Certified Public Accountants
Here’s a link to a good article on itemized deductions after the Tax Cut and Jobs Act of 2017 was passed in December. Please call us with any questions-we’re here to help you!
Johnson Smith and Associates – Our office has received a few phone calls where the caller has indicated they received a call or a voicemail stating that someone with Johnson, Smith and Associates would be hand-delivering some important documents to their residence and they needed to verify that someone above the age of 18 would be home. Either there was no number left for a return call or no valid phone number appeared on caller id, so the recipients of these calls Googled “Johnson, Smith and Associates”, and got our firm. This company has also left the call back number of (888) 742-6869 and (888) 789-2498. The company in question is a legitimate company out of Massachusetts, and is in no way related to JSA CPAs, PLLC (formerly Johnson, Smith & Associates, PLLC), in Little Rock, Arkansas.
As some of you may have noticed, we recently changed our name!! Johnson, Smith & Associates, PLLC is now JSA CPAs, PLLC! We will still be providing the same exceptional services which you have come to depend on us for. Our office location, phone, and fax numbers will remain the same. Our website is now www.jsacpas.net. As always, we look forward to the upcoming year and wish everyone a very Merry Christmas and a Happy New Year!
IRS announced the 2016 standard mileage rates as follows:
These rates are effective 1/1/2016.
As December 31, 2015 rapidly approaches, we would like to take this opportunity to remind you of a few items that can require special reporting. These items can increase your tax liability and trigger penalties if not accounted for correctly.
If your S-corporation pays health and accident insurance premiums on behalf of greater-than-two percent shareholder-employees, the S-corporation may deduct the cost of health and accident insurance premiums paid on their behalf if reported correctly. The S-corporation must report the premium amounts as wages for income tax withholding purposes on the shareholder-employee’s Form W-2. However, these amounts are not subject to Social Security, Medicare or FUTA. Contact us before the end of the year to assist you with proper reporting for payroll tax purposes.
If you made payments to any one person or business totaling $600 or more for services, you may be required to file an information return, commonly known as a 1099-MISC, to the IRS. Typically, the only exception to this is if the vendor is a corporation. All 1099s must be mailed to the recipients by January 31st.
There are multiple types of penalties associated with 1099 filing. Penalties for late filing of 1099s range from $50 to $250 per 1099. Intentional disregard of 1099 filing results in a penalty of $500 per 1099 with no maximum penalty. Intentional disregard occurs when a filer who knows, or should know of the rules or regulations, chooses to ignore its filing requirements. There are also penalties associated with incorrect or missing taxpayer identification numbers.
To avoid these penalties, the best practice is that a W-9, Request for Taxpayer Identification Number and Certification, be obtained before payment is made to any vendor regardless of the amount of the transaction or whether the vendor is a corporation or not. For your convenience, attached is a Form W-9. Should you misplace the attached form, you can download another copy at www.irs.gov.
Whether your company supplies business autos to employees primarily as “perks” or as necessary tools to help them get their work done, their personal use of the auto has tax implications for them and for you. An employee’s personal use of a company auto generally must be treated as a non-cash taxable fringe benefit that should be reported as wages and subject to social security taxes.
There are various tax rules to determine the amount of the non-cash fringe benefit. These rules also apply to any owner in a business that has their auto listed as a company asset and then uses that vehicle for both business and personal use. Please let us know if you would like our assistance in the calculation of this non-cash taxable fringe benefit as this fringe benefit should be reported in the final payroll run of the 2015 tax year.
Starting in 2010, the U.S. Treasury Department and the IRS started focusing on foreign financial assets. The Bank Secrecy Act requires each United States person with a financial interest in, or signature authority over, any financial accounts with an aggregate value of more than $10,000 at any time during the calendar year, including bank, securities or other types of financial accounts in a foreign country to report that relationship by filing an FBAR. The FBAR must be received by the IRS on or before June 30 of the year following the calendar year being reported.
Civil penalties for failing to file an FBAR can be significant. The IRS can impose a $10,000 penalty for each non-willful violation of the FBAR filing requirement. Where a person willfully fails to file an FBAR, the IRS may impose a penalty equal to the greater of $100,000 or 50 percent of the account’s highest balance. In addition, criminal penalties for a willful failure to file can reach $250,000, 5 years in prison or both.
If you meet this filing requirement, contact us as soon as possible to begin accumulating the required documentation for reporting purposes.
There is a new reporting requirement in the Foreign Account Tax Compliance Act of 2010 (FATCA). Certain U.S. taxpayers holding specified foreign financial assets with an aggregate value exceeding $50,000 will report information about those assets on Form 8938, which must be attached to the taxpayer’s annual income tax return. This reporting requirement does not eliminate nor replace the FBAR filing discussed above.
Penalties for noncompliance with FATCA can be substantial. There is a failure to file (Form 8938) penalty of $10,000 and an additional penalty of up to $50,000 for continued failure to file after notification by the IRS, and a 40 percent penalty on an understatement of tax attributable to non-disclosed assets. Please inform us if you have any foreign bank and financial accounts.
As planning for and executing year-end reporting requirements can appear to be a daunting task, our office is prepared to assist you. Please do not hesitate to contact us should you have questions. We look forward to working with you.
Sincerely,
Johnson, Smith & Associates, PLLC
Congress Agrees On Favorable Changes To Paycheck Protection Loans: What Does It Mean For Borrowers? Original link: https://www.forbes.com/sites/anthonynitti/2020/06/03/congress-agrees-on-favorable-changes-to-paycheck-protection-loans-what-does-it-mean-for-borrowers/#73f2ec9b66fd Earlier today, the Senate unanimously approved H.R. 7010, a bill that will dramatically alter several critical terms of the recently-enacted Paycheck Protection Program (PPP). The bill, which passed the House last week and now heads to … [more]
IRS extends more tax deadlines to cover individuals, trusts, estates corporations and others Original Post – https://www.irs.gov/newsroom/irs-extends-more-tax-deadlines-to-cover-individuals-trusts-estates-corporations-and-others IR-2020-66, April 9, 2020 WASHINGTON — To help taxpayers, the Department of Treasury and the Internal Revenue Service announced today that Notice 2020-23 (PDF) extends additional key tax deadlines for individuals and businesses. Last month, the IRS announced … [more]
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The Act includes various provisions designed to provide an economic stimulus to both individuals and businesses. The intention of the new legislation is to increase cash flow and liquidity and to reduce the cost of capital. … [more]
IRS unveils new People First Initiative; COVID-19 effort temporarily adjusts, suspends key compliance program Original post – https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-temporarily-adjusts-suspends-key-compliance-program IR-2020-59, March 25, 2020 WASHINGTON — To help people facing the challenges of COVID-19 issues, the Internal Revenue Service announced today a sweeping series of steps to assist taxpayers by providing relief on a variety of … [more]
Treasury Secretary Steven Mnuchin, “All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.” Click the link below for more information. https://www.foxnews.com/politics/tax-day-moving-to-july-15-amid-coronavirus-crisis-mnuchin-announces
The news today is dominated by information about the COVID-19 virus. Our heartfelt sympathies go out to those who have been affected by the coronavirus-those affected physically and economically. At JSA, we are blessed to have not been affected directly by COVID-19 yet. It seems we all know someone who has felt the impact. Our … [more]
On Wednesday, the IRS issued guidance clarifying the ability to deduct meals in light of the changes brought about by the Tax Cuts and Jobs Act. Please click on the link which will take you to the article. Please contact us or call the office at your convenience if you have any questions-we’d be happy … [more]
Is your withholding holding you back? Last December, Congress passed the Tax Cuts and Jobs Act (TCJA). The law is one of the most comprehensive changes to the Tax Code in almost 40 years. And it affects everyone. While it will result in lower total Federal income taxes for most Americans, the structure of the new … [more]
Senior Accountant, CPA Local CPA firm in Little Rock seeking to fill senior staff accountant position. CPA or CPA-qualified candidate. The qualified candidate will have 2-3 years of recent public accounting experience with supervisory skills a plus. Position requires skills in both income tax and financial statement preparation. Must have excellent problem solving skills with … [more]
IR-2018-32: Interest on Home Equity Loans Often Still Deductible Under New Law One of the most-often asked questions we receive about The Tax Cuts and Jobs Act is the deductibility of interest on home equity lines of credit (HELOC) and second mortgage. Here is some information regarding that question. It doesn’t answer all possible scenarios … [more]
Here’s a link to a good article on itemized deductions after the Tax Cut and Jobs Act of 2017 was passed in December. Please call us with any questions-we’re here to help you! https://www.forbes.com/sites/kellyphillipserb/2017/12/20/what-your-itemized-deductions-on-schedule-a-will-look-like-after-tax-reform/#111116206334
Johnson Smith and Associates – Our office has received a few phone calls where the caller has indicated they received a call or a voicemail stating that someone with Johnson, Smith and Associates would be hand-delivering some important documents to their residence and they needed to verify that someone above the age of 18 would … [more]
As some of you may have noticed, we recently changed our name!! Johnson, Smith & Associates, PLLC is now JSA CPAs, PLLC! We will still be providing the same exceptional services which you have come to depend on us for. Our office location, phone, and fax numbers will remain the same. Our website is now … [more]
IRS announced the 2016 standard mileage rates as follows: Standard mileage rate for business use decreased to 54 cents per mile. Medical and moving mileage rate decreased to 19 cents per mile. Charitable mileage deduction remains at 14 cents per mile. These rates are effective 1/1/2016.
As December 31, 2015 rapidly approaches, we would like to take this opportunity to remind you of a few items that can require special reporting. These items can increase your tax liability and trigger penalties if not accounted for correctly. S-Corporation Shareholder-Employees If your S-corporation pays health and accident insurance premiums on behalf of greater-than-two … [more]
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