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!

Scheffel Boyle CPAs Named “Best Accountant” by The Telegraph

We are pleased to announce that The Telegraph’s “Best of the Best” has named Scheffel Boyle CPAs as “Best Accountant” in Madison County and the Riverbend! As always, we would not be here without our clients and surrounding communities. Thank you to everyone who continues to support us!

You can find the article here: https://www.thetelegraph.com/…/Best-of-the-Best-of…

Two Important IRS Letters to be Sent this Month

If you were eligible for the third stimulus check or the advanced child tax credit payments in 2021, you need to be on the lookout for two letters from the IRS. They will be arriving by the end of January 2022.

 

2021 Economic Impact Payment (Third Stimulus Check)

People who received the third stimulus check will receive Letter 6475 from the IRS.

This will help them determine what the taxpayer received and if they qualify for the Recovery Rebate Credit on their 2021 tax returns.

“Letter 6475 only applies to the third round of Economic Impact Payments that was issued starting in March 2021 and continued through December 2021,” the IRS said on its website.

 

Advance Child Tax Credit Payment

Families who received advance child tax credit payments in 2021 will receive Letter 6419 from the IRS.

This letter will tell eligible families how much of the credit they have received so far and the number of qualifying children that was used to calculate that amount. From this, the taxpayer will be able to determine out how much of a tax credit to claim on their tax returns this year.

Monthly payments that were sent to millions of families with eligible children from July to December only accounted for half of the credit. Now, those who got the money need to show what they received to make sure they get any remaining credit on their 2021 tax return if applicable.

If taxpayers don’t receive the letter, they can also go to the IRS CTC Update Portal to see how much they’ve received.

As of right now, the monthly advance child tax credit payments are not set to continue in 2022.

If you receive these letters, please hold on to them and provide them to your tax preparer with your other 2021 tax documents.

 

 

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

Tax Deadline Extension & IL Pass-Through Entity Tax to Avoid SALT Limit

Tax Deadline Extension

On December 20, 2021, the IRS announced an extension of the tax deadline to May 16, 2022, for taxpayers in certain counties. This includes the filing of individual and business tax returns along with their estimated tax payments. This relief is being granted to taxpayers affected by the devastating storms that took place on December 10 in many parts of Illinois. This relief is currently available for the following counties: Bond, Cass, Coles, Effingham, Fayette, Jersey, Macoupin, Madison, Menard, Montgomery, Morgan, Moultrie, Pike, and Shelby. The original filing deadline for 2021 individual tax returns was April 18, 2022. The original due date for business tax returns was March 15, 2022, and April 18, 2022. The due date is now May 16, 2022, for both individual and business returns to be filed by taxpayers with an IRS address of record in the above counties. This also means taxpayers in the affected counties will have until May 16, 2022, to make 2021 IRA contributions. The quarterly income tax payments originally due on January 18, 2022, and April 18, 2022, are now also due on May 16, 2022. Also, farmers who choose to forgo making estimated tax payments and normally file their returns by March 1, 2022, will now have until May 16, 2022, to file their 2021 tax return and pay any tax due.

The IRS automatically provides this filing and penalty relief to anyone with an IRS address of record located in the counties listed above. There is no need to contact anyone to get this relief.

 

Illinois Pass-Through Entity Tax to Avoid SALT Limit

In 2017, the Tax Cuts and Job Act limited state and local income taxes paid by individuals, whether from pass-through entity income or other income to a SALT (State and Local Tax) cap of $10,000. Several states, including Illinois, enacted a pass-through tax to be paid at the entity level and credited at the individual level as a workaround to the federal SALT limit. The IRS recently released guidance approving these state workarounds.

An election is made by the partnership or S corporation for the Illinois pass-through entity (PTE) tax and estimated payments are required. An election may be made each year and is irrevocable for the year made. If you decide to elect the PTE tax, the partnership or S corporation is not required to withhold income tax on the partners that do not reside in the state of the partnership or S corporation. This allows a partner or shareholder to deduct Illinois tax on the business income in full on the federal return. This will benefit taxpayers who itemize and are subject to the $10,000 SALT limit and those who do not itemize.

Until further guidance is issued, we are recommending that the IL pass-through entity tax be paid on or before 12/31/21 in order to claim a deduction on the partner’s or shareholder’s tax return.  This payment may be made using a payment voucher or through MyTax Illinois.

Shareholders of the S corporation and partners of the Partnership are allowed a refundable credit for the PTE tax paid by the pass-through entity. Those partners and shareholders must add their distributive share of the PTE tax back to their Illinois income. The tax liability at the partner level will then equal the PTE tax paid at the entity level.

 

Our team will continue to monitor the status of these and any other tax laws that change. Please contact your trusted Scheffel Boyle team member with questions. We are always here to help!

SBA Disaster Assistance in Response to the Coronavirus

In response to the coronavirus (COVID-19) pandemic affecting the small business community across the country, the U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury. Substantial economic injury means the business is unable to meet its obligations and pay its ordinary and necessary operating expenses. $50 billion in funding has been set aside for the program.

SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance per small business and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.  The loans can be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.

Loans will be underwritten by the federal SBA program. The interest rate is 3.75% for small businesses, and 2.75% for non-profit organizations.  Businesses with credit available elsewhere are usually not eligible for these loans, but they have now opened them up to where that regulation no longer applies. The loans offer long-term repayment terms in order to keep payments affordable, up to 30 years, and will be determined on a case-by-case basis based upon each borrower’s ability to repay.

While the loans are offered through a federal program, the SBA coordinates directly with state Governors to provide the loans. Governors apply to be considered a “designated state or territory” through SBA so their local businesses can receive this assistance. Once a declaration is made by SBA, information on the application process will be made available to the affected communities and updated online here.

Most states and territories are still in the process of applying to be a designated area for Economic Injury Disaster Loan assistance. As part of this process, many states are asking businesses to fill out and submit surveys on the state of their business to better understand the need in their area. The list of designated areas will continue to grow as states and territories apply and are approved.  Please check www.sba.gov for updates as more states are added.

Click here to apply for disaster assistance through SBA.gov.

Click here for the SBA Coronavirus Disaster Assistance Page for more information.

Our team is here to help you navigate these difficult and unprecedented times. We are consistently monitoring the resources available to our clients and how they can be utilized by those we serve. Please reach out to your dedicated Scheffel Boyle team member for more information.

Missouri Announces Payment and Filing Relief Amidst COVID-19 Pandemic

In a press release dated March 21st, 2020, Missouri Governor Parson announced the extended payment and filing deadlines for Missouri state income tax. The decision mirrors that of the Internal Revenue Service in response to the evolving issues surrounding COVID-19 (coronavirus).

Key takeaways surrounding the Governor’s announcement are as follows:

  • the Missouri state income tax filing deadline has been moved from April 15 to July 15, 2020
  • all individuals, C corporations, and trusts and estates will also be granted an extension to July 15, 2020 for payment of income tax due
  • estimated tax payments for the tax year 2020 normally due on April 15, 2020 will also be extended to July 15, 2020
  • no penalties or interest will be assessed until July 16, 2020 and extensions are able to be filed until July 15, 2020 for your 2019 return

Missouri’s decision comes after the Federal deadline extension was announced last week. Our team is closely monitoring this situation as it evolves. As of today, March 23rd, Illinois has yet to announce any extension of filing or payment deadlines. Our team will keep you updated if Illinois follows Missouri’s lead on this issue.

Asset Protection is Just as Important as Tax Planning

Like many financially savvy individuals, you’re probably already thinking about filing your tax return next year. But don’t overlook another critical and equally important aspect of financial planning: asset protection. Here are some fundamental strategies to consider.


Buy Liability Insurance

Liability insurance policies help protect your assets from the financial risks associated with personal liability that results from an adverse legal judgment. Auto and homeowner’s policies, for example, usually include some liability coverage. Increasing your liability coverage beyond the standard amounts will provide additional asset protection.

Personal liability umbrella insurance can give you even more liability coverage above the limits of your auto and homeowner’s policies. For instance, if you were sued for causing a car accident or found liable for injuries suffered by a visitor to your home, umbrella insurance could provide coverage up to the policy limits (such as $1 million).

Look to Statutory Protection

Federal or state law exempts certain kinds of property and assets from creditor liens. Thus, some assets you own may automatically be protected due to statutory guidelines. Qualified retirement plans are this type of asset, as are IRAs and 401(k) plans, life insurance proceeds and Section 529 college savings plans. But keep in mind that inherited assets may not have the same degree of protection.

The amount of home equity that’s protected (generally called the “homestead exemption”) depends on state law. In some states, it’s very generous, but in others it’s extremely limited, given the value of homes today. In a couple of states, there’s no protection. Consult with an attorney about your state’s laws.

Establish a Trust

Assets placed in an irrevocable trust can’t be removed, nor can the trust terms be changed. Thus, you’ve effectively relinquished control over the assets and put them out of reach of your creditors. The asset transfer must be done in advance of the act that created the liability, or the transfer could be nullified. In other words, the time to think about setting up such a trust is before you need to take advantage of it.

An irrevocable trust also can help you protect assets for your children and grandchildren. Consider structuring the trust in a way that effectively gives future generations the benefit of the assets without transferring ownership of them to your heirs. This can shield those assets from your descendants’ future creditors.

If you decide to use trusts as part of your asset protection strategy, remember that they may be subject to higher income tax rates and additional tax filing requirements. Trusts also may be costly to set up and require expert legal counsel to administer and maintain.

Obtain Expert Assistance

The details involved in implementing asset protection strategies can be complex. We can offer you guidance in your case.

 

Sidebar: Asset Ownership Structure is Key

Ownership of your assets plays an important role in whether they can be seized by creditors. Thus, it might be wise in some situations to transfer ownership of certain assets to your spouse. If you’re at a high risk of liability — for example, you’re a business owner — one strategy might be to retain ownership of assets with statutory protection, as mentioned in the main article, and transfer ownership of all other assets to your spouse.

Friends Trivia for the Troops

Could we BE more excited?!

What could be better than a night of Friends Trivia? Well, we channeled our inner UNAGI and thought, Friends Trivia for the Troops of course! All proceeds and donations received from this event will go toward our Scheffel Boyle Shares project for the year of assembling care packages for troops deployed overseas. Please consider participating for a night of fun and philanthropy!

Friends Trivia for the Troops
Big Daddy’s Edwardsville
Wednesday, November 13th
Registration Opens at 6:30, Trivia Starts at 7pm

Reserved seating is SOLD OUT! Overflow seating will be available that evening first come, first serve for a limited number of tables on a heated, enclosed patio.

Be sure to follow the event on Facebook to get updates!


Want to earn some mulligans?

Bring a donation for our Troops from the wishlist below and you’ll earn mulligans! Max of 5 mulligans per team.

  • High-quality socks (black crew length)
  • Good soap, shampoo, body wash, or face wash
  • Toothpaste, toothbrushes, and floss
  • Travel-size deodorant
  • Sodoku books and crossword puzzles
  • Instant coffee
  • Crystal Light drink packets
  • Instant sweet tea packs
  • Reese’s, M&Ms, and other candy
  • Fruit snacks
  • Baby wipes
  • Sunscreen
  • Hand sanitizer
  • Lens cleaning cloths
  • Magazines and books
  • Board games
  • Decks of cards
  • Puzzles
  • Batteries (AA and AAA)
  • Slim Jims
  • Protein Bars
  • Gum
  • Sunflower Seeds
  • Twizzlers
  • Beef Jerky
  • Hair ties
  • Bobby pins
  • Dried fruit
  • Stamps
  • Words of encouragement/letters/LOVE

 

Download our event flyer here!