irs - Linkenheimer LLP CPAs & Advisors

Still Time to Contribute to an IRA for 2016

Available in one form or another since the mid-1970s, individual retirement arrangements (IRAs) are designed to enable employees and the self-employed to save for retirement. Contributions to traditional IRAs are often deductible, but distributions, usually after age 59½, are generally taxable. Though contributions to Roth IRAs are not deductible, qualified distributions, usually after age 59½, are tax-free. Those with traditional IRAs must begin receiving distributions by April 1 of the year following the year they turn 70½, but there is no similar requirement for Roth IRAs.

Most taxpayers with qualifying income are either eligible to set up a traditional or Roth IRA or add money to an existing account. To count for a 2016 tax return, contributions must be made by April 18, 2017. In addition, low- and moderate-income taxpayers making these contributions may also qualify for the saver’s credit when they complete their 2016 tax returns.

Generally, eligible taxpayers can contribute up to $5,500 to an IRA. For someone who was at least age 50 at the end of 2016, the limit is increased to $6,500. There’s no age limit for those contributing to a Roth IRA, but anyone who was at […]

By Linkenheimer LLP|2020-09-03T20:04:57+00:00March 20th, 2017|ira, irs|0 Comments

Deadline for Receiving First 2016 IRA Required Minimum Distribution (RMD) Is April 1

Individuals who turned 70 1/2 in 2016, but opted to wait until 2017 to begin taking their RMD for 2016 must receive their 2016 RMD by 4/1/17, even though that date falls on a Saturday. IRS Pub. 590-B, Distributions from Individual Retirement Arrangements (IRAs), does not offer an alternative date, such as the following Monday, 4/3/17, to receive the distribution, so please keep that in mind. If you have any questions, please contact your Linkenheimer CPA.

By Linkenheimer LLP|2020-09-03T20:04:58+00:00March 3rd, 2017|ira, irs|0 Comments

Extended Deadline to Provide Small Employer QSEHRA Notice to Employees

The IRS has extended the period to provide an initial written notice to eligible employees regarding a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) under IRC Sec. 9831(d). A QSEHRA is similar to a regular health reimbursement arrangement, but must meet other requirements and is exempt from the market reform penalty. QSEHRAs are available to employers with less than 50 full-time equivalent employees that don’t offer group health plans and can be used to reimburse an employee’s individual health insurance premiums as well as other medical expenses. Although the employer must furnish a written notice to its eligible employees at least 90 days before the beginning of a year for which the QSEHRA is provided, the IRS announced that initial notices aren’t required any earlier than 90 days following the issuance of further guidance from the IRS.

If you have any questions, please contact your Linkenheimer LLP CPA.

By Linkenheimer LLP|2020-09-03T20:04:58+00:00March 2nd, 2017|irs|0 Comments

New Tax Rules May Affect Your Business for Web

New laws and regulations could have an impact on how you manage your business or your tax planning. Below is a summary of important developments you should be aware of:

In a change from past rules, businesses must file all Forms W-2 and W-3 and some Forms 1099-MISC with the IRS and the Social Security Administration no later than Jan. 31 in the year following the one to which the forms relate. As a result, forms for 2016 activities must be filed by Jan. 31, 2017. Employees and vendors or independent consultants must still receive their forms by Jan. 31.
There are new due dates for returns for partnerships, C corporations and several other business returns. For calendar-year partnerships, the new filing date is March 15 and for C corporations, it’s April 15. The date for fiscal year C corporations is the 15th of the fourth month following the end of the corporation’s calendar year, which is good news. The CPA profession has long advocated for these changes because they’ll minimize tax season complications and delays and make it easier to ensure that tax returns are accurate and on time. Among other benefits, […]

By Linkenheimer LLP|2020-09-03T20:05:00+00:00December 13th, 2016|irs|0 Comments

Don’t Fall for the IRS Scams Out There

Scammers, claiming to be IRS agents, threatening arrest and jail time if you don’t pay them immediately for overdue “balances” are on the rise. If you haven’t received a call yourself, chances are you will at some point or you know someone who has. and unfortunately, these scams will probably continue and increase over time. Now, it might be daunting to receive a phone call from John Smith at the IRS office, claiming the cops are on your way to your house to arrest you if you don’t make an immediate payment over the phone to them, but rest easy knowing that a) the IRS isn’t going to call you (they are old school), you’ll get a letter in the mail or maybe a fax, and b) they aren’t going to send you an email demanding payment (see https://www.irs.gov/uac/irs-and-security-summit-partners-warn-of-fake-tax-bill-emails ).

To read an interesting story about one person, who worked his way through the cycle of the IRS phone scams to get answers: http://www.vox.com/first-person/2016/10/18/13276464/irs-scam-phone-cartoon

See what the IRS has to say on the continuing issue of phone and email scams:

https://www.irs.gov/uac/newsroom/phone-scams-continue-to-be-a-serious-threat-remain-on-irs-dirty-dozen-list-of-tax-scams-for-the-2016-filing-season

Stay vigilant and if you ever have questions about an email or phone call you’ve received, feel free […]

By Linkenheimer LLP|2020-09-03T20:05:02+00:00November 15th, 2016|irs|0 Comments