Jerry Jones CPA
Wouldn’t it be nice to have a CPA that you deal directly with, that understands your business, that works in all 50 states and is there for you when you need him?
“Jerry has been my CPA for several years now. When I came to Jerry I had a previous CPA that was not giving me the guidance needed. Jerry’s depth of business knowledge and experience in dealing with the IRS has been invaluable. My businesses are now organized properly and run very smoothly from a tax and accounting standpoint”.
Gary & Kathy D., Owner, WMAC, LLC

Interest on Home Equity Loans Often Still Deductible Under New Law

WASHINGTON - The Internal Revenue Service today advised taxpayers that in many cases they can continue to deduct interest paid on home equity loans.

Responding to many questions received from taxpayers and tax professionals, the IRS said that despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labelled. The Tax Cuts and Jobs Act of 2017, enacted Dec. 22, suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer's home that secures the loan.

Under the new law, for example, interest on a home equity loan used to build an addition to an existing home is typically deductible, while interest on the same loan used to pay personal living expenses, such as credit card debts, is not. As under prior law, the loan must be secured by the taxpayer's main home or second home (known as a qualified residence), not exceed the cost of the home and meet other requirements.

Avoid the Rush: Taxpayers Must Validate Identity When Calling the IRS

IRS-identity-validation-Jerry-Jones

The Internal Revenue Service today reminded taxpayers and tax professionals that they will be asked to verify their identities if they call the IRS. This is part of the agency's efforts to keep taxpayer data secure from identity thieves.

Days before and after Presidents Day mark the peak period for taxpayer phone calls to the IRS. To avoid the rush, callers should be prepared to verify their identities if they need to call the agency.

IRS call center professionals take great care to make certain that they only discuss personal information with the taxpayer or someone the taxpayer authorizes to speak on their behalf. To ensure that taxpayers do not have to call back, the IRS reminds taxpayers to have the following documents ready:

  • Social Security numbers and birth dates for those who were named on the tax return in question

  • An Individual Taxpayer Identification Number (ITIN) letter if the taxpayer has one in lieu of a Social Security number (SSN)

  • Filing status – Single, Head of Household, Married Filing Joint or Married Filing Separate

  • The prior-year tax return. Telephone assistors may need to verify taxpayer identity with information from the return before answering certain questions

  • A copy of the tax return in question

  • Any IRS letters or notices received by the taxpayer

Taxpayers with Expired ITINs Should Renew Them Now to File Their 2017 Taxes

Taxpayers with an expired Individual Taxpayer Identification Number should renew it as soon as possible if they need to file a 2017 tax return. They can renew it by submitting a Form W-7. Tax returns with expired ITINs will face delays. Affected taxpayers may also lose out on key tax benefits until they renew their ITINs. It can take the IRS up to 11 weeks to complete an ITIN renewal during tax season.

Expired ITINs

ITINs that expired at the end of 2017 include those:

  • Not used on a tax return at least once in the past three years.
  • With middle digits of 70, 71, 72 or 80.

ITINs that have middle digits of 78 or 79 expired on December 31, 2016, but taxpayers can still renew them.

Scam Alert: IRS Urges Taxpayers to Watch Out for Erroneous Refunds; Beware of Fake Calls to Return Money to a Collection Agency

watch-out-4-erroneous-refunds-jerry-jones-cpaWASHINGTON – The Internal Revenue Service today warned taxpayers of a quickly growing scam involving erroneous tax refunds being deposited into their bank accounts. The IRS also offered a step-by-step explanation for how to return the funds and avoid being scammed.

Following up on a Security Summit alert issued Feb. 2, the IRS issued this additional warning about the new scheme after discovering more tax practitioners' computer files have been breached. In addition, the number of potential taxpayer victims jumped from a few hundred to several thousand in just days. The IRS Criminal Investigation division continues its investigation into the scope and breadth of this scheme.

These criminals have a new twist on an old scam. After stealing client data from tax professionals and filing fraudulent tax returns, these criminals use the taxpayers' real bank accounts for the deposit.

Thieves are then using various tactics to reclaim the refund from the taxpayers, and their versions of the scam may continue to evolve.

How tax reform could affect your small or midsize firm

By Rachelle Damico

  • Most small and midsize businesses will see a tax cut under the new law

  • Pass-through companies can deduct 20 percent of income

  • What to think about if you're thinking of changing your business structure

The Republican tax reform plan, signed into law by President Donald Trump in December, aims to encourage economic growth by adjusting how small and midsize businesses and corporations are taxed.

Many American companies will see significant tax cuts, as well as other benefits that can help drive growth.

"I think we'll see a lot of companies investing in higher salaries and benefits, because in such a tight labor market they're all struggling with how to attract talent, and when that's happening it's big pressure on salary and benefits," said Rob Fowler, president and CEO of the Small Business Association of Michigan.

However, the benefits for small and midsize businesses are complex. Rather than lowering the tax rate on all pass-through companies, the final bill allows pass-throughs to deduct up to 20 percent of their income based on what type of company they are.

"I could see some companies examining whether or not they are organized the best way," Fowler said. "A lot of people organized their company the way they did because of the federal tax law."

Kurt Piwko, partner at accounting and business advisory firm Plante Moran PLLC, said many of his business clients view the law favorably, but are confused as to how it will affect their company.

Designed by NJ Designs