James J. Newhard, CPA

Let me help to find the right advisor for you! https://article.smartasset.com/financial-advisor-mistakes/

STAY TUNED: I must shut down my [email protected] email very soon -- all email will need to go to [email protected]!

Some great observations by CPAs and a nice article by Mark Tosczak - proud to have been a small part. https://www.journalofaccountancy.com//cpa-accountants-reca

Paycheck Protection Program - the 2021 Sequel https://www.youtube.com/watch?v=r347gLfaG7I

Federal Stimulus - Round #2 from Consolidated Appropriations Act https://www.youtube.com/watch?v=LFvQL2MRZ9w

https://www.cnbc.com//heres-why-a-nightmare-tax-season-awa

Despite Mike Tyson's claim that "everyone has a plan until you get hit in the mouth...", planning is still a really great advantage! https://www.youtube.com/watch?v=LTGd95MryR8&t=3s

Nothing is Simple. Families putting savings/investments away in accounts for kids (18 and under) could have unexpected tax implications. With a bit of planning, we can probably make the tax bite a little smaller. Consider: WHO IS SUBJECT TO KIDDIE TAX RULES? The Further Consolidated Appropriations Act, 2020 enacted in 2019, reverts the kiddie tax" to the prior use of the parents' tax rate for tax years beginning after 2019. For tax years beginning in 2020, the kiddie tax is ...Continue reading

Get Ready -- I soon will be posting video updates, starting with a 2020 pre-year end tax planning tips video coming next week!

BUSINESS PENALTIES! The penalty for failing to file a partnership or S-Corporation return by the due date, including extensions, or filing a return that fails to show all the in-formation required, is $205 for each month or part of a month the failure continues times the number of partners (or shareholders or members), up to 12 months. So a 10-partner/shareholder entity that files just one-month late (Oct 15th) would be subject to a late filing penalty of $2,050! ...Further, an additional $270 penalty applies for each failure to timely issue Schedule K-1 to a partner/shareholder/member or failure to provide required information. The penalty may be increased if the failure to provide the schedule is intentional. Reasonable cause. The penalties listed above may be waived for reasonable cause, though "reasonable cause" is not remotely easy argument. There is uncertainty whether "COVID-19" circumstances will be accepted as a reasonable cause! Domestic partnerships/S-corporations with 10 or fewer partners or shareholders will meet the reasonable cause test provided each partner fully reports his or her distributive share of the income, deductions, and credits of the partnership (informal proportionate and distributive amounts included in the owners' individual income tax filings). If you have a business and haven't filed by the due date, let's get on it quickly -- no one likes paying penalties to the IRS!