Andrew S. Kipperman, CPA

I am pleased to announce that as of 1/1/2023 I will be merging with JJ Haffner Co, LLC in Wallingford. I am still going to be around doing what I have been doing for the last 45 years. This new opportunity for me is exciting and I hope all my clients feel the same way. My current phone number can be used for the near future. The new phone number for the Wallingford office is 203-269-6682. You can use my current email address or the new one [email protected]

I hope to see all clients, new and old, at my new office.

I have received a few calls regarding the July 15, 2020 due date for individual tax returns and payments. July 15 is the new April 15, for 2020 anyway. You can file before that date. If you are getting a refund I would suggest you do.

If you file before that date and you owe taxes, you do not have to pay until that date. That goes for CT (as well as most states). There are no penalties or interest as long as the payment is made by July 15, 2020.

It's like past years, you can file before April 15 and not have to pay until April 15.

If you need more time on July 15, then you MUST file an extension (as it stands now).

The House just voted to approve the Senate relief package. The part of the bill that everyone is hearing, the money coming in from the government, is NOT taxable. It is, in reality, a pre-payment of a new 2020 credit. Without getting into the weeks, there will be a reconciliation on the 2020 federal income tax return. It is possible that some folks might receive more money. However, it does not appear that any of the funds will need to be given back if a person (family) received too much.

Additionally, the 10% penalty for early withdrawal from retirement plans is waived for anyone needing funds to treat the Covid virus (including spouse and children) or has experienced an adverse financial consequence related to job layoff or reduced work hours. These distributions cannot exceed $100,000. Those who needed the funds can redeposit that amount into the plan within 3 years after withdrawal. Distributions related to the Covid virus, can be included in income ratably over 3 years.

Required minimum distributions from retirement plans have been waived for 2020.

For non-itemizers, a maximum $300 charitable contribution deduction is allowed in addition to the standard deduction.

These are the highlights, and not all of the parts, of the package.

Andrew S. Kipperman, CPA updated their phone number.

Dear Client,

Given the current health crisis, I am cancelling all in person appointments for this tax season. While I would prefer not to take this measure, I feel for the health safety for myself and my clients, it is the most prudent direction to take.

To that end, you can mail in, fax or scan and email me your information. If you want to drop it off, you can. Please put your information in an envelope and slip it in the mail slot in my office door. The main door of the building is unlocked until 7pm each day.

If the package is too large to fit in the mail slot, my office hours are 9am to 5pm. You can knock on the office door and I will come out to take the package from you.

Please give me a daytime contact number so I can reach you with any questions I might have while I am preparing your return even if you think I have the number.

While the payment date for any balances due has been extended until July 15, 2020, the due date for filing appears to remain the same. It might be extended, but at this point, I am operating under the assumption that it will not.

Keep in mind the Heather Locklear commercial, https://www.youtube.com/watch?v=oykO6kXG9xg.

Be well.

Heather Locklear & Christopher Mayer 1984 Faberge Organic Shampoo Commercial Heather Locklear in a 1984 commercial for Faberge Organic Shampoo. The male actor is Christopher Mayer who briefly played Vance Duke on CBS' "The Dukes Of Ha...

As the new withholding tables are instituted by employers and payroll services, most, if not all employees will see an increase in take home pay. This withholding tax change is being made without any corrections or changes in the W-4's that are on file from 2017. The new law drastically changes the way deductions are determined. The old W-4 was based on filing status and number of exemptions (which was defined as anticipated deductions divided by the personal exemption amount for the year). Since personal exemptions are no longer in play, the new W-4, when released, will be taking into account the new deduction calculations. Remember, withholding taxes are merely a "deposit" against the actual tax liability that one has. Therefore, if you receive a higher take home pay, it might mean that your refund will be lower at filing time.

Now that the Senate has passed its version of tax reform, the two houses of Congress will hammer out their differences to create the final bill. The areas where there is agreement, and I would expect those items in the final bill are: miscellaneous itemized deductions are gone (union dues, work clothes, tools, home office deduction of employees, auto use of employees, investment advisor fees), moving expenses, state and local income taxes and casualty losses are no longer deductible. The personal exemption and standard deduction is merged to create a single deduction. Some taxpayers will benefit others will not. The child credit has been expanded and the phase out levels increased. There is a new credit for other dependents. While the talking points have touted that the law has been simplified, that remains to be seen. Stay tuned.

Gambling losses are still deductible up to the amount of winnings. Sorry about the confusion.

Since the administration has released its tax reform plan and others have started their analysis, I thought I would repost this from a few months back ......

I offer this information for information purposes only. Given the release of the President's tax proposal, I used the 2005 return which is now in the public. I applied the top rate (25%) to his all of his income (the bottom line of page 1) and do not deduct any itemized deductions ( therefore the income I taxed is higher than what would actually be taxed). Some of his income would be taxed at a lower rate. Therefore the tax that I calculated is the highest possible tax he would pay under his proposal. The President would save $24,000,000.

Again this post is information for information purposes. If the estate tax is repealed, as is detailed under the President's tax plan, his family will save over a billion dollars, that's $1,000,000,000 (based on his estimation of his worth).

I offer this information for information purposes only. Given the release of the President's tax proposal, I used the 2005 return which is now in the public. I applied the top rate (25%) to his all of his income (the bottom line of page 1) and do not deduct any itemized deductions ( therefore the income I taxed is higher than what would actually be taxed). Some of his income would be taxed at a lower rate. Therefore the tax that I calculated is the highest possible tax he would pay under his proposal. The President would save $24,000,000.

Having issues again with my phone lines. If you get ringing but no answer or voice mail, please call my cell 203-215-7861 and leave a message. I will keep everyone up to date. Thanks. Please share.

Phone and fax lines now up and no issues. Thanks for the patience.

Having issues with my phone and fax lines. My fax line is out and my second line (rollover) is out. The message is that the line is out of service. The line might be out, but I'm in. If you call me and get the out of service message, please wait a few minutes and try again. Or email me, send a facebook message or use my cell. Thanks for understanding.

It is still not too late to reduce your 2016 taxes. You can establish an IRA by 4/15/2017 and the deem the deposit for 2016 and still deduct the contribution (if it is otherwise deductible). For charitable contributions, the postmark must be by 12/31/16 for the donation to be allowed for 2016. Also remember, any donations that exceed $250 MUST be documented not only by your check, but by an acknowledgement by the charity or the deduction is not allowed. If you have a high deductible health insurance policy, you might be eligible for an HSA. The deposit to the HSA is allowed until 4/15/2017 and be deducted in 2016. Again, you must designate the deposit for 2016.

If you are considering making an annual gift, the recipient must receive the gift prior to 1/1/17 to have the gift apply to 2016. The annual gift exclusion is not cumulative.If a gift is not made for 2016, the $14,000 annual exclusion is lost.

As the year comes to a close, it is more imperative than ever to look at year end strategies. Next year will be a wild ride for tax legislation. Stay tuned.

This post is not an endorsement or slam against any candidate. It is merely information for those who are interested.

As a CPA, people have asked me what can we learn from Trump's tax return that could be helpful if the return is a large as he says it is. Other than the obvious, income, charity, taxes paid, we can learn if he does have any foreign investments. Depending on the set up of the investment, taxpayers must disclose any investments they might have with foreign persons. Also, taxpayer must disclose if they have any funds in a foreign bank accounts and if so, what country and how much. That information is much more important than the obvious.

As part of the trade bill that just passed, in order to take any education credit or deduction for tuition, you have to have received the form 1098T from the educational institution. I will need that form when I prepare the tax return, or the credit will not be allowed.

If you were one of the unlucky people who had your social highjacked and had your tax return rejected due to your social being used on another previously filed fraudulant return, you will receive a letter from the IRS in December, 2015. That letter will contain a PIN that you need to include in your 2015 electronic filing so the IRS knows that the return is a valid return. Do not lose that letter. Replacing the PIN is time consuming.

Fraudulantly filed returns are on the rampage. If you get a mailed letter, 5071C, from the IRS asking you to go to their website, please do. Answer the questions. Most likely a return has been filed with your information on it and the IRS is holding that return since it looks like it is fraudulant. Please share.

You can always tell when it is tax season. H & R Block starts with its commercials. But just like its commercials, once April 15th comes and goes, so do they. Professional help should be available all year long, not just when it is convenient for them. A CPA is around all year to provide help and guidance when you need it. Keep that in mind when you chose your professional this tax season. Hope to see you soon.

I can't remind folks enough, the scam artists are at it again during the filing season. Three clients have called me in the past two days and I even received a scam call. The IRS does not initiate contact by telephone. The first contact from the IRS for any matter, is by letter. They do not contact any taxpayers initially by any other means. Any phone calls purportedly from the IRS are scams and bogus. Do not call back. If you answer the phone and there is actually a person on the line (not a recorded message) hang up and do not respond to any questions.

For those wanting more information on the new health care law and its impact on the 2014 tax reporting can go to the IRS website athttp://www.irs.gov/pub/irs-pdf/p5187.pdf for more a new publication.

www.irs.gov

Congress has passed the extender bill which extends the tax provisions which expired at the end of 2013. They have been re-instated retroactively for 2014. Also included in the legislation going to the President to sign, is the ABLE act. This new law allows individuals with disabilities to have an account set up, similar to 529 plans for college, for their support and services. Call me for more details.

I still have one letter size file cabinet and two lateral file cabinets. They can be yours. All you need to do is pick them up. Inbox me for details.

The IRS has just announced the 2015 automobile standard mileage rate. The business rate is 57.5 cents up from 56 cents. The various other mileage rates have also been established. Go to irs.gov and search "standard mileage rates" for details.

As the year comes to a close, it is still not too late to review your tax situation to determine if there are strategies to employ before year end to reduce your 2014 tax picture. Contact me for a pre-year end review of your specific situation.

Now's a great time to review your tax situation while there is time to adjust either your withholding tax or estimated payments for 2014. Owing a lot in April is never fun, but getting a large refund is equally as troubling. Look what you could have done with those funds during the year.

If you purchased your health insurance on one of the insurance exchanges and received a premium tax credit, please review the income level you used in the calculation of the credit. If you need to change the income level to be closer to your actual income in 2014, please do so. If not, when your 2014 tax return is filed, you might be in for a surprise. If you received more of a credit than your are entitled, you will refund that credit on your tax return which could lead to a less than expected refund or even owing money when your return is filed. If you have any questions, please call me to discuss your specific situation.

Just a reminder, IRS scams are in full force. The IRS never makes first contact with a taxpayer by phone. The first contact is always by mail. NEVER give anyone who calls you and purports to be from the IRS any information no matter how much they seem to know about you. Hang up, call your CPA, and then report the matter to the local police. You are trying to be extorted.

The IRS never contact taxpayers by email. If you get an email, no matter how official it looks, it is not from the IRS. Forward the email to [email protected].

While the dependency exemption appears to be a simple concept, there are many issues that can either allow the exemption or deny the exemption. A missed exemption can cost a lot of tax dollars and a incorrectly taken exemption can cause a lot of headaches.

Keep in mind the two new medicare taxes that might be due when you file your return.

Want an easy way to see your federal tax refund status, download the IRS app, IRS2go from the app store or google play. Of course, you need to file your return first.

Don't forget, same s*x married couples must use the married filing jointly or married filing separately filing status for both the Federal returns and for CT returns for 2013 and beyond.

You have until the due date of your tax return to put money into your IRA for 2013. The maximum amount is $5,500. The catch up amount for those 55 or older is an additional $1,000. There are other conditions if you (or your spouse) are covered by an employer retirement plan or participate in an employer sponsored 401(k) plan. Please call for details.

In order to take the dependent care credit on your tax return, your child must be under the age of 14 (or physically or mentally disabled). The credit is available to single parents who have earnings from employment or married couples where both spouses have earnings from employment. There are other conditions, please call me with any questions you may have.