News for Your Week Ahead: May 28, 2021

On this weeks’ episode of MSATP TV Cliff Reiter of National Accounting Sales joins Executive Director Bill Feehley to tell us about how he can help you buy or sell your accounting practice!

Watch on YouTube. 

Coming Up: On Thursday, June 3rd at 10 a.m., we will have our Young Professionals Leadership Program (YPLP) Capstone Project winner on to tell you about themselves and all about our Signature YPLP Program.Tune in on Facebook for this episode and more!

Just a reminder our offices will be closed next week for the Annual Convention & Banquet. We can still be reached via email at info@msatp.com, walter@msatp.org, heather@msatp.org, or kebaugh@msatp.org. Our offices will reopen on June 7th.

There is still time to register for the individual classes virtually or in person at MSATP’s Annual Convention and Banquet. Please use the button below to register!

To learn more about the convention, click here.

Bob Jennings Teaches MSATP’s First In-Person Seminar Since Start of COVID-19 Pandemic

While things in the past year have been very difficult for everyone, we did enjoy a small sense of a return to normalcy this week with our first two in person seminars in Frederick, MD with Bob Jennings! Our seating was still socially distanced and attendees got to enjoy the small round table question and answer sessions throughout the presentation.

Coming this week we have both options, both in person and virtual, for classes during the Annual Convention & Banquet in Ocean City, MD. We hope to see you there.

For more information, please click here.

Interest Rates Remain the Same for the Third Quarter of 2021 | IR-2021-120

The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning July 1, 2021.
The rates will be:

  • 3% for overpayments (two (2) % in the case of a corporation),
  • 0.5% for the portion of a corporate overpayment exceeding $10,000,
  • 3% for underpayments and
  • 5% for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

For more information, click here.

Find Unclaimed Property with “The Franchot Bunch” | Annual Campaign Aims to Unite Marylanders with Their Money and Valuables

Using a popular 1970s family sitcom as this year’s theme, Comptroller Peter Franchot launched the annual unclaimed property campaign aimed at reuniting Marylanders with their money and valuable items.

The 2021 Maryland Unclaimed Property insert hits publications statewide beginning Sunday, May 30, and continuing through mid-June. This year, Comptroller Franchot joins with agency employees to form “The Franchot Bunch,” a spoof of the famous television show “The Brady Bunch” about a large, blended family.

“Unclaimed property is all about reuniting Marylanders with money or belongings that have, for various reasons, ended up in the state’s custody,” Comptroller Franchot said. “There may be stocks, rings of gold that were once your mother’s, and other items of quality. Being on the list may seem like a fantasy, but matching owners with their rightful property is truly a family effort in our agency.”

To use the Unclaimed Property database, click here.

The American Rescue Plan Includes Retroactive Tax Benefits That Can Help Taxpayers | COVID Tax Tip 2021-74

The IRS reminds taxpayers who still haven’t filed, that several provisions of the American Rescue Plan affect their 2020 tax returns.

One provision excludes up to $10,200 in unemployment compensation from income. Another provision benefits many people who purchased subsidized health coverage through either federal or state Health Insurance Marketplaces. The law also includes a third round of Economic Impact Payments, currently going out to eligible Americans, that are generally equal to $1,400 per person for most people. The IRS will automatically provide these benefits to eligible filers.

Most taxpayers who have already filed their 2020 returns should not file amended returns, file refund claims, or contact the IRS about obtaining these newly enacted tax benefits.  These actions will not speed up a future refund. In fact, they could even slow down an existing refund claim.

For more information, click here.

Checking Withholding Can Help Taxpayers Decide if They Need to Give Their Employer a New W-4 | Tax Tip 2021-75

All taxpayers should review their federal withholding each year to make sure they’re not having too little or too much tax withheld.

Employees, retirees and self-employed individuals can use the IRS Tax Withholding Estimator to help decide if they should make a change to their withholding. This online tool guides users, step-by-step through the process of checking their withholding, and provides withholding recommendations to help aim for their desired refund amount when they file next year. Taxpayers can check with their employer to update their withholding or submit a new Form W-4, Employee’s Withholding Certificate.

Adjustments to withholding

Individuals should generally increase withholding if they hold more than one job at a time or have income from sources not subject to withholding. If they don’t make any changes, they will likely owe additional tax and possibly penalties when filing their tax return.

Individuals should generally decrease their withholding if they qualify for income tax credits or deductions other than the basic standard deduction.

Either way, those who need to adjust their withholding must prepare a new Form W-4, Employee’s Withholding Certificate. They need to submit the new Form W-4 to their employer as soon as possible since withholding occurs throughout the year.

For more information, click here.

Tips for Troubleshooting Common After-Tax-Day Issues | COVID Tax Tip 2021-73

While the deadline to file and pay federal income taxes has passed for most people, some taxpayers may still be dealing with tax-related issues.

Here are some tips for taxpayers handling some of the most common after-tax-day issues.

Check refund status

Taxpayers can check on their refund using the Where’s My Refund? tool. It is available on IRS.gov and the IRS2Go app. Taxpayers without access to a computer can call 800-829-1954. To use this tool, taxpayers need their Social Security number, tax filing status and the exact amount of the refund claimed on their tax return. The tool updates once daily, so there’s no need to check more often.

Check withholding

All taxpayers are encouraged to check their withholding using the Tax Withholding Estimator on IRS.gov. This will help them make sure their employers are withholding the right amount of tax from their paychecks. Doing this now will help avoid an unexpected amount due and possibly a penalty when they prepare and file their taxes next year.

Taxpayers can use the results from the Estimator to help complete a new Form W-4 and adjust their income tax withholding with their employer. Taxpayers who receive pension income can use the results to complete a Form W-4P and submit to their payer.

For more information, click here.