Why should I keep business records?

Everyone in business must keep records. Keeping good records is very important to your business. Good records will help you do the following:

Monitor the progress of your business
Prepare your financial statements
Identify sources of your income
Keep track of your deductible expenses
Keep track of your basis in property
Prepare your tax returns
Support items reported on your tax returns

Keeping records will only benefit you and your business. Preparing for tax season is a year long job, and the better organized you are the easier tax season will be.
For more information contact Neikirk, Mahoney, & Smith at 502-896-299

Don't forget to file Health Coverage Information Returns

Reminder for Employers and Providers: File Health Coverage Information Returns

If you are a self-insured employer, applicable large employer or health coverage provider, remember that the deadlines to file information returns with the IRS are approaching. The deadline to provide information returns to employees or responsible individuals was March 31 but for some the deadline to file them with the IRS is just over one month away.

If you have any questions contact Neikirk, Mahoney & Smith at 502-896-2999.

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.

New Ruling Split-Dollar Arrangement Is Not a Gift

Last week the Tax Court, in a case of first impression, ruled that payments made by a decedent through a trust to pay premiums on life insurance policies obtained to fund buy-sell agreements should not be regarded as loans still owed to her estate.

The case, Estate of Morrissette v. Commissioner, 146 T.C. No. 11, is groundbreaking for the tax, wealth planning, and insurance communities because the court‘s decision opens the door to intergenerational split-dollar arrangements, thereby easing the passage of family assets such as closely held businesses through the generations with predictable estate and gift tax consequences to the original owners.

If you have any questions about a trust and how this ruling will affect you contact Neikirk, Mahoney & Smith at 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.

Now is a good time to plan for your 2016 taxes.

You may be tempted to forget about your taxes once you’ve filed but some tax planning done now may benefit you later. Now is a good time to set up a system so you can keep your tax records safe and easy to find.  Here are some IRS tips to give you a leg up on next year’s taxes:

Take action when life changes occur.
Report changes in circumstances to the Health Insurance Marketplace.
Keep records safe.
Stay organized.
Shop for a tax preparer.
Think about itemizing.
Stay informed.

Let us help you stay on track for next year. Contact Neikirk, Mahoney & Smith at 502-896-2999 for more information.

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.

New Email Phishing Scam

The IRS has been alerted to a new email phishing scam.

The emails appear to be from the IRS Taxpayer Advocate Service and include a bogus case number and the following message:

“Your reported 2013 income is flagged for review due to a document processing error. Your case has been forwarded to the Taxpayer Advocate Service for resolution assistance. To avoid delays processing your 2013 filing contact the Taxpayer Advocate Service for resolution assistance.”

The recipient is directed to click on links that supposedly provide information about the "advocate" assigned to their case or that let them "review reported income."  The links lead to web pages that solicit personal information.

Taxpayers who get these messages should not respond to the email or click on the links. Instead, they should forward the scam emails to the IRS at phishing@irs.gov. For more information, visit the IRS's Report Phishing web page.

The Taxpayer Advocate Service is a legitimate IRS organization that helps taxpayers resolve federal tax issues that have not been resolved through the normal IRS channels. The IRS, including TAS, does not initiate contact with taxpayers by email, texting or any social media.