It has happened again; I got a call from someone that wanted to know if we could get their S-Corporate return done by Monday, as the “person I have been working with just stopped returning my calls and emails.” When I asked if they went by the person’s office to ask what was going on, they said: “as far as I know they, don’t have an office, and the only time I met them it was at Denny’s.”
It’s never a good idea to do business
with an accountant, or any other business, that does not have or will not tell
you where their business office is located. This sounds like another case of somebody
doing accounting and tax work while they are looking for a job, and leaving
their clients high and dry when that job comes along.
This “cheap” tax return is now going to
cost a lot more – as it’s a rush job, that is, IF we can get all the
information, and complete it by close of business on Monday.
Don’t be fooled into using an accountant
that has no office so he comes to you and works out of his home or a PO box, in
the end, cheap services always end up costing more than using a true
The state of
Illinois signed SB 1515 into law on August
26, 2019. It repeals the previous law pertaining to state individual income tax
withholding requirements for out-of-state residents. Now, nonresidents who spend
30 days or more working in Illinois during the calendar year are considered to
have been compensated in the state and are subject to Illinois income tax.
requires employers with nonresident employees working in the state to:
- Maintain record of the number of days worked in-state
by their nonresident employees, or
- Have the nonresident employees submit a written
statement that includes the number of days that they reasonably expect to
spend working in the state during the year.
This law will be applicable to tax years
ending on or after December 31, 2020.
United States Tax Court ruled in the case of Denise Celeste McMillan v. Commissioner of Internal Revenue on August 26, 2019. That her horse business no longer existed with the death of her last horse. Ms. McMillan challenged the IRS on disallowing her deductions for her horse showing/breeding business. Ms. McMillan was self-employed, both as a horse breeder and trainer and as an independent IT professional. During the 2010 tax year, she claimed a deduction for her horse business, which functionally no longer existed due to the death of her last horse. Proving that not only can you not beat a dead horse but also that a horse business lives and dies with the horses.
For the complete decision see T.C. Memo.
Question: “Does it make sense to convert my IRA to a ROTH IRA?”
Answer: We need a lot more information to answer that question. The answer will depend on your marginal projected tax rate for the year, along with your projected marginal tax rate at retirement. It also depends on how long you project between conversion and beginning withdrawals. While Roth IRAs can be a great choice, the conversion should not be done without fully understanding the tax ramification and what your plans and needs will be for the money in the account. If you know that you will be in a low tax bracket this year due to being out of work or having deductible business losses it can make a lot of sense to convert some or all or your IRA to a Roth IRA. Just how much to convert depends on your projected income and how much you can get in at the projected lower marginal rate.
We welcome your questions. Just email
them to Info@RMSAccounting.com or
call us at 954-563-1269.