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W-2 AND FORM 1099 FILING DEADLINE IS JANUARY 31ST 2019.

Posted on January 9, 2019 at 5:47 PM Comments comments (2)

W-2 AND FORM 1099 FILING DEADLINE IS JANUARY 31ST 2019; Employers & Business Owners Take Note. 

Happy New Year. This is to remind All Business Owners/ Employers that the Deadline for filing W-2 and Form 1099 Tax Report with the IRS is January 31st, 2019. This means that you need to ensure that your Employees and 1099 Contractors receive and review their W-2 and 1099s before January 31st, 2019.

It is important to remember that this Act is from The Protecting Americans from Tax Hikes (PATH) Act of 2015 that was passed by Congress in 2015 and became effective since 2016. We had published a Detailed Article on this - 
https://www.linkedin.com/…/new-w-2-deadline-2017-business-…/

By this New Act, Employers and Small Businesses have January 31st Filing Deadline to submit Forms W-2 and W-3 to the Social Security Administration (Whether you file using Paper Forms or electronically). This New Date also applies to certain Forms 1099-MISC reporting Non-Employee Compensation such as Payments to Independent Contractors. As a Result of this, the filing deadline for filing W-2s and 1099 forms (including Form 1099-MISC) is Every January 31st. 

Note to Employers: It is important that Employers become adequately prepared to complete the Year-End Tasks. This means: 
• Ensuring that All Independent Contractors fill out a Correct and Updated Form W-9.
• Verifying Accuracy of Employee Information.
• Reporting/Submitting Any Year-End Adjustments as soon as possible.
• Reviewing Year-End Totals for any Discrepancies. There are penalties for Failure to file these Returns or Furnish Correct Statements and these Penalties are not palatable. 

The Penalty amounts are reflected below:
• $50/Return –   If you file after 30 Days of the Due Date.
• $100/Return – If you file more than 30 days after the Due Date.
• $260/Return – If you do not file corrections or Do not file Required Forms. 

 At Rosyan Bookkeeping Services, We are committed to helping you with your W-2s, W-3s and 1099 Filings, as well as furnishing you with helpful information regarding your Tax Filings.

Feel Free to Call and Let us know how we can help you.

RENEW YOUR ITINS.

Posted on August 17, 2018 at 5:36 PM Comments comments (5)






















More than 2 Million Individual Tax Payer Identification Numbers( ITINs) are set to expire at the end of 2018.

* Tax Payers whose ITIN is expiring and needs to file a Tax Return in 2019 must submit a Renewal Application.

* ITINs that are affected are the ones with the middle digits 73,74,75, 76, 77, 81 or 82. ( For Example: 9NN-73-NNNN) needs to be renewed even if the Tax Payer has used it in the last 3 Years. 

*ITINS with middle digits of 70,71,72,78,79 or 80 have previously expired. Tax Payers with these ITINs can still renew at anytime.

* Acting Now to renew ITIN Numbers will help Taxpayers avoid delays, that could affect their Tax Filing and Refunds in 2019.

* As a Reminder, the IRS no longer accepts passports that do not have a Date of Entry into the US as a Stand Alone Identification Document for dependents from a country other than Canada, Mexico or dependents of US Military Personnel Overseas.

* The Dependents passports must have a Date of Entry Stamp, otherwise Additional Documents to prove US Residency will be required.


Read on and Be Enlightened. Feel Free to Share.

Tax Season is Still On.

Posted on February 19, 2018 at 11:55 PM Comments comments (3)
  

Do you have all your required Tax Filing Documents?

* Form W2

* Form 1099 - MISC (If you are a Contractor or Independent Employee)

* Form 1099 - G (To show Payment received from Government Agencies, Unemployment Benefits, Alimony, Child Support).

* Form 1095 - To show that you are enrolled in a Qualified Health Plan, which will allow you to get your Premium Tax Credit).

* Form 1098 - To show Payment Received from Interest (Interest Income).

* Profit & Loss Financial Statements (If you are a Business Entity or Corporation)

* Property Taxes paid on Principal Properties.

*Charitable Contribution Statements.( To show Tithes, Offerings and Donations given to Religious Organization)

* All Receipts of Purchases Made during the 2017 Year. 


Additional Forms, that you may receive:

a) 1099- INT - To Show Payments received on Interest.

b) 1099- DIV - To Show Payments received on Dividends.

c) 1099- R - To show Pensions and Payouts from Individual Retirements Accounts.

d) 1099-B - To show Broker Transactions and Barter Exchanges.

e) 1099-S - To show Real Estate Transactions.


Businesses may not like sending out Forms 109, but they are required by law to send them out. There are also penalties for failing to issue these Forms. No one wants trouble from the IRS.

Generally, Businesses must issue these forms to any Payee (Other than a Corporation), that receives $600 or more during the financial Year. This is the basic threshold.

Do you need more clarification on any of these Required Documents? Feel Free to reach out to us and we will educate you more, help you reduce your Tax Liabilities and guarantee your Maximum Tax Refund.

 

W-2 and Form 1099 Form Tax Report Deadline for 2018.

Posted on December 18, 2017 at 7:15 PM Comments comments (5)


W-2 Form; 1099 Form Filing.

As the Year is coming to an end and Tax Season is drawing closer, it is important to remember The Protecting Americans from Tax Hikes (PATH) Act of 2015 that was passed by Congress in 2015, which became effective last year. We had published a Detailed Article - https://www.linkedin.com/pulse/new-w-2-deadline-2017-business-owners-employers-take-note/

With this New Act, Employers and Small Businesses have January 31 Filing Deadline to submit Forms W-2 and W-3 to the Social Security Administration (Whether you file using Paper Forms or electronically). This New Date also applies to certain Forms 1099-MISC reporting Non-Employee Compensation such as Payments to Independent Contractors.

As a Result of this, the filing deadline for 2017 W-2s and 1099 forms (including Form 1099-MISC) is January 31, 2018. The deadline for providing W-2 forms to employees and 1099-MISC forms to Independent Contractors for 2017 has not changed. This deadline is still January 31, 2018. 

Note to Employers: It is important that Employers become adequately prepared to complete the Year-End Tasks. This means:

  • Ensuring that All Independent Contractors fill out a Correct and Updated Form W-9.
  • Verifying Accuracy of Employee Information.
  • Reporting/Submitting Any Year-End Adjustments as soon as possible.
  • Reviewing Year-End Totals for any Discrepancies.

Please remember, that Extension of Time to file these Forms is no longer automatic. You can only request for One 30- Day Extension and this extension is NOT AUTOMATIC. You will have to submit a complete application on Form 8809, Application for Extension of Time to File Information Returns. This Form should be completed as soon as you notice that as Extension is necessary, but no later than JANUARY 31.

This Extension does not affect extensions of Time to furnish Forms W-2 and Forms 1099 to your Employees and Independent Contractors.
There are penalties for Failure to file these Returns or Furnish Correct Statements and these Penalties are not palatable. 
 
The Penalty amounts shown below apply for filings due after December 31, 2017:

  •  $50/Return – If you file within 30 Days of the Due Date.
  •  $100/Return – If you file more than 30 days after the Due Date but by  August 1.
  •  $260/Return – If you file after August 1, do not file corrections or do not file Required Forms.

 
The IRS urges Tax Payers to still plan to file their Returns as they normally would do, but prepare to exercise some patience, as we have noticed that these changes have brought some delays in getting Tax Refunds. The Refund Delay is an added way to help the IRS combat Tax Fraud by beefing up its effort to authenticate Tax Payer Filings.

 At Rosyan Bookkeeping Services, We are committed to helping you with your W-2s, W-3s and 1099 Filings, as well as furnishing you with helpful information regarding your Tax Filings. Let us know how we can help you.

 The IRS issued technical guidance detailing this information in https://www.irs.gov/pub/irs-pdf/iw2w3.pdf

Tax Credits & Tax Deductions.

Posted on April 6, 2017 at 10:42 AM Comments comments (2)
 We have only Few Days left to the end of Tax Season; Many of Our Clients ask if a Tax Credit is better than a Deduction. Just to enlighten us, A Tax Credit is a Dollar -For-Dollar Reduction of the Taxes you owe; For instance, A $100 Credit means you pay $100 less in Taxes.

  A Deduction reduces the Taxes, you owe by a Percent of every Dollar, you're allowed to deduct. You Calculate the worth of your Deduction by multiplying your marginal (Or Top) Tax Rate by the amount of the deduction. If you're in the 25% Tax Bracket, a $100 Deduction means you will pay $25 less in Taxes (0.25 times $100).

 Need More Clarification on Getting the Best of your Tax Deduction and Credits? Contact Us Today and We will be Glad to help you out.

Lowering Your Tax Bill For 2017 ( Day 4)

Posted on December 30, 2016 at 11:22 PM Comments comments (4)
YES, 2017 is just Few Hours away......The Clock is Ticking. We can still chip in One more Challenge to lower Our Tax Bill before the Year Ends. And this is......

 Further Your Education 
Do you know that if you take a Course to advance your Career or build your Business, It can be used as a Tax Deduction? If you are enrolled or taking classes at an eligible educational institution, you might qualify for the Lifetime Learning Credit(LLC).
More so, If you or your Child is already in college or a Trade School, You can get up to $2,500 per student for the Year. So make sure you have paid college expenses before the end of the year to qualify for 2016.

You should be able to claim the credit again next year, if the individual is still a student. In fact, you can claim the credit on up to three students a year, for a total of $7,500 in credits.
Also, If you are done with College and paying Student Loan interest, you can deduct some or all of it, so make sure you are up to date paying off your loans. Either Parents or Students can claim this deduction, depending on the Payments.With this Advice, This is a Great time to enroll in a College or Trade School, so that you can still claim this in subsequent Tax Returns.

Here is wishing you a Happy, Healthy, Prosperous and Tax- Savvy New Year.

Lowering Your Tax Bill For 2017( Day 1)

Posted on December 21, 2016 at 12:47 AM Comments comments (1)
                                                     
                               

The Year 2016 is fast coming to an end; As we Close out the Year, We would like to thank all our Clients, Customers and Fans for your Business and Referrals. We look forward to your continued patronage in 2017; As the Year comes to a Close, So does the period for Tax Planning. 
For Each Remaining Day of the Year, We would share some Tax-Saving Strategies to consider before the Year 2016 closes Out. 

CLUE 1: Make Charitable Contributions - Charitable Donations are an easy way to get a Tax Deduction; The Most Obvious way to make a Donation is to write a Check to your local Church or Non- Profit Organizations. At the End of the Year, the Organization would give you a record of all the Donations, you have been making for the year and you can use this to make your Claims. Both Ways, you are giving to God ( A worthy cause) as well as lowering your Tax Bill.

According to the IRS, A Donor claiming a deduction of $250 or more is required to obtain and keep a written acknowledgement for a charitable contribution, so be sure to get a donation receipt. It's also a good idea to take a picture of your Contribution, just as a Back-up.

Also , making a Donation with your credit card this month means you don't have to pay it off until January- and you still get the deduction.  BeSure to check out our website each day till the End of 2016 for more updates on how to lower your Tax Bill. #loweryourTaxBill

Top 10 Overlooked Tax Deductions.

Posted on March 16, 2016 at 10:11 AM Comments comments (7)
 Every Year, Business Owners across the Nation sit down with their Tax Accountants to come up with as many Legal Tax Deductions as possible. As a Business Owner, knowing which Business Tax Deductions that you qualify for can help:
  • Reduce Your Income Tax Liability.
  • Enhance the efficiency of your Business Operation.
  • Improve your Overall Financial Well Being
  • Prevent Overstating your Income/Profit.
  • Eliminate you from being a Target of an IRS Audit.                                                                                                                                    
 It is unfortunate that many Business Tax Deductions are misunderstood and underutilized. Some Business Owners make the mistake of claiming the wrong deductions or claiming the wrong amounts. Most Business Owners overlook the most important Deductions that can help reduce their Tax Liability. As you file your Taxes this Year, We have compiled the Top 10 Overlooked Tax Deductions that most Business Owners ignore during Tax Period. Our Aim us to help you remember to claim these deductions as you file your Taxes.

1.     Software: A Software Deduction is more than the traditional idea of Software in a Box or Download. If you use any Cloud Based Tools such as Online Accounting Software or Other Productivity Tools, your Subscription Fees are deductible as well as these Software- as- a- service (SaaS) options. 
 
2.     Education: Did you spend money to attend a Trade Show, Industry Seminar, Training or Conference relating to your Business or Career in the Past Year? Did you Buy Books, CDs or Online Tutorials related to your Business? These Tools help you get smarter at running your Business and are all Tax Deductible. 
 
3.     Licensing & Regulatory Fees:  Do you know that the Regulatory and License Fees that you pay each year to keep your Business Operating and in Good Standing are Tax Deductible? 
 
4.     Bad Debts: When a Client owes you money and they are not paying their Bills, It is possible to deduct the Uncollectible Bad Debt from your Taxable Income. 
 
5.     Student Loan Interest: Student Loan Interest is a Tax Deduction that is commonly missed. If you have Student Loan Debt and you are still paying for it- Either for yourself or for your Children, you have to ensure that the Loan Interest is deducted for Tax Purposes .Note: The Person who gets to deduct the Loan Interest is the person who is legally obligated to pay back the Loan. This means that if the Loan is under your Name, you can take the Tax Deduction; If the Loan is under your Adult Child's Name, then your Child will be the one to claim the deduction on their Tax Return. 
 
6.     Medical Costs: These include Health Insurance Premiums, Dental Care, Glasses, Counselling, Therapy and Miles driven to Medical Appointments. Weight- Loss Programs are also deductible if undertaken as treatment for a Disease diagnosed by a Physician.
 
7.     Retirement Plan Expenses: Whether you are a Solo Entrepreneur or Business Owner with many Employees, Any Contribution (up to a certain limit each year) made to a Qualified Tax-advantaged Retirement Plans such as SEP IRA, SIMPLE IRA, 401(K) or Other Retirement Accounts are Deductible. It is important to note that some People with IRAs miss the opportunity to contribute to their Plan and don't realize that it's a deduction that does not need to be funded by December 31st of the Tax Year. Tax Payers have until April 14th of every following Year to fund their IRAs. 
 
8.     Depreciation: Depreciation can mean large Tax Savings for most Business Owners and is usually complex enough to intimidate or confuse many Business Owners. Certain Fixed   Assets Purchases that you buy for your Business cannot have the entire cost deducted in the same year that you purchase it, instead you need to spread the cost across a few Tax Years and deduct part of it each year. 
 
9.     Business Transportation (Vehicle Mileage & Maintenance) : Using your Personal  Vehicle or Business Owned Vehicle for Business Related Travel allows you to deduct the  Value of Depreciation on the Vehicle's Value by deducting your mileage with the IRS   standard mileage rate per mile of Business Travel, or ( If the Number is  Greater) by  deducting the Total Value of Gas and Maintenance on the Vehicle. 
 
10.  Charitable Contributions & Non-Cash Charitable Donations: The IRS likes to encourage and reward People who donate and volunteer for charitable causes. Any Money that you give to a Tax- Exempt Charitable Organization can be deducted from your Taxable Income. You can also deduct certain out - of - pocket expenses incurred while volunteering for a charitable organization. Deducting a Cash Contribution to a Charity is easy, but too often People don't accurately value Non- Cash Contributions such as Clothes. You will have to determine the fair market value.  

 It is important to take note of these overlooked Tax Deductions and remember to list them during your Tax Filing. It has been reported that Most Business Owners give lots of extra money to the IRS due to lack of record keeping of these overlooked Deductions. This is why it is compulsory to keep accurate record of all your Expenses during the Year and have them categorized properly, so that you can reduce your Tax Liability to the minimum.

 We know that the Tax Filing Season is not fun and will like to take the stress off you, so that you can concentrate on  building your Business, If you have not been keeping accurate records of your Income and Expenses, We are available to help you. Please Free to give us a Call on 202.422.4586. You will be glad you did.

To your Business Success,

Rosemary Anyanwu, CFE.
Certified QuickBooks ProAdvisor, Professional Bookkeeper & Accountant.
Rosyan Bookkeeping Services.




 

Getting Ready for Year End Accounting.

Posted on December 22, 2015 at 10:49 AM Comments comments (5)

Merry Christmas and A Prosperous New Year 2016 to all our Current and Prospective Clients. We want our Clients and Fans to know that we appreciate them and continually look forward to a great working relationship. The Year is almost coming to an end and It's a Busy Season for everyone. As you make your Holiday Plans, Remember to close your Books and Accounting Records for the Year 2015.
We have listed some Tips to help you close the year properly, so that you can make great plans for the upcoming year:


  • Evaluate Your Accounting System: This is the time to start searching for a good Accounting System for the Year 2016. If you are the technology savvy person, who prefers High-tech financial management tools like Digital Vaults, Smartphone Apps, QuickBooks or Peach Tree, you will need to evaluate your system to confirm if it has worked for you. If you are the Old School of thought that prefers the Shoe Box, Envelopes and Spreadsheet System, you also need to evaluate this to see how it has improved your Accounting System. If you cannot truly attest to the effectiveness of the Accounting System that you are using presently, This is the best time to consider switching to a more effective Accounting System.

 

  • Review Your Sub Contractor Data: Every Organization needs to confirm if they have paid anyone for services more than $600 during any given year; If you have, You are required to send a Form 1099 to the recipient by January 31st of every year. You have to ensure that the Subcontractor completed the information on the Form W-9 issued, at the inception of the Contract. Your Bookkeeper needs to update the 1099 Detail Reports and reconcile the amount paid during the year with the amount in the Books.

 

  • Reconcile your Expense Account Data: This is the best time to ensure that you look at your expense data and accept all reimbursement checks prior to December 31st. This will ensure that your Company will receive Tax Deductions for all the Business Expenses being claimed. You also need to ensure that you have all your Receipts Handy and properly filed.

 

  • Evaluate your Financial Standing: This is the best time to review your Profit & Loss Statements, Balance Sheets and general Ledger to ensure Accuracy and to make sure that all transactions have been recorded, so that you can get your Tax Deductions. Examples of Transactions to watch out for are as follows:

          1) Ensure that the Bank and Credit Card Accounts have been reconciled.
          2) Ensure that the Loan Interest has been separated from the Principal Amount and is accurately entered into your Books.
          3) Check for the Accuracy of Accounts Receivable and Accounts Payable.
          4) Write Off Bad Debts for Customers who are Noncollectable.



  • Make a Charitable Giving Budget Calendar: Charitable Gifts are some of the easiest Expenses to overlook, when it comes to itemizing Deductions. During the Year EndGifts and Donations to Thrift Stores are easily forgotten. You can use this Holiday Season to make your Donations to your Chosen Organizations, so that you are sure of claiming them for the Upcoming Tax Season.

 

  • Review Your Personal Expenses: If your Business entity is a Sole Proprietorship or Partnership, then it's time to ensure that your Personal Expense is not co-mingled with your Business Expenses. You will have to get your Receipts and Cancelled Checks and record these expenses to your Company's Books. Many Tax Payers have ended up paying extra taxes needlessly because they overlooked Business Expenses paid from Personal Funds. 

 

  •  Re-evaluate your Retirement Plan: This is the time to find out if you are putting away enough money for your Retirement. Maxing out a SEP Plan or taking advantage of an Employer match can be your best option. The IRS limits on Tax deductible IRA Contributions can change just as the benefits an Employer provides changes. You have to find out if you are putting away enough to offset your Tax Burden.

 

  • Prepare an Income Projection: Most Organizations prepare income projections to gauge their income and expenses during the mid-year and year end; It's actually advisable to take stock every Quarter, Half Year and Year End. The Projection looks at your Cash Flow, Estimated Taxes for the Self - Employed, Stock Options, Bonuses and other things impacting your Income. This is necessary especially if your Profit increased substantially during the year, your Bookkeeper/Accountant will help you prepare and analyze your Books to see where you need to reduce your taxable income by implementing some last minute strategies. 

 

  •  Take your Bookkeeper to Lunch: Everyone knows that all Bookkeepers and Accountants are always busy starting from the Month of January through April of every year; We all have these Last - minute Questions, which we all need answers to at the last minute. Now is the Time to get them answered. Try to set up an appointment with your Bookkeeper/ Accountant, to find out what you can do better next year to help reduce your Tax Burdens. If putting together your information was challenging for your Bookkeeper/Accountant, Try to make the meeting over a meal or another token of appreciation. Otherwise if you have a less- than - ideal experience with your current Bookkeeper/Accountant, This is an ideal time to shop around for one that is a better fit. 

   Another Tax Season is about to start; Filing your Taxes will probably never be fun, but being proactive when you are not under a Deadline can help ease some of the burden and save you time and frustration when April Comes around. If you need help with getting your Books ready for Taxes, We are available to help you. Please Free to give us a Call on 202.422.4586. You will be glad you did.


Have you Filed your Taxes Yet?

Posted on April 4, 2015 at 5:17 PM Comments comments (8)

 It's the month of April and We're counting down to the final days of Tax Time. Have you filed your Taxes yet? Do you know that you have a few days left, to file your Taxes?  Here are some quick ideas, to help you organize and get your documents ready for Tax Filing:

  • Organize All your Income Statements - Get all your W-2s, 1099s , 1098s and 1095- A's( I spoke about this document in my earlier blog). Make a Checklist to ensure that none of these document is missing.

  • Organize your Auto Log - You have to ensure that, you have all the necessary logs to support your Business miles, moving miles, medical miles and charitable miles driven by you in the Year 2014.Gather all the logs and ensure that they are all added up together and totaled.

  • Coordinate your Deductions - If you and someone else share a dependent, you will need to confirm, that you are both on the same page, as to who will claim the dependent. This is true for Single Tax Payers, Divorced Taxpayers, Taxpayers with elderly parents/Grandparents, and Parents with Older Children.

  • Review all other Financial Information - Review other parts of your financial life for possible organization and updates. This includes Insurance, Investments, Legal Documents, Safety Plans, Identity Theft Protection , Credit Scores, Retirement Planning, Retuirement Account Contributions and your Home's Annual Budget.

  • Collect all your Receipts and Sort them - You can make use of your previous year's Tax Return, and begin to gather and sort your necessary Tax Records. Sort your Tax Records to match the items on your Tax Return.

  • Review and Update your Withholdings - Make a Quick Review of your W-2 and decide if now is the time to have your Employer update your withholding amounts. A second check might be needed, after you file your Taxes.

       Here is a list of the common Tax Records, that we all need to have, for an effective Tax Filing:

             1. Informational Tax Forms( W-2, 1099, 1098, 1095-A, Plus Others) that disclose Wages, Interest Income, Dividends and Capital Gain/Loss Activity.

             2.  Other Forms, that disclose Possible Income ( Jury Duty, Unemployment, IRA    Distributions and Similar Items).

            3.   Business K-1 Forms


            4.  Bank and Investment Statements


            5.  Mortgage Interest Statements.


           6. Business Expenses.


           7. Property Tax Statements.


          8.  Mileage Logs for Business, Moving, Medical and Charitable Giving.


          9.  Medical, Dental and Vision Expenses.


         10. Tuition Paid Statements.


         11. Records of Any Asset Purchases and Sales.


         12.  Health Insurance Records( Including Medicare and Medicaid).


         13. Charitable Receipts and Documentation.


        14. Social Security Records.


        15. Credit Card Statements.


        16. Records of Any Out of State Purchases, that may require Sales Tax.


        17. Records of Any Estimated Tax Payments.


        18.  Contribution Records


        19. Educational Expenses( Including Student Loan Interest Expenses).


        20. Casualty and Theft Loss Documentation.


        21.  Moving Expenses.


       22.  Home Sales Records.

    If you are not sure whether any of your Documents are important for Tax Purposes, Retain the Documentation. It is better to save unnecessary documentation , than regret that you did not present the document to support your Tax Deductions.
 
   If you need assistance in organizing your Documents and getting them ready for Tax Purposes, as well as setting up your record keeping system, so that you don't miss any Tax Deductions, Feel Free to call us on 202.422.4586 to help you out.


   You will be glad you did.