Assurance Accounting & Tax Services

09/23/2024

I have had several clients, especially those on fixed incomes, question their property tax bills this year. I just had one client who's tax increase was almost $1,200. There were several factors that caused this, and I am hoping to give others some perspective on why these increases are so high. These homeowners had no increase in their property valuation, it has remained at $497,000. The tax bill for 2022-2023 was $6,914 with the mil rate for Kennebunk at $14.60 per thousand of value and homestead exemption of $23,500 which decreased their taxable valuation to $473,500.

For the 2023-2024 property tax year, the mil rate in Kennebunk jumped to $16.05 and the homestead exemption dropped to $19,800 meaning the taxable valuation on a property with no value increase was $3,700 higher, $477,200. The property tax for 2023-2024 would be $7,659.06 (a $745 increase), however these homeowners did not see this increase because of the Property Tax Stabilization program through the state of Maine that kept property tax amounts frozen at the 2022-2023 values. Their bill for 2023-2024 was $6,914. This program has been discontinued and now seniors are facing pretty significant hits this year.

For these homeowners in Kennebunk, the mil rate went up an additional $.90 per thousand for the 2024-2025 tax year to a total of $16.95 and the homestead exemption decreased again to $18,500. Though their "value" remained the same, their taxable value increased to $478,500. Their taxes this year are $8,111, an increase of $1,197 over what they paid last year. I feel like this is going to create some confusion and anxiety in much of the older community and I am hoping that this explanation may help people understand some of the significant increases they are seeing, even though it does not make paying these increases any easier.

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02/14/2024

This is an important reminder to all businesses that took advantage of the Employee Retention Credit (ERC). The IRS will be reviewing all claims and it is likely that many businesses will find themselves in the position of facing penalties, interest and possible fines if they do not voluntarily report and return funds that were received but they were not qualified to receive. Please look very carefully at the red flags below. I think most companies that promoted the credit to businesses made the mistake of filing for all quarters available, and the most common thing I have heard from people arguing with me about being eligible is that these companies claim that supply chain issues alone make them qualified for all quarters. If you recognize that any of these red flags apply to you, you should review the details of your refunds to determine what your liability is.

The Voluntary program currently available allows you to pay back 80% of the refund you received, with the IRS understanding many businesses paid 20% or more to many of the companies that were promoting this credit. The program also will not charge businesses penalties and interest if these amounts are repaid. The deadline for this Voluntary Program is March 22, 2024.

The other reminder is that if you did receive this credit, you need to make sure you have amended your returns for 2020 and 2021 for any quarters you claimed the credit for, as the wages you paid need to be reduced by the amount of the credit which creates taxable income in the amount of this credit. This will generate additional penalties and interest as well if you are just making these adjustments. If you have not amended those returns and choose to voluntarily return the amounts you received, you will not have the amend those returns.

The IRS wants to help businesses know when they don't qualify for an Employee Retention Credit.

02/03/2023

Love my clients! 😍 Beautiful twice per month fresh flower deliveries ordered for me by a client from another client Stem & Vine who does an amazing job! 💐

11/24/2022

I hope all of our clients have a happy & blessed Thanksgiving. We are thankful for all of our wonderful clients! 🍁🦃