• Nevada Business Closures: The Governor issued Directive 003 within his Declaration of Emergency. Please read it carefully, especially Sections 8 & 9 to determine if your company may continue to operate and the consequences associated with violations. The official directive can be found here.
• Small Business Loans: Nevada is one of the first states to be approved for SBA Disaster Relief Loans. Funds are limited so please encourage your clients (and yourselves if applicable) to apply immediately. Please note: this application can be cumbersome for clients and they may need your assistance. Please visit here  for more information.
• State Income Tax Filing: Many of you file federal and state income taxes for clients. Each state determines its filing due dates. The AICPA has a list of each state’s filing dates. Please be sure to refresh the page as changes are happening hourly.
• Nevada Tax Filing and Payments: The State of Nevada provided the following response regarding state tax filing and payment due dates:

I. PURPOSE
On March 13, 2020, the President of the United States issued an emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic (Emergency Declaration). The Emergency Declaration instructed the Secretary of the Treasury “to provide relief from tax deadlines to Americans who have been adversely affected by the COVID-19 emergency, as appropriate, pursuant to 26 U.S.C. 7508A(a).” Pursuant to the Emergency Declaration, this notice provides relief under section 7508A(a) of the Internal Revenue Code for the persons described in section III of this notice that the Secretary of the Treasury has determined to be affected by the COVID-19 emergency.

II. BACKGROUND
Section 7508A provides the Secretary of the Treasury or his delegate (Secretary) with authority to postpone the time for performing certain acts under the internal revenue laws for a taxpayer determined by the Secretary to be affected by a Federally declared disaster as defined in section 165(i)(5)(A). Pursuant to section 7508A(a), a period of up to one year may be disregarded in determining whether the performance of certain acts is timely under the internal revenue laws.

With the start of the 2020 tax filing season near, the Internal Revenue Service is reminding taxpayers to avoid unethical “ghost” tax return preparers.

According to the IRS, a ghost preparer does not sign a tax return they prepare. Unscrupulous ghost preparers will print the return and tell the taxpayer to sign and mail it to the IRS. For e-filed returns, the ghost will prepare but refuse to digitally sign as the paid preparer.

By law, anyone who is paid to prepare or assists in preparing federal tax returns must have a valid Preparer Tax Identification Number, or PTIN. Paid preparers must sign and include their PTIN on the return. Not signing a return is a red flag that the paid preparer may be looking to make a fast buck by promising a big refund or charging fees based on the size of the refund.

The tax filing season is upon us, and many people will be looking for someone to help them file a tax return. These taxpayers should choose their tax return preparer wisely. 

This is because it’s ultimately the taxpayer who is responsible for all the information on their income tax return. It’s important for people to remember that this is true no matter who prepares the return. Here are some tips for folks to remember when selecting a preparer. Taxpayers should:

Check the Preparer’s Qualifications.

People can use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This tool helps taxpayers find a tax return preparer with specific qualifications. The directory is a searchable and sortable listing of preparers.

Check the Preparer’s History.

Taxpayers can ask the local Better Business Bureau about the preparer. They should check for disciplinary actions and the license status for credentialed preparers. There are some additional organizations about specific types of preparers:

•Enrolled Agents: Go to the verify enrolled agent status page on IRS.gov.
•Certified Public Accountants: Check with the State Board of Accountancy.
•Attorneys: Check with the State Bar Association.

Ask about Service Fees.

People should avoid preparers who base fees on a percentage of the refund or who boast bigger refunds than their competition.

If you incur unreimbursed expenses while traveling away from home on business, you are generally entitled to deduct the cost of your travel expenses, within certain limits. But the tax law imposes strict substantiation requirements. In a new case, Near, TC Memo 2020-10, 1/14/20, the Tax Court denied a deduction because the taxpayer didn’t establish the requisite relationship between his business and the travel expenses.

Background: Generally, if you’re self-employed, you can deduct ordinary and necessary expenses incurred when traveling on business. This includes transportation costs back and forth from your business destination, as well as any business-related expenses at your business destination, such as lodging. The full amount is deductible if the trip is completely business-related.

When taxpayers complete their tax returns, some of them will owe money when they file. Here’s the thing…they have the right to pay only the amount of tax that is legally due.

This is one of ten Taxpayer Bill of Rights. They are fundamental rights taxpayers have when dealing with the IRS. One of which is the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.

If you incur unreimbursed expenses while traveling away from home on business, you are generally entitled to deduct the cost of your travel expenses, within certain limits. But the tax law imposes strict substantiation requirements.

If you incur unreimbursed expenses while traveling away from home on business, you are generally entitled to deduct the cost of your travel expenses, within certain limits. But the tax law imposes strict substantiation requirements. In a new case, Near, TC Memo 2020-10, 1/14/20, the Tax Court denied a deduction because the taxpayer didn’t establish the requisite relationship between his business and the travel expenses.

Background: Generally, if you’re self-employed, you can deduct ordinary and necessary expenses incurred when traveling on business. This includes transportation costs back and forth from your business destination, as well as any business-related expenses at your business destination, such as lodging. The full amount is deductible if the trip is completely business-related.

Click on the image or here to watch a very informative video on how to spot scammers calling you.

With the tax filing season almost here, taxpayers should check out two new IRS publications available on IRS.gov. These publications can help people get prepared to submit their tax returns and stay organized with tips for year-round tax planning.

The optional standard mileage rates for business use of a vehicle will decrease slightly in 2020 after increasing significantly in 2019, the IRS announced on Tuesday (Notice 2020-05 (https://www.irs.gov/pub/irsdrop/n-20-05.pdf)). For business use of a car, van, pickup truck, or panel truck, the rate for 2020 will be 57.5 cents per mile in 2020, down from 58 cents per mile last year after increasing from 54.5 cents per mile in 2018. Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile.

Because the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, suspended the miscellaneous itemized deduction under Sec. 67 for unreimbursed employee business expenses from 2018 to 2025, the notice explains that the standard mileage rate cannot be used to claim a deduction for those expenses during that period.

However, self-employed taxpayers can deduct automobile expenses if they qualify as ordinary and necessary business expenses. And an exception to the disallowance of a deduction for unreimbursed employee business expenses applies to members of a reserve component of the U.S. armed forces, state or local government officials paid on a fee basis, and certain performing artists. They are permitted to deduct mileage expenses on line 11 of Schedule 1 of Form 1040, U.S. Individual Income Tax Return, (an above-the-line deduction) and may continue to use the 57.5 cents-per-mile business standard mileage rate.