CPA/Manager Public Accounting Davis, Nagy & Company is a growing firm in Copley looking for a tax and accounting manager. We have a small but friendly staff, and great clients. The ideal candidate will be a team member who wants to be involved in every aspect of our clients’ accounts, providing oversight and management of engagements. There will be a significant amount of client interaction, thus communication skills are a top priority. We provide tax, accounting, payroll, and consulting services to our clients based on their specific needs.
Prepare and/or review individual and business tax returns
Ensure timely flow of returns
Prepare tax projections and planning
Research tax positions
Supervision of payroll tax return preparation
Identify opportunities for client tax savings
Communication with clients
Addressing notices and audits
Other projects as needed
Bachelor’s degree in Accounting
Minimum of 5 years of experience in public accounting
Strong written and verbal communication skills
Strong attention to detail
Ability to work independently, as well as in a team
Have the flexibility to do what it takes to provide great service to our clients
Consider applying for this role if you have any of the skills required for this job.
You can now pay your invoices with Venmo. You can scan the QR code or enter our Venmo user name @davisnagycpa within the Venmo App or website. New to Venmo? you can find more information and download the app here.
Please be advised that ODJFS is in the process of launching an online option for employers to report potential fraud on behalf of multiple current or former employees. The portal is estimated to go-live during the week of February 1st.
In the meantime, ODJFS encourages employers to direct employees to continue utilizing the existing online portal for individual reporting, by visiting unemployment.ohio.gov and selecting the Report Identify Theft button. Employers are also able to use the existing portal to report single instances of possible fraud on behalf of their employees.
The program includes several grants funded by the Federal CARES Act to small businesses and individuals. The business applications will open on November 2, 2020 on a first-come, first-served basis.
The following business programs are included:
Small Business Relief Grant – provides $10,000 grants to businesses who have 1 -25 employees paid via W-2. The business must have experienced revenue loss or incurred unplanned costs substantially caused by COVID-19. There are additional eligibility requirements at the link below. The maximum amount to be provided by the state under this program is $125 million.
Bar and Restaurant Assistance Fund – provides $2,500 payments to on-premise liquor permit holders. The maximum amount to be provided by the state is $37.5 million. This program is more of a refund for a portion of the liquor license, since the holder was not able to fully utilize it. We do not expect this application to be complicated.
Although the application for the Small Business Relief Grant has not been released, you will need your receipts and/or statements that show the amounts incurred to complete your application. The costs will need to be in the name of the business completing the application and either paid for or charged within a 60-day period prior to the filing date. Documentation will need to be attached to your application. The following costs can be included: payroll, utilities, rent or mortgage payments, supplies or equipment.
We are here to assist you with the application should you need our assistance. Since the process is on a first-come, first-served basis, we will not be able to help everyone the moment the application process opens. Should you wish to hire us to complete the application for you we will work on a first-come, first-served basis as well. Our fee will be $400 to complete the application process and we will not begin your application until you have provided a paragraph on how you were impacted by COVID-19 and copies of the needed expenditures listed above.
Should you have additional questions, please feel free to contact us.
As rules and regulations keep changing, we want to provide the guidance we currently have. Just remember that the final regulations may be different. In order to have a portion or all of your loan forgiven, you need to understand the documentation that will be required. Each lending institution may have slightly different requirements or forms to complete, but this is what everyone should begin putting in their file. Once the lending institution reviews your information and approves it for forgiveness, remember the SBA may audit this information for up to 10 years. It is up to each company to prove why they qualified for the funds and that the funds were used for the required expenses for the loan to be forgiven.
Checklist to put in your SBA PPP Loan folder:
Documentation as to how the company was affected. This will vary based on each business. The borrower needs to certify in good faith that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant” and loan proceeds “will be used to retain workers and maintain payroll”. You should add hard evidence such as financial statements showing a drop in sales, a drop in collections, business closure by state mandate, etc.
Worksheet showing how the loan amount for the PPP Loan was calculated, including the FTE number of employees
Copies of signed loan agreements
Document the date you receive funding and compute the end of the 8-week period in order to know when you need to have the funds spent.
Document what the funds were specifically spent on (discussed in depth below) and keep copies in your folder of each expense being claimed such as payroll reports, mortgage payments, utility bills, etc.
What can I use my PPP Loan funds on for the forgiveness piece? Generally, if you use the PPP Loan for following items, with 75% spent on payroll expenses and 25% the other items, you should qualify for forgiveness. If your FTE drops during your 8-week period, please contact us as this may affect your forgiveness calculation. Currently the regulations state that the expenses need to be incurred and paid during the 8-week period. We are waiting on clarification as to the incurred portion as these expenses may need to be prorated.
Payroll Expenses. The CARES Act defines payroll costs as Qualified Expenses. For a business (as opposed to an independent contractor or sole proprietor), payroll costs are payments to employees that are a. salary, wages, commissions, or similar compensation (up to an annualized $100,000) b. cash tips or equivalent c. vacation, parental, family medical, or sick leave (excluding payments for emergency paid sick leave or expanded family and medical leaves) d. separation or dismissal pay e. group health insurance f. retirement benefits g. employer-paid state or local payroll tax (but not federal payroll tax)
Mortgage Interest. The CARES Act defines any interest on indebtedness incurred in the ordinary course of business before February 15 that is a mortgage on real or personal property as a Qualified Expense. Principal payments or prepayments are excluded and therefore are not Qualified Expenses.
Rent Payments. The CARES Act defines any payments of rent under a leasing agreement in force before February 15, 2020, as a Qualified Expense. The CARES Act does not disqualify rent paid to family members or an insider relationship among parties so long as the lease for the property was in force before February 15, 2020. There is no current SBA guidance on late payments of past-due rent or prepayments of future rent.
Utilities. The CARES Act defines utilities as electricity, gas, water, telephone, or internet access for which service began before February 15, 2020, as expenses that qualify for loan forgiveness.
Sole proprietors and Independent Contractors without employees. If you received a PPP Loan based on your business net profit, we recommend you write two checks to yourself during the 8-week period as payroll for the loan forgiveness. The amount of the check should equal your monthly net profit computation. The balance should pay for your rent and utilities.
Remember, the legislation is still a moving target, but you need to make sure you are tracking the funds in detail and keeping copies of the receipts for the money spent. Should you have additional questions we are here to assist you the best we can.
During this unprecedented time, many employers have been forced to lay off employees, in response to stay-at-home orders, social distancing restrictions, lack of available work, and concerns about contracting COVID-19. In response, the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided expanded unemployment benefits to impacted individuals. The CARES Act provides additional weekly supplement payments, additional weeks of benefits, and a new program, Pandemic Unemployment Assistance, for those who traditionally have not qualified for unemployment benefits.
As employers begin reopening their doors to a “new normal,” in compliance with the Responsible RestartOhio requirements, many employees are expected to return to their previous employment. Ohio law prohibits individuals from receiving unemployment benefits if they refuse to accept offers of suitable work, or quit work, without good cause.
If you have employees who refuse to return to work or quit work, it’s important that you let the Ohio Department of Job and Family Services (ODJFS) know so we can make accurate eligibility determinations.
To report these occurrences, please visit unemployment.ohio.gov/employer and click on “Report COVID-19 Work Refusals.” This will take you to a web page to report these employees for investigation by ODJFS. Based on an individual examination of the facts from both parties, our claims examiners will then determine whether good cause exists for the individuals in question to continue receiving unemployment benefits.
Next week, the full policy that ODJFS will use to determine individuals’ continued eligibility for unemployment benefits after refusing to return to work will be posted here: http://jfs.ohio.gov/ouio/UIPolicy/index.stm. This policy will underscore the presumption that if an individual’s job is available for them to work again, they will not be eligible for unemployment benefits.
So much has changed in the week since we last reached out to
you. We hope that you are all staying
healthy. As you may have heard, Congress
has passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. It contains many programs for both
individuals and small businesses, and we wanted to make you aware of some of
Individual relief includes:
There will be a one-time tax rebate check of
$1,200 per individual and $500 per child.
There are no earned income requirements, and the full rebate is
available for those with incomes at or below $75,000 for individuals, $112,500
for head of household, and $150,000 for married couples.
Above these income levels, the benefit is phased
out with a $5 reduction for every $100 over these limits that is earned. The rebate completely phases out at $99,000
for single filers, $146,500 for head of household, and $198,000 for joint
filers with no children.
The IRS will be using direct deposit whenever
Expanded unemployment benefits –
The federal government will cover the cost of
additional benefits of up to $600 per week through July and providing for an
additional 13 weeks of regular benefits beyond the normal 26 weeks.
The benefits would be available to workers who
are unemployed due to their own illness, illness in a family member, the
necessity to quarantine, job loss because of the virus, and staying home to
take care of a child whose school or child care is closed because of the virus.
It excludes those who can telework for pay, or who are already receiving paid
sick leave or other paid leave benefits.
Student loan payments are deferred on all
federal owned student loans. This
includes both principal and interest through September 30, 2020, without
For the remainder of 2020, employers can repay
up to $5,250 of an employee’s student loans without that payment counting
toward the employee’s taxable income.
Individuals can deduct up to $300 in cash
contributions in 2020, regardless of whether they itemize their deductions.
Required minimum distributions from retirement
plans are waived for 2020.
Individuals who have experienced adverse
financial consequences as a result of COVID-19 are able to make withdrawals of
up to $100,000 from their retirement funds without having to pay the 10%
penalty normally incurred for individuals under 59 ½.
Loans from certain retirement plans will be
allowed for those experiencing adverse financial consequences so that their
funds can remain invested and benefit from market growth.
Business relief includes:
The Paycheck Protection Program, operated
through the SBA’s 7(a) loan program, would provide for loans of up to 2.5 times
the employer’s average monthly payroll at a maximum interest rate of 4%.
The portion of the loan used to keep employees
on payroll, make rent or mortgage payments, utilities, insurance, or certain
other costs during an 8-week period beginning on the loan date, would be
forgiven on June 30th.
Amounts not forgiven would convert to a 10-year
Employers that have closed or have suffered
economic hardship and continue to pay employees that are on leave may be
eligible for a 50% credit on up to $10,000 of wages paid.
Employers and self-employed individuals can
defer payment of payroll taxes incurred during 2020. Half would be paid by the end of 2021, and
half by the end of 2022.
The loss limitation for pass-through businesses
is modified, allowing them to deduct excess business losses. In addition, losses from 2018, 2019, and 2020
can be carried back to the previous 5 years, creating refunds.
The SBA will pay all principal, interest, and
fees on all existing SBA loans for 6 months.
As you may know, the deadline for filing and paying federal
taxes due April 15, 2020 has been pushed back to July 15, 2020. We have received some clarification on a few
related items this week. First, the
extension is for returns and payments due 4/15/20 and includes any first
quarter estimates due. Please note that
it does not include the second quarter estimate due 6/15/20. So, your second quarter estimate will have a
due date earlier than your first quarter estimate.
The Ohio legislature has passed a bill extending the state filing deadline to July 15 the Governor signed it yesterday. We do not have clarity yet on local tax filings.
Our office remains closed through April 6th. We are working remotely and have access to email and phones. We are again encouraging you to mail your information to us, or request that we set up portal access for you to upload your documents. If you would like access and are not already registered, please email [email protected] and we will create an account for you. You are then able to upload your documents to us and we are able to upload tax returns back to you.
We have additional information regarding unemployment
benefits, sick pay, and SBA loans on our website at www.davisnagycpa.com.
We appreciate your patience while we complete your
returns. We have had many additional
obstacles this tax season and are working diligently to complete your returns
as soon as possible. Our thoughts are
with you and your families.
Isaac M. O’Bannon, Managing Editor On Dec 26, 2018
If you heard that millions of people tried performing surgery on themselves every year, you’d likely be aghast or at least perplexed that people would take such a chance at something so complex. Well, every year, millions of taxpayers decide to perform complex tax preparation by themselves and, while it may not put their life at risk, it is a perilous task.
For taxpayers with the simplest income tax returns, do-it-yourself online tax systems will likely suffice. These people often have only one source of income coming from a traditional employer, may have a home mortgage with interest, student loan debt and perhaps some childcare credits. For individuals with more complex incomes, such as revenue from businesses, income from interest and dividends, capital gains on a home sale or foreign assets, seeking the expertise of a professional can save time, money and potential legal complications.
For small business owners and most taxpayers, there are many reasons why seeking a tax professional is better than performing your own tax surgery. Read More
Taxes are complex.
Even simple tax situations can be complex, especially if the person owns a business or receives income from one, has children, has recently divorced, received a Form 1099, had income from a state you don’t live in, or moved. (www.usatoday.com/story/news/politics/2014/04/02/irs-commissioner-urges-congress-to-simplify-tax-code/7215107/) Adding to the complexity, new tax laws are enacted every year that affect virtually everyone, making it tough to keep up with changes and how they might affect you. For small businesses that have to manage income tax withholding and reporting for its employees, taxes are even more complex, and then there’s healthcare reporting. While tax software can help, an experienced tax pro “has seen it all before,” and also keeps up with tax law changes through educational courses.
Your Time is Money.
While you may be able to prepare your taxes yourself for $150 or less online, many do-it-yourself filers spend an inordinate amount of time doing it. According to the IRS, the average taxpayer spends 13 hours preparing their return. (www.nolo.com/legal-encyclopedia/how-much-time-do-you-spend-preparing-your-tax-return.html.) Hiring a tax pro can reduce that to the time it takes to gather your tax documents and forward them to his or her office, go over a few items with the pro, then review the final return for accuracy. If your time is better spent with family, friends or even binge-watching tv during those early days of spring, then hiring a tax pro can make for sunnier days.
Tax Pros Can Save You Real Money.
According to a 2017 survey by the National Society of Accountants, the average federal tax return in the U.S., including the tax return for the person’s state of residence, cost $273 for a professional preparer to handle (www.cpapracticeadvisor.com/12300090). A Schedule C (for business income and expenses) only costs an average of $184 more. In addition to saving you hours and hours of painfully boring and perilous tax guessing, experienced tax preparers also know all of the deductions that you may qualify for, and which items are tax deductible if you own a business. They can also easily tell you whether it’s more beneficial to itemize or take the standard deductions. Even if you just earn a little extra income on the side, a tax pro may be able to find you deductions or credits that will more than pay for their services and keep more of your hard earned money in your pocket. Or get Uncle Sam to send more of it back in a tax refund. To top it off, the cost of having your taxes prepared by a professional can also be tax deductible.
Mistakes Will Cost You.
If you do your taxes yourself, you are much more likely to make mistakes … and they can cost you big. Even simple math errors can cause a return to be inaccurate, leaving the taxpayer liable for past taxes and interest. For errors the IRS believes are not accidental, such as failing to report income, taxpayers can also face large fines and even criminal prosecution. Here are tips to avoid common tax-filing mistakes: www.bankrate.com/finance/taxes/10-common-tax-filing-mistakes-to-avoid-1.aspx.
Peace of Mind.
Have you ever finished your taxes and were pleased with the income tax refund amount, but were less than confident in the accuracy of the return? Or if a particular deduction or credit really applied to you? The only people that look forward to an IRS audit are IRS auditors, and the best way to avoid their scrutiny is to make sure your tax return is in compliance with the tax laws. The best way to do that is to hire a professional who lives, works and breathes taxes every day (or at least a lot more frequently than you do). There is still a chance than any taxpayer will get audited, but if you use the services of a professional CPA, Enrolled Agent or Tax Attorney, and your return is selected for further inspection by the IRS, those professionals will help represent you on your behalf before the IRS. Don’t go before a court without a lawyer, and don’t go before the IRS without a tax pro.
The taxes you pay this year can affect the taxes you will owe next year- so it is best to look at the larger picture- and plan ahead for those events that you can plan (college, new house, business changes, moving, divorce). Most tax professionals would like you to meet with them before it’s time to do your taxes, while there is still time to take proactive steps to reduce your taxes or minimize other effects. A tax planning meeting can result in significant savings for many taxpayers and businesses.
By Ken Berry, J.D., CPA Practice Advisor Tax Correspondent On Jan 16, 2019 Source: https://www.cpapracticeadvisor.com/news/12440133/will-government-shutdown-affect-tax-refunds
*Updated 10:01 am, ET, Jan. 16. 2019.*
Tax refunds may not be going out on time after all.
As the government shutdown approaches a full month—it’s already the longest in history—more doubt is creeping in as to whether a reduced staff at the IRS will be able to process returns and issue refunds in a timely manner. What’s more, as this is being written, there’s no end in sight to the stalemate.
When the IRS announced that tax filing season would kick off on January 28, it also stated that the shutdown wouldn’t delay tax refunds due to early filers. “We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown,” said IRS commissioner Chuck Rettig. The proclamation was made in accordance with directives from the White House.
At the time, the IRS was operating with only about 10,000 employees, or roughly 12% of its usual staff. In a new contingency plan released on January 15, the IRS said that it was calling back more workers, increasing its staff to about 46,000 employees, or a total of 57% of its workforce. The additional employers getting the call will be working without pay, so their motivation may be suspect.
Yet some observers are commenting that even this increase is “too little, too late” to enable the IRS to meet its commitments. The agency was already operating on a tight budget amidst controversy in recent years over alleged improprieties. It will have to quickly get employees up to speed to handle the expected crush once returns start flooding in at the end of the month.
To further complicate matters, this is the first year that many provisions in the Tax Cuts and Jobs Act (TCJA) take effect. Under the TCJA, personal exemptions are eliminated, the standard deduction is doubled and numerous deductions are modified, among other significant changes. It was already going to be a challenging tax filing season and the shutdown only adds fuel to the fire.
“It’s the biggest tax reform change in 30 years. There are going to be many, many millions more questions that are asked. You’ve got a shutdown. You’ve got fewer employees,” said Tony Reardon, president of the National Treasury Employees Union that represents IRS employees, as quoted in an article in the Los Angeles Times. “To me, that is all a big brew that spells potential trouble.”
Don’t expect taxpayers to remain patient. During the first week of filing last year—spanning January 29, 2018 through February 3, 2018— the IRS accepted about 18.3 million returns and issued 6.2 million refunds. The IRS says that the average refund, based on 2017 returns, is $2,895.
Finally, other services at the IRS will be affected by the crackdown, notably the level of assistance offered to both taxpayers and practitioners. With fewer experienced workers on hand, there are obviously fewer staffers to answer call-ins and provide information. This is expected to lead to a big jump in filing extension requests for the 2018 tax year.
=Original article appears below.=
Despite the shutdown of the federal government, which has now dragged into its third week, the IRS expects to kick off the tax filing season on Monday, January 28.
It will begin accepting both electronic and payer returns on that day.
The announcement was made on January 7 in accordance with directives from the White House (IR-2019-01, 1/7/19).
Traditionally, the IRS hasn’t issued tax refunds when the government is shut down, as evidenced by refund delays during an extended period in 2013. This has caused concern among many early filers who want to get their hands on the tax money as soon as possible. But the IRS has assured taxpayers that it will be conducting business as usual no matter how long the stalemate lasts.
“We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown,” said IRS commissioner Chuck Rettig in a press release. “I appreciate the hard work of the employees and their commitment to the taxpayers during this period.”
Currently, the IRS is working with only about 12% of the staff it usually employs.
What’s more, resources were already stretched then due to a limited budget. The IRS has yet to announce ant additional contingency plans for the shutdown or explained how it will meet its objectives. It has, however, stated that it will be recalling a big part of its workforce.
To further complicate matters, the 2018 returns that are to be filed by individual taxpayers this year include numerous changes implemented by the Tax Cuts and Jobs Act (TCJA). Among other significant provisions, the TCJA lowers tax rates, eliminates personal exemptions and modifies certain deductions. This is expected to place an even greater strain on the system.
“IRS employees have been hard at work over the past year to implement the biggest tax law changes the nation has seen in more than 30 years,” noted Rettig. The filing deadline for 2018 tax returns remains Monday, April 15, 2019 for most taxpayers. Due to local holidays, taxpayers who live in Maine or Massachusetts have until April 17, 2019 to file their returns.
Software companies and tax professionals can start accepting and preparing tax returns before January 28 and then submit the returns when the IRS systems open later this month. The IRS is urging taxpayers to file their tax returns electronically to minimize errors and provide faster refunds.
Deadline Dec. 31 for most retirees who must make required retirement plan distributions
IR-2018-248, December 11, 2018
WASHINGTON — The Internal Revenue Service today reminded retirees born before July 1, 1948, that they usually must take distributions from their individual retirement arrangements (IRAs) and workplace retirement plans by Dec. 31.
The payments, called required minimum distributions (RMDs), are normally made by the end of the year. Those who reached age 70½ during 2018 are covered by a special rule that allows them to wait until April 1, 2019, to take their first RMDs.
This means that those born after June 30, 1947, and before July 1, 1948, are eligible for this special rule for 2018. If they wait until early 2019 to take that first RMD (up until April 1, 2019), it can be counted toward their 2018 RMD, but is still taxable in 2019. Read More
The special April 1 deadline only applies to the RMD for the first year. For all subsequent years, the RMD must be made by Dec. 31. So, for example, a taxpayer who turned 70½ in 2017 (born after June 30, 1946, and before July 1, 1947) and received the first RMD (for 2017) on April 1, 2018, must still receive a second RMD (for 2018) by Dec. 31, 2018.
Types of retirement plans requiring RMDs
The required distribution rules apply to owners of traditional, Simplified Employee Pension (SEP) and Savings Incentive Match Plans for Employees (SIMPLE) IRAs. Roth IRAs don’t require distributions while the original owner is alive. RMDs also apply to participants in various workplace retirement plans, including 401(k), 403(b) and 457(b) plans.
An IRA trustee must either report the amount of the RMD to the IRA owner or offer to calculate it for the owner. Often, the trustee shows the RMD amount on Form 5498 in Box 12b. For a 2018 RMD, this amount is on the 2017 Form 5498 normally issued to the owner during January 2018.
An IRA owner must calculate the RMD separately for each IRA they own, but can withdraw the total amount from one or more of the IRAs. However, RMDs required from workplace retirement plans (like 401(k), 403(b), and 457(b) plans) have to be taken separately from each of those plan accounts.
IRS online forms and publications can help
The RMD for 2018 is based on the taxpayer’s life expectancy on Dec. 31, 2018, and their account balance on Dec. 31, 2017. The trustee reports the year-end account value to the IRA owner on Form 5498 in Box 5. Use the online worksheets on IRS.gov or find worksheets and life expectancy tables to make this computation in the Appendices to Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).
For most taxpayers, the RMD is based on Table III (Uniform Lifetime Table) in IRS Publication 590-B. So, for a taxpayer who turned 72 in 2018, the required distribution would be based on a life expectancy of 25.6 years. A separate table, Table II, applies to a taxpayer whose spouse is more than 10 years younger and is the taxpayer’s only beneficiary.
Though the RMD rules are mandatory for all owners of traditional, SEP and SIMPLE IRAs and participants in workplace retirement plans, some people in workplace plans can wait longer to receive their RMDs. Usually, employees who are still working can, if their plan allows, wait until April 1 of the year after they retire to start receiving these distributions. See Tax on Excess Accumulations in Publication 575. Employees of public schools and certain tax-exempt organizations with 403(b) plan accruals before 1987 should check with their employer, plan administrator or provider to see how to treat these accruals.