SKR+Co Alert: The Black Forest Fire – Financial Resource Guidance

June 19, 2013

It's hard to believe we're here again – the same place and about the same time as just one year ago. Our hearts go out to all of you suffering from the effects of the Black Forest Fire. This disaster affects our entire community to one degree or another, and we are heartened to see so many reach out to provide help and support to neighbors and strangers.

We also know many of you are still recovering from last year's Waldo Canyon Fire. We haven't forgotten you and know that recovery is not something that happens overnight.

We realize that one area of concern for many may be how to rebuild their financial records that may have been damaged or destroyed. Another concern may be filing the right paperwork with the right agencies at the right time. This e-blast touches on several areas of possible concern with links to some of the best resources to help you and your family, friends, or business. 

As always, please contact us with any specific questions and we'll do our best to help you find the answers. Our thoughts and prayers are with you all. 

Putting the financial pieces back together

Following any disaster, there are many things you can do to help speed your recovery. The links below send you to Red Cross resources to help you regain a sense of balance. They offer suggestions on steps to take immediately, what to do in the initial weeks and months, and how to begin planning again for the future.

Recovering Financially

Picking up the Pieces After a Disaster

Information regarding tax issues

We want to remind you that Stockman Kast Ryan + CO maintains electronic copies of our clients' tax records and would be happy to provide them to you should the need arise. Here are some additional resources you may find helpful.

Colorado Department of Revenue
Information for Taxpayers Affected by Wildfires

Internal Revenue Service
Disaster Assistance and Emergency Relief for Individuals and Businesses

Casualty Losses

The IRS provides helpful information regarding casualty losses due to disaster on their website. But we realize that you may need help sifting through the information, so please contact us if you have questions or need assistance.

Internal Revenue Service
Casualty, Disaster, and Theft Losses – Including Federally Declared Disaster Areas

Contact us 

Again, we realize this is a very difficult time for so many in our community. If we can be of service to you in any way, please contact us at (719) 630-1186 or through our Secure Email.

Additional Resources & Ways to Help

El Paso County Disaster Assistance Center 

(719)444-8301,Open 8-6   
Located at the Citizen Service Center, 1675 Garden of the Gods Road

To help fire victims, CLICK HERE

To Download their Relief & Recovery Guide, CLICK HERE

The American Red Cross, Pikes Peak Chapter

To learn how to donate or volunteer, CLICK HERE

Discover Goodwill is providing emergency vouchers to fire victims.CLICK HERE for more information.

Caring for animals of evacuees
Humane Society Pikes Peak Region

Wildfire Cleanup Guidance
El Paso County Public Health

After the Fire – Your Emotional & Physical Well-Being
Centers for Disease Control

If you were a victim of the Waldo Canyon Fire and would like to participate in a mentoring program to Black Forest Fire victims,CLICK HERE to learn how.

SKR+Co Alert: IRS waives late-payment penalty, Work Opportunity Credit extended, & more!

March 21, 2013

Late-payment penalties for taxpayers affected by delayed forms may be waived by the IRS

Many taxpayers have to file extensions this year because the IRS was not ready to accept certain forms at the beginning of tax season. Therefore, the IRS announced yesterday that it is waiving the late-payment penalty for taxpayers filing one of the 31 delayed forms and who make a good-faith effort to estimate and pay their tax when they file for an extension. The waiver is not automatic, however.

See the full article here.

The IRS extended the filing deadline for the work opportunity tax credit

The IRS announced that it was extending the time employers claiming the work opportunity tax credit (WOTC) have to file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit.

Form 8850 is usually due no later than 28 days after the employee starts work. Under this extension, employers who hires a member of a "targeted group", other than a qualified veteran, between Jan. 1, 2012 and Mar.31, 2013 now have until April 29, 2013 to file the form. Employers who hire a qualified veteran on or after Jan. 1, 2013 through Mar. 31, 2013 also have until April 29, 2013 to file Form 8850.

For more information on the criteria for claiming  the WOTC, please click here or talk with your tax accountant.

Read IRS Notice 2013-14 Here

Employee vs. Independent Contractor

IRS expands Voluntary Classification Settlement Program (VCSP)

The question of how workers are classified – employee or independent contractor – is of increasing interest to the IRS, and they have recently expanded the relief program for employers with misclassiffied workers.

To see if and how this may apply to you, read the full article here.

Please let us know if you have any questions about these articles or if we can be of assistance in any other way. You can contact us at (719) 630-1186 or through our Secure Email. 

SKR+Co Alert: Healthcare act's "play or pay" employer provisions, senior property  tax confusion, IRS identity theft warning + more!

February 28, 2013

IRS releases guidance on health care act's "play or pay" provisions

The IRS has issued extensive proposed regulations implementing the employer-shared responsibility provisions, also known as “play or pay,” of the Patient Protection and Affordable Care Act of 2010. The regulations address numerous topics. This article focuses on which employers must provide affordable health coverage, the requirements for such coverage and the penalties for failing to provide it.

Read the Full Article Here

Clarification for seniors regarding property tax deferral and exemptions in Colorado

There has been some confusion regarding a green mailer insert that many of us received with our annual property tax statement. If not read carefully,  (both sides), this form can be misleading. So to clarify what programs are available to senior citizens in Colorado, we've highlighted both the property tax deferral and exemption information in this article.

Read the Full Article Here

Helpful tools in tracking your refund are getting heavy traffic

On February 14th, the IRS issued a statement that it is experiencing heavy volume on "Where's My Refund?" on irs.gov and also the refund feature on the IRS2go phone app, causing delays and service disruptions.

• Have your Social Security number, filing status and refund amount ready before using a refund tool.
• Only check “Where's My Refund?”  once a day as your information will not change.
• To avoid system delays, the best time to check on refunds is evening and weekends.

What you should know about identity theft

The IRS reported this month that they have seen a significant increase in refund fraud that involves identity thieves who file false claims for refunds by stealing and using someone's Social Security number. We thought this would be a good time to remind you that the IRS does not initiate contact with taxpayers by email. So if you receive such an email soliciting personal or financial information, forward it to the IRS atphishing@irs.gov. For phishing scams by phone, fax or mail, call 1-800-366-4484.

To read IRS Tax Tip, "Ten Things the IRS Wants You to Know About Identity Theft", Click Here.

This alert covers a number of different topics and you may have some questions. Please feel free to contact us by phone at (719) 630-1186 or Secure Email if we can assist you in any way. 

SKR+Co Alert: Employer-owned life insurance, new foreign account rules, & new tax forms!

February 8, 2013

Employers with life insurance contracts on employees, officers and directors, take heed!

We would like to bring to your attention an IRS requirement that many employers have overlooked. If you are an employer with employer-owned life insurance contracts issued after August 17, 2006, you are required by the IRS to report information about this contract on Form 8925. This article will explain the reporting requirements you need to follow.

Read the Full Article Here

Final rules on foreign account reporting are released

The U.S. Department of the Treasury and the IRS have issued comprehensive final regulations implementing Foreign Account Tax Compliance Act (FATCA) information reporting provisions. Under the regulations, foreign financial institutions (FFIs) — including foreign banks, brokers, insurance companies and investment funds — must disclose to the IRS certain information about their U.S.-owned accounts. This article reviews the major provisions of the final regulations and the potential impact on individual taxpayers with foreign accounts.

Read the Full Article Here

Updated Tax Forms  on Our Website!

Although the IRS is still in the process of updating some forms and instructions, many are ready to go! On our website, www.skrco.com, click on the tab, Tax Forms, to see and download or print the forms you need this tax season.

If you have any questions, please contact us at (719) 630-1186 or through ourSecure Email. 

SKR+Co Alert: 1099 reporting, charitable IRA distributions, late tax season opening and more!

January 24, 2013

Form 1099-related questions on your business tax return

The deadline (January 31) is quickly approaching for businesses to issue Form(s) 1099 when applicable. And this year, the IRS may be looking more closely at how the two questions added to the business tax return are answered. This article explains when Form 1099 must be filed, the due dates and penalties involved, as well as how to file.

For Full Article

Newly revived "charitable IRA rollovers" – Time is running out

The American Taxpayer Relief Act of 2012 (ATRA) revives for 2012 and 2013 the opportunity to make tax-free IRA distributions (up to $100,000 per year) for charitable purposes. If you’re age 70½ or older, you can make a direct contribution from your IRA to a qualified charitable organization without owing any income tax on the distribution. This “charitable IRA rollover” can be used to satisfy required minimum distributions.

To help taxpayers take advantage of the 2012 revival, ATRA allows a charitable rollover made in January 2013 to be treated for tax purposes as if it had been made Dec. 31, 2012. And if you took an IRA distribution in December 2012 and contribute it to charity in January 2013, the “direct contribution” requirement is waived; you can contribute the distribution to a qualified charity in January 2013 and treat it as a 2012 direct contribution, provided the other requirements are met.

New, simplified option for claiming home office deduction 

Owners of home-based businesses and home-based workers will have a simpler option to figure the deduction for business use of the home, beginning with the 2013 tax return. The new optional method allows home-based businesses to deduct up to $1,500, based on $5 per square foot and up to 300 square feet. For more information, please read the IRS announcement from January 15, 2013.

Read IRS Announcement HERE.

Late tax season opening for many, but don't delay!

Due to the late passage of the American Tax Relief Act (ATRA), the Internal Revenue Service announced that it will open tax season for individual filers on January 30th. In addition, many forms are still in the process of being revised and will not be available until a later date. And, you may once again have a delay in receiving your 1099s from your brokerage firm.

That being said, as our clients, we strongly suggest that you not delay in gathering your tax information and sending it in to us to begin preparing the return. Even if you have not yet received everything, there is much that we can do today to get your tax return ready for filing which will make the process much quicker once the forms are ready. 

If you have questions about how the filing delays may impact you, please contact us. 

Please let us know if we can answer any questions or help in any way. You can contact us at (719) 630-1186 or through ourSecure Email.

SKR+Co Alert: Specific American Taxpayer Relief Act Changes Affecting  Individuals & Businesses 

January 11, 2013

Last week's e-blast included an overview of the key changes under The American Taxpayer Relief Act of 2012 (ATRA), signed into law Jan. 2, 2013 to address the “fiscal cliff”. This e-blast contains much more detailed information regarding these changes. 

Despite some legislative relief, many individuals will see higher taxes in 2013

The American Taxpayer Relief Act of 2012 does, as its name implies, provide substantial tax relief to many taxpayers. But while higher-income taxpayers will enjoy some benefits, they’ll also see some tax increases. This article provides a closer look at ATRA’s most important changes for individuals, along with the tax planning implications.

For Full Article, Click Here

2013 tax law changes may warrant a review of your estate plan

The ATRA provides substantial estate tax relief compared to the changes that otherwise would have gone into effect in 2013. In addition, it provides increased estate tax law certainty. Nevertheless, ATRA isn’t all positive for estate planning: It increases the estate tax rate compared to the 2012 estate tax law regime. The many changes going into effect in 2013 may warrant an estate plan review. This article details some of the most important changes to consider.

For Full Article, Click Here

American Taxpayer Relief Act will save taxes for many businesses

The ATRA extends and enhances many breaks for businesses. In particular, it provides incentives for businesses to invest in assets, research and people. This article provides an overview of ATRA’s most important changes for businesses, along with the implications for 2012 tax returns and tax planning for 2013 and beyond.

For Full Article, Click Here

Stay Informed with these Resources

We've added a Tax Law Change Update to our website that provides an overview of changes resulting from the American Tax Relief Act.

We’ve recently made some major updates to our Web Tax Guide: We added aTax Law Change Update(see above), incorporated updates throughout the guide in light of the ATRA changes, and added information about 2013 exemptions, limits, and thresholds released by the IRS.
 

Please let us know if you have any questions about these resources, articles, or how the recent tax law changes might affect you. You can contact us at (719) 630-1186 or through our Secure Email.

SKR+Co Alert:  Immediate Payroll and Sales Tax Increases & Overview of Just Passed American Tax Relief Act

January 2, 2013

Social Security tax rates go back up andEl Paso County sales tax also increases, effective Jan. 1, 2013

One item not included in the American Tax Relief Act was an extension of the two percent employee payroll tax cut for social security, implemented in 2010. The rate was 4.2% and will now return to 6.2% on wages earned beginning Jan. 1, 2013. Therefore, employers should make sure their payroll software is updated for the new rate. (QuickBooks, for example, will calculate withholding at the new rate if the Payroll Update is run.) For more information, please click here or see IRS Notice 1036.

Additionally, El Paso County's sales tax rate has also increased, effective Jan. 1, 2013. The rate is now 1.23% from the prior rate of 1.00%. Businesses currently charging sales tax need to update their applicable software and their reporting for this new rate. For more information on the new rate, click here.

What the fiscal cliff deal – passage of the American Tax Relief Act (ATRA) – means for you

After much contention and negotiation, President Obama and Congress finally came to agreement on legislation to address the “fiscal cliff.” The American Tax Relief Act (ATRA) prevents income tax rate increases for all but approximately the top 2% of taxpayers. ATRA also extends other income tax breaks for individuals and businesses and addresses the alternative minimum tax (AMT) and the estate tax. This article provides an overview of some of the act’s key tax law changes.

Read the Full Article Here.

We hope to send you more detailed information regarding how ATRA affects individuals, businesses, and estate planning next week.

Happy New Year! 

All of us at Stockman Kast Ryan + CO wish our clients and friends a very happy, healthy, and prosperous 2013. We look forward to helping you achieve your goals this year and for many years to come. 

If you would like to contact us for any reason, please feel free to call us at (719) 630-1186 or email us through our Secure Email. We look forward to serving you!

SKR+Co Alert: Medicare tax increases, incorrect tax notices, & more! 

December 13, 2012

The IRS provides guidance on additional 0.9% Medicare tax

On Nov. 30, the IRS issued proposed regulations regarding the 0.9% Additional Hospital Insurance Tax on High-Income Taxpayers (commonly referred to as the additional Medicare tax), which takes effect Jan. 1, 2013. This article details how the tax may affect individuals, employers and payroll service providers.

Read the Full Article Here.

The IRS provides guidance for new 3.8% tax on investment income

Recently, the IRS issued proposed regulations regarding the new 3.8% net investment income tax (NIIT, also known as the Medicare contribution tax) that was created by the Health Care and Education Reconciliation Act of 2010 and takes effect Jan. 1, 2013. This article details what investment income is subject to the tax and how to calculate it.

Read the Full Article Here

Incorrect notices sent by the Colorado Department of Revenue

When the Colorado Department of Revenue (CDOR) implemented a new computer system recently, it created mismatches in information. As a result, numerous notices have been generated, many of which are incorrect.

Many of you have called and are concerned because you received a tax notice from CDOR. We're seeing notices disallowing Enterprise Zone credits, credit for taxes paid to another state, Colorado Source capital gains, some issues related to withholding from your W-2, as well as other situations.

Be careful not to jump to conclusions because in most cases, the information filed with CDOR was correct. However, it sometimes costs more to contest the notice than to simply let the credit be disallowed, for example.

If you receive such a notice, call your tax accountant and let us help you determine the facts and what action, if any, should be taken in your specific situation.

2012 Gift tax annual exclusion: Use it or lose it

The 2012 gift tax annual exclusion allows you to give up to $13,000 per recipient tax-free without using up any of your lifetime gift tax exemption. If you and your spouse “split” the gift, you can give $26,000 per recipient. The exclusion is scheduled to increase to $14,000 ($28,000 for split gifts) in 2013.

The gifted assets are removed from your taxable estate, which can be especially advantageous if you expect them to appreciate. That’s because the future appreciation can avoid gift and estate taxes.

But you need to use your 2012 exclusion by Dec. 31 or you’ll lose it. The exclusion doesn’t carry from one year to the next. For example, if you don’t make an annual exclusion gift to your grandson this year, you can’t add $13,000 to your 2013 exclusion to make a $27,000 tax-free gift to him next year.

Year-End Tax Planning

With so much uncertainty regarding taxes and the fiscal cliff, now is a great time to come in and talk through the issues that affect your situation. 

Donating Appreciated Property to Charity

The tax law imposes stringent requirements for deducting charitable gifts of property. The rules are especially tough when donating appreciated property. If taxpayers don’t observe all of them, the tax deduction may be reduced or even eliminated.A recent U.S. Tax Court case dramatically illustrates this point. This article discusses the tax benefits of donating appreciated property to charity and details the case of Mohamed v. Commissioner.

Read the Full Article Here

Standard mileage rates go up a penny in 2013

Beginning on Jan. 1, 2013, the standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes will be:

• 56.5 cents per mile for business miles driven.
• 24 cents per mile driven for medical or moving purposes.
• 14 cents per mile driven in service of charitable organizations.

For more information, click here.

We welcome the opportunity to talk with you about your specific needs or to answer your questions, You can contact us at (719) 630-1186 or through our Secure Email.