November 2022

If you have received your tax organizers by email in the past your 2022 tax organizer will be sent to you through the secure file platform called Verifyle. You will receive an email from Verifyle, (not our office). You will be able to download the forms. The forms will be in PDF format. You will need Adobe Reader to view them.

You should receive your tax organizer in late December or January.

If you have not received yours by 1/31/2023, check your inbox, junk mail or spam. If you still can’t find it call our office and we will make sure you get yours!

If we usually mail your tax organizer to you, it will continued to be mailed to you.

If you do not have your tax organizer by 1/31/2023, give us a call. We will make sure your receive it.

REMINDER: If you have tax data from a prior year that you haven’t picked up yet, please swing by and pick it up at your earliest convenience. You can also pick it up when you drop off you 2022 tax data.You will want to keep it with your tax returns

UPDATE:*** WE ARE CONTINUING TO FOLLOW THE GOVERNMENT MANDATED FACE MASK REQUIREMENTS ***

As you all know, there was a massive tax reform bill passed at the end of 2017. One of the big changes included in this bill was something called the Qualified Business Income Deduction. This deduction can allow a taxpayer to receive a deduction of up to 20% of Qualified Business Income. (Example: your business makes a profit of $100k. You would be able to reduce the $100k by $20k and only pay taxes on $80k).  However, this is a very complicated new law and one of the many questions has been as to whether or not rental real estate qualifies for this deduction.

We have been waiting on further guidance from the IRS as to how the deduction is calculated and what businesses would qualify for this deduction. On January 18, 2019, the IRS issued further guidance on this subject in the form of a 247 page document. It has finally been clarified that the deduction will be allowed for those with rental properties. However, the IRS has stated that taxpayers who want to treat rental activity as a trade or business for the purpose of receiving this deduction must also comply with the Form 1099 information reporting requirement.

What this means to you is that if you are interested in taking this new deduction, you must issue Form 1099-Misc forms to any person or business that you paid over $600 for services. This would include any repairs, maintenance, management fees or lawn care, just to name a few.

Please contact our office if you have any questions or if you need assistance in preparing and issuing the Forms 1099-Misc and the 1096 transmittal form. The deadline is January 31, 2022 so time is of the essence. Any 1099-Misc forms issued after January 31, 2022 are subject to penalties.

DO YOU OWN A BUSINESS? DID YOU PAY A SPECIFIC VENDOR FOR SERVICES OR RENT IN THE AMOUNT OF $600 OR MORE IN 2021? IF SO, YOU NEED TO PROVIDE THE VENDOR OR RENTAL COMPANY A 1099misc.

THE IRS WILL ISSUE STEEP PENALTIES FOR FAILING TO PROVIDE A 1099misc WHEN REQUIRED.

PENALTIES RANGE FROM $50 PER 1099misc TO $186,000 PER 1099misc form. THE PENALTIES INCREASE BASED ON THE DATE THE FORM IS FILED. 

IT IS ALSO IMPORTANT TO FILE THESE FORMS WITH THE CORRECT  TAXPAYER INFORMATION.  PENALTIES APPLY WHEN THE CORRECT INFORMATION IS NOT PROVIDED TO THE IRS. 

CHECK OUR IMPORTANT DOCUMENTS PAGE ON THIS WEBSITE AND PRINT FORM W-9 TO HAVE YOUR VENDORS FILL OUT AND RETURN TO YOU. YOU SHOULD HAVE A W-9 ON FILE FOR ALL VENDORS. (HINT- IT IS MUCH EASIER TO GET THIS FORM BEFORE YOU WRITE THE FIRST CHECK TO THEM, THAN A YEAR LATER WHEN THE FORMS ARE DUE)