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Guess What? Mileage rates increased in 2018

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mileage rate 2018, standard mileage rate, IRS tax mileage allowance

As of December 2017, new 2018 optional standard mileage rates are in effect. These standard mileage rates help compute your business, medical, charitable or moving deductions. All you have to do is multiply them by the number of miles you’ve traveled to get the related deductible expenses. If you and your employees use your vehicle for personal and business use, make sure to keep accurate supporting records.

Effective as of January 1, 2018, these are the new mileage rates to take into account. They are related to your car, van, pickup or panel truck use:

  • For business miles driven, 54.5 cents per mile (or an increase from 53.5 cents in 2017)
  • For moving or medical purposes, 18 cents per mile (or an increase from 17 cents in 2017)
  • For charitable purposes, 14 cents per mile

Since your business’ employees may be using your vehicles for various purposes, it’s possible to use many rates on your tax return. You should keep in mind that the business rates depend on the results of an annual study of the fixed and variable costs of operating a vehicle.

Yet, there are limits to claiming your deduction. You either use the standard mileage rate or actual expenses, which include claiming the Section 179 deduction or any depreciation method.

Under Notice 2018-03, business employees driving their own vehicles are entitled to nontaxable reimbursements of their costs. The Fixed and Variable Rate Allowance (FAVR) plan is the most favorable or fair program for employees.

There are other methods available. These include:

  • The Cost per Mile (CPM) reimburses employees’ vehicle costs on a per-mile basis. This is on the condition that it adheres to IRS reporting requirements;
  • Car or vehicle allowance: This is a specific amount that employees can use over a certain time to cover the costs of employees’ use of their vehicles for business purposes. As an employer, this type of compensation program is easiest for you. Yet, allowances are taxable to your employees and constitute a tax burden for the latter.

It is uncertain whether these 2018 mileage rates will impact business owners. Yet, it is important to keep these in mind as you account for your employees’ mileage expenses.

Contact us for further details on how we can help you keep track of IRS changes.

 

Sources:

  • “IRS issues 2018 standard mileage rates.” Journal of Accountancy. December 14, 2017. Accessed January 26, 2018. https://www.journalofaccountancy.com/news/2017/dec/2018-irs-standard-mileage-rates-201718061.html.
  • Erb, Kelly Phillips. “IRS Announces 2018 Mileage Rates Even Though Tax Reform Talks May Limit Use.” Forbes. January 03, 2018. Accessed January 26, 2018. https://www.forbes.com/sites/kellyphillipserb/2017/12/14/irs-announces-2018-mileage-rates-even-though-tax-reform-talks-may-limit-use/#13c8ab7d7631.
  • “IRS Announces Higher Standard Mileage Rate for 2018.” SHRM. January 10, 2018. Accessed January 26, 2018. https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/2018-standard-mileage-rate.aspx.

 

The Major Differences You Should Know About Cost Accounting and Financial Accounting

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accounting services, financial accounting, cost accounting

 

Many people wonder about the differences between cost accounting and financial accounting. Both accounting methods can help make more effective decisions as a business manager. Yet, there are significant differences between the two.

Let’s first start by defining each one.

  • Cost accounting applies costing methods and techniques to reduce business costs. Its main goal is to calculate the cost per unit of your business’ products or processes.
  • Financial accounting classifies, stores, records, and analyzes a company’s financial statements. The goal is to improve the business’s profitability and increase its transparency. Financial accounting presents an accurate financial picture of a company to the stakeholders.

The major differences between cost accounting and financial accounting are as follows:

  1. Cost accounting helps you determine the expenses associated with each of your products. Financial accounting helps better understand a company’s profitability through its financial statements.
  1. Cost accounting is a tool used by management to improve business process efficiency. Financial accounting presents the business’s performance.
  1. Cost accounting focuses on the internal aspects of a company. Financial accounting focuses on its external aspects. While cost accounting helps improve a company’s processes, financial accounting is profit-oriented.
  1. The use of cost accounting is not mandatory in all companies. Only those using manufacturing processes or activities must use cost accounting. Yet, the use of financial accounting is a must for all organizations.
  1. Cost accounting is not performed as per any particular period. Rather, it’s performed in a short interval of time as in the production of a unit or product. Financial accounting records an organization’s financial activity for a given financial period.
  1. Additionally, estimation is important in cost accounting. It helps determine the per-unit cost of sales. In contrast, every transaction in financial accounting is reporting based on actual data.
  1. Cost accounting uses tools to help improve the efficiency of business operations. These include the cost of sales, product margin, and selling price of products. Financial accounting uses financial statements, journals, ledgers, and trial balances.
  1. There are also differences in presentation between the two methods. Financial accounting requires specific format parameters. As for cost accounting, the format of reports can vary.

 

It’s clear that cost accounting and financial accounting are quite different. There are many benefits to using both approaches. Combining these methods is a powerful tool to propel your business to the next level.

Are you looking for accounting help? Contact us for a free consultation at (561) 842-1304.

Sources:

  • “The difference between cost accounting and financial accounting.” AccountingTools. Accessed January 06, 2018. https://www.accountingtools.com/articles/what-is-the-difference-between-cost-accounting-and-financial.html.
  • “The Difference Between Cost Accounting and Management …” Accessed January 6, 2018. http://www.bing.com/cr?IG=DC12E060B6F343D8881D72E81566233C&CID=26D6ADED7CBE6DE625CEA69D7D186C87&rd=1&h=_v5M4ek30sfZxx67H46YHkBpFKpSLonFUTndzw_8l7c&v=1&r=http%3a%2f%2fwww.businessessentials.co.za%2f2017%2f04%2f07%2fdifference-cost-accounting-management-accounting%2f&p=DevEx,5059.1.
  • Anjali «╬♥Áńĵáĺℐ♥╬«, — Follow. “Difference between financialaccounting and cost accounting.” LinkedIn SlideShare. February 18, 2017. Accessed January 06, 2018. https://www.slideshare.net/anjali106/difference-between-financialaccounting-and-cost-accounting-72297700.

 

How to Survive an IRS Tax Audit

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IRS tax audit, IRS Tax Help, accounting servicesTax time is already stressful enough without mentioning the incidence of tax audits. Both businesses and individuals are exposed to IRS tax audits, which ensure that the income and expense deductions are in compliance with tax laws.

While an IRS tax audit might be a scary prospect, it can be handled in a way that minimizes its negative impact. While you may still incur penalties and/or fines, understanding the process can help you prepare adequately.

The first step is to understand the type of IRS audit you are subjected to. In general, there are three types of audits the IRS may decide to use for you or your business:

  1. Audit by Correspondence: Through this type of audit, the IRS will be requesting supporting information through the mail. This is the most common and easiest type of audit and involves only one or two tax issues. Follow the instructions explicitly. Do not try to read between the lines, give them exactly (and only) what they ask for.
  1. Office Audit: This type of audit will require you to go to the IRS office for the audit to be performed. This is quite similar to the correspondence audit. It usually only deals with one or two items, and the IRS will provide you with a list of what they need. These audits are usually limited to a certain part of your taxes. While you may request for the meeting to take place at your business or home, it is preferable to conduct it at the IRS office.
  1. Field Audit: In this case, an IRS agent will be assigned to your case and will perform the audit on site at your business or location. This is a more serious type of audit, through which you will need the help of a tax professional. This is a serious deal, get help!

Here are a few steps you can follow to survive an IRS audit:

  • Understand the process

It’s important to understand the audit process. Usually, it is rather simple and includes a notification from the IRS, as well as the documentation to gather and submit by the appointment date or deadline. The IRS usually reviews the submitted documentation and information and determines a final decision.

  • Prepare adequately

Preparing for an audit and getting organized is crucial! Having a reliable accounting system like QuickBooks or Xero will help in preparing more adequately. It will also contribute to a smoother audit.

If you haven’t been using a good accounting system, it is possible to reconstruct your transaction history. You can do this by contacting vendors and financial institutions, using the online platforms of your banks, or gathering your receipts and invoices.

An additional tip is to make copies of your original documentation and organize your supporting information well. This will help the audit be more organized and yield more positive results.

  • Get reliable professional advice

If your audit is either a field or office audit, you may want to consult a professional. A Certified Public Accountant (CPA), tax attorney, or Enrolled Agent (EA) can help you prepare your case, get organized, and negotiate a just resolution. The right tax professional can even help you minimize the negative impact of a tax audit.

In conclusion, keep in mind that IRS tax audits are common occurrences that can be managed effectively. Having the proper understanding, organization, and strategies can make the difference between a successful case and a failing one.

Contact us if you need any help with your taxes or with preparing for an audit. We’re here to help!

 Sources:

  • Laurence, J.D. Beth. “Checklist: How to Survive a Tax Audit.” Www.nolo.com. Accessed January 06, 2018. https://www.nolo.com/legal-encyclopedia/survive-irs-tax-audit-29478.html.
  • Murray, Jean. “How to Survive an IRS Tax Audit of Your Business.” The Balance. Accessed January 06, 2018. https://www.thebalance.com/how-to-survive-an-irs-tax-audit-of-your-business-398979.
  • Taulli, Tom. “4 Ways To Survive A Dreaded IRS Audit.” Forbes. August 06, 2017. Accessed January 06, 2018. https://www.forbes.com/sites/tomtaulli/2016/11/26/4-ways-to-survive-a-dreaded-irs-audit/#5dd.

 

 

 

 

 

 

 

 

 

7 Tax Tips to Avoid an IRS Audit with Your Small Business

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tax filing, tax accounting, tax accountantBeing subject to an IRS audit can be a monumental challenge for your small business. In fact, the IRS has been getting more vigilant in their approach toward such businesses in recent years. However, there are ways to avoid an audit.

As you file your small business tax return this year, here are seven tax tips you can use to protect yourself against an IRS audit:

1. Use a good record-keeping system

A reliable record-keeping system is the key to not only save money but also maintain adequate tax documentation. Research what kind of documentation you need to gather and maintain for your tax needs. Ensure that you have processes in place to keep this support at tax time.

2. Decide on the best accounting method for your business

Businesses use one of two tax accounting methods: cash and accrual. Depending on the nature of your small business, its legal structure, and its credit situation, you may consider one of these accounting methods. Even if you happen to pick one not suited for your business at first, there are ways to resolve any discrepancy.

3.  Stay current on tax filing and file any past due returns

If there is an issue, and you’re current, your tax professional has a lot more options to help you resolve it. If you happen to have any past due tax returns related to your business, make sure to file them as soon as possible. This will help you avoid any penalties and interest and get on the right track with your taxes.

4. Clarify any unusual circumstances

If you or your business encounter any unusual circumstance (such as an inheritance) discuss it with your tax professional. They will likely ask all sorts of clarifying questions to determine whether or not you A) owe taxes on it and B) it is a reportable event.

5. Report all your business income

One of the things the IRS looks at in determining their audit cases is whether all income is reported. Make sure to obtain and maintain records of all your business income. Ensure that you have matched all your records and reported the right amount.

6. Review your tax return

There are many details that can fly under the radar during the tax review process. Make sure to carefully go over your tax return before submitting it. Even if you’re using a tax professional to help you file, ensure that you also review and understand your return before final submission.

7. When in doubt, use a tax professional

Filing your business’s tax return can be a complex process. If you have doubts as to how to undertake this process, consider consulting with a tax professional. They can help you better navigate the filing process and submit a more accurate return.

Are you wondering how to survive an IRS tax audit?

Contact us for a free consultation at (561) 842-1304.

Sources:

  • “Avoiding Problems.” Internal Revenue Service. Accessed January 08, 2018. https://www.irs.gov/businesses/small-businesses-self-employed/avoiding-problems.
  • “Six Tips to Avoid an IRS Audit.” Six Tips to Avoid an IRS Audit | NAEA. February 12, 2013. Accessed January 08, 2018. https://www.naea.org/newsroom/press-releases/six-tips-avoid-irs-audit.
  • “Visit the IRS Small Business Tax Center for All Your Tax Needs2 | Internal Revenue Service.” 2 | Internal Revenue Service. Accessed January 08, 2018. https://www.irs.gov/newsroom/visit-the-irs-small-business-tax-center-for-all-your-tax-needs2.

 

 

 

5 Tax Planning Strategies for Professional Service Providers | The Balance Sheet Inc

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tax services, tax consultant, tax preparation servicesAs a professional service provider, applying effective tax strategies can help you meet your financial goals. While you may feel too busy with the demands of your practice, it’s crucial that you take the time to plan your tax strategy.

Here are 5 top tax planning strategies that will help you accomplish your business and financial goals this year:

1. Maximize your deductions

If you’re claiming itemized deductions, you may be able to take advantage of the Net Operating Loss Carryover, if available. Keep in mind that the Net Operating Loss Carryover must be clearly shown on prior income tax returns and financial statements. You can claim your Net Operating Loss Carryover within three years of from the year in which the loss was incurred.

2.Leverage your tax credits

Tax credits are for things like energy, offering medical insurance, and more.  To fully leverage your tax credits, you need a knowledgeable tax professional to let you know what credits apply to your business. Feel free to contact us, we’re eager to help.

Corporate income losses from prior years may be used as credits against your income tax due. Losses can either carry back 2 prior years or carry forward for 20 years. Consult with your tax professional on the best strategy for you.

3.Get Charitable

If you’ve made charitable contributions to accredited institutions, you may be able to deduct these fully. However, in order to claim your charitable contributions, you may have to provide a Certificate of Donation. Any time a donation is over $250 a statement is required.

4.Mind your excess income tax payments

If you’ve overpaid your income tax, you may be able to apply that tax credit to the following year or receive a refund. Keep in mind the option to carry over is irrevocable.

5.Track your unappropriated retained earnings

Unappropriated retained earnings refer to the net income that has not been allocated as income to its shareholders or officers. They are usually distributed as dividends and taxable at that time. Timing of distribution can affect your tax bill.

Are you wondering about the best planning tax strategies for professional service providers? Contact us for a free consultation at (561) 842-1304.

Sources:

“Tax planning strategies.” BusinessWorld. Accessed August 26, 2017. http://www.bworldonline.com/content.php?section=Economy&title=tax-planning-strategies&id= 127590.

Hananel, Eric. “Tax Planning Strategies for Individuals in 2017.” Investopedia. January 10, 2017. Accessed August 26, 2017. http://www.investopedia.com/articles/taxes/011017/top-tax-planning-strategies-2017.asp.

PricewaterhouseCoopers. “Personal financial services.” PwC. Accessed August 26, 2017. https://www.pwc.com/us/en/private-company-services/personal-financial-services.html.

 

 

5 Tax Accounting Tips To Prepare Your Business for Success

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Did you just start your own business? Are you wondering what the essentials are to prepare it for success? A large part of ensuring that your business thrives, is making sure that your business funds are properly tracked. This is also known as “tax accounting”, and constitutes the backbone of businesses of any size.

Here are five tax accounting tips to prepare your business:

1.Understand your business entity

As a business owner, you’re liable for a certain amount of tax, depending on your business structure. While you may not have to understand the ins and outs of your particular tax situation, you should have a basic understanding of it.

For instance, you may qualify for substantial tax savings as an S corporation. However, it may be harder to operate than a single member LLC, for example. As an LLC, you may have the option to change the way your business is taxed. Options like being taxed as a regular corporation or an S-corp. Knowing your business entity and the different tax breaks each can provide, has the potential to save you money. Always consult with a tax professional, which leads to our next item.

 2.Consider hiring a professional

 Preparing your business for taxes is a complex task. Consider hiring a professional to help you through this process. The point is not just to get your taxes filed or checking every deduction box.  You want to maximize your tax benefits for your type of business.

A tax professional can help you structure your business for the best tax advantages. He/she can also help you understand the specific IRS requirements for your type of business, so as to better manage your prospective tax liability. While a bookkeeper can help you set up a good record-keeping system, an accountant can handle your year-end tax planning.

3.Get familiar with the various methods of accounting

As a business owner, you must select the accounting method best suited to your type of business. The two methods that are generally used and accepted consist of accrual accounting and cash accounting.

While the accrual method depicts your current, real-time financial situation, the cash method reflects the actual money inflows and outflows occurring in your business. Be mindful of these as you set your business, and consider letting a professional help you determine the best choice.

Cash and accrual are your basic methods of accounting. There are other accounting methods depending on your industry.

 4. Understand what’s deductible in your business

It’s important to understand what is deductible and what is not in your business. This knowledge will help you substantially save on your tax liability.

You can deduct a number of other costs and expenses in your business, including startup costs, education expenses, auto deductions. Equipment, entertainment, travel, and software expenses are also deductible.

5. Track your expenses accurately

Having a complete and accurate record of your expenses is crucial in order to take advantage of any tax deductions. This also means keeping a detailed record of your business transactions, including your mileage log as well as expense receipts. You’ll also need to carefully separate your personal from your business expenses.

It is best to get good bookkeeping software and enlist a professional to set it up for you. That way, using it is user-friendly and built around your needs.

Are you wondering how to apply these bookkeeping tips to your business?

Contact us for a free consultation at (561) 842-1304.

 Sources:

  1. Anon, (2017). [online] Available at: http://www.jelfsmallbusiness.co.uk/media/178275/Tax-Guides-for-Small-Businesses-V04.pdf [Accessed 10 Aug. 2017].
  2. Anon, (2017). [online] Available at: https://www.irs.gov/pub/irs-pdf/p334.pdf [Accessed 10 Aug. 2017].
  3. Staff, I. (2017). Tax Accounting. [online] Investopedia. Available at: http://www.investopedia.com/terms/t/tax-accounting.asp [Accessed 10 Aug. 2017].
  4. co.uk. (2017). Small business tax and accounting guides. [online] Available at: http://www.bytestart.co.uk/section/tax [Accessed 10 Aug. 2017].
  5. Google Books. (2017). K. Lasser’s Small Business Taxes 2017. [online] Available at: https://books.google.com.ph/books?id=o3kxDQAAQBAJ&printsec=frontcover&source=gbs_at b#v=onepage&q&f=false [Accessed 10 Aug. 2017].

Differences Between Bookkeepers, Accountants, Certified Public Accountant (CPAs), and Enrolled Agents (EA)

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taxaccounting, bookkeeping, tax services

 

You may have heard about the terms bookkeeper, accountant and Certified Public Accountant (CPA), but you may not have heard about Enrolled Agents (EAs). You may also have noticed that these terms often get used interchangeably. Yet, there are some significant differences between them.

1. Bookkeepers

Traditional bookkeepers don’t need to have a college degree. Their main tasks revolve around day-to-day recording of business transactions and monthly accounting cycles. Their duties consist in entering transactions into bookkeeping journals and preparing monthly reports.

In some cases, bookkeepers are also responsible for Accounts Payable or Accounts Receivable. Some of their other responsibilities may include payroll, collection activities and bank deposits.

More experienced or certified bookkeepers grow in their careers to become accountants. In many instances, bookkeepers may work closely with accountants. In terms of salaries, bookkeepers may be less costly to a business than accountants or Certified Public Accountant (CPA).

The Enrolled Agent (EA) will make use of the bookkeepers records to prepare the business’ taxes.

2. Accountants

Unlike bookkeepers, most accountants have college degrees in accounting or 120 to 150 college credits. Their duties generally involve more complex transactions, and adjustments to a company’s books. These include computing the allowance for accounts receivable or depreciation. They are also more likely to work for larger companies.

Bookkeepers record financial transactions. Accountants interpret and classify financial data.

They may also prepare financial statements and perform tax planning activities.

3. Certified Public Accountants (CPA)

Besides a college degree, CPAs also have an extra 30 hours of college coursework. They take a standardized exam to earn their state licenses.

CPAs can handle a variety of complex tasks for businesses and individuals. They perform activities such as tax preparation, financial planning, and investment planning. They may also be in charge of preparing and maintaining financial statements. They can also be involved in audits.

Many careers are available to CPAs in public or corporate accounting. Many CPAs get promoted to high-level executive positions as controllers, for instance. They also give advice in areas like internal and external auditing and forensic accounting.

4. Enrolled Agents (EA)

Enrolled Agent a federally authorized tax professional, who has technical expertise in the field of taxation and is empowered by the US Department of the Treasury to represent taxpayers before all administrative levels — examination, collection and appeals — of the IRS.

Like the CPA they must pass a 3-part exam, all based on tax and tax laws. EAs must complete 72 hours of continuing education every 3 years. They also adhere to strict ethical standards.

When Should Bookkeepers, Accountants, CPAs and/or EAs be hired?

Bookkeepers perform technical transactions requiring less proficiency and training than accountants. The more complex the operations or the organization is, the more important it is to hire an accountant with more expertise.

Accountants or CPAs may perform more technical accounting tasks requiring more expertise. Companies also hire them to provide managerial advice.

Enrolled Agents (EAs) are used for their tax expertise and their ability to represent clients before the IRS.

Are you wondering about the differences between bookkeepers, accountants, CPAs, and EAs? Contact us for a free consultation at (561) 842-1304.

 

Sources:

“The Differences Between Bookkeepers Vs. Accountants Vs. CPAs.” The Finance Base. Accessed August 26, 2017. http://thefinancebase.com/differences-between-bookkeepers-vs-accountants-vs-cpas-4980.html.

Staff, Investopedia. “Certified Public Accountant – CPA.” Investopedia. November 19, 2003. Accessed August 26, 2017. http://www.investopedia.com/terms/c/cpa.asp.

CPA VS Accountant. Accessed August 26, 2017. http://www.accountingedu.org/cpa-vs-accountant.html.

“What’s the Difference Between a Bookkeeper and an Accountant?” QuickBooks. May 19, 2017. Accessed August 26, 2017. https://quickbooks.intuit.com/r/bookkeeping/whats-the-difference-between-a-bookkeeper-and-an-accountant/.

 

The IRS Responds to Those Affected by Hurricane Irma

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Upcoming Deadlines Extended for Those Affected by Hurricane Irma

The upcoming deadlines for tax returns and tax payments have been extended until January 31, 2018. This includes the September 15, 2017 deadlines for tax payments and tax returns that are on extension; as well as, the October 15, 2017 individual extensions and November 15, 2017 non-profit extensions.

“WASHINGTON –– Hurricane Irma victims in parts of Florida and elsewhere have until Jan. 31, 2018, to file certain individual and business tax returns and make certain tax payments, the Internal Revenue Service announced today.

Today’s relief parallels that granted last month to victims of Hurricane Harvey. This includes an additional filing extension for taxpayers with valid extensions that run out on Oct. 16, and businesses with extensions that run out on Sept. 15.

“This has been a devastating storm for the Southeastern part of the country, and the IRS will move quickly to provide tax relief for victims, just as we did following Hurricane Harvey,” said IRS Commissioner John Koskinen. “The IRS will continue to closely monitor the storm’s aftermath, and we anticipate providing additional relief for other affected areas in the near future.”

The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA), as qualifying for individual assistance. Parts of Florida, Puerto Rico and the Virgin Islands are currently eligible, but taxpayers in localities added later to the disaster area, including those in other states, will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting on Sept. 4, 2017 in Florida and Sept. 5, 2017 in Puerto Rico and the Virgin Islands. As a result, affected individuals and businesses will have until Jan. 31, 2018, to file returns and pay any taxes that were originally due during this period.

This includes the Sept. 15, 2017 and Jan. 16, 2018 deadlines for making quarterly estimated tax payments. For individual tax filers, it also includes 2016 income tax returns that received a tax-filing extension until Oct. 16, 2017. The IRS noted, however, that because tax payments related to these 2016 returns were originally due on April 18, 2017, those payments are not eligible for this relief.

A variety of business tax deadlines are also affected including the Oct. 31 deadline for quarterly payroll and excise tax returns. Businesses with extensions also have the additional time including, among others, calendar-year partnerships whose 2016 extensions run out on Sept. 15, 2017 and calendar-year tax-exempt organizations   whose 2016 extensions run out on Nov. 15, 2017. The disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time.

In addition, the IRS is waiving late-deposit penalties for federal payroll and excise tax deposits normally due during the first 15 days of the disaster period. Check out the disaster relief page for the time periods that apply to each jurisdiction.

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.

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. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.”

For Those Who Need Immediate Monetary Relief.

The IRS has announced that those in affected disaster areas have the option to amend their 2016 tax return and claim the damages on that return to get funds now instead of waiting for the 2017 return.

“Individuals and businesses 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 2017 return normally filed next year), or the return for the prior year (2016). See Publication 547 for details.

The tax relief is part of a coordinated federal response to the damage caused by severe storms and flooding and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.

For information on government-wide efforts related to Hurricane Irma, visit www.USA.gov/hurricane-irma.”

 

Quoted items are direct copy/paste from emails received by the IRS.