Author: Leon Clinton

Due to tax reform legislation enacted in December, individuals and businesses now have two years to file an administrative claim or bring a civil action for wrongful levy or seizure. The Prior to tax reform the limit was nine months. Here are five facts about levies and the extension of time to file a claim or civil action:

1. An IRS levy permits the legal seizure and sale of property to satisfy a tax debt. For purposes of a levy, the term “property” includes wages, money in bank or other financial accounts, vehicles and real estate.

2. The time frames apply when the IRS has already sold the property it levied. Taxpayers can make an administrative claim for return of their property within two years of the date of the levy.

3. If an administrative claim is made within the extended two-year period, the two-year period for bringing suit is extended for one of two periods, whichever is shorter:

• Twelve months from the date the person filed the claim.
• Six months from the date the IRS disallowed the claim.

4. The change in law applies to levies made before, on or after December 22, 2017, as long as the previous nine-month period hadn’t yet expired.

5. Anyone who receives an IRS bill titled, Final Notice of Intent to Levy and Notice of Your Right to A Hearing, should immediately contact the IRS. By doing so, a taxpayer may be able to make arrangements to pay the liability, instead of having the IRS proceed with the levy.

Questions about IRS levies? Help is just a phone call away.

• By Leon Clinton
• October 28, 2018

Every business owner, no matter how small, must keep good records. But whether it’s keeping track of mileage, documenting expenses, or separating personal from business use, keeping up with paperwork is a seemingly never-ending job.

No matter how good your intentions are in January, the chances are good that by now that paper mileage log is looking a bit empty. Even worse, you could be avoiding tracking your mileage altogether–and missing out on tax deductions and credits that could save your business money at tax time.

The good news is that there are a number of phone applications (apps) that could help you track those pesky business miles. Most of these apps are useful for tracking and reporting expenses, mileage and billable time. They use GPS to track mileage, allow you to track receipts, choose the mileage type (i.e., business, personal), and produce formatted reports that are easy to generate and share with your CPA, EA, or tax advisor.

Here are three popular apps that help you track your business mileage (and more):

1. TripLog – Mileage Log Tracker

Works with: Android and iPhone

What it does: Tracks vehicle mileage and locations using GPS

Useful Features:

• Automatic start when plugged into power or connected to a Bluetooth device and driving more than five mph
• Reads your vehicle’s odometer from OBD-II scan tools
• Syncs data between the web service and multiple mobile devices
• Supports commercial trucks including per diem allowance, state-by-state mileage for IFTA fuel tax reports, and DEF fuel purchases and gas mileage

2. MileIQ

Works with: Android and iPhone

What it does: Keeps track of mileage for business or personal use

Useful Features:

• Budget-friendly automatic mileage tracking
• Easy to categorize trips – swipe right for business trips; swipe left for personal trips
• Ability to create customized weekly mileage reports
• Premium Office 365 subscribers can log unlimited drives every month.

3. Hurdlr

Works with: Android and iPhone

What it does: Tracks mileage, as well as expenses and income streams

Useful Features:

• Tracks business mileage using auto start and stop
• View real-time finances, profits, and tax savings
• Links to financial accounts, PayPal, Uber, and others
• Creates financial reports and spreadsheets you can send to your CPA

If you have any questions about using apps that track business mileage or need help choosing the right one for your business needs, don’t hesitate to call.

• By Leon Clinton
• October 25, 2018

For tax years prior to 2018, employees could exclude from income moving expenses reimbursed or paid by an employer. However, due to the passage of the Tax Cuts and Jobs Act (TCJA) last year, this tax provision has been suspended starting this year. This means, that going forward, these amounts are considered taxable income with one exception: amounts reimbursed to active-duty members of the U.S. Armed Forces whose moves relate to a military-ordered permanent change of station.

However, the IRS recently clarified that payments or reimbursements made by employers in 2018 for employees’ moving expenses incurred in 2017 (or prior years) will be excluded from the employee’s wages for income and employment tax purposes. This holds true if the employer pays a moving company in 2018 for qualified moving services provided to an employee prior to 2018 as well.

To qualify, reimbursements or payments must be for work-related moving expenses that would have been deductible by the employee if the employee had directly paid them prior to January 1, 2018. That is, the employee must not have deducted them in 2017. Employers that have already treated reimbursements or payments as taxable should follow the normal employment tax adjustment and refund procedures.

Please call the office if you have any questions about this topic.

• By Leon Clinton
• October 23, 2018