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The child and dependent care credit is a tax credit that may help you pay for the care of eligible children and other dependents (qualifying persons).  The credit is calculated based on your income and a percentage of expenses that you incur for the care of qualifying persons to enable you to go to work, look for work, or attend school.  For 2021, the American Rescue Plan Act of 2021, enacted March 11, 2021, made the credit substantially more generous (up to $4,000 for one qualifying person and $8,000 for two or more qualifying persons) and potentially refundable, so you might not have to owe taxes to claim the credit (so long as you meet the other requirements).  This means that more taxpayers will be eligible for the credit for the first time and that, for many taxpayers, the amount of the credit will be larger than in prior years.  However, taxpayers with an adjusted gross income over $438,000 are not eligible for this credit even though they may have previously been able to claim this credit.

Read more: https://www.irs.gov/newsroom/child-and-dependent-care-credit-faqs

Small Business Set Up

Small business success plays a vital role in this country’s mythology. While there are indeed factors that make it a good time to be an entrepreneur in America, there are also factors that make it a challenging time to be running your own business. You as a small business owner will need to:



     • Survive early pitfalls
 

     • Deal with taxes, insurance and finding money
 

     • Learn what federal regulations apply to you
 

     • Know what your state requires



As reliable partner BATS can help:


     • Prepare an initial business plan to clarify your marketing, management, and financial plans.

     • Determine your start-up capital needs.
 

     • Identify sources of start-up capital and backup sources if needed.
 

     • Evaluate and quantify your borrowing power so you know how much money you can get your hands on if needed.
 

     • Select a business structure that best fits your needs by evaluating tax advantages, legal exposure, ease of operation and

        portability should you need to relocate.
   

     • Select the right accounting software by evaluating your budget, needs and hardware.
   

     • Prepare a Cash Flow Budget so you know exactly how much money you need to keep the business alive each month for the first

        few years.
   

     • Establish billing and collection procedures to maximize your cash flow.
   

     • Establish procedures to monitor and control costs.
   

     • Setup a home office so you can maximize your tax deductions.

     • Prepare and file all required state and local licenses and permits.

     • Prepare and file your application for your Federal Employer Identification Number.

     • Provide payroll and payroll tax filing when you bring on your first employee.

     • Comply with employment laws so you don’t get hit with fines and unhappy employees.

     • Identify your business insurance needs.

     • Develop a solid Partnership Agreement. This is an extremely important document for all new partnerships and will help prevent a 

        tremendous amount of financial and emotional problems down the road

WASHINGTON — The Internal Revenue Service today reminds taxpayers about the upcoming October 15 due date to file 2020 tax returns. People who asked for an extension should file on or before the extension deadline to avoid the penalty for filing late. Electronic filing options, such as IRS Free File, are still available.

Although October 15 is the last day for most people to file, some taxpayers may have more time. They include:

• Members of the military and others serving in a combat zone. They typically have 180 days after they leave the combat zone to file returns and pay any taxes due.
• Taxpayers in federally declared disaster areas who already had valid extensions. For details, see the disaster relief page on IRS.gov.

There is usually no penalty for failure to file if the taxpayer is due a refund. However, people who wait too long to file and claim a refund, risk losing it altogether. Those who have yet to file a 2020 tax return, owe tax, and did not request an extension can generally avoid additional penalties and interest by filing the return as soon as possible and paying any taxes owed.

Grants will support Manna, Identity, Universities at Shady Grove, and Five Additional Nonprofits. Coalitions requests matching dollars from local businesses to feed more people.

Montgomery County, MD – Business Leaders Fighting Hunger, Montgomery County’s private sector coalition committed to ending hunger for the 60,000 food insecure people in the county, today announced emergency support to eight organizations impacted by the COVID-19 pandemic. The grants total $50,000, but will likely yield far more dollars due to the dollar-to-dollar match that was requested by Business Leaders.

The primary recipients, including Manna Food Center, Identity, and the Universities at Shady Grove, serve diverse populations across the county. Each assist low-income families and underserved youth under normal circumstances, but report that COVID-19 has created an unforeseen urgency that needs to be addressed.

Additional support is also being provided to five other organizations whose mission is to fight poverty in Montgomery County, MD. They are: Gaithersburg HELP, Meals on Wheels, Nourish Now, Rainbow Community Development Center, and Shepherd’s Table.

“Our low-income neighbors are facing an unprecedented double whammy,” said Andy Burness, co-founder of Business Leaders Fighting Hunger and president of Burness, a public interest communications firm that operates out of Bethesda. “Too many struggle on a daily basis in the best of times. Now, COVID-19 is putting people out of work, with no obvious prospect for better days any time soon. These people need to eat, and we wanted to act now.”

“Business Leaders’ support is a start,” Burness said. “It will make a difference for hundreds of families and children in the county. But, we need corporate leaders to join us, donating to these organizations or to any others that are on the front lines serving people who are really suffering now.”

Business Leaders Fighting Hunger is a group of Montgomery County businesses committed to reducing the number of food insecure residents in the county by making strategic investments in programs that tackle the root causes of hunger. The coalition was co-founded by Sodexo and Burness. Supporting businesses include Atlantic Electric Supply Corp, Bass Accounting & Tax Services, Bendler & Company, Bethesda Magazine, Clark Construction, David R. and Deborah S. Lambert Charitable Trust, Golden & Cohen, James Belikove and Vanessa Piala, and SmithPilot.

The coalition intends to engage many more businesses. Interested companies or individuals should contact Shondra Jenkins, co-founder and former director of Sodexo’s foundation here in Montgomery County. Her email is [email protected], and she can be reached by phone at 240-654-7043.

What teachers should know about deducting out-of-pocket classroom expenses

Now that fall is here and school has started, many teachers are dipping into their own pockets to buy classroom supplies. Doing this throughout the year can add up fast. Fortunately, eligible educators may be able to defray qualified expenses they paid in 2019 when they file their tax return in 2020.

Educators who work in schools may qualify to deduct up to $250 of unreimbursed expenses. That amount goes up to $500 if two qualified educators are married and file a joint return. However, neither spouse can deduct more than $250 of his or her qualified expenses when they file.

Taxpayers qualify for this deduction if they:

• Teach any grade from kindergarten through twelfth grade. 
• Are a teacher, instructor, counselor, principal or aide.
• Work at least 900 hours during the school year.
• Work in a school that provides elementary or secondary education.

Qualified expenses include:

• Professional development courses.
• Books.
• Supplies.
• Computer equipment including related software and services.
• Supplementary materials.
• Athletic supplies only for health and physical education.

Eligible taxpayers can claim this deduction when they file their taxes. 

            Who can deduct car expenses on their tax returns

Taxpayers who have deducted the business use of their car on past tax returns should review whether or not they can still https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses&source=gmail&ust=1564521848031000&usg=AFQjCNHzjG2u5QCCyU7zAt20rv7v-mh2lQ” style=”color:rgb(17, 85, 204)”>claim this deduction. Some taxpayers can. Some cannot.

Here’s a breakdown of which taxpayers can claim this deduction when they file their tax returns.

Business owners and self-employed individuals
Individuals who own a business or are self-employed and use their vehicle for business https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses&source=gmail&ust=1564521848031000&usg=AFQjCNG0Rm3B_tFzVOMsvgFFQ8NhVZ8vjw” style=”color:rgb(17, 85, 204)”>may deduct car expenses on their tax return. If a taxpayer uses the car for both business and personal purposes, the expenses must be split. The deduction is based on the portion of mileage used for business.

There are two methods for figuring car expenses:

1. Using actual expenses

• These include:
  • Depreciation
  • Lease payments
  • Gas and oil
  • Tires
  • Repairs and tune-ups
  • Insurance
  • Registration fees

2. Using the standard mileage rate

• Taxpayers who want to use the standard mileage rate for a car they own must choose to use this method in the first year the car is available for use in their business.
• Taxpayers who want to use the standard mileage rate for a car they lease must use it for the entire lease period.
• The standard mileage rate for 2018 is 54.5 cents per mile. For 2019, it‘s 58 cents.

There are https://www.irs.gov/publications/p463&source=gmail&ust=1564521848031000&usg=AFQjCNEOQGBpG-wkhXLWlnlT2RSe15l8pA” style=”color:rgb(17, 85, 204)”>recordkeeping requirements for both methods. 

Employees
Employees who use their car for work can no longer take an employee business expense deduction as part of their miscellaneous itemized deductions reported on Schedule A.  Employees can’t deduct this cost even if their employer doesn’t reimburse the employee for using their own car. This is for tax years after December 2017. The https://www.irs.gov/tax-reform&source=gmail&ust=1564521848031000&usg=AFQjCNGZm6bWXDfCeFW1rjeD9HD3yJkg8Q” style=”color:rgb(17, 85, 204)”>Tax Cuts and Jobs Act suspended miscellaneous itemized deductions subject to the 2% floor.  

However, certain taxpayers may still deduct unreimbursed employee travel expenses, this includes Armed Forces reservists, qualified performing artists, and fee-basis state or local government officials.

More information:
https://www.irs.gov/pub/irs-pdf/p535.pdf&source=gmail&ust=1564521848032000&usg=AFQjCNG_kwZQtZDDM0t4uwG8z_wWikktBw” style=”color:rgb(17, 85, 204)”>Publication 535, Business Expenses

 Taxpayers should be on the lookout for new versions of these two scams

With scam artists hard at work all year, taxpayers should be on the lookout for a surge of evolving phishing emails and telephone scams.

Taxpayers should watch for new versions of two tax-related scams. One involves Social Security numbers related to tax issues. The other threatens taxpayers with a tax bill from a fictional government agency. Here are some details about these scams to help taxpayers recognize them:

The SSN scheme

• The latest twist includes scammers claiming to be able to suspend or cancel the victim’s Social Security number. This scam is similar to and often associated with the IRS impersonation scam.
• It is yet another attempt by con artists to frighten taxpayers into returning robocall voicemails.
• Scammers may mention overdue taxes in addition to threatening to cancel the taxpayer’s SSN.

Fake tax agency

• This scheme involves a letter threatening an IRS lien or levy. 
• The scammer mails the letter to the taxpayer.
• The lien or levy is based on bogus overdue taxes owed to a non-existent agency.
• The fake agency is called the “Bureau of Tax Enforcement.” There is no such agency. 
• The lien notification scam also likely references the IRS to confuse potential victims into thinking the letter is from a legitimate agency.

Public accounting, as well as many other aspects of our present society, has changed dramatically in the last decade. A good accountant must now be many things to his or her clientele—a management advisor, a business consultant, a financial planner and an investment counselor—in addition to providing the traditional audit, accounting, and tax services. The professionals at Bass Accounting & Tax Services believe in providing each and every… click here for more

Here is the link to your page on Community Focus:

http://www.communityfocus.com/Gaithersburg/bass-accounting-tax-services/

 Bass Accounting and Tax Services-CPA, LLC Earns 2018 Angie’s List Super Service Award

Award reflects company’s consistently high level of customer service

{Gaithersburg, Maryland, February 2019} – {Bass Accounting and Tax Services-CPA, LLC is proud to announce that it has earned the home service industry’s coveted Angie’s List Super Service Award (SSA). This award honors service professionals who have maintained exceptional service ratings and reviews on Angie’s List in 2018.

“Service pros that receive our Angie’s List Super Service Award represent the best in our network, who are consistently making great customer service their mission,” said Angie’s List Founder Angie Hicks. “These pros have provided exceptional service to our members and absolutely deserve recognition for the exemplary customer service they exhibited in the past year.”

Angie’s List Super Service Award 2018 winners have met strict eligibility requirements, which include maintaining an “A” rating in overall grade, recent grade and review period grade. The SSA winners must be in good standing with Angie’s List and undergo additional screening.

Your Complete Satisfaction is our Number One Priority!

Bass Accounting and Tax Services-CPA, LLC has been listed on Angie’s List since 2016. This is the 3^rd year in a roll Bass Accounting and Tax Services-CPA, LLC has received this honor.

Service company ratings are updated continually on Angie’s List as new, verified consumer reviews are submitted. Companies are graded on an A through F scale in multiple fields ranging from price to professionalism to punctuality.

For over two decades Angie’s List has been a trusted name for connecting consumers to top-rated service professionals. Angie’s List provides unique tools and support designed to improve the local service experience for both consumers and service professionals.

Contact:

201 N. Frederick Avenue, Suite A & D, Gaithersburg, MD 208773750 Universty Blvd W. #1B, Kensignton, MD 2089Telephone: 301 956 8600 – Fax: 240 246 0054

IR-2019-01, January 7, 2019

WASHINGTON ― Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled.

“We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment to the taxpayers during this period,” said IRS Commissioner Chuck Rettig.

Congress directed the payment of all tax refunds through a permanent, indefinite appropriation (31 U.S.C. 1324), and the IRS has consistently been of the view that it has authority to pay refunds despite a lapse in annual appropriations. Although in 2011 the Office of Management and Budget (OMB) directed the IRS not to pay refunds during a lapse, OMB has reviewed the relevant law at Treasury’s request and concluded that IRS may pay tax refunds during a lapse.

The IRS will be recalling a significant portion of its workforce, currently furloughed as part of the government shutdown, to work. Additional details for the IRS filing season will be included in an updated FY2019 Lapsed Appropriations Contingency Plan to be released publicly in the coming days.

“IRS employees have been hard at work over the past year to implement the biggest tax law changes the nation has seen in more than 30 years,” said Rettig.

As in past years, the IRS will begin accepting and processing individual tax returns once the filing season begins. For taxpayers who usually file early in the year and have all of the needed documentation, there is no need to wait to file. They should file when they are ready to submit a complete and accurate tax return.

The filing deadline to submit 2018 tax returns is Monday, April 15, 2019 for most taxpayers. Because of the Patriots’ Day holiday on April 15 in Maine and Massachusetts and the Emancipation Day holiday on April 16 in the District of Columbia, taxpayers who live in Maine or Massachusetts have until April 17, 2019 to file their returns.

Software companies and tax professionals will be accepting and preparing tax returns before Jan. 28 and then will submit the returns when the IRS systems open later this month. The IRS strongly encourages people to file their tax returns electronically to minimize errors and for faster refunds