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Tax Filing Season Starts February 12

Tax Filing Season Starts February 12

by | Feb 3, 2021 |

Although tax season usually starts in late January, this year, the tax filing season is delayed until February 12, 2021. The delayed start date for individual tax return filers allowed the IRS time to do additional programming and testing of IRS systems following the December 27, 2020, tax law changes that provided a second round of Economic Impact Payments and other benefits to many taxpayers. This programming work is critical to ensuring IRS systems run smoothly to minimize refund delays and ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return. File Electronically for Faster Refunds Last year's average tax refund was more than $2,500. Once again, the IRS anticipates that nine out of 10 taxpayers will...

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Integra International Audit & Accounting Alert – January 2021 (Issue 1)

by | Jan 30, 2021 | , ,

AT-A-GLANCE For the past quarter century, every two years the Association of Certified Fraud Examiners (ACFE) has issued a comprehensive analysis of the impact of financial fraud. However, with the rise of the coronavirus pandemic this past year, the ACFE has supplemented the biennial report with quarterly updates assessing specifically the impact of COVID-19 on fraud within organizations. This issue of the Audit & Accounting Alert summarizes the latest findings. Our Worldwide Update is again split into two sections. The first covers COVID-19 news from organizations across the globe, while the second covers other news. Gerald Herter - Editor   Fraud in the Wake of COVID-19 Latest report tracks the trending increase in fraud levels In April 2020, the Association of Certified...

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Tax Tips for January 2021

Tax Tips for January 2021

by | Jan 28, 2021 | ,

Click on the links below to jump to each section in this article: Standard Mileage Rates for 2021 Understanding the Excise Tax Protecting Business Taxpayers From Identity Theft Employee Business Expense Deductions: Who Qualifies?   Standard Mileage Rates for 2021 Starting January 1, 2021, the standard mileage rates for the use of a car, van, pickup, or panel truck are as follows: 56 cents per mile driven for business use, down 1.5 cents from the rate for 2020 16 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, down 1 cent from the rate for 2020, and 14 cents per mile driven in service of charitable organizations. The charitable rate is set by statute and remains unchanged. The standard mileage rate for business is based on...

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The COVID-related Tax Relief Act of 2020

The COVID-related Tax Relief Act of 2020

by | Jan 25, 2021 | ,

What You Need to Know About the COVID Tax Relief Act of 2020 The Consolidated Appropriations Act, 2021, H.R. 133 included funding for the government, extensions for expiring tax extenders, tax relief under the COVID-related Tax Relief Act of 2020, and many more items. Passed by both the House and Senate, it was signed into law by President Trump on December 27, 2020. Let's take a look at a few of the highlights related to pandemic taxpayer relief under the COVID-Related Tax Relief Act of 2020: Individuals Economic impact payments. $600 per taxpayer ($1,200 for married taxpayers filing jointly) and an additional $600 per qualifying child (under age 17). The recovery rebate payment begins to phase out starting at $75,000 of modified adjusted gross income for single filers, $112,500 for...

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Credit Reports: What You Should Know

Credit Reports: What You Should Know

by | Jan 21, 2021 |

Creditors keep their evaluation standards secret, making it difficult to know just how to improve your credit rating. Nonetheless, it is still important to understand the factors that determine creditworthiness. Periodically reviewing your credit report can also help you protect your credit rating from fraud - and you from identity theft. Credit Evaluation Factors Many factors are used in determining credit decisions. Here are some of them: Payment history/late payments Bankruptcy Charge-offs (Forgiven debt) Closed accounts and inactive accounts Recent loans Cosigning an account Credit limits Credit reports Debt/income ratios Mortgages Obtaining Your Credit Reports Credit reports are records of consumers' bill-paying habits but do not include FICO credit scores. Also referred to as...

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Identity Protection PIN Available To All Taxpayers

Identity Protection PIN Available To All Taxpayers

by | Jan 18, 2021 |

What You Need to Know Starting in January 2021, the IRS Identity Protection PIN Opt-In Program will be expanded to all taxpayers who can properly verify their identity. Previously, IP PINs were only available to identity theft victims. What is an Identity Protection PIN? An identity protection personal identification number (IP PIN) is a six-digit number assigned to eligible taxpayers to help prevent their Social Security number from being used to file fraudulent federal income tax returns. This number helps the IRS verify a taxpayer's identity and accept their tax return. Taxpayers with either a Social Security Number or Individual Tax Identification Number who can verify their identity are eligible for the program and the number is valid for one year. Each January, the taxpayer must...

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Important Tax Changes for Individuals and Businesses

Important Tax Changes for Individuals and Businesses

by | Jan 7, 2021 |

What You Need to Know About Changes to Your Taxes in 2021 Every year, it's a sure bet that there will be changes to current tax law and this year is no different. From standard deductions to health savings accounts and tax rate schedules, here's a checklist of tax changes to help you plan the year ahead. Individuals In 2021, a number of tax provisions are affected by inflation adjustments, including Health Savings Accounts, retirement contribution limits, and the foreign earned income exclusion. The tax rate structure, which ranges from 10 to 37 percent, remains similar to 2020; however, the tax-bracket thresholds increase for each filing status. Standard deductions also rise, and as a reminder, personal exemptions have been eliminated through tax year 2025. Standard Deduction In 2021,...

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Applying for Tax-Exempt Status as a Nonprofit

Applying for Tax-Exempt Status as a Nonprofit

by | Dec 31, 2020 |

What You Should Know When Starting a Nonprofit Organization If you're thinking of starting a nonprofit organization, there are a few things you should know before you get started. First, is understanding how nonprofits work under state and federal law. For example, two things you should understand is that state law governs nonprofit status. Nonprofit status is determined by an organization's articles of incorporation or trust documents while federal law governs tax-exempt status (i.e., exemption from federal income tax). Whether you're starting a charity, a social organization, or an association here are the steps you need to take before you can apply for tax-exempt status. 1. Determine the type of organization. Before a charitable organization can apply for tax-exempt status, it must...

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Small Business: Deductions for Charitable Giving

Small Business: Deductions for Charitable Giving

by | Dec 29, 2020 |

How Your Business Benefits By Giving Back Tax breaks for charitable giving aren't limited to individuals, your small business can benefit as well. If you own a small to medium-size business and are committed to giving back to the community through charitable giving, here's what you should know. 1. Verify that the Organization is a Qualified Charity Once you've identified a charity, you'll need to make sure it is a qualified charitable organization under the IRS. Qualified organizations must meet specific requirements as well as IRS criteria and are often referred to as 501(c)(3) organizations. Note that not all tax-exempt organizations are 501(c)(3) status, however. There are two ways to verify whether a charity is qualified: Use the IRS online search tool; or Ask the charity to send you...

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Tax Tips for January 2021

Tax Tips for December 2020

by | Dec 21, 2020 | ,

Click on the links below to jump to each section in this article: Retirement Contributions Limits Announced for 2021 Solar Technology Tax Credits Still Available for 2020 Relief for Drought-Stricken Farmers and Ranchers Beware of Gift Card Tax Scams Charitable Donation Deduction Could Lower Your Tax Bill   Retirement Contributions Limits Announced for 2021 Cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for 2021 are as follows: 401(k), 403(b), 457 plans, and Thrift Savings Plan. Contribution limits for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan remains unchanged at $19,500. The catch-up contribution limit for employees aged 50 and over remains unchanged at...

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