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Federal IRS Electronic Payment Requirement

Tue, 16 Sep 2025 21:42:52 GMT

With the March 25, 2025, signing of Executive Order 14247 — Modernizing Payments to and From America’s Bank Account — the federal government is initiating a sweeping modernization of its financial operations. Effective September 30, 2025, all payments made to or from the Federal IRS must be processed electronically , marking a significant shift toward greater efficiency, enhanced security, and alignment with contemporary financial standards.

What does this mean for you?

Beginning September 30, 2025 , paper checks will no longer be issued for federal tax refunds or payments. Additionally, all payments must be made electronically using approved methods such as:

Direct deposit
Debit or credit cards
Digital wallets
EFTPS (Electronic Federal Tax Payment System)
Treasury-approved prepaid debit cards (where applicable)

Stevans & Associates, PLLC, utilizes and recommends that your tax returns are delivered via SafeSend Returns. Within your SafeSend Return, you will be provided with a link to make any payments electronically via the Federal and/or State authority's website. If you have previously received your tax returns via paper, we recommend that you discuss with us to receive your tax return via SafeSend Returns.

To comply with these changes and avoid processing delays, please ensure your banking information is up to date and that you are prepared to make or receive payments electronically.

If you have any questions or need help preparing for this transition, our team is here to assist you.

SafeSend Gather vs. SafeSend Client Portal: What's the Difference?

Tue, 21 Jan 2025 23:05:47 GMT

SafeSend Gather and SafeSend Client Portal are components within the SafeSend One™ platform, each designed to streamline different aspects of the tax preparation and client interaction process.

SafeSend Gather focuses on automating the initial phase of tax preparation by simplifying the collection of necessary documents and information from clients. Leveraging advanced artificial intelligence, it automatically generates document request lists, identifies and categorizes uploaded documents, and provides real-time visibility into document completion status. This ensures a frictionless document gathering process for both firms and clients.

SafeSend Client Portal , on the other hand, is designed to enhance the overall client experience by providing a centralized dashboard for managing all tasks and documents throughout the tax lifecycle. It offers features such as a downloadable, sortable, and searchable repository of all documents exchanged between client and firm, a simple actionable to-do list, comprehensive notifications for important deadlines, a unified K-1 distribution page, and a centralized location to view and pay estimated or actual tax payment vouchers. This portal empowers clients to have greater independence and control over their tax journey.

In summary, while SafeSend Gather streamlines the document collection process at the beginning of the tax preparation, SafeSend Client Portal provides an ongoing, centralized platform for clients to manage their tax-related tasks and documents throughout the entire tax lifecycle.

Please reach out to our office if you have any questions about the SafeSend platform and it's features. CLICK or CALL .

Source: SafeSend Learn

SafeSend Client Portal User Guide: Simplify Tax Document Management

Mon, 06 Jan 2025 23:31:55 GMT

Managing tax documents doesn’t have to be overwhelming. With the SafeSend Client Portal , you gain a secure, convenient, and efficient way to store, access, and share your tax documents anytime, anywhere. This cutting-edge platform is designed with your ease and security in mind, ensuring that your tax preparation process is smooth and stress-free.

Benefits of the SafeSend Client Portal

Secure Access to Your Documents
The SafeSend Client Portal employs advanced encryption and security protocols to protect your sensitive financial information. You can confidently upload, store, and retrieve your tax documents without worrying about data breaches.
24/7 Availability
With the portal, your documents are available at your fingertips, whether you’re at home, at work, or on the go. No need to hunt through paperwork—everything is digitally organized in one place.
Streamlined Communication
The portal allows you to securely share documents with our office and receive important updates or requests. This eliminates the need for back-and-forth emails or physical mail, saving you time and hassle.
Environmentally Friendly
By using a digital portal, you’re reducing paper waste and contributing to a more sustainable future.
User-Friendly Design
SafeSend’s intuitive interface makes it easy to navigate, even if you’re not tech-savvy.

Step-by-Step Guide to Setting Up Your SafeSend Client Portal

Receive the Invitation
You’ll receive an email with a link to set up your SafeSend Client Portal. The email will include a secure invitation link that is unique to you.
Create Your Account
Click the invitation link and follow the prompts to create your account. You’ll need to set up a username and password and provide some basic information to verify your identity.
Be sure to hit 'Sign Up' under the login screen before trying to log into an account.
Verify Your Identity
For added security, the portal may send a verification code to your email or phone. Enter this code to complete the setup process.
Log In
Once your account is set up, log in using your new credentials. Bookmark the login page for easy access in the future.
Explore the Portal
Take a moment to familiarize yourself with the portal. You’ll find sections for uploading documents, viewing files, and communicating with our team.
Upload Your Documents
Use the upload feature to submit your tax documents. You can drag and drop files or select them manually from your device. Accepted file types include PDFs, images, and spreadsheets.
Monitor Progress
The portal allows you to track the status of your submissions and see any additional requests from our team. You’ll receive notifications when updates are made.
Access Your Completed Tax Return
Once your return is complete, you can securely download a copy directly from the portal. All files are stored for your convenience and future reference.

Still struggling to set up a client portal?

Here is, a direct from SafeSend, step by step guide for 1st time portal setup/access: Client Portal Experience – SafeSend Returns

Start Using SafeSend Client Portal Today

The SafeSend Client Portal is a powerful tool designed to make your tax preparation experience smoother and more efficient. If you have questions about setting up or using the portal, our team is here to assist you every step of the way. Contact us today to get started and take the first step toward a more organized and stress-free tax season!

SafeSend Gather User Guide: Streamline Your Tax Document Collection

Fri, 03 Jan 2025 23:31:53 GMT

Collecting and organizing tax documents can be a time-consuming and stressful part of the tax preparation process. That’s why we’re excited to offer SafeSend Gather , a secure and user-friendly tool designed to simplify how you share your tax documents with us.

Here’s an overview of the benefits of SafeSend Gather and how to get started.

Benefits of SafeSend Gather

Secure Document Sharing SafeSend Gather ensures your sensitive tax information is protected with top-tier encryption, safeguarding your personal and financial details during the document submission process.
Convenient and User-Friendly Whether you’re at home or on the go, SafeSend Gather’s intuitive interface makes it easy to upload and share documents directly from your computer, tablet, or smartphone.
Save Time and Stay Organized The platform’s streamlined approach eliminates the need for printing, scanning, or mailing documents. All your tax files stay neatly organized in one place, ready for review.
Track Your Progress SafeSend Gather allows you to see which documents have been submitted and which are still needed, ensuring nothing gets overlooked.

Step-by-Step Guide to Using SafeSend Gather

Receive the Invitation
You’ll receive an email from our office with a personalized link to access SafeSend Gather. This link is unique to you and will guide you to your secure document portal.
Log In
Click the link in the email and follow the instructions to verify your identity. You may need to input a secure access code sent to your email or phone for additional security.
Review Document Requests
Once logged in, you’ll see a checklist of the documents we need for your tax preparation. This checklist is customized to your tax situation to ensure we receive all the necessary information.
Please be sure to sign your Engagement Letter and fill out your organizer before uploading your tax documents.
Keep in mind, you may have additional tax documents to the ones listed in your checklist
Gather bases the checklist on the previous tax year, so if there have been any changes to employment, investments(ex: sale of stocks), or assets(ex: purchase of a home) the checklist may not reflect these.
Upload Documents
Use the upload feature to submit your documents. You can drag and drop files from your device or select them manually. SafeSend Gather accepts a variety of file types, including PDFs, images, and spreadsheets.
Confirm Submission
After uploading your documents, review the list to ensure everything has been submitted. Once complete, click “Submit” to notify us that your documents are ready for review.
Follow Up if Needed
If we require additional documents or clarification, you’ll receive an email notification prompting you to log back into SafeSend Gather to provide the requested information.

Start Using SafeSend Gather Today

SafeSend Gather is just one of the ways we’re making the tax preparation process easier and more efficient for you. If you have questions or need assistance with setting up or using the platform, don’t hesitate to contact our office. Let’s work together to make this tax season seamless and stress-free!

5 Key Tax Questions About 2025 Taxes

Thu, 02 Jan 2025 23:31:47 GMT

As the new year begins, it’s natural to be focused on what you might owe or receive as a refund for your 2024 tax return. However, while working through your annual tax filing, it’s a great time to familiarize yourself with adjustments that may impact your tax planning for 2025. Inflation has caused changes to certain thresholds and limits, and understanding these now can help you plan ahead.

Here are answers to five commonly asked questions about 2025 tax figures:

1. How much money can I contribute to an IRA?

If eligible, you can contribute up to $7,000 to a traditional or Roth IRA in 2025. If you’re age 50 or older, you can make an additional $1,000 “catch-up” contribution . Note that these amounts remain the same as in 2024. Keep in mind that your contributions cannot exceed 100% of your earned income if it’s less than the contribution limit.

2. What’s the maximum I can contribute to a 401(k) plan through my job?

The maximum you can contribute to a 401(k) or 403(b) plan rises to $23,500 in 2025 (up from $23,000 in 2024). If you’re 50 or older, you can also make a $7,500 catch-up contribution , which remains unchanged. Exciting news for 2025: Employees aged 60 through 63 can make enhanced catch-up contributions of up to $11,250 , including the $7,500 standard catch-up contribution. This new provision offers more opportunities to save for retirement during your peak earning years.

3. How much must I earn not to pay Social Security tax on my entire salary?

The Social Security tax wage base increases to $176,100 for 2025, up from $168,600 in 2024. This means that you don’t owe Social Security tax on amounts earned above this threshold. However, remember that Medicare tax must still be paid on all earned income regardless of the amount.

4. How much can I give one person without requiring a gift tax return?

The annual gift tax exclusion rises to $19,000 in 2025, up from $18,000 in 2024. This means you can give any individual up to this amount without needing to file a gift tax return. This increase provides more flexibility for tax-efficient giving.

5. How much is the Business Mileage Rate for 2025?

Effective Jan. 1, 2025, the standard mileage rate for the business use of a car, van, pickup truck or panel truck is 70 cents per mile . This is up from 67 cents per mile for 2024. (For medical or eligible moving purposes, the 2025 rate is 21 cents per mile , and for charitable driving, it’s 14 cents per mile , both unchanged from 2024.) These rates apply to gasoline and diesel-powered vehicles and to electric and hybrid-electric automobiles. To protect your deduction, don’t forget to keep detailed mileage records.

Plan Ahead

These are just a few of the tax figures that could impact your financial strategy. Understanding them early can help you make the most of your contributions, deductions, and other planning opportunities. For personalized guidance or more information about 2025 tax changes, reach out to our office HERE or CALL . You can also reach out directly to your preparer. We’re here to help you make informed decisions and optimize your tax position for the year ahead.

UPCOMING TAX DEADLINES JAN./FEB. 2025

Wed, 01 Jan 2025 23:31:44 GMT

UPCOMING TAX DEADLINES

January 15

Employers : Deposit nonpayroll withheld income tax for December 2024 if the monthly deposit rule applies.

Individuals : Pay the fourth installment of 2024 estimated taxes (Form 1040-ES) if not paying income tax through withholding or not paying sufficient income tax through withholding.

Entities : 2025 E-Filing opens for all entity returns.

January 27

Individuals : 2025 E-Filing opens for 1040(individual) returns.

January 31

Employers : File 2024 Form W-2 (Copy A) and transmittal Form W-3 with the Social Security Administration.

Employers : File a 2024 return for federal unemployment taxes (Form 940) and pay any tax due if all the associated taxes weren’t deposited on time and in full.

Employers : Report Social Security and Medicare taxes and income tax withholding for the fourth quarter of 2024 (Form 941) if all of the associated taxes due weren’t deposited on time and in full.

Employers : Provide 2024 Form W-2 to employees.

Businesses : Provide Form 1098, Form 1099-MISC (except for those with a February 18 deadline), Form 1099-NEC and Form W-2G to recipients.

Individuals : File a 2024 income tax return (Form 1040 or Form 1040-SR) and pay the tax to avoid penalties for underpaying the January 15 installment of estimated taxes.

February 10

Employers : File a 2024 return for federal unemployment taxes (Form 940) if all associated taxes due were deposited on time and in full.

Employers : Report Social Security and Medicare taxes and income tax withholding for the fourth quarter of 2024 (Form 941) if all associated taxes due were deposited on time and in full.

Individuals : Report January tip income of $20 or more to employers (Form 4070).

Feeling Charitable? Substantiate Your Gifts to Maximize Charitable Deductions

Fri, 06 Dec 2024 17:53:44 GMT

As the year winds down, charitable giving often takes center stage. While supporting your favorite causes is rewarding, it’s equally important to ensure your generosity qualifies for valuable tax deductions. Proper documentation is key, and the requirements depend on the type and size of your donation. Here’s a guide to substantiating your gifts:

Cash Gifts

Under $250: A canceled check, bank statement, credit card statement, or a receipt from the charity with its name, date, and gift amount suffices.
$250 or More: Obtain a contemporaneous written acknowledgment from the charity stating the amount of the gift. Multiple smaller gifts to the same charity that total $250 or more still follow the rules for gifts under $250.

Noncash Gifts

Under $250: Keep a receipt with the charity’s name, date, location, and a description of the donation.
$250 or More: The charity must provide a written acknowledgment with all the details required for cash gifts, plus a property description.
Over $500: Retain additional records detailing how and when you acquired the property, your adjusted basis, and file Form 8283.
Over $5,000 ($10,000 for closely held stock): Include a qualified appraisal and an appraisal summary signed by both the appraiser and the charity with your return. Publicly traded securities don’t require an appraisal.
Over $500,000 ($20,000 for art): Submit the full signed appraisal with your return.

Goods or Services Received in Exchange

If the charity provides anything in return for your donation (e.g., a book, meal, or event ticket), request the fair market value of the item and subtract it from your deduction.

While tax benefits may not drive your charitable giving, they can influence how much you can afford to donate. Document your gifts thoroughly to ensure you receive the deductions you deserve while supporting the causes you care about.

Tax Planning Considerations of Gifting

Most clients do not qualify to itemize their deductions due to the high standard deduction. Therefore, many clients cannot take advantage of the the charitable contribution deduction. However, if a client chooses to skip one year of charitable contributions and bundle two years together, their overall itemized deductions may be larger than the standard deduction. By implementing this strategy every other year, a client may maximize the benefit of charitable gifting.

A second strategy for clients subject to RMD rules would be to utilize a Qualified Charitable Distribution (QCD) from their IRA, SIMPLE or SEP. This allows the Taxpayer to make their RMD directly to a charity without recognizing taxable income. This satisfies the RMD requirements and helps keep the Taxayer's AGI lower that may affect other phaseouts.

Need assistance or have any questions on these tax implications? Contact our office for guidance: CLICK HERE or CALL (412)875-5719

Converting a Rental or Vacation Home into a Primary Residence: Key Tax Considerations & Step-By-Step Guide

Thu, 05 Dec 2024 18:03:40 GMT

The post-COVID-19 era has prompted many to reconsider where they call home. With remote work and early retirement becoming more common, some are exploring the possibility of converting a rental or vacation property into their primary residence. While this shift offers potential benefits, it also introduces complex tax implications.

The Home Sale Exclusion Under Sec. 121

Taxpayers selling a primary residence may qualify for the Sec. 121 home sale exclusion, allowing them to exclude up to $250,000 ($500,000 for married couples filing jointly) of capital gains from taxable income. To qualify, they must have owned and used the property as their primary residence for at least two of the five years preceding the sale.

However, this exclusion is limited when the property has periods of “nonqualified use,” such as when it served as a vacation home or rental property. Gains attributable to these periods are taxable.

Example: A couple who converts their vacation home into a primary residence and later sells it will need to allocate gains between qualified use (as a primary residence) and nonqualified use (as a vacation home). This calculation ensures the exclusion applies only to the qualified portion.

Rental Property Considerations

When a rental property becomes a primary residence, tax complexities arise from prior use as an income-generating asset. Key factors include:

Depreciation Recapture: Taxpayers must pay taxes on depreciation claimed during the rental period, taxed as ordinary income up to 25%.
Passive Loss Carryforwards: Unused passive losses incurred during the rental period may remain suspended if the property’s sale qualifies partially under Sec. 121.

Example: If a rental property with $50,000 in depreciation and $30,000 in passive loss carryforwards is converted and sold, the depreciation recapture and suspended losses may significantly impact the taxable gain.

Transitioning Expenses and Deductions

Converting a property to a primary residence changes deductible expenses. Expenses like repairs and insurance, previously deductible against rental income, become non-deductible. However, real estate taxes and mortgage interest may still be itemized deductions.

Navigating the Web of Tax Implications

Relocating to a former vacation or rental property involves meticulous tax planning. Taxpayers must understand the nuances of Sec. 121, maintain detailed records of property improvements, and consult professionals to mitigate tax liabilities.

This transition, though complex, offers opportunities for tax savings with proper planning and professional guidance.

Need assistance or have any questions on these tax implications? Contact our office for guidance: CLICK HERE or CALL (412)875-5719

Step-By-Step Guide to Rental/Vacation Home to Primary Residence Conversion

Converting a rental or vacation home into your primary residence involves a mix of practical, legal, and financial considerations. Here’s a step-by-step guide to navigate the process:

1. Legal and Zoning Compliance

Zoning Regulations: Check local zoning laws to ensure the property can be used as a primary residence. Some vacation properties may have restrictions.
Homeowners Association (HOA) Rules: If the home is part of an HOA, confirm that living there full-time is permitted.

2. Financial Adjustments

Mortgage Implications:
Inform your lender if your mortgage was originally for an investment or secondary home. A primary residence typically qualifies for lower interest rates.
Refinancing might be an option to take advantage of better rates.
Tax Considerations:
The property tax rate may change if it transitions to a primary residence.
Rental income and deductions will no longer apply once it's your primary residence.
Capital Gains Exemption: If you later sell the home, you may qualify for exclusions on capital gains (up to $250,000 for individuals, $500,000 for couples) if you’ve lived there for two out of the last five years.

3. Utilities and Infrastructure

Ensure the property has year-round utilities and services such as heating, water, and reliable internet.
Update your mailing address with the post office and all relevant entities.

4. Notify Authorities

Update your driver's license and vehicle registration to reflect your new address.
Change your voter registration.

5. Insurance

Transition from rental or vacation property insurance to a primary homeowner’s insurance policy, which may have different coverage requirements.

6. Lifestyle Adjustments

Consider proximity to work, schools, healthcare, and other amenities you rely on.
Adjust any vacation-focused amenities to better suit everyday living.

7. Inform Tenants (if applicable)

If the property is rented out, provide notice as required by your lease agreement and local laws.

Not Every Disaster Allows for a Casualty Loss Tax Deduction

Wed, 04 Dec 2024 18:03:33 GMT

Natural disasters have affected many Americans in 2024, causing widespread damage to homes and personal property. These losses, known as “personal casualty losses,” result from sudden, unexpected, or unusual events such as hurricanes, tornadoes, floods, earthquakes, fires, acts of vandalism, or terrorist attacks. However, not all personal casualty losses are eligible for a tax deduction.

Eligibility for Deduction

To deduct a casualty loss, you must meet two primary criteria:

Itemized Deductions: You must itemize deductions on your tax return.
Federally Declared Disaster: Through 2025, only losses resulting from federally declared disasters qualify for a deduction.

Exception for Personal Casualty Gains

There is an important exception to the federally declared disaster requirement. If you receive insurance proceeds that exceed the tax basis of your damaged or destroyed property, creating a personal casualty gain , you can deduct personal casualty losses unrelated to a federally declared disaster—but only up to the amount of your personal casualty gains.

Filing for a Previous Year

In some cases, taxpayers can deduct a casualty loss on the tax return for the year preceding the disaster. This allows you to claim a refund by filing an amended return if you’ve already submitted the relevant year’s tax return.

Navigating Complex Rules

Claiming a casualty loss deduction involves understanding nuanced tax rules and filing requirements. If you’re unsure about your eligibility or need assistance with amended returns, consult a tax professional to maximize your potential deductions.

While natural disasters bring significant challenges, careful tax planning can help ease the financial burden and ensure you take advantage of available relief options.

Casualty losses for business related assets are different. Please contact your accountant to discuss the specifics of your situation.

Need assistance?

Contact our office for guidance: CLICK HERE or CALL (412)875-5719

UPCOMING TAX DEADLINES: DECEMBER 2024/JANUARY 2025

Sun, 01 Dec 2024 17:24:33 GMT

UPCOMING TAX DEADLINES

December 16

Calendar-year corporations : Pay the fourth installment of 2024 estimated income taxes, completing Form 1120-W for the corporation’s records.

Employers : Deposit Social Security, Medicare and withheld income taxes for November if the monthly deposit rule applies.

Employers : Deposit nonpayroll withheld income tax for November if the monthly deposit rule applies.

December 31

Don't Miss This Important Deadline

If you’re subject to required minimum distributions (RMDs), you must take your 2024 RMD by Dec. 31 to avoid penalties. RMDs are mandatory withdrawals from retirement plans such as 401(k)s, IRAs, SIMPLE IRAs and SEPs. Roth accounts aren’t subject to RMDs during the owners’ lifetimes. RMDs are taxable income subject to ordinary-income tax (not long-term capital gains) rates.

Previous tax law required RMDs to begin at age 72 and imposed a penalty of 50% on missed withdrawals. The SECURE 2.0 Act raised the age to 73 and lowered the penalty to 25% (or 10% if corrected within two years). Younger taxpayers can be subject to RMDs if they inherited a retirement account. Contact our office as soon as possible for help calculating the correct amount for your RMDs. Here’s more from the IRS: IRS reminds those aged 73 and older to make required withdrawals from IRAs and retirement plans by Dec. 31; notes changes in the law for 2023 Internal Revenue Service

January 10

Individuals : Report December 2024 tip income of $20 or more to employers (Form 4070).

January 15

BOI (update) : Year-end tax planning reminder: Q4 estimates due.

MEDICARE PREMIUMS MAY LEAD TO TAX SAVINGS

Thu, 12 Sep 2024 15:54:47 GMT

If you pay premiums for Medicare health insurance, you may be eligible to claim them as an itemized deduction for medical expenses on your tax return. This can also include premiums for “Medigap” insurance and Medicare Advantage plans, which help cover costs that Medicare Parts A and B don't.

To qualify, you generally need to itemize deductions, and your total medical expenses must exceed 7.5% of your adjusted gross income (AGI). However, if you're self-employed or a shareholder-employee of an S corporation, you may be eligible to claim an "above-the-line" deduction for your health insurance premiums, including Medicare. This option allows you to receive tax benefits without needing to itemize deductions.

It's important to review your options carefully, as Medicare premiums may offer significant tax savings. Contact our office for guidance on claiming medical expense deductions and to develop a tax strategy that fits your individual situation: CLICK HERE or CALL (412)875-5719

UNLOCK VALUABLE BUSINESS TAX CREDITS AND BENEFITS

Sun, 01 Sep 2024 15:54:01 GMT

In today’s challenging economic climate, businesses can benefit significantly from tax incentives and sales tax exemptions. However, many of these opportunities go unclaimed due to a lack of awareness or misconceptions about eligibility. Here are some key tax credits and exemptions that your business might qualify for:

1. Statutory Incentives

Certain tax credits are available “as of right,” meaning that if your business meets the necessary criteria, you can claim them on a timely filed tax return without negotiation. These incentives are designed to encourage businesses to engage in specific activities or invest in economically distressed areas.

Work Opportunity Tax Credit (WOTC): This federal credit ranges from $2,400 to $9,600 per eligible new hire from disadvantaged groups, such as veterans, welfare recipients, convicted felons, and workers with disabilities. To claim this credit, businesses must complete the necessary paperwork.
Research and Development (R&D) Tax Credits: Both state and federal R&D credits may be available to businesses that invest in developing new products, improving processes, or developing internal-use software. The federal credit can be as high as 20% of qualified research expenses over a base amount. Even businesses with no tax liability can carry the credit forward, and start-ups can claim it against up to $500,000 in employer-paid payroll taxes.
Empowerment Zone Incentives: Companies operating in federally designated “empowerment zones” can receive tax credits worth up to $3,000 for each eligible employee.
Industry-Based and Investment Credits: Various states offer credits to attract certain types of industries, such as manufacturing or film production. Investment credits are also available for capital investments made within state borders.

2. Discretionary Incentives

Discretionary tax incentives must be negotiated with government officials. These benefits are typically offered to businesses that promise to bring economic value to a state or locality, such as creating jobs or boosting revenue.

Discretionary incentives might include income and payroll tax credits, property tax abatements, and even reductions in utility rates.

3. Sales Tax Exemptions

In states with sales taxes, exemptions are often available for certain business purchases. Common examples include:

Purchases by retailers for resale,
Manufacturers buying equipment, raw materials, or components for use in the manufacturing process,
Specific tax-exempt entities, and
Agricultural businesses purchasing farming equipment, seeds, fuel, or chemical sprays.

To take advantage of these exemptions, businesses may need to prove eligibility by providing resale or exemption certificates to sellers.

Don’t Miss Out on These Opportunities

Each year, numerous tax credits and incentives go unclaimed simply because businesses are unaware of them or mistakenly believe they’re not eligible. There are many more credits and exemptions available beyond the examples listed here.

To ensure your business receives all the tax benefits it deserves, contact our office for guidance on claiming these valuable incentives and developing a tax strategy tailored to your business’s needs. CLICK HERE or CALL (412)875-5719

UPCOMING TAX DEADLINES: SEPTEMBER/OCTOBER 2024

Sun, 01 Sep 2024 15:53:20 GMT

UPCOMING TAX DEADLINES

September 16

Individuals : Pay the third installment of 2024 estimated taxes (Form 1040-ES), if not paying income tax through withholding or not paying sufficient income tax through withholding.

Calendar-year corporations : Pay the third installment of 2024 estimated income taxes, completing Form 1120-W for the corporation’s records.

Calendar-year S corporations : File a 2023 income tax return (Form 1120-S) and provide each shareholder with a copy of Schedule K-1 (Form 1120S) or a substitute Schedule K-1 if an automatic six-month extension was filed. Pay any tax, interest and penalties due.

Calendar-year S corporations : Make contributions for 2023 to certain employer-sponsored retirement plans if an automatic six-month extension was filed.

Calendar-year partnerships : File a 2023 income tax return (Form 1065 or Form 1065-B) and provide each partner with a copy of Schedule K1 (Form 1065) or a substitute Schedule K1 if an automatic six-month extension was filed.

Employers : Deposit Social Security, Medicare and withheld income taxes for August if the monthly deposit rule applies.

Employers : Deposit nonpayroll withheld income tax for August if the monthly deposit rule applies.

September 30

Calendar-year trusts and estates : File a 2023 income tax return (Form 1041) if an automatic five-and-a-half-month extension was filed. Pay any tax, interest and penalties due.

October 10

Individuals : Report September tip income of $20 or more to employers (Form 4070).

October 15

Individuals : The last day to file an extended 2023 tax return and pay any tax, interest, or penalties due.

SUMMER BUDGETING TIPS

Fri, 21 Jun 2024 14:15:15 GMT

As the summer season approaches, it's the perfect time to not only soak up the sun but also to ensure your finances are in check. Here are 10 budgeting tips designed to help you make the most of your summer while staying on track with your financial goals and objectives.

Budget for Vacations: Plan your summer vacations in advance and budget accordingly. Allocate funds for transportation, accommodation, meals, and activities. Consider using travel rewards or loyalty points to offset costs. Book time during shoulder seasons.
Save on Energy Costs: As temperatures rise, energy bills can increase. Take steps to save on energy costs by using fans instead of air conditioning, investing in energy-efficient appliances, and turning off lights and electronics when not in use.
Plan Affordable Activities: Enjoy the summer without overspending by seeking out free or low-cost activities in your area, such as outdoor concerts, picnics in the park, hiking trails, or visiting local museums and attractions on discounted days.
Maximize Outdoor Entertaining: Host budget-friendly gatherings with friends and family by organizing outdoor picnics, barbecues, or potluck dinners. Pool resources, share responsibilities, and enjoy the company without breaking the bank.
Review Insurance Coverage: Take time to review your insurance policies, including homeowners, renters, auto, and travel insurance. Ensure you have adequate coverage for summer activities, such as water sports or road trips, and explore opportunities to save on premiums.
Summer Job Opportunities: Consider taking on seasonal or part-time employment during the summer months to supplement your income. Look for opportunities in industries such as hospitality, tourism, landscaping, or event planning.
Stay on Top of Financial Goals: Use the summer as an opportunity to revisit your financial goals and track your progress. Adjust your budget, savings contributions, and investment strategies as needed to stay on target.
Utilize Seasonal Sales: Take advantage of summer sales and promotions to purchase items you need at discounted prices, such as outdoor furniture, sporting equipment, or clothing for the upcoming school year.
Plan for Back-to-School Expenses: Start planning and budgeting for back-to-school expenses, including supplies, clothing, and extracurricular activities. Look for sales, coupons, and second-hand options to save on costs.
Review Your Investment Portfolio: Use the summer months to review your investment portfolio and rebalance if necessary. Consider any life changes or market developments that may impact your investment strategy and make adjustments accordingly.

ACT NOW: PREPARING LARGE ESTATES FOR TCJA SUNSET

Sat, 08 Jun 2024 14:20:35 GMT

There are some important upcoming changes that might affect your financial planning. There's a big shift happening regarding estate and gift taxes, and it's something that needs to be considered sooner rather than later.

Starting in 2026, there will be a significant decrease in the estate and gift tax basic exclusion, essentially cutting it in half. This means that if you're thinking about transferring ownership of your assets, now might be the time to do it.

While some are hoping Congress will extend the doubled exclusion, realistically, this might not happen. Waiting until the last minute could leave you scrambling, both mentally and legally. Setting up trusts and transferring assets takes time, and affected clients will want to avoid any last-minute rush.

Currently, the exclusion stands at $13,610,000, but after January 1, 2026, it drops to around $7 million. That's a significant change that could affect your estate planning and potential tax liabilities. By taking action now, you could potentially save a substantial amount in estate taxes.

When we talk about transferring assets, it's essential to understand the implications. Transferring assets during your lifetime means the recipient inherits your basis, while holding onto them until death allows for a basis step-up for your heirs. This difference could influence your decision-making process.

At Stevans & Associates, we want to make sure you have all the information you need to make these decisions. That's why it's crucial to start planning now and not wait until the last minute. Let's work together to evaluate your estate planning situation and determine the best course of action for you and your family.

Please get in touch with a tax planner at our office to discuss the best options for your situation: (412)875-5719

Many other tax laws are anticipated to change after December 31, 2025 that may affect you. We will highlight each of these changes in future articles.

EXTENSION FILED. WHAT'S NEXT? IMPORTANT INFORMATION & DEADLINES

Sat, 01 Jun 2024 14:21:01 GMT

Tax Day has come and gone, but if an extension was filed, your new filing deadline is Tuesday, October 15, 2024. So, what next? Don't procrastinate.

While, an extension moves the filing deadline it does NOT move the payment deadline. If you owe taxes, that money was still due by April 15th. We encourage you to pay an estimate of what is owed, to limit interest and penalties. If you cannot pay your taxes in full, the IRS recommends pay what you can and set up an installment plan. Reach out to your tax advisor for help with this process.

If you are on extension and pay quarterly estimates, please remember your Q2 payments are due June 15, 2024 and Q3 estimates are due September 15, 2024. Partnership and S-corporations are due September 15th as well. S&A is encouraging all clients that are not waiting for K-1s from a passthrough entity to have their returns completed by August 31, 2024.

Next steps, to ensure adequate time to complete your return:

As soon as possible, open the email from SafeSend
Utilizing SafeSend Organizers :
Complete the tax organizer
Learn to use SS Organizers: HERE
Upload documents electronically – source documents & any IRS Correspondence
Documents MUST be in PDF format
Links to convert documents and photos to PDF
iPhone : LINK
Android : LINK
Other phone applications : Adobe Scan, Tiny Scanner, CamScanner, Microsoft Lens

Once your return is complete:

You will receive another email from SafeSend
Utilizing SafeSend Returns :
Review your return
Sign required forms
Print required forms
Make any online tax payments
Step by Step using SafeSend Returns: HERE
Pay invoices HERE

For more information on the SafeSend Suite and how Stevans & Associates is implementing and using this service, please contact your tax advisor to set up a consultation or call our office at (412)875-5719.

2024 TAX SEASON RECAP

Wed, 01 May 2024 14:21:40 GMT

It was a successful January for getting more clients in compliance with 1099 reporting. The key to this is to start early in the year, provide subcontractors with W-9s, obtain social security and employer identification numbers, and keep your accounting up to date. This also helps with workers' compensation insurance audits. More stringent 1099 reporting laws are anticipated in the near future and penalties for non-compliance can be burdensome. It is best to be diligent now and not wait until year end.

S&A continues to implement new technologies. Starting in 2023, the Firm implemented SafeSend Organizers and Returns. In 2024 we implemented additional SafeSend products - Signatures, Exchange, and Extensions. The SafeSend suite of products streamlines the data collection and return delivery process for the client and the tax professional. This software also provides high level security for your personal documents and information. S&A is continually looking for ways to implement technologies that will make filing season less taxing for all.

S&A is encouraging all clients to utilize this time saving software. Although the client adoption rate has been very high, we are recommending that all clients learn how to use the software before it is the only option. Tax season is stressful for everyone and utilizing this software will help reduce the stress for all and provide a better experience.

SafeSend Suite has redefined the way tax and accounting firms handle the entire tax engagement,

while providing an easy-to-use interface for the clients. Learn more:

A second innovative technology S&A implemented this year was Sure Prep Tax Automation software. Sure Prep was purchased by Thomson Reuters this year and was immediately available to be integrated with the TR tax software that we utilize. This software helps reduce data input errors utilizing OCR technology and allows the tax professional to spend more time tax planning and advising and not on data entry . Additionally, this software helps the tax professional organize, notate and bookmark the many documents, as well as provides unique insights on potential missing and unreviewed documents. We believe this software has been a great addition to our technology stack. Although clients may not visualize the benefits provided by this implementation, be assured that S&A is utilizing leading edge technology to provide top of line professional services.

"The hardest thing to understand in the world is the income tax." - Albert Einstein

A third incredible software implemented this year was the Beta version of Thomson Reuters Checkpoint Edge tax research program utilizing AI. This research technology allows S&A tax professionals to not only provide federal tax research but also multi-jurisdictional research for clients doing business across the country. The program utilizes AI to help the professional to properly word the inquiry to extract the best research results available from the millions of pages of tax code, regulations, revenue rulings/procedures, court cases, and treaties. S&A will provide the best answer for your situation as this software will help us as, "We Listen, We Analyze, We Advise and We Resolve."

Our goal with the implementation of these technologies is to provide our preparers with the tools to best accommodate our clients while providing our clients with a seamless tax and accounting experience.

CORPORATE TRANSPARENCY ACT (CTA) - BENEFICIAL OWNERSHIP INFORMATION (BOI) REPORTING REQUIREMENT

Tue, 06 Feb 2024 20:33:41 GMT

Starting January 1, 2024, a significant number of businesses will be required to comply with the Corporate Transparency Act (“CTA). The CTA was enacted into law as part of the National Defense Act for Fiscal Year 2021. The CTA requires the disclosure of the beneficial ownership information (otherwise known as “BOI”) of certain entities from people who own or control a company. 

It is anticipated that 32.6 million businesses will be required to comply with this reporting requirement. The intent of the BOI reporting requirement is to help US law enforcement combat money laundering, the financing of terrorism and other illicit activity.  

The CTA is NOT a part of the tax code. Instead, it is a part of the Bank Secrecy Act, a set of federal laws that require record-keeping and report filing on certain types of financial transactions. Under the CTA, BOI reports will not be filed with the IRS, but with the Financial Crimes Enforcement Network (FinCEN), another agency of the Department of Treasury.  

Below is some preliminary information for you to consider as you approach the implementation period for this new reporting requirement. This information is meant to be general-only and should not be applied to your specific facts and circumstances without consultation with competent legal counsel and/or other retained professional adviser .  

What entities are required to comply with the CTA's BOI reporting requirement?  

Entities organized both in the U.S. and outside the U.S. may be subject to the CTA's reporting requirements. Domestic companies required to report include corporations, limited liability companies (LLCs) or any similar entity created by the filing of a document with a secretary of state or any similar office under the law of a state or Indian tribe. 

Domestic entities that are  not  created by the filing of a document with a secretary of state or similar office are not required to report under the CTA.  

Foreign companies required to report under the CTA include corporations, LLCs or any similar entity that is formed under the law of a foreign country and registered to do business in any state or tribal jurisdiction by filing a document with a secretary of state or any similar office.  

Are there any exemptions from the filing requirements?  

There are 23 categories of exemptions. Included in the exemptions list are publicly traded companies, banks and credit unions, securities brokers/dealers, public accounting firms, tax-exempt entities and certain inactive entities, among others. Please note these are not blanket exemptions and many of these entities are already heavily regulated by the government and thus already disclose their BOI to a government authority. 

In addition, certain “large operating entities” are exempt from filing. To qualify for this exemption, the company must:  

Employ more than 20 people in the U.S.

Have reported gross revenue (or sales) of over $5M on the prior year's tax return;  and   Be physically present in the U.S. 

Who is a beneficial owner?  

Any individual who, directly or indirectly, either: 

Exercises “substantial control” over a reporting company, or

Owns or controls at least 25 percent of the ownership interests of a reporting company 
 

An individual has substantial control of a reporting company if they direct, determine or exercise substantial influence over important decisions of the reporting company. This includes any senior officers of the reporting company, regardless of formal title or if they have no ownership interest in the reporting company. 

The detailed CTA Regulations define the terms "substantial control" and "ownership interest" further. Click the button below for the detailed regulations.

When must companies file?  

There are different filing timeframes depending on when an entity is registered/formed or if there is a change to the beneficial owner's information. 

New entities (created/registered in 2024) — must file within 90 days

New entities (created/registered after 12/31/2024) — must file within 30 days

Existing entities (created/registered before 1/1/24) — must file by 1/1/25 

Reporting companies that have changes to previously reported information or discover inaccuracies in previously filed reports — must file within 30 days 

What sort of information is required to be reported?  

Companies must report the following information: full name of the reporting company, any trade name or doing business as (DBA) name, business address, state or Tribal jurisdiction of formation, and an IRS taxpayer identification number (TIN). 

Additionally, information on the beneficial owners of the entity and for newly created entities, the company applicants of the entity is required. This information includes — name, birthdate, address, and unique identifying number and issuing jurisdiction from an acceptable identification document (e.g., a driver's license or passport) and an image of such document. 

Risk of non-compliance  

Penalties for willfully not complying with the BOI reporting requirement can result in criminal and civil penalties of $500 per day and up to $10,000 with up to two years of jail time.

Please get in touch with our office to discuss your business situation.

YOU SHOULD CONTACT YOUR ATTORNEY FOR GUIDANCE AND FILING.

WHO QUALIFIES TO FILE A TAX EXTENSION Q&A

Mon, 05 Feb 2024 20:53:50 GMT

Important Note:

An extension extends the time to file BUT NOT THE DUE DATE OF YOUR TAX PAYMENT . When an extension is filed without payment you may incur interest and penalties each month until your balance is paid. For this reason, we recommend that you pay as much as possible by the Due Date.

The following information can help us estimate Taxes Due with your Extension request:

Amounts of Estimated Tax or other Income Tax Payments made in 2023.
Any significant changes in income this year.
Any other items that may affect your 2023 Tax Liability.

EXTENSION FAQS:

Who qualifies to file for a tax extension?

EVERYONE that needs to file a tax return.

When do you need to file for a tax extension?

Before April 15th (the 2023 original filing deadline).

What form do you use to file for a tax extension?

IRS Form 4868 and PA form REV-276.

If you have a filing requirement in other states, other state forms may apply as well.

Does this extend the time I have to pay my taxes?

NO, taxes are due on April 15th.

What if I don’t pay the full amount due with my extension?

IRS Penalties accrue at 0.5% of unpaid tax each month, not to exceed 25% of unpaid tax.
Interest accrues at the current IRS rate of 7% per year.

When is the Extended Tax Return Due Date?

Six months after the original due date, typically October 15th.

Why would I want to file a tax extension?

To provide more time to receive and assemble tax documents.
Is more cost effective than amending a return with inaccurate information.
To allow for sufficient analysis and tax saving advice based on current IRS interpretation and guidance, revised tax forms and software updates.

Does an extension increase my chance of being audited?

No, the IRS selects returns to audit based on unreported items and variations from the ordinary income and deduction statistics.

GOVERNMENT SHUTDOWN AND YOUR TAX FILING

Fri, 02 Feb 2024 15:49:39 GMT

As busy season approaches, we want to keep you informed about a potential government shutdown in the coming weeks and its potential impact on our services. While the timing and likelihood remain uncertain, we are committed to ensuring minimal disruption and providing you with the best possible outcome.

Here are a few considerations during this period:

Tax Filing Timing:

Despite a government shutdown, all tax obligations, including payments and payroll, remain in effect.
Please adhere to the usual tax filing deadlines and send your records based on our agreed-upon schedule.
The filing deadline is Monday, April 15th, 2024
To meet the filing deadline, the completed organizer & supporting information needs to be received by our office no later than Friday, March 22, 2024

Electronic Filing:

Considering potential reductions in IRS services, we strongly recommend filing your taxes electronically.
Electronic filing is more efficient and helps avoid potential delays in processing; we can assist with electronic payment methods as well.
Utilize SafeSend to send documents electronically
Documents MUST be in PDF format
Links to convert documents and photos to PDF
iPhone : LINK
Android : LINK
Other phone applications : Adobe Scan, Tiny Scanner, CamScanner, Microsoft Lens

IRS Correspondence:

Contacting the IRS by phone may be challenging during the shutdown.
Inform us of any automated letters from the IRS, even if received during the shutdown.
Use SafeSend Signatures to sign your 2848 Power of Attorney forms, if needed.

IRS Examinations:

IRS examinations are likely to be paused during the shutdown.
We will coordinate with you and the IRS to consider deadlines and reschedule appointments as needed.

If you have any questions or concerns, please don't hesitate to contact our office. Your success is our priority, and we are here to navigate these challenges together.

Consider Filing an Extension:

Give yourself more time to accumulate 100% of your tax documents.
Allow time for the new tax laws to go into effect so you won't have to amend.
Allow time for analysis and software updates, this allows for more accuracy.
Click Here to see "Who Qualifies to File a Tax Extension" Q&A

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