000.
If you have not filed your tax return for 2020, wait until the software is updated.
If you have already filled, then you can file an amended return.
Next steps.
1. IRS updates forms and computer system (timeframe unknown )
2. Tax Software companies update software programming ( timeframe unknown )
3. File amended tax return. ( timeframe: in a typical year, it takes 12 weeks to get refunds from amendments)

Wildcard- States will have to decide whether this change will impact the state tax return.

Commentary: I do not recall in the last 20 years when such a significant tax change has been placed in the law retroactively in the middle of tax season. During this time of year, IRS and tax software companies are focusing time and resources to supporting the filing of returns, not reprogramming systems.

03/10/2021

Can't come up with anything clever to say so we are just going to post this picture.

11/02/2020

If you are waiting for the IRS to process a paper filed return (typically amended returns), then you may have to wait longer than the standard 18-20 weeks. Sharing this story from our tax preparer, Jason, and his recent experience with an IRS employee:

"Last week while getting my oil changed I struck up a conversation with a lady who works for the IRS. Being a tax geek I asked if the rumors were true that there were just rooms full of mail with amended and paper returns that are backlogged. She said yes.

She's been working overtime and was discouraged because so many of her co-workers are staying home getting their full pay and not working because they claim it's not safe to come to work but she sees them on Facebook traveling to places like the Bahamas and Hawaii.

She said some days it's hard to go to work and sit there and work while you see other people who just log onto their computer and then disappear the whole shift because it is hard to get a job at the IRS but once you get it it's nearly impossible to lose it unless you get caught looking up your personal information or that of a family member or friends. She has had 20 different managers in 9 years."

10/28/2020

Same firm but new location effective December 1st 2020:
5931 Nieman Road, Shawnee KS 66203

*Flexible: We will still be doing appointments, drop-offs, and can work remotely if you prefer.

*Secure: We ONLY receive and send personally-identifying information through our secure system. We never outsource our services. The protection of your data is important!

*Competent: Our employees are experienced professionals in addition to some holding CPA or EA licenses throughout the firm. All preparers are required to do at least 16 hours of annual training while most complete more.

*Guarantee: When you engage with us, we guarantee your tax return is correct. This is why we always have a 2nd reviewer on EVERY return.

09/29/2020

A simple comparison of tax proposals from our presidential candidates - check it out

Tonight's presidential debate will focus on many things. Here are the tax topics to listen for from President Trump and former Vice President Biden.

04/24/2020

Self employed & MO Unemployment info:
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From: "LR-ESUIClaims"
Sent: Sat, Apr 18, 2020 at 1:32 PM
Subject: RE: Appeal unemployment denial

The Pandemic Unemployment Assistance (PUA) program provides benefits to individuals who are not eligible for regular unemployment, including those who have exhausted their unemployment benefits, the self-employed, and individuals lacking sufficient work history. Under the Pandemic Unemployment Assistance (PUA) program, those who qualify will be eligible for weekly benefit payments of between $133 and $320 per week plus a $600 federal supplement available under the Federal Pandemic Unemployment Compensation (FPUC) program. The federal guidelines provide the FPUC payments only apply to weeks payable from March 29, 2020, through July 25, 2020. These two programs are not regular unemployment insurance, but are new, fully federally funded assistance programs. Both of these provisions have been enacted as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act. The DES expects to begin processing PUA claims as early as the week of April 19, 2020. At this time, the DES is unaware of any states that have fully implemented the PUA program.

Self-employed individuals filing unemployment claims should indicate “none” when asked for states in which they have worked, unless they have worked for an employer in the last 18 months. After the PUA program is operational, the DES will contact individuals who have been determined to be ineligible for regular unemployment benefits because of insufficient wages. Such individuals will be required to provide proof of earnings and proof of employment. Examples of acceptable forms of proof of earnings will include copies of income tax returns with related Schedules C, E, F and SE, Form K-1 and/or Form 1099-Misc . Acceptable forms of proof of employment include business cards, advertisements, telephone listings, business licenses, etc. The PUA will be retroactive to when an individual was negatively affected by COVID-19, but the individual will need to provide proof.

04/18/2020

HSA / FSA rule changes retroactive to January 1st 2020 under the CARES act.

Over-the-counter drugs and medicines not prescribed by a physician can now be reimbursed pre-tax.

Menstrual care products are now considered eligible expenses. Examples include tampons, pads, liners, cups, sponges, or similar products.

Health plans can now cover telehealth services pre-deductible without impacting HSA eligibility.

Do not be surprised if the pharmacies do not have the proper coding in place yet to run your HSA FSA debit card directly on the spot. You may have to pay for the transaction out-of-pocket and request reimbursement from your HSA FSA provider.