Some people get more time to file without asking; Anyone else can request an automatic extension

Direct from the IRS:

WASHINGTON —Anyone can request an automatic tax-filing extension, but some people get extra time without asking, according to the Internal Revenue Service.

The IRS estimates that more than 14.6 million taxpayers will get an automatic extension this filing season, either by filing a form or making an electronic tax payment. But some taxpayers, such as disaster victims, those serving in a combat zone and Americans living abroad, get more time, even if they don’t ask for it. Here are details on each of these special tax-relief provisions.

Victims of certain federally declared disasters (Learn More Here)
Some disaster victims may have extra time to file their tax returns and pay any taxes due. Currently, taxpayers affected by the Nov. 30, 2018, earthquake in parts of Alaska have until April 30, 2019, to file and pay. Similarly, those affected by the March 3, 2019, tornadoes and severe storms in parts of Alabama have until July 31, 2019, to file and pay. Residents of California impacted by wildfires on Nov. 8, 2018, have until April 30, 2019, to file and pay. And the March 9, 2019, winter storms and flooding in parts of Nebraska and the March 12, 2019, severe storms and flooding in parts of Iowa have until July 31, 2019, to file and pay. This relief applies to tax returns and tax payments currently due within the relief periods.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Thus, taxpayers need not contact the IRS 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.
This relief also includes additional time for making a 2018 IRA contribution and making estimated tax payments.

Combat zone taxpayers (Learn More Here)
Military service members and eligible support personnel serving in a combat zone have at least 180 days after they leave the combat zone to file their tax returns and pay any taxes due. This includes those serving in Iraq, Afghanistan and other combat zones. A complete list of designated combat zone localities can be found in Publication 3, Armed Forces’ Tax Guide, available on IRS.gov.
Combat zone extensions also give affected taxpayers more time for a variety of other tax-related actions, including contributing to an IRA. Various circumstances affect the exact length of the extension available to any given taxpayer.

Taxpayers outside the United States (Learn More Here)
U.S. citizens and resident aliens who live and work outside the U.S. and Puerto Rico have until June 17, 2019 to file their 2018 tax returns and pay any taxes due. They actually have two extra days because the normal June 15 extended deadline falls on Saturday this year.
The special June 17 deadline also applies to members of the military on duty outside the U.S. and Puerto Rico who do not qualify for the longer combat zone extension. Affected taxpayers should attach a statement to the tax return explaining which of these situations apply.
Though taxpayers abroad get more time to pay, interest -- currently at the rate of six percent per year, compounded daily -- applies to any payment received after the April deadline.

Everyone else
Taxpayers who don’t qualify for any of these three special situations can still get more time to file by submitting a request for an automatic extension of time to file. This will extend their deadline to file until Oct. 15, 2019. However, their tax payments are still due by the April due date.

An easy way to get the extra time is through Free File on IRS.gov. In a matter of minutes, anyone, regardless of income, can use this free service to electronically request an extension on Form 4868. To get the extension, taxpayers must estimate their tax liability on this form.

Another option is to pay electronically and get a tax-filing extension. The IRS will automatically process an extension when a taxpayer selects Form 4868 and makes a full or partial federal tax payment by the April due date using Direct Pay, the Electronic Federal Tax Payment System (EFTPS) or a debit or credit card. Under this option, there is no need to file a separate Form 4868.

​Electronic payment options are available at IRS.gov/payments.
​

Direct from the IRS- Tax deadline approaches: IRS dispels five myths about tax refunds

WASHINGTON ― As the April tax-filing deadline approaches, the Internal Revenue Service understands that taxpayers are anxious to get details about their tax refunds. This has led to a number of common myths about refunds that often circulate on social media.
While there’s no secret way for taxpayers to find out when their refund will be issued, there are some key facts that can help people understand the refund process. Taxpayers should keep in mind the IRS issues nine out of 10 tax refunds in less than 21 days. And the easiest way to check on a refund is “Where’s My Refund?”, an online tool available on IRS.gov and through the IRS2Go app.
People can use “Where’s My Refund?” to check on the status of their tax return within 24 hours after the IRS receives an e-filed return or four weeks after a mailed paper return. The “Where’s My Refund?” tool is updated no more than once every 24 hours, usually overnight, so there’s no need to check the status more often.
Taxpayers should only call the IRS tax help hotline to talk to a representative if it has been:

• 21 days or more since their tax return was e-filed,
• Six weeks or more since their return was mailed, or when
• “Where’s My Refund?” tells the taxpayer to contact the IRS.

Below are five common myths about tax refunds:
Myth 1: Calling the IRS or a tax professional will provide a better refund date
Many people mistakenly think that talking to the IRS or calling their tax professional is the best way to find out when they will get their tax refund. In reality, the best way to check the status of a refund is online through the “Where’s My Refund?” tool at IRS.gov or via the IRS2Go mobile app. Alternatively, those without Internet access can reach “Where’s My Refund?” by calling the automated refund hotline at 800-829-1954. 
Taxpayers eager to know when their refund will be arriving should use the "Where's My Refund?" tool rather than calling and waiting on hold or ordering a tax transcript. “Where’s My Refund?” has the same information available to IRS telephone assistors so there is no need to call unless requested to do so by “Where’s My Refund?”
Myth 2: Ordering a tax transcript is a ‘secret way’ to get a refund date
Ordering a tax transcript will not help taxpayers find out when they will get their tax refund. While taxpayers can use a transcript to validate past income and tax filing status for mortgage, student and small business loan applications and to help with tax preparation, they should use “Where’s My Refund?” to check the status of their refund.
"Where’s My Refund?" shows the processing of the tax return from receipt to completion. It will tell the taxpayer their tax return has been received and if the refund has been approved or sent.
Myth 3: ‘Where’s My Refund?’ must be wrong because there’s no deposit date yet
Updates to “Where's My Refund?” ‎on both IRS.gov and the IRS2Go mobile app are made once each day – usually overnight. Even though the IRS issues most refunds in less than 21 days, it’s possible a refund may take longer for a Variety of Reasons including when a return is incomplete or needs further review.
This means that in some cases, a taxpayer who filed later may receive their refund sooner than someone who filed earlier in the season. The IRS will contact taxpayers by mail when it needs more information to process their tax return. Also, remember to consider the time it takes for financial institutions to post the refund to the taxpayer’s account or to receive a check in the mail.
Myth 4: ‘Where’s My Refund?’ must be wrong because a refund amount Is less than expected
There are several factors that could cause a tax refund to be larger or smaller than expected.
Situations that could decrease a refund include:

• Math errors or mistakes;
• Delinquent federal taxes;
• State taxes, child support, student loans or other delinquent federal nontax obligations; and
• IRS holds a portion of the refund while it reviews an item claimed on the return.

The IRS will mail the taxpayer a letter of explanation if these adjustments are made. Some taxpayers may also receive a letter from the Department of Treasury's Bureau of the Fiscal Service if all or part of their refund was reduced and offset to pay certain financial obligations.
Myth 5: Getting a refund this year means there’s no need to adjust withholding for 2019
Annual tax planning is for everyone. To help avoid an unexpected tax outcome next year, taxpayers should make changes now to prepare for when they file 2019 tax returns next year. This can mean adjusting tax withholding with their employer or increasing estimated or additional tax payments.
Checking withholding is important every year, and the IRS encourages people to do a Paycheck Checkup. This is especially important for anyone who got an unexpected result from filing their tax return this year because they had too much or too little withheld from their paycheck in 2018.
Use the IRS Withholding Calculator to determine whether the right amount is being withheld. If an adjustment is needed, taxpayers should submit a 2019 Form W-4, Employee’s Withholding Allowance Certificate, to their employer as soon as possible.
​

​Other successful business owners have told us that one or more of the following are their biggest business concerns. Recently, the GOA (Great O'Hare Association) conducted a survey through it's Business Advocacy Committee asking the same question: Rank Legislative Issues in Order of Highest Concern for You.

GLM askes their clients the following question to learn more about what the business owner is thinking.

Which concern(s) do you have about your business?

• Rising labor costs (Employee)
• Health Insurance
• Workers Comp
• Government Regulations
• Declining Sales (Strategy)
• Taxes (Financial)
• Fighting Fires (Process)
• Tight Cash Flow (Financial)
• Errors, Mistakes, Quality (Process)
• Productivity & Attitude (Employees)
• Equipment Capacity (Equipment)
• Customer Demands (Strategy)
• Not having anyone to talk with (Owner Partner Issues)
• Other:                                                                            

The GOA Survey showed that Taxes is the largest concern (over 45% or those survey choose it) for business owners and GLM clients agree.                                                                                                       

Other successful business owners tell us they have a good relationship with their accounting firm. They indicate this has occurred through a unique process that allows them to spend more time working on other key elements of their job.  They say the result is increased results without increasing the number of hours they work.

Perhaps you may want to see some of the same results in your business. If you do, please contact us.

If you are also looking to stay in the loop on local, state and federal business regulations and taxes, you may want to get involved in the Local Business Association and Elk Grove Chamber of Commerce, the GOA. Learn more at www.theGOA.com 

You should make every effort to prepare or ‘groom’ your business so it is sold successfully at the first opportunity. While the financial advisors you appoint will work with you to address issues specific to your company, there are a number of general grooming points worth considering (even before you appoint advisors) to maximize the value of your business:

Sales & Profitability: Historically, you may have been setting your prices, and thus your profit margins, at levels designed to create barriers to entry for your competition. If you are planning for a business sale your focus is likely to be short term strategies. It will be time to re-examine your market and customer base to see if higher sales and turnover levels are achievable. If the proposed sale itself is a number of years away, you should consider performing a strategic review of the entire business.

Operating Costs: You should regularly review your operating expenses but this is especially so when preparing your business for sale. You need to identify avenues to reduce expenses without affecting the operational effectiveness of your business.

Profit Trends: Apart from current margins, a purchaser will be looking at profit trends. Buyers are looking to see stable and steady yearly profit trends. Therefore, risky projects should be avoided and longer-term contracts that may prove to be onerous should be fully considered before acceptance. Unprofitable contracts need to be reevaluated and, if appropriate, terminated, as it is quite possible they will be detrimental to the value of your business.

Management Team: The purchaser of your business will be looking to acquire a high caliber management team. It may be worth reviewing your corporate structure to ensure that job titles and role descriptions adequately reflect the contribution that your management team makes to your business. Any re-structure needs finalization well in advance of an anticipated sale. A purchaser may also want assurance that the management team is supportive of your decision to sell or at least that it is likely to stay with the business for a reasonable period post-transaction. You should consider talking to management - how cooperative will they be? You never know, they may be interested in buying the business themselves.

Asset Base: Are there any assets in the business that may be of little or no interest to potential purchasers- e.g. short-term investments, under-utilized property, equipment or perhaps surplus cash? Think about realizing and removing them from the business before the sale. It is also worthwhile having all your property assets valued individually.

Restructuring: If your business has more than one division, some thought should be given to restructuring it into a number of stand-alone entities and perhaps selling these separately. Any such reorganization will have potential tax implications and other complexities associated with it and it will be important to take professional advice before undertaking any such initiative.

Tax Planning: Details of the various tax factors that you need to consider are set out in section 4 of this guide. Initial points to address include making sure that all your Corporation Tax, PAYE and VAT returns and payments are up to date. In addition, any tax losses that your company may have built up over the years may now have a value to the extent that they are available for use by the potential purchaser. Personal tax planning opportunities should be discussed with your tax adviser.

Valuation Expectations: You must have realistic valuation expectations. Valuation is important but do not let it get in the way of securing the sale.
​
Timing: Deciding the best time to sell your business can be a difficult decision to make. Factors to be considered when making this decision include the level of corporate activity in your industry; the state of the economy; changes in sector relevant legislation; and available tax reliefs (e.g. do you have to be a certain age to avail of certain retirement reliefs or pension planning opportunities).

Special Pricing for “Just Getting Accounting Started”
 
Do it yourself   We charge one time fee      Get QuickBooks for almost 50% off though GLM, Inc.

Accounting Coaching
A personalized coach for your accounting needs, with custom-built support.

• Provide 120 minutes of live coaching and 30 days of email access to your GLM specialist
• Learn bookkeeping the right way
• Set up your online account
• Migrate from another platform
• Review and fix your existing account

Who uses this: It’s for entrepreneurs who want to do their own bookkeeping with confidence. Whether you’re new to accounting software, or have years of experience and want to utilize the software to the fullest extent, we will coach you to succeed.
 
Do it Yourself(ish)  We charge for Set up and Training  Per quarter for check in & reconciliation
Same as above PLUS Quarterly we will:

• Reconcile bank accounts.
• Prepare accurate and timely financial statements.

 
Have us do it       We charge for set up and Training        Per Month fee for Bookkeeping
Same as Above PLUS a dedicated bookkeeper to take care of your monthly financial tasks.

• Categorize transactions
• Reconcile accounts
• Collaborate with your tax accountant
• Consultation on business and review of financial statements and tax matters, quarterly.

 
Set up Corporate Status:              $450 minimum plus “Pass-though” costs to State and Federal
 
Available for all packages above (Quote based on time, Range $75-$200 Quarterly):

• Payroll Check writing
• Prepare Quarterly payroll tax returns and monitor tax deposits.
• Preparation of monthly state sales tax returns and city sales tax returns.

 
Tax Returns:
·         Corporate tax return Preparation: based on time, range $1,200 to $1,900 
·         Personal Tax Preparation: based on time, range $400 to $600
 
Work with you to minimize your fee with us and maximize our service to you
Tom Gosche       630-675-8971     tomg@glmfinancial.com
​

Kicking off the annual “Dirty Dozen” list of tax scams, the Internal Revenue Service today warned taxpayers of the ongoing threat of internet phishing scams that lead to tax-related fraud and identity theft.
The IRS warns taxpayers, businesses and tax professionals to be alert for a continuing surge of fake emails, text messages, websites and social media attempts to steal personal information. These attacks tend to increase during tax season and remain a major danger of identity theft.

Phishing schemes are the first of the 2019 “Dirty Dozen” scams. 11 others will be featured in GLM's Social Media.

“Taxpayers should be on constant guard for these phishing schemes, which can be tricky and cleverly disguised to look like it’s the IRS,” said IRS Commissioner Chuck Rettig. “Watch out for emails and other scams posing as the IRS, promising a big refund or personally threatening people. Don’t open attachments and click on links in emails. Don’t fall victim to phishing or other common scams.”

The IRS also urges taxpayers to learn how to protect themselves by reviewing safety tips prepared by the Security Summit, a collaborative effort between the IRS, state revenue departments and the private-sector tax community.

“Taking some basic security steps and being cautious can help protect people and their sensitive tax and financial data,” Rettig said.

New variations on phishing schemesThe IRS continues to see a steady stream of new and evolving phishing schemes as criminals work to victimize taxpayers throughout the year. Whether through legitimate-looking emails with fake, but convincing website landing pages, or social media approaches, perhaps using a shortened URL, the end goal is the same for these con artists: stealing personal information.

In one variation, taxpayers are victimized by a creative scheme that involves their own bank account. After stealing personal data and filing fraudulent tax returns, criminals use taxpayers' bank accounts to direct deposit tax refunds. Thieves then use various tactics to reclaim the refund from the taxpayer, including falsely claiming to be from a collection agency or the IRS. The IRS encourages taxpayers to review some basic tips if they see an unexpected deposit in their bank account.

Reporting phishing attempts

If a taxpayer receives an unsolicited email or social media attempt that appears to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), they should report it by sending it to phishing@irs.gov. Learn more by going to the Report Phishing and Online Scams page on IRS.gov.
​
Tax professionals who receive unsolicited and suspicious emails that appear to be from the IRS and/or are tax-related (like those related to the e-Services program) also should report it to: phishing@irs.gov.
The IRS generally does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels
​

The 2019 Business to Business Expo is here & the theme is.... WOODSTOCK!

Great (FREE!) networking opportunity. Visit the exhibitors' booths and mingle with the other attendees.

Come and visit the GLM booth, mention you saw this Blog and get a free gift! (in addition to the infamous mechanical pencil)

Thursday, March 7th | 2pm-6pm
Avalon Banquets
1905 E. Higgins Road
Elk Grove Village

Visit the GLM Booth at the GOA Expo!
 
The GLM mechanical Pencils are back!
Get yours by visiting the GLM Booth at the GOA Expo on March 7th

​ “The Friendly Club,” as the Rotary Club of Schaumburg / Hoffman Estates is known, was founded in 1969 by a dedicated group of local business leaders committed to making their community and the world a better place to live. 

The group of 70 business and community leaders are devoted to the ongoing efforts of Rotary International’s 1.2 million neighbors, friends, and community leaders who come together to create positive, lasting change in local and global communities.  Together they have raised millions of dollars used to enrich the lives of youth, families and seniors, through our own efforts and by providing assistance to other charitable organizations.

The member's differing occupations, cultures, and countries give us a unique perspective. Our shared passion for service helps us accomplish the remarkable.

What makes Rotary Club of Schaumburg / Hoffman Estates DIFFERENT? The unique point of view and approach gives distinct advantages:

• They see differently: The multidisciplinary perspective helps see challenges in unique ways. 
• They think differently. Applying leadership and expertise to social issues—and find unique solutions.
• They act responsibly: Members are all volunteers with a passion and perseverance to create lasting change so every dime raised goes toward projects. 

The members can be found in your  community, as well as, around the globe.

As the 2019 tax filing season gets into full swing, the Internal Revenue Service reminds taxpayers who owe of the many easy payment options.

The IRS anticipates that most taxpayers will be affected by major tax law changes. While most will get a tax refund, others may find that they owe taxes, many of whom may qualify for a waiver of the estimated tax penalty that normally applies. See Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts, and its instructions for details.

“The IRS understands there were many changes that affected people last year, and the new penalty waiver will help taxpayers who inadvertently had too little tax withheld,” said IRS Commissioner Chuck Rettig. “We encourage people to check their withholding again this year to make sure they have the right amount of tax withheld for 2019.”

The IRS urges people with a filing requirement and a balance due to file by the April 15 deadline even if they cannot pay in full. Taxpayers in this situation should pay what they can and consider a payment plan for the remaining balance.

Taxpayers who owe taxes can choose among the following payment options:

• IRS Direct Pay allows payment directly from a checking or savings account. This service is free.
• Electronic Federal Tax Payment System, or EFTPS. Pay by phone or online. This service is free.
• Debit or credit card payment.  This service is free, but the processing company may charge a fee. Fees vary by company.
• Check or money order made payable to the United States Treasury (or U.S. Treasury) either in person or through the mail.
• Cash payments at some IRS offices or at a participating PayNearMe location. Some restrictions apply. Taxpayers should not send cash through the mail.

Taxpayers who are unable to pay their taxes in full should act quickly. Several payment options are available including:

• Online Payment Agreement — Individuals who owe $50,000 or less in combined income tax, penalties and interest and businesses that owe $25,000 or less in payroll tax and have filed all tax returns may qualify for an Online Payment Agreement. Most taxpayers qualify for this option, and an agreement can usually be set up in a matter of minutes. Online applications to establish tax payment plans, like online payment agreements and installment agreements, are available Monday – Friday, 6 a.m. to 12:30 a.m.; Saturday, 6 a.m. to 10 p.m.; Sunday, 6 p.m. to midnight. All times are Eastern time.
• Installment Agreement — Installment agreements paid by direct deposit from a bank account or a payroll deduction will help taxpayers avoid default on their agreements. It also reduces the burden of mailing payments and saves postage costs. Even taxpayers who don’t qualify for a payment agreement may still pay by installment. Certain fees apply.
• Delaying Collection — If the IRS determines a taxpayer is unable to pay, it may delay collection until the taxpayer's financial condition improves.
• Offer in Compromise — Certain taxpayers qualify to settle their tax bill for less than the amount they owe by submitting an offer in compromise. To help determine eligibility, use the Offer in Compromise Pre-Qualifier tool.

In addition, taxpayers can consider other options for payment, including getting a loan to pay the amount due. In many cases, loan costs may be lower than the combination of interest and penalties the IRS must charge under federal law.

Check tax withholding
The IRS urges all taxpayers to check their withholding for 2019, especially those who made withholding adjustments in 2018 or had a major life change. Those most at risk of having too little tax withheld from their pay include taxpayers who itemized in the past but now take the increased standard deduction as well as two-wage-earner households, employees with non-wage sources of income, and those with complex tax situations.
To help taxpayers allocate the appropriate withholding to their paychecks throughout the year in 2019, an updated version of the agency’s online Withholding Calculator is now available on IRS.gov.  It’s never too early to check your withholding. While it’s a good idea any year, starting early in 2019 is particularly important as most tax filers adjust to the revised tax rates, deductions and credits.
​
Online tools
The IRS urges taxpayers to take advantage of the many tools and other resources available on IRS.gov. Taxpayers have a variety of options to get help filing and preparing their tax returns on IRS.gov, the official IRS website. Taxpayers can also find answers to their tax questions and resolve tax issues online. The Let Us Help You page answers most tax questions, and Publication 5136, IRS Services Guide, links to these and other IRS services.
Taxpayers can go to IRS.gov/account to securely access information about their federal tax account. They can view the amount they owe, pay online or set up an online payment agreement; access their tax records online; review the past 18 months of payment history; and view key tax return information for the current year as filed. Visit IRS.gov/secureaccess to review the required identity authentication process.
​

Business owners can talk with GLM to find out how tax reform affects their bottom line
Business may find they have questions about how 2017’s tax reform legislation affects their organization and their bottom line. GLM is a great place to find answers. Here also are several pages on the IRS website that address tax reform. Businesses can bookmark these pages and check back often, as the IRS regularly updates them with new information.

Tax reform provisions that affect businesses
This is the main page for businesses. Users can link from this page out to more resources with additional information, which is organized in sections by topic. These sections include a plain language description and links to news releases, notices and other technical guidance. Here are a few of the main tax topics on this page and the subtopics highlighted in each section:

• Income: taxation of foreign income, carried interest, and like-kind exchanges
• Deductions and depreciation: fringe benefits, moving expenses, standard mileage rates, deduction for passthrough businesses, and business interest expenses
• Credits: employer credit for paid family and medical leave, and the rehabilitation tax credit
• Taxes: blended federal income tax and withholding
• Accounting method changes
• Opportunity zones

This page also includes information for specific industries, such as farming, insurance companies, and aircraft management services.

Tax reform resources
From this page, people can link to helpful products including news releases, tax reform tax tips, revenue procedures, fact sheets, FAQs and drop-in articles. Organizations can share these materials including the drop-in articles with employees, customers and volunteers to help them better understand tax reform.
​
Tax Cuts and Jobs Act: A comparison for businesses
This side-by-side comparison can help businesses understand the changes the new law made to previous law. It will help businesses then make decisions and plan accordingly. It covers changes to deductions, depreciation, expensing, tax credits, and other tax items that affect businesses.

Most people do not have the time and inclination to do all the research themselves. GLM is available to answer the questions you have about your personal and business taxes.

Tom Gosche
630-675-8971
​tomg@glmfinancial.com