This Quarter’s Topics 

• Christian School Consultant

   

• IRS Penalties

   

• Sign in Blue Ink

   

• Housing Allowance

   

CHRISTIAN SCHOOL CONSULTANT

We have added a new service to help Christian Schools.  See the following link for more information:  Christian School Consultant

IRS PENALTIES

We have noticed that the IRS appears to be penalizing anyone who owed $1,000 or more when they filed their tax return.  In the past the IRS might penalize a few taxpayers for neglecting to pay the quarterly estimated payments but now they appear to be penalizing everyone.  Just a reminder:  If you will owe $1,000 or more when you file, you cannot wait to pay with the tax return.  You are required to make quarterly estimated payments to pre-pay your taxes.  For more information see:  IRS Form 1040ES

A note about penalties:  The IRS will waive a penalty if you have never asked before.  You can call or write and ask for your penalties to be waived.

SIGN IN BLUE INK

Many of you have received your signed tax returns back from the IRS with a note that an original signature is needed.  We would recommend you sign in blue ink so it is obvious that it is an original signature and not a photo copy.

HOUSING ALLOWANCE

By about this time each year you want to make sure your designated housing allowance is high enough.  You can amend your housing allowance as frequently as needed throughout the year.  The only issue is that housing allowance is never retroactive.  You cannot designate past wages as housing, and you cannot claim expenses that you paid in the past if they exceeded the designated amount at that time.

Sincerely in Christ,

James W. Rickard

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