Latest News on Denver Accounting & Taxes

Denver Tax Return Impacts of Unemployment and Stimulus Payments


July 31, 2020

The ongoing Coronavirus pandemic has caused tremendous upheaval not only here in America but across the globe. As countries continue to reel from the virus and its impact on individuals' lives, day-to-day tasks, and their respective economies, a few steps have been taken in order to help ease the burdens associated by its devastation here in the United States. The Payroll Protection Program (PPP) was initiated by Congress as part of a larger measure, in an attempt to help small businesses stay afloat as multiple facilities across the country were forced to close for unknown amounts of time. During these closures, unemployment claims skyrocketed as not only businesses but people were hurting.

That larger measure consisted of the Coronavirus Aid, Relief, and Economic Security (CARES) Act which was passed in late March as a measure to assist with the strife facing a majority of citizens. Part of this process was $1200 stimulus payments for qualifying individuals, in addition to a $600 Federal Pandemic Unemployment Compensation for those who applied and received these benefits. Tax payments and filings were extended from their typical mid-April deadline until July 15 for the 2019 calendar year but how will these new measures impact your 2020 filings. As Congress considers another round of stimulus payments and debates the extension of these unemployment payments, exactly how each will be recorded when you file a tax return next year is something to consider now.  

Unemployment

Those who have been or are currently receiving unemployment benefits should understand that while these payments are not subject to certain taxes, others still apply. When earning a traditional check from an employer, FICA taxes which include Medicare and Social Security under the Federal Withholding are removed and paid by your employer. These are not subject to unemployment benefit payments but any money being received as a part of the unemployment benefit still counts as income to their recipients. As a result, individuals will be expected to file their received amounts as earned income on their 2020 tax return next year.


The Senate unveiled second stimulus check details recently, but how will these direct payments impact your 2020 tax return? Many taxpayers were earlier issued $1,200 including an additional $500 for qualifying dependents, and something along those same lines is anticipated for these second-round payments. These amounts are not registered as taxable income but instead a credit with eligibility based off previously filed returns. For this reason, those who were in receipt need to file their 2020 taxes in order to ascertain the appropriate amounts were applied. For a majority of Americans, this means that the stimulus payments should not have any impact on their upcoming return filed next year. 

If you are in need of a particular level of support for personal or the finances of a business then let the tax and experts at Bloch Rothman and Associates assist you today. In addition, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits from other entities besides the IRS, or any other personal or corporate wealth management issues. Along with providing a quality tax service, our group can also complete tax returns or answer any other factors associated with financial issues or concerns you may have. Serving in Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, don’t hesitate to contact us today. Available for all of your tax needs and filings, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!
 
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Denver Accountant: Helping Small Businesses Succeed


July 10, 2020

Many small businesses fail within the first few years of operation for a variety of different reasons. Unfortunately, any money invested in getting an idea off the ground is rarely ever recouped and this lack of profit generation ultimately spells the demise of many institutions born out of good faith. Whether it be in the service industry or some other business type, ultimately the bottom line figures have to make sense or nothing will ever amount to anything regardless of the time, effort, and backing a group or individual has standing with them. 

Business failure is not always the result of money, but it does account for a majority of the closures. While hiring an accountant or service to assist with your business venture may be well down the “to-do” lists of things associated with your idea in the beginning, it can greatly improve the odds of your future success. No matter the current state of your operation, if you’ve been in business for years or are just starting out, the benefits reaped from professionals analyzing your finances can have a significant impact on the trajectory of your performance.  

Inventory Tracking
Not only can accountants assist in matters associated with money, but their reach also extends into tracking numbers associated with inventory. Knowing when to reorder supplies and the funds necessary to operate can help in keeping your schedules aligned to generate the best practices of your business. Having another set of eyes on the inventory figures is bound to help, especially when ownership attention and efforts need to be focused elsewhere.

Price Evaluations
Part of the inventory tracking also leads to target price point evaluations. Setting these at a given rate which not only drives business but leads to maximizing profits can help get your business off on the right track or turn things around should you find yourself in a hole right now.

Cash Flow Pattern Analyzation
Cash flow is essentially the money generated and spent over any given period for the company. Ensuring that your end result resides with more money deposited than paid out helps to maintain that the business is on a profitable and sustainable path. Accountants can track these numbers over time and suggest adjustments should they be necessary.

Financial Forecasts
By analyzing each of the above characteristics for any entity, an accountant can also provide a glimpse into what the future of a company holds. Barring any unforeseen circumstances, a quality projection for the outlook of any business can be formulated by crunching these and other relatable numbers.

If you’re ready to hire an accounting service for your company or have any other tax related questions, then let the tax professionals at Bloch Rothman and Associates assist you today. In addition to providing quality services and answering your questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a top quality tax service, our group can also complete all types of returns and get answers to any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!
 
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Denver Tax Refund: Ideas for Using the Extra Money


July 1, 2020

Depending on the end result of your tax filing, individuals and couples will either receive a refund or owe additional money. If your credits and withholdings leave you having paid in too much throughout the year, then money is returned to the filer via a refund. Once calculated, if the end result is short of the owed amount then you will need to submit payment prior to the due date.

The majority receive tax refunds in America but what comes next? Deciding what to do with this extra cash can help in a variety of different ways. For some, saving or investing is the best practice for their situation while others may elect to simply take a vacation or splurge on an item they had been hoping to purchase. Regardless, every situation is different but there are multiple options for utilizing refunds of any size. 

Debt Payments
Paying off or down on credit card or other debts with high interest rates will help to save you money. In addition, depending on your personal situation, the end result could be an improved credit score.

Emergency Fund
Building or adding to an account that is for use in the event of an emergency can also be an important safety net for you or your family. Consistently adding to this fund with any available cash will ultimately build a nice stockpile should it be needed.

IRA Contribution
IRA contributions reduce average gross income and thus can lower your tax bill or perhaps lead to a refund. Utilizing this added money to make a contribution could be one way to help yourself now and into the future. 
Invest (Stock Market)

Putting the money to play in the stock market is an option which could also pay big dividends. Depending on where exactly the money is invested, it may return the taxpayer even more additional funding down the road.
Invest (Family)

If you have a child or multiple children, a savings or other investment account is also a viable option for your tax refund. Putting this extra money to work for them can add up as they grow older and be put toward larger future purchases such as automobiles or college.

Vacation
Consider taking a family vacation. Depending on the price of your planned trip, a tax refund could offer valuable spending money which would have initially come out of pocket or help pay for the cost of covering travel, accommodations, or other expenses associated with the trip.

Should you need any help determining your filing status, are in search of answers to tax related questions, or need to file a return then let the tax professionals at Bloch Rothman and Associates assist you today. In addition to providing answers for your questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a top quality tax service, our group can also complete all types of returns and get answers to any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!
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Denver Tax Specialist Tips for the upcoming Tax Day


June 24, 2020

Every year Tax Day rolls around in April but 2020 has been a unique experience for everyone, not only in the United States, but across the globe. The coronavirus pandemic forced an extension of the normal April 15 filing date, pushing back the deadline until July 15 for the first time ever. In an effort to ease the financial burden experienced by many individuals, in addition to decreasing the risk for exposure, the Internal Revenue Service (IRS) granted those responsible for filing taxes an automatic three month extension. While those who were expecting a refund were encouraged to submit their paperwork rapidly, the delay allowed for many to focus on their current situation as opposed to dealing with the 2019 tax year and putting together everything needed in order to submit a return.

While the tax filing deadline was extended to July 15 for federal returns, state taxes were left to individual determinations. For many, the same extension was applied, allowing both to fall in line - similar to a normal year, but some differences did occur. If you are one of the many individuals or families yet to file a return, consider each of the following Tax Day tips to keep your paperwork in line for this year and any other.  

Organization Is Key

Having the appropriate paperwork available for backup documentation on your return is critical to completing an on time filing. Preparing ahead of schedule, before your appointment, can not only save you money but it will also make the completion of your tax return seamless. Keeping proper records throughout the preceding year and managing the paperwork associated with tax filings can assist in helping to make the filing process easy as possible.

Extension Benefits and Deadline

Individuals and those who are filing jointly still have the opportunity of filing for an extension. While everyone was granted the chance to have their submission extended 90 days - until July 15, submitting the extension in lieu of the original date grants even more time for completion. October 15, a sixth month addition from the normal April 15 deadline, remains the date for those in need of a little more time. While this does add time to submit the paperwork, if you do owe any money to the IRS, then it remains to be due by July 15, as is normally the case for April filings.
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Denver Tax Return Corrections


June 10, 2020

Filing taxes can be a stressful time for individuals. Depending on the complexity of your return, ensuring that you have each and every figure correct can have critical results. Not only could a mistake cost you money, but leaving out certain items could also cause you to not be getting the refund to which you are entitled. For many people, turning their finances and yearly spending over to someone else for submission is the desired method, but even professional services can sometimes make mistakes. Regardless of how you file, finding someone you trust and an organization which places multiple sets of eyes on a single return will help to make certain that you benefit from the best possible outcome.

The most common tax filing mistakes involve everything from electing how you file to putting an improper name. While most of this confusion is the result of individuals getting married during the preceding year, there are also a few numbers which may be misconstrued as well. In the event that you find a mistake, knowing what steps to take next could help save you time and money in the future.

Correction

If an error has been made on a previously filed return, then reporting it yourself is best. To do so, individuals must fill out an amended tax return. While not as complex as the original, the 1040-X paperwork is used to show which return was submitted in error, the changes, and discrepancies in both the original and new figures.

Submission

At this time, amended returns may only be filed using the paper form and mailed to the corresponding Internal Revenue Service (IRS) office. Typically, changes can only be made within three years of the original filing date for a return. For most, this indicates corrections within each of the three preceding years are eligible to be made. 

Results

Once submitted, returns are usually processed within a few weeks and corrections noted with appropriate action taken. If you owe money, this should be submitted along with the 1040-X form or paid online. Should a refund be due, then the IRS will issue a check accordingly.

If you notice a mistake, wish to have someone else take a look at your recent returns, or have any other tax related questions, then let the tax professionals at Bloch Rothman and Associates assist you today. In addition to providing answers for your questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a top quality tax service, our group can also complete all types of returns and get answers to any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!
 
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