Struggling to Pay Tax Bill?

People facing financial difficulties may find that there's a tax impact to events such as job loss, debt forgiveness or tapping a retirement fund. For example, if your income decreased, you may be newly eligible for certain tax credits, such as the Earned Income Tax Credit.
Most importantly, if you believe you may have trouble paying your tax bill, contact the IRS immediately. In many cases, there are steps we can take to help ease the burden. You also should file a tax return even if you are unable to pay so you can avoid additional penalties.

Contact Neikirk, Mahoney & Smith for more information 502-896-2999.

Did you file late? Here are some things you should know.

April 18 was this year’s deadline for most people to file their federal tax return and pay any tax they owe. If you are due a refund there is no penalty if you file a late tax return. If you owe tax, and you failed to file and pay on time, you will most likely owe interest and penalties on the tax you pay late. To keep interest and penalties to a minimum, you should file your tax return and pay the tax as soon as possible.
Here are some facts that you should know.

1. Two penalties may apply.
2. Penalty for late filing.
3. Penalty for late payment.
4. Combined penalty per month.
5. File even if you can’t pay.
6. Payment Options.
7. Late payment penalty may not apply.

For more details contact Neikirk, Mahoney & Smith at 502-896-2999.

Did you receive a letter from the IRS?

Why was I notified by the IRS?
The IRS sends notices and letters for the following reasons:
You have a balance due.
You are due a larger or smaller refund.
IRS has a question about your tax return.
IRS needs to verify your identity.
Additional information needed.
IRS changed your return.
To notify you of delays in processing your return.
If you do not agree with the letter or have any questions you can contact us at Neikirk, Mahoney & Smith 502-896-2999.

Do you need an amendment made to your 2015 tax return?

After filing your return, you may realize you made an error or omitted something from your return. The IRS often finds and corrects errors during the processing of returns. However, there are certain situations in which you may need to file an amended return if you wish to correct an error or make other changes to your return. Need more information on amending your return call Neikirk, Mahoney & Smith at 502-896-2999.

How does the Affordable Care Act impact your tax return?

The Affordable Care Act contains comprehensive health insurance reforms and includes tax provisions that affect individuals, families, businesses, insurers, tax-exempt organizations and government entities. These tax provisions contain important changes, including how individuals and families file their taxes. The law also contains benefits and responsibilities for other organizations and employers. For more information call Neikirk, Mahoney and Smith at 502-896-2999.

Are you running out of time?

Need more time to prepare your federal tax return? This page provides information on how to apply for an extension of time to file. Please be aware that an extension of time to file your return does not grant you any extension of time to pay your taxes. April 18 is the deadline for most to pay taxes owed and avoid penalty and interest charges.

If you have last minute questions talk to a real person at Neikirk, Mahoney and Smith at 502-896-2999.

Are You Ready for Tax Season?

According to the Internal Revenue Service, nearly a third of Americans wait until the last minute to file their taxes. And once again  this year, with the April 15 deadline looming, millions of Americans still aren't ready to file their tax returns.

Business taxpayers are no different. The process for filing business taxes can always be counted on to add a little bit of a dark cloud to even the prettiest spring morning! And no matter how carefully you documented expenses and reported earnings, every business owner secretly frets over the liklihood of an IRS Audit!

The tax professionals at Neikirk, Mahoney & Smith, understand what you're going through and they stand ready to help you get through the process intact!

Need some help filing your business taxes? Give us a call today at 502-896-2999. Visit our website to learn more and we look forward to being of service!

The Individual Shared Responsibility Provision and Your 2015 Income Tax Return

From Neikirk, Mahoney & Smith, the IRS has published some information on your upcoming 2015 income tax returns. 

The Affordable Care Act requires you, your spouse and your dependents to have qualifying health care coverage for each month of the year, qualify for a health coverage exemption, or make an Individual Shared Responsibility Payment when filing your federal income tax return.   If you had coverage for all of 2015, you will simply check a box on your tax return to report that coverage.

However, if you don’t have qualifying health care coverage and you meet certain criteria, you might be eligible for an exemption from coverage. Most exemptions are can be claimed when you file your tax return, but some must be claimed through the Marketplace.

If you or any of your dependents are exempt from the requirement to have health coverage, you will complete IRS Form 8965, Health Coverage Exemptions and submit it with your tax return. If, however, you are not required to file a tax return, you do not need to file a return solely to report your coverage or to claim an exemption.

For any months you or anyone on your return do not have coverage or qualify for a coverage exemption, you must make a payment called the individual shared responsibility payment. If you could have afforded coverage for yourself or any of your dependents, but chose not to get it and you do not qualify for an exemption, you must make a payment. You calculate the shared responsibility payment using a worksheet included in the instructions for Form 8965 and enter your payment amount on your tax return.

Whether you are simply checking the box on your tax return to indicate that you had coverage in 2015, claiming a health coverage exemption, or making an individual shared responsibility payment, you or your tax professional can prepare and file your tax return electronically.  Using tax preparation software is the best and simplest way to file a complete and accurate tax return as it guides individuals and tax preparers through the process and does all the math. Electronic filing options include IRS Free File for taxpayers who qualify, free volunteer assistance, commercial software, and professional assistance.

You can use the IRS's interactive tax assistant to determine if you are eligible for a coverage exemption or responsible for the Individual Shared Responsibility Payment. You can contact Neikirk, Mahoney & Smith by phone at 502-896-2999, or through our website contact form.