The IRS recently released its 2024 Data Book, offering a detailed look at federal tax activity. It covers everything from collections and audits to refunds and compliance enforcement. In short, it highlights how the IRS is operating post-pandemic—and what that means for taxpayers like you.

According to the IRS Newsroom summary, enforcement activity has ramped up sharply in 2024. For example, the number of tax liens, levies, and investigations has climbed across the board. As a result, individuals and businesses should take IRS letters and notices more seriously than ever before.

Key IRS Enforcement Increases in 2024

• Delinquent Return Investigations: Increased from 59,964 in 2023 to 639,143 in 2024.
• New Delinquent Accounts: Jumped from 7.7 million to 9.6 million.
• Federal Tax Liens Filed: Rose from 179,019 to 196,996.
• Levies on 3rd Parties: Up from 286,270 to 313,792.

Offers in Compromise: Approval Is Now Much Tougher

Offers in Compromise (OICs) give taxpayers the chance to settle their debt for less than they owe. However, in 2024, those chances have dropped significantly. In fact, the acceptance rate has been cut in half. Furthermore, the average accepted dollar amount is down.

• 2023: 30,163 offers submitted — 12,711 accepted (42%).
• 2024: 33,591 submitted — only 7,199 accepted (21%).
• Average Accepted Offer: Fell from $214,480 to $163,383.

If you’re thinking about an OIC, visit the IRS Offer in Compromise page to understand the criteria before applying.

Installment Agreements Are the IRS’s New Favorite Tool

Instead of focusing only on settlements, the IRS is using installment agreements to collect more unpaid taxes. As a result, millions of taxpayers are now in long-term payment plans. This allows the IRS to recover revenue more steadily over time.

• Installment Agreements Created: Rose from 2.7 million to 3.4 million.
• Amount Collected: Increased from $14.3 billion to $16.1 billion.

What This Means for You

• If you haven’t filed back taxes, the risk of enforcement is growing.
• If you owe the IRS, installment plans are now more common—and more enforceable.
• If you’re considering a settlement, prepare thoroughly. The IRS is being more selective.

Looking Ahead: The IRS in 2025

The IRS is leveraging artificial intelligence (AI) to identify cases for collection and audit. In addition, fewer staff are available to answer taxpayer questions. This means taxpayers may experience both increased scrutiny and slower response times. Therefore, planning ahead is more important than ever.

Need Help Dealing With the IRS?

Have you received a notice or owe back taxes? You don’t have to handle it alone. Contact us today for a confidential consultation and personalized tax help.

The post IRS Tax Compliance Trends 2024: What Taxpayers Need to Know first appeared on Accounting & Tax Professionals, PLC.

If you’ve found yourself thinking, “What if I just skip it this year?” — take a deep breath and keep reading. We’re here to walk you through what really happens when you don’t file your taxes… and how to fix it if you’re already behind.

First Things First: Yes, It Matters

Let’s get this out of the way: ignoring your tax obligations doesn’t make them disappear. While the IRS isn’t going to send someone to your door the next day, skipping your tax filing can trigger a snowball of penalties, interest, and long-term headaches that are a lot more painful than just sitting down and filing.

What If You’re Owed a Refund?

If the IRS owes you money, you won’t face penalties for filing late — but don’t celebrate just yet. You only have three years to claim your refund. After that, your money officially becomes a donation to the U.S. Treasury. (Not exactly the feel-good ending you want.)

What If You Owe the IRS?

This is where things get serious. Missing the filing deadline when you owe money starts a chain reaction:

• You’ll get hit with a failure-to-file penalty, which is 5% of what you owe every month, up to 25%.
  
• The IRS will start sending notices — and no, ignoring them doesn’t make them stop.
  
• If you still don’t respond, they might file a substitute return for you. Sounds helpful, but it usually means you’ll owe more since it won’t include any deductions or credits you’re actually eligible for.
  
• From there, the IRS can place liens on property, garnish your wages, levy your bank accounts, or even revoke your passport.
  

Criminal charges? That’s extremely rare and usually only happens in cases of fraud or deliberate evasion. But let’s avoid going down that road altogether, yeah?

I’m Behind. Now What?

First off, don’t panic. The best thing you can do is file your past-due returns ASAP. Even if you can’t pay right away, filing stops the steepest penalties and shows you’re making an effort.

Here’s your game plan:

• File your taxes — even if it’s late.
  
• Consult a tax professional (hey, that’s us) to make sure you’re not missing out on credits or deductions.
  
• Set up a payment plan if needed. The IRS offers options like monthly installments or even Offers in Compromise to settle for less.
  
• Facing financial hardship? You may qualify for “Currently Not Collectible” status.
  

The key is acting now. Waiting only makes things worse — and more expensive.

Let’s Make It Easy

At Des Moines Tax, we help clients every day who are feeling overwhelmed, behind, or unsure where to start. Whether you need to file a return, resolve a tax debt, or just get some questions answered, we’re here to help.

Call us at (515) 986-5843 to get started today.
Check out more tips and advice right here on our blog.

The sooner you act, the more options you have — and the less stress you’ll carry into the rest of 2025.

The post What Happens If You Don’t File Your Taxes? (And What to Do If You’re Behind) first appeared on Accounting & Tax Professionals, PLC.

This move, aligned with the Corporate Transparency Act (CTA), marks a pivotal shift in the regulatory landscape for businesses across the nation.

Key Highlights of the New Rule:

Reporting Companies

• Domestic entities previously classified as reporting companies are now exempt.
• Foreign entities registered to do business in the U.S. must continue to file BOI reports.

Beneficial Owners

• U.S. persons are no longer required to provide BOI.
• Reporting companies are exempt from reporting BOI of any U.S. person.
• Only non-resident alien beneficial owners are subject to reporting.

BOI Report Deadlines

• Entities that became reporting companies before the rule’s publication have 30 days from the publication date to file.
• Entities becoming reporting companies on or after the publication date have 30 calendar days from:
  • The date of actual notice of registration, or
  • The date a public notice is made by a secretary of state or tribal office.

Updated and corrected reports must still be filed within 30 days, as previously required.

What This Means for Your Business

This regulatory relaxation is poised to reduce compliance burdens for countless domestic businesses—freeing up time and resources to focus on what truly matters: growth, operations, and profitability.

At Accounting & Tax Professionals, PLC, we stay ahead of the curve so you don’t have to. Our team is dedicated to keeping you informed and ensuring your business stays compliant with all federal and state regulations.

Whether you’re:

• Unsure if this rule change applies to you,
• Needing help with past filings, or
• Looking to optimize your business structure—

We’ve got you covered.

Let’s Talk

For personalized guidance on how this new rule may impact your business, feel free to:

Visit us:
270 W 1st St, Grimes, IA 50111

Call us:
(515) 986-5843

Or simply head to desmoinestax.com to get started.

Let’s navigate these changes together and keep your business on the path to success.

This blog post is for informational purposes only and does not constitute legal or financial advice. Please consult with a professional advisor before making any business decisions.

The post BOI Reporting Requirements: A Game-Changer for Domestic Companies and U.S. Persons first appeared on Accounting & Tax Professionals, PLC.

It’s that time of year again—when W-2s and 1099s magically appear in your mailbox and the thought of “filing taxes” starts creeping into your daily to-do list. But don’t worry—this doesn’t have to be a nail-biter. With a little early prep and a few pro tips, you can breeze through tax season like a boss.

Here are our top tips to help you get ahead of the 2025 tax season:

1. Gather Your Documents Early

Don’t be that person digging through old shoeboxes the night before your appointment. Start collecting:

• W-2s, 1099s, and any other income statements
• Mortgage interest and property tax statements
• Charitable donation receipts
• Business or freelance income/expenses

Tip: Create a simple “Tax 2025” folder—digital or physical—so you can toss items in as they come in.

2. Know What’s New This Year

Tax laws change more often than Iowa weather. That’s why we stay updated so you don’t have to.

A few things to keep an eye on this year:

• Adjustments to standard deductions
• Updates to child tax credits
• Retirement contribution changes (We’ll walk you through all of this when we meet.)

3. Book Your Appointment Early

Just like a good table at your favorite restaurant, our appointment slots go fast—especially in February and March. Lock in your time now so you can enjoy peace of mind (and maybe even a refund) sooner.

4. Avoid Common Pitfalls

We see it every year:

• Forgetting to report all income
• Missing deductions (especially for freelancers and small business owners)
• Overlooking healthcare and HSA documents

Let us double-check everything so you don’t leave money on the table.

5. Ask Questions—That’s What We’re Here For

Taxes can be complicated, but that’s why we’re here. Whether you’re confused about deductions or just unsure what to bring—we’re just a phone call away.

Call us at (515) 986-5843 with questions or to schedule your appointment.
Check out more tax tips and updates right here on our blog.

Let’s make this the year tax season doesn’t get the best of you.

The post Title: 2025 Tax Season Readiness: Tips to Stay Ahead and Stress-Free first appeared on Accounting & Tax Professionals, PLC.

The post 2024 Holiday Season Update first appeared on Accounting & Tax Professionals, PLC.

Now, what can you do to maximize your tax refunds? One option is to hire a professional tax advisor at Accounting & Tax Professionals, PLC, to help you with your taxes. Not everyone can do much about the refund shock, but that’s where our expert tax preparation services can make a difference. Our team of skilled professionals can help you maximize your tax deductions and credits to ensure you get the biggest refund possible. Don’t settle for a small tax refund – let us help you get the most out of your taxes.

Child Tax Credit

Back in 2021, the Child Tax Credit (CTC) reached $3,600 per child under 6 and $3,000 for children aged from 6 to 17. Now in 2022, it has reverted back to its pre-pandemic rate of $2,000 regardless of the child’s age. 

Charitable Tax Donation

The CARES Act allowed taxpayers in 2020 and 2021 to deduct $300 from charity donations for unmarried individuals and $600 for married couples. Unfortunately, this wasn’t renewed in 2022 so taxpayers need to itemize to get an extra deduction on their donation. However, only 9 percent of taxpayers who itemize can reduce their charitable donations.

If you are in the 91 percent of taxpayers who didn’t itemize and/or used the standard deduction rate, we provide accounting services in Des Moines, IA, to benefit from every tax credit available even if they’re not as much as the previous year. 

Child and Dependent Care Tax Credit

The American Rescue Plan increased the tax credit to $8,000 per family during the pandemic to help parents with childcare expenses. Now, this has also reverted back to its pre-pandemic rate. Parents of two or more children can receive 35% of the $6,000 grant. The maximum credit a parent can receive this year is $2,100, parents with one child can only receive a little over $1,000.

Earned Income Tax Credit

This tax credit is for workers with low to moderate income, but unfortunately, it’s also among the others that are back to their previous rate. In 2021, workers with low incomes without children were able to receive a credit of up to $1,500. In 2022, they can now only receive up to $560.

However, low-income parents who are qualified for the EITC can receive a higher credit in 2022. The amount they receive adjusts annually for inflation. In 2021, parents of two receive $5,980 of credit, and in 2022, they receive an amount of $6,164.
Always look for ways to maximize your tax refund, especially today with inflation. There have been many IRS changes in the past year that have taken place. For professional accounting services in Des Moines, IA, give us a call at 515-986-5843 to book an appointment

The post Taxpayers Might Experience “Refund Shock” first appeared on Accounting & Tax Professionals, PLC.

The IRS is making it easier to take these precautions by making Identity Protection PINs available to all taxpayers in the United States. Look through this blog to learn more about securing your IP PIN. You will not only protect yourself from these undesirable tax issues, but you will also help your family and friends to protect themselves.

What is IRS IP PIN? 

The Internal Revenue Service (IRS) Identity Protection Personal Identification Number (IP PIN) is a six-digit number provided by the IRS that adds an extra layer of personal identity security. This is to prevent anyone else from using your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) from being used fraudulently on a tax return. It is intended to make it more difficult for tax evaders to file false tax returns.

The IP PIN is currently used on Forms 1040, 1040-NR, 1040-PR, 1040-SR, and 1040-SS. Each IP PIN expires after a year, and you must sign up for a new IP PIN to use when filing that year’s income tax returns. It is important to remember your pin when you visit us for your income tax preparation in Des Moines, IA. 

How To Get Your IP PIN

The IP PIN program is voluntary, and you will not be assigned one. Here are the steps you can take to obtain your own IP PIN. 

1. Create an IRS Account – If you don’t already have an account, create one on the IRS website. Here is the information you’ll need to open an IRS account. 

• Personal information such as full name, phone number, birthday, and address 
• Active email address to which the IRS can send emails.
• Individual Tax Identification Number (ITIN) or Social Security Number (SSN) (ITIN)
• A digital copy of your most recent tax returns’ filing status.
• Financial account numbers such as a mortgage, student loan, auto loan, or line of credit.

2. “Get an IP PIN” – After creating an account, use this button on the IRS website to register. Keep in mind that this includes a thorough identity verification process before approval. Once approved, you will be given an IP PIN that is good for a year. 

3. Other Way To Apply – If you are unsuccessfully registered through the online tool, you can also apply through mail, fax, or in person. You will need an SSN or ITIN, access to a phone, and an adjusted income of $72,000 or less to apply by fax or mail. If you meet these requirements, you may fax or mail Form 15227 to the IRS. The IRS will then contact you to begin the registration process.

To apply in person, you must schedule an appointment with the Taxpayer Assistance Center. You must provide one picture identification document and one additional identification document. You will receive your IP PIN three weeks after your identity has been verified.

What If You Forget Your IP PIN

If you forget your IP PIN, you can re-register on the IRS website and use the same tool you used when you first registered. If you are unable to access the tool, you may contact their support team to have your IP PIN reissued. 

Obtaining an IP PIN takes only a few minutes but provides you with all-year protection against fraudulent tax returns. Prevention is always preferable to experiencing fraud and regretting it later. However, if you find yourself in this unfortunate situation and need IRS representation in Des Moines, IA, never hesitate to contact Accounting & Tax Professionals, PLC. We will walk you through the entire process and will never leave you to face your problem alone.

Call us at (515) 986-5843 or come to our office at 270 W 1st St Suite K, Grimes, IA to speak with one of our dependable and experienced tax attorneys. We look forward to hearing from you!

The post IRS: Securing Your IP PIN first appeared on Accounting & Tax Professionals, PLC.

Due to the ongoing COVID-19 pandemic, the tax filing deadline has been extended until May 17. That means there’s still time for you to file if you haven’t already!

And to get the ball rolling, give our office a call and we’ll provide a free checklist of documents and information that you should bring to a meeting with our tax pros.

For the Go-Getters

If you’ve already filed, way to go! Don’t forget that Accounting & Tax Professionals also handles IRS resolutions, so if you get any hassle from the IRS in coming weeks, give us a call before you take any action! We can represent you in audits, help you seek relief, and more.

And as always, even after tax season is over, we provide business and payroll services, financial planning, bookkeeping and a variety of other accounting services.

It’s never too early to start planning for next year, so if you got hammered on taxes this time, start the conversation with us right away to make sure you’re of on the right foot for 2021!

The post still time to File! first appeared on Accounting & Tax Professionals, PLC.

Inside This Issue

1.  Payment Deadline Extended to July 15, 2020

The Treasury Department and the Internal Revenue Service are providing special payment relief to individuals and businesses in response to the COVID-19 Outbreak. The filing deadline for tax returns remains April 15, 2020. The IRS urges taxpayers who are owed a refund to file as quickly as possible. For those who can’t file by the April 15, 2020 deadline, the IRS reminds individual taxpayers that everyone is eligible to request a six-month extension to file their return.

This payment relief includes:

Individuals: Income tax payment deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment relief applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates. IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief.

Corporations: For C Corporations, income tax payment deadlines are being automatically extended until July 15, 2020, for up to $10 million of their 2019 tax due.

This relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020.

Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. If you file your tax return or request an extension of time to file by April 15, 2020, you will automatically avoid interest and penalties on the taxes paid by July 15.

The IRS reminds individual taxpayers the easiest and fastest way to request a filing extension is to electronically file Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses must file Form 7004.

This relief only applies to federal income tax (including tax on self-employment income) payments otherwise due April 15, 2020, not state tax payments or deposits or payments of any other type of federal tax. Taxpayers also will need to file income tax returns in 42 states plus the District of Columbia. State filing and payment deadlines vary and are not always the same as the federal filing deadline. The IRS urges taxpayers to check with their state tax agencies for those details. More information is available at https://www.taxadmin.org/state-tax-agencies.

The post Covid-19 | IRS Payment Deadline Extension Details first appeared on Accounting & Tax Professionals, PLC.

Adjust withholdings

There are certain times at which it makes sense to adjust your withholdings, even if you’re not doing so primarily with tax savings in mind. Examples include if you have a baby, purchase a house or get married—these are all scenarios that can have an effect on your taxes.

What you’ll need to do is ask your employer for a new W-4 that you can fill out and submit to update your withholdings. Beyond the scenarios mentioned above, you might also opt to do this if you finished the previous tax season with a lot of money still owed to the government. That’s a sign that your withholding was too low. Conversely, if you received an especially large refund but were struggling from month to month or paycheck to paycheck, you might have had your withholding set too high. Either way, you are able to make the adjustment, and the start of the year is the best time to do that.

Improve your financial organization

One of the best ways you can set yourself up for strong long-term financial health is to keep yourself informed and organized. The methods of organization you use are up to you, but you should keep good track of your income and expenses, your travel mileage (particularly for business purposes) and contributions to various accounts and investments. Make sure you keep receipts for all major purchases and for charitable contributions.

Plan to contribute more to your retirement accounts

Whenever possible, contribute the maximum amount of money to your retirement accounts. Not only will this set you up for a better financial future long after you’re done working, but it will also help you maximize the tax benefits associated with contributions to these accounts.

The manner in which you contribute to these accounts depends on the kind of account you have. A 401(k) is funded with pre-tax dollars, so this is money you’ll never actually see enter your bank account. A Roth IRA, however, is funded with post-tax dollars, so you’ll need to plan to make those contributions yourself each month. You can set up automatic transfers from your bank account to your Roth IRA account, if you so choose.

For more information about preparing your taxes for 2020 in Des Moines, IA for an easier time in the coming year, it’s best to consult with a qualified tax preparation service. Reach out to Accounting & Tax Professionals, PLC today. We will be happy to answer any questions you have, and look forward to assisting you in meeting your personal financial goals for 2020 and beyond!

The post Tax Saving Ideas for 2020 first appeared on Accounting & Tax Professionals, PLC.