Category Archives: tax

tax

2017 Tax Filing Season for 2016 Returns

IRS Tax Filing Season Starts January 23

The 2017 Tax Filing Season, for filing 2016 tax returns, begins January 23, 2017.

January 23 calendar dateThe Internal Revenue Service recently announced that the tax season will officially begin Monday, January 23, 2017.  This is the day that the IRS will begin accepting electronic tax returns and processing paper tax returns. 

Prepare Returns Starting Now

Most software companies and tax professionals, including us, will be accepting tax returns before January 23, and then will submit the returns when IRS systems open.

Tax Preparation Hints

To prepare for filing your tax return, as you receive your 2016 tax documents, please collect them and keep them with your tax organizer. These documents include such items as your W-2s, Form 1099s, K-1s, brokerage statements, health insurance tax documents, etc. Your check register may also include pertinent information.

When you have gathered all your tax information, please set-up an appointment or mail/submit the tax organizer, along with your various tax forms to us.

How to Reach Us

Our office is on Cape Cod on Route 28 in West Harwich.  The address is 72 Route 28, Suite 2, West Harwich, MA 02671-1112. We’re on the first floor.

We can be reached by phone at (774) 237-0691 or by FAX at (774) 237-0835. Use our contact form to send us an email.

news update, tax

Mileage Rates for 2017

IRS Lowers Mileage Rates for 2017

The Internal Revenue Service has issued the 2017 optional standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning, January 1, 2017, standard mileage rates for the use of an automobile will be:

  • 53.5 cents per mile for business miles driven, down from 54 cents for 2016
  • 17 cents per mile for medical or moving purposes, down from 19 cents for 2016
retirement, tax

Take Required Minimum Distribution by December 31st

Are You 70½ or Older?

Retirement funds cannot be kept in an account indefinitely.  Generally an individual has to start taking withdrawals from an IRA, SIMPLE IRA, SEP IRA, or retirement plan account when he/she reaches age 70½.

Roth IRAs do not require withdrawals until after the death of the owner.

The required minimum distribution is the minimum amount an individual must withdraw from his/her account each year.  The RMD are mandatory, minimum yearly withdrawals that generally must be taken starting in the year the retirement account holder turns 70½.  When an individual turns 70½, they must start taking a required minimum distribution (RMD) or withdrawal from their retirement funds.

Take Distribution by December 31st

Remember to Take RMD (Required Minimum Distribution) by December 31st. An individual generally has until April 1 of the year following the calendar year he/she turns age 70½ to take his/her first MRD.  However, it is recommended that the individual take the first RMD by December 31st of the year that he/she turned 70½, in order to avoid having to take two distributions in the same year.  For each subsequent year after your required beginning date, you must withdraw your RMD by December 31.

Penalty for Not Taking a Scheduled Distribution

Forgetting to take a RMD can result in a significant charge.  If an individual does not take any distributions, or if the distributions are not large enough, he/she may have to pay a 50% excise tax on the amount not distributed as required.

How to Determine Your Distribution Amount

Generally, the amount of the RMD is determined by dividing the adjusted market value of the individual’s account as of December 31 of the prior year by an applicable life expectancy factor. The Uniform Lifetime Table (PDF) can be used to find the individual’s life expectancy factor or the Fidelity Minimum Required Distribution Calculator to help determine what will be required to withdraw.

 

news update, tax

Tax Deadline for 2015 Filing

Tax Deadline Extended This Year

Monday, April 18th, 2016 is the tax deadline for 2015 filings for most people, but it is extended to April 19th for Massachusetts individuals.

Generally, April 15 of each year is the due date for filing your federal individual income tax return if you are a calendar year filer whose tax year ends on December 31.

If you use a fiscal year (which is a year ending on the last day of any month other than December), your return is due on or before the 15th day of the fourth month after the close of your fiscal year.

If the due date falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. For example, Friday, April 15, 2016, is Emancipation Day, so tax year 2015 returns are due Monday, April 18, 2016. Taxpayers in Maine and Massachusetts observe Patriots’ Day on Monday, April 18, 2016, so they will have until Tuesday, April 19, 2016 to file.

Your return is considered filed timely if the envelope is properly addressed and postmarked by the due date.

Some Deadline Tips from the IRS website

Monday, April 18, is the tax deadline
File your return and pay taxes by April 18 (19th in MA & ME) to avoid late penalties or interest.

Need more time to file your tax return? Get a 6-month extension of time to file your return (but you still must pay on time).

Here’s what to do if you can’t pay on time
These tips will help if you can’t pay all of your taxes by the due date.

Tax Calendar for 2016

Here’s a handy tax calendar for 2016 supplied by the IRS to help you remember when taxes are due. The General Tax Calendar has important due dates for all businesses and individuals. Anyone who must pay excise taxes may need the Excise Tax Calendar.

news update, tax

IRS Warns of Tax Scams

Phishing & Tax Scams 

Phishing scams are becoming more prevalent and constantly evolving.  Please note that the IRS won’t be calling or emailing you out of the blue asking you to verify your personal tax information or aggressively threatening you to make an immediate payment.  The IRS initiates contact with an official letter that is mailed to your home address, not by telephoning or emailing.  If you have any questions to the authenticity of any communications, please consult your tax advisor.

The IRS will never:

  • Call to demand immediate payment over the phone, nor will the agency call about taxes owed without first having mailed you several bills.
  • Call or email you to verify your identity by asking for personal and financial information.
  • Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
  • Require you to use a specific payment method for your taxes, such as a prepaid debit card.
  • Ask for credit or debit card numbers over the phone or e-mail.
  • Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.

Some Phishing Links from IRS website

ALERT: New tactics by phone scammers
IRS impersonators call claiming they need to verify financial details to process your return.

ALERT: Payroll and HR professionals
An email scheme claims to be from company executives and requests employee W-2 information.

Consumer Alert: Recent phishing schemes
The IRS has seen a 400 percent surge in phishing and malware incidents so far this tax season.

Don’t Be Fooled by Tax Scams