IRS Tips-IRS offers videos on wide range of tax topics in American Sign Language

People around the world are celebrating today as International Day of Sign Languages. Taxpayers who sign in American Sign Language can visit YouTube anytime to see IRS ASL videos. The IRS ASL Channel is one of three on YouTube. Each channel offers info about a wide range of tax topics.


All the videos on the ASL channel are presented by someone signing in ASL. Each video also includes audio and closed-captioning. The videos appear in several playlists sorted by topic. One of these playlists specifically highlights the services the IRS provides for people who are deaf or hard of hearing. There’s a series of videos in this playlist for ASL interpreters who need to learn appropriate tax terminology in ASL.

Here are other playlists on the IRS Videos in ASL YouTube channel:

Tax Tips – features videos on general tax topics to help people understand their tax responsibilities.
ID Theft – includes videos about ID theft that help people recognize scams and know what to do if they think their identity was compromised or stolen.
Small Business – videos to help business owners find out what tax credit, deduction and law changes may affect their business.
IRS Tax Pros – playlist featuring videos for and about tax preparers.
More information:
U.S. Dept. of Health and Human Services: National Institute on Deafness and other Communication Disorders
NIDCD: American Sign Language

IRS News – As Hurricane Dorian gains strength, IRS encourages preparation for natural disasters

WASHINGTON — As Dorian threatens and with the peak of hurricane season just ahead, the Internal Revenue Service reminds everyone to develop an emergency preparedness plan. Taxpayers, whether individuals, organizations or businesses, should take time now to create or update their emergency plans.… Taxpayers can begin getting ready for a disaster with a preparedness plan that includes securing and duplicating essential documents, creating lists of property and knowing where to find information once a disaster has occurred. Secure key documents and make copies Taxpayers should place original documents such as tax returns, birth certificates, deeds, titles and insurance policies inside waterproof containers in a secure space. Duplicates of these documents should be kept with a trusted person outside the area a natural disaster may affect. Scanning them for backup storage on electronic media such as a flash drive is another option that provides security and easy portability. Document valuables and equipment Taking photographs or videos of a home or business’s contents can help support claims for insurance or tax benefits after a disaster strikes. All property, especially expensive and high value items, should be recorded. The IRS disaster-loss workbooks can help individuals (PDF) and businesses (PDF) compile lists of belongings or business equipment. Employers should check fiduciary bonds Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider. The IRS also encourages employers to create an account where they can monitor their payroll tax deposits and sign up for email alerts. Rebuilding documents Reconstructing records after a disaster may be required for tax purposes, getting federal assistance or insurance reimbursement. Taxpayers who have lost some or all of their records during a disaster should visit IRS’s Reconstructing Records webpage. IRS stands ready In the case of a federally-declared disaster, taxpayers can visit the Tax Relief in Disaster Situations webpage for information or call 866-562-5227 to speak with an IRS specialist trained to handle disaster-related issues. A taxpayer impacted by a disaster outside of a federally declared disaster area may qualify for disaster relief. This includes taxpayers who are not physically located in a disaster area, but whose records necessary to meet a filing or payment deadline postponed during the relief period are located in a covered disaster area. Taxpayers located outside of a federally declared disaster area must self-identify to receive relief by calling 866-562-5227. Related items: Publication 2194, Disaster Resource Guide for Individuals and Businesses (PDF) Publication 583, Starting a Business and Keeping Records FS-2017-11, Reconstructing Records After a Natural Disaster or Casualty Loss Tax Relief in Disaster Situations Federal Emergency Management Agency Small Business Administration


IRS – Interest rates remain the same for the fourth quarter of 2019

WASHINGTON – The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2019, as they were in the prior quarter.… The rates will be: • five (5) percent for overpayments [four (4) percent in the case of a corporation]; • two and one-half (2.5) percent for the portion of a corporate overpayment exceeding $10,000; • five (5) percent for underpayments; and • seven (7) percent 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. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point. The interest rates announced today are computed from the federal short-term rate determined during July 2019 to take effect Aug. 1, 2019, based on daily compounding. Revenue Ruling 2019-21, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2019-38, dated Sept. 16, 2019.


IRS Tax Tips-These tax tips can help new business owners find success

IRS Tax Tip 2019-116, August 26, 2019… Starting a business can be very rewarding. It can also be a little overwhelming. From business plans to market strategies, and even tax responsibilities…there are many things to consider. Here’s what new business owners can do to help get off to a good start. Choose a business structure. The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are: Sole proprietorship: An unincorporated business owned by an individual. There’s no distinction between the taxpayer and their business. Partnership: An unincorporated business with ownership shared between two or more people . Corporation: Also known as a C corporation. It’s a separate entity owned by shareholders. S Corporation: A corporation that elects to pass corporate income, losses, deductions, and credits through to the shareholders. Limited Liability Company: A business structure allowed by state statute. Choose a tax year. A tax year is an annual accounting period for keeping records and reporting income and expenses. A new business owner must choose either: Calendar year: 12 consecutive months beginning January 1 and ending December 31. Fiscal year: 12 consecutive months ending on the last day of any month except December. Apply for an employer identification number. An EIN is also called a federal tax identification number. It’s used to identify a business. Most businesses need an EIN. Have all employees complete these forms: Form I-9, Employment Eligibility Verification (U.S. Citizenship and Immigration Services) (PDF) Form W-4, Employee’s Withholding Allowance Certificate Pay business taxes. The form of business determines what taxes must be paid and how to pay them. Taxpayers interested in starting a business can find information for some industries on the Industries/Professions Tax Centers webpage. Each state has additional requirements for starting and operating a business. Prospective business owners should visit their state’s website for info about state requirements. More information: Small Business Admiration’s 10 steps to start your business


IRS Notice – Employers who provide leave might qualify to claim valuable August 2019

Employers who provide paid family and medical leave to their employees might qualify for a credit that can reduce the taxes they owe. It’s called the employer credit for family and medical leave.… Here are some facts about the credit to help employers find out if they might be able to claim it. To be eligible, an employer must: Have a written policy that meets several requirements (PDF). Provide: At least two weeks of paid family and medical leave to full-time employees. A prorated amount of paid leave for part-time employees. Pay for leave that’s at least 50 percent of the wages normally paid to employees. Applicable dates: It’s available for wages paid in taxable years beginning after December 31, 2017, and before January 1, 2020. The amount of the credit: The credit is generally equal to 12.5 to 25 percent of paid family and medical leave for qualifying employees. The percentage is based on how much employers pay each employee for family and medical leave. Qualifying leave: The leave can be for any or all the reasons specified in the Family and Medical Leave Act: Birth of an employee’s child. Care for the child. Placement of a child with the employee for adoption or foster care. To care for the employee’s spouse, child, or parent who has a serious health condition. A serious health condition that makes the employee unable to perform the functions of their job. Any qualifying emergency due to an employee’s spouse, child, or parent being on covered active duty in the Armed Forces. This includes the taxpayer being notified of an impending order to covered active duty. To care for a service member who is the employee’s spouse, child, parent, or next of kin. Claiming the credit: To claim the credit, employers will file two forms with their tax return. These are Form 8994, Credit for Paid Family and Medical Leave and Form 3800, General Business Credit. More Information:


IRS Automatically Waives Estimated Tax Penalty for Eligible

Earlier this year, the IRS provided additional expanded penalty relief (PDF) to individual taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year.

The IRS is now automatically waiving the estimated tax penalty for eligible taxpayers who already have filed their 2018 federal income tax returns but who did not claim the waiver. Filing Form 843 for Expanded Underpayment of Estimated Income Tax Penalty Relief, posted March 27, 2019, is superseded to the extent it directs individual taxpayers who already have paid the penalty to file Form 843 to claim a refund.

Over the next few months, IRS is mailing notices (CP21) to affected taxpayers notifying them the penalty was waived. The automatic waiver has been granted to any eligible taxpayer whether or not they already have requested penalty relief on Form 843. After receiving their notice in the mail, taxpayers who already have paid the penalty should receive their refunds within three weeks, if they don’t owe any other taxes or debt the IRS is required to collect. Eligible taxpayers who already have filed a 2018 return do not need to request penalty relief, contact the IRS, or take any other action to get this relief.

The automatic waiver applies to any individual taxpayer who paid at least 80 percent of their total tax liability through federal income tax withholding or quarterly estimated tax payments but did not claim the special waiver available to them when they filed their 2018 return earlier this year. This waiver is designed to provide relief to any taxpayer who filed too early to take advantage of the waiver or was unaware of it when they filed.

For those yet to file, the IRS urges every eligible taxpayer to claim the waiver on their return. This includes those with tax-filing extensions due to run out on October 15, 2019. The fastest and easiest way to do that is to file electronically and take advantage of the waiver computation built into their tax software package. Those who choose to file on paper can fill out Form 2210 (PDF) and attach it to their 2018 return. See the Instructions for Form 2210 for details.

If you have questions about the notice or it’s been longer than three weeks, you may call the toll-free number listed on the top right corner of the letter.

Avoid Revocation of Passport by IRS – IRS News 2019 August

Individuals with significant tax debt should act promptly to avoid revocation of passports WASHINGTON — The Internal Revenue Service today urged taxpayers to resolve their significant tax debts to avoid putting their passports in jeopardy. They should contact the IRS now to avoid delays in their travel plans later. Under the Fixing America’s Surface Transportation (FAST) Act, the IRS notifies the State Department (State) of taxpayers certified as owing a seriously delinquent tax debt, which is currently $52,000 or more. The law then requires State to deny their passport application or renewal. If a taxpayer currently has a valid passport, State may revoke the passport or limit a taxpayer’s ability to travel outside the United States. When the IRS certifies a taxpayer to State as owing a seriously delinquent tax debt, the taxpayer receives a Notice CP508C from the IRS. The notice explains what steps the taxpayer needs to take to resolve the debt. IRS telephone assistors can help taxpayers resolve the debt. For example, they can help taxpayers set up a payment plan or make them aware of other payment options. Taxpayers should not delay because some resolutions take longer than others. Don’t Delay! It’s especially important for taxpayers with imminent travel plans who have had their passport applications denied by State to call the IRS promptly. The IRS can help taxpayers resolve their tax issues and expedite reversal of their certification to State. When expedited, the IRS can generally shorten the 30 days processing time by 14 to 21 days. For expedited reversal of their certification, taxpayers will need to inform the IRS that they have travel scheduled within 45 days or that they live abroad. For expedited treatment, taxpayers must provide the following documents to the IRS: Proof of travel. This can be a flight itinerary, hotel reservation, cruise ticket, international car insurance or other document showing location and approximate date of travel or time-sensitive need for a passport. Copy of letter from State denying their passport application or revoking their passport. State has sole authority to issue, limit, deny or revoke a passport. The IRS may ask State to exercise its authority to revoke a taxpayer’s passport. For example, the IRS may recommend revocation if the IRS had reversed a taxpayer’s certification because of their promise to pay, and they failed to pay. The IRS may also ask State to revoke a passport if the taxpayer could use offshore activities or interests to resolve their debt but chooses not to. Before contacting State about revoking a taxpayer’s passport, the IRS will send Letter 6152, Notice of Intent to Request U.S. Department of State Revoke Your Passport, to the taxpayer to let them know what the IRS intends to do and give them another opportunity to resolve their debts . Taxpayers must call the IRS within 30 days from the date of the letter. Generally, the IRS will not recommend revoking a taxpayer’s passport if the taxpayer is making a good-faith attempt to resolve their tax debts. Ways to Resolve Tax Issues There are several ways taxpayers can avoid having the IRS notify State of their seriously delinquent tax debt. They include the following: Paying the tax debt in full, Paying the tax debt timely under an approved installment agreement, Paying the tax debt timely under an accepted offer in compromise, Paying the tax debt timely under the terms of a settlement agreement with the Department of Justice, Having a pending collection due process appeal with a levy, or Having collection suspended because a taxpayer has made an innocent spouse election or requested innocent spouse relief. Relief programs for unpaid taxes Frequently, taxpayers qualify for one of several relief programs including the following: Payment agreement. Taxpayers can ask for a payment plan with the IRS by filing Form 9465. Taxpayers can download this form from and mail it along with a tax return, bill or notice. Taxpayers who are eligible can use the Online Payment Agreement system to set up a monthly payment agreement. Using the Online Payment Agreement system is cheaper and can save time. Offer in compromise. Some taxpayers may qualify for an offer in compromise, an agreement between a taxpayer and the IRS that settles the tax liability for less than the full amount owed. The IRS looks at the taxpayer’s income and assets to determine the taxpayer’s ability to pay. Taxpayers can use the Offer in Compromise Pre-Qualifier tool to help them determine whether they’re eligible for an offer in compromise. Subject to change, the IRS also will not certify a taxpayer as owing a seriously delinquent tax debt or will reverse the certification for a taxpayer: Who’s in bankruptcy, Who’s identified by the IRS as a victim of tax-related identity theft, Whose account the IRS has determined is currently not collectible due to hardship, Who’s located within a

Payroll Accounting

Playlist 0:26 Payroll Introduction 6:29 Regular & Overtime Pay Calculation 11:40 Federal Income Tax FIT 18:54 Payroll Legislation 26:47 Payroll Consideration and Tax Forms 43:06 Payroll Periods and Time Frames 50:11 New Employee Tax Forms & Contractor vs Employee 1:07:26 Federal Income Tax FIT – Percent Method 1:15:09 Federal Income Contributions Act (FICA) 1:23:15 Social Security Tax Calculation 1:29:25 FUTA, SUTA Workers Compensation 1:34:18 Medicare Tax Calculation 1:37:49 Federal Unemployment Tax Act Calculation 1:41:32 Payroll Ethics & Practices 1:50:00 Employer Taxes Calculation 1:57:19 Employer Responsibilities and Processes 2:05:10 Payroll Expense Journal Entry 2:15:50 Payroll Tax Expense Journal Entry 2:24:07 Pay Payroll Tax Expense Journal Entry 2:32:58 Form 941 Payroll Controls and Documentation 2:55:39 Form 940 3:07:14 Form W-3 & W-2 3:19:11 Reconciling Year End Payroll Forms 3:28:30 Minimum Wage & Nonexempt Employees 3:34:03 Payroll Calculations 3:40:16 Overtime Calculation 3:49:43 Payroll Register 3:59:24 Fringe Benefits 4:05:32 Deductions From Gross Pay 4:11:55 Retirement Plans 4:21:11 Post Tax Deductions 4:26:33 Net Pay Calculation 4:31:55 Federal Income Tax (FIT) 4:46:43 Social Security 4:58:18 Medicare Tax 5:04:21 Other Deductions & Payment Methods 5:12:29 605 Taxes Employer Employee 5:21:50 FICA Employer 5:26:47 Form 941 5:38:44 Form 940 5:47:35 Form W-3 This financial accounting and payroll video will cover payroll topics including payroll legislation, payroll calculations, and entering payroll journal entries. Because payroll is becoming more complex and more of a specialized field it is difficult to find content that puts it all together in one spot like this course does. We will discuss payroll legislation, going over a wide variety of laws that influence payroll. Because payroll is such a broad topic and because it overlaps with other areas of business like human resources many laws influence the processing of payroll. We will concentrate on laws that deal with the calculation of payroll and payroll withholdings. The video will cover the generation of payroll registers and earnings reports, the primary tools to help us calculate payroll. We will discuss how to calculation payroll tax withholding like federal income tax (FIT), social security, and Medicare. We will calculate net pay from gross pay. This video will cover journal entries related to payroll; a topic often overlooked in may payroll classes. Payroll journal entries can be complicated. Learning payroll journal entries helps our understanding of both payroll and debits and credit. We will post payroll journal entries to the general ledger and analyses the effect on the financial accounts and accounting equation. This video will cover the processing of payroll tax forms like form 941, form 940, form W-2, form W-3, and form W-4. We also include a comprehensive a problem, allowing us to see the entire process in one problem. This video includes key terms and definitions related to payroll and a general comprehensive accounting cycle comprehensive problem. The accounting cycle comprehensive problem will take a step back, so we can see the big picture and visualize how the payroll process fits into the overall accounting cycle.


Closing Entries

The Accounting Closing Process Playlist 0:27 Closing Process Explained 7:14 Post Closing Trial Balance 11:19 One Step Closing Process 23:09 Two Step Closing Process 34:03 Closing Process Step 1 of 4 – Journal Entry 1 of 4 37:23 Closing Step 2 of 4 – Journal Entry 2 of 4 42:41 Closing Entries Journal Entry 3 of 4 Step 3 Income summary 47:39 Closing Process Step 4 of 4 Closing Journal Entry Draws or Withdraws 1:01:29 Post Closing Trial Balance & financial statements The financial accounting closing process is the final step in the accounting cycle. We will learn why the closing process in needed and be able to perform the closing process multiple ways. As indicated by the title, the closing process takes place at the end of the accounting cycle. The main event of the accounting cycle is the financial statements. Once we have completed the financial statements we need to get ready for the next accounting period, get ready with the closing process. The closing process will zero out temporary accounts including income statement accounts of revenue and expenses and the draws or dividends account. We can perform the closing process multiple ways. We will consider the closing process from three perspectives. Each perspective has pros and cons and the repetition of each method as well as performing the closing process from multiple angles will provide a solid understanding of the concepts. Understanding the closing process helps understand the concept of temporary accounts and permanent accounts, which helps us understand the relationship of the financial statements and how to read them.