Gianfrancesco's Accounting & Tax Services Inc

If you received any unemployment compensation in 2020, you should have received a Form 1099-G to report this income. The IRS wants us to remind you to double check that form and make sure it's correct, as there have been some issues in this arena. On the flip side, if you did not receive unemployment in 2020 but received a 1099-G from the state for it, that's also a problem. Unfortunately, there has been a high level of unemployment fraud in the past year because of the increased benefit payments. You're definitely going to want to contact the state unemployment insurance office to get this corrected.

If you're a restaurant owner that rode the struggle bus hard this past year, there's good news. Monday kicked off the opening of the new Restaurant Revitalization Fund from the SBA. During the first 21-day application window, priority will be given to businesses owned by women, veterans and socially and economically disadvantaged businesses. After 21 days, other business applications will be considered. If approved, the government will match loss of revenue up to $10M with the caveat that the funds be used for allowable expenses by no later than March 11, 2023.

If you live in Alabama, Kentucky, Louisiana, Oklahoma, or Texas ... you've got extra time to file your taxes. If you live anywhere else, the deadline to file is approaching quickly.

If you owe money to the IRS and have significant income or assets, the IRS is going to do everything they can to squeeze every last dime out of you. But if your income falls below the Allowable Living Expenses (ALE) line, you can be placed into what they call Currently Not Collectible status (CNC). We’d be more than happy to do this analysis with you to determine whether this is a viable path for you before you waste time calling the IRS. Schedule a time with us to review your financial picture.

New guidance from the IRS last week allows businesses to deduct certain expenses on their 2021 business return that were paid for by PPP loan proceeds -- if they weren’t deducted on the 2020 tax return. Be sure to discuss this with us to make sure you capture these deductions on your 2021 return when we file it next year.

The rise of self-employment and the side hustle is an exciting trend for the US economy. If this is you, there are important deductions you'll want to make use of to make your venture as profitable as possible. If you file your taxes with us, we're always looking out for these money-savers. Let us know if you have questions.

In the realm of preparing your tax return, I urge you ... do NOT fall prey to the thinking that a software program or talking heads on a floating desk can suffice to enable you to preserve your resources or properly leverage the multiplicity of credits, loopholes and deductions available. Give yourself the gift of financial peace of mind during tax season, and do it with someone who knows how to do it right.

Lowered gas and insurance costs in 2020 led the IRS to reduce the mileage deduction rates for 2021. This is now what you can deduct for driving for business purposes this year: - 56 cents/mile for business (down from 57.5) - 16 cents/mile for medical or moving (down from 17) - 14 cents/mile for charitable purposes... But with gas prices seemingly on the way up again in 2021, we'll probably see mileage rates affected accordingly next year.

Q&A on the PPP Question: If I received the "grant" portion of the EIDL, is this considered taxable income? Answer: No, it is not taxable income.

Depending on how you handle your 2020 taxes, you'll end up in one of two groups: 1) Sitting on top of a mountain of tax benefits that are available to those who use them effectively, or 2) Crying at the bottom of a pit of missed tax opportunities that could have eased the financial strain of 2020.... We're here to help YOU process tax season. No matter what happened during the donkey that was "2020" ... we're going to ensure that your taxes are as locked tight, cost-efficient and SAVINGS-OPTIMIZED for you as legally and ethically possible.

Partnerships, LLCs and S-Corps: Circle March 15th on your calendar again. This is your business return deadline.

Q&A on the PPP Question: If I received the first PPP, should I include this number in calculating whether I "lost 25%+" to qualify for the second round? Answer: As you might remember, the requirement in order to receive a second PPP is that the small business has less than 300 employees and can demonstrate a revenue reduction of 25 percent. But that revenue reduction figure should NOT include any funds from the first PPP.... Also, you can calculate this either by quarter, or by fiscal year -- whichever is more advantageous. Many area small businesses need help with these calculations ... that’s what we’re here for.

We like to have a little fun laughing at the newest TurboTax commercials that pop up this time of year. Last year, it was "all people are tax people". This year, they're promoting their "live" feature with commercials of a floating desk answering various deduction questions. It's clever, but it glides over what it is and isn't -- relying upon software to do your taxes can be a very expensive mistake. And that's not even mentioning the armies of bored, underpaid "tax experts"... who are "at your disposal", apparently. Every year, we unwind the messes of clients who went this self-prepared, software route -- and who ended up owing money they shouldn't have. If this is you, no shame -- we'll fix this stuff for you and figure out if you do in fact owe what they say. Even if you do, we have ways of helping to even get that number reduced.

According to a recent report, the IRS is apparently understaffed, overstretched and waaaay behind on collections notices, and other such things. But that doesn't mean they've forgotten about your tax bill. Riding on the waves of these IRS delays will only bring about greater harm to your tax situation.... Don't be like the IRS. Get on top of it, with our help.

Just announced... Tax season opens on Friday, Feb. 12, 2021. This is when the IRS will begin accepting paper AND electronic filing of your 2020 tax returns.... As always, we can help.

The IRS has apparently caught up on processing their backlogged mail that stacked up during COVID closures. Or, good enough, they say. They are now resuming the mailings of tax-due notices to taxpayers with outstanding tax bills. If you receive one of these notices, give us a call immediately.

Keeping personal and business separate is extremely important for your taxes. While there is some room for dual purpose expenses, far-reaching claims are easy pickings for IRS auditors.

"Hope someone can use some of these baseballs in the batting cages. I found them cleaning my garage. I pitched them to my son and grandson for countless rounds. My son is now 46 y/o and my grandson is 23 y/o. I am 72 and what I won't give to pitch a couple of buckets to them. They have both moved away. If you are a father cherish these times. You won't believe how quickly they will be gone. God bless P.S. Give them a hug and tell them you love them every chance you get."

A new QR code feature aims to help you access your taxpayer account info easier when receiving an overdue tax notice from the IRS. If you just need help setting up logistics to pay your bill, this will help you. But if you do not agree with their numbers or you can't pay, you will still want professional assistance.

There's lots of tax talk in this election season, as in every other, as both candidates are making promises about their tax policies. The BEST advice we can give about what to do for your individual and business tax plan right now is: wait and see. If new tax legislation is passed in 2021, it probably won't be effective until 2022. Congress very rarely makes tax changes that are retroactive. So ... wait and see. Then, we will listen together to see what whichever President we have says about their tax plans ... and react accordingly.

Organizing your financial world can feel like a daunting task, but some SIMPLE steps will go a long way. Watch our video -- doesn't this seem really doable?

Tackling tax debt can be overwhelming, and many people don't face it head on. But taking small, simple steps goes a long way. Get the ball rolling, and you might be surprised at the progress you make. (And we can help.)

The day has come. All 2019 returns that were given an extension to file are due to be submitted today, which means our most recent marathon is coming to an end. Next tax season is now not so very far away (along with the tax ramifications of what THIS tax season delivered). Are you ready for that? You will be ... with our help.

We've been telling you about some tax professional rumors circulating about "automatic forgiveness" for PPP loans under $150K. Well, they did it! Except it is for even smaller loans (under $50K). And it's not "automatic", but it is very, very easy. Here is the simplified application if your loan falls in that category. https://bit.ly/318OOYh

Here are some questions to consider for your 2020 taxes that will set you up for long-term success. We're here to help you walk through these answers and how to affect your tax status in a positive way. 1) Have you had a significant change in your wage income this year? 2) Have you taken capital gains or losses this year? Are you planning to? 3) Did you start or sell a business this year?... 4) Did you purchase real estate? 5) Did you make your full contributions to retirement accounts? 6) Have you considered a Roth IRA? 7) Did you withdraw from retirement accounts, and for what purpose? See more

Extension deadline is on THURSDAY, folks. Filing a tax return late (without reasonable cause) results in a 5% late FILING penalty (on whatever it is that you owe -- and the IRS will figure it for you if you don't), and an additional 5% for every month you wait to file. PLUS there is an additional 0.5% to 1% late PAYMENT penalty (per month) on whatever it is you owe. NOTE: this is ON TOP of late filing penalties. Then (yikes), interest accrues on both the late tax filing penal...ties AND the late payment penalties. That's a lot of penalty. And at least the first one is completely avoidable. If you can't pay the tax due on October 15, still file ... and talk to us about helping you set up an installment agreement or working out an offer in compromise to cover what you owe.

Another PPP loan update for businesses: If your PPP loan was less than $50K, a couple of time-consuming requirements have been removed from the forgiveness application, making the process *a little bit* less complicated. Automatic forgiveness for certain loans, while still being discussed, is not yet available.

If you filed an extension on your 2019 taxes (like many Americans), your extended deadline is a week away (on Oct. 15).