John W. Stottman Jr. CPA, PA.

IRS.GOV Charitable Contribution Deductions | Internal Revenue Service

POLITICO.COM Senate agrees to extend small business rescue in surprise move

https://russellvillecourier.secondstreetapp.com/The-Couriers-Best-of-the-Best---Readers-Choice-Awards-2020/gallery?group=367573 Vote now for the best of the best in the River Valley RUSSELLVILLECOURIER.SECONDSTREETAPP.COM The Courier's Best of the Best - Readers' Choice 2020

Happy Thanksgiving to all our clients and friends. We will be closed Thursday and Friday of this week so our staff can celebrate the Holiday.

If we can help you with this let us know. IRS to employers: Remember Feb. 1, 2021 deadline for Form W-2, other wage statements WASHINGTON — The Internal Revenue Service today reminded employers that they must file Form W-2 and other wage statements by Feb. 1, 2021, to avoid penalties and help the IRS prevent fraud. A 2015 law made it a permanent requirement that employers file copies of their Form W-2, Wage and Tax Statements, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by Jan. 31. That is also the date the Forms W-2 are due to workers. This upcoming tax season, however, Jan. 31 falls on a Sunday, pushing the due dates to the next business day, which is Monday, Feb. 1. Certain Forms 1099-MISC, Miscellaneous Income and Forms 1099-NEC, Nonemployee Compensation, are also normally due to taxpayers on Jan. 31, but this tax season they too will be due on the next business day, Feb. 1, 2021. Various other due dates related to Form 1099-MISC, including dates dues to the IRS, can be found in the instructions on IRS.gov. Helping fraud detection The normal January filing date for wage statements means that the IRS can more easily detect refund fraud by verifying income that individuals report on their tax returns. Employers can help support that process, and avoid penalties, by filing the forms on time and without errors. The IRS recommends e-file as the quickest, most accurate and convenient way to file these forms. Start early Good preparation now can help businesses avoid problems later. For instance, employers can get an early start verifying or updating employee information like names, addresses and Social Security numbers or Individual Taxpayer Identification Numbers. They should also ensure their company’s account information is current and active with the Social Security Administration before January. Businesses should also order paper Forms W-2 early if needed. Automatic extensions of time to file Forms W-2 are not available. The IRS will only grant extensions for very specific reasons. Details can be found on the instructions for Form 8809, Application for Time to File Information Returns. For more information, read the instructions for Forms W-2 & W-3 and the Information Return Penalties page at IRS.gov.

ARKANSASONLINE.COM IRS plans in '21 to step up audits of smaller businesses

https://moneywise.com/a/the-15-worst-states-for-retirement-taxes MONEYWISE.COM The 15 Worst States for Taxing Your Retirement

CNBC.COM Congress agrees to a Covid stimulus deal. Here’s who’s likely eligible for a $600 check and when you’ll get it

Hope everyone has a wonderful holiday season. John W. Stottman Jr., CPA PA December 22, 2018 at 11:46 PM · Our office will be closed December 24th and the 25th. Merry Christmas 🎄🎁 to everyone.

Remember Arkansas minimum wage in Arkansas when up to $11.00 an hour on January 1st.

Wishing all our friends and clients a very Happy New Year!!!

MONEY.COM Here's When You'll Get Your Second Stimulus Check

AYMAG.COM Top Five Restaurants to Visit in Russellville, Arkansas - AY Magazine

KATV.COM Parents of babies born in 2020 may be eligible for $1,100 in extra stimulus cash

USATODAY.COM IRS tax season 2021 officially kicks off Feb. 12. Here’s why it starts so late

IRS has refunds totaling $1.3 billion for people who have not filed a 2017 federal income tax return WASHINGTON – Unclaimed income tax refunds worth more than $1.3 billion await an estimated 1.3 million taxpayers who did not file a 2017 Form 1040 federal income tax return, according to the Internal Revenue Service. “The IRS wants to help taxpayers who are due refunds but haven’t filed their 2017 tax returns yet,” said IRS Commissioner Chuck Rettig. “Time is quickly running out for these taxpayers. There’s only a three-year window to claim these refunds, and the window closes on May 17. We want to help people get these refunds, but they will need to quickly file a 2017 tax return.” The IRS estimates the midpoint for the potential refunds for 2017 to be $865 — that is, half of the refunds are more than $865 and half are less. In cases where a federal income tax return was not filed, the law provides most taxpayers with a three-year window of opportunity to claim a tax refund. If they do not file a tax return within three years, the money becomes the property of the U.S. Treasury. For 2017 tax returns, the window closes May 17, 2021, for most taxpayers. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by that date. The IRS reminds taxpayers seeking a 2017 tax refund that their checks may be held if they have not filed tax returns for 2018 and 2019. In addition, the refund will be applied to any amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or past due federal debts, such as student loans. By failing to file a tax return, people stand to lose more than just their refund of taxes withheld or paid during 2017. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC). For 2017, the credit was worth as much as $6,318. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2017 were: $48,340 ($53,930 if married filing jointly) for those with three or more qualifying children; $45,007 ($50,597 if married filing jointly) for people with two qualifying children; $39,617 ($45,207 if married filing jointly) for those with one qualifying child, and; $15,010 ($20,600 if married filing jointly) for people without qualifying children. Current and prior year tax forms (such as the tax year 2017 Form 1040, 1040A and 1040EZ) and instructions are available on the IRS.gov Forms and Publications page or by calling toll-free 800-TAX-FORM (800-829-3676). Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years 2017, 2018 or 2019 should request copies from their employer, bank or other payer. Taxpayers who are unable to get missing forms from their employer or other payer can order a free wage and income transcript at IRS.gov using the Get Transcript Online tool. Alternatively, they can file Form 4506-T to request a wage and income transcript. A wage and income transcript shows data from information returns received by the IRS, such as Forms W-2, 1099, 1098, Form 5498 and IRA contribution information. Taxpayers can use the information from the transcript to file their tax return. First-time filers and EIP eligible The IRS reminds first-time filers and those who usually don’t have a federal filing requirement that they must file a 2020 tax return to claim the Recovery Rebate Credit (RRC), if they were eligible but did not receive the first or second Economic Impact Payment (EIP), or received less than the full amounts. The IRS offers free options to prepare and file a return at How to File on IRS.gov. Taxpayers who received the full amounts of both EIPs cannot claim the RRC and should not include any information about the payments on their 2020 tax return.

IRS extends additional tax deadlines for individuals to May 17 WASHINGTON – The Internal Revenue Service today announced that individuals have until May 17, 2021 to meet certain deadlines that would normally fall on April 15, such as making IRA contributions and filing certain claims for refund. This follows a previous announcement from the IRS on March 17, that the federal income tax filing due date for individuals for the 2020 tax year was extended from April 15, 2021, to May 17, 2021. Notice 2021-21 provides details on the additional tax deadlines which have been postponed until May 17. Time to make contributions to IRAs and health savings accounts extended to May 17 In extending the deadline to file Form 1040 series returns to May 17, the IRS is automatically postponing to the same date the time for individuals to make 2020 contributions to their individual retirement arrangements (IRAs and Roth IRAs), health savings accounts (HSAs), Archer Medical Savings Accounts (Archer MSAs), and Coverdell education savings accounts (Coverdell ESAs). This postponement also automatically postpones to May 17, 2021, the time for reporting and payment of the 10% additional tax on amounts includible in gross income from 2020 distributions from IRAs or workplace-based retirement plans. Notice 2021-21 also postpones the due date for Form 5498 series returns related to these accounts to June 30, 2021. 2017 unclaimed refunds – deadline extended to May 17 For tax year 2017 Federal income tax returns, the normal April 15 deadline to claim a refund has also been extended to May 17, 2021. The law provides a three-year window of opportunity to claim a refund. If taxpayers do not file a return within three years, the money becomes property of the U.S. Treasury. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by the May 17, 2021, date. Additionally, foreign trusts and estates with federal income tax filing or payment obligations, who file Form 1040-NR, now have until May 17, 2021. 2021 AFSP deadline postponed to May 17 Tax preparers interested in voluntarily participating in the Annual Filing Season Program (AFSP) for calendar-year 2021 now have until May 17, 2021 to file their application with the Internal Revenue Service. The normal due date is April 15. Details on this extension are in Notice 2021-21, posted on IRS.gov. For more information about the Annual Filing Season Program, visit the Tax Pros page on IRS.gov. Estimated tax payment due April 15 Notice 2021-21, issued today does not alter the April 15, 2021, deadline for estimated tax payments; these payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. In general, estimated tax payments are made quarterly to the IRS by people whose income isn't subject to income tax withholding, including self-employment income, interest, dividends, alimony or rental income. Most taxpayers automatically have their taxes withheld from their paychecks and submitted to the IRS by their employer.

Here’s how taxpayers can track the status of their refund Tracking the status of a tax refund is easy with the Where's My Refund? tool. It’s conveniently accessible at IRS.gov or through the IRS2Go App. Taxpayers can start checking their refund status within 24 hours after an e-filed return is received. Refund timing Where's My Refund provides a personalized date after the return is processed and a refund is approved. While most tax refunds are issued within 21 days, some may take longer if the return requires additional review. Here are some reasons a tax refund may take longer: The return may include errors or be incomplete. The return could be affected by identity theft or fraud. Many banks do not process payments on weekends or holidays. Claiming the recovery rebate credit on a 2020 tax return will not delay processing of a tax return. However, it is important that taxpayers claim the correct amount. If a correction is needed, there may be a slight delay in processing the return. If corrections are made, the IRS will send the taxpayer notice explaining any changes. The recovery rebate credit will be included in the tax refund. The IRS will contact taxpayers by mail if more information is needed to process their tax return. Fast and easy refund updates Taxpayers can start checking on the status of their return within 24 hours after the IRS acknowledges receipt of an electronically filed return or four weeks after the taxpayer mails a paper return. The tool's tracker displays progress in three phases: Return received Refund approved Refund sent To use Where’s My Refund, taxpayers must enter their Social Security number or Individual Taxpayer Identification Number, their filing status and the exact whole dollar amount of their refund. The IRS updates the tool once a day, usually overnight, so there's no need to check more often. Calling the IRS won't speed up a tax refund. The information available on Where's My Refund? is the same information available to IRS phone assistors.