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Tax Alerts
June 11, 2021
Tax Briefing(s)

Welcome to the Alcorn & Cureton, Ltd Web Site.cpa logo

It's SUMMER. We are on our summer office hours, Monday thru Thursday 8am-5pm. The office is closed on Fridays

Virginia Corporations are receiving a notice regarding filing a special Unitary tax report.  We mailed out today instrucitons on what you need to do with this on May 10.  Be on the lookout for our mailing.

Effective 1 July 2021 Virginia will require almost all individual income tax payments to be electronic. Any estimated payment over $2,500 is to be paid electronically which can be done easily on their website:

https://www.business.tax.virginia.gov/tax-eforms/760es.php#

FILING DATES HAVE BEEN CHANGED FOR 2020 INCOME TAX RETURNS:

The IRS has postponed the INDIVIDUAL 1040 filing date until May 17th. The 1st quarter Fed Estimated 2021 tax payment is still due April 15th.  Corporate returns are still due April 15.

On March 11 Maryland announced they will postpone most filing dates to July 15, 2021.  Includes corporate, partnership and individual returns AND 2021 estimated payments .

Virginia Individual returns are now due May 17th.  Estimates still due May 3.

DC, Calif and NY have also pushed their individual filing dates back to May 17th but kept their estimates due April 15th.  Most other states still have an April 15th due date for the first quarter 2021 estimated tax payment.

Virginia will allow $100,000 of expenses paid with PPP funds to be deductible for VA state tax purposes on 2020 tax returns.  PPP loan amounts over $100,000 will be taxable on Virginia returns. 

More tax law changes are here! (when will it ever stop?)

The rules for IRAs and company retirement plans have changed (Dec 2019) with the passage of the SECURE Act that will allow you to wait until age 72 before you have to start taking IRA distributions, and will allow IRA contributions up to age 72 also. All starting in 2020. But, it will not allow you to stretch the distributions for your heirs. The person inheriting your retirement account may have to pull it all out within 10 years. 

Have huge capital gains?  You have up to 180 days to completely shelter those gains using an investment in a Qualified Opportunity Zone.  Ask us about QOZs.

Use our secure portal to upload your data and documents to us. It's safe (fully encrypted) and easy.  Click on the File Share box at the bottom of this page.

The Corporate income tax rate is now 21%.

The Federal Estate Tax exclusion jumps to over $11 million a person. But some states, such as Maryland and DC still have much lower thresholds for when the estate tax starts.  The annual gift tax exclusion amount goes is $15,000. 

Virginia is moving towards almost all payments to the state having to be electronic.  For businesses, everything has to be paid electronically, and individuals with high Virginia estimated payments must pay electronically.  You can make these payments through the VA Dept of Taxation web site. (https://tax.virginia.gov/).

You can upload your investment information directly into your tax return by using our Intuit Link system.  Let us know that you want to have your interest, dividends and stock sales imported directly in, and we will send you an invite to register with Intuit and select the accounts you want to upload. 

Starting a business?  We can help. Generally we recommend that most businesses start as an LLC (Limited Liability Company). If there is only one owner, it will be a single member LLC and the income and expenses will just be reported on the owner's tax returns.  If there is more than one owner, the LLC will be taxed as a partnership and will file a partnership income tax return.  The entity itself does not pay income taxes, in that the income flows through to the owners on their tax returns. 

The LLC form of business helps protect you from legal liability if done correctly.  Most businesses can benefit from that, especially high risk activities such as real estate (rentals, construction and flipping), restaurants and services.

LLCs generally have to register with the State and you want to obtain a Federal Employer ID number (EIN) from the IRS.  That way you do not need to use your Social Security Number.

The IRS does NOT call you to say they are suing you, taking you to court or demanding you make a payment to them today.  These are scams. The IRS warns that there are now scam IRS CP-2000 notices (tax adjustments) being emailed out. The IRS also does NOT send out emails regarding a tax refunds or rebates or request that you set up a PIN number in order to get your refund. These are phishing schemes and phone scams, and you should not respond to them and NEVER, NEVER, NEVER click on a link from one of those emails. Never make a payment to the I.R.S., in that all payments to the government are paid to the U.S. Treasury.  If your notice or call says anything different, it is fake. PLEASE REPORT THESE TO http://www.treasury.gov/tigta/contact_report_scam.shtml 

A wonderful video on this is

http://www.cnn.com/2015/03/13/us/irs-scam/index.html

Setting up a 529 Plan for your kids or grandchildren?  While there is not a Federal tax deduction, there are state tax deductions available if set up with your state of residence or its approved plan.  You can maximize your state tax deductions by splitting the accounts between husband and wife (Virginia) or by the different type of plans (Maryland). 

Virginia Employers, including individuals with rental properties, must file a BPOL license with their county or city by March 1.  Landlords with properties in DC must file a Franchise Tax return. Every jurisdiction has its own rules on this. Fairfax County requires a business license if you rent three or more residential properties or one commercial property.

Get a heads up on the new laws-subscribe to our NEWSLETTER.  Our monthly newsletter will be emailed to you each and every month.  Click on the Subscribe button at the bottom of the page. This is a free client service that we want you to take advantage of.  There are always a lot of good tax planning ideas in each monthly newsletter.

Thinking about using a Tax Relief company to reduce your balance due to the IRS? Check out the news article, in Links on the top menu line, then in News.

Are you maximizing your retirement plan deductions? Is all of your estate planning (wills, trusts and medical directives) up to date? Please make sure that we have the current version of your Will and Trust documents. 

We have many calculators in our FINANCIAL TOOLS section (tab above) including a full 1040 tax calculator, estate planning and mortgage loan calculators, including refinance savings computations and amortization schedules. There are so many powerful calculators; you will be able to calculate things that you never thought existed!

Driving directions to our office can be found in the CONTACTS section.

In addition to providing you with a profile of our firm and the services we provide, this Website has been designed to become a helpful resource tool to you, our valued clients and visitors. Our dedication to superior client service has brought us to the Internet as we endeavor to continue to provide the highest quality professional service and guidance.

As you browse through our Website, you will see that not only have we highlighted background information on our firm and the services we provide, but have also included useful resources such as informative articles (in our Newsletter section) and interactive financial calculators (in our Financial Tools section). Check out the nifty refinancing calculators to determine if you should refinance now, and how much it may save you.

In addition, we have taken the time to gather many links to external Websites that we felt would be of interest to our clients and visitors (in our Internet Links section).

While browsing through our Website, please feel free to contact us with any questions or comments you may have - we'd love to hear from you. We pride ourselves on being proactive and responsive to our clients' inquiries and suggestions.

Special note to our File Share users.  To improve security, the portal requires a fairly current browser version.  If your browser is IE 10 or prior, you will get a "cannot find page" error message.  If you do, please update your browser (they are free, and you should not be using an older version anyway). 

If you are uploading your QuickBooks file, we suggest that you send a Portable Copy (.QBM) in that it is smaller and contains less data than a regular Backup file (.QBB). It also does not contain your sensitive customer data. Please note that you also need to send us your current QB password.