- February 29 – Payers must file information returns, such as Forms 1099, with the IRS. This deadline is extended to March 31 when the forms are filed electronically.
- February 29 – Employers must send W-2 copies to the Social Security Administration. This deadline is extended to March 31 for electronic filing.
- March 1 – Farmers and fishermen who did not make 2015 estimated tax payments must file 2015 tax returns and pay taxes in full to avoid a penalty.
- March 15 – 2015 calendar-year corporation income tax returns are due.
- March 15 – Deadline for calendar-year corporations to elect S corporation status for 2016.
- March 31 – Large employers must furnish Forms 1095-C to employees.
Governor Wolf has announced the successful January 1, 2016 phase-out of Pennsylvania’s Capital Stock and Foreign Franchise tax. These taxes were imposed on corporations, limited liability companies, and other companies doing business in Pennsylvania. The Pennsylvania Department of Revenue has noted that the elimination of the Capital Stock and Foreign Franchise Taxes means that many business types, such as S Corporations and limited liability companies will be filing their final corporation tax returns for 2015 and these returns will be marked as final returns.
Certain tax numbers are adjusted for inflation each year. This year, many of the numbers are unchanged or change only slightly from 2015 amounts. Here are some of the tax numbers to use in your 2016 tax planning.
Discussing finances with your parents may be a talk none of you are eager to tackle. But addressing the topic can benefit your entire family by clarifying your parents’ wishes and enabling you to help establish a joint plan for carrying those wishes to fruition. Here are questions that can start the dialogue.
What supporting documentation do you need to claim charitable deductions on your federal income tax return?
In general, you can support monetary contributions of any amount with a cancelled check, credit card statement, proof of payroll deduction, or a receipt from the charity. The paperwork must show the organization’s name and the amount and date of your contribution.
When you contribute cash of $250 or more, get a written acknowledgement from the charity. The receipt must show the name of the charity, the date of your donation, and the amount donated, as well as a description and the estimated value of any nondeductible item (such as a book or dinner) provided to you.
For property donations, keep copies of support for the value you claimed. The allowable deduction for a property donation is generally limited to the lesser of cost (or other basis) or fair market value. That means you’ll need records showing what you paid for the item, as well as support for the current value. For example, you might use ads from second-hand stores or consignment shops to determine the fair market value of donated clothing and household items.
Be aware that the higher the value of a property donation, the more support you need. When you donate an item with a value under $250, ask for a receipt from the charity showing the organization’s name, the date and location of the contribution, and a description of the property. For items valued up to $500, the receipt also needs to include a statement indicating whether you were given any goods or services in exchange for your contribution. In addition, the receipt must provide a description and estimated value for those goods or services. If you donate property with a value between $500 and $5,000, your paperwork must show how and when you got the property and its cost or other basis. Items valued over $5,000 generally need a written appraisal from a qualified appraiser.
Additional requirements apply when you donate property that has appreciated in value. Call us for more information.
In January, RLH welcomed Phil Stoler, CPA as an Audit Manager for the firm. Phil comes to RLH with over 25 years of public accounting experience with local and regional CPA firms. His experience has been focused on audits, reviews, and compilations of nonprofit and governmental entities. Phil has also has experience with commercial entities, financial institutions, and publicly traded companies as well as tax experience with both nonprofit and commercial entities.
Phil enjoys working with his clients and helping them to navigate the difficulties in accounting, financial reporting, and tax compliance, so that they can focus their efforts on carrying out the mission of their organizations and the operations of their businesses. He also enjoys teaching and training younger team members so the CPA profession can continue to thrive.
Phil has been a CPA since 1987 and is a member of the AICPA and MACPA. He is a member of the MACPA Government/Not-for-Profit Committee and former co-chair of the MACPA Not-for-Profit Committee. Phil is Treasurer of the Glenwood Life Counseling Center in North Baltimore; Accounting Adviser to the Mid-Atlantic Youth Ballet in Towson, Maryland, a member of the Alliance Committee of the National Alliance of Mental Illness - Maryland Chapter, and a member of the Northwest Area Advisory Council of the Baltimore County School System. He lives in Owings Mills, Maryland and has three daughters ages 30, 27 and 20 and is waiting his first grandchild due in April 2016.
Welcome to the RLH Team, Phil!
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