It is time to begin gathering your 2022 tax information. We would like to send your 2022 tax organizer via email. The tax organizer contains 2021 tax information and can assist you in compiling your 2022 information. We do not require that you use the organizers, but they are available to you if you find them to be of assistance.
If you wish to receive an organizer, please contact us via email at firstname.lastname@example.org, or phone call (937-898-3167), and let us know if you would like your organizer emailed, or if you would like a paper copy mailed to you. For security reasons, no Social Security numbers, birthdates or bank information will be listed within the organizer, and all email attachments will be password protected or sent via sharefile.
Due to the sensitive nature of the information, we recommend not mailing your completed tax returns to you. We recommend that you pick up your completed returns or that we email them to you (password protected) or via sharefile. Special mail services will be used for our out-of-state clients. In addition, if you have information to send us containing social security numbers, bank info or birthdays, visit our website www.manningcpallc.com and use the “upload files here” link.
As tax preparers, it is mandatory that we file federal and state returns electronically. If we have your email address on file, you will receive a confirmation when your tax return has been electronically filed and accepted. Tax returns cannot be e-filed until we receive signed authorization (Form 8879) from you. This form will be included with your copy of the completed return. Form 8879 should be signed and returned to our office within 3 days. It may be faxed, emailed or dropped off.
You may have recently received an IRS Identity Protection PIN (IP PIN). If so, a copy must be provided to us to electronically file your 2022 tax return.
Most city tax returns are required to be mailed. We will prepare the city returns with the related attachments, however it is your responsibility to sign and mail. Review your completed tax return packet with instructions. City ordinances have changed, if you owe more than $200 you are required to file estimated tax payments for 2023.
We look forward to seeing you within the next couple of months. Please make every effort to get your information to us as soon as you have it organized to avoid the last-minute rush. If you need an extension for your 2022 tax return, please notify our office by April 5, 2023. Extensions will no longer be automatically requested. You must contact us to request an extension.
The partners and staff at Manning & Associates CPAs, LLC would like to extend our appreciation for your continued business.
John M. Manning, CPA
Sandra L. Comer, CPA
Craig L. Steinke, CPA
John M. Keller, CPA
Austin Schroeder, CPA
Patrick Prenger, CPA
John C. Bensman, CPA
Craig L. Steinke, CPA
Patrick Prenger, CPA
It is time again to start gathering your tax information for 2017. We would like to send your 2017 tax organizer via email. The tax organizers contain your 2016 tax information and can assist you in compiling your 2017 tax information. We do not require that you use the organizers to compile your 2017 data, but they are available to you if you find them to be of assistance.
For security reasons, no Social Security numbers, birthdates or bank information will be listed within the organizer, and all email attachments will be password protected.
If you wish to receive an organizer, please contact us via email at email@example.com , or phone call (937-898-3167), and let us know if you would like your organizer emailed, or if you would like a paper copy mailed to you.
In an effort to help eliminate the increasing risk of identity theft, we recommend not mailing your tax returns to you. We recommend that you pick up your completed returns or that we email them to you (password protected). Special mail services will be used for our out-of-state clients. Order modafinil
As tax preparers, it is mandatory that we file federal and state returns electronically. If we have your email address on file, you will receive a confirmation when your tax return has been electronically filed and accepted, along with details of when to expect your refund. Most cities will be required to be mailed with attachments. We will prepare the city returns, however it is your responsibility to sign and mail.
We look forward to seeing you within the next couple of months. Please make every effort to get your information to us as soon as you have it organized to avoid the last minute rush.
If you need an extension for your 2017 tax return, we will do so upon your verbal request.
As always, we appreciate your business.
Very truly yours,
Manning & Associates CPAs, LLC, Partners and Tax Professionals:
John M. Manning CPA
Craig L. Steinke, CPA
John C. Bensman, CPA
Sandra L. Comer, CPA
John M. Keller, CPA
VERY IMPORTANT 2017 TAX TOPICS
1099 Requirement – Applicable if You Own Your Own Business, Farm or Rental Property
If you are a business owner, have a farm, or own a rental property, the Internal Revenue Service requires you to issue Form 1099 to any individual, “unincorporated” business, or any law firm that you paid in excess of $600 per calendar year for services rendered. We are required to indicate on your tax return whether or not payments were made that require filing Form(s) 1099, and if so, whether or not they were filed. Please complete the 1099 Requirement Section on Page 3 of this letter. Order Xanax
If you need assistance or have questions related to the preparation of Form(s) 1099, please contact our office for assistance. You may refer to our website for additional information on this topic. Forms 1099 must be issued to the recipients and to the Internal Revenue Service by January 31, 2018.
We are still required to obtain a client statement with signature for charitable contributions. Please complete and sign the charitable contribution section on the enclosed Signature Page of this letter and submit with your 2017 tax information.
Affordable Care Act in 2010
As a result of the passage of the Affordable Care Act in 2010, we will be asking for information about your medical insurance coverage for 2017. You will need the amount of the premium paid for medical insurance in 2017, either by you, your employer, or the combination of both. If you work for a company that employs over 250 employees, this information should already be on your W-2.
In addition, you will be required to prove that you had adequate medical insurance for all dependents claimed on the tax return for all twelve months of the year. Your medical insurance company may mail to you Form 1095-B –Health Coverage. (If you obtained insurance in the Market Place, you need to download Form 1095-A). Please include this form with your year-end tax information as it will provide the information we need to complete your tax returns.
Minimum Wage Increase
The State minimum wage for 2018 is $8.30 per hour. The Ohio minimum wage for tipped employees is $4.15 per hour (plus tips). The State minimum wage still exceeds the federal minimum wage.
Taxpayers must provide documentation for all dependents claimed on their tax returns. If there is any doubt as to claiming a dependent, we will ask you to complete Form 8867 (Paid Preparer’s Due Diligence Checklist) or, if necessary, Form 8332 (Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent), which must be signed by the custodial parent releasing/revoking the claim to exemption.
Business Expense Documentation
All business expenses claimed as a deduction on your tax returns must have the proper documentation. This includes keeping a mileage log for all business miles.
(this Act will apply to the 2018 returns filed in 2019)
The Act keeps the seven income tax brackets but lowers tax rates. Employees will see changes reflected in their withholding in February 2018 paychecks. These rates revert to the 2017 rates in 2026.
The Act creates the following chart. The income levels will rise each year with inflation. But they will rise more slowly than in the past because the Act uses the chained consumer price index. Over time, that will move more people into higher tax brackets.
Income Tax Rate
Income Levels for Those Filing As:
Corporate Tax Rate
21 percent, beginning in 2018
Corporate Alternative Minimum Tax
Individual Alternative Minimum Tax
Increase the exemption to $70,300 for singles and $109,400 for joint filers. Increase the phase-out threshold to $500,000 for singles and $1 million for joint filers. The higher limits would expire on Jan. 1, 2026.
Standard Deduction and Personal Exemptions
Current law: $6,350 standard deduction for single taxpayers and $12,700 for married couples, filing jointly. Personal exemptions of $4,050 allowed for each family member.
New law: $12,000 standard deduction for single taxpayer and $24,000 for married couples, filing jointly. Personal exemptions repealed.
Businesses could fully and immediately deduct the cost of certain equipment purchased after Sept. 27, 2017 and before Jan. 1, 2023. After that, the percentage of cost that could be immediately deducted would gradually phase down. Increases the section 179 expensing cap from $500,000 to $1 million.
U.S. companies’ overseas income held as cash would be subject to a 15.5 percent rate, while non-cash holdings would face an 8 percent rate. Companies can make the payments in eight annual installments.
Current law: Pass-through businesses, which include partnerships, limited liability companies, S corporations and sole proprietorships, pass their income to their owners, who pay tax at their individual rates.
New law: Owners of Pass-through entities (Non-Service Organizations) may be eligible to deduct 20 percent of their qualified business income. If the owner’s taxable income is below $315,000 for married filing joint or $157,500 for individuals the deduction is 20%. If the owner’s income exceeds the threshold the deduction is the lesser of 20% of its business income or 50% of the total wages paid by the business to its employees.
Owners of Pass-through service organizations are able to deduct 20% of qualified business income if the owner’s taxable income is below $315,000 for married filing joint or $157,000 for single individuals. The 20% deduction is completely phased out over the owners next $100,000 of income over the threshold for married filing joint and $50,000 for single individuals.
Affordable Care Act Individual Mandate
Current law: An individual who fails to buy health insurance must pay penalties of $695 (higher for families) or 2.5 percent of their household income—whichever is higher, but capped at the national average cost of the most basic, low-premium, high-deductible plan.
Repeal of the penalties for 2019.
Individual State and Local Tax Deductions
Current law: Individuals can deduct the state and local taxes they pay, but the value is subject to certain limits for high earners.
New law: Individuals can deduct no more than $10,000 worth of deductions, which could include a combination of property taxes and either sales or income taxes.
Mortgage Interest Deduction
Current law: Deductible mortgage interest is capped at loans of $1 million.
New law: Deductible mortgage interest for new purchases of first or second homes would be capped at loans of $750,000 starting Jan. 1, 2018.
Medical Expense Deduction
Current law: Qualified medical expenses that exceed 10 percent of the taxpayer’s adjusted gross income are deductible.
New law: Reduce the threshold to 7.5 percent of AGI for 2017 and 2018.
Child Tax Credit
Current law: A $1,000 credit for each child under 17. The credit begins phasing out for couples earning more than $110,000. The credit is at least partially refundable to qualified taxpayers who earned more than $3,000.
New law: Doubles the credit to $2,000 and provide it for each child under 17 through year 2025. Raise the phase-out amount to $400,000 married filing joint, and cap the refundable portion at $1,400 per qualified child in 2018.
Current law: Applies a 40 percent levy on estates worth more than $5.49 million for individuals and $10.98 million for couples.
New law: Double the thresholds so the levy applies to fewer estates. The higher thresholds would sunset in 2026.
For every business tax return that we prepare, Forms 1120, 1120S, 1065 and Schedules C,E and F that are included with Form 1040, the following question is asked by the Internal Revenue Service.
- Did you make any payments that would require a form 1099 to be issued to any individual. If you answer Yes to that question, then you must answer the second question.
- If a form 1099 was required to be issued, did you issue that form 1099. We must answer these two questions on every return that we prepare.
In December, we send out a Year-End letter to all of our clients reminding them of this responsibility and if the clients want us to prepare those forms for them, we would be happy to do that, and to provide us with the information needed to prepare those forms. We need the name of the recipient, the address and social security number and the amount paid to the recipient. The requirements for filing these various 1099 forms are as follows:
- Form 1099 Dividends – for dividends paid in the amount of $10 or more
- Form 1099 Interest – for interest paid in the amount of $10 or more
- Form 1099 Miscellaneous – for rents or services rendered and paid in the amount of $600 or more
There are numerous other forms 1099, but these are the most common forms that we see in our practice. The forms 1099 are due to the recipients by January 31 and to the Internal Revenue Service by February 28 of the following year. The due date for filing forms 1099 and W-2s that are filed electronically is March 31. We do file these forms electronically if we prepare them. There is a three tiered penalty system in place for Information returns that are filed late or not filed.
- If the returns are not filed by the due date, the penalty is $30 per return if filed within 30 days after the due date.
- If the returns are filed 30 days after the due date but before August 1, the penalty is $60 per return.
- If the returns are not filed by August 1, the penalty is $100 per return.
We recently had a client’s tax return audited by the Internal Revenue Service in our office that makes the filing of these information returns a more serious matter. The taxpayer did not attempt to ascertain the social security number of the individual that they paid in excess of $600 annually for rent. As a consequence of this inaction, no form 1099 Miscellaneous was issued to this recipient by the taxpayer. The Internal Revenue Service attempted to bill the client for the tax that should have been paid by the taxpayer, because the client did not attempt to get the social security number of the recipient. On what grounds did the Internal Revenue Service have the right to ascertain the tax from our client? They exercised the Back-Up withholding rules and regulations for not issuing forms 1099 and for not attempting to get the social security number of this recipient. We were able to prove to the IRS that the recipient did indeed pay the tax on the rental income by having the taxpayer complete Form 4669. This form states to the Internal Revenue Service that the tax was paid on the income received. We prevailed on this issue, but the recipient was not required to complete this Form 4669, and we could have had a real problem in this case. Our advice to all of our clients that pay individuals, Limited Liability Companies, Partnerships or other non corporate entities for services or rents, is that they must have a completed Form W-9 in the file, before payment is made to any entity. The information contained on the Form W-9 is the information that is needed to complete the Form 1099.
If you have any questions or comments on this article, please call our office. Just remember that we will be asking you if you prepared the forms 1099 for every tax return that we prepare.
John M. Manning