Translations from Your Trusted Advisor.
In an update to a recent blog post, the IRS has now sent out most of the Advance Child Credit Letters to taxpayers that received advanced child tax credit payments. It is important to note that taxpayers that file as married filing jointly will each receive an Advance Child Tax Credit Letter. Each letter will report a portion of the total amount. In many instances each letter will report half of the total amount, but there are situations where the amounts will be different, so it is important to provide the total amount that was received to your accountant.
Brenda Quinn, EA •
Your tax professional will ask you if you own, buy or sell cryptocurrency. The IRS wants to know too and now the question appears on the front page of the 2021 Form 1040! Cryptocurrency is a virtual currency that is quickly gaining widespread acceptance throughout the world.
The accounts receivable and payable aging reports are helpful tools in QuickBooks to find out who you owe and who owes you quickly. The reports show the age of the receivables and payables so you know if you’re behind on a payment or if a customer is behind on a payment. However, you may have noticed that you have some zero balance lines.
Rebecca Acorn, CPA, MST •
Earlier in October, the Internal Revenue Service issued News Release 2021-217 on steps taxpayers can take to make tax filing easier in 2022.
The first step the IRS recommends is gathering and organizing your tax records. Your Mason & Rich tax organizer, which we starting sending yesterday, can be an important tool in helping you gather your tax documents. It lists the tax documents provided last year and asks questions that can help identify new documents.
As we quickly approach the deadline for filing 1099-MISC or 1099-NEC, it is time to consider whether your business is ready to file.
Note that Form 1099-NEC is utilized to report amounts of nonemployee compensation, while Form 1099-MISC is utilized to report other forms of compensation. The due date for furnishing 1099-MISC or 1099-NEC statements to recipients and to the IRS for the 2021 tax year is Monday, January 31, 2022.
Rebecca Acorn, CPA, MST •
In December 2021 the United States Department of Education announced that the COVID-19 Emergency relief related to federal student loans would end on May 1, 2022. Those with eligible loans may have received a suspension of loan payments, 0% interest rate, and stopped collections on defaulted loans. To learn more about repayment restarting, visit your loan provider or Studentaid.gov
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