Announcing 1 New CPA at Scheffel Boyle

Scheffel Boyle CPAs is pleased to announce an accountant at their Edwardsville office who has officially earned his CPA designation. Brad Spotanski has passed the four parts of the AICPA’s administered CPA exam. He is now among over 40 Certified Public Accountants working throughout Scheffel Boyle’s seven offices.

Brad graduated from McKendree University with his Bachelor of Business Administration in Accounting and Economics/Finance in 2014. He joined the Scheffel Boyle team in 2015 and is currently a Supervisor in the firm’s Edwardsville office.

IRS: MO Storm & Flooding Victims Now Eligible for Tax Relief

Storm victims in parts of Missouri now have until November 15, 2022, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. Currently, individuals and households that reside or have a business in the Independent City of St. Louis, as well as St. Charles, Montgomery and St. Louis counties in Missouri, qualify for tax relief. The same relief will be available to any other locality added later by FEMA.

The tax relief postpones various tax filing and payment deadlines that occurred starting on July 25, 2022. As a result, affected individuals and businesses will have until November 15, 2022, to file returns and pay any taxes that were originally due during this period.

This means individuals who had a valid extension to file their 2021 return due to run out on October 17, 2022, will now have until November 15, 2022, to file. The IRS noted, however, that because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this relief.

The November 15, 2022 deadline also applies to quarterly estimated income tax payments due on September 15, 2022, and the quarterly payroll and excise tax returns normally due on August 1 and October. 31, 2022. Businesses with an original or extended due date also have the additional time including, among others, calendar-year partnerships and S corporations whose 2021 extensions run out on September 15, 2022 and calendar-year corporations whose 2021 extensions run out on October 17, 2022.

In addition, penalties on payroll and excise tax deposits due on or after July 25, 2022 and before August 9, 2022, will be abated as long as the deposits were made by August 9, 2022.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2022 return normally filed next year), or the return for the prior year (2021).

The Missouri Department of Revenue also announced that it will grant the same tax extensions as the IRS to assist Missouri individuals and businesses impact by the recent flooding.  Taxpayers requesting an extension should note the following on their returns when filed: “July 2022 flood extension.”

Note that if you have other state returns to file or payments to make, those deadlines have not been extended.

 

If you have any questions regarding this extension, please give us a call. We’re always here to help!

2022 State of Illinois Tax Rebates

Under the Illinois Family Relief Plan, one-time individual income and property tax rebates will be issued to taxpayers who meet certain requirements. Those who are eligible will receive one of both rebates, which are expected to begin being issued the week of September 12.

As always, if you have any questions, please contact your trusted Scheffel Boyle CPA.

You may also go to Illinois.gov for FAQs and additional resources regarding these 2022 tax rebates.

Scheffel Boyle CPAs Welcomes 6 Staff Accountants & 5 Interns

 

 

 

 

 

 

 

Scheffel Boyle CPAs is pleased to announce the recent addition of six Staff Accountants and five Summer Interns to their growing team. The local public accounting firm welcomed their newest full-time Staff Accountants to its Alton, Edwardsville, and Belleville offices, with plans for more growth later this year.

The additions include Southern Illinois University Edwardsville graduates Brendan Smith, Reilly Weaver, Cailee Schmidt and Tawney Colombo; Elliott Prott from McKendree University; and Alex Birchler from Drake University. Brendan, Reilly, Cailee, Tawney, and Elliott all completed Scheffel Boyle’s FOCUS Internship program this past Spring and will now continue their careers as the newest Staff Accountants of the 100+ employee public accounting firm.

The firm also welcomed 5 interns for the Summer Semester. They include Southern Illinois University Edwardsville students John Wyatt and Trey Meyer; Megan Higgins from Eastern Illinois University; Brooke Wilson from the University of Mississippi; and Kendra Goldschmidt from Central Methodist University.

With seven offices throughout Southern Illinois, Scheffel Boyle is recognized as one of the largest CPA firms in the entire St. Louis region. The firm has career opportunities available to accounting students currently enrolled in school, recent college graduates, and experienced accounting professionals. To learn more about available opportunities and the benefits of joining the Scheffel Boyle team, please visit the Careers section of their website, www.scheffelboyle.com.

After filing your taxes, what records can you toss?

If you’ve filed your 2021 tax return, you may want to do some spring cleaning, starting with tax related paper clutter. Paring down is good. Just be careful to hold onto essential records that may be needed in the event of an IRS audit. Some documents may be needed to help you collect a future refund or assist with filing your return next year. Before you start tossing or shredding documents, read the rules to learn what must be kept — for how long — and what can be safely discarded.

The General Rules

At a minimum, you should keep tax records for as long as the IRS can audit your tax return or assess additional taxes. That’s usually three years after you file your return. This means you potentially can get rid of most records related to tax returns for 2018 and earlier years. However, the statute of limitations extends to six years for taxpayers who understate their adjusted gross income by more than 25%. What constitutes an understatement may go beyond simply not reporting items of income. So, to be safe, a general rule of thumb is to save tax records for six years from filing.

Keep Some Records Longer

You need to hang onto some tax-related records beyond the statute of limitations. For example:

  • Keep the tax returns themselves indefinitely, so you can prove to the IRS that you did file a legitimate return. (If you didn’t file a return or if you filed a fraudulent return, there’s no statute of limitations.)
  • Retain W-2 forms until you begin receiving Social Security benefits. That may seem long, but if questions arise regarding your work record or earnings for a particular year, you’ll need your W-2 forms to help provide the documentation needed.
  • Keep records related to real estate or investments for as long as you own the assets, plus at least three years after you sell them and report the sales on your tax return (or six years if you want extra protection).
  • Hang onto records associated with retirement accounts until you’ve depleted the accounts and reported the last withdrawal on your tax return, plus three (or six) years.
  • Retain records that support figures affecting multiple years, such as carryovers of charitable deductions or casualty losses. These need to be saved until they no longer have effect, plus seven years.

If you have any questions, please feel free to contact your trusted Scheffel Boyle team member. We are always here to help!

Second Quarter Tax Calendar

April 18 — Last day to file (or extend) your 2021 personal return and pay any tax that is due.

  • First quarter 2022 estimated tax payments for individuals, trusts and calendar-year corporations are due.
  • 2021 returns are due for trusts and calendar-year estates and C corporations.
  • FinCEN Form 114 (“Report of Foreign Bank and Financial Accounts”) is due — but an automatic extension applies to October 15.
  • Any final contribution you plan to make to an IRA or Education Savings Account for 2021 is due.
  • SEP and profit-sharing plan contributions are also due today if your return is not being extended.

May 2 — Employers must file Form 941 (“Employer’s Federal Quarterly Tax Return”) for the first quarter (May 10 if all taxes are deposited in full and on time). Also, employers must deposit FUTA taxes owed through March if the liability is more than $500.

May 16

  • Calendar-year exempt organizations must file (or extend) their 2021 Forms 990, 990- EZ or 990-PF returns.
  • IRS and State of Illinois extension of individual and business tax returns due for the following counties: Bond, Cass, Coles, Effingham, Fayette, Jersey, Macoupin, Madison, Menard, Montgomery, Morgan, Moultrie, Pike, and Shelby.

June 15 — Second quarter 2022 estimated tax payments are due for individuals, calendar-year corporations, estates and trusts.

 

If you have any questions, please feel free to contact your trusted Scheffel Boyle team member. We are always here to help!

Scheffel Boyle CPAs Ranks #11, #15 in STL Business Journal’s Annual Largest Accounting Firms Lists

Scheffel Boyle has ranked #11 for number of CPAs and #15 for number of professionals on the St. Louis Business Journal’s annual Largest Accounting Firms lists.

Each year, The Journal publishes two lists for ranking CPA firms: one based on the number of CPAs and the other on the number of professionals (employees required to have continuing education hours).

Thank you to our clients, employees, and community partners for all they have done to help us grow and continue serving the St. Louis and Metro East region.

Scheffel Boyle CPAs Welcomes 22 Interns

 

 

 

 

 

 

 

 

 

Scheffel Boyle CPAs is pleased to announce the recent addition of 12 Senior Interns and 10 Junior Interns to their growing team.

The 2022 FOCUS Senior Interns include Southern Illinois University Edwardsville students Trey Meyer, Lindsay Harris, Brett Froess, Brendan Smith, Tawney Colombo, Cailee Schmidt, Diana Watson, John Wyatt, Reilly Weaver, and Matthew Neier; and McKendree University students Atticus Harris and Elliott Prott.

The 2022 FOCUS Junior Interns include Southern Illinois University Edwardsville students Kristian Beal, Hannah Krumwiede, Emily Schmidt, and Christiana Huber; Kendra Goldschmidt from Central Methodist University; Emily Knop-Duvall from Southwestern Illinois College; Hannah Cox from the University of Illinois Springfield; Brett Paubel from University of Missouri-St. Louis; Johnathan Bumpers from McKendree University; and Kelley Edens from Maryville University.

The FOCUS program places all intern accounting students throughout all seven of the firm’s offices for a Spring Internship. Students who are accepted into the program receive extensive training and real-world experience during the firm’s busiest time – tax season. In addition, each intern is entered into a mentor program in order to walk them through training measures and best practices. The paid internship program receives hundreds of applicants each year from colleges throughout both Illinois and Missouri.

With seven offices throughout Southern Illinois, Scheffel Boyle is recognized as one of the largest CPA firms in the entire St. Louis region. The firm has career opportunities available to accounting students currently enrolled in school, recent college graduates, and experienced accounting professionals. To learn more about available opportunities and the benefits of joining the Scheffel Boyle team, please visit the Careers section of their website, www.scheffelboyle.com.

First Quarter Tax Calendar

January 31 — File 2021 Forms W-2 (“Wage and Tax Statement”) with the Social Security Administration and provide copies to employees.

  • File 2021 Forms 1099-NEC (“Nonemployee Compensation”) (paper or electronic) reporting nonemployee compensation payments to the IRS and provide copies to recipients, along with a related Form 1096 (“Annual Summary and Transmittal of U.S. Information Returns”) to the IRS.
  • Most employers must file Form 941 (“Employer’s Quarterly Federal Tax Return”) to report Medicare, Social Security and income taxes withheld in the fourth quarter of 2021. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the quarter in full and on time, you have until February 10 to file the return. Employers who have an estimated annual employment tax liability of $1,000 or less may be eligible to file Form 944 (“Employer’s Annual Federal Tax Return”).
  • File Form 940* (“Employer’s Annual Federal Unemployment [FUTA] Tax Return”) for 2021. If your undeposited tax is $500 or less, you can either pay it with your return or deposit it. If it’s more than $500, you must deposit it. However, if you deposited the tax for the year in full and on time, you have until February 10 to file the return.
  • File Form 943* (“Employer’s Annual Federal Tax Return for Agricultural Employees”) to report Social Security, Medicare and withheld income taxes for 2021. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the year in full and on time, you have until February 10 to file the return.
  • File Form 945* (“Annual Return of Withheld Federal Income Tax”) for 2021 to report income tax withheld on all nonpayroll items, including backup withholding and withholding on pensions, annuities, IRAs, etc. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the year in full and on time, you have until February 10 to file the return.

February 28 — File 2021 Form 1099-MISC (“Miscellaneous Income”) reporting certain payments to certain persons and provide copies to recipients, along with a related Form 1096 (“Annual Summary and Transmittal of U.S. Information Returns”) to the IRS.

March 15* — 2021 tax returns must be filed or extended for calendar-year partnerships and S corporations. If the return isn’t extended, this is also the last day for those types of entities to make 2021 contributions to pension and profit-sharing plans.

 

*Reminder: Due to the devastating storms that took place on December 10, 2021 in the area, both the IRS & the State of Illinois have made an extension of business tax returns to May 16, 2022, for the following counties: Bond, Cass, Coles, Effingham, Fayette, Jersey, Macoupin, Madison, Menard, Montgomery, Morgan, Moultrie, Pike, and Shelby.

 

If you have any questions, please feel free to contact your trusted Scheffel Boyle team member. We are always here to help!

Possible Tax Refund Delays this Season

Last week, National Taxpayer Advocate Erin Collins gave her annual tax filing season report to Congress on the 2021 tax year.

With 77% of individual taxpayers receiving tax refunds last year alone, tens of millions of taxpayers saw delays in processing their tax returns. According to both the IRS and the Treasury Department, similar or even worse delays are expected to happen this year as well due to staffing shortages stemming from the COVID-19 pandemic and budget cuts, along with new tax relief measures.

Since last tax season, the IRS is still dealing with millions of unprocessed tax returns, particularly the ones that arrived on paper. Collins said before Congress, “Paper is the IRS’s Kryptonite, and the agency is still buried in it.”

With many taxpayers still waiting for their refunds from nine months ago, Collins’ report indicates that the IRS still has backlogs of 6 million unprocessed original individual returns (Forms 1040), 2.3 million unprocessed amended individual returns (Forms 1040-X), more than 2 million unprocessed employer’s quarterly tax returns (Forms 941 and 941-X), and about 5 million pieces of taxpayer correspondence.

While electronically filed returns are considered far better than paper returns, there have been millions of them suspended during processing due to discrepancies between the amounts reflected on IRS records and amounts claimed on the returns. Also, when a taxpayer disagreed with an error notice, their response went into the IRS’s paper processing backlog, further delaying the refund.

Collins’ report also stated that the two types of IRS help, “Where’s My Refund?” app and telephone service haven’t provided all the answers. The app doesn’t give information on unprocessed returns, and it doesn’t explain any status delays, the reasons for the delays, where returns stand in the processing pipeline, or what actions taxpayers should take, if any. For their telephone service, only about 11% of the 282 million calls were answered, having an average wait time of at least 23 minutes. From this, most callers could not obtain answers to their tax law questions, get help with account problems, or speak with a customer service representative about a compliance notice.

 

If you have any questions, please feel free to contact your trusted Scheffel Boyle team member. We will continue to monitor this as the 2021 filing season progresses. We are always here to help!