Author Archives: c11723713

Office Operations as of April 1, 2020

In light of the recent executive order to shelter in place by Governor Northam, our office will be closed starting April 1, 2020 and continue through June 10, 2020 (unless new guidance is issued). We will be working remotely in order to complete any new or in process tax returns, bookkeeping, and payroll. Someone will be dropping by the office daily to collect the incoming mail, collect any documents that have been dropped off under our door, and to send outgoing mail. The best way to get in touch with us right now is via email. Our general office email is info@ewmooreaccounting.com. We are currently offering electronic delivery of your tax documents via our secure portal or mail delivery. We thank you for your patience and understanding as we continue to evolve our process to serve you, our employees, and our neighbors.

UPDATED COVID-19 RESPONSE

As we continue to learn more about COVID-19 and as the recommended precautions continue to evolve, we are finding ourselves in an unusual position.  Our core values and personal preferences are to meet with you and provide in-person service, however, we must take the advice from health organizations and those with whom the expertise lies.

We have decided to make the following changes to our previous position on return delivery and in-person visits to our office:

  • If you have already delivered your documents to us: Completed tax returns will only be handled by mail or electronic delivery. If you have already left your information with us for service, we will contact you once your return has been completed to determine your delivery preference.  Please know that these are not new processes for us.  We have provided these services to clients for several years with great success.
  • If you need to deliver your documents to us: We continue to highly recommend electronic or mail delivery of your tax documentation. For in-person drop off, see item three for detailed changes to this process.
    1. Electronic delivery– E W Moore & Company offers a secure client portal where documents can be exchanged.  With this option, you will be able to upload documents into a personal account we create for you.  Once your tax return is completed, we will upload your return along with related documents (efile authorization forms, payment vouchers, estimated payment vouchers, etc.) to that folder.  You will be able to download and print/save as needed.  If you would like to proceed electronically this year, please email your request to info@ewmooreaccounting.com.  You will receive communication on the next steps once that request has been received.
    2. Mail delivery– You are welcome to mail us your tax documents via your preferred carrier.  Once your return has been completed, we will mail your return along with any related documents (efile authorization forms, payment vouchers, estimated payment vouchers, original documents, etc.) back to you via USPS Priority mail at no additional cost to you.  Our mailing address is 9671 Sliding Hill Road, Suite 203, Ashland, VA 23005.
    3. For those who need to drop off their information and feel the only option is to visit our office, you will be asked to slide your information under the door. When dropping off, please make note of your preferred contact information and any notes that you need for us to know.

It is still vital to us that your questions be answered and to provide guidance as needed.  However, those discussions will now be done through scheduled phone calls. We will not be holding in-person meetings.  If you would like to schedule a phone meeting, please call Judy at 804-266-8846, ext. 2 or email info@ewmooreaccounting.com.

Service, Community and Presence are the words represented in our core values.  This request comes with such mixed emotions.  We value our opportunity to be present with you in-person each year.  However, it is also our responsibility to care for and support our community.

Covid-19 Response

We take our relationship with you, our clients, very seriously.  You are a valued member of our community.  It is in that vein and in accordance with our core values, that we must take steps to reduce the risk of exposure to COVID-19 for you and our staff.  Tax season brings the joy of seeing so many of you in person; however, it also significantly increases the amount of traffic to our office.  Therefore, we are highly recommending the following alternatives for the delivery of your tax documentation to us and receipt of your completed tax return.

  • Electronic delivery – E W Moore & Company offers a secure client portal where documents can be exchanged. With this option, you will be able to upload documents into a personal account we create for you.  Once your tax return is completed, we will upload your return along with related documents (efile authorization forms, payment vouchers, estimated payment vouchers, etc.) to that folder.  You will be able to download and print/save as needed.  If you would like to proceed electronically this year, please email your request to info@ewmooreaccounting.com.  You will receive communication on the next steps once that request has been received.

 

  • Mail delivery – You are welcome to mail us your tax documents via your preferred carrier. Once your return has been completed, we will mail your return along with any related documents (original documents, efile authorization forms, payment vouchers, estimated payment vouchers, etc.) back to you via USPS Priority mail.  Our mailing address is 9671 Sliding Hill Road, Suite 203, Ashland, VA 23005.

 

If you are uncomfortable with these options, we will continue to provide in-person service with steps taken to minimize risk to you and to our staff.

Service, Community, and Presence are the words represented in our core values.  This request comes with mixed emotions.  We value our opportunity to be present with you in-person each year.  However, it is also our responsibility to care for and support our community.

 

E W Moore & Company, Accounting & Tax Service Core Values

Service – Serving each other, our clients, and our neighbors to the best of our ability with warm professionalism

Community – Caring, supporting, and loving each other, our clients, and our neighbors

Presence – Respecting, listening, and engaging without distraction to each other, our clients, and our neighbors

Do you need a “paycheck checkup”?

The Tax Cuts and Jobs Act (TCJA) made significant changes that affect federal income tax withholding. The TCJA lowers the income tax rates, changes the tax brackets, increases the standard deduction, removes personal exemptions, increases the child tax credit, and limits or discontinues certain deductions.

These changes may have complicated your wage withholding situation. You might be over or under withholding taxes from your paycheck.

If any of the following apply to you for 2018, we highly recommend the paycheck checkup.

  • Have had withholding
  • Earned self-employment income
  • Saw a significant change in income
  • Experienced a major life event

For anyone who meets one or more of the criteria above, we will need the following information for the review.  You can upload these documents securely here, and we will contact you with our recommendations.

  • Pay stub (W-2, retirement accounts, pensions)
  • Income projection (if you are self-employed)

If you are not comfortable using the portal or have any questions, please feel free to contact our office at 804-266-8846.

Important information for the 2018 Tax Season

The IRS has announced that the tax filing season for tax year 2017 will open on January 29, 2018.  Although this means that they will begin accepting electronic and paper filed returns on that day, paper filed returns will not be processed until sometime in February.  This is one of numerous reasons why filing electronically is advantageous.  Taxpayers who electronically file their return will receive their refund faster than those who file on paper.  Tax season will end on April 17, 2018.

Any tax return that claims the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) will be delayed again this filing season.  As a requirement of the PATH Act, no refunds will be issued prior to February 15, 2018 to allow for review and verification of eligibility to claim these credits. The entire refund will be held, not just the amounts of the credits claimed.  With a normal turn around time of 10-21 days, the IRS expects the first refunds to be available on February 27th for returns claiming these credits.

The updated amounts for some common items are as follows:  the personal exemption amount remains the same at $4,050 per exemption; the standard deduction for filing status of single and married filing separately increases from $6,300 to $6,350; married filing jointly increases from $12,600 to $12,700 and head of household has increased from $9,300 to $9,350; the standard business mileage rate has dropped from $.54 per mile to $.535 per mile; the adoption credit has increased from $13,460 to $13,570.

These are just a few updates for the 2017 tax filing season.  Please contact your tax professional to discuss how these and other changes not listed could impact your tax return.  If you are looking for a tax professional, we would be honored to partner with you.  Our firm will work to maximize your credits and deductions therefore eliminating the stress of navigating the tax code on your own.

Tax Tips for Self-Employed Taxpayers

For more than 10% of the population, tax season arrives with the daunting task of accounting for their small business as a self-employed taxpayer.  What is and isn’t deductible is the source of much confusion.  Here are a few tips to help guide the self-employed.

One of the most commonly asked questions is “Can I take a home office deduction?”  You can deduct a portion of your home expenses if the space used for the home office is a dedicated work space for your business.  The IRS now allows a flat amount of $5 per square foot with a maximum of 300 square feet.  This is like the mileage rate in that you don’t have to keep actual expenses but you still must meet the exclusive use requirement.

Office supplies can be deducted such as pens, paper, post-it notes, highlighters, paper clips and so on but make sure you keep all receipts.  In addition to office supplies, you can deduct advertising and marketing expenses such as the costs associated with maintaining and hosting a website, business cards, letterhead and other marketing materials.

Another cost that is often overlooked is the cost of processing credit cards.  With the increasing use of mobile payments such as PayPal and Square, it is important you include the fees charged by these processors as a deduction.

Don’t overlook office furniture such as desks and chairs or equipment such as computers and printers.  You may have to depreciate some of these items instead of deducting the cost in the year purchased but they are still valuable deductions

Many self-employed taxpayers properly deduct the costs associated with contract labor but most fail to issue a form 1099-Misc.  Anytime you pay a contract worker more than $600 in a year, you should issue them a 1099-Misc.  Failure to do so could result in a significant fine.

There are many tax deductions for self-employed taxpayers.  There are also many apps and software packages to help you track your income and expenses.  Let us know if we can help ensure you are capturing all your deductions in an efficient and effective manner.

Delayed Refunds for Many 2016 Tax Returns

There are some important changes that will impact your individual income tax return for tax year 2016.  The changes range from refund delays, due diligence requirements and updated exemption and deduction amounts.

Any tax return that claims the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) will be delayed beginning with this filing season.  In prior years, these refunds were issued no differently than returns that were not claiming these credits.  As a requirement of the PATH Act, no refunds will be issued until February 15, 2017 to allow for review and verification of eligibility to claim these credits. The entire refund will be held, not just the amounts of the credits claimed.

The PATH Act has also increased the due diligence required of tax preparers to include the Child Tax Credit (CTC) and the American Opportunity Tax Credit (AOTC).  In the past, due diligence was only required on the EITC.  Form 8867 has been modified to include questions that will help determine the eligibility for all three of these credits.  Failure to comply with this new requirement will result in a penalty of $510 so there is added incentive for tax professionals to comply with the new requirement.

The updated amounts for some common items are as follows:  the personal exemption amount has increased from $4,000 to $4,050 per exemption; the standard deduction for filing status of single, married filing separately and married filing jointly remains unchanged but the amount for head of household has increased from $9,250 to $9,300; the standard business mileage rate has dropped from $.575 per mile to $.54 per mile; the adoption credit has increased from $13,400 to $13,460.

Some states are requiring additional identity verification on tax returns such as entering your driver’s license information.  While Virginia has not yet implemented this verification step, it is likely to occur in the near future so be prepared to provide this information to you tax preparer.

These are just a few items that are changing for the 2016 tax filing season.

Thank you, Lakeside!

Orchid

 

Lakeside will forever hold a place in my heart.  My dad, Earl W Moore, started this business 30 years ago in The Hub shopping center and we have called The Hub home ever since. In 2008, I stepped in to help run the business as Dad battled Leukemia. After he passed and I took over the business, I was full of confidence. How hard could it be? I had an accounting degree from the University of Richmond and 8 years of corporate management experience. Well, I am so thankful for a client base that was loyal, patient and forgiving of my growing pains as a business owner and tax professional. I can’t imagine another community being so gracious. Lakeside helped me develop into the professional I am today and I will be forever grateful to the clients and community of Lakeside.

What does that have to do with an orchid you might ask?  In 2013, my mom, Judy Moore, sold her house and my wife, Amanda and I adopted an orchid from her. While eating dinner with my family last week, I noticed the orchid was in full bloom. Amanda commented that it was the first time it had bloomed since being in our home.  So the first time this orchid blooms is right as I’m relocating the business?  That was a sign to me that Dad was right there with me, supporting me during this emotional time. I have plans to memorialize this orchid at the new location. I hope it will keep the spirit of Lakeside alive in the new space and make you smile the way it made me smile.

Farewell, Lakeside and thank you for the memories!

The next chapter

Exciting changes are taking place at E. W. Moore & Company, Inc.!  As a valued client, I want to take this opportunity to share our news with you.

For 30 years, my family has served you from the Hub Shopping Center on Lakeside Avenue, including 20 years in our present location.  With your loyalty, we have outgrown our current office and need more space to serve you more effectively.

On August 8th, we will be closing our current office and we will re-open on August 15th at our new office located at 9671 Sliding Hill Road, Suite 203, Ashland, VA 23005 in the Sliding Hill Professional Building.  Don’t let the Ashland location fool you.  We will only be ten minutes north of our present location and easily accessible by Interstate 95 (exit 86A – Atlee) as well as by U.S. Routes 1 and 301.

Our new location will give us the space we need to operate more efficiently as well as to provide you with private meeting spaces for discussing your tax and financial information.

Some other changes that were made this past year that you might not have been aware of include a redesigned website (www.ewmooreaccounting.com) and a secure client portal.  Our website is loaded with helpful information about our practice, posts about relevant tax topics on the blog, access to the secure client portal, and “Where is my refund?” status, just to name a few.

The client portal allows us to electronically and securely exchange documents with you as a matter of convenience.  If this is something that interests you, be sure to let us know so we can set you up to start using this feature.

I put a great deal of thought into picking a new location and I truly feel it is the best decision to better serve you.  I am truly excited to start this new chapter of the company.  Our telephone number (804-266-8846), fax (804-261-9274) and email (eric@ewmooreaccounting.com) will remain the same.

The comment I hear over and over again is how much you love the personal attention we give you and this will not be changing.  This is a very important asset to me as a business owner and it is as valuable to me as it is to you.  I will not lose sight of this benefit to our clients.

I look forward to seeing you at the new office!9671 Sliding Hill Road

Home Office Deduction

You’ve decided to start a small business working out of your home. Life is great and you can’t beat the commute. Now, how will this affect your income taxes? Can you deduct expenses for use of your home? The answer is that it depends…on a lot of things.

First of all, the business must be for profit or an expectation of profit. Next, you must set aside an area that is used exclusively for this business. Perhaps you’ve set up a room with a desk, computer, file cabinets, and storage for your product. Use the room entirely and exclusively for business purposes and it will be deductible. Beware, however, that as soon as you add a sofa bed in the corner for your in-laws to use when they come to visit, the space is no longer exclusive and you lose the deduction.

What is eligible for a deduction? This is where the math comes in. You must determine the total square footage of your home and the total square footage of the office. Example: Total house is 2000 square feet and the office area is 200 square feet. This will give you a 10% office usage equation. You will then be allowed to deduct 10% of your costs for the upkeep and maintenance of your home which includes insurance, taxes, mortgage interest (or rent), electricity, gas, and repairs for the entire house. Additionally, you can take specific fix-up and maintenance costs in full if they are solely for the business space.

Also available is a deduction for depreciation on the home. To determine this figure, use the cost of the house, less the value of the land, and depreciate this value over 39 years. When you sell the home, you must make an adjustment for the amount of the depreciation taken. This depreciation adjustment is recaptured on your tax return at the 25% tax rate.

Be sure you fully understand the home office deduction and subsequent depreciation recapture before using it. Rules for the home office deduction can be tricky; therefore, it is wise to get professional tax help from an enrolled agent, America’s tax expert.