irs - Linkenheimer LLP CPAs & Advisors

Accelerated Filing Deadline for Forms W-2 and 1099

The Internal Revenue Service today reminded employers and small businesses of a new Jan. 31 filing deadline for Forms W-2. The IRS must also hold some refunds until Feb. 15.

A new federal law, aimed at making it easier for the IRS to detect and prevent refund fraud, will accelerate the W-2 filing deadline for employers to Jan. 31. For similar reasons, the new law also requires the IRS to hold refunds involving two key refundable tax credits until at least Feb. 15. Here are details on each of these key dates.

New Jan. 31 Deadline for Employers

The Protecting Americans from Tax Hikes (PATH) Act, enacted last December, includes a new requirement for employers. They are now required to file their copies of Form W-2, submitted to the Social Security Administration, by Jan. 31. The new Jan. 31 filing deadline also applies to certain Forms 1099-MISC reporting non-employee compensation such as payments to independent contractors.

In the past, employers typically had until the end of February, if filing on paper, or the end of March, if filing electronically, to submit their copies of these forms. In addition, there are changes in requesting an extension […]

By Linkenheimer LLP|2020-09-03T20:05:02+00:00November 1st, 2016|w2|0 Comments

Real Estate Agent Not Permitted to Deduct Rental Losses

For our clients out there who are real estate agents and property owners: The taxpayer was a licensed real estate agent who owned rental properties. For 2006 and 2007, she deducted a total of $78,543 in rental losses. Upon audit, the IRS disallowed these losses because the taxpayer failed to show she materially participated in the rental activity. The taxpayer argued that her status as a real estate professional automatically rendered the losses nonpassive, regardless of material participation. The Court of Appeals for the Ninth Circuit sided with the IRS, holding that although real estate professionals are not subject to the per se rule under IRC Sec. 469(c)(2) that rental losses are passive, they must still show material participation before deducting rental losses. Therefore, the taxpayer was not entitled to deduct the losses.

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

By Linkenheimer LLP|2020-09-03T20:05:09+00:00August 19th, 2016|deduction, irs|0 Comments

IRS Relaunches “Get an IP PIN” Tool

Identity Protection Personal Identification Number (IP PIN) is a six-digit number assigned to eligible taxpayers (victims of identity theft and residents of Florida, Georgia or the District of Columbia) to help prevent the misuse of their Social Security Numbers (SSNs) on fraudulent income tax returns. Back in March, the IRS temporarily suspended its “Get an IP PIN” tool due to security concerns. On 7/19/16, the IRS relaunched the site with a multi-factor authentication process aimed at preventing automated attacks. To verify their identities, taxpayers must have immediate access to an email address, account information from a credit card or other type of loan, and a text-enabled mobile phone. For more information on the process, taxpayers should consult Fact Sheet 2016-20 at www.irs.gov/uac/how-to-register-for-get-transcript-online-using-new-authentication-process . IRS Statement on “Get an IP PIN” Tool (7/19/16), available at www.irs.gov/uac/irs-statement-on-get-an-ip-pin-tool .

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

By Linkenheimer LLP|2020-09-03T20:05:10+00:00July 26th, 2016|irs|0 Comments

Tax Deadline is Around the Corner, So Here’s Some Humor to Help You Through It…

So April 15th is just a few days away, and yes, we know the real deadline is the 18th, but we’re telling our clients it’s the 15th (we don’t want to get shoeboxes of receipts next Monday afternoon). To help ease the stress that sometimes is associated with this time of the year, it seems some humor might be appropriate. We hope you enjoy and remember, no dropping off boxes of receipts on the 18th; boxes of chocolate on the other hand… they will be accepted.

“Two things you need to know about taxes. They’ve extended the deadline to April 18, and when you write your check, just make it out to China.” –David Letterman

“Tax day is the day that ordinary Americans send their money to Washington, D.C., and wealthy Americans send their money to the Cayman Islands.” –Jimmy Kimmel

“Because of a holiday, the deadline for taxes is April 18, so you have three extra days to dig through restaurant dumpsters for receipts.” –Jimmy Kimmel

“Worried about an IRS audit? Avoid what’s called a red flag. That’s something the IRS always looks for. For example, say you have some money left in your bank account after […]

By Linkenheimer LLP|2020-09-03T20:05:13+00:00April 14th, 2016|accounting, Linkenheimer, tax, tax time|0 Comments

IRS Suspends Identity Protection PIN Online Program

The IRS has announced that it has temporarily suspended its online Identify Protection Personal Identification Number (IP PIN) program to look at further strengthening security features of the tool. The IP PIN online program allowed taxpayers, who had received such numbers and then lost or misplaced them, and certain other taxpayers, to retrieve IP PINs online. An IP PIN is a six-digit number assigned to taxpayers to help prevent the misuse of their Social Security Numbers (SSNs) on fraudulent income tax returns. Following the suspension of this system, taxpayers, who are IP PIN holders but who lost their CP01A letters containing an IP PIN, will need to call the IRS. The IRS Statement on IP PIN is available at https://www.irs.gov/uac/Newsroom/IRS-Statement-on-IP-PIN

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

By Linkenheimer LLP|2020-09-03T20:05:14+00:00March 11th, 2016|irs|0 Comments