CPA Consultants Group, LLC

Everyone. We have been struggling to to keep this page and our Tax Hostage page both up. So we have decided we will do a better job of putting out valuable information if we just keep one…..
Sooooooo if you haven’t already please come on over and follow us at our Tax Hostage pages on IG and here on FB.

How to Fill Out a Form W-9 for Single Member LLCs? Form W-9 is used by U.S. persons to certify their U.S. tax residency, U.S. taxpayer identification number, and address.Video on how to complete for a foreig...

Wondering where your federal tax refund is?

IRS faces 35 million unprocessed tax returns as backlog swells, watchdog says Only 3 percent of 85 million calls to the agency during filing season reached a customer service representative, the report found.

Hype or real threat? What do you think?

The IRS is now targeting taxpayers owning/transacting in Cryptocurrency. Are you at risk? It sounds like an empty threat to many because Cryptocurrency was promised to be "off grid". However, this is a real risk now and unfortunately, if you don't report your cryptocurrency transactions on Form 1040 you risk penalties, interest at a minimum. If you are evading or committing fraud you could also face criminal prosecution.

Tax Filing Season Start - Did You Know?

The IRS has announced that the individual tax filing season will start on Friday, February 12, 2021 and the current deadline to file 2020 tax returns and pay any taxes owed is Thursday, April 15, 2021.

Although the IRS systems open for processing on February 12, you do not have to wait until then to begin preparing for your tax return.

Quarterly Estimated Tax Payments - Reminder

If you are making quarterly estimated tax payments to the IRS, the due date for the September 1st - December 31st quarter of the year is January 15th. You may be able to skip the January 15 payment if you file your 2020 return by February 1, 2021 and pay all tax due.

For payments made using IRS Direct Pay, you can make payments until 8PM EST, and for payments using a credit or debit card, payments can be made up to midnight on the due date.

IRS & Treasury Delivering Second Round of Stimulus Payments – Did You Know?

Under the Coronavirus Response and Relief Supplemental Appropriations Act, the federal government has authorized a second round of 2020-2021 Economic Impact Payments (EIPs, also called stimulus payments) for many Americans. The IRS has already begun sending these new EIPs by direct deposit and mailed checks.

In most cases, individuals with an adjusted gross income (AGI) of $75,000 or below will receive a new EIP of $600. Joint filers with a combined AGI of $150,000 or less will generally get $600 apiece. In addition, many households may receive additional payments of $600 per qualifying child. Those with higher incomes may receive a smaller EIP or no payment at all. Note that dependents age 17 or older are not eligible for EIPs.

The vast majority of eligible Americans, including everyone who received a previous 2020 EIP, should receive these new stimulus payments automatically. There is no need to call the IRS or your bank. Simply watch for a direct deposit to your bank account, an IRS check in the mail or, in some cases, a prepaid debit card in a white envelope bearing an official U.S. Treasury seal.

For various reasons, some people who qualify for these EIPs may not receive automatic payments. If you believe you are entitled to a payment but do not receive one, a tax professional may help you claim the amount you are owed as a credit on your 2020 tax return.

Some Employees May Still Qualify to Deduct Business Expenses – Did You Know?

The Tax Cuts and Jobs Act (TCJA) of 2017 eliminated the tax deduction for business expenses for most workers classified as employees. However, some employees may still qualify for a deduction by filing the proper form with their federal tax returns.

Eligible school employees may claim the Educator Expense Deduction for up to $250 of unreimbursed expenses necessary for their work, such as classroom supplies. Qualifying for this deduction generally requires working for at least 900 hours a year as a teacher, principal, counselor or classroom aide at an elementary or secondary school.

In addition, employees in the following categories may qualify to deduct business expenses:

- Armed Forces reservists, that is, members of the Army and Air National Guards, along with members of the Army, Navy, Air Force, Marine Corps and Coast Guard Reserves

- Qualified performing artists classified as employees, such professional dancers, actors and musicians employed by professional companies

- State and local government officials categorized as “fee-basis” workers (typically, these officials must pay self-employment tax)

- Employees with work expenses related to a physical or other impairment

These employees may be eligible to deduct unreimbursed “ordinary and necessary” costs related to carrying on their business as employees. Qualifying expenditures might include travel, costumes, workspace adaptations or office supplies.

A professional tax advisor can help you determine whether you qualify to deduct business expenses as an employee, and which forms you must file in order to do so.

UPDATE: Under the latest legislation it looks like in 2020 the above the line deduction for charitable contributions will remain $300 for all personal filing statuses. However, in 2021 the deduction will increase to $600 for Married Filing Jointly.

2020 Charitable Contributions Deduction – Did You Know?

Ordinarily, only taxpayers who itemize deductions may deduct charitable contributions on their federal tax returns. However, the CARES Act allows many people who do not itemize to claim a deduction for 2020 cash contributions to IRS-approved charities. Tax deductions lower a person's tax bill by reducing taxable income.

In general, individuals and couples who do not itemize deductions may deduct up to $300 for cash contributions made to qualifying charitable organizations in 2020. Qualifying organizations include many nonprofits dedicated to educational, religious, literary, and disaster and hunger relief activities. The IRS provides an online search tool (link below) to help taxpayers determine whether a particular charity qualifies to receive tax-deductible donations.

As a reminder for those who do itemize deductions, the CARES Act also sets the 2020 cash contributions itemized deduction limit at 100% of adjusted gross income (AGI) for most taxpayers, a temporary increase from the usual limit of 60% of AGI. Qualifying 2020 cash contributions in excess of the limit may be carried over as deductions for tax year 2021.

A tax professional can help you determine whether your contributions qualify for these special rules, and how to claim your deduction if so.

IRS Charitable Organizations Search Tool: https://www.irs.gov/charities-non-profits/tax-exempt-organization-search

IRS alert: Economic Impact Payments belong to recipient, not nursing homes or care facilities | Internal Revenue Service IR-2020-121, June 16, 2020 — The Internal Revenue Service today alerted nursing home and other care facilities that Economic Impact Payments (EIPs) generally belong to the recipients, not the organizations providing the care.