News
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If you are questioning “Where’s My Refund” you will need to either call the Internal Revenue Service or go to their website that is dedicated to finding the answer.
The phone number is 844-545-5640 and the website link can be accessed here.
As much as we would like to be able to answer that question for you, the IRS requires the taxpayer themselves to answer personal questions before information is released.
Updated 1/9/24: This news release has been updated to include Cheatham, Gibson, and Stewart counties.
WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in parts of Tennessee affected by severe storms and tornadoes that began on Dec. 9. These taxpayers now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.
Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in Cheatham, Davidson, Dickson, Gibson, Montgomery, Stewart and Sumner counties qualify for tax relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Dec. 9, 2023, and before June 17, 2024, are granted additional time to file.
As a result, affected individuals and businesses will have until June 17, 2024, to file returns and pay any taxes that were originally due during this period.
The June 17, 2024, deadline applies to individual income tax returns and payments normally due on April 15, 2024. For affected taxpayers, 2023 contributions to IRAs and health savings accounts are extended to June 17, 2024.
The tax relief also applies to quarterly estimated tax payments, normally due on Jan. 16 and April 15, 2024. Penalties on payroll and excise tax deposits due on or after Dec. 9, 2023, and before Dec. 26, 2023, will be abated as long as the tax deposits are made by Dec. 26, 2023.
The June 17, 2024, deadline also applies to affected businesses:
Quarterly payroll and excise tax returns normally due on Jan. 31 and April 30, 2024.
Calendar-year partnership and S corporation returns normally due on March 15, 2024.
Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2024.
Calendar-year tax-exempt organization returns normally due on May 15, 2024.
The IRS urges anyone who needs an additional tax-filing extension, beyond June 17, for their 2023 federal income tax return to request it electronically by April 15. Though a disaster-area taxpayer qualifies to request an extension between April 15 and June 17, a request filed during this period can only be submitted on paper. Whether requested electronically or on paper, the taxpayer will then have until Oct. 15, 2024, to file, though payments are still due on June 17. Visit IRS.gov/extensions for details.
If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.
The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS disaster hotline at 866-562-5227 to request this tax relief.
The Tennessee counties listed above constitutes a covered disaster area for purposes of Treas. Reg. §301.7508A-1(d)(2) and are entitled to the relief detailed below.
Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses (including tax-exempt organizations) whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.
Under section 7508A, the IRS gives affected taxpayers until June 17, 2024, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after Dec. 9, 2023, and before June 17, 2024, are granted additional time to file through June 17, 2024
Affected taxpayers that have an estimated income tax payment originally due on or after Dec. 9, 2023, are postponed through June 17, 2024, will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before June 17, 2024.
The IRS also gives affected taxpayers until June 17, 2024, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (December 10, 2018), that are due to be performed on or after Dec. 9, 2023, and before June 17, 2024, are granted additional time to file through June 17, 2024.
This relief also includes the filing of Form 5500 series returns that were required to be filed on or after Dec. 9, 2023, and before June 17, 2024, are postponed through June 17, 2024, in the manner described in section 8 of Rev. Proc. 2018-58. The relief described in section 17 of Rev. Proc. 2018-58, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.
Unless an act is specifically listed in Rev. Proc. 2018-58, the postponement of time to file and pay does not apply to information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series; to Forms 1042-S, 3921, 3922 or 8027; or to employment and excise tax deposits. However, penalties on deposits due on or after Dec. 9, 2023, and before Dec. 26, 2023, will be abated as long as the tax deposits were made by Dec. 26, 2023.
Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred, or the prior year. Taxpayers choosing to claim their losses on their 2022 return have extra time, until Oct. 15, 2024, to make this election. See Publication 547, Casualties, Disasters, and Thefts for details. Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684, Casualties and TheftsPDF and its instructionsPDF. Affected taxpayers claiming the disaster loss on their return should put FEMA disaster declaration number, 4751-DR on any return. See Publication 547 for details.
The IRS will waive the usual fees and requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned FEMA declaration number (4751-DR), in bold letters at the top of Form 4506, Request for Copy of Tax ReturnPDF, or Form 4506-T, Request for Transcript of Tax Return, as appropriatePDF, and submit it to the IRS.
Qualified disaster relief payments are generally excluded from gross income. This means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents. See Publication 525 for details.
Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10 percent early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.
The IRS may provide additional disaster relief in the future.
Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case. Taxpayers may download forms and publications from the official IRS website, IRS.gov.
Tax Season is upon us! A few things we would like to remind you of as we navigate this season.
Deadlines for tax information to be in our office is March 25, 2024 for Individuals. · If you have returns needing to be filed for other entities, Corporations, LLC’s or Partnerships, the due date for information to be into our office is February 26, 2024.
All Clients must complete a 2023 Individual Tax Information Packet to ensure all information is updated. This is for your benefit and to make the process as flawless as possible. It only takes a few minutes and will be REQUIRED for ALL CLIENTS.
Please bring all information at one time. Bringing additional information after you have informed us that your return is ready to be completed will result in additional fees if your return must be revised.
If you need an extension filed, contact our office by email (doris@rabcpa.com) so we can add you to that list. This MUST be done by email…Remember, this extends only the time for you to file your return. This does NOT extend the due date or time if you owe additional tax liabilities to be paid. In the event additional taxes are due and remitted after April 15, you will be subject to late payment penalties and interest. You will need to inform us of the amount you intend to send with your extension and this amount will need to be submitted along with the request for extension.
Deadlines for filing extensions are: Partnerships, Corporations and General Partnerships-March 15, 2024. Individuals-April 15, 2024.
A list of needed information can be viewed here. (Click on Individual Federal and State Taxes)
November 29, 2023
After years of delays, the first stage of the Corporate Transparency Act (CTA) goes into effect on January 1, 2024. It imposes a new federal filing requirement for most corporations and limited liability companies (LLCs).
The CTA’s purpose is to prevent the use of anonymous shell companies for money laundering, tax evasion, and other illegal purposes. But it applies to honest business owners as well as criminals.
The CTA does not apply to all businesses. It applies only to entities such as corporations, multi-member LLCs, single-member LLCs and others formed by filing a document with a state secretary of state or similar official. It doesn’t apply to sole proprietors.
Some businesses are exempt, including:
· large businesses—businesses with more than 20 full-time employees and $5 million in receipts on their prior-year tax return,
· certain businesses already heavily regulated by the government, such as banks and insurance companies,
· nonprofits, and
· several others.
The CTA’s purpose is to compile a massive government database containing the identities and contact information of the “beneficial owners” of most types of business entities. Beneficial owners are the humans who own or exercise substantial control over the entity.
For most reporting companies, identifying the beneficial owners is simple. For example, a three-member LLC in which each member has a one-third ownership interest has three beneficial owners. Identifying beneficial owners for reporting companies with complex ownership structures can be more difficult.
Existing LLC’s and corporations will have time of 12 months from January 1st, 2024, to file the beneficial owner information report with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN)—the Treasury Department’s financial intelligence unit. The report must contain the following for each beneficial owner:
· Full legal name
· Date of birth
· Complete current residential street address
· A unique identifying number from a current U.S. passport, state or local ID document, driver’s license, or foreign passport
· An image of the document that contains the unique identifying number.
The beneficial owner information report is filed online at a new federal database called BOSS (an acronym for Beneficial Ownership Secure System). You can’t file until January 1, 2024. You don’t pay any filing fees. The information in the BOSS database is strictly for use by law enforcement, the IRS, and other government agencies. FinCEN does not disclose the BOSS information to the public.
Please be aware there are substantial penalties imposed under Act for failure to file or comply with requirements of the Act.
FinCEN has already been notified of fraudulent attempts to solicit information from individuals and entities who may be subject to reporting requirements under the Corporate Transparency Act. The fraudulent correspondence may be titled "Important Compliance Notice" and asks the recipient to click on a URL or to scan a QR code. Those e-mails or letters are fraudulent. FinCEN does not send unsolicited requests. Please do not respond to these fraudulent messages or click on any links or scan any QR codes within them.
If you want our assistance with your required reporting and the necessary filings, please call us at 615-444-1149. Please note that as is our policy, we will not automatically file a report on your behalf without your request and authorization.
If you have not picked yours up- please do so asap..
Counties affected: Cannon, Hardeman, Hardin, Haywood, Lewis, Macon, McNairy, Rutherford, Tipton and Wayne.
Taxpayers who choose to take advantage of this extended deadline could receive a letter from the IRS stating that their return is late or that a penalty has been assessed. The taxpayer should then call the IRS at 866-562-5227 or the number on the notice.
IR-2023-75, April 10, 2023
WASHINGTON — Tennessee storm victims now have until July 31, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today.
The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) as a result of tornadoes, severe storms and straight-line winds that occurred starting on March 31. This means that individuals and households that reside or have a business in Cannon, Hardeman, Hardin, Haywood, Lewis, Macon, McNairy, Rutherford, Tipton and Wayne counties qualify for tax relief. Other areas added later to the disaster area will also qualify for the same relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.
The tax relief postpones various tax filing and payment deadlines that occurred starting on March 31, 2023. As a result, affected individuals and businesses will have until July 31, 2023, to file returns and pay any taxes that were originally due during this period.
This includes 2022 individual income tax returns and various business returns due on April 18. Among other things, this means that eligible taxpayers will have until July 31 to make 2022 contributions to their IRAs and health savings accounts.
The July 31 deadline also applies to the quarterly estimated tax payments, normally due on April 18 and June 15.
The July 31 deadline also applies to the quarterly payroll and excise tax returns normally due on April 30, 2023. In addition, penalties on payroll and excise tax deposits due on or after March 31 and before April 18, will be abated as long as the tax deposits are made by April 18, 2023.
The Disaster Assistance and Emergency Relief for Individuals and Businesses page has details on other returns, payments and tax-related actions qualifying for the additional time.
Some affected taxpayers may find that they need more time to file beyond the July 31 deadline. If so, the IRS urges them to request the additional time, electronically, before the original April 18 deadline. Two free and easy ways to do this are through either IRS Free File or IRS Direct Pay, both available only on IRS.gov. Visit IRS.gov/extensions for details.
After April 18 and before July 31, disaster area taxpayers can file their extension requests only on paper.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.
In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.
Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2023 return normally filed in early 2024), or the return for the prior year (that is, the 2022 return normally filed in 2023). Be sure to write the FEMA declaration number – 4701-DR − on any return claiming a loss. See Publication 547 for details.
The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov.
Before the Tax Cuts and Jobs Act (TCJA) went into effect, you could deduct 50% of the cost of most business entertainment. This treatment aligned with the rules for deducting 50% of the cost of business meals.
For 2018 and beyond, the TCJA permanently eliminated deductions for most business-related entertainment expenses. That means businesses could no longer deduct anything for expenses, including taking customers golfing or treating them to a night at the opera. But they could still deduct 50% of the costs of business-related meals under the TCJA.
IRS Regulations
For a couple years after the TCJA was signed into law, the impact of the general disallowance of write-offs for entertainment expenses on the deductibility of business-related meals was unclear. The IRS finally issued regulations in 2020 to clarify matters. Here are key components of that guidance.
Definition of "food and beverage costs." This term refers to all food and beverage items, regardless of whether they're characterized as meals, snacks or after-dinner cocktails. It means the full cost of such items — including any sales tax, delivery fees and tips.
Meals vs. entertainment. For purposes of the general disallowance of deductions for entertainment expenses, the term "entertainment" doesn't include food and beverages unless:
The food and beverages are provided in conjunction with an entertainment activity (for example, hotdogs and beers at a basketball game), and
The food and beverage costs aren't separately stated.
To be 50% deductible in 2023 and beyond, food and beverages consumed in conjunction with an entertainment activity must either be:
Purchased separately from the entertainment, or
Separately stated on a bill, invoice or receipt that reflects the usual selling price for the food and beverages if they were purchased separately from the entertainment or the approximate reasonable value of the food and beverages if they weren't purchased separately.
That means you'll need to obtain detailed receipts from entertainment venues if you want to deduct these costs.
50% deduction for business meals. The regs allow businesses to deduct 50% of the cost of business-related meals, as was the case before the TCJA. However, no deduction is allowed for business meals unless the following three conditions are met:
The expense isn't lavish or extravagant under the circumstances,
The taxpayer (or an employee of the taxpayer) is present at the furnishing of the food and beverages, and
The food and beverages are provided to the taxpayer or a business associate.
The term "business associate" means a person with whom you reasonably expect to deal with in the conduct of your business. Examples include an established or prospective:
Customer,
Client,
Supplier,
Employee,
Agent,
Partner, or
Professional advisor.
The regs also clarify that you can deduct 50% of the cost of a business-related meal for yourself — for example, if you're stuck somewhere working late at night.
Important: Under temporary relief provided during the pandemic, businesses were allowed to deduct 100% of the cost of business-related meals that were provided by a restaurant in 2021 or 2022. That provision expired at the end of 2022.
Meals while traveling. The general rule is that 50% of the cost of meals while traveling on business can still be deducted. The longstanding rules for substantiating meal expenses still apply. Hold on to your receipts!
The regs also reiterate the longstanding rule that no deductions are allowed for meal expenses incurred for spouses, dependents or other individuals who accompany the taxpayer on business travel (or accompany an officer or employee of the taxpayer on business travel), unless the expenses would otherwise be deductible by the spouse, dependent or other individual. For example, meal expenses for your spouse are deductible if he or she works in your business and accompanies you on a business trip for legitimate business reasons.
Favorable Exceptions
Before the TCJA, the following favorable tax-law exceptions allowed 100% deductibility for eligible meal and entertainment expenses. A little-known fact is that the regulators confirm that these exceptions still apply in the post-TCJA world. So, your business can deduct 100% of:
Meal and entertainment expenses that are reported as taxable compensation to recipient employees.
Food, beverage and entertainment expenses incurred for recreational, social or similar activities that are incurred primarily for the benefit of employees other than certain highly compensated employees. For example, you can deduct the costs of food, beverages and entertainment at company picnics or company holiday parties that can be attended by all employees.
The cost of food, beverages and entertainment made available to the general public. For example, a retailer can deduct free snacks that are available to shoppers.
The cost of food, beverages and entertainment sold to customers for full value, including the cost of related facilities. Also, a restaurant or catering business can deduct 100% of the cost of food and beverage items that are purchased in connection with preparing and providing meals to paying customers and that are consumed at the worksite by employees who work in the restaurant or catering business.
The cost of meals and entertainment that are reported as taxable income to a nonemployee recipient on a Form 1099. For example, it's fully deductible to award a potential customer at a sales presentation a dinner cruise for 10 valued at $800, if the recipient is issued a Form 1099.
Mixed Bag
Under current law, businesses generally can't deduct entertainment expenses paid or incurred after 2017 and business meals are only 50% deductible in most situations. But some taxpayer-friendly exceptions apply. Contact your tax advisor to make sure your company's policies and procedures comply with the IRS rules and recordkeeping requirements.
Information for the 2022 Tax Season:
All Clients must complete a 2022 Individual Tax Information Packet to ensure all information is updated.
Please bring all information at one time. Bringing additional information after you have informed us that your return is ready to be competed will result in additional fees if your return must be revised.
If you want an extension filed, contact our office preferably by email so we can add you to that list.
A list of needed information can be viewed here. (Click on Individual Federal and State Taxes)
We will make every effort to file returns by the due dates. In the event we are unable to we will file for extensions and complete the return as quickly as possible.
