Category: Tax Tips

On this week’s special 2 episode MSATP TV, Joann Platt joined us to give you insight on The Business Builders ThinkTank, how it works and how to join.

Watch on YouTube.

On part 2 of this week’s MSATP TV, Jonathan Pocius of Payroll Services joined us to give a full rundown on how he can help you and your clients with your payroll needs as well as the effects of the infrastructure bill on payroll law.

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Bob Jennings will be joining us next week on Thursday, February 3 at 10 a.m., episode of MSATP TV to tell you about the added benefits of this service.

Be sure to Like/Follow us on Facebook so you can catch MSATP TV live every week!

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An Overview of the Credit for Other Dependents | Tax Tip 2022-12

Taxpayers with dependents who don’t qualify for the child tax credit may be able to claim the credit for other dependents. This is a non-refundable credit. It can reduce or, in some cases, eliminate a tax bill but, the IRS cannot refund the taxpayer any portion of the credit that may be left over.

For more information, click here.

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All Third Economic Impact Payments Issued; Parents of Children Born in 2021, Guardians and Other Eligible People Who Did Not Receive All of Their Third-Round EIPs Can Claims Up to $1,400 Per Person Through the 2021 Recovery Rebate Credit  | IR-2022-19

The IRS announced that all third-round Economic Impact Payments have been issued and reminds people how to claim any remaining stimulus payment they’re entitled to on their 2021 income tax return as part of the 2021 Recovery Rebate Credit.

Parents of a child born in 2021 – or parents and guardians who added a new child to their family in 2021 – did not receive a third-round Economic Impact Payment for that child and may be eligible to receive up to $1,400 for the child by claiming the Recovery Rebate Credit.

For more information, click here.

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IRS Chief Counsel Looking for 200 Experienced Attorneys to Focus on Abusive Tax Deals | IR-2022-17

The IRS Office of Chief Counsel announced plans to hire up to 200 additional attorneys to help the agency combat syndicated conservation easements, abusive micro-captive insurance arrangements and other tax schemes.

“Combating abusive tax transactions that threaten to undermine our tax system remains a top priority for our enforcement efforts,” said IRS Commissioner Chuck Rettig. “It’s critical we work to ensure a fair tax system and adding these new attorneys will help us in on our ongoing efforts in this arena.”

For more information, click here.

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Maryland Estimated Tax Payments

We received a call from a member about Maryland Estimated Tax Payments. He had sent his payment in several weeks ago for the 4^th quarter and it still has not cleared. He said he just got off the phone with the State of Maryland and was told they are way behind in processing these payments; the estimated time for processing is approximately 4-6 weeks.

On this week’s MSATP TV, Cliff Reiter of National Accounting Sales shared how he can help you sell your accounting practice. From listing your practice to interest rates on financing a potential purchase, Cliff covered all the details! Click the button below to tune into the episode.

Watch on YouTube.

Coming Up: On Tuesday, January 25 at 10 a.m., Joann Platt will be going through the benefits of joining one of our Business Builders ThinkTank groups. Then on Thursday, January 27 at 10 a.m., Jonathan Pocius of Payroll Services, LLC will discuss how the company can help you and your clients with your payroll needs.

Be sure to Like/Follow us on Facebook so you can catch MSATP TV live every week!

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Applicable Federal Rates| RR-2022-03

Revenue Ruling 2022-03 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274.

For more information, click here.

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Things to Remember When Filing Income Tax Returns in 2022 | IR-2022-16

In order to validate and successfully submit an electronically filed tax return to the IRS, taxpayers need their Adjusted Gross Income, or AGI, from their most recent tax return. For those waiting on their 2020 tax return to be processed, here’s a special tip to ensure the tax return is accepted by the IRS for processing. Make sure to enter $0 (zero dollars) for last year’s AGI on the 2021 tax return. For those who used a Non-Filer tool in 2021 to register for an advance Child Tax Credit or third Economic Impact Payment in 2021, they should enter $1 as their prior year AGI. Everyone else should enter their prior year’s AGI from last year’s return. Remember, if using the same tax preparation software as last year, this field will auto-populate.

For more information, click here.

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Upcoming Legislative Briefings and Hearings | Maryland Chamber of Commerce

Tuesday, January 25, 2022

• House: HB0072, HB0078, HB0145, HB0258
• Senate: SB0078, SB0001

Wednesday, January 26th, 2022

• House: HB0060, HB0251, HB0085
• Senate: SB0011, SB0126, SB0267

Thursday, January 27, 2022

• Senate: SB0066

For more information, click here.

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How Small Business Owners Can Deduct Their Home Office From Their Taxes | Tax Tip 2022-10

The home office deduction allows qualified taxpayers to deduct certain home expenses when they file taxes. To claim the home office deduction on their 2021 tax return, taxpayers generally must exclusively and regularly use part of their home or a separate structure on their property as their primary place of business.

For more information, click here.

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IRS Revises Form 1024, Application for Recognition of Exemption Under Section 501(a) or Section 521 of The Internal Revenue Code, as Part of Ongoing Efforts to Improve Service

As part of ongoing efforts to improve service for the tax-exempt community, the IRS issued the revised Form 1024, Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code and its instructions to allow electronic filing.

Beginning January 3, 2022, applications for recognition of exemption on Form 1024 must be submitted electronically online at Pay.gov. The IRS will provide a 90-day grace period during which it will continue to accept paper versions of Form 1024 (Rev. 01-2018) and letter applications; however, after April 4 the Form 1024 must be submitted electronically.

For more information, click here.

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IRS Issues Guidance Regarding the Retroactive Termination of the Employee Retention Credit

The IRS issued guidance for employers regarding the retroactive termination of the Employee Retention Credit. The Infrastructure Investment and Jobs Act, which was enacted on November 15, 2021, amended the law so the Employee Retention Credit applies only to wages paid before October 1, 2021, unless the employer is a recovery startup business.

For more information, click here.

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Common Tax Return Mistakes That Can Cost Taxpayers | COVID Tax Tip 2022-11

Tax laws are complicated but the most common tax return errors are surprising simple. Many mistakes can be avoided by filing electronically. Tax software does the math, flags common errors and prompts taxpayers for missing information. It can also help taxpayers claim valuable credits and deductions.

For more information, click here.

The Maryland Legislature has overridden a veto by Gov. Larry Hogan to enact legislation amending the Job Creation Tax Credit. The law alters the definitions of “qualified position” and “revitalization area” for purposes of eligibility under the program. The changes apply to job creation tax credits certified after December 31, 2020.

Qualified Position

If a position is filled on or after October 1, 2021, a ” qualified position” is one that:

• is full-time and is of indefinite duration;

• pays at least the prevailing wage for an employee classification for which there is a prevailing wage rate, or for any other employee classification, 150% of the state minimum wage;

• is located in the state;

• provides career advancement training;

• affords the employee the right to collectively bargain for wages and benefits;

• provides paid leave;

• is considered covered employment for unemployment insurance purposes;

• entitles the employee to workers’ compensation benefits;

• offers employer-provided health insurance benefits with monthly premiums that do not exceed 8.5% of the employee’s net monthly earnings;

• offers retirement benefits;

• is newly created as a result of the establishment or expansion of a business facility in a single location in the state; and

• is filled.

Revitalization Area

In addition to previous qualifications for revitalization areas, the law specifies that a revitalization area includes a Tier 1 county.