The IRS has reminded taxpayers who missed the July 15 deadline without requesting an extension about some important tips, including filing electronically as soon as possible to reduce potential penalt...
The Treasury and IRS announced on August 18 that they were to start sending interest payments to about 13.9 million individual taxpayers who timely filed their 2019 federal income tax returns and are ...
The IRS has warned taxpayers that if they mailed checks (either with or without tax returns), the checks may still be unopened in the backlog of mail that it is processing due to COVID-19. Any payment...
The IRS has announced that it will reopen the registration period for federal beneficiaries who did not receive $500 per child payments earlier this year, as it continues to look for ways to look for ...
The IRS has announced that taxpayers can now submit Form 1040-X electronically with commercial tax filing software. Until now, taxpayers were required to mail a completed Form 1040-X to the IRS for pr...
The IRS has reminded individuals receiving unemployment compensation (beneficiaries) that they can have tax withheld from their benefits now to help avoid owing taxes on this income when they file the...
The IRS announced that more than one million Individual Taxpayer Identification Numbers (ITINs) will expire at the end of 2020. ITINs are used by people who have tax filing or payment obligations unde...
The IRS has reminded employers of their options when it comes to choosing payroll service providers. The IRS also summarized the different types of third party providers available, including:payroll s...
The District of Columbia has enacted emergency legislation to:create a deduction for capital gains from opportunity zones;enact a hospital fund fee;expand the taxable income definition for unincorpora...
On remand, the Maryland Tax Court held that an unauthorized insurance company was exempt from state corporate income taxation under Title 4 of the Insurance Article. The exemption language under Title...
Virginia updated its motor vehicle rental tax guidelines to provide guidance on tax law changes applicable to peer-to-peer vehicle sharing. The peer-to-peer vehicle sharing tax was enacted earlier in ...
Welcome to the Alcorn & Cureton, Ltd Web Site.
Did you just get an extra small refund from the IRS? It is probably legit. They set the law up that for refund returns filed between April 15th and July 15th the IRS will pay interest on that refund, via a separate check or deposit, calculated from April 15th. They say these will average $18. Another crazy tax law due to the Covid virus.
Working on your PPP forgiveness application? We recommend you wait until you have reached the 24 week measuring period. Then, don't rush. There is a possibility of some sort of blanket forgiveness that Congress might enact, so we are encouraging our clients not to rush in processing the forgiveness paper work. We can help you with your PPP computations when you are ready.
There is a free PPP forgiveness tool developed by the AICPA that you can use at https://www.pppforgivenesstool.com/
28 July There may be a second PPP program coming. Keep your eyes open. There is a State of Virginia Rebuild VA program that started 10 August for small businesses hit by the economy. Applications at https://www.governor.virginia.gov/rebuildva/
24 June- the IRS relaxed the rules on doing a rollover from your retirement account. Distributions received any time in 2020 can be rolled back into the account and are not subject to the 60 rollover rule. If you took a distribution in January 2020 you can roll it back into your IRA and have it not subject to taxation if the rollover is done before August 31, 2020.
22 June- Yes, the rules for the PPP forgiveness have changed. You now need to use 60% of the money for payroll and you have 24 weeks to spend it. Do NOT file your forgiveness application based on the old 8 week rule. You will do a lot better if you go with the 24 week option. Greatly increases the compensation that you can use, and does allow a greater amount for those employees over $100,000. Make sure you download the most current version of the forgiveness application from the SBA. Almost all SE people show easily get 100% forgiveness.
ALSO- the new law allows employers and even those self employed to defer the ER portion of the payroll taxes. This can be a great cash flow benefit for companies suffering under the various virus lockdowns.
So, you think you are entitled to a Stimulus Check? Most are based on the 2018 income tax return. If your total income was over $99k single or $199k joint, YOU DO NOT GET A CHECK. The stimulus check is really a rebate on your 2020 income taxes, so if you didn't receive one currently, you can claim it on your 2020 return if you qualify then.
A good number of stimulus payments are being paid out by debit card. If you get one in the mail, don't throw it away. It is legit. It is issued by MetaBank and comes in an envelope marked "Money Network Card Services"
If you have any questions, you can get details on the IRS web site (www.irs.gov).
22 April- Virginia changes the rules on interest. For payments due May 1, no interest or penalty will be charged if paid by June 1. The 1st quarter 2020 estimated tax payment does not have to be paid until June 1.
10 April- the federal 2nd quarter 2020 estimated tax payment due date has been moved from June 15 to July 15th.
This year's tax law changes include the waiver of RMDs for 2020 (Required Minimum Distributions) from IRAs and Retirement Plans and business deferrals of Payroll Tax Deposits. You do NOT have to take a Required Minimum Distribution for 2020 from your IRA, SEP or Profit Sharing Plan.
Both the filing deadlines and the payment deadlines for FEDERAL taxes have been extended. Virginia has announced that they will NOT extend the filing deadline, but they will allow you to pay the taxes due one month late. DC and Maryland have extended their due dates to agree with the Fed changes.
CORONAVIRUS ALERT-WE ARE OPEN FOR BUSINESS WITH OUR NORMAL SUMER HOURS. HOWEVER, WE HIGHLY ENCOURAGE YOU TO DROP-OFF, MAIL, EMAIL OR UPLOAD YOUR TAX INFORMATION TO US. WE WILL CALL TO GO OVER THE DATA WITH YOU AND DISCUSS WHAT MIGHT BE MISSING OR PLANNING IDEAS. Your can use the File Share box at the bottom of this page to upload your documents to us safely. When using File Share, click on the cloud with the up arrow to upload files.
More tax law changes are here! (when will it ever stop?)
The rules for IRAs and company retirement plans have just 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
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 (personally or your business) subject to the Use Tax to your state? Check out our article on this in the Newsletter section.
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.
Be sure to catch our monthly newsletter, updated on the first of each month. Clicking on the Newsletter tab above can access the newsletter. We provide this newsletter service for you to keep up with the latest changes in the tax laws and newest ideas for tax and financial planning.
Need Tax Information? We have the complete CCH TAX GUIDE accessible at the INFO CENTER tab above. This complete tax book has information on individual, business and even non-for-profit taxes, with a full search feature.
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.