Author - SFS Tax & Accounting

Extension, procrastinator…Who me?

Extension, procrastinator…Who me?   Are you one of those “wait till the very last minute” type of people” or a procrastinator? Millions of taxpayers file tax extensions each year thinking that they can delay the inevitable.The IRS is glad to give you an extension if you owe taxes because they are going to charge you penalties and interest in the meantime. If you are due to receive a refund, the IRS will send your payment, and penalties do not apply. Regardless of [...]

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Yet Another New Warning on a Last-Minute Tax Scam!!

Yet Another New Warning on a Last-Minute Tax Scam!! It seems that we receive notices almost daily about new and more aggressive IRS scams.  The IRS and state tax agencies recently issued another a new scam warning, this time for both tax professionals and their clients of late-season phishing e-mail scams, especially those requesting last-minute deposit changes for refunds or account updates. As tax season winds down, tax-related scams are peaking, the IRS said, as cybercriminals use sophisticated scams to trick people into divulging sensitive data. One [...]

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Beware the Ides of March

Beware the Ides of March William Shakespeare famously wrote “Beware the Ides of March” in the play Julius Caesa in 1599 and for many years it was just something that was horrific for Caesar, who was assassinated by Marcus us Brutus the Younger in the senate on that date, which corresponds to March 15, in the year 44 B.C.E. But from 1918 to 1954 everyone was wary of it, because March 15 used to be Tax Day. After the 16th amendment was passed [...]

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Using Tax Software is not a Substitute for an Enrolled Agent

Using Tax Software is not a Substitute for an Enrolled Agent   The tax software companies want you to believe that their software’s interview process is all you need to prepare your own taxes and it is very convincing. After all, that’s what marketing does; convinces you that their product will work for you. They try to say it is a one size fits all.  It’s like you thinking you should get the same refund or pay less tax just like your [...]

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It’s Not Too Late to Make Retirement Account Contributions

It’s Taxing Times and Tax Resolution Times It’s Not Too Late to Make Retirement Account Contributions If you haven’t already funded your retirement account for 2016, you may still do so. You have until April 17, 2017 for contributions to a traditional IRA, deductible or not, and to a Roth IRA. Your total contributions to all your traditional and Roth IRAs can’t be more than $5,500 ($6,500, if you’re age 50 or older) or your taxable compensation for the year, if your [...]

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Working Grandparents May Be Eligible for Earned Income Tax Credit (EITC)

It’s Taxing Times and Tax Resolution Times Working Grandparents May Be Eligible for Earned Income Tax Credit (EITC) The Internal Revenue Service wants working grandparents raising grandchildren to be aware of the Earned Income Tax Credit (EITC) and correctly claim it if they qualify. What is the EITC? The EITC is a federal income tax credit for workers who don’t earn a high income ($53,505 or less for 2016) and meet certain eligibility requirements. Because it’s a refundable credit, those who qualify and claim [...]

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Health Insurance: You may qualify for a Special Enrollment Period

It’s Taxing Times and Tax Resolution Times Health Insurance: You may qualify for a Special Enrollment Period You may qualify for a Special Enrollment Period if you or anyone in your household experienced these changes within the past 60 days: Did you get married? Pick a plan by the last day of the month and your coverage can start the first day of the next month. Have you had a baby, adopted a child, or placed a child for foster care? Your coverage can start the day [...]

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Watch out for IRS Impersonation Telephone Scams

It’s Taxing Times and Tax Resolution Times Watch out for IRS Impersonation Telephone Scams An aggressive and sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be employees of the IRS, but are not. These con artists can sound convincing when they call. They use fake names and bogus IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it [...]

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Upcoming Tax Deadlines

It’s Taxing Times and Tax Resolution Times Upcoming Tax Deadlines March We 1 Farmers and fishermen: File Form 1040 and pay any tax due. However, you have until Apr 18 to file if you paid your 2016 estimated tax payments by Jan 17, 2017. Th 2 Applicable Large Employers provide Forms 1095-C to full time employees; For all other providers of Minimum Essential Coverage, provide Forms 1095-B to responsible individuals. We 15 S Corps: File Form 1120S for calendar year and pay any tax due. Give copy [...]

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Can You Claim Your Parents as Dependents?

Can You Claim Your Parents as Dependents? With so many millennials moving back home with mom and dad, the question of whether adult children living with their parents can be claimed as dependents is a hot topic. On the other side of the generational divide, and affecting at least as many people, is the question of whether parents can be claimed as dependents on their children’s returns. If you are assuming the day-to-day care and financial support of a parent and [...]

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