Done with taxes this year? Use 2018 return to get 2019 withholding right 
 
WASHINGTON — Millions of taxpayers filed a 2018 tax return in the last few weeks, making now a prime time for everyone to consider whether their tax situation came out as they expected. If it didn’t, they can use their recently finished 2018 return and the IRS Withholding Calculator to do a Paycheck Checkup and adjust their withholding.
Checking and then adjusting their tax withholding can help make sure they don’t owe more tax than they are expecting. Usually they can also avoid a surprise tax bill and possibly a penalty when they file next year. At the same time, with the average refund more than $2,700, some taxpayers may choose to reduce their withholding to have a larger paycheck and smaller refund.
Now is an ideal time to check withholding, since having a completed tax return is helpful when using the Withholding Calculator on IRS.gov. Since taxpayers need to estimate deductions, credits and other amounts for 2019, having similar information from the 2018 return can make using the Withholding Calculator easier.

Who should do a Paycheck Checkup?
Though doing a Paycheck Checkup is a good idea every year, for many people, it’s even more important this year. This includes anyone who:

• Adjusted their withholding in 2018 – especially those who did so in the middle or later part of the year.
• Owed additional tax when they filed their tax return this year.
• Had a refund that was larger or smaller than expected.
• Had life changes such as marriage, childbirth, adoption, buying a home or when income changes. 

In addition, most people are affected by changes made in the Tax Cuts and Jobs Act (TCJA), the tax reform legislation enacted in December 2017. These changes included lowered tax rates, increased standard deductions, suspension of personal exemptions, the increased Child Tax Credit and limited or discontinued deductions. As a result, the IRS continues to encourage people to check their withholding, even if they did a Paycheck Checkup in 2018.
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This includes taxpayers who:

• Have children and claim credits, such as the Child Tax Credit
• Have older dependents, including children age 17 or older
• Itemized deductions in the past
• Are a two-income family
• Have two or more jobs at the same time
• Only work part of the year
• Have high income or a complex tax return

Those with more complex situations may need to use Publication 505, Tax Withholding and Estimated Tax, instead of the Withholding Calculator. This includes employees who owe self-employment tax, the alternative minimum tax or tax on unearned income from dependents. It can also help those who receive non-wage income, such as dividends, capital gains, rents and royalties. The publication includes worksheets and examples to guide taxpayers through these special situations.

Sooner is better for a Paycheck Checkup
The IRS urges everyone to do a Paycheck Checkup as early in the year as possible so that if a tax withholding adjustment is needed, there is more time for withholding to happen evenly during the rest of the year. Waiting means there are fewer pay periods to withhold the necessary federal tax.

Changing withholding
Employees can use the results from the Withholding Calculator to see if they need to complete a new Form W-4, Employee’s Withholding Allowance Certificate, and submit it to their employer. In some instances, the calculator may recommend that the employee have an additional flat-dollar amount withheld each pay period. Taxpayers don’t need to send this form to the IRS after giving it to their employer.
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Those who don’t pay taxes through withholding, or pay too little tax that way, may still use the Withholding Calculator to determine if they need to pay estimated tax to the IRS quarterly during the year. Those who are self-employed generally pay tax this way. See Form 1040-ES, Estimated Taxes for Individuals, for details.

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Some people get more time to file without asking; Anyone else can request an automatic extension

Direct from the IRS:

WASHINGTON —Anyone can request an automatic tax-filing extension, but some people get extra time without asking, according to the Internal Revenue Service.

The IRS estimates that more than 14.6 million taxpayers will get an automatic extension this filing season, either by filing a form or making an electronic tax payment. But some taxpayers, such as disaster victims, those serving in a combat zone and Americans living abroad, get more time, even if they don’t ask for it. Here are details on each of these special tax-relief provisions.

Victims of certain federally declared disasters (Learn More Here)
Some disaster victims may have extra time to file their tax returns and pay any taxes due. Currently, taxpayers affected by the Nov. 30, 2018, earthquake in parts of Alaska have until April 30, 2019, to file and pay. Similarly, those affected by the March 3, 2019, tornadoes and severe storms in parts of Alabama have until July 31, 2019, to file and pay. Residents of California impacted by wildfires on Nov. 8, 2018, have until April 30, 2019, to file and pay. And the March 9, 2019, winter storms and flooding in parts of Nebraska and the March 12, 2019, severe storms and flooding in parts of Iowa have until July 31, 2019, to file and pay. This relief applies to tax returns and tax payments currently due within the relief periods.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Thus, taxpayers need not contact the IRS 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.
This relief also includes additional time for making a 2018 IRA contribution and making estimated tax payments.

Combat zone taxpayers (Learn More Here)
Military service members and eligible support personnel serving in a combat zone have at least 180 days after they leave the combat zone to file their tax returns and pay any taxes due. This includes those serving in Iraq, Afghanistan and other combat zones. A complete list of designated combat zone localities can be found in Publication 3, Armed Forces’ Tax Guide, available on IRS.gov.
Combat zone extensions also give affected taxpayers more time for a variety of other tax-related actions, including contributing to an IRA. Various circumstances affect the exact length of the extension available to any given taxpayer.

Taxpayers outside the United States (Learn More Here)
U.S. citizens and resident aliens who live and work outside the U.S. and Puerto Rico have until June 17, 2019 to file their 2018 tax returns and pay any taxes due. They actually have two extra days because the normal June 15 extended deadline falls on Saturday this year.
The special June 17 deadline also applies to members of the military on duty outside the U.S. and Puerto Rico who do not qualify for the longer combat zone extension. Affected taxpayers should attach a statement to the tax return explaining which of these situations apply.
Though taxpayers abroad get more time to pay, interest -- currently at the rate of six percent per year, compounded daily -- applies to any payment received after the April deadline.

Everyone else
Taxpayers who don’t qualify for any of these three special situations can still get more time to file by submitting a request for an automatic extension of time to file. This will extend their deadline to file until Oct. 15, 2019. However, their tax payments are still due by the April due date.

An easy way to get the extra time is through Free File on IRS.gov. In a matter of minutes, anyone, regardless of income, can use this free service to electronically request an extension on Form 4868. To get the extension, taxpayers must estimate their tax liability on this form.

Another option is to pay electronically and get a tax-filing extension. The IRS will automatically process an extension when a taxpayer selects Form 4868 and makes a full or partial federal tax payment by the April due date using Direct Pay, the Electronic Federal Tax Payment System (EFTPS) or a debit or credit card. Under this option, there is no need to file a separate Form 4868.

​Electronic payment options are available at IRS.gov/payments.
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Direct from the IRS- Tax deadline approaches: IRS dispels five myths about tax refunds

WASHINGTON ― As the April tax-filing deadline approaches, the Internal Revenue Service understands that taxpayers are anxious to get details about their tax refunds. This has led to a number of common myths about refunds that often circulate on social media.
While there’s no secret way for taxpayers to find out when their refund will be issued, there are some key facts that can help people understand the refund process. Taxpayers should keep in mind the IRS issues nine out of 10 tax refunds in less than 21 days. And the easiest way to check on a refund is “Where’s My Refund?”, an online tool available on IRS.gov and through the IRS2Go app.
People can use “Where’s My Refund?” to check on the status of their tax return within 24 hours after the IRS receives an e-filed return or four weeks after a mailed paper return. The “Where’s My Refund?” tool is updated no more than once every 24 hours, usually overnight, so there’s no need to check the status more often.
Taxpayers should only call the IRS tax help hotline to talk to a representative if it has been:

• 21 days or more since their tax return was e-filed,
• Six weeks or more since their return was mailed, or when
• “Where’s My Refund?” tells the taxpayer to contact the IRS.

Below are five common myths about tax refunds:
Myth 1: Calling the IRS or a tax professional will provide a better refund date
Many people mistakenly think that talking to the IRS or calling their tax professional is the best way to find out when they will get their tax refund. In reality, the best way to check the status of a refund is online through the “Where’s My Refund?” tool at IRS.gov or via the IRS2Go mobile app. Alternatively, those without Internet access can reach “Where’s My Refund?” by calling the automated refund hotline at 800-829-1954. 
Taxpayers eager to know when their refund will be arriving should use the "Where's My Refund?" tool rather than calling and waiting on hold or ordering a tax transcript. “Where’s My Refund?” has the same information available to IRS telephone assistors so there is no need to call unless requested to do so by “Where’s My Refund?”
Myth 2: Ordering a tax transcript is a ‘secret way’ to get a refund date
Ordering a tax transcript will not help taxpayers find out when they will get their tax refund. While taxpayers can use a transcript to validate past income and tax filing status for mortgage, student and small business loan applications and to help with tax preparation, they should use “Where’s My Refund?” to check the status of their refund.
"Where’s My Refund?" shows the processing of the tax return from receipt to completion. It will tell the taxpayer their tax return has been received and if the refund has been approved or sent.
Myth 3: ‘Where’s My Refund?’ must be wrong because there’s no deposit date yet
Updates to “Where's My Refund?” ‎on both IRS.gov and the IRS2Go mobile app are made once each day – usually overnight. Even though the IRS issues most refunds in less than 21 days, it’s possible a refund may take longer for a Variety of Reasons including when a return is incomplete or needs further review.
This means that in some cases, a taxpayer who filed later may receive their refund sooner than someone who filed earlier in the season. The IRS will contact taxpayers by mail when it needs more information to process their tax return. Also, remember to consider the time it takes for financial institutions to post the refund to the taxpayer’s account or to receive a check in the mail.
Myth 4: ‘Where’s My Refund?’ must be wrong because a refund amount Is less than expected
There are several factors that could cause a tax refund to be larger or smaller than expected.
Situations that could decrease a refund include:

• Math errors or mistakes;
• Delinquent federal taxes;
• State taxes, child support, student loans or other delinquent federal nontax obligations; and
• IRS holds a portion of the refund while it reviews an item claimed on the return.

The IRS will mail the taxpayer a letter of explanation if these adjustments are made. Some taxpayers may also receive a letter from the Department of Treasury's Bureau of the Fiscal Service if all or part of their refund was reduced and offset to pay certain financial obligations.
Myth 5: Getting a refund this year means there’s no need to adjust withholding for 2019
Annual tax planning is for everyone. To help avoid an unexpected tax outcome next year, taxpayers should make changes now to prepare for when they file 2019 tax returns next year. This can mean adjusting tax withholding with their employer or increasing estimated or additional tax payments.
Checking withholding is important every year, and the IRS encourages people to do a Paycheck Checkup. This is especially important for anyone who got an unexpected result from filing their tax return this year because they had too much or too little withheld from their paycheck in 2018.
Use the IRS Withholding Calculator to determine whether the right amount is being withheld. If an adjustment is needed, taxpayers should submit a 2019 Form W-4, Employee’s Withholding Allowance Certificate, to their employer as soon as possible.
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​Other successful business owners have told us that one or more of the following are their biggest business concerns. Recently, the GOA (Great O'Hare Association) conducted a survey through it's Business Advocacy Committee asking the same question: Rank Legislative Issues in Order of Highest Concern for You.

GLM askes their clients the following question to learn more about what the business owner is thinking.

Which concern(s) do you have about your business?

• Rising labor costs (Employee)
• Health Insurance
• Workers Comp
• Government Regulations
• Declining Sales (Strategy)
• Taxes (Financial)
• Fighting Fires (Process)
• Tight Cash Flow (Financial)
• Errors, Mistakes, Quality (Process)
• Productivity & Attitude (Employees)
• Equipment Capacity (Equipment)
• Customer Demands (Strategy)
• Not having anyone to talk with (Owner Partner Issues)
• Other:                                                                            

The GOA Survey showed that Taxes is the largest concern (over 45% or those survey choose it) for business owners and GLM clients agree.                                                                                                       

Other successful business owners tell us they have a good relationship with their accounting firm. They indicate this has occurred through a unique process that allows them to spend more time working on other key elements of their job.  They say the result is increased results without increasing the number of hours they work.

Perhaps you may want to see some of the same results in your business. If you do, please contact us.

If you are also looking to stay in the loop on local, state and federal business regulations and taxes, you may want to get involved in the Local Business Association and Elk Grove Chamber of Commerce, the GOA. Learn more at www.theGOA.com