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 Filing Form 843 for Expanded Underpayment of Estimated Income Tax Penalty Relief, posted March 27, 2019, is superseded to the extent it directs individual taxpayers who already have paid the penalty to file Form 843 to claim a refund.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.



Accounting Major Second Guessing & Dealing With Criticisms

Accounting Major Second Guessing & Dealing With Criticisms Objectives Work with different points of view, take what is helpful, and discard the noise. (Not designed to increase argument but possibly facilitate more productive debate). Help structure personal goals and use doubts constructively In this presentation we’re going to take a look at a problem from the perspective of an accounting major. Someone who is going to school and has chosen accounting as their primary field. Although we’re talking here to people that have chosen accounting and are in school for accounting, the same kind of thing applies to people that are working within the accounting field and more broadly basically any type of career choice or career path will apply or at least some of these items will apply to it, that problem being the second guessing of the major that we have chosen and dealing with some type of criticism with regards to the major, debate about the major that has been chosen, either from other students or from instructors or from other individuals that we are involved with Now we’re assuming at this point in time we’re thinking about someone who has basically chosen which path they want to go on. Note typically if someone’s going through say high school or undergraduate then we’re talking to a whole bunch of people trying to decide what’s an appropriate major what’s going to be a good major. At some point in time the decisions going to be made and we have to basically go into that process and continue with the decision making process and move forward with whatever decision we have been chosen. Typically at this point we’re thinking about people who have chosen accounting as their major and now are thinking about moving forward in accounting. Note that as you choose a major, as you narrow things down, as you have to do, it can be concerning because we often think about the things that we have given up That’s of just the way the mind is wired. We’re mentally set to be more concerned about the things that we’ve lost than the things that we’re going to gain. With regards to the choices that we make as we go into the choice usually we find that the choice that we have made and the more we think about the choice we’ve made then there’s basically infinite possibilities we have within that choice that we’ve made. We still have a tons of choices to make. Most people don’t narrow down enough and have too many choices and they end up basically getting stuck at a standstill. Business, Economics, & Practical Technical Skills questions: Accounting is not where the money is at Wake up and go where the action is Accounting will be completely automated someday Your job will be outsourced Accounting is not an integral part of the business model but just a miner task that need to be done, similar to the trash needing to be taken out Real business people focus on the money making components and higher somebody do accounting. Accounting is not the fun part of business. Marketing and advertising is where the fun is. Arts and Humanities Life activities should be focused on what you love doing. Who could love doing accounting? Money doesn’t really matter. Why focus so much time counting it? Life should be spent doing stuff and interacting with people. Why spend so much time working on number, ledgers, and with computers Sciences qeustions Life is about understanding the physical world. Money is just a tool that should be used towards this end As we learn accounting, we should be integrating these other areas as we can Whatever career we choose can be thought of as a focal point we use to build on. Whatever we know best will eventually lead into other topics as we expand out knowledge. As students we can expand our knowledge by learning components of other disciplines that most directly apply to ours Learn accounting software. Learn databases Learn tax software Learn managerial concepts, group dynamics, and economics