Nesteggg Accounting

Archives for July 2019

Here’s how individual taxpayers can view their tax account info

Online Tax Transcripts

Taxpayers with questions about their federal tax accounts can hop over to IRS.gov for answers. Individual taxpayers can login to the View Your Account Information page to view specific details about their federal tax account information.

Taxpayers can view:

  • Their payoff amount, which is updated for the current day.
  • The balance for each tax year for which they owe taxes.
  • Their payment history.
  • Key information from the their most current tax return as originally filed.

After viewing their information, a taxpayer can:

  • Select an electronic payment option.
  • Set up an online payment agreement.
  • Go directly to Get Transcript.

Taxpayer’s balance will update no more than once every 24 hours, usually overnight. Taxpayers should also allow 1 to 3 weeks for payments to show up in the payment history.

To access their information online, taxpayers must register through Secure Access. This is the agency’s two-factor authentication process that protects personal info. Taxpayers can review the Secure Access page process prior to starting registration.

Taxpayers can also visit IRS.gov to use many other self-service tools and helpful resources. These include “Where’s My Refund?” and the IRS2Go app. These are the best ways for taxpayers to check the status of their tax refund. These tools are updated no more than once a day, so taxpayers don’t need to check more often.

Interactive tool on IRS.gov helps taxpayers get answers to their tax questions

Online Tax Tools

Tax questions can pop up any time of the year. When people need answers, they should start with Interactive Tax Assistant on IRS.gov. It’s a tool that provides answers to a many tax law questions.

The taxpayer enters answers to a series of questions and the tool gives them a response based on those answers. Here are some of the topics covered:

Filing Requirement

Filing Status, Dependents and Exemptions

Retirement: Pensions, IRAs, Social Security

Other Income

Deductions

Credits

Payback is……much easier these days!

Sending Money

Paying someone back for purchasing that concert ticket or banquet meal for you has gotten easier with technology and smartphones.  No more hand writing checks and popping them in the mail.  And you have several options these days.

PayPal has been around for years and now has their own app so that transactions can be created from your phone or device.  You may have already used it to purchase items online from Etsy or another retailer.  All you need to pay back a friend is their email attached to their PayPal account.  Obviously, they need to have an account set up, as do you, with a bank account linked.  Your friend can then transfer the funds into their linked account or use those funds for their PayPal credit account.  PayPal also allows you to link a credit card for payment.

Impress your grandkids this year and instead of sending a birthday check, send them funds through Apple Pay!  Of course, both you and your grandkids would have to have an iPhone or iPad.  You will have to have a debit card or bank account linked to your Apple Pay app on your phone (sorry, no credit cards for transferring funds) then you go to the Messaging app, click on your conversation, and “Hello Junior, Happy Birthday! Here’s some fun money for your special day. Grandma loves you!” click the icon under the message field and viola!,  Junior is in the money and Legos ensue.

Now, if you are more comfortable on a desktop you might try your bank’s money transfer app.  Many use a service called Zelle, (where your payee will link to their own bank account) you go to your bank’s online site, put in their email or cell phone number, set up the payment and off it goes.  The payee receives an email or text letting them know you have sent a payment and they take it from there.

There are, of course, more apps and services than these that you can find.  Do be careful however, and do a little research.  You want to use a reputable service from a reputable company.  Ask your bank, your financial savvy friends, or of course, the teenagers in your life.  When in doubt call customer service to find out how the service works. 

And, our advice, never use one of these fund transfer services to pay someone you DON’T know well or haven’t met.  If you just found the greatest deal on craigslist for that bike you’ve been wanting, please never pay before you have received the merchandise.  Besides, there is no need, these services are so quick you will both be able to confirm the payment seconds before you saddle up and ride off to train for the Tour de Palm Springs!

Tips to help organizations understand the tax-exempt application process

A charitable organizations

Organizations that want to apply for tax-exempt status under Section 501(c)(3) of the tax code use a Form 1023-series application. Here are some things organizations should know to help them understand the process:

  • The application must be complete. It must also include the user fee.
  • The application process on IRS.gov includes a step-by-step review of what an organization needs to know and what to do in order to apply for tax-exempt status.
  • There are a few types of organizations that do not need to apply for 501(c)(3) status to be tax-exempt. These are churches and their integrated auxiliaries, and also public charities whose annual gross receipts are normally less than $5,000.
  • An employer identification number is an organization’s account number with the IRS and is required for the organization to apply for tax exempt status. Every tax-exempt organization, including a church, should have an EIN regardless of whether the organization has employees. After getting an EIN, the organization must include it on the application. Organizations may get an EIN by calling 1-800-829-4933 or by applying online.
  • Generally, an organization that is required to apply for recognition of exemption must notify the IRS within 27 months from the date it was formed.
  • When the IRS determines an organization qualifies for exemption under Section 501(c)(3), it will also be classified as a foundation, unless the organization meets the requirements to be treated as a public charity.
  • A charitable organization must make certain documents available to the public. These include its approved application for recognition of exemption with all supporting documents and its last three annual information returns.
     
  • The organization must provide copies of these documents upon request. The organization may charge a reasonable fee for reproduction and copying costs. Organizations that fail to comply may face penalties.

More information:

Internal Revenue Bulletin 1999-17

Time is running out for some combat-injured veterans to claim tax refunds of up to $3,200

Tax Refunds

The Internal Revenue Service is reminding veterans who received disability severance payments after 1991 and claimed it as income that time may be running out to claim their refund.

Veterans should take action soon if they received a notice (letters 6060-A and 6060-D) and have not already filed Form 1040X, Amended U.S. Individual Income Tax Return, to claim a refund or credit of the overpayment attributable to the disability severance payment should do so soon.

“We appreciate the service and sacrifice of our nation’s combat-injured veterans, and the IRS is pleased to help deliver refunds under this special provision,” said IRS Commissioner Chuck Rettig. “Time is running out this month for many people who qualify for this refund. We urge combat-injured veterans to take time review the provisions to see if they are eligible.”

The Combat-Injured Veterans Tax Fairness Act of 2016 provides that most veterans who received a one-time, lump-sum, disability severance payment when they separated from military service are entitled to a refund if that payment was claimed as income. The payment must have been received after Jan. 17, 1991, and before Jan. 1, 2017. Eligible veterans should have received a mailed notice from the Department of Defense in July of 2018 explaining how to claim their tax refunds.

Some veterans have yet to act   

Deadlines are soon approaching as the time available for claiming these tax refunds is limited to:

  • One year from the date of the Department of Defense notice, or
  • Three years after the due date for filing the original return for the year the disability severance payment was made, or
  • Two years after tax was paid for the year the disability severance payment was made.

Veterans claiming their refund have the normal limitations period for claiming a refund or one year from the date of their letter from the DoD, whichever expires later. As taxpayers can usually only claim tax refunds within three years from the due date of the return, this alternative time frame is especially important since some of the claims may be for refunds of taxes paid as far back as 1991. While many veterans have claimed their refunds in the past year, many others have not, and time is running short.

Two options for claiming the tax refund:

  • Option 1: File a claim based on the actual amount of the overpayment attributable to your lump sum disability severance payment, or
  • Option 2: Choose to claim the standard refund amount listed below that corresponds to the year the disability severance payment was made. Simply write “Disability Severance Payment” on Form 1040X, line 15, and enter the standard refund amount listed below on line 15, column B, and on line 22, leaving the remaining lines blank.

Veterans can submit a claim based on the actual amount of their disability severance payment by completing Form 1040X and carefully following the instructions. An original return is not necessary if the information for that tax year available. Veterans without the required information to complete the Form 1040X, you can request a transcript online at IRS.gov/transcript.

Option 2, claiming a standard refund amount, is the easiest way to request a refund because it does not require finding the original tax return or requesting information about the return from the IRS. It may result in a larger or smaller refund based on the actual amount from the return. The standard refund amounts are:

  • $1,750 for tax years 1991 – 2005
  • $2,400 for tax years 2006 – 2010
  • $3,200 for tax years 2011 – 2016

Special Instructions

Carefully follow the instructions in the notice mailed by the Department of Defense in July 2018:

  • Complete and file IRS Form 1040X, Amended U.S. Individual Income Tax Return, for the tax year the disability severance payment was made
  • Write either “Veteran Disability Severance” or “St. Clair Claim” across the top of the front page of the Form 1040X
  • All amended returns are filed on paper, so veterans should mail their completed Form 1040X, with a copy of the DoD letter, to:

Internal Revenue Service
333 W. Pershing Street, Stop 6503, P5
Kansas City, MO  64108

Eligible but never received a DoD notice

Veterans who did not receive the notice from the Department of Defense and received a disability severance payment after Jan. 17, 1991, that was reported as taxable income, can still file a claim. They must include the necessary documentation to file with their Form 1040X. Veterans should contact the National Archives, National Personnel Records Center, or the Department of Veterans Affairs to obtain the required documentation for submission with their Form 1040X.

The IRS has posted detailed information on IRS.gov. Veterans with questions about claiming a tax refund for disability severance payment, can call the IRS toll free at (833) 558-5245 ext. 378 between 7 a.m. and 7 p.m. local time (Alaska and Hawaii follow Pacific time).

BUREAU OF CANNABIS CONTROL;§ 5814. Disciplinary Guidelines

Disciplinary Guidelines

In reaching a decision on a disciplinary action under the Act and the Administrative Procedures Act (Govt. Code section 11400 et seq.), the Bureau shall consider the disciplinary guidelines entitled “Bureau of Cannabis Control Disciplinary Guidelines November 2017,” which are hereby incorporated by reference. Deviation from these guidelines and orders, including the standard terms of probation, is appropriate where the Bureau in its sole discretion determines that the facts of the particular case warrant such a deviation, e.g., the presence of mitigating factors, the age of the case, or evidentiary problems. Authority: Section 26013, Business and Professions Code; Reference: Section 26031, Business and Professions Code.

BUREAU OF CANNABIS CONTROL;§ 5813. Enforcement Costs

Enforcement Penalties

(a) In any order in resolution of a disciplinary proceeding for suspension or revocation of a license, the Bureau may request the administrative law judge to direct a licensee found to have committed a violation or violations of the Act, or any regulation adopted pursuant to the Act, to pay a sum not to exceed the reasonable costs of the investigation and enforcement of the case. (b) A certified copy of the actual costs, or a good faith estimate of costs where actual costs are not available, signed by the Bureau’s designated representative shall be prima facie evidence of reasonable costs of investigation and prosecution of the case. The costs shall include the amount of investigative and enforcement costs up to the date of the hearing, including, but not limited to, charges imposed by the Attorney General. (c) The administrative law judge shall make a proposed finding of the amount of reasonable costs of investigation and prosecution of the case when requested pursuant to subsection (a). The Bureau may reduce or eliminate the cost award, or remand to the administrative law judge where the proposed decision fails to make a finding on costs requested pursuant to subsection (a). (d) Where an order for recovery of costs is made and timely payment is not made as directed in the decision, the Bureau may enforce the order for repayment in any appropriate court. This right of enforcement shall be in addition to any other rights the Bureau may have as to any licensee to pay costs. (e) In any action for recovery of costs, proof of the decision shall be conclusive proof of the validity of the order of payment and the terms for payment. (f) Except as provided in subsection (g) of this section, the Bureau shall not renew or reinstate any license of any licensee who has failed to pay all of the costs ordered under this division. (g) Notwithstanding subsection (f) of this section, the Bureau may, in its discretion, conditionally renew or reinstate for a maximum of one year the license of any licensee who demonstrates financial hardship and who enters into a formal agreement with the Bureau for reimbursement within that one-year period for the unpaid costs. (h) Nothing in this section shall preclude the Bureau from including the recovery of the costs of investigation and enforcement of a case in any stipulated settlement. Authority: Section 26013, Business and Professions Code; Reference: Sections 125.3 and 26031, Business and Professions Code

Taxpayers can still get help tax help this summer

Summer Tax Help

Taxpayers who received an extension but haven’t filed or those otherwise unable to file their return by the April deadline should visit IRS.gov if they need help completing and filing their return. These taxpayers must file by October 15.

Interactive Tax Assistant

Taxpayers can find answers to their tax questions with this tool. The ITA is a tax law resource that asks users a series of questions and immediately provides answers on a variety of tax law topics. It can help taxpayers determine if:

  • Their income is taxable
  • They’re eligible to claim certain credits
  • They can deduct expenses on your tax return

Free File

Taxpayers can prepare and e-file their taxes for free with IRS Free File. Taxpayers who made $66,000 or less qualify to use this free tax software. Those with income above $66,000 can use Free File Fillable Forms.

Find a tax preparer

Taxpayers can use the Directory of Tax Return Preparers to find a list of preparers near them.

Check refund status

Taxpayers can track their federal tax refund using “Where’s My Refund?” on IRS.gov or through the IRS2Go app. They can begin checking its status within 24 hours after the IRS receives their e-filed return or four weeks after they mailed their paper return. Where’s My Refund? is only updated every 24 hours. However, some tax returns may take longer to process.

Make payments electronically

The IRS offers several easy payment options for taxpayers. These include electronic funds withdrawal, payment by debit or credit card, and IRS Direct Pay.

EITC Assistant

Taxpayers who worked and earned less than $54,884 in 2018 may be eligible for the earned income tax credit of up to $6,431.To help determine their eligibility, taxpayers can use the EITC Assistant, available in English and Spanish.

View Account Information

Taxpayers can go to IRS.gov/account to securely access information about their federal tax account. Here they can view:

  • The amount they owe
  • Payment history
  • Key information for their most recent tax return

BUREAU OF CANNABIS CONTROL;§ 5813. Enforcement Costs

Cannabis Enforcement

(a) In any order in resolution of a disciplinary proceeding for suspension or revocation of a license, the Bureau may request the administrative law judge to direct a licensee found to have committed a violation or violations of the Act, or any regulation adopted pursuant to the Act, to pay a sum not to exceed the reasonable costs of the investigation and enforcement of the case. (b) A certified copy of the actual costs, or a good faith estimate of costs where actual costs are not available, signed by the Bureau’s designated representative shall be prima facie evidence of reasonable costs of investigation and prosecution of the case. The costs shall include the amount of investigative and enforcement costs up to the date of the hearing, including, but not limited to, charges imposed by the Attorney General. (c) The administrative law judge shall make a proposed finding of the amount of reasonable costs of investigation and prosecution of the case when requested pursuant to subsection (a). The Bureau may reduce or eliminate the cost award, or remand to the administrative law judge where the proposed decision fails to make a finding on costs requested pursuant to subsection (a). (d) Where an order for recovery of costs is made and timely payment is not made as directed in the decision, the Bureau may enforce the order for repayment in any appropriate court. This right of enforcement shall be in addition to any other rights the Bureau may have as to any licensee to pay costs. (e) In any action for recovery of costs, proof of the decision shall be conclusive proof of the validity of the order of payment and the terms for payment. (f) Except as provided in subsection (g) of this section, the Bureau shall not renew or reinstate any license of any licensee who has failed to pay all of the costs ordered under this division. (g) Notwithstanding subsection (f) of this section, the Bureau may, in its discretion, conditionally renew or reinstate for a maximum of one year the license of any licensee who demonstrates financial hardship and who enters into a formal agreement with the Bureau for reimbursement within that one-year period for the unpaid costs. (h) Nothing in this section shall preclude the Bureau from including the recovery of the costs of investigation and enforcement of a case in any stipulated settlement. Authority: Section 26013, Business and Professions Code; Reference: Sections 125.3 and 26031, Business and Professions Code

Where to Ex-Pat

Ever think about just blowing this cracker-jack joint when it is time to retire?

Living Abroad

What about living abroad? More and more Americans are opting to live abroad at retirement, to save money, live a simpler life, and adventure.

What to Consider

Before you dream about beautiful beaches, amazing open air markets, and friendly people you have to find out how long you can stay and what kind of Visa you will need.  You can start with the US Embassy in the country you are interested.  For instance, if you fancy spending your golden years in the golden sun of Portugal you can go to https://pt.usembassy.gov – just do a search of “US Embassy” plus the country you are interested in.  Start with Visa requirements and then poke around a bit.  Next is to do the opposite.  Search the Portuguese Consulate (or Embassy) in the US and poke around their website.

Now Dream

After you have some idea of the possibilities for the countries you are interested in, it is time to dream!

Are you a beachy/tropical/eco-kind of traveler?  Costa Rica has for years been a favorite destination but Uruguay and Peru also offer relative security and a stable economy where your dollar will go far.

If you are leaning towards a European lifestyle Sweden and German boast a large number of American expats. Split the difference (you want that European proximity but you can’t do without the sun) consider Portugal or Greece.

Besides weather you want to find a location where your dollars are going to last as long as you need.  You also want to consider whether, if need be, you will be allowed to work.  And also, if homeownership is important to you that is a consideration as well.  Not all countries have restrictions but those that do can be particular.  For instance, you may purchase a property in Australia but be prepared to spend at lease 50% of the purchase price on renovations and improvements to the property.

Visit

 Before you drop hundreds on a Berlitz language training course and every Fodor’s its time to dip your toes in and see if you really can imagine yourself there.  Visit your local AAA or travel agent’s to schedule your trip and get some tips on how to get off the beaten path – your not likely going to live right in the heart of tourist town so be ready to explore!  Then, off you go!

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