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Power Up Your Trust With Crummey Powers

Posted by Melanie Abigania and Jessica Simons on Apr 25, 2022 12:23:43 PM

The unified gift and estate tax exemption is set at an inflation-adjusted $12.06 million for 2022, up from $11.7 million for 2021. This means that for many families, estate tax liability isn’t a factor. However, for others, the annual gift tax exclusion continues to be an important estate planning strategy — especially since future tax law changes could lower the gift and estate tax exemption. For this reason, using a Crummey trust in your estate plan remains an important estate planning strategy. Here’s why.

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Topics: Tax, Estate Planning, High Net Worth

Careful Planning Required For Beneficiaries to Borrow From a Trust

Posted by Melanie Abigania and Jessica Simons on Apr 25, 2022 12:22:35 PM

Intrafamily loans allow you to provide financial assistance to loved ones — often at favorable terms — while potentially reducing gift and estate taxes. But what about families that lack the liquid assets to make such loans? Are there other options if they have a trust?

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Topics: Tax, Estate Planning

5 Things You'll Learn at SC Summer Summit

Posted by Emily Taibl on Feb 23, 2022 9:16:45 PM

Sweeney Conrad's Summer Summit is one of our most anticipated events of the year. For the past two years, we have had to hold the events virtually - so we are thrilled that this year we will be back in person on June 23!

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Topics: Sweeney Conrad People, Sweeney Conrad Passion, Tax

2022 Tax Calendar

Posted by Sweeney Conrad, PS on Feb 10, 2022 4:35:45 PM

Date

Deadline for:

January 31

Individuals: Filing a 2021 income tax return (Form 1040 or Form 1040-SR) and paying tax due, to avoid penalties for underpaying the January 18 installment of estimated taxes.

Businesses: Providing Form 1098, Form 1099-MISC (except for those that have a February 15 deadline), Form 1099-NEC and Form W-2G to recipients.

Employers: Providing 2021 Form W-2 to employees; reporting income tax withholding and FICA taxes for fourth quarter 2021 (Form 941); and filing an annual return of federal unemployment taxes (Form 940) and paying any tax due.

Employers: Filing 2021 Form W-2 (Copy A) and transmittal Form W-3 with the Social Security Administration.

February 10

Individuals: Reporting January tip income of $20 or more to employers (Form 4070).

Employers: Reporting income tax withholding and FICA taxes for fourth quarter 2021 (Form 941) and filing a 2021 return for federal unemployment taxes (Form 940), if you deposited on time and in full all of the associated taxes due.

February 15

Businesses: Providing Form 1099-B, 1099-S and certain Forms 1099-MISC (those in which payments in Box 8 or Box 10 are being reported) to recipients.

Individuals: Filing a new Form W-4 to continue exemption for another year, if you claimed exemption from federal income tax withholding in 2021.

February 28

Businesses: Filing Form 1098, Form 1099 (other than those with a January 31 deadline) and Form W-2G and transmittal Form 1096 for interest, dividends and miscellaneous payments made during 2021. (Electronic filers can defer filing to March 31.)

March 10

Individuals: Reporting February tip income of $20 or more to employers (Form 4070).

March 15

Calendar-year S corporations: Filing a 2021 income tax return (Form 1120S) or filing for an automatic six-month extension (Form 7004) and paying any tax due.

Calendar-year partnerships: Filing a 2021 income tax return (Form 1065 or Form 1065-B) or requesting an automatic six-month extension (Form 7004).

March 31

Employers: Electronically filing 2021 Form 1097, Form 1098, Form 1099 (other than those with an earlier deadline) and Form W-2G.

April 11

Individuals: Reporting March tip income of $20 or more to employers (Form 4070).

April 18

Individuals: Filing a 2021 income tax return (Form 1040 or Form 1040-SR) or filing for an automatic six-month extension (Form 4868) and paying any tax due. (See June 15 for an exception for certain taxpayers.)

Individuals: Paying the first installment of 2022 estimated taxes, if not paying income tax through withholding (Form 1040-ES).

Individuals: Making 2021 contributions to a traditional IRA or Roth IRA (even if a 2021 income tax return extension is filed).

Individuals: Making 2021 contributions to a SEP or certain other retirement plans (unless a 2021 income tax return extension is filed).

Individuals: Filing a 2021 gift tax return (Form 709) or filing for an automatic six-month extension (Form 8892) and paying any gift tax due. Filing for an automatic six-month extension (Form 4868) to extend both Form 1040 and, if no gift tax is due, Form 709.

Household employers: Filing Schedule H, if wages paid equal $2,300 or more in 2021 and Form 1040 isn’t required to be filed. For those filing Form 1040, Schedule H is to be submitted with the return and is thus extended to the due date of the return.

Trusts and estates: Filing an income tax return for the 2021 calendar year (Form 1041) or filing for an automatic five-and-a-half-month extension to September 30 (Form 7004) and paying any income tax due.

Calendar-year corporations: Filing a 2021 income tax return (Form 1120) or filing for an automatic six-month extension (Form 7004) and paying any tax due.

Calendar-year corporations: Paying the first installment of 2022 estimated income taxes.

May 2

Employers: Reporting income tax withholding and FICA taxes for first quarter 2022 (Form 941) and paying any tax due.

May 10

Individuals: Reporting April tip income of $20 or more to employers (Form 4070).

Employers: Reporting income tax withholding and FICA taxes for first quarter 2022 (Form 941), if you deposited on time and in full all of the associated taxes due.

May 16

Exempt organizations: Filing a 2021 calendar-year information return (Form 990, Form 990-EZ or Form 990-PF) or filing for an automatic six-month extension (Form 8868) and paying any tax due.

Small exempt organizations (with gross receipts normally of $50,000 or less): Filing a 2021 e-Postcard (Form 990-N), if not filing Form 990 or Form 990-EZ.

June 10

Individuals: Reporting May tip income of $20 or more to employers (Form 4070).

June 15

Individuals: Filing a 2021 individual income tax return (Form 1040 or Form 1040-SR) or filing for a four-month extension (Form 4868), and paying any tax and interest due, if you live outside the United States.

Individuals: Paying the second installment of 2022 estimated taxes, if not paying income tax through withholding (Form 1040-ES).

Calendar-year corporations: Paying the second installment of 2022 estimated income taxes.

July 11

Individuals: Reporting June tip income of $20 or more to employers (Form 4070).

August 1

Employers: Reporting income tax withholding and FICA taxes for second quarter 2022 (Form 941) and paying any tax due.

Employers: Filing a 2021 calendar-year retirement plan report (Form 5500 or Form 5500-EZ) or requesting an extension.

August 10

Individuals: Reporting July tip income of $20 or more to employers (Form 4070).

Employers: Reporting income tax withholding and FICA taxes for second quarter 2022 (Form 941), if you deposited on time and in full all of the associated taxes due.

September 12

Individuals: Reporting August tip income of $20 or more to employers (Form 4070).

September 15

Individuals: Paying the third installment of 2022 estimated taxes, if not paying income tax through withholding (Form 1040-ES).

Calendar-year corporations: Paying the third installment of 2022 estimated income taxes.

Calendar-year S corporations: Filing a 2021 income tax return (Form 1120-S) and paying any tax, interest and penalties due, if an automatic six-month extension was filed.

Calendar-year S corporations: Making contributions for 2021 to certain employer-sponsored retirement plans, if an automatic six-month extension was filed.

Calendar-year partnerships: Filing a 2021 income tax return (Form 1065 or Form 1065-B), if an automatic six-month extension was filed.

September 30

Trusts and estates: Filing an income tax return for the 2021 calendar year (Form 1041) and paying any tax, interest and penalties due, if an automatic five-and-a-half-month extension was filed.

Employers: Establishing a SIMPLE or a Safe-Harbor 401(k) plan for 2021, except in certain circumstances.

October 11

Individuals: Reporting September tip income of $20 or more to employers (Form 4070).

October 17

 

Individuals: Filing a 2021 income tax return (Form 1040 or Form 1040-SR) and paying any tax, interest and penalties due, if an automatic six-month extension was filed (or if an automatic four-month extension was filed by a taxpayer living outside the United States).

Individuals: Making contributions for 2021 to certain existing retirement plans or establishing and contributing to a SEP for 2021, if an automatic six-month extension was filed.

Individuals: Filing a 2021 gift tax return (Form 709) and paying any tax, interest and penalties due, if an automatic six-month extension was filed.

Calendar-year C corporations: Filing a 2021 income tax return (Form 1120) and paying any tax, interest and penalties due, if an automatic six-month extension was filed.

Calendar-year C corporations: Making contributions for 2021 to certain employer-sponsored retirement plans, if an automatic six-month extension was filed.

October 31

Employers: Reporting income tax withholding and FICA taxes for third quarter 2022 (Form 941) and paying any tax due.

November 10

Individuals: Reporting October tip income of $20 or more to employers (Form 4070).

Employers: Reporting income tax withholding and FICA taxes for third quarter 2022 (Form 941), if you deposited on time and in full all of the associated taxes due.

November 16

Exempt organizations: Filing a 2021 calendar-year information return (Form 990, Form 990-EZ or Form 990-PF) and paying any tax, interest and penalties due, if a six-month extension was previously filed.

December 12

Individuals:  Reporting November tip income of $20 or more to employers (Form 4070).

December 15

Calendar-year corporations: Paying the fourth installment of 2022 estimated income taxes.

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Topics: Tax

New Tax Reporting Requirements for Payment Apps Could Affect You

Posted by Sweeney Conrad, PS on Feb 3, 2022 6:47:12 PM

If you run a business and accept payments through third-party networks such as Zelle, Venmo, Square or PayPal, you could be affected by new tax reporting requirements that take effect for 2022. They don’t alter your tax liability, but they could add to your record-keeping burden, as well as the number of tax-related documents you receive every January in anticipation of tax-filing season.

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Topics: Tax

Checklist: Preparing Your 2021 Tax Documents

Posted by Tenly Krakoff on Jan 19, 2022 6:54:16 PM

It’s the middle of January, which means it is almost tax season (the IRS officially designated January 24 as the first day of tax season).  At this point, tax documents have probably started showing up in your mailbox.  While it may seem like there is plenty of time, the sooner and more organized you can make your documents, the smoother the process will be.

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Topics: Tax

Is Your Estate Plan Up to Date Following a Divorce?

Posted by Melanie Abigania and Jessica Simons on Dec 28, 2021 5:56:07 PM

If you’ve recently divorced, your time likely has been consumed with attorney meetings and negotiations, even if everything was amicable. Probably the last thing you want to do is review your estate plan. But you owe it to yourself and your children to make the necessary updates to reflect your current situation.

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Topics: Tax, Estate Planning

New IRS Guidance - Tax Treatment of Research Expenses

Posted by Jeff Piha, CPA on Nov 18, 2021 7:34:29 PM

For many businesses, research and development (R&D) costs are a major expense—and a source of potentially significant tax questions. Two recent developments have complicated these questions. One is a new IRS memo announcing more stringent reporting requirements for some taxpayers claiming a widely-used tax credit; the other is a potential change in the deductibility of research expenses.

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Topics: Tax

Don't Forget to Factor 2022 Cost-Of-Living Adjustments Into Your Year-End Tax Planning

Posted by Sweeney Conrad, PS on Nov 18, 2021 7:07:32 PM

The IRS recently issued its 2022 cost-of-living adjustments for more than 60 tax provisions. With inflation up significantly this year, mainly due to the COVID-19 pandemic, many amounts increased considerably over 2021 amounts. As you implement 2021 year-end tax planning strategies, be sure to take these 2022 adjustments into account.

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Topics: Tax

Potential Tax Law Changes Hang Over Year-end Tax Planning for Individuals

Posted by Sweeney Conrad, PS on Nov 11, 2021 7:21:50 PM

As if another year of the COVID-19 pandemic wasn’t enough to produce an unusual landscape for year-end tax planning, Congress continues to negotiate the budget reconciliation bill. The proposed Build Back Better Act (BBBA) is certain to include some significant tax provisions, but much uncertainty remains about their impact. While we wait to see which tax provisions are ultimately included in the BBBA, here are some year-end tax planning strategies to consider to reduce your 2021 tax liability.

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Topics: Tax, News

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