​Don your mask for a night of intrigue and imagination!
 
The Rotary Club of Schaumburg-Hoffman Estates is proud to present the 44rd Annual Rotary Classic, Live and in person on May 6, 2023 at the Hyatt Schaumburg. Event is Black Tie Optional!
 Honorary Co-Chair- Rebecca Darr, President/ CEO WINGS
Under Darr’s leadership, WINGS has dramatically increased its ability to provide pathways to independence for people whose lives have been devastated by domestic violence. Her vision, leadership, and collaborative spirit have truly made a difference in the lives of so many people!

The Rotary Club of Schaumburg-Hoffman Estates is committed to selecting projects and activities that will impact senior wellbeing, literacy, and area poverty at all ages. We endeavor to be responsive to the changing needs of our community and to work alongside village officials, community leaders and organizations that share this commitment.

Your purchase helps to:

• break the cycle of domestic violence (WINGS)
• empower and heal abused children (Children’s Advocacy Center)
• foster a lifetime of learning for children in high-risk environments (Children’s Home & Aid Society)
• feed the hungry at locations like School Districts 54 & 211, Schaumburg Township, and Partners for Our Communities
• provide recreation for children and adults with disabilities (Northwest Special Recreation Association)
• award annual scholarships (Harper College)
• enable older adults to stay in their homes longer (Kenneth Young Center)
• provide nutritious meals/fellowship to seniors (Schaumburg Senior Program)
• partner with Chandler's to provide holiday meals for 215 Veterans and their families (Trickster Veteran Holiday Dinner)
• provided personal protection equipment to our community partners
• help children to build trust by shopping with police officers (Shop with a Cop)

​None of this would be possible without the support of our generous sponsors. Become a SPONSOR today! Contact George Panopoulos at thepanopoulosgroupinc@gmail.com to secure your spot!

Thanks to a slowing economy, SBA loans have been growing in popularity. So much so The Daily Herald had a Featured article about them in the March 19th, 2023 Sunday Business Section.

​www.dailyherald.com/business/20230319/thanks-to-a-slowing-economy-sba-loans-have-been-growing-in-popularity

No matter what, you need to talk with someone, an expert that helps business owners daily! We advise you to talk with one of the contact at the bottom of this Matching Ideas with Resources Blog.

Typical Situation: Our client is looking to expand their business or perhaps make a business acquisition.  They might be looking to purchase equipment, inventory, or real estate.  Maybe they also need working capital to expand.  We are primarily looking to lend to businesses in underserved areas to create quality jobs

When you hear a business owner say: 
• “I would like to expand but I my bank won’t lend the full amount I need”
• “I just got declined for a loan from my bank to buy R/E, equipment, inventory, working capital”
• “I want to buy out my partner (or purchase a business) but can’t get financing”
• “My bank approved the equipment loan but they only gave me a 24 month term, I’m afraid of a payment that large.”

SBA (Small Business Administration) Bankers serve as a trusted banking solution. They Make $1MM-$5MM loans to small businesses.

How they Work: They use Government loan programs, to businesses that meet SBA guidelines. They are  able to do this by treating the building acquisition as simply an extension of their existing business, rather than a new acquisition.  

Matching Ideas with Resources:

Good recordkeeping year-round helps taxpayers avoid tax time frustration-

Wading through a pile of statements, receipts and other financial documents when it’s time to prepare a tax return can be frustrating for people who haven’t managed their records. By knowing what they need to keep and how long to keep it, people can develop a good recordkeeping system year-round and make filing their return easier.

Good recordkeeping can also help taxpayers understand their situation when they receive letters or notices from the IRS.

Good records help:

• Identify sources of income. Taxpayers may receive money or property from a variety of sources. The records can identify the sources of income and help separate business from non-business income and taxable from nontaxable income.
• Keep track of expenses. Taxpayers can use records to identify expenses for which they can claim a deduction. This will help determine whether to itemize deductions at filing. It may also help them discover potentially overlooked deductions or credits.
• Prepare tax returns. Good records help taxpayers file their tax return quickly and accurately. Throughout the year, they should add tax records to their files as they receive them to make preparing a tax return easier.
• Support items reported on tax returns. Well-organized records make it easier to prepare a tax return and help provide answers if the return is selected for examination or if the taxpayer receives an IRS notice.

In general, taxpayers should keep records for three years from the date they filed the tax return. Taxpayers should develop a system that keeps all their important information together. They can use a software program for electronic recordkeeping. They could also store paper documents in labeled folders.

Records to keep include:

• Tax-related records. This includes wage and earning statements from all employers or payers including payment apps or cards, such as Form W-2, 1099-K, 1099-Misc, 1099-NEC. Other records include interest and dividend statements from banks, certain government payments like unemployment compensation, other income documents and records of virtual currency transactions. Taxpayers should also keep receipts, canceled checks, and other documents that support income, a deduction, or a credit reported on their tax return.
• IRS letters, notices and prior year tax returns. Taxpayers should keep copies of prior year tax returns and notices or letters they receive from the IRS. These include adjustment notices when an action takes place occurs on the taxpayer's account.
• Property records. Taxpayers should also keep records relating to property they dispose of or sell. They must keep these records to figure their basis for computing gain or loss.
• Business income and expenses. Business taxpayers should find a bookkeeping method that clearly and accurately reflects their gross income and expenses. Taxpayers who have employees must keep all employment tax records for at least four years after the tax is due or paid, whichever is later.
• Health insurance. Taxpayers should keep records of their own and their family members' health care insurance coverage. If they're claiming the premium tax credit, they'll need information about any advance credit payments received through the Health Insurance Marketplace and the premiums they paid.

​For more information on what to do to get ready to file taxes, taxpayers should visit the Get Ready page of IRS.gov.

​Aspiring entrepreneurs: learn the basics of setting up a business
New entrepreneurs can start out on the right foot by making sure they understand the tax responsibilities of running a business. The process can seem daunting, but IRS.gov has resources to help new business owners.
Here are a few things new entrepreneurs need to do when starting their business.
Choose a business structure
The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are:

• Sole proprietorship: An unincorporated business owned by an individual. There's no distinction between the taxpayer and their business.
• Partnership: An unincorporated business with ownership shared between two or more people.
• Corporation: Also known as a C corporation. It's a separate entity owned by shareholders.
• S Corporation: A corporation that elects to pass corporate income, losses, deductions and credits through to the shareholders.
• Limited Liability Company: A business structure allowed by state statute.

Choose a tax year
A tax year is an annual accounting period for keeping records and reporting income and expenses. A new business owner must choose either:

• Calendar year: 12 consecutive months beginning January 1 and ending December 31.
• Fiscal year: 12 consecutive months ending on the last day of any month except December.

Apply for an employer identification number
An EIN is also called a federal tax identification number. It's used to identify a business. Most businesses need one of these numbers. It's important for a business with an EIN to keep the business mailing address, location and responsible party up to date. IRS regulations require EIN holders to report changes in the responsible party within 60 days. They do this by completing Form 8822-B, Change of Address or Responsible Party and mailing it to the address on the form.
Have all employees complete these forms

• Form I-9, Employment Eligibility Verification U.S. Citizenship and Immigration Services
• Form W-4 Employee's Withholding Allowance Certificate

Pay business taxes
The form of business determines what taxes must be paid and how to pay them.
Visit state's website
Prospective business owners should visit their state's website for info about state requirements.

​The Internal Revenue Service today reminded all taxpayers – particularly those who are identity theft victims – of an important step they should take to protect themselves from tax fraud.
 
Some identity thieves use taxpayers’ information to file fraudulent tax returns. By requesting Identity Protection PINs from the Get an IP PIN tool on IRS.gov, taxpayers can prevent thieves from claiming tax refunds in their names.
 
Identity Protection PINs and how to get one
An IP PIN is a six-digit number the IRS assigns to an individual to help prevent the misuse of their Social Security number or Individual Taxpayer Identification Number (ITIN) on federal income tax returns. The IP PIN protects the taxpayer’s account, even if they’re no longer required to file a tax return, by rejecting any e-filed return without the taxpayer’s IP PIN
 
Taxpayers should request an IP PIN:

• If they want to protect their SSN or ITIN with the IRS,
• If they want to protect their dependent’s SSN or ITIN with the IRS,
• If they think their SSN, ITIN or personal information was exposed by theft or fraudulent acts or
• If they suspect or confirm they’re a victim of identity theft.

 
Taxpayers can go to IRS/getanippin to complete a thorough authentication check. Once authentication is complete, an IP PIN will be provided online immediately. A new IP PIN is generated every year for added security. Once an individual is enrolled in the IP PIN program, there’s no way to opt-out.
 
The IRS may automatically assign an IP PIN if the IRS determines the taxpayer’s a victim of tax-related identity theft. The taxpayer will receive a notification confirming the tax-related ID theft incident along with an assigned IP PIN for future tax-return filings.
 
Taxpayers will either receive a notice with their new IP PIN every year in early January for the next filing season or they must retrieve their IP PIN by going to IRS/getanippin.
 
Tax-related identity theft and how to handle it
Tax-related identity theft occurs when someone uses a taxpayer’s stolen SSN to file a tax return claiming a fraudulent refund. In the vast majority of tax-related identity theft cases, the IRS identifies a suspicious tax return and pulls the suspicious return for review. The IRS then sends a letter to the taxpayer and won’t process the tax return until the taxpayer responds.
 
Depending on the situation, the taxpayer will receive one of three letters asking them to verify their identity:

• Letter 5071C, asks them to use an online tool to verify their identity and tell the IRS if they filed the return in question.
• Letter 4883C, asks the taxpayer to call the IRS to verify their identity and tell the IRS if they filed the return.
• For those who have been a victim of a data breach, they may receive Letter 5747C and be asked to verify their identity in-person at a Taxpayer Assistance Center.

If the taxpayer receives any of these letters, they don’t need to file an https://www.irs.gov/newsroom/when-to-file-an-identity-theft-affidavit(Form 14039). Instead, they should follow the instructions in the letter.
 
When to file an Identity Theft Affidavit
If a taxpayer hasn’t heard from the IRS but suspects tax-related identity theft, they should complete and submit a Form 14039, Identity Theft Affidavit. Signs of possible tax-related identity theft include:
 

• A taxpayer can’t e-file their tax return because a duplicate tax return was filed using their Social Security number. (Check that there’s no error in the SSN, such as transposed numbers.)
• A taxpayer can’t e-file because a dependent’s Social Security number or ITIN was already used by someone on another return without the taxpayer’s knowledge or permission. (Also check that the SSN or ITIN is correct and be sure the dependent hasn’t filed a separate tax return.)
• A taxpayer receives a tax transcript in the mail they did not request.
• A taxpayer receives a notice from a tax preparation software company confirming an online account was created in their name, and they did not create one.
• A taxpayer receives a notice from their tax preparation software company that their existing online account was accessed or disabled when they took no action.
• A taxpayer receives an IRS notice informing them that they owe additional tax, or their refund was offset to a balance due, or that they have had collection actions taken against them for a year they did not earn any income or file a tax return.
• The IRS sends a taxpayer a notice indicating that the taxpayer received wages or other income from an employer for whom they didn’t work.
• The taxpayer was assigned an Employer Identification Number (EIN), but they did not request or apply for an EIN.

 
The IRS will work to verify the legitimate taxpayer, clear the fraudulent return from the taxpayer’s account and, generally, place a special marker on the account that will generate an IP PIN each year for the taxpayer who is a confirmed victim.
 
For information about tax-related identity theft, see Identity Protection: Prevention, Detection and Victim Assistance and IRS Identity Theft Victim Assistance: How It Works on IRS.gov. The Federal Trade Commission website also includes information about tax-related identity theft.
 
Signs of non-tax-related identity theft; no need to file form 14039
Non-tax-related identity theft occurs when someone uses stolen or lost personal identifiable information (PII) to open credit cards, obtain mortgages, buy a car or open other accounts without their victim’s knowledge.
 
Potential evidence of non-tax-related identity theft can include:

• An individual receives balance due bills from companies with whom they didn’t conduct business, magazine subscriptions they didn’t order, notifications of a mortgage statement and/or credit cards for which they didn’t apply.
• An individual receives notices of unemployment benefits for which they didn’t apply.
• An individual receives a Notice CP 01E, Employment Identity Theft.
• An individual receives a Form W-2 or 1099 from a corporation or employer from whom they did not receive the income reported and they have not received a notice or letter from the IRS questioning them about that income.
• A taxpayer can’t e-file because a dependent’s SSN or ITIN was already used by someone who is known to the taxpayer but is not the parent or legal guardian, and the taxpayer did not provide permission for that person to claim the dependent. For additional information about this issue, see Publication 1819, Divorce and non-custodial, separated, or never married parents.

 
Victims of non-tax-related identity theft don’t need to report these incidents to the IRS but should take steps to protect against the type of identity theft they’ve experienced.

 With the winter months upon us, it’s a great time to offer much needed safety training!  Harper College is offering ten different workplace safety classes for FREE to contractors and employers! As a recipient of OSHA’s Susan Harwood Grant, we are able to offer the following classes for free. We also have four of the ten classes offered in Spanish.
 
Here is the list of the classes offered:

• Introduction to Safety and Health Management for Managers and Supervisors
• Preventing Slips, Trips and Falls: A Training Program for Small Businesses
• Electrical Hazards Awareness
• Lockout/Tagout
• Fall Hazard Awareness in Construction and General Industry
• Confined Space Hazards in Construction and General Industry
• Chemical Hazards in Manufacturing and General Industry
• Machine Guarding and Tool Safety in General Industry
• Introduction to Infectious Diseases
• Infectious Diseases: Controls and Mitigation

In addition, here are three classes that are offered in Spanish:

• CONCIENTIZACIÓN DEL PELIGRO DE CAÍDAS/Fall Hazards (Spanish)  
• Prevencion de Resbalones, Tropezones y Caidias: Preventing Slips, Trips, and Falls (Spanish)
• SENSIBILIZACIÓN SOBRE PELIGROS ELÉCTRICOS Y BLOQUEO/ETIQUETADO?: Electrical Hazards (SPANISH)
• Peligros en Espacios Confinados en la Construcción y la Industria General: Confined Space Hazards

 
Connect with Pete Almeida 847-925-6023 ap32525@harpercollege.edu 

Direct from the IRS- February 10, 2023

WASHINGTON – The Internal Revenue Service provided details today clarifying the federal tax status involving special payments made by 21 states in 2022. 

The IRS has determined that in the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns. 

During a review, the IRS determined it will not challenge the taxability of payments related to general welfare and disaster relief. This means that people in the following states do not need to report these state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island. Alaska is in this group as well, but please see below for more nuanced information.
In addition, many people in Georgia, Massachusetts, South Carolina and Virginia also will not include state payments in income for federal tax purposes if they meet certain requirements. For these individuals, state payments will not be included for federal tax purposes if the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit. 

The IRS appreciates the patience of taxpayers, tax professionals, software companies and state tax administrators as the IRS and Treasury worked to resolve this unique and complex situation.
The IRS is aware of questions involving special tax refunds or payments made by certain states related to the pandemic and its associated consequences in 2022. A variety of state programs distributed these payments in 2022 and the rules surrounding their treatment for federal income tax purposes are complex. While in general payments made by states are includable in income for federal tax purposes, there are exceptions that would apply to many of the payments made by states in 2022.

To assist taxpayers who have received these payments file their returns in a timely fashion, the IRS is providing the additional information below.

Refund of state taxes paid
If the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit (for example, because the $10,000 tax deduction limit applied) the payment is not included in income for federal tax purposes.
Payments from the following states in 2022 fall in this category and will be excluded from income for federal tax purposes unless the recipient received a tax benefit in the year the taxes were deducted.

• Georgia
• Massachusetts
• South Carolina
• Virginia

General welfare and disaster relief payments
If a payment is made for the promotion of the general welfare or as a disaster relief payment, for example related to the outgoing pandemic, it may be excludable from income for federal tax purposes under the General Welfare Doctrine or as a Qualified Disaster Relief Payment.  Determining whether payments qualify for these exceptions is a complex fact intensive inquiry that depends on a number of considerations. 

The IRS has reviewed the types of payments made by various states in 2022 that may fall in these categories and given the complicated fact-specific nature of determining the treatment of these payments for federal tax purposes balanced against the need to provide certainty and clarity for individuals who are now attempting to file their federal income tax returns, the IRS has determined that in the best interest of sound tax administration and given the fact that the pandemic emergency declaration is ending in May, 2023 making this an issue only for the 2022 tax year, if a taxpayer does not include the amount of one of these payments in its 2022 income for federal income tax purposes, the IRS will not challenge the treatment of the 2022 payment as excludable for income on an original or amended return.

Payments from the following states fall in this category and the IRS will not challenge the treatment of these payments as excludable for federal income tax purposes in 2022.

• Alaska[1]
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Hawaii
• Idaho
• Illinois[2]
• Indiana
• Maine
• New Jersey
• New Mexico
• New York2
• Oregon
• Pennsylvania
• Rhode Island

For a list of the specific payments to which this applies, please see this chart.

​Other payments
Other payments that may have been made by states are generally includable in income for federal income tax purposes.  This includes the annual payment of Alaska’s Permanent Fund Dividend and any payments from states provided as compensation to workers.

​[1] Only for the supplemental Energy Relief Payment received in addition to the annual Permanent Fund Dividend.
[2] Illinois and New York issued multiple payments and in each case one of the payments was a refund of taxes, which should be treated as noted above, and one of the payments is in the category of disaster relief payment.

In recent years, the gig economy has changed how people do business and provide services. Taxpayers must report their gig economy earnings on a tax return – whether they earned that money through a part-time, temporary or side gig. The IRS’ Gig Economy Tax Center provides information and resources to help this group of entrepreneurs and workers understand and meet their federal tax obligations.
Here are key things for individuals involved in the gig economy to remember as they get ready to file in 2023.

Gig economy income is taxable

• Taxpayers must report all income on their tax return unless excluded by law, whether they receive an information return such as a 1099 or not.
• Individuals involved in the gig economy may also be required to make quarterly estimated tax payments to pay income tax and self-employment tax, which includes Social Security and Medicare taxes. The last estimated tax payment for 2022 is due Jan. 17, 2023.

Workers report income according to their worker classification
Gig economy workers who perform services, such as driving a car for booked rides, running errands and other on demand work, must be correctly classified. Classification helps the taxpayer determine how to properly report their income.

• If they are employees, they report their wages from the Form W-2, Wage and Tax Statement.
• If they are an independent contractor, they report their income on a Schedule C, Form 1040, Profit or Loss from Business - Sole Proprietorship.

The business or the platform determines whether the individual providing the services is an employee or independent contractor. The business owners can use the worker classification page on IRS.gov for guidance on properly classifying employees and independent contractors.

Expenses related to gig economy income may be deductible
Individuals involved in the gig economy may be able to deduct expenses related to their gig income, depending on tax limits and rules.

• Taxpayers may be able to lower the amount of tax they owe by deducting certain expenses.
• It is important for taxpayers to keep records of their business expenses.

Pay the right amount of taxes throughout the year
An employer typically withholds income taxes from their employees' pay to help cover taxes their employees owe.
Individuals involved in the gig economy have two ways to cover their taxes due:

• If they have another job where they are considered an employee, they can submit a new Form W-4, Employee's Withholding Certificate to their employer to have more taxes withheld from their paycheck to cover the tax owed from their gig economy activity.
• They can make quarterly estimated tax payments throughout the year.

More information:
Publication 525 Taxable and Nontaxable Income
Publication 1779, Independent Contractor or Employee

​Share this tip on social media -- #IRSTaxTip: Tax tips for gig economy entrepreneurs and workers. http://ow.ly/TZ4T50MnUmE
​