​It's well known that a home can be a valuable source of tax deductions while you own the place and a six-figure tax exclusion when you sell. But did you know you can reap tax benefits on both land and water? If you're a boat owner, you may be in line for the following tax breaks:

• Mortgage interest: You may not think of your boat as a home, but you can claim mortgage interest deductions (within the allowable limits) for one qualified residence besides your principal residence. A boat meets the requirements if it has a galley, sleeping quarters and a head. But you can't just dump a cot or sleeping bag on deck.

• Sales tax: Depending on your situation, deducting sales tax instead of state income taxes might be more beneficial. You can choose to use a simplified IRS table in lieu of tracking actual sales tax expenses, and then add the sales tax for a boat to the table amount to increase the deduction. Be careful with your calculation - the deduction for state and local income taxes (SALT) caps at $10,000.

• Rental property: Just like a building, you may rent out your boat for fishing or sightseeing excursions. The basic tax rules for vacation home rentals apply. Typically, you may deduct related expenses like maintenance costs, fuel and supplies, plus depreciation. Keep in mind that a loss may not be available if you use the boat personally for more than 14 days.

• Charitable donations: If you're upgrading or have lost your passion for boating, you can donate your boat to charity. Generally, the deduction is based on the fair market value (FMV) on the donation date, if certain conditions are met. You can find out the FMV for your boat, based on its condition, from an online guide. Or better yet, have it appraised.

Call today with tax savings questions about your boat.

"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Tax Rates, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

​Federal law requires a person to report cash transactions of more than $10,000 to the IRS. Here are some facts about reporting these payments.

Who’s covered
For purposes of cash payments, a “person” is defined as an individual, company, corporation, partnership, association, trust or estate. For example:

• Dealers of jewelry, furniture, boats, aircraft, automobiles, art, rugs and antiques
• Pawnbrokers
• Attorneys
• Real estate brokers
• Insurance companies
• Travel agencies

How to report
People report the payment by filing Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.

A person can file Form 8300 electronically using the Financial Crimes Enforcement Network’s BSA E-Filing System. E-filing is free, quick and secure. Filers will receive an electronic acknowledgement of each form they file. Those who prefer to mail Form 8300 can send it to the IRS at the address listed on the form.

What’s cash
Cash includes coins and currency of the United States or any foreign country. For some transactions, it’s also a cashier’s check, bank draft, traveler’s check or money order with a face amount of $10,000 or less.

A person must report cash of more than $10,000 they received:

• In one lump sum
• In two or more related payments within 24 hours
• As part of a single transaction within 12 months
• As part of two or more related transactions within 12 months

When to file
A person must file Form 8300 within 15 days after the date they received the cash. If they receive payments toward a single transaction or two or more related transactions, they file when the total amount paid exceeds $10,000.

More information:
Publication 1544, Reporting Cash Payments of Over $10,000
IRS Form 8300 Reference Guide
Guidance for the Insurance Industry on Filing Form 8300
Form 8300 and Reporting Cash Payments of Over $10,000
Fact sheet: Cash payment report helps government combat money laundering

"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Tax Rates, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

From renting spare rooms and vacation homes to car rides or using a bike…name a service and it’s probably available through the sharing economy. Taxpayers who participate in the sharing economy can find helpful resources in the IRS Sharing Economy Tax Center on IRS.gov. It  helps taxpayers understand how this activity affects their taxes. It also gives these taxpayers information to help them meet their tax obligations.

Here are six things taxpayers should know about how the sharing economy might affect their taxes:

1. The activity is taxable.
Sharing economy activity is generally taxable. It is taxable even when:

• The activity is only part time
• The activity is something the taxpayer does on the side
• Payments are in cash
• The taxpayer receives an information return – like a Form 1099 or Form W2

2. Some expenses are deductible.
Taxpayers who participate in the sharing economy may be able to deduct certain expenses. For example, a taxpayer who uses their car for business may qualify to claim the standard mileage rate, which is 58 cents per mile for 2019.
 
3. There are special rules for rentals.
If a taxpayer rents out their home or apartment, but also lives in it during the year, special rules generally apply to their taxes. Taxpayers can use the Interactive Tax Assistant tool, Is My Residential Rental Income Taxable and/or Are My Expenses Deductible? to determine if their residential rental income is taxable.
 
4. Participants may need to make estimated tax payments.
The U.S. tax system is pay-as-you-go. This means that taxpayers involved in the sharing economy often need to make estimated tax payments during the year. These payments are due on April 15, June 15, Sept. 15 and Jan. 15. Taxpayers use Form 1040-ES to figure these payments.
 
5. There are different ways to pay.
The fastest and easiest way to make estimated tax payments is through IRS Direct Pay. Alternatively, taxpayers can use the Electronic Federal Tax Payment System.
 
6. Taxpayers should check their withholding.
Taxpayers involved in the sharing economy who are employees at another job can often avoid making estimated tax payments by having more tax withheld from their paychecks. These taxpayers can use the Withholding Calculator on IRS.gov to determine how much tax their employer should withhold. After determining the amount of their withholding, the taxpayer will file Form W-4 with their employer to request the additional withholding.

"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Tax Rates, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720
​

Generally, it takes nearly four decades to fully depreciate the cost of a business building. That's a long time in most people's book. But you may be able to recoup the cost of certain components faster with a cost segregation study prepared by an expert. 
 
How tangible personal property can accelerate deductions
 
Based on the main tax system for depreciation deductions - the Modified Accelerated Cost Recovery System (MACRS) - the usual write-off period for business real estate is 39 years. In contrast, MACRS allows you to write off "tangible personal property" over shorter spans like five, seven or 15 years. For instance, the MACRS period for computers is only five years.
 
Fortunately, you may not be necessarily stuck with the lengthy 39-year period for the entire building. Cost segregation studies can help taxpayers identify certain building components to be treated like tangible personal property so they can recover their costs over shorter depreciation periods. For example, a restaurant might accelerate hundreds of thousands of dollars in write-offs on a $5 million property.
 
What sort of components can be identified in a cost segregation study? The list includes, but isn't necessarily limited to, the following:

• Electrical installations
• Plumbing
• Mechanical components
• Removable carpeting and partitions
• Finishes

​Finally, you might be able to accelerate expenses even more by using Section 179 expensing ($1,020,000 for 2019) and 100-percent bonus depreciation for qualified assets. Therefore, a cost segregation study may provide even greater benefits.
 
But be careful, the IRS has a long history of challenging accelerated deductions. Thankfully, the Audit Techniques guides the IRS agents use for guidance are also available to the public to provide insight into cost segregation choices likely to be accepted.
 
Call today with questions regarding your situation.

​"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Tax Rates, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720
 

Now that the April tax-filing deadline has come and gone, many taxpayers are eager to get details about their tax refunds. When it comes to refunds, there are several common myths going around social media.

Here are five of these common myths:

Myth 1: Getting a refund this year means there’s no need to adjust withholding for 2019
To help avoid an unexpected tax outcome next year, taxpayers should make changes now to prepare for next year. One way for a taxpayer to do this is to adjust their tax withholding with their employer. The IRS encourages people to do a Paycheck Checkup using the IRS Withholding Calculator to determine whether their employer is withholding the right amount. This is especially important for anyone who got an unexpected result from filing their tax return this year. This could have happened because the taxpayer’s employer withheld too much or too little tax from the employee’s paycheck in 2018.  

Myth 2: Calling the IRS or a tax professional will provide a better refund date
Many people mistakenly think that talking to the IRS or calling their tax professional is the best way to find out when they will get their refund. In reality, the best way to check the status of a refund is online through the “Where’s My Refund?” tool at IRS.gov or with the IRS2Go mobile app. Taxpayers without Internet access can call the automated refund hotline at 800-829-1954. “Where’s My Refund?” has the same information available to IRS telephone assistors, so there is no need to call unless “Where’s My Refund?” says to do so.

Myth 3: Ordering a tax transcript is a ‘secret way’ to get a refund date
Doing so will not help taxpayers find out when they will get their refund. "Where’s My Refund?" tells the taxpayer their tax return has been received and if the IRS has approved or sent the refund.

Myth 4: ‘Where’s My Refund?’ must be wrong because there’s no deposit date yet
Updates to “Where's My Refund?” ‎on both IRS.gov and the IRS2Go mobile app are made once each day. These updates are usually made overnight. Even though the IRS issues most refunds in less than 21 days, it’s possible a refund may take longer. This means that in some cases, a taxpayer who filed later may receive their refund sooner than someone who filed earlier in the season. The IRS contacts a taxpayer by mail when it needs more information to process their tax return. Taxpayers should also remember to consider the time it takes for the banks to post the refund to the taxpayer’s account. Taxpayers waiting for a refund in the mail should plan for the time it takes a check to arrive.

Myth 5: ‘Where’s My Refund?’ must be wrong because a refund amount is less than expected
There are several factors that could cause a tax refund to be larger or smaller than expected. Situations that could decrease a refund include:

• The taxpayer made math errors or mistakes
• The taxpayer owes federal taxes for a prior year
• The taxpayer owes state taxes, child support, student loans or other delinquent federal nontax obligations
• The IRS holds a portion of the refund while it reviews an item claimed on the return

The IRS will mail the taxpayer a letter of explanation if these adjustments are made. Some taxpayers may also receive a letter from the Department of Treasury's Bureau of the Fiscal Service if their refund was reduced to offset certain financial obligations.

"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Tax Rates, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720
​

The IRS just issued an updated publication with information for individual taxpayers and business owners unable to pay their taxes. This electronic pub, Offer in Compromise Booklet, helps people understand how an offer in compromise works.
 
An offer in compromise is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed. An offer in compromise is an option when a taxpayer can't pay their full tax liability.

It is also an option when paying the entire tax bill would cause the taxpayer a financial hardship. The ultimate goal is a compromise that suits the best interest of both the taxpayer and the agency. 
 
When reviewing applications, the IRS considers the taxpayer's unique set of facts and any special circumstances affecting the taxpayer's ability to pay as well as the taxpayer's:

• Income
• Expenses
• Asset equity

The booklet covers everything a taxpayer will need to know about submitting an offer in compromise, including:

• Who is eligible to submit an offer
• How much it costs to apply
• How the application process works

The booklet also includes the forms that taxpayers will complete as part of the offer in compromise process.
 
More information:
See if you pre-qualify for an offer in compromise

​"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Tax Rates, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720
​

Before donating to a charity, taxpayers often want to research the organization. The IRS has a tool that lets people access information about charities and other tax-exempt organizations fast and easily. The Tax Exempt Organization Search is available anytime on IRS.gov.

Here are some things taxpayers will find when they use the TEOS tool:

Forms

• Images of an organization’s forms 990, 990-EZ, 990-PF and 990-T filed with the IRS. New filings are added monthly.

A simplified search process

• TEOS is mobile friendly, which provides access to the search tool using smartphones or tablets.

Favorable determination letters

• These are issued by the IRS when an organization applied for and met the requirements for tax-exempt status. The IRS continues adding determination letters to the site. Eventually, all determination letters issued since January 2014 will be available.

Other information
This includes whether an organization:

• Is eligible to receive tax-deductible contributions.
• Has had its tax-exempt status revoked because it failed to file required forms or notices for three consecutive years.
• Filed a Form 990-N annual electronic notice with the IRS. This applies to small organizations only.

Publicly available data from electronically-filed 990 forms is still available through Amazon Web Services.

"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Tax Rates, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

Are you involved in the gig economy - or the labor market made up of freelance and other temporary work - that's gaining popularity? This type of sharing economy involves individuals and groups who connect with others through technology to make money using assets they already own (like cars and houses), often doing everyday tasks. Gigs can range anywhere from Air-b-n-b hosting and delivering groceries to ethical hacking or designing blockchain technology for cryptocurrencies.
 
While participating in the gig economy can put cash in your pocket, it also triggers tax obligations and possible opportunities. Here are some helpful tax tips to keep in mind:

• Pay tax on income. Whether it's your main occupation or a sideline business like driving for Uber or Lyft, any income received is fully taxable, including tips. It doesn't matter if you're paid in cash, property, or goods or services.

 

• Claim offsetting deductions. Typically, you'll operate as a self-employed individual, entitling you to write off "ordinary and necessary" business expenses. For instance, if you're a driver the IRS generally allows you to deduct actual vehicle expenses like fuel, based on business use, or 58 cents per business mile (plus related tolls and parking fees) in 2019.

 

• Report large cash transactions. Just like other business people, you must report any cash transaction (or series of transactions) of more than $10,000 to the IRS on Form 8300 within 15 days of receipt. The usual penalty for intentionally failing to file the form is the greater of $25,000 or the amount received (up to $100,000).

 

• Meet estimated tax requirements. Absent withholding adjustments at another job, you must make quarterly installment payments of estimated tax during the year. Generally, you may be hit with an underpayment penalty if you don't pay at least:
  1. 90 percent of this year's tax liability or
  2. 100 percent of last year's tax liability (110 percent if your adjusted gross income exceeded $150,000).
     
  3. Stay on top of payments to avoid an unpleasant tax surprise.

• Maintain detailed records. Observe all the technicalities required for reporting taxable income and offsetting deductions. For instance, keep a mileage log and any receipts related to your gigs. This way, you're protected if the IRS ever mounts a challenge.

If you have tax questions about your gig, call today.

"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Tax Rates, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720
​

Tax-related identity theft occurs when a thief uses someone’s stolen Social Security number to file a tax return and claim a fraudulent refund. The victim may be unaware that this has happened until they e-file their return. Even before the victim files their return, the IRS may send the taxpayer a letter saying the agency identified a suspicious return using the stolen SSN.

Here are some things people should know about identity theft, including warning signs and steps to take after identity theft occurs.

Warning signs that a theft occurs
Taxpayers should be alert to possible tax-related identity theft if they are contacted by the IRS or their tax preparer about:

• More than one tax return being filed using the taxpayer’s SSN.
• Additional tax owed.
• A refund offset.
• Collection actions taken against the taxpayer for a year when they did not file a tax return.
• IRS records indicating they received wages or other income from an employer for whom the taxpayer did not work.

Taxpayers who suspect they are a victim of ID theft should continue to pay their taxes and file their tax return, even if they must do so on paper.

Steps to take if someone becomes a victim
The taxpayer should:

• File a complaint with the FTC at identitytheft.gov.
• Contact one of the three major credit bureaus to place a fraud alert on their credit records.
• Contact their financial institutions to close any financial or credit accounts opened without permission or that were tampered with by identity thieves.
• Respond immediately to any IRS notice and call the number provided in the letter.
• Complete IRS Form 14039, Identity Theft Affidavit. They can use a fillable form on IRS.gov, print it, then attach the form to their tax return and mail according to instructions.

Taxpayers who previously contacted the IRS and did not have a resolution can contact the agency for specialized assistance at 1-800-908-4490.

Taxpayers should remember that the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and through social media channels.
​
People can report suspicious online or emailed phishing scams to: [email protected]. For phishing scams by phone, fax or mail, call 1-800-366-4484. They can report IRS impersonation scams to the Treasury Inspector General for Tax Administration’s IRS Impersonation Scams Reporting

With the April tax filing due date just a few days away, taxpayers should remember to both file and pay any taxes they owe by the deadine. Taxpayers who do not file and pay timely will see their tax debt grow. In fact, penalties and interest can cause a taxpayer’s debt to grow by more than thirty percent in just a few months.

Here are some tips for taxpayers who owe tax, but who can’t immediately pay their tax bill. Taxpayers should:

• File their tax return or request an extension of time to file by the April deadline.
  Taxpayers who owe tax and do not file their return on time or request an extension may face a failure-to-file penalty for not filing on time.

• Pay as much as possible by the April due date.
  Whether they are filing a return or requesting an extension, taxpayers must pay their bill in full by the April filing deadline. Taxpayers who do not pay their taxes on time will face a failure-to-pay penalty. Taxpayers should remember that an extension of time to file is not an extension of time to pay.
• Set up a payment plan as soon as possible.

• Taxpayers who owe, but cannot pay in full by the deadline don’t have to wait for a tax bill to request a payment plan. Taxpayers can apply for a payment plan on IRS.gov. Taxpayers can also submit a payment plan request in writing using Form 9465, Installment Agreement Request.

"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Tax Rates, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720
​