RLM Accounting and Tax

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How long should it take to get my tax refund this year?

Many taxpayers are anxiously awaiting this year’s tax refund that they hope to use to pay down debt, pad their savings or make a big purchase.

Historically, almost three-quarters of Americans receive a refund, which has averaged just under $3,000, a big sum for many families.

This year, the Internal Revenue Service expects most refunds to be issued in less than 21 days, as long as the return doesn't require further review. Some taxpayers have reported getting their refunds in as fast as one week.

Need help with issuing 1099's? January 31st is soon approaching! Contact RLM Accounting and Tax for speedy and affordable services.

When to File W-2 and 1099-MISC Forms

The deadline for giving W-2 forms to employees and 1099-MISC forms to non-employees is January 31, 2019.

Contact RLM Accounting and Tax if you need help creating and filing W-2/W-3 forms and 1099-MISC forms.

Tax Filing Season Begins!!!

IRS will begin processing returns January 28th!!!

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Tax Refunds Will Be Paid During Shutdown, White House Says The IRS will pay tax refunds even though the agency is subject to the federal government shutdown, after the Trump administration reversed a long-standing policy.

What is an Enrolled Agent?🤓

Enrolled Agents (EAs) are federally-licensed tax practitioners who may represent taxpayers before the IRS when it comes to collections, audits and appeals. As authorized by the Department of Treasury's Circular 230 regulations, EAs are granted unlimited practice rights to represent taxpayers before IRS and are authorized to advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements. Enrolled agents are the only federally-licensed tax practitioners who specialize in taxation and have unlimited rights to represent taxpayers before the IRS. The enrolled agent profession dates back to 1884 when, after questionable claims had been presented for Civil War losses, Congress acted to regulate persons who represented citizens in their dealings with the U.S. Treasury Department. Enrolled agents’ expertise in the continually changing field of taxation enables them to effectively represent taxpayers at all administrative levels within the IRS.

In addition to the stringent testing and application process, the IRS requires enrolled agents to complete 72 hours of continuing education every three years in order to maintain their active enrolled agent license and practice rights. NAEA members are held to a higher standard than the IRS' minimum 72 hour continuing education requirement. NAEA members must complete 30 hours of IRS-approved continuing education hours each year (which would lead to a total of 90 hours for each three-year EA enrollment cycle period). Because of the expertise necessary to become an enrolled agent and the requirements to maintain the license, there are only about 53,700 practicing enrolled agents.

Only enrolled agents are required to demonstrate to the IRS their competence in all areas of taxation, representation and ethics before they are awarded unlimited representation rights to represent taxpayers before IRS. Unlike attorneys and CPAs, who are state-licensed and who may or may not choose to specialize in taxes, all enrolled agents specialize in taxation.

Enrolled agents are required to abide by the provisions of the Department of Treasury’s Circular 230, which provides the regulations governing the practice of enrolled agents before the IRS. NAEA members are also bound by a Code of Ethics and Rules of Professional Conduct of the Association.

The Tax Cuts and Jobs Act (TCJA) includes a number of changes that affect families. Here are some of the big ones.

For 2018-2025, the new law eliminates personal and dependent exemption deductions.

The TCJA almost doubles the standard deduction amounts. As under prior law, additional standard deduction amounts for elderly and blind individuals are still allowed under the TCJA (for 2018, $1,300 for an elderly or blind spouse and $1,600 for an unmarried elderly or blind person).

The TCJA increases the maximum child credit to $2,000 per under age 17 qualifying child (up from $1,000 under prior law). Up to $1,400 can be refundable. Also, the income levels at which the child tax credit is phased out are significantly increased. This means so many more families with under age 17 children will now qualify for the credit.

The TCJA establishes a new $500 nonrefundable credit for dependents who are not under age 17 children who qualify for the $2,000 child credit.

The new law liberalizes the Section 529 plan rules to allow federal income tax free withdrawals of up to $10,000 per year to cover tuition at a public, private or religious elementary or secondary school. This change is permanent for qualifying withdrawals made after 12/31/17.

There has also been an impact on child related tax breaks in divorce between custodial and noncustodial parents.

The 2017 TCJA (Tax Cuts and Jobs Act) signed into law December 22, 2017 is favorable to businesses of all types - Corporations, partnerships and sole proprietorships. The TCJA reduced C Corporation taxes to a flat rate of 21%, down from a graduated tax rate maxing out at 35%. However, the effective tax rate on many C Corporations was much lower than this nominal rate because of deduction and losses. For taxpayers in all other business entities - Partnerships, S Corps and Sole proprietorships - a new below the line deduction was authorized by provision 11011 of the TCJA, creating section 199A of the Internal Revenue Code. This deduction generally is lower of a maximum 20% of Qualfied Business Income (QBI) or the taxpayer's taxable income reduced by net capital gains. The purpose of this deduction, often referred to as the "pass through" deduction or QBI deduction, was to grant non-C corporation businesses a tax cut of their own.

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