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Tag: tax

Important Updates In Response to COVID-19

Posted on by Navaal Mahdi

Maryland Income Tax Deadline Extended to July 15, 2020 | Comptroller of Maryland

Following yesterday’s press conference from the White House where it was announced there would be a 90-day extension of the April 15th deadline for federal income tax payments, Maryland Comptroller Peter Franchot has announced that Maryland business and individual income taxpayers will be afforded the same relief. No interest or penalty for late payments will be imposed if 2019 tax payments are made by July 15, 2020.

“Right now, Maryland taxpayers and businesses must stay focused on their health and keeping their lights on, both in their homes and businesses,” Comptroller Franchot said. “Extending the due date for Maryland state individual and business income tax payments helps us keep cash flowing in our economy and into employees’ bank accounts.”

Taxpayers who take advantage of the federal extension to file their return, which is separate from the relief granted today to pay their taxes, will continue to be automatically granted an extension on their Maryland tax filings. No additional extension forms are required. Fiscal year filers with tax years ending January 1, 2020, through March 31, 2020, are also eligible for the July 15, 2020 extension.

Read the press release here.

 

White House Announces 90 Day Relief on Tax Payments

During the White House daily press conference yesterday, Treasury Secretary Steven Mnuchin announced that tax payments up to $1 million for individuals can be deferred for 90 days.

The $1 million threshold was chosen for those who report pass-through business income on their individual return. Corporations are able to defer up to $10 million in tax payments. Penalties and interest that would otherwise apply during this nearly three-month period will be waived.

Americans who can file taxes by the April 15 deadline should file normally. Refunds will not be affected for those who file.

 

COVID19 and the CPA Exam | NASBA

NASBA, AICPA, Prometric and the Boards of Accountancy (Boards) have been monitoring the COVID19 crisis and have taken the following actions to ensure the health and safety of our CPA Exam candidates.

Effective immediately, Prometric will close test centers in the United States and Canada for a period of 30 days. They anticipate re-opening test centers on April 16, 2020, however, please note the specific date will depend on circumstances that are changing daily. No action is required on the part of the candidate. Prometric will cancel scheduled appointments and clear the Notices to Schedule (NTS) for candidates to reschedule at their convenience.

NASBA has recommended that the Boards of Accountancy extend all NTS with expirations between April 1 – June 30, 2020, until September 30, 2020. At this time, no action is required by candidates and there is no need to contact NASBA or your Board of Accountancy. Please monitor our social media channels and website for updates on when the NTS extensions are completed.

NASBA will identify all candidates who have an open NTS and credit expiring through June 30, 2020, and provide this information to Boards with a recommendation to grant an extension of credit if the candidate is impacted by circumstances beyond their control. Due to shutdowns of many board offices, the decisions to extend conditional credit will not be finalized until Boards resume normal operations. There is no need to contact Boards at this time.

The best way to contact NASBA during this time is via email at cpaexam@nasba.org.

How the Wayfair Decision Affects Maryland Businesses

Posted on by Navaal Mahdi

The Comptroller of Maryland has released a Tax Alert regarding the Maryland Sales & Use Tax in reference to the Supreme Court decision in South Dakota v. Wayfair. This Tax Alert is meant to shed light on what is expected of online retailers who sell products or provide a taxable service for use in Maryland.

To recap, the South Dakota v. Wayfair decision overturns the earlier decision made in North Dakota v. Quill Corporation, which stated that businesses must have a physical presence in a state in order for that state to collect and remit sales tax from its earnings. Recently, several states have signed the Streamlined Sales Tax Agreement, a plan aimed at simplifying tax collection, but Maryland is not one of the participating states.

According to the Comptroller, if you have already been collecting and paying sales tax to the state of Maryland, you should continue to do so.

If you have not been collecting and paying sales tax and you sell products or provide a taxable service in Maryland, you should read up on the recent Supreme Court’s Decision to see how it impacts you. We’ve covered this decision on our blog here.

If you would like to start collecting and paying sales tax to the state of Maryland, you need to get a sales and use tax license by completing a Combined Registration Application.

Maryland businesses selling products or taxable services in other states may be required to pay sales tax in those states. The Comptroller recommends directly contacting any states you may have business in if you have any questions regarding this decision.

For a deeper understanding about sales and use tax and to get your questions answered, you can now register for MSATP’s newest seminar/webinar, Sales and Use Tax After the Wayfair Case. To register for the webinar, click here, and to register for the in-person seminar, click here.

A Grad’s Guide to Becoming an Accountant

Posted on by Navaal Mahdi

Accountants are some of the most trusted advisors in business because of their level of involvement with their clients’ fiscal wellbeing. Because of their wide range of knowledge — from taxes to wealth management, in most cases — young CPAs and tax professionals have the potential to become the trusted advisors every business needs.

Here are some tips for graduates and young professionals:

 

1. Apply what you know.

Just because you’ve finished a degree in accounting or finance doesn’t necessarily mean that you’re fully aware how to apply the skills that you’ve learned. Start applying those textbook scenarios to real world happenings. Step outside of your comfort zone and seek opportunities that will allow you to expand your knowledge base and, more importantly, teach you how to solve a wide range of problems for your clients.

 

2. Tell the truth and hold yourself accountable.

Everyone makes mistakes, especially when first starting out in a field, and there’s nothing wrong with that. Think back to any particular moment in your life when you’ve made a mistake, and you’ll notice that you learned a lesson from it. Though making mistakes is okay, it’s essential that if you do make a mistake, you let an experienced coworker know immediately so they can help you recover. Don’t let your ego keep you from asking for help when you need it.

 

3. Stick to deadlines.

A huge part of being an accountant is having the desire to see your clients succeed. If you expect to be seen as an advisor for a business owner, you must stick to all deadlines to ensure that you never let your clients down. Work on your time management skills before tax season, especially if time management is something you struggle with. The most effective way to manage your time is by designating enough of it to each client. Make sure you’re not distracted by trivial and unimportant tasks so you can give your clients the attention they deserve.

Check out our recent blog post about time management to help you stay on top of your workload!

 

4. Build your network.

Don’t be afraid to attend networking events for accountants. Making connections with other professionals, especially those who have years of experience, will only help you become a better accountant or tax preparer. Remember, other professionals want to help you succeed — ask them questions and don’t be afraid to reach out to them for advice. After all, they were once in your shoes too, and they have an idea about what you’re going through.

 

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MSATP offers opportunities to help professionals build their businesses and their networks. Register now for our upcoming Employee to Entrepreneur event on October 25 for your chance to meet other young professionals and learn from experts in the field. The first 25 registrants will receive a free Associate Membership with their registration, so sign up now!

National Harbor IRS Tax Forum

Posted on by Sandy Steinwedel

On July 7 and 8 Sandy Steinwedel, Rick Messenger and I represented the MSATP at the IRS Tax Forum.  The site of the forum was the Gaylord Hotel at National Harbor near Washington, D.C. Many small firm and independent tax professionals expressed interested becoming MSATP members.  Keeping up their skills and staying current with the latest events impacting their profession was the most prevalent reason for their interest.  Over 10 new applications were received during the 2 days and several membership renewals.  Events such as these are important not just for new members, but members who aspire to be informed, better at what they do and peer interaction. While the new state of MD regulations generated their interest initially (and kept Sandy pretty busy) many became engaged on another level.  Especially once they were informed of the many benefits MSATP membership has to offer.  The solo conference was a point of interest for at least 3 of the new members.  The next time you are at an event or seminar make sure you introduce yourself and welcome these new members.  We know that can make all the difference.

IRS Detects Massive Data Breach in “Get Transcript” Application

Posted on by Sandy Steinwedel

Last week the Internal Revenue Service warned of a huge data breach of its on-line “Get Transcript” application that allowed tax returns of approximately 104,000 taxpayers to be accessed by identity thieves.

Has anyone had a client who was touched by this issue?

Working with IRS during the 2014 Tax Season

Posted on by Sandy Steinwedel

Now that tax season is over you can step back and breathe a little easier for a couple of weeks. Then you will begin receiving calls from the clients that are on extension or you may begin calling them. In many cases you will be calling them until October 15th – your next week of craziness.

During these next couple of days of peace and quiet – I would like to hear how your interaction with the Internal Revenue Service worked out this filing season. After IRS Commissioner John Koskinen announced “only to call IRS as a last resort,” I had visions of the phone ringing constantly with tax questions from consumers who were not members or clients. Amazingly the phones were normal – Whew! Maybe this was just us, I have to wonder how others faired over the last four months?? Thoughts? Comments?

MSATP Website

Posted on by Sandy Steinwedel

So if you are like me, you are a busy professional who doesn’t have time to do everything that is competing for your attention.  That said, I’m pretty excited about MSATP’s new website.  Finally!  Succinct seminar offerings right on the front page and easy online registration for courses.  I love talking to Sandy and the staff at the MSATP office but I love the new website’s layout.  Everything I need is right at my fingertips with the new easy to navigate format, where I can get the info and resources I need quickly. There is a Member Discounts section where I can get succinct information about the various discounts that are MSATP has negotiated for all members.  There is savings on office expenses, shipping, and Verizon cellular services as well as tax research services, and IT Support. New on the website are:

  • A discussion board where I can ask questions and get feedback from my colleagues
  • Freecycle – a place to find used equipment that colleagues are letting go of – free.
  • A Lunch and Learn section where I can drop in and listen to brief web presentations on relevant topics to the tax and accounting industry.

Overall I’m really happy with the new layout.  Thanks MSATP for going the extra mile and making it easier to access and use my member benefits.

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