July Newsletter

Summertime in the CPA Firm

I often get the question, what does your office do when it isn't tax season? During the summer months we stay busy working with our bookkeeping and payroll clients, wrapping up tax returns that were put on extension and other miscellaneous projects that we don't have time to complete the rest of the year. The other big project that we tackle involves tax planning or tax projections. This task is especially helpful for clients that owe taxes every year. Tax planning will help you to make adjustments on your W4 if necessary and plan ahead for what you might owe in the coming year. If we recommended that you do a tax plan or if this is something that you would be interested in, please reach out to the office. We will be happy to talk with you about it.

How Will the SECURE 2.0 Act Impact You?

If you are saving for retirement, the Secure Act 2.0 may impact you this year. Below are a few key provisions to consider:

  • SIMPLE and SEP IRAs can offer Roth options
  • Employer-matching contributions can be made on an after-tax basis. It's important to consider that these contributions will be included in gross income and taxable in the year it's received. If you opt in to this you will need to monitor how it may impact your income tax bracket
  • The age requirement for RMDs increases from age 72 to age 73
  • Certain individuals are exempt from the 10% early distribution penalty, including:
  • Public safety officers with at least 25 years of service with the employer sponsoring the plan
  • Terminally ill individuals
  • Corrections officers who are employees of state and local governments

Unclaimed Refund Scam

The IRS has issued a warning about a new scam related to unclaimed refunds. Identity thieves are sending out cardboard envelopes requesting taxpayers to send photos and bank information so they can receive an unclaimed refund. The contact information on the letters does not belong to the IRS and responding may allow fraudsters to get your tax refund and other sensitive information.

If you receive a suspicious letter, it will contain warning signs, such as odd punctuation, a mixture of fonts, and other inaccuracies. If you're unsure about a letter, please confirm its legitimacy before providing any information.

Summer Office Hours

Monday - Thursday

9:00 AM to 4:00 PM

Closed on Fridays