​​​Monday, October 15, 2018, is the extension deadline for most taxpayers who requested an extra six months to file their 2017 tax return.

​For taxpayers who have not yet filed, here are a few tips to keep in mind about the extension deadline and taxes:
 
Try IRS Free File or e-file. Taxpayers can still e-file returns for free using IRS Free File. The program is available only on IRS.gov. Filing electronically is the easiest, safest and most accurate way to file taxes.

Use direct deposit. For taxpayers getting a refund, the fastest way to get it is to combine direct deposit and e-file.

Use IRS online payment options. Taxpayers who owe taxes should consider using IRS Direct Pay. It's a simple, quick and free way to pay from a checking or savings account. There are other online payment options.

Don't overlook tax benefits. Taxpayers should be sure to claim all entitled tax credits and deductions. These may include income and savings credits and education credits.
 
Keep a copy of the tax return. Taxpayers should keep copies of tax returns and all supporting documents for at least three years. This will help when adjusting withholding, making estimated tax payments and filing next year's return.
 
File by October 15. File on time to avoid a potential late filing penalty.
 
More time for the military. Military members and those serving in a combat zone generally get more time to file. Military members typically have until at least 180 days after leaving a combat zone to both file returns and pay any tax due.
 
Extension filers can avoid making these common filing errors
 
Taxpayers who filed for an extension of time have until Oct. 15 to submit their tax return.
 
To make sure they meet their tax obligations, taxpayers should file accurate tax returns. If a taxpayer makes an error on their tax return, it will likely take longer to process and could delay a refund. Taxpayers can avoid many common errors by filing electronically, the most accurate way to file a tax return. All taxpayers can e-file using IRS Free File or Free File Fillable Forms.
 
Here are common errors for taxpayers to avoid when preparing their tax return:

• Missing or inaccurate Social Security numbers. Taxpayers should be sure to enter each SSN on a tax return exactly as printed on the Social Security card.
• Misspelled names. People should double check to make sure they spelled all names listed on a tax return exactly as listed on the taxpayers' Social Security cards.
• Filing status. Some taxpayers claim the wrong filing status, such as Head of Household instead of Single. The Interactive Tax Assistanton IRS.gov can help taxpayers choose the correct status. E-file software also helps prevent mistakes.
• Math mistakes. Math errors are common, ranging from simple addition and subtraction to more complex items. Figuring the taxable portion of a pension, IRA distribution or Social Security benefits is more difficult and results in more errors. Taxpayers should always double check their math. Better yet, tax preparation software does it automatically.
• Figuring credits or deductions. Taxpayers can make mistakes figuring their Earned Income Tax Credit, Child and Dependent Care Credit, the standard deduction and other items. Follow the instructions carefully. For example, a taxpayer who's 65 or older, or blind, should claim the correct, higher standard deduction, if not itemizing. The IRS Interactive Tax Assistant can help determine if a taxpayer is eligible for tax credits or deductions.
• Incorrect bank account numbers. Taxpayers who are due a refund should choose direct deposit for ease and convenience, but the IRS cautions taxpayers to use the correct routing and account numbers on the tax return.
• Unsigned forms. An unsigned tax return isn't valid. Both spouses must sign a joint return; an exception may apply for some members of the military. Taxpayers can avoid this error by filing their return electronically and digitally signing it before sending it to the IRS. Taxpayers who are using a tax software product for the first time will need their adjusted gross income from their 2016 tax return to file electronically. Taxpayers who are using the same tax software they used last year usually will not need to enter prior-year information to electronically sign their 2017 tax return.
• Filing with an expired ITIN. The IRS will process and treat as timely a return filed with an expired Individual Tax Identification Number, but won't allow any exemptions or credits. Taxpayers will receive a notice explaining that an ITIN must be current before the IRS will pay a refund. Once the taxpayer renews the ITIN, the IRS will process exemptions and credits and pay an allowed refund. ITIN expiration and renewal information is available on IRS.gov.

​"Tax Tips" are published weekly 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

​


​​Business Use of Vehicles Updated for Tax Year 2017
OVERVIEW
If you use vehicles in your small business, how and when you deduct for the business use of those vehicles can have significant tax implications. It pays to learn the nuances of mileage deductions, buying versus leasing and depreciation of vehicles. Special rules for business vehicles put in use in 2017 can deliver healthy tax savings.

The article below is accurate for your 2017 taxes, the one that you file this year by the April 2018 deadline

Some important questions

The deduction for using vehicles in your business can sometimes be significant, so it's important to make the following decisions:

• Is it better to use the standard mileage rate as your deduction or the actual expenses incurred for a vehicle used for this business?
• Who should own the vehicle? The business, the business owner or the employee?
• Should the business lease or buy the vehicle?

Here's a general overview

Business vehicles are cars, SUVs and pickup trucks that are used for business activities.
What does not qualify:

• Vehicles used as equipment, such as dump trucks
• Vehicles used for hire, such as taxi cabs or airport transport vans

Luxury Autos

Congress decided years ago that the taxpayers should not subsidize extravagant vehicles used by business. To prevent that, the law squeezes otherwise allowable depreciation deductions for “luxury cars.” But don’t think Rolls Royce or Ferrari. Congress has a much less extravagant view of luxury. For 2017, the maximum first-year depreciation write-off for a new (not used) car is $3,160 plus up to an additional $8,000 in bonus depreciation.  For a used car, the maximum first-year write-off for 2017 is a much lower $3,160. (These figures assume 100% (business use.)

The limit is higher for SUVs with loaded vehicle weights over 6,000 pounds. For such vehicles put into use in 2017, 50% of the cost can expensed using Section-179 expensing, plus another 50% of the cost that wasn't expensed under section-179 for bonus depreciation, plus another 20% of the cost leftover for regular first-year depreciation. So for a new $50,000 heavy SUV put to use in 2017 and used 100% for business, $40,000 can usually be written off in 2017.

Keep good records

The IRS is very fussy about writing off the cost of vehicles, so if you plan to take a vehicle deduction it's essential to keep a detailed log of your business miles and other expenses if you want to write them off, too. We suggest that you pick up a vehicle expense log at an office supply or stationary store and keep it in your car.

Standard mileage rate versus actual expenses

Whether to use the standard mileage rate or actual costs is a numbers game. Generally, the more economical the vehicle is to operate, the more likely it is that the standard mileage rate will give you the bigger deduction. Conversely, the higher the operating costs, e.g., gas, repairs, tires, etc. the more beneficial the actual cost method is likely to be.

Standard mileage rate

The IRS allows employees and self-employed individuals to use a standard mileage rate, which for 2017 business driving is 53.5 cents per mile.

To determine the number of miles driven for business you need two numbers for each business vehicle:

• The total number of miles driven during the year
• The total number of miles driven just for business

Tracking your total mileage for the year is easy. Write down the odometer reading on the day that you start using a vehicle for business and on the day the year ends. Business miles are the number of miles actually driven for business, for example, to visit a customer or meet a client.

Remember that any miles driven to the bank, office supply store, computer store, to meet with your accountant or to meet with your lawyer on business matters also count as part of your mileage deduction.

Some travel is not considered business-related:

• Driving from your home to your workplace and back is commuting. It's not deductible on either your business or your individual return.
• If you stop at the store on the way home from a business trip, the remaining miles from the store to home are considered personal mileage, so you can't include them.

Actual vehicle expenses

You can deduct interest on an auto loan, registration and property tax fees, and parking and tolls in addition to the standard mileage rate deduction, as long as you can prove that they are business expenses. Here’s a list of auto-related expenses you might incur.

• Gas and oil
• Maintenance and repairs
• Tires
• Registration fees and taxes*
• Licenses
• Vehicle loan interest*
• Insurance
• Rental or lease payments
• Depreciation
• Garage rent
• Tolls and parking fees*

*Also deductible if you choose the standard mileage method.

The percentage of time (based on miles) that the vehicle is used for business determines the deductible portion of these expenses.

Here's how the math works:

Let's say your gas, oil and repairs came to $3,000 for the year. Fees and taxes were $500. Loan interest and insurance were $1,500. If it's an old car, the is no depreciation write-off. Your total "actual" expenses were $5,000.

Your total mileage was 18,000 and documented business miles were 16,202. The business-use percentage is 90% (16,202 divided by 18,000).

If you use the actual expenses method, you could deduct $4500 (90% of $5,000).

If you use the standard mileage rate, your 2017 deduction would be $8,668 (16,202 x 53.5 cents). In this case, the standard mileage method gives you the bigger tax benefit.

The business-use percentage usually varies from year to year. Operating expenses are annual expenses and do not affect subsequent years.

Depreciation

This is the amount you can deduct over time for general wear and tear of the vehicle. The standard mileage rate includes an amount for depreciation and reduces the adjusted basis of the vehicle when you decide to sell or otherwise dispose of it. In the example above, it works out this way:

2017 Standard Mileage Deduction: 16,202 miles x 53.5 cents per mile = $8,668.

Equivalent Vehicle Depreciation included: 16,202 miles x 25 cents per mile = $4,050.50.

If you use the "actual" expenses method and the vehicle was acquired new in 2017, the maximum first-year depreciation deduction for 2017 is:

Type of Vehicle                                                                                                                         Deduction

Auto                                                                                                                                           $3,160

Light truck, van, or SUV built on a truck chassis                                                                $3,560

In the example above, your depreciation on a new (not used) auto would be limited to the business-use percentage of 90% times the maximum 2017 first-year allowance of $3,160, or $2,844.

Since depreciation accumulates, each year's business mileage affects the adjusted basis of the vehicle. The adjusted basis will, in turn, be used to determine the gain or loss when the vehicle is sold, so keeping good records is essential.

Note: In order to use the standard mileage method, you must choose this method in the first year the vehicle is placed in service. In later years you can choose to use the standard mileage rate or actual expenses.

The ownership dilemma

Self-employed owner (sole proprietor)

The owner can choose to use either the actual expense method or the standard mileage rate method subject to the rules outlined above.

If an employee uses a personal vehicle for business, the employer typically reimburses the employee for the business mileage incurred at the standard mileage rate. The amount received for documented business miles is not taxable to the employee and vehicle expenses are deductible by the employer.

Note: If you are a single-member LLC and file a Schedule C with your personal tax return (Form 1040), you are considered a self-employed owner for tax purposes.

S Corporation/C Corporation

A vehicle used for business may be owned by the corporation or by an employee (even a shareholder employee). The method of claiming the deduction will differ depending on the ownership of the vehicle.

Vehicle owned by employee

An employee (or a shareholder employee) who uses a personal vehicle for business can submit a request for reimbursement to the corporation, based on documented business miles. The corporation can then reimburse the employee based on the standard mileage rate for business.

In this case, the corporation gets a deduction for vehicle expenses paid, and the reimbursement is not reportable as taxable income to the employee.

If the employee has to pay his or her own expenses for travel on behalf of the corporation, the employee claims an unreimbursed employee business expense deduction as a miscellaneous itemized deduction on Schedule A of Form 1040. The employee can use the actual method or standard mileage method to calculate the deductible amount.

Vehicle owned by the corporation

A corporation must determine the deduction for vehicles it owns based on actual operating expenses. The corporation is also limited by the business-use percentage of the vehicle.

The corporation can deduct all of the operating expenses of the vehicle without regard to the business-use percentage, if the personal-use percentage is treated as income to the employee. This is typically the case when you get the use of a company car as an employee benefit. The corporation's deduction for the personal use percentage is treated as a compensation expense.

One more thing: The employee's income for personal use of a corporate vehicle is determined based on the market value of the vehicle, not on the actual expenses or standard mileage rate used to determine the deduction, for example, the cost to rent a vehicle.

Partnership/LLC

The rules are the same as an S Corporation, with one exception: A partner/member who has unreimbursed auto expenses as a requirement of the partnership/LLC agreement can claim the deduction on Schedule E of Form 1040 rather than on Schedule A.

Note: It's generally less burdensome for a business to allow an employee (even a shareholder, partner, or member) to use his or her personal vehicle and submit an expense reimbursement request. This eliminates a substantial amount of record-keeping for the employer. The tracking of business mileage cannot, unfortunately, be avoided or eliminated no matter what reporting choice you make.

Buy or lease?

The standard mileage rate can also be used for a leased vehicle. If you use the standard mileage rate, you cannot switch to the actual expense method in a later year.

If you use the standard mileage rate for a leased vehicle, the lease payment amount is not deductible.

Leased vehicles are not depreciated. Instead, the business portion of the lease payment is deducted. When the value of the leased vehicle is above a certain amount, you must also subtract an "income inclusion" amount from the deductible amount. For vehicles first leased in 2017, the threshold is $19,000. This income inclusion rule is an attempt to equalize the tax benefits from leasing and owning business vehicles.

For example, a vehicle leased in 2017 that is valued at $45,500 and that is used 100% for business would require an income inclusion amount of $54 to be subtracted from the 2017 lease payments in arriving at the deductible amount for that year.

In 2018, the income inclusion amount would be $119. Higher income inclusion amounts would apply for 2019 through 2021.

The bottom line

• Keep detailed records.
• If you drive a lot for business and have few vehicle expenses, use the standard mileage rate to determine your deduction.
• Business use of a vehicle is a legitimate deductible expense and should be claimed by the taxpayer.

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

June is the end of the second quarter, and you're no doubt gearing up for next month's due date for your federal payroll tax returns. But you may also need to complete one task before the end of June: securing your eligibility to claim the Work Opportunity Tax Credit. Here are the details, as well as other current payroll news.

• Work Opportunity Tax Credit. You can claim this federal tax credit when you hire employees who are members of "target" groups. Normally, you have 28 days after an eligible worker's first day to complete the necessary paperwork for the credit. But the 28-day rule has been extended for some new workers hired between January 1, 2015, and May 31, 2016. For certain employees hired within that time period, the deadline for filing the required form is June 29, 2016. The extended date gives you a chance to review your personnel files for credit-eligible employees.

• Employee leasing. Do you outsource your payroll management tasks to a Professional Employer Organization (PEO)? If so, you may have been concerned about reports that some of these companies failed to send the required payroll taxes to the IRS, leaving employers on the hook for unpaid taxes. A voluntary certification program implemented by the IRS may help ease your concern. Hiring a PEO that's certified under the new rules shifts the liability for failing to remit payroll taxes to the PEO.

• Incorrect payroll notices. If you were confused by the changes to April due dates caused by various federal and state holidays, take heart. The IRS was confused, too. As a result, some payroll deposits that were made correctly on April 18 (instead of April 15) were flagged as late, and the IRS issued penalty notices. You can hold off replying to the notice. The IRS will let you know when the mistake is corrected.

​"Tax Tips" are published weekly 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, 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 Online Advisor Newsletters, 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

Your federal income tax filing status can affect exemptions, reportable income, deductions, credits, tax rates, liability, the type of form you file, and whether you need to file at all. In addition, some states require that you use the status reported on your federal return. That can affect the amount of state tax you pay.
 
Five filing statuses are available under current tax law. Here's an overview to help you determine which one is right for you.

• Single. You're considered single if you're unmarried, divorced, or legally separated as of the last day of your taxable year (generally December 31).

• Married filing jointly. When you're legally married under the laws of your state, you and your spouse can elect to combine your income and file a joint return. In cases of divorce or separate maintenance decrees, the laws of your state determine whether you're considered married. Under proposed regulations issued in 2015, same-sex marriages are recognized for federal income tax purposes when the marriage is recognized by any state.

• Married filing separately. As a married couple, you can choose to file joint or separate returns. When you file separately, you can change your mind later and amend your return to file jointly. However, you can't switch from joint status to married filing separately after the due date of the original return. Joint returns offer benefits such as a higher standard deduction. But separating your tax liability from your spouse's by filing separate returns can be beneficial in some situations. Just be aware that certain breaks, such as the child and dependent care credit, may not be available if you chose this filing status.

• Head of household. This is the filing status to use if you're single and provide more than half the cost of maintaining a household for a dependent who lives with you. You may also be able to use head of household status when you're single and maintaining a separate household for a parent - including one living in a nursing home. Head of household tax brackets are more generous than those for single filers, but less broad than the brackets for married filers who complete a joint return.

• Qualifying widow or widower. If you were widowed during the year and have not remarried, you have the option of filing jointly with your late spouse. When you're widowed and have dependent children, you can continue to use joint tax rates for two additional years following the year your spouse died. This status lets you benefit from the favorable tax rates of joint filers and claim the highest standard deduction.

Contact us for help in determining which filing status fits your situation.

We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, 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 Online Advisor Newsletters, 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 extenders law passed in late December did more than increase the amount of Section 179 depreciation expensing for 2015. The law also made changes to the rules that took effect as of January 1, 2016. Here's an overview of some of the modifications.

Maximum expensing amounts made permanent. When you buy machinery, equipment, or furniture for your business, Section 179 lets you take an immediate deduction instead of depreciating the cost over the useful life of the asset. For 2015, the maximum amount you can expense is $500,000 of the cost of qualifying property you placed in service during the year. The $500,000 is reduced (but not below zero) when the cost of the property exceeds $2,000,000.

The extenders law made these amounts permanent. Beginning in 2016, both caps will be adjusted annually for inflation.

Note that the law did not change the requirement that your deduction is limited to the amount of your taxable income for the year. You can still carry unused amounts to future years.

Qualifying property definition expanded. The definition of qualifying property now permanently includes off-the-shelf software and qualified real property such as leasehold, restaurant, and retail property.

For 2015, the maximum Section 179 expense deduction you can elect for qualified real property is $250,000. This expensing cap is eliminated as of January 1, 2016.
​
In addition, starting in 2016, you can write off the cost of air conditioning and heating units. They're now considered qualifying property.
​
Got questions about Section 179? Give us a call. We're here to help.

We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, 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 Online Advisor Newsletters, 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

If you receive Social Security benefits, you may have to pay federal income tax on part of your benefits. These IRS tips will help you determine if you need to pay taxes on your benefits.

• Form SSA-1099.  If you received Social Security benefits in 2015, you should receive a Form SSA-1099, Social Security Benefit Statement, showing the amount of your benefits.
• Only Social Security.  If Social Security was your only income in 2015, your benefits may not be taxable. You also may not need to file a federal income tax return. If you get income from other sources you may have to pay taxes on some of your benefits.
• Free File.  Use IRS Free File to prepare and e-file your tax return for free. If you earned $62,000 or less, you can use brand-name software. The software does the math for you and helps avoid mistakes. If you earned more, you can use Free File Fillable Forms. This option uses electronic versions of IRS paper forms. It’s best for people who are used to doing their own taxes. Free File is available only by going to IRS.gov/freefile.
• Interactive Tax Assistant.  You can get answers to your tax questions with this helpful tool and see if any of your benefits are taxable.  Visit IRS.gov and use the Interactive Tax Assistant tool.
• Tax Formula.  Here’s a quick way to find out if you must pay taxes on your Social Security benefits: Add one-half of your Social Security to all your other income, including tax-exempt interest. Then compare the total to the base amount for your filing status. If your total is more than the base amount, some of your benefits may be taxable.
• Base Amounts.  The three base amounts are:
  • $25,000 – if you are single, head of household, qualifying widow or widower with a dependent child or married filing separately and lived apart from your spouse for all of 2015
  • $32,000 – if you are married filing jointly
  • $0 – if you are married filing separately and lived with your spouse at any time during the year

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.
Additional IRS Resources:

• Social Security Income - Frequently Asked Questions
• Publication 915, Social Security and Equivalent Railroad Retirement Benefits

IRS YouTube Videos:

• Is Social Security Taxable? - English | Spanish | ASL

We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, and all Chicago land 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 Online Advisor Newsletters, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Art Bradley CPA & Janice Papais CPA 
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

Expect to hear from the IRS again about phone calls regarding tax debts. What will differentiate this announcement from those made in the past? This time the IRS may say that some calls can be legitimate. Under a law that went into effect in December, the IRS is required to use private debt collectors to arrange payment of certain back taxes. Does that mean your phone will be ringing?

Maybe, as scammers try to capitalize on the new requirement. But here's a good rule of thumb: Generally, if you're not expecting to hear from the IRS, the caller is probably not the IRS.

The type of debt the law requires the IRS to turn over to the collectors is known as "inactive tax receivables." Those are amounts that are potentially collectible, yet are not being actively pursued by the IRS. The debt must meet certain criteria such as the IRS not being able to collect due to a lack of resources or to the inability to locate the person who owes the back taxes.

The law also specifies what debt the IRS cannot turn over to collectors. For example, if you have a pending or active offer-in-compromise or installment agreement, the IRS can't send your tax bill to a private collection center.

Contact us if you receive any communication from the IRS — or from someone purporting to represent the IRS. We're here to help.

We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, 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 Online Advisor Newsletters, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Art Bradley CPA & Janice Papais CPA 
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

No matter when you need tax help or information, start by visiting IRS.gov. A variety of tools and services are only a click away on our website. Here are ten great ways to use IRS.gov:

1. Get Answers to Your Tax Questions. The Interactive Tax Assistant covers many common tax topics. Type in your question or search terms, and it can lead you step-by-step to the answer. Or, try the IRS Tax Map. It gives you a list of tax law subjects to review. It combines tax topics, forms, instructions and publications into one research tool.

2. Get Forms and Publications. View, download and print federal tax forms and publications anytime. Approximately 100 IRS publications will be available for download in ePub format this year.
3. Use IRS Free File. If you need to file your tax return, you can file a federal tax return for free using IRS Free File. If you earned $62,000 or less, you can prepare and e-file your taxes using free brand-name tax software. If you e-file your tax return, you don't need to prepare or mail any paper forms to the IRS.

4. Get Information on the Affordable Care Act. Find out how to:

• Report health care coverage.
• Claim an exemption from the coverage requirement.
• Make an individual shared responsibility payment.
• Claim the premium tax credit.
• Reconcile advance payments of the premium tax credit.

Use the Interactive Tax Assistant tool to determine if you qualify for an exemption from the coverage requirement or need to make an individual shared responsibility payment.

5. Check on Your Refund. The Where’s My Refund? tool is a fast and easy way to check on your tax refund. Use the IRS2Go mobile app to access the tool, or click on the ‘Refunds’ tab on IRS.gov.

6. Use IRS Direct Pay. If you owe taxes, pay with IRS Direct Pay. It’s a safe, easy and free way to pay from your checking or savings account. Go to IRS.gov/directpay to pay your federal tax bill.

7. Apply for an IRS Payment Plan. If you can’t pay all your taxes at once, apply for an IRS Online Payment Agreement.

8. Check Out a Charity. You must donate to a qualified charity if you want to deduct the donation on your tax return. Use the IRS EO Select Check tool to see if a charity is qualified.

9. Calculate your Tax Withholding. If you get a larger refund or owe more taxes than expected, you may want to change your tax withholding. Use the IRS Withholding Calculator tool to help you figure it out. 

10.  Get a Transcript. The quickest way to get a copy of your tax transcript is to use the Get Transcript tool on IRS.gov. You should receive your transcript in the mail within five to 10 days from the time the IRS receives your request online. Plan ahead to ensure you have it when you need it.
Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.

Additional IRS Resources:

• Payment Plans, Installment Agreements
• Affordable Care Act Tax Provisions

IRS YouTube Videos:

• Welcome to Free File – English
• Interactive Tax Assistant – English | ASL
• Exempt Organizations Select Check – English | Spanish | ASL
• When Will I Get My Refund? – English | Spanish | ASL

IRS Podcasts:

• Interactive Tax Assistant – English
• When Will I Get My Refund? – English | Spanish
• Exempt Organizations Select Check – English | Spanish

http://content.govdelivery.com/accounts/USIRS/bulletins/133e56e?reqfrom=share

​We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, and all Chicago land 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 Online Advisor Newsletters, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Art Bradley CPA & Janice Papais CPA 
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

You may have already heard the news: Many tax numbers that are adjusted annually for inflation did not change for 2016. For example, the 401(k) contribution limit remains at $18,000 this year, plus another $6,000 if you're celebrating your 50th birthday during 2016. SIMPLE plan contributions remain the same for 2016 also. You can save up to $12,500 in your SIMPLE account this year, plus another $3,000 if you're age 50 or over.

Though the limits haven't increased, taking full advantage of allowable contributions and any amounts your employer matches is still a good idea. Contributions you make to employer-sponsored retirement plans reduce your taxable income because your employer deducts the amount you specify from your paycheck before taxes. You might also be able to benefit from a savers credit of up to $2,000.

If you're already contributing the maximum, you may want to consider opening an individual retirement account this year. You can have both types of retirement plans, and a Roth or traditional IRA will help you diversify your retirement holdings and save additional tax-deferred or tax-free money. Just remember that your traditional IRA contribution may not be tax-deductible if you're eligible to participate in your employer's plan.

The maximum amount you can contribute to an IRA during 2016 is $5,500 (plus $1,000 when you're age 50 or older).
​
Give us a call for information about these and other tax-sheltered accounts that can offer significant breaks for 2016. We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, and all Chicago land 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 Online Advisor Newsletters, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Art Bradley CPA & Janice Papais CPA 
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

As you begin preparing year-end 2015 payroll tax returns, take time to consider whether a new Affordable Care Act reporting requirement will affect you. If you're an applicable large employer, "Form 1095-C, Employer-Provided Health Insurance Offer and Coverage," is required for each of your full-time employees.

What's the definition of an applicable large employer (ALE)? You're considered an ALE when you have 50 or more full-time employees in the prior year. A full-time employee is anyone working on average 30 hours or more per week, or 130 hours per month. You'll also need to count "full-time equivalent" employees. These are employees whose actual working hours are less than 30 per week, but whose total combined hours meet the equivalent of full-time.

The 2015 Form 1095-C is due to your employees by March 31, 2016, and to the IRS by May 31. (The IRS deadline is June 30 if you file electronically, which you must do when you issue 250 or more forms.) The penalty for not filing Form 1095-C if you're required to is $250 per form, up to $3 million per year.
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Another health insurance payroll reporting requirement to remember: You still need to report the value of health insurance coverage on an employee's W-2 if you have 250 or more employees.

Give us a call if you have questions about these or any other payroll reports. We're here to help.

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 Online Advisor Newsletters, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

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