Archive for the ‘Tax’ Category

How To Prepare For A Federal Tax Return Headache

Tuesday, January 20th, 2015

Planning to buy a new big-screen television? Airline tickets for that Caribbean vacation you’ve been looking forward to?  A new car? You might want to wait a little longer.

IRS Commissioner John Koskinen recently warned American taxpayers that some federal refunds could be delayed for a week or more because of recent budget cuts. So, if you file your tax return on paper, before you start spending that income tax refund check, you might want to wait for the cash to actually find its way into your bank account. Expect to feel a little discomfort during this tax season.

Refund Delays

Historically, refunds for electronically filed federal returns were processed within 21 days of the e-filing acceptance date. Paper returns were typically processed within six to eight weeks from the date they were received. Amended tax return refunds take even longer – the turnaround for these returns were typically 12 weeks.

“People who paper file tax returns could wait an extra week – or possibly longer – to see their refund,” said Koskinen in a memo sent to IRS staff. “Taxpayers with errors or questions on their returns that require additional manual review will also face delays.”

In his memo, Koskinen didn’t explicitly address electronically filed returns, but it wouldn’t be a surprise for these refunds to be delayed (at least a little bit) as well.

Phone Jams

Nearly eight out of ten taxpayers receive an average tax refund totaling $2,800, which prompts many taxpayers to check in on the status of their refunds by calling the IRS. The agency is predicting an abysmal connection rate of these calls this year – 43 percent connection rate with a hold time of 30 minutes or more.

Instead, if you would like to track the status of your refund, hang up the phone and log onto the IRS’s website to use its Where’s My Refund feature.

Time will only tell how these budget cuts will impact next year’s tax return process, as well as other services provided by the IRS. In the meantime, start preparing to file your tax return as early as possible to avoid additional delays. Email Rea & Associates to learn more.

By Meredith Mullet, CPA (Wooster office)

 

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File Faster With This Tax Prep Checklist

Tuesday, January 20th, 2015

It’s that time of year again – time to gather your information and prepare to file your tax return. If you want the process to go smoothly, make sure to gather and organize your information before sitting down with your tax preparer. You may be surprised how fast the entire filing process goes if you spend a little time preparing!

Here’s a list of some items to compile before you get started.

Personal Information

Hopefully you know YOUR social security number and date of birth by heart. But do you know your spouse’s SSN? Your kids? Make sure you remember to bring the social security numbers and birth dates of everybody who will be claimed on your tax return.

Income Info

While your W-2 is important, there are many other pieces of information you will need to collect before you will be able to get started. Gather the following pieces of relevant information:

  • W-2s for you and your spouse.
  • Investment income: This type of income will be listed on various 1099 forms including –INT, -DIV, -B, etc). You may also have K-1s and stock option information to provide to your tax preparer.
  • Income received from state and local income tax refunds and/or unemployment. This income can be found on the Form 1099-G.
  • Gather information about any alimony you may have received.
  • If you are a business owner or farmer, don’t forget to provide a profit/loss statement and capital equipment information.  And if you use your home for business, your tax preparer will need to know the size of your house, the size of your office and what you have paid to maintain your home and office.
  • You will need to provide your IRA/pension distributions as well. This information will be provided to you on Forms 1099-R or 8606.
  • If you rent a home or other type of property, be sure to gather that information that proves the profit or losses you realized as a result of the rental.
  • Be sure to claim any Social Security benefits you may have received. This information is found on Form SSA-1099.
  • If you sold your house in 2014, you must provide your tax provider with Form 1099-C, which will include the income you received from the sale of the property. Your preparer will also take the home’s original cost and cost of improvements, the escrow closing statement and cancelled debt information into consideration.
  • Some other information you will need to pass along to your tax preparer includes items such as jury duty, gambling winnings, scholarships, etc.

Adjustments To Your Income

Now that you have collected all the information you can to adequately identify your income in 2014, some adjustments may need to be made. Making the following adjustments to your income may help increase your tax refund or lower the amount you owe to the government. If you have documentation of any of the following information, be sure to bring them to your appointment.

  • IRA contributions
  • Student loan interest
  • Medical Savings Account contributions
  • Moving expenses
  • Self-employed health insurance payments
  • Pension plans such as SEP and SIMPLE
  • Alimony you paid
  • Educator expenses

Itemized tax deductions and credits

This is another way to increase your refund or reduce what you owe. The following deductions and credits help lower the tax burden on individuals. Be sure to collect this information before filing your return.

  • Child care costs – child care provider’s name, address, tax ID number and amount paid
  • Education costs – these can be found on Form 1098-T
  • Adoption costs – the SSN of the child as well as legal, medical and transportation costs associated with the adoption
  • Home mortgage interest and points you paid, which can be found on Form 1098
  • Investment interest expense
  • Charitable donations that were made to not-for-profit organizations. Make sure you have the amounts and value of the donated property, and any out-of-pocket expenses you may have accrued in your effort to make the donation, including transportation costs. Include receipts for any contribution over $250

o   Losses you realized as a result of casualty and loss (the cost of the damage and insurance reimbursements

  • Medical and dental expenses
  • Energy credits
  • Other deductions include items such as union dues, unreimbursed employee expenses, such as unreimbursed employee expenses

New for 2014 returns

For the first time, you will need to provide information about your health insurance coverage to your tax preparer. Be prepared to answer questions such as these:

  • Was everyone claimed on your tax return covered by health insurance?

o   If not, why?

  • Did you or anyone on your return obtain health insurance coverage through Healthcare.gov or through a state run exchange in 2014?

o   If yes, did any of those individuals receive a premium tax subsidy, cost reduction, or premium tax credit? If yes, provide Form 1095-A.

It’s likely that you have already started receiving tax forms in the mail from various places. It’s easy to misplace these documents if you’re not careful. If you haven’t already, set aside a place for these items until you have collected them all. Once you have everything you need, you can set an appointment to file your taxes with your financial advisor or tax preparer. For additional tax information, or to speak with a tax expert, email Rea & Associates.

By Lesley Mast, CPA (Wooster office)

 

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Theft Safeguards To Cause Tax Return Delays In Ohio

Tuesday, January 20th, 2015

If time is money then the new security measures to protect Ohio taxpayer’s returns and prevent identity theft comes at a price. The Ohio Department of Taxation (ODT) said that in an effort to boost security and prevent tax-fraud in the state, Ohio will implement an “up-front filter to all tax-refund requests to analyze the demographic information reported on the return.”

According to Joe Testa, the state’s tax commissioner, the ramped up security is in response to increased fraud attempts. The Columbus Dispatch reports that the state foiled $250 million in attempted tax fraud during the 2014 tax season, which is a significant increase over the foiled tax fraud average of $10 million in previous years. Figures of how much fraud went undetected last year or in previous years are not available.

The Tax-Fraud Quiz

If your tax return is flagged as a result of anomalies in reported demographic information then you will have to complete an Identification Confirmation Quiz, according to Testa. If you are selected to take the quiz, you should expect a delay as to when your funds will be dispersed. Traditionally, it takes up to 15 days to process refunds that will be distributed to the taxpayer via electronic deposit. Those who opt to receive their refunds in check form could wait 30 days to receive their money. This year, those who must take the quiz to validate their identities, may have to wait longer than they have in previous years to receive their refunds.

Which Returns Will Be Flagged?

On its website, the ODT says that tax returns will be analyzed for certain inconsistent data points against public and commercial data sources. For example, in the Dispatch article, taxation spokesman Gary Gudmundson said that “names and Social Security numbers that show up in a different part of the state, or in another state, after being located for years in a specific area of Ohio” may be flagged. This means that if you moved this year, your return may flagged as one that has a higher probability of fraud. The next step is to take the quiz to verify your identity. If the return is flagged, the taxpayer will be required to complete the quiz or prove their identity through documentation before the tax return will be processed.

How To Know If Your Return Was Flagged?

The ODT will send a letter to taxpayers who are required to take the identification quiz. Those who don’t receive a letter will not be able to complete the quiz. Those who are selected will have 60 days to complete the multiple choice quiz. The quiz will be timed and it must be completed online. The state agency has provided answers to Frequently Asked Questions about the quiz on its website. You can also view a video tutorial on the Ohio Department of Taxation’s YouTube channel to learn more about the quiz and what to expect if you are selected to participate in this identity theft safeguard.

Contact your financial advisor or seek out a tax professional to help guide you through these security measures. Email Rea & Associates for more information about this and other tax-related concerns.

By Lisa Beamer, CPA (New Philadelphia office)

 

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Take Control Of Your Financial Wellness In 2015

Monday, January 5th, 2015

Are you still looking for the perfect New Year’s resolution? What about challenging yourself with one that could put you financially ahead? Here are 15 ways you can start your year off on the right foot.

15 Tips For A Prosperous 2015

Adjust your 401(k) plan contribution.

If you have a 401(k) plan, your contribution limit will increase to $18,000 in 2015, and if you’re 50 years or older, you can contribute an additional $6,000 into your plan. When it comes to retirement savings, every little bit helps, so even if you can’t afford to contribute the maximum, at least consider increasing your contribution a little bit over what you put into it last year.

Pay off your debt.

Make 2015 the year you pay off all debts. Once you settle past debts, it will be easier to save for future expenses and retirement. For example, do you have credit card debt? Pay off the cards with the highest interest rates first. Once you have caught up, make it your goal to pay any outstanding balance monthly.

Set up a budget and follow it.

Review your monthly income and expenses and allocate money toward savings, debt resolution and other financial goals. Once you have a plan in place, stick to it. Try to set aside some time to review your budget to make sure you are on track.

Build a “rainy day” fund.

Some people say that you should have enough money saved to cover your expenses for at least six months to protect you and your family against unforeseen events that could impact your finances. Don’t let the timeline intimidate you, though. Get your rainy day fund up to one month’s worth of expenses and build from there.

Work with your significant other – not against them.

If you are planning to strengthen your financial foothold in 2015, make sure you have support from your significant other. If you and your significant other are on the same page, then you will have a better chance for success. For example, coming to an agreement on how much you each can spend on unnecessary expenses early on can save unnecessary drama in the future – and costs less than a divorce.

Review your company’s Section 125 plan.

If your employer offers a Cafeteria Plan to its employees, make sure you are aware of what benefit options are available to you and your family and that you taking full advantage of the pretax nature of these benefits. Benefits offered as part of your employer’s Section 125 plan could include health savings accounts, dependent care assistance, adoption assistance, group-term life insurance and others. If you are not sure what benefits are available to you or would like to make sure you are receiving the maximum benefit, set aside some time to speak with your company’s human resources department.

Know your credit score – then improve it.

An excellent credit score is one that is between 760 and 850. If you’re not sure what yours is, request your free copy and find out. Companies such as Experian, Transunion and Equifax will provide you with a free copy of your credit score. Once you know your score, work to increase your rating. This can be done any number of ways, but it takes time and hard work. And don’t be discouraged if you don’t see a massive increase over the next year. Even 20 points is considered a significant improvement.

Set up your will and power of attorney.

Don’t put off this critically important responsibility. If you haven’t already, make it a priority to establish your will and power of attorney as soon as possible. Or if you already have one in place, make sure it is not outdated. Set aside some time to review your current documents with your significant other and update it if needed.

Plan for the inevitable.

If something happens to you, will your family be able to carry on? Meet with your HR department to make sure you are taking full advantage of your life insurance options and disability plan.

Schedule a wellness visit for your mortgage.

When was the last time you reviewed your home mortgage? If it’s been awhile, you should review the interest rate and conditions of your loan. If you have been in your home for a while, you may be surprised to learn that there might be options out there that could save you money.

Organize, organize, organize.

Improving organization is one of the more popular resolutions to make. While you may be eying your closets, garage or basement, I suggest taking a look at your mailbox. Resolve to gather and organize your tax information as it is received. Doing so will ensure that you are not wasting time trying to find a piece of mail you misplaced a month ago and it will help you cut down on random clutter.

Review your retirement plan.

A new year means that you have another birthday on the horizon, which also means that you are another year closer to retirement. Schedule a time to meet with your financial advisor to determine if you should rebalance your portfolio to remain in line with your retirement goals.

Set up a 529 plan.

Are you saving for your children’s or grandchildren’s college education? Set up a 529 plan today and contribute to it early in the year to earn a return all year long. Earnings generated as a result of your contributions are not subject to federal or state taxes when used for qualified education expenses.

Find savings around the home.

If you take a hard look at your reoccurring monthly expenses, you may find that you don’t really need a lot of the services and utilities you are paying for. For example, does your home internet really need to be turbo-charged? Do you ever use the call forwarding or call waiting options on your home phone? Do you use your home phone at all? Are you paying for extra insurance to protect against a gas line leak? Depending on your circumstances, you could find significant savings by cutting back on some utilities you barely use.

Pass on the product warranties.

While it may seem like a good idea to pay a little extra for a warranty on that new appliance, a better option might be to put that money toward your rainy day fund instead. Sure, warranties are great for your peace of mind, but so is your rainy day fund. By opting out of the product warranty you will be able to put more money away while maintaining the freedom to spend it a way that makes more sense in the future.

Do you want this year to be filled with prosperity for you and your family? Email Rea & Associates to get more information on how you can succeed financially in 2015.

By Dave McCarthy, CPA, CSEP (Medina office)

 

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Too Close For Comfort?

Wednesday, December 17th, 2014

 

Tax Provisions Extended Just In Time

They may have waited until the 23rd hour, but members of Congress finally voted to extend more than 50 expired tax provisions slated to expire at the end of the year. Tuesday evening’s 76-16 vote in favor of the extensions was enough to send a collective sigh of relief among tax professionals nationwide. The bill will now be sent to President Barack Obama for his signature. Many tax professionals were worried that Congress would postpone the vote until after the New Year, which could have postponed the start of the 2015 tax season and hurt those on the tax prep front lines, including the IRS, tax preparers and some software providers. But today is a new day and instead of planning for the worst case scenario, tax planning can commence as planned. The Tax Increase Prevention Act of 2014, or H.B. 5771, temporarily extends several tax breaks and provisions while correcting some technical errors found in prior legislation. Including:

  • Extensions that benefit individuals:

-        A $250 above-the-line deduction for certain expenses of teachers

-        An election to deduct state and local sales tax

-        Tax-free charitable distributions from individual retirement accounts (IRAs)

-        The private mortgage insurance (PMI) itemized deduction

-        The energy efficient home improvement tax credit

  • Extensions that benefit businesses:

-        The work opportunity tax credit

-        A research and experimentation credit

-        The Section 179 expensing limit

-        50% bonus depreciation

A complete list of 2014 tax extenders can be found in this article, published by the Journal of Accountancy. Another bill within H.B. 5771 was also up for Congressional consideration – the Achieving a Better Life Experience (ABLE) Act of 2014. The legislation seeks to provide for tax-favored accounts that allow those who are disabled to save money to pay for disability expenses. This portion of the ABLE Act amends the definition of personal holding company income, institutes certain inflation adjustments and, for employment tax purposes, allows for certified professional employer organizations to be treated as employers for work-site employees who perform services for customers of the organization. The Tax Increase Prevention Act of 2014 is by no means a long-term fix. There were earlier proposals that sought to permanently extend some provisions while extending others for more than a year, but those suggestions were unable to find traction throughout the legislature. So, while we may be able to relax this year, we will likely have bouts of Déjà vu over the course of 2015. By Lisa Beamer, CPA (New Philadelphia office)

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Put Your Property Easement Agreement To Work

Tuesday, December 16th, 2014

The shale oil and gas play has spurred a significant amount of pipeline and infrastructure activity throughout certain areas of the United States. As a result, many landowners are now being approached by landmen armed with cash offers and easement agreements in the hopes of acquiring the right to use your property to process and transport oil and gas related products. Before you sign on that dotted line, be sure to seek advice from someone well versed in the complexities of property easements.

Be An Informed Property Owner

You probably want to keep as much money in your bank account as possible. So when it comes to paying your taxes, you probably have no intention of giving the government more than its fair share, right? Did you know that when you enter into certain agreements, such as land easements, you may be able to dictate the type of tax treatment your income receives? The trick is to fully understand the tax consequences of language in the agreement.

The tax treatment of a land easement typically is determined (at least in part) by the easement agreement itself. The easement language will either determine if the agreement is for a permanent (or perpetual) easement period, which is exclusive in nature; or if it’s a temporary easement, which will be effective for a finite period of time.

Understand Your Options

If you enter into a permanent easement agreement, the taxable part of the transaction could qualify for capital gains, which may result in an opportunity to save some money during tax season. If you are able to apply the capital gains tax treatment to the income generated from the land easement contract, as opposed to the ordinary income tax rate, you could stand to see your tax rate that is applied to this income drop by almost half.

  • Capital Gains tax rate = 20 percent
  • Regular Income tax rate = 39.6 percent

On the other hand, if you are looking for another option, which could eliminate current payment of tax all together (defer the tax consequence into the future), you might consider the like-kind exchange tax planning strategy. Like-kind exchange rules require the property that is exchanged and the property that is acquired to be held for productive use or investment purposes.

Agreements that receive like-kind treatment under U.S. Code 1031 may result in the deferral of your taxes being due until well into the future or until you dispose of the property acquired in the like-kind exchange. For this to work, the easement agreement must be considered perpetual or permanent and must also involve real estate that is used as part of your trade or business or that is being held for investment purposes.

Don’t Disqualify Yourself

While the thought of exchanging your land easement for other real estate while deferring your taxes may seem attractive, the process of entering into, and maintaining, a like-kind exchange is very complex and must be strictly adhered to. In other words, you will need to seek out help to navigate the waters. If you would like to see if you qualify for a like-kind exchange, email Rea & Associatesfor more information. And remember to always consult your current financial advisor or another professional well versed in like-kind exchange taxation, before signing any land easement contract. Failure to do so may disqualify you from favorable like-kind exchange treatment.

By Jim Fracker, CPA (Zanesville office)

 

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Should I Make a Big Purchase to Cut Taxes?

Tuesday, December 16th, 2014

This is a hectic time for business owners who are working to close their books on the previous year while strategically planning for the year ahead. For me, this is the time of year I find myself frequently fielding questions from clients who want to know if buying equipment will help them keep their taxes down.

Unfortunately, without the proper information, any answer I could provide would be about as useless as seeking business advice from a Magic 8-Ball. Fortunately, the answer really isn’t difficult to find, especially if you have a well-maintained balance sheet.

To determine whether purchasing equipment would be beneficial to your business from a tax perspective, I have to know what your profit looks like. And while it may be easy to pull out your profit and loss statement to find the answer, I would encourage you to take a look at your balance sheet as well. It’s capable of painting a detailed picture of your business and is a great tool that can help you make sound financial decisions for your business.

Before you make any decisions that could impact your business’s financial stability, make sure these six items on your balance sheet are accurate.

  • Cash Reconciliation
    • Check to make sure that all cash has been reconciled and make special note of checks that have remained uncashed for an extended period of time.
    • Verify that all checks – incoming and outgoing – have been recorded, and their status tracked.
  • Collectability of accounts receivable
    • Does your business currently have any bad debts? If so, have you taken the necessary actions to determine that the account in question is uncollectable?
    • Once an account is uncollectable, take the steps needed to prove that determination and receive the benefit from it.
  • Accurate Inventory
    • The end of the year is an ideal time to take a physical inventory.
    • An inaccurate inventory can greatly impact your profit – not to mention your ability to properly manage your resources.
  • New/Disposed Fixed Assets
    • Be sure to add all new assets (equipment, fixtures, etc.) to the correct accounts. Don’t let them become buried in your purchases.
    • If you are planning to sell your company in the next 5-10 years, it is extremely important to keep an accurate record of your assets because they can help determine your asking/selling price.
  •  Liabilities
    • Keep a current record of all your liabilities and update it regularly to maintain accuracy.
    • Make sure that all debts are tracked and recorded.
  • Member Draws
    • Check to make sure that your member withdrawal account is accurate. If there are any expenses you expected to see but didn’t, investigate and find out why.
    • If after year end you happen to find personal expenses that were in regular expenses, your profit increases and so do your taxes.

Your company’s profit is not just a number. Your profit is determined by a wide range of factors – and these are just a few. If you are really want to lower your taxes, make sure your bookkeeping is accurate before developing a plan.

Email Rea & Associates to discover more ways to increase your business’s profitability.

By Joel Yoder, CPA (Millersburg office)

 

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The Tax Professional’s Christmas List

Friday, December 12th, 2014

Move Over Santa, This One’s For Congress

While the holidays typically bring about feelings of joy and comfort, they can also be a time of stress. And as the year comes to a close, many individuals are left to frantically resolve a number of tasks that they had hoped would be completed before the end of 2014 – yet they are still lingering on their to-do lists.

If tax professionals across the country were to compose a letter this holiday season, it wouldn’t be sent to Santa. Instead, it would pass over the North Pole en route to Washington D.C. – and it would be addressed to the members of the United States Congress.

This year, all we want for Christmas is for our congressional leaders to extend the more than 50 tax provisions that were left to expire at the end of 2013 – before the end of the year. Failure to do so could have a negative impact on the 2015 tax season.

While it is possible for Congress to wait until the New Year to enact these provisions next month, a retroactive approach would ultimately hurt the IRS, tax professionals and software providers. This is why it is so important for the provisions to be extended before Dec. 31.

Furthermore, postponing this legislative action could postpone the start of the 2015 tax season, which would delay refunds to millions of American taxpayers.

What tax provisions are at risk?

Individual tax payers are at risk of losing:

  • A $250 above-the-line tuition deduction
  • An election to deduct state and local sales tax
  • Tax-free charitable distributions from individual retirement accounts (IRAs)
  • The private mortgage insurance (PMI) itemized deduction
  • The energy efficient home improvement tax credit

Popular business tax benefits at risk of disappearing include:

  • The work opportunity tax credit
  • A research credit
  • The Section 179 expensing limit
  • Bonus depreciation

This holiday season, it is our hope that Congress will move quickly to resolve this issue in a way that is favorable for American tax payers. Doing so would not only provide the IRS and tax professionals with the time they need to prepare for the 2015 tax season; such legislative action would help promote the financial wellbeing of the American taxpayers.

Would you like to discuss tax planning options for yourself or your business? Email Rea & Associates to speak with a tax professional today. Will you want help filing your 2014 business taxes and/or personal taxes? Would you like a little extra help preparing for the 2015 tax season, our tax experts will work with you to make your experience as worry-free and seamless as possible.

By Lisa Beamer, CPA (New Philadelphia office)

 

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New Year, New Mileage Rates

Thursday, December 11th, 2014

Every mile you drive for business will be worth a little more next year, according to a recent IRS announcement. Beginning Jan. 1, 2015, the optional standard mileage rate for those calculating the deductible costs of driving for business will be 57.5 cents, which is up from 56 cents.

Based on a study of the fixed and variable costs associated with operating an automobile, the standard mileage rates take into consideration vehicle depreciation, insurance, repairs, maintenance, gas, etc. However, if you don’t intend on tracking your mileage, you also have the option of claiming deductions based on the actual costs of using your own vehicle rather than the standard mileage rates. Just be aware that you will not be allowed to claim both.

For example, if you have plans of claiming an accelerated depreciation on your vehicle, then you will not be able to claim the business standard mileage rate as well. If you are a business owner, you should also note that the standard rate is not available to fleet owners, or those who use more than four vehicles simultaneously. Additional details and rules can be found in Revenue Procedure 2010-51.

While the standard mileage rate for the business miles you drive will increase in 2015, those who use their vehicles for medical or moving purposes will see a reduction of half a cent in their mileage rates. Starting Jan. 1, the miles you drive for medical or moving purposes will be calculated at 23 cents per mile driven. And those driving their vehicles as a service to charitable organizations may calculate their deductions at 14 cents per mile driven.

Also in its announcement, the IRS noted an adjustment to the standard automobile cost allowable under the fixed and variable rate (FAVR) plan, which considers the costs taxpayers incur by driving their own vehicles for work-related purposes. In 2015, standard automobile costs may not exceed $28,200 or $30,800 for trucks and vans.

Do you use your vehicle for business? Make sure you track of your mileage. Every mile you travel is an opportunity to realize real tax savings. Our expert financial advisors can help professionals like you find opportunities you never even knew existed. Email Rea & Associates today and start the New Year out right.

By Lesley Mast, CPA (Wooster office)

 

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Employers Must File Taxes, Make Payments Electronically

Tuesday, December 2nd, 2014

Starting this January, employers filing in the state of Ohio will be required to use the Ohio Business Gateway (OBG) to file and remit payment for state and school district income tax withholding returns, according to the Ohio Department of Taxation. The new rule was finalized earlier this month and will go into effect on Jan. 1, 2015. The OBG Electronic Filing system was established to save Ohio time and money by simplifying business’ relationships with government agencies while providing them with an easier means to comply with regulatory requirements.  However, it is understood that some employers may not be able to use the electronic filing system at this time, which prompted the department to allow some preparers to opt out of the requirement if they can establish a valid reason for why they are unable to comply. To opt out of the department’s new rule, employers must provide the department with the following information on form WT OOR, including their:

  • Business name
  • Address
  • Phone number
  • Employer withholding number and Federal Employer Identification Number (FEIN)
  • Withholding type
  • Detailed reason for the request to be excluded from electronic filing and payment provisions.

“Preparers seeking to opt out of electronic filing must present strongly compelling reasons to justify the waiver of the requirement,” the department states in the Frequently Asked Questions page of its website. “Preparers filing tax returns with the state of Ohio should plan to comply with the electronic filing mandate and not assume that their request to opt out will be granted.” Anyone may apply to be excused from the electronic filing requirement and permitted to file their return by non-electronic means. However, if approval is given, it is only valid for one year. Preparers are required to resubmit their requests annually. The opt out request form can be found on the “Forms” portal of the department’s website or by calling 888.405.4039 – option 1. Otherwise, you can register or log in to use the Ohio Business Gateway, click here. Additional assistance with navigation, filing a return and/or remitting payment, can be found by visiting the Self Help eLibrary. Email Rea & Associates to learn how you can stay in compliance with these new filing requirements and lessen the stress of filing and paying your state and school district withholding returns.

By Lisa Beamer, CPA (New Philadelphia office)

 

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