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Tax Reform If you've been following the news out of Washington, you probably know that tax reform is a real possibility. Here are some of the tax provisions on the table for final passage: Changes for Individuals and Families Effective for Tax Year 2018 Lower tax rates – Lowers tax rates and sets the rates at 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The current tax rates are: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. Child Tax Credit – Increases in the Child Tax Credit to $2,000 from $1,000 and expands the refundable tax portion of the Child Tax Credit from $1,100 to $1,400. Standard deduction – Almost doubles the standard deduction (from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for married couples), lowering taxable income for those who claim the standard deduction. Alternative Minimum Tax – Increases the exemption amount from the Alternative Minimum Tax. Personal exemptions – Eliminates the personal and dependent exemptions per taxpayer and dependent, which is presently $4,150 each. Eliminates the individual mandate penalty – Eliminates the penalty for individuals failing to maintain minimum essential health care coverage. Earned Income Tax Credit – Maintains the Earned Income Tax Credit for low to middle-income wage earners which can be up to over $6,000 credit for a family with three kids. Changes to State and Local Sales Tax and Mortgage Interest Rate State income tax, sales and local tax deduction, and property taxes – Taxpayers who are able to itemize their tax deductions can choose to deduct the state income tax deduction, sales and local tax deduction (up to $10,000), or the property tax deduction. Mortgage interest – Homeowners with a new mortgage on a first or second home can deduct home mortgage interest based on home mortgage acquisition indebtedness of up to $750,000 instead of $1,000,000 per previous years. The Tax Cut and Jobs Act also lowers the corporate tax rate to 21% effective January 1, 2018. At this point, no one knows the exact day of passage, but we are closely monitoring progress and will give you important updates as they occur.

Year-End Tax Planning for 2017 for Individuals Just as the daylight hours are getting shorter, so is the time for fine tuning any last-minute strategies to lower your 2017 tax bill. Often, the correct steps to take will depend on whether you see your income going up or down next year. For the first time in decades, tax reform is a real possibility. For 2017, current law provides seven tax rates depending on your income. The following are some of the items we should review when discussing year-end tax planning options that may be relevant to your situation. Retirement Plans Considerations Fully funding your company 401(k) with pre-tax dollars will reduce current year taxes, as well as increase your retirement nest egg. For 2017, the maximum 401(k) contribution you can make with pre-tax earnings is $18,000. For taxpayers 50 or older, that amount increases to $24,000. If you have a SIMPLE 401(k), the maximum pre-tax contribution for 2017 is $12,500. That amount increases to $15,500 for taxpayers age 50 or older. If certain requirements are met, contributions to an individual retirement account (IRA) may be deductible. For taxpayers under 50, the maximum contribution amount for 2017 is $5,500. For taxpayers 50 or older but less than age 70 1/2, the maximum contribution amount is $6,500. Penalty for Failing to Carry Health Insurance Despite numerous attempts by Congress to repeal Obamacare, the law is still with us and so is the penalty for not having health insurance coverage. You may be liable for this penalty if you or any of your dependents didn't have health insurance for any month in 2017. The penalty is 2.5 percent of your 2017 household income exceeding the filing threshold or $695 per adult, whichever is higher, and $347.50 per uninsured dependent under 18, up to $2,085 total per family. However, you may be eligible for an exemption from the penalty if certain conditions apply. There is a provision in the Senate Bill that would repeal the penalty for not having health insurance coverage, effective for tax years beginning after 2018. Reporting Healthcare Coverage According to the IRS, if your tax return does not indicate whether or not you and your family had healthcare coverage during the year, your return will not be processed. This is the first year that the IRS is refusing to process returns if this information is omitted from the return. Foreign Bank Account Reporting The IRS has been actively pursuing individual who fail to report their holdings in foreign accounts. If you have an interest in a foreign bank account, it must be disclosed; failure to do so carries stiff penalties. You must file a Report of Foreign Bank and Financial Accounts (FBAR) if: (1) you are a U.S. resident or a person doing business in the United States; (2) you had one or more financial accounts that exceeded $10,000 during the calendar year; (3) the financial account was in a foreign country; and (4) you had a financial interest in the account or signatory or other authority over the foreign financial account. If you are unclear about the requirements or think they could possibly apply to you, please let me know. The deadline for filing a FBAR is April 15. However, a six-month extension is available. If you are abroad, the due date is automatically extended until June 15, with an additional four-month extension available until October 15. Flex Spending Accounts Generally, you will lose any amounts remaining in a health flexible spending account at the end of the year unless your employer allows you to use the account until March 15, 2018, in which case you'll have until then. You should check with your employer to see if they give employees the optional grace period to March 15.

Year-End Tax Planning for 2017 for Businesses If you've been following the news out of Washington, you probably know that corporate tax reform is a real possibility. It's likely that the bill will be sent to the President to sign into law by year's end. Most of the changes would not take effect until next year, and many of the details are still up in the air. The following are some year-end strategies we should review with respect to your business. Section 179 Expensing and Bonus Depreciation If you are looking to reduce your business's taxable income, two of the biggest deductions from which your business may benefit are the Code Sec. 179 expense deduction and bonus depreciation. For 2017, the maximum amount of qualifying property that your business can expense is $510,000. That amount is reduced one-for-one to the extent qualifying property purchased during the year exceeds $2,030,000. Vehicle-Related Deductions and Substantiation of Deductions Expenses relating to business vehicles can add up to major deductions. If your business could use a large passenger vehicle, consider purchasing a sport utility vehicle weighing more than 6,000 pounds. Vehicles under that weight limit are considered listed property and deductions are more limited. However, if the vehicle is more than 6,000 pounds, up to $25,000 of the cost of the vehicle can be immediately expensed. Since the IRS tends to focus on vehicle expenses in an audit and disallow them if they are not property substantiated, you should ensure that the following are part of your business's tax records with respect to each vehicle used in the business: (1) the amount of each separate expense with respect to the vehicle (e.g., the cost of purchase or lease, the cost of repairs and maintenance); (2) the amount of mileage for each business or investment use and the total miles for the tax period; (3) the date of the expenditure; and (4) the business purpose for the expenditure. The following are considered adequate for substantiating such expenses: (1) records such as a notebook, diary, log, statement of expense, or trip sheets; and (2) documentary evidence such as receipts, canceled checks, bills, or similar evidence. Records are considered adequate to substantiate the element of a vehicle expense only if they are prepared or maintained in such a manner that each recording of an element of the expense is made at or near the time the expense is incurred. Retirement Plans and Other Fringe Benefits Benefits are very attractive to employees. If you haven't done so already, you may want to consider using benefits rather than higher wages to attract employees. While your business is not required to have a retirement plan, there are many advantages to having one. By starting a retirement savings plan, you not only help your employees save for the future, you can also use such a plan to attract and retain qualified employees. By offering a retirement plan, you also generate tax savings to your business because employer contributions are deductible and the assets in the retirement plan grow tax free. Additionally, a tax credit is available to certain small employers for the costs of starting a retirement plan. Please let me know if this is an option you would like to discuss further. S Corporation Shareholder Salaries For any business operating as an S corporation, it's important to ensure that shareholders involved in running the business are paid an amount that is commensurate with their workload. The IRS scrutinizes S corporations which distribute profits instead of paying compensation subject to employment taxes. Failing to pay arm's length salaries can lead not only to tax deficiencies, but penalties and interest on those deficiencies as well. The key to establishing reasonable compensation is being able to show that the compensation paid for the type of work an owner-employee does for the S corporation is similar to what other corporations would pay for similar work. If you are in this situation, we need to document the factors that support the salary you are being paid.

Merry Christmas, Happy Hanukkah, Happy Kwanza, and Happy New Year! from Wilson Accounting & Tax Services The office will be closed in observance for the holidays Dec 25, 2017, re-opening on Jan 2, 2018. May your holidays be filled with love, laughter, and fun.

Wednesday October 18, 2017 @ 6:30pm Pompey Park - 1101 NW 2nd St, Delray Beach, FL 33444 Registration is required. Please register on www.wats.biz/seminar This event is free and open to the public. Hosted by WATS CPA and the South Palm Beach County Chapter of Delta Sigma Theta Sorority, Inc.

Our office will be closed through Tuesday September 12, 2017. Hurricane Irma Comcast opens Xfinity Wi-Fi hotspots across Florida during Hurricane Irma http://www.wptv.com/news/state/comcast-opens-xfinity-wi-fi-hotspots-across-florida-during-hurricane-irma Zello App It's a free push-to-talk app. If you would like to connect, my Zello username is AudraRussell16. Click http://i.zello.com/WNBBMV to accept my invitation. Keep in mind this app works only through you network provider or Wi-fi CodeRED The City of Delray Beach utilizes CodeRED to provide critical info to residents, businesses and visitors during emergency extreme weather events, such as Hurricane Irma. Click the "sign up" button below to receive voice calls, text messages and emails with important updates. CodeRED is a free service. #StaySafeDelrayBeach http://bit.ly/2gHFLWh More Resources Florida Division of Emergency Management The Florida Division of Emergency Management has a plethora of information relating to Hurricane Irma. Please click on the link below for more information http://www.floridadisaster.org/index.asp Safety Tips for Hurricane Irma Here is a cute list of tips I found on Facebook A few hurricane 💨🌪💨tricks for those who may need it: 1. Start running your ice makers now and bagging the ice in freezer bags. Fill as much space in between your freezer items as you can.❄️❄️ 2. Freeze regular tap water for pets, cleaning or drinking in tupperware-type containers. REMEMBER to leave a small bit of space between the top of the water & the lids so the ice expands but doesn't crack the container.💦💧 3. Start using up your perishables to make more room for ice in the freezer. 4. Fill up all vehicles & check tires & oil.⛽️⛽️🚗🚙 5. Cash from ATM, at least enough to get you through tolls and gas out of town. Call your bank if you plan on leaving the state so they don't freeze your card for out-of-area "suspicious" transactions.🏦💰 6. All important docs screenshot & send to your email. Take originals in sealed bags or plastic bins.🖥💻 7. Pet & livestock food & supplies. Vet records in case you need to shelter then at a storm-safe facility.🐶🐱🐰🐯🐸🐷 8. Evacuation plans and share with family members so they know where you're headed.🗣👨‍👨‍👧‍👧 9. Consider putting heirlooms & photos in plastic bins in a high place, second floor, or safe room if you don't plan on taking them with you.🗃🗄 10. SECURE ALL FIREARMS & AMMUNITION PROPERLY.💣 11. Old rags & beach towels on your windowsills. Even with the best windows & shutters, water seeping from the wind pressure happens. A few damp towels is better than soaked drywall or floors!🏚🏠 12. Shutter windows and doors and bring everything outside into your garage or house NOW. 🏚🏚Do not wait until the day before. Better to get done early and relax than wait until its too late, ESPECIALLY IF YOU ARE MANDATORY PERSONNEL (hospital employee or first responder). 13. If you don't already have your hurricane supplies, you might want to get them now. Shelves are already empty in most places.🍏🍎🍌🍐💧💧 Feel free to copy & paste! Let's share this post & spread the word! Be Safe and God Bless, WATS CPA - Your Financial Family ---------------------------------------------- Are you a current client? If so, I would love your feedback! Please take a few minutes to complete this short survey and/or leave a Google rating review for your experience with WATS CPA. Thank you in advance. Survey: https://www.surveymonkey.com/r/CMR5DKL Review: https://search.google.com/local/writereview?placeid=ChIJtReAmnLg2IgRPiXOZf9ya54

Our office will be closed on Friday, June 30th, 2017, reopening on Wednesday, July 5th, 2017 Happy Independence Day IRS Warns of New Phone Scam Involving Bogus Certified Letters; Reminds People to Remain Vigilant Against Scams, Schemes this Summer: The Internal Revenue Service today warned people to beware of a new scam linked to the Electronic Federal Tax Payment System (EFTPS), where fraudsters call to demand an immediate tax payment through a prepaid debit card. This scam is being reported across the country, so taxpayers should be alert to the details. In the latest twist, the scammer claims to be from the IRS and tells the victim about two certified letters purportedly sent to the taxpayer in the mail but returned as undeliverable. The scam artist then threatens arrest if a payment is not made through a prepaid debit card. The scammer also tells the victim that the card is linked to the EFTPS system when, in fact, it is entirely controlled by the scammer. The victim is also warned not to contact their tax preparer, an attorney or their local IRS office until after the tax payment is made. The IRS (and its authorized private collection agencies) will never: Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes. All tax payments should only be made payable to the U.S. Treasury and checks should never be made payable to third parties. Do not give out any information. Hang up immediately. Contact the Treasury Inspector General for Tax Administration to report the call. Use their IRS Impersonation Scam Reporting web page. Alternatively, call 800-366-4484. The IRS does not use email, text messages or social media to discuss personal tax issues, such as those involving bills or refunds. For more information, visit the “Tax Scams and Consumer Alerts” page on IRS.gov.

Happy Memorial Day Our office will be closed on Monday May 29th 2017, opening back up on Monday June 12th 2017

Join me at the Arts Garage on May 16 from 5pm - 8pm for the Delray Business Expo, their signature annual trade show and networking event. The event is FREE and open to the public. Learn more online. Delray Business Expo 2017 is FREE and open to the public Check out Tech3 Design's 3D printer! Sample Saltwater Brewery Beers! Sample Jimmy John's sandwiches! Sample Anthony's Coal Fired Pizza, Meatballs & Wings Vendors already signed up: Allied GC,LLC Aqua Unique LLC AVDA Bevilaqua Law Group Bogani & Robes Caloosa Water Wear CenterState Bank Conde Chiropractic Center Craft Food Tours Delray Beach Arts Garage Delray Beach Chamber of Commerce Delray Business Network Group Delray Preserve Luxury Apartments Deluxe Properties European Wax Exhibits, Etc Floridian Community Bank Fusion Chiropractic Spa Harvest Seasonal Grill & Wine Bar Home Angels Jimmy John's Kaniuk Law Office Lynn University Money Mailer Nostalgic America Magazine Porcaro Law Power Stretch Studios Delray Reach Local Saltwater Brewery Shore Chiropractic Signarama SK Quality Roofing T Mobile Tech 3 Design Two Men & A Truck Wayside House, Inc Wilson Acctg & Tax Services You Always Have Us Home Care

Estate Planning: Wills, Trusts, Power of Attorneys Monday, May 8, 2017 @ 6:30PM Pompey Park 1101 NW 2nd Street, Delray Beach, FL 33444 Registration is required. WWW.wats.biz/seminar This event is free and open to the public. Presented by: The Swinton Group at Morgan Stanley Wealth Management Hosted by: WATS CPA and The South Palm Beach County Alumnae Chapter of Delta Sigma Theta Sorority, Inc.

Estate Planning: Wills, Trusts, Power of Attorneys Monday, May 8, 2017 @ 6:30PM Pompey Park 1101 NW 2nd Street, Delray Beach, FL 33444 Registration is required. WWW.wats.biz/seminar This event is free and open to the public. Presented by: The Swinton Group at Morgan Stanley Wealth Management Hosted by: WATS CPA and The South Palm Beach County Alumnae Chapter of Delta Sigma Theta Sorority, Inc.

On 3/24/2017 Republicans withdrew their plan to repeal and replace Obamacare. In doing so, the Affordable Care Act remains the law of the land. What does this mean for individuals and employers? According to the IRS "legislative provisions of the ACA law are still in force until changed by the Congress, and taxpayers remain required to follow the law and pay what they may owe‎." You still have to buy insurance The individual mandate remains in effect. This mean those who are uninsured could be assessed a penalty, unless they qualify for an exemption. Employers still have to provide affordable coverage Companies with 50 or more employees must continue offering affordable coverage to their employees or risk having to pay penalties.