This month’s newsletter has information from past newsletters that we just want to remind you about before the end of the year. We hope you have wonderful, peaceful holidays!
A new law requires the IRS to hold refunds until mid-February 2017 for people claiming the Earned Income Tax Credit or the Additional Child Tax Credit. In addition, new identity theft and refund fraud safeguards put in place by the IRS and the states may mean some tax returns and refunds face additional review.
If You Had Flood Damage in the 2016 Louisiana Floods
Deducting Losses from the Flood Disaster on Your Tax Return
For the 2016 Louisiana Flood losses, you can deduct the loss on your 2016 tax return, or you can elect to deduct the loss on your 2015 return. If you have already filed your 2015 return, you can amend it to include the loss. You have until the due date of your 2016 tax return (April 17, 2017) to make this decision.
Please see our website for details on computing the deduction for tax purposes.
Sales Tax Refunds
You may be eligible for refunds of state sales taxes paid on tangible personal property, such as clothing and furniture in your home or apartment, that was destroyed by the flood and that you do not receive any other reimbursement for. To claim the refund, you must file forms R-1362, R-1362S and R-1362D with the Louisiana Department of Revenue (LDR). You will have to attach documentation of the damage, any reimbursement, and all available purchase receipts for the destroyed items. If you do not have documentation available, LDR will make a reasonable estimate of the sales tax paid on the destroyed property based on income previously reported to LDR. You can find these forms here.
See the instructions on the forms for items that are not eligible for the sales tax refund, including vehicles, boats, ATV’s, food, recreational equipment and immovable property in your home.
The deadline to file most W-2 and 1099 forms with the government has been moved from February 28 to January 31.
The forms also, as always before, must be mailed or given to the employee or vendor by January 31.
The penalties for not filing these returns accurately and on time have also increased.
- Reminder: As a general rule, you must send a 1099 form to any person or business that does not file as a corporation for tax purposes, to whom you paid $600 or more for services in 2016.
- We strongly recommend that you require vendors to complete a W-9 form before you pay them. This form can be downloaded from www.irs.gov.
- A limited liability company (LLC) has flexible tax filing choices. You do not know if they file as a corporation for tax purposes until they complete a W-9 form and return it to you.
- If you are unable to obtain the necessary information, you are required to withhold 20% of the payment and remit it to the IRS. As part of your annual tax return, you must confirm you are required to file forms 1099 and that you have done so.
If we prepare your W-2’s and/or 1099’s, please get us any necessary information during the first week of January 2017 to ensure we can complete them on time.
On November 22, 2016, U.S. District Court Judge Amos Mazzant granted an Emergency Motion for Preliminary Injunction and thereby enjoined the Department of Labor from implementing and enforcing the Overtime Final Rule on December 1, 2016. Therefore, the changes we first told you about in our July 2016 newsletter have not taken effect as of December 11, 2016.