Don't forget today is the last day to register to VOTE

Who Can Vote?

You can vote in U.S. elections if you:
Are a U.S. citizen
Meet your state’s residency requirements
You can be homeless and still meet these requirements.
Are 18 years old on or before Election Day
You can register to vote before you turn 18 if you will be 18 by Election Day. Check your state’s registration age requirements.
Register to vote by your state’s voter registration deadline
The one exception is for residents of North Dakota, which doesn’t have voter registration.

Who CAN’T Vote?
Non-citizens, including permanent legal residents
For President in the general election: U.S. citizens residing in U.S. territories
Some people with felony convictions. Rules vary by state. Check with your state elections office about the laws in your state.
Some people who are mentally incapacitated. Rules vary by state.

Whose Options Are Limited Due to Primaries, Caucuses or Political Party?
No one’s. In the general election, you can vote for any Presidential candidate on the ballot from any party:

Whether you voted in your state’s primaries or caucuses or not
Regardless of who you voted for in the primaries or caucuses
Regardless of whether you’re registered with a political party or not

Who May Have Problems Voting Due to State or Local Requirements?
People who don’t present the types of Voter ID required in their state
People who have changed their name or permanent address and have not updated their voter registration
People whose name or address on their Voter ID doesn’t match the name or address on their voter registration
People who go to vote on Election Day at a polling place that is not their assigned polling location

Who May Have Problems Voting Due to Logistics?
Voters with disabilities or language barriers. Make sure you know your rights and the options available to help you vote.
Voters who can’t get to the polls on Election Day. Whether you live overseas, have a disability or injury limiting your mobility, are traveling for business, or attend college out of state, be sure you’re aware of the options available to you for Absentee and Early Voting.

If you need to register to vote, visit Vote.USA.gov.

Courtesy of usa.gov

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

Tax-filing Extension Expires Oct. 17 for Millions of Taxpayers

The Internal Revenue Service today urged taxpayers whose tax-filing extension runs out on Oct. 17 to double check their returns for often-overlooked tax benefits and then file their returns electronically using IRS e-file or the Free File system.

Fewer than a third of the 13 million taxpayers who requested an automatic six-month extension this year have yet to file. Although Oct. 17  is the last day for most people, some still have more time, including members of the military and others serving in combat zone localities who typically have until at least 180 days after they leave the combat zone to both file returns and pay any taxes due.

In addition, taxpayers in several disaster area localities who already had valid extensions now have more time to file. Currently, taxpayers in parts of Florida, Louisiana and West Virginia qualify for this relief. For details, see the disaster relief page on IRS.gov. However, like other extension filers, these taxpayers were required to pay what they owe by April 18.  

The IRS continues to monitor the impact of Hurricane Matthew and will be watching for federal disaster declarations in affected areas that could affect the Oct. 17 deadline.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

IRS Now Accepting ITIN Renewal Applications

The Internal Revenue Service reminds taxpayers affected by recent changes involving the Individual Taxpayer Identification Number (ITIN) program that they can now begin submitting their ITIN renewal applications to the IRS.

Under the Protecting Americans from Tax Hikes (PATH) Act of 2015 passed by Congress and signed into law last year, any ITIN not used on a federal tax return at least once in the last three years will no longer be valid for use on a tax return as of Jan. 1, 2017.

If a taxpayer has an ITIN that is scheduled to expire and needs to file a tax return, it’s important not to delay. By submitting the application package in the next few weeks ITIN taxpayers may avoid unnecessary delays and allow for smoother and faster processing.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

Terms to Know about Offers of Health Coverage

Here are definitions of key terms related to health coverage you might offer to employees:

Affordable coverage: If the lowest-cost self-only only health plan is 9.5 percent or less of your full-time employee’s household income, then the coverage is considered affordable. Because you likely will not know your employee’s household income, for purposes of the employer shared responsibility provisions, you can determine whether you offered affordable coverage under various safe harbors based on information available to you as the employer.

Minimum essential coverage: For purposes of reporting by applicable large employers, minimum essential coverage means coverage under an employer-sponsored plan. It does not include fixed indemnity coverage, life insurance or dental or vision coverage.

Minimum value coverage: An employer-sponsored plan provides minimum value if it covers at least 60 percent of the total allowed cost of benefits that are expected to be incurred under the plan.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

Charitable donations and taxes

There are a lot of good reasons to make donations to charity, but most boil down to one simple fact: Giving feels good. It’s no surprise, then, that many Americans give money or property to organizations they care about. In fact, some give quite a bit.

Whether you’re a minor donor or a philanthropist, you probably give because you want to help. Still, taking maximum advantage of tax breaks for your charitable efforts can make a difference to your bottom line—and involves following some fairly straightforward rules for deducting your donations:

Itemize deductions. To claim charitable donations on your tax return, you need to itemize deductions on Schedule A. Before making this move, be sure that itemizing will reduce your tax bill more than taking the standard deduction

Keep proof of your gift. If you gave cash, hold on to a bank statement, cancelled check or credit-card receipt showing the amount of the donation. For gifts of cash or property worth more than $250, also keep the written acknowledgement from the charity showing the date and value of the donation.

Clothing or household items must be in good shape. Second-hand clothes and the like must be in at least “good used condition.” You can deduct only the value they would sell for in a thrift shop—not what you paid for them.

Fill out form 8382 when you deduct gifts of items worth more than $500.

Get an independent appraisal when giving valuable property. When you claim a donation of furniture, jewelry or other item worth more than $5,000, the IRS wants independent verification of its value.

Courtesy of TruboTax

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

Do I need an Accountant?

As a small-business owner, up until this point, you may have managed your money successfully. Software programs like QuickBooks make it possible, even if you don’t have much financial knowledge or experience.

However, as your business — and revenue — grow, managing your financials may become a task you don’t have the time or knowledge to manage. Specifically, when it comes avoiding legal and compliance issues.

An accountant can talk to you in straight terms, weed through terminology, and teach you how to manage your own finances. In addition, you don’t want to miss key information or make mistakes early that could cost you down the road. An accountant can start you and your business off on the right track.

An accountant can advise you early on so that you can comply with all tax regulations. More importantly, an accountant can inform you of tax credits and deductions you can take, and predict the taxes you’ll owe.

Managing your books is preventing you from accomplishing tasks that could directly grow your business (for example, acquiring new clients or moving into new markets) or managing your business effectively (such as dealing with performance issues or troubleshooting service problems). Hire an accountant so you can focus on winning more business, innovating, building your team, and other development activities.

Accountants can create detailed, accurate reports that keep your investors happy and allow you to focus on tasks like growing the business. Additionally, if you are looking for a loan or funding from an investor, you will need to present a polished business plan. An accountant can help you flesh out the financial portion of your plan

If you want to grow through an acquisition, sell off parts of the business, or sell the entire business, an accountant can walk you through the process and determine how to structure the transaction so that you aren’t hit with overwhelming taxes.

Courtesy of QuickBooks

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

Drought-Stricken Farmers and Ranchers Have More Time to Replace Livestock

Farmers and ranchers who previously were forced to sell livestock due to drought, like the drought currently affecting much of the nation, have an extended period of time in which to replace the livestock and defer tax on any gains from the forced sales, the Internal Revenue Service announced today.

Farmers and ranchers who due to drought sell more livestock than they normally would may defer tax on the extra gains from those sales. To qualify, the livestock generally must be replaced within a four-year period. The IRS is authorized to extend this period if the drought continues.

The one-year extension of the replacement period announced today generally applies to capital gains realized by eligible farmers and ranchers on sales of livestock held for draft, dairy or breeding purposes due to drought. Sales of other livestock, such as those raised for slaughter or held for sporting purposes, and poultry are not eligible.

The IRS is providing this relief to any farm located in a county, parish, city, or district, listed as suffering exceptional, extreme or severe drought conditions by the National Drought Mitigation Center (NDMC), during any weekly period between Sept. 1, 2015, and Aug. 31, 2016.

Courtesy of IRS

For more information contact Neikirk. Mahoney and Smith at 502-896-2999