Taxes Made Easy

Did You Know?

•  We've seen a number of our clients receive a CP14 letter (Balance Due) from the IRS this year. Unfortunately, many of these letters are sent out in error. The IRS has issued this notice:        

                    "Taxpayers who receive a notice but paid the tax they owed in full and on time, electronically or by check,

          should not respond to the notice at this time. The IRS is researching the matter and will provide an update

          as soon as possible. Taxpayers who paid only part of the tax reported due on their 2023 return should

          pay the remaining balance or follow instructions on the notice to enter into an installment agreement or

          request additional collection alternatives."

        The IRS will automatically make adjustments to any penalties and interest charged in error. Click here for the

        full text of the IRS notice. As always, contact us with any questions or concerns.   

• The business mileage rate for 2024 went up to 0.67 for the entire year.
• The business mileage rate for 2023 went up to 0.655 for the entire year.
• Some of you may be familiar with the 1099-K from third party payment centers for large amounts paid to businesses. The latest tax law (for 2024) requires the third party payment center (Venmo, CashApp, eBay, etc.) to send a 1099-K if the total amount received within the year is over $5000. Some of this will not be taxable, but the IRS will receive a copy of these 1099-Ks, so you must report it. If you do receive one, bring it in! This includes any crowdfunding money you've received either for yourself or on behalf of someone else. Even so, if you receive a 1099-K, you still must report it.
• Cryptocurrency. Digital Assets. Bitcoin. The IRS calls them all “virtual currency.” If you sold, traded or received any virtual currency in 2023, we need to know. The IRS is cracking down on those not reporting these transactions, so bring in any and all information you have regarding virtual currency. Here's an article that explains a little bit about virtual currency: https://coinledger.io/blog/how-to-report-cryptocurrency-on-taxes.
  
• The Energy Credit has been expanded for 2023. The lifetime limitation is now gone; it's now an annual limitation. For details: https://www.energystar.gov/about/federal_tax_credits. Contact us for more details.
• If you took out money from an IRA in 2020 because of COVID and filed a 8915-F (avoiding the 10% early withdrawal penalty), 2022 was the third (and final) year to: 1) repay the money, 2) take the withdrawal as a loan or, 3) pay the regular taxes on the final third of the money. If you originally planned to repay the money, but didn't, we may need to amend the 2020 and 2021 returns. As always, if you have questions, please contact us.
• RMDs are required! Keep in mind, the minimum age went up recently from 70 ½ to 72. If you forgot last year, let us know ASAP! We may be able to mitigate any penalties, but we need to do so sooner rather than later!
• The City of Columbus, OH created a new portal for online tax accounts, called CRISP, Columbus Revenue Information Service Portal. They mailed out notices to Columbus residents. It is legit, but you are NOT required to create an account. As always, you can call us with questions. Click here for the link to CRISP.
• For those who have not filed your 2021 returns, you have until April 2025 to claim any refunds. This includes any stimulus payments you're eligible for, but haven't received. The second stimulus payment of $600 went out from the end of Dec 2020 through around the end of Feb 2021. Most of you received the third stimulus payment of $1400 per person in March or April 2021. We still need to know if you've received them and how much.
• Some of you may have received a 1099-G for Unemployment, but never filed for unemployment. The state and the IRS are both investigating. This continues to be a nationwide ID Theft problem. Here's the link to the state page to file the complaint: https://jfs.ohio.gov/job-services-and-unemployment/unemployment/report-identity-theft-fraud. Do NOT include this in your income if you did not file or receive the money.