Funds for Taxpayers Claiming EITC and ACTC Funds are being released for taxpayers who are claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) after additional scrutiny to protect against tax fraud and scams. Please keep in mind that this is for those who chose direct deposit for their refund and barring any other issues relating to your tax return. It's understood that these funds have been released and will be appearing in bank accounts this week or next. Traditionally, the IRS says, you will receive your refund (again, barring any unforeseen circumstances) within about 21 days of filing. If you don't receive your refund in what you feel is a reasonable time frame, you can go to the following websites Read More...
Another SCAM the IRS Wants You to be Aware of
Another SCAM the IRS Wants You to be Aware of Last week, the IRS put out a press release warning tax payers of yet another SCAM. Previously, we posted about the Form W-2 scam that urged payroll personnel to take extra precautions when it comes to protecting the information of their employees. This time, the target of these scammers is the money that is deposited into the taxpayers' account! This scam involves erroneous tax refunds being deposited into bank accounts. These criminals steal client data from tax professionals and file fraudulent tax returns. From here, they use the taxpayers' real bank accounts for the deposit. Once the funds are deposited, they are using various tactics to reclaim the refund from the taxpayers. What Read More...
10% Investment Tax Credit (ITC) for CHP Turbines
Congress Reinstates 10% Investment Tax Credit (ITC) for CHP Turbines Combined Heat and Power (CHP) technology allows electricity to be generated from steam used in industrial processes that may otherwise go underutilized. CHP processes utilize this steam to drive a turbine that generates electricity. The technology is becoming increasingly popular energy solution due to its cost effectiveness, efficiency, and environmental advantages. A number of ethanol plants have been adopting this technology. This may be because CHP often: reduces their energy costs improves their environmental footprint and enhances the reliability of their operations. Previously, there was a federal Investment Tax Credit (ITC) to facilitate the Read More...
The Expansion of the 45Q Tax Credit for CO2 Capture
The Expansion of the 45Q Tax Credit for CO2 Capture For years, the ethanol industry has been capturing carbon dioxide and selling it to manufacturers of carbonated beverages and other customers. As part of a government-spending bill, Congress just approved a large expansion of the 45Q tax credit for CO2 capture. The expansion of the 45Q credit could very well lead to innovations in what the ethanol industry does with its CO2 and changes in the dynamic of how it interacts with the oil industry. In fact, oil companies often purchase large volumes of CO2 for a practice known as “Enhanced Oil Recovery” (or “EoR”). As their thirst for CO2 continues to grow in proportion with its domestic production activities that utilize EoR methods, Read More...
Last Minute Spending Bill Reinstates OSLT for 2018
Last Minute Spending Bill Reinstates OSLT for 2018 The Oil Spill Liability Tax (OSLT) is an excise tax on crude oil products, like natural gasoline used as denaturant for fuel ethanol. The tax had expired at the end of 2017. However, the spending bill passed on February 9 to end the temporary shutdown of the federal government included a provision to reinstate the oil spill tax. Section 40416 of HR 1892 reinstates the OSLT effective March 1, 2018. It sets a new expiration date of December 31, 2018. The OSLT is now in effect from 3/1/18-12/31/18. This bill did not include a change to the rate at which the excise tax is imposed. The rate had increased in 2017 to $0.09 per barrel, which is equivalent to $0.00214 per gallon of Read More...
New Withholding Tables – An Increase in Take-Home Pay!
EXCITING NEWS - You May See an Increase in Your Take Home Pay! 90% of people will see an increase in take home pay as early as next month! How Will I Know if I am One of the 90%? The U.S Treasury Department has recently released new withholding tables based on the tax reform bill. The withholding tables are used by employers to determine how much to withhold from employee paychecks. The new withholding tables have been updated to reflect changes in tax rates and brackets, the increased standard deduction and the repeal of personal exemptions. Most people should see increases to their take home pay as a result of the new withholding tables by mid-February. The IRS is currently working on a new form W4 that will more fully reflect Read More...
Minnesota Education Tax Updates
At Christianson, our experts are actively keeping on top of all of the changes that have occurred. The emphasis of this post today is going to be around education tax changes in Minnesota. There are several important credits and subtractions to be aware of this year that may impact you, as a student or as a parent of a student. Master's Degree in Teacher's Licensure Field Credit Who Qualifies Taxpayers qualify to receive this credit if you enroll in a Master's Degree program in Minnesota after June 30th, 2017. The program in which you are receiving your Master's Degree must be English or Language Arts, Math, Science, Foreign Languages, Civics and Government, Arts, History, or Geography. This credit may not be claimed until the year Read More...
TAX TIME – Keeping Records
At Christianson, making sure you're prepared and never at risk is one of our top priorities. One of the most commonly asked questions is: "how long do I have to keep my tax records?". This is important for both individuals and for businesses. Here's what you need to know: How Long Should I Keep Records? The general recommendation is to keep tax records for 3 years from the date you filed your tax return. So for 2016 tax returns filed by April 15, 2017, the 3 year period expires on April 15, 2020. This is the timeframe that you have to amend a tax return or the IRS has to audit you. There are certain circumstances when the IRS can initiate an audit after the 3 year period, such as if a tax return was never filed, or if a Read More...
Duty Drawback Refunds – Could This Benefit You?
At Christianson we want you to be aware of industry-related legislative changes that may impact your biofuels business. There has been a change to drawback regulations that may qualify your exports for a refund of similar product import tariffs. Here’s how it may impact you: Duty Drawback Simplification Are you currently importing and/or exporting goods as a regular part of business? If so, you could be eligible for a reimbursement of certain duties, internal revenue taxes, and fees collected on the importation of goods. These refunds are allowed upon the subsequent exportation or destruction of goods. The Trade Facilitation and Trade Enforcement Act of 2015 recently underwent an expansion and simplification that allows for increased Read More...
Minnesota Credit for School Supplies
Back-to-school sales are in full swing! At Christianson PLLP, we want to remind parents about tax benefits for their 2017 MN tax return for many school expenses. MN has both a credit and a subtraction for education-related expenses. The Minnesota Department of Revenue reminds families interested in claiming these tax benefits to save all receipts related to school supplies. You can keep these receipts with your other tax documents that you traditionally bring to your tax preparer. Most required K-12 school supplies qualify for the credit or subtraction, including writing utensils, textbooks, calculators, tutors, academic programs and camps, and musical instrument lessons (including purchases or rentals). Common items that do not Read More...