Serving clients nationwide for over 30 years
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October Newsletter

October Tidbits

 IRS Issues a Resumption Statement

On October 17th, the IRS started reopening phone lines and Taxpayer Assistance Centers, both of which will take time to ramp up to normal operating status. In addition, other business operations have started resuming, such as: the processing of billions of dollars of refunds for individuals and businesses and honoring transcript and authorization requests from third parties.

Given the high demand for services, the IRS is encouraging taxpayers to wait to call or visit, if their issue is not urgent. They recommend using automated applications on the IRS website,, whenever possible. Taxpayers who need immediate assistance are encouraged to visit Taxpayer Assistance Centers in their area but should be aware there will be delays. In their statement, the IRS said “In the days ahead, we will continue assessing the effect of this unprecedented situation on IRS operations, and we will do everything we can to resume our normal operations as quickly as possible so that we can best serve the needs of the American taxpayer. We greatly appreciate the patience of taxpayers and tax professionals during this period.”

Although the IRS continued as many automated processes during the shutdown as possible, including accepting returns and processing payments, refunds were not issued while the IRS was closed.

Fax machines related to Automated Underreporter (AUR), Automated Collection System (ACS), Centralized Authorization File (Power of Attorney) as well as others are now back on line. For those people who submitted information and received a confirmation via their fax machine that the IRS received the transmission during the shutdown, there is no need to resubmit the material.

Recently, the IRS has begun processing tax returns received since Oct. 1, along with related refunds. They have also begun to respond to paper correspondence, transcript requests and authorization forms received during the shutdown from third parties. Due to the backlog of inventory, you should expect initial delays as the IRS resumes full operations.


Give Your Withholdings and Payments a Check-up

Some people are surprised to learn they’re due a large federal income tax refund and others are horrified that they owe more taxes than they expected. Now can be the time to help avoid a tax surprise when you file your 2013 tax return next year.

Below are some tips to help you bring the tax you pay during the year closer to what you’ll actually owe.

Wages and Income Tax Withholding

  • New Job.   Your employer will ask you to complete a Form W-4, Employee’s Withholding Allowance Certificate. Take the time to complete it accurately to figure the amount of federal income tax to withhold from your paychecks. Do not hesitate to call our office with any questions.
  • Life Event.  Be sure to update your Form W-4 when certain life events take place. For example, a change in marital status, the birth of a child, getting or losing a job, or purchasing a home. These can all change the amount of taxes you owe.

Self-Employment and Other Income

  • Estimated tax. Income from self-employment, interest, dividends, alimony, rent and gains from the sale of assets are examples of income that is not subject to withholding.  Therefore, you may also need to pay estimated tax if the amount of income tax withheld from your wages, pension or other income is not enough. If you think you might owe a thousand dollars or more in taxes and meet other conditions, you may need to make estimated tax payments.
  • Form 1040-ES.  Contact our office if you think you might need to file Form 1040-ES, Estimated Tax for Individuals, and we can provide them for you. If you received them in your tax package, please make sure you have been making your payments.
  • Change in Estimated Tax.  As mentioned above, some life events or financial changes may affect your future estimated tax payments. Changes in your income, adjustments, deductions, credits or exemptions may make it necessary for you to refigure your estimated tax during the year.
  • Additional Medicare Tax.  On January 1, 2013 a new Additional Medicare Tax went into effect. Additional Medicare Tax of 0.9 percent applies to an individual’s wages, Railroad Retirement Tax Act compensation and self-employment income that exceeds a threshold amount based on the individual’s filing status. Additional information can be found on the IRS website or by contacting our office.
  • Net Investment Income Tax.  A new Net Investment Income Tax went into effect on Jan. 1, 2013. The 3.8 percent Net Investment Income Tax applies to individuals, estates and trusts that have certain investment income above certain threshold amounts.

Contact Info

Comolli & Company, P.C.
45 Stiles Road, Unit 208
Salem, NH 03079
Phone: (603) 898-3322
Fax: (603) 898-6322