Jun 24

June 2024

The month of June is here and almost half of the year is over in a blink of an eye. We have been receiving some phone calls where the Internal Revenue Service (IRS) has  been taking too long to process their tax returns, even with the same filing status, dependents, credits and tax situation is the same prior year.  This year the IRS seems to be taking longer to review the tax returns.  When you check the IRS website for the status on your tax return, it may be showing it was received and in process.  Usually, your tax refund will not take longer than 21 days.  However, it may take longer due to you claiming Head of Household, Child Tax, Education, and/or Other Dependent Care Credits.  Nowadays, some people with tax returns are experiencing a longer time.  When this occurs, the IRS should send correspondence to you reflecting they are working on your taxes and should be resolved in no longer than 60 days.  Last week though, I received a call from someone who got a second letter reflecting their tax return should be resolved within an additional 60 days. If your tax circumstances are similar, you may contact The Taxpayer Advocate Service (TAS), an independent organization within the IRS, that helps taxpayers and protects taxpayers' rights.  They can offer help when tax problems seem to drag on forever.  The taxpayer should contact TAS after they have tried and have been unable to resolve their issue with the IRS, or a taxpayer believes an IRS system, process, or procedure just isn't working as it should.  Additionally, all taxpayers qualify for this assistance, which is always free.  TAS will do everything possible to help them.  Now some good news from the Florida Department of Revenue, effective June 1, 2024, the state sales tax rate imposed under section 212.031, Florida Statutes (F.S.), on the total rent charged for renting, leasing, letting, or granting a license to use real property (also known as “commercial rentals”) is reduced from 4.5% to 2.0%. Some examples of real property rentals, include rentals of commercial office or retail space, warehouses, and self-storage units or mini-warehouses.  The total rent charged includes all consideration due and payable by the tenant for the privilege or right to use or occupy the real property.  The local option discretionary sales surtax imposed by the county where the real property is located continues to apply to the total rent charged. Sales tax is due at the rate in effect during the time the tenant occupies or is entitled to occupy the real property, regardless of when the rent is paid.  Rental charges paid on or after June 1, 2024, for rental periods of December 1, 2023, through May 31, 2024, are subject to 4.5% state sales tax, plus any applicable discretionary sales surtax. Rental payments made prior to June 1, 2024, that entitle the tenant to occupy the real property on or after June 1, 2024, are subject to 2.0% state sales tax, plus any applicable discretionary sales surtax.  It is important to clarify that the reduced state sales tax rate on commercial rentals does not apply to the state sales tax rate on rentals or leases of living, sleeping, or housekeeping accommodations for six months or less (also known as “transient rentals”), parking or storage spaces for motor vehicles in parking lots or garages, docking or storage spaces for boats in boat docks or marinas, or tie-down or storage space for aircraft at airports.  More good tax stuff next month.  Remember, this is a very brief overview.  It is your responsibility to discuss any tax and financial changes with your professional advisor for assistance in evaluating your situation.  For details and specific assistance in applying the general information in this article, call us at your earliest convenience or contact your tax advisor.   Provided by Pedro L. Baldeon, E.A., (321) 632-5726, a member of the National Society of Tax Professionals.