Gahwiler Tax Service

A Closer Look: 2021 tax tips and some motherly advice ________________________________________ Dietra Grant, IRS Customer Account Services Director, discusses tax tips from a mother’s perspective in the latest issue of A Closer Look. The IRS serves so many people, and I believe that we need to ‘meet you where you are,’ said Grant. There is so much information on our website, IRS.gov, to assist people in preparing and filing their taxes, and we’re making that information more accessible to people.

Stimulus Nearly 2 million more Economic Impact Payments disbursed; continuing payments reach about 163 million ________________________________________ The IRS, the U.S. Department of the Treasury and the Bureau of the Fiscal Service have disbursed nearly 2 million payments in the seventh batch of Economic Impact Payments from the American Rescue Plan. This brings the total disbursed so far to about 163 million payments, with a total value of approximately $384 billion since these payments began rolling out to Americans.

. Time’s running out to claim refunds for 2017 tax returns ________________________________________ Unclaimed income tax refunds worth more than $1.3 billion await an estimated 1.3 million taxpayers who did not file a 2017 Form 1040 federal income tax return. If your client did not file a 2017 federal income tax return, alert them that they have until May 17, 2021, to file and claim their refund. "The IRS wants to help taxpayers who are due refunds but haven't filed their 2017 tax returns yet," said IRS Commissioner Chuck Rettig. "Time is quickly running out for these taxpayers. There's only a three-year window to claim these refunds, and the window closes on May 17. We want to help people get these refunds, but they will need to quickly file a 2017 tax return."

College FAFSA - 202122 Academic Year While some colleges, grant funds based on first in, first to receive grant money, FAFSA forms must be submitted by 11:59 p.m. CT on June 30, 2022. Corrections must be submitted by 11:59 p.m. CT on Sept. 11, 2022. College Deadlines... Each college may have its own deadline. Check with the college(s) you’re interested in attending. You may also want to ask your college about its definition of an application deadline. Is it the date your FAFSA form is processed or the date the college receives your processed FAFSA data? Pennsylvania Deadline All first-time applicants enrolled in a community college; business, trade, or technical school; hospital school of nursing; designated Pennsylvania Open-Admission institution; or nontransferable two-year program: Aug. 1, 2021, by midnight CT. All other applicants: May 1, 2021, by midnight CT. Additional forms might be required.

Recovery Rebate Credit Letters - Letters explain a change The IRS is mailing letters to some taxpayers who claimed the 2020 recovery rebate credit (RRC) and may be getting a different amount than they expected. The first and second economic impact payments (EIPs) were advance payments of the 2020 RRC. When processing a 2020 tax return claiming the RRC, the IRS determines the eligibility and amount of the taxpayer's RRC based on the 2020 tax return information, and the amounts... of any EIPs previously issued. If a taxpayer is eligible, the RRC will be reduced by the amount of any EIPs already issued to the individual. If there's a mistake, the IRS will calculate the RRC amount, make the correction, and continue processing the return, which may cause a slight delay. The IRS will then send the taxpayer a letter or notice explaining any change. The IRS’s page, Correcting Recovery Rebate Credit issues after the 2020 tax return is filed, provides additional information to explain what errors may have occurred. Taxpayers who disagree with the IRS calculation should review their letter as well as the questions and answers for what information they should have available when contacting the IRS. See more

Some people got more than one notice about their Economic Impact Payments (EIP or stimulus) After each of the three Economic Impact Payments is issued, the IRS is required to mail a notice to each recipient's last known address. The notice provides information about the amount of the payment, how it was made and how to report any payment that wasn't received. Some people may receive multiple notices about each payment. Most people will simply file the notice with their tax re...cords and won’t need to contact the IRS or take any further action. Here are some details about each notice and what action some people may need to take. Notice 1444, Your Economic Impact Payment. The IRS mailed this notice within 15 days after the first payment was issued in 2020. Some people received another Notice 1444 if the IRS corrected or issued more than one payment in the first round. Taxpayers who received a Notice 1444 but did not receive their first payment should review the frequently asked questions for instructions on what to do if their first payment is lost, stolen, destroyed or has not been received. People should keep this letter with tax year 2020 records. Notice 1444-A, You May Need to Act to Claim Your Payment. The IRS mailed this letter last year to people who typically aren't required to file federal income tax returns but may have been eligible for the first Economic Impact Payment. People who didn't get a first and second Economic Impact Payment or got less than the full amounts, may be eligible to claim the 2020 Recovery Rebate Credit and must file a 2020 tax return even if they don't usually file a tax return. Notice 1444-B, Your Second Economic Impact Payment. The law that authorized the second payment gave the IRS more time to mail Notice 1444-B after the second payments were issued. This means people likely received their second payment several weeks before Notice 1444-B arrived. Taxpayers who received Notice 1444-B but didn’t receive the second payment should read the FAQs about what to do if their second payment is lost, stolen, destroyed or has not been received. People should keep this letter with tax year 2020 records. Notice 1444-C, Your 2021 Economic Impact Payment. The IRS is mailing this letter to people who received a third Economic Impact Payment. People should keep this letter with tax year 2021 records. People should keep any IRS notices they receive about Economic Impact Payments with other tax records. The IRS cannot issue replacement copies of these notices. Taxpayers who don't have their notices can view the amounts of their Economic Impact Payments through their online account.

IRS FREE recorded workshop helps small business owners understand their tax obligations The Small Business Virtual Tax Workshop helps small business owners understand and meet their tax obligations. It’s free and available online 24/7. The workshop provides information for both new and experienced small business owners. Video lessons, which people can watch in any order, include: Federal taxes and your new business. ... Schedule C and other small business taxes. Filing and paying taxes electronically. Business use of your home. Federal taxes when hiring employees or independent contractors. Managing payroll to withhold the correct amount of taxes. Tax deposits and filing a return to report payroll taxes. Hiring people who live in the U.S. who aren’t citizens. Each lesson contains direct links to more specific topics within that lesson, like chapters in a book. Viewers can choose the lessons that apply to their small business. They can also pause and bookmark lessons so they can review information later.

It's been a really busy, and a wild tax season with all the changes this year. Congress outdid themselves with creating multiple issues for the IRS and accountants. The month of May, the end of tax season, jury duty, and starting the garden are all coming quickly. With that in mind, I expect that anyone who comes in April will be completed by the tax deadline. With anyone who comes in after April 30th, there are no guarantees the returns will be completed by May 17th. It may be necessary to place those returns on extension.