Archive for the ‘Journals, Publications & More Information’ Category.
December 12, 2022, 10:00 am
The IRS announces with IR-2022-217 The IRS reminds taxpayers that are over 72 years of age that is born in 1950 must begin receiving payments from Individual Retirement Accounts (IRAs) and workplace retirement plans. The payments are called required minimum distributions (RMDs), even if th... Click here for more
October 24, 2022, 12:00 pm
The IRS provides a timely and excellent reminder in Tax Tip 2022-162 about important info for people to consider before they dip into their hard-earned retirement savings for hardship distributions, early withdrawals or loans. In addition to a reminder n Required Minimum Distributions.
No... Click here for more
October 23, 2022, 3:08 pm
Just a little reminder the Backdoor ROTH is not a certainty going forward, it lives to fight another tax year!
If your income exceeds the limits to contribute directly to a Roth IRA, you may have heard about the so-called 'Backdoor Roth IRA,' which allows traditional IRA conversions to ... Click here for more
October 16, 2022, 2:49 pm
IRS reminds taxpayers in IR-2022-174 of the Form 114 FBAR, that the extended October 17, 2022 deadline is approaching!
Filers affect by a natural disaster in Puerto Rico, Florida, North Carolina and South Carolina may have their FBAR due date further extended.
WASHINGTON – The Inte... Click here for more
September 6, 2022, 3:07 pm
IRS explains in Tax Tip 2022-78 the application of IRC Sec 121- Exclusion of Gain on Sale of a Principal Residence, $250,000 per spouse--keep in mind that the home must be your Main Home and you must BOTH Own and Live in it or use it for at ;least 2 years, 34 months or 730 days in the 5 ... Click here for more
September 5, 2022, 2:59 pm
The IRS reminds us that we can contribute for 2023 up to $16,000 to a ABLE (Achieving a Better Life Experience) account, including rollovers from the same beneficiaries 529 College Savings plan tax free, where qualified disability expenses (QDE) may be withdrawn tax free! QDE generally... Click here for more
September 4, 2022, 2:46 pm
The IRS reminds us through Tax Tip 2022-106 of Hobby Loss deductibility restrictions, please keep these in mind when preparing your US income taxes!!
From collecting stamps and woodworking to crafting and quilting, people have all kinds of hobbies – and most of these hobbies will ne... Click here for more
September 3, 2022, 2:39 pm
“Read all about it”---The IRS in IR-2022-155 re Notice 2022-36 takes the absolutely unprecedented step in providing automatic late filing penalty relief (5% penalty) to individuals and businesses for tax years 2019 and 2020 on a blanketed basis for all taxpayers affected by Covid-1... Click here for more
September 2, 2022, 4:17 pm
The IRS in Tax Tip 2022-92 explains some tax considerations for people who are separating or divorcing-- The tax treatment of alimony and separate maintenance payments and who can claim a Dependent Child in cases of Separation, Divorce or parents Living Apart, including the optional fi... Click here for more
December 29, 2021, 4:37 pm
What happens when you do not use up all your FSA?
Do you have a tax-saving flexible spending account (FSA) with your employer to help pay for health or dependent care expenses? As the end of 2021 nears, there are some rules and reminders to keep in mind.
An account for health e... Click here for more
December 29, 2021, 4:28 pm
Hip, hip hooray for regulation in the Cryptocurrency market, the guessing work and reliance on 3rd party software is finally gone.
The Infrastructure Investment and Jobs Act (IIJA) was signed into law on November 15, 2021. It includes new information reporting requirements that will gen... Click here for more
December 29, 2021, 4:22 pm
Have you ever wondered how damage awards and out of court settlements may be taxed by the IRS?!
Awards and settlements are routinely provided for a variety of reasons. For example, a person could receive compensatory and punitive damage payments for personal injury, discrimination or ha... Click here for more
December 29, 2021, 4:00 pm
Tax consequences to consider between the state you currently live in and the state you want to move to!
Are you considering a move to another state when you retire? Perhaps you want to relocate to an area where your loved ones live or where the weather is more pleasant. But while you’... Click here for more
December 28, 2021, 4:29 pm
The IRS reminds us that we can contribute for 2022 up to $15,000 to a ABLE (Achieving a Better Life Experience) account, including rollovers from the same beneficiaries 529 College Savings plan tax free, where qualified disability expenses (QDE) may be withdrawn tax free! QDE generally ... Click here for more
October 11, 2021, 1:10 pm
Notice- October 5, 2021- The Financial Crimes Enforcement Network (FinCEN) announced that victims of Ida and the CA wildfires and Tropical storm Fred have until December 31, 2021 to file their FBAR Form 114. FinCEN is offering this expanded relief to any area designated by the Federal E... Click here for more
September 24, 2021, 2:50 pm
The IRS provides an excellent breakdown on the different types of IRA’s, their uses and differences, the contributions and withdrawal features of each.
Individual Retirement Arrangements, or IRAs, provide tax incentives for people to make investments that can provide financial security ... Click here for more
September 24, 2021, 2:46 pm
The IRS explains with tax tip 2021-134 that when you start a business you have options as to the business structure, Sole proprietorship, Partnership, Corporation, S corporation and LLC. Also you can choose your year end, it does not have to be December 31.
Small business owners have a ... Click here for more
September 24, 2021, 2:34 pm
The IRS reminds us on the differences between employed individuals and self employed individuals, remember please consult the IRS’s Revenue Ruling 87-41 for the IRS’s 20 point analysis! This is a hotly audited IRS focused area!
During National Small Business Week, the Internal Revenue... Click here for more
January 14, 2021, 1:17 pm
FinCEN (Financial Crimes Enforcement Network) on December 31, 2020 advised filers that although accounts holding virtual currency are not currently considered a reportable account, it to pros=pose shortly changes that will require virtual currency accounts reportable under 31 CFR 1010.350(... Click here for more
August 30, 2020, 12:32 pm
The district court in the matter of Bittner (DC TX 6/29/2020), concluded that the penalty for a non-willful FBAR violation relates to each FBAR Form 114 not timely or properly filed rather than to each foreign financial account maintained but not timely or properly reported. Only time wil... Click here for more
August 27, 2020, 11:09 am
As we have warned in the past ITIN’s not used at least once every 3 years and 5 years after issuance now expire, the following applies to the 2020 tax year for returns filed in 2021. The later requirement will affect ITINs with middle digits of 88, 90, 91, 92, 94, 95, 96, 97, 98 or 99, i... Click here for more
August 25, 2020, 12:17 pm
On September 24, 2019 the IRS released IR-2019-158 containing Revenue Procedure 2019-38 that contained a safe harbor which would allow a rental activity to be treated as Qualified Business Income for the purposes of IRC Sec 199A. This Safe Harbor contains a 250 hour requirement, however If... Click here for more
August 23, 2020, 12:08 pm
The IRS does an excellent job at explaining and advising on the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).
Whether it’s online, in-person, part-time or full-time, higher education can be expensive. The good news is there are tax credits that can help ... Click here for more
August 22, 2020, 11:59 am
Major IRS milestone helps taxpayers correct tax returns with fewer errors, speeds processing
The IRS announces in IR-2020-182 as we reported on May 27, 2020 that the ability to for Amended efiling starting with the 2019 tax year only, is now a reality and is effective and in place effecti... Click here for more
February 17, 2020, 12:00 am
The IRS wants you to know that they have combined forces with the United Kingdom (UK), United States (US), Canada, Australia and the Netherlands to catch offshore tax evasion as a result of an international financial institution located in Central America, whose products and services are b... Click here for more
February 17, 2020, 12:00 am
The IRS explains how the Gig economy- (also called sharing economy or access economy—is activity where people earn income providing on-demand work, services or goods. Often, it’s through a digital platform like an app or website..) is taxed, so timely and relevant in today's changing w... Click here for more
February 17, 2020, 12:00 am
The IRS explains how the receipt of your tax season refund can be affected by many factors, including whether you efile or paper file, theft ID and whether you claim the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) do not expect your refund before mid-February.
As... Click here for more
November 30, 2019, 12:00 am
The IRS reminds us what we can do int eh event of a natural disaster to reconstruct our records, some tips to keep in mind when we may apply for federal assistance or insurance reimbursements!
After a natural disaster, taxpayers may need records to help them prove their disaster-related l... Click here for more
November 26, 2019, 12:00 am
What the IRS wants teachers from Kindergarten to 12th grade to know about unreimbursed expenses that they incur for the classroom.
Now that fall is here and school has started, many teachers are dipping into their own pockets to buy classroom supplies. Doing this throughout the year can a... Click here for more
November 20, 2019, 12:00 am
The IRS is aware that some taxpayers with virtual currency transactions may have failed to report income and pay the resulting tax or did not report their transactions properly. Therefore for the first time since 2014 the IRS has released two new pieces of guidance for taxpayers who enga... Click here for more
November 18, 2019, 12:00 am
Some excellent recourses available by the IRS when it comes to charitable giving! Is the charitable organization a legit US registered charity, how to fair value items, rules on deductibility, and non-cash donations.
Taxpayers who donate to a charity may be able to claim a deduction on ... Click here for more
November 14, 2019, 12:00 am
With the signing of the TCJA 2017 legislation on December 22, 2017 to become effective as at January 1, 2018 the Child Tax Credit (CTC) took on a whole new life. With new phase out ranges STARTING at $400,00 for married filing joint filers, it was not uncommon this past 2018 tax season t... Click here for more
November 11, 2019, 12:00 am
The Child and Dependent Care Credit may come into play when the Child Tax Credit does not, learn who qualifies, the maximum credit available, the type of care that qualifies, and the provider information required to claim the credit.
Taxpayers with dependents may qualify to claim a few di... Click here for more
November 8, 2019, 12:00 am
The IRS does an excellent job at comparing and contrasting the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).
There are two education credits that can help taxpayers with higher education costs: the American opportunity tax credit and the lifetime learnin... Click here for more
November 5, 2019, 12:00 am
If you pay for college in 2018, you may receive tax credits for education on your federal tax return. Even if you’re studying outside of the U.S. the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) may reduce the amount of tax you owe, but only the AOTC is... Click here for more
November 1, 2019, 12:00 am
With the passage of the 2017 TCJA legislation signed into law on December 22, 20917 we are reminded of the tax law changes related to alimony and separation payments as applicable to 2019 US tax filings. Beginning Jan. 1, 2019 alimony or separate maintenance payments are not deductible f... Click here for more
October 30, 2019, 12:00 am
As we warned you on July 25, 2019 at the end of 2019 (to file for 2019 tax returns in 2020) ITINs expire after not being used at least once in the last 3 tax years, as well as ITINs with middle digits of 83, 84, 85, 86 or 87 expire.
Taxpayers with expiring individual taxpayer identificat... Click here for more
September 27, 2019, 12:00 am
What the IRS wants taxpayers to know about filing mistakes on their tax returns. Taxpayers can fix mistakes or omissions on their tax return by filing an amended tax return. If you need to amend, the following tips should prove helpful to you.
Although the IRS often finds and corrects e... Click here for more
September 24, 2019, 12:00 am
In 2019, the United States and the French Republic memorialized through diplomatic communications an understanding that the French Contribution Sociale Generalisee (CSG) and Contribution au Remboursement de la Dette Sociate (CRDS) taxes are not social taxes covered by the Agreement on Soci... Click here for more
September 16, 2019, 12:00 am
As previously blogged back on March 22, 2019, Protax warned that under The Fixing America’s Surface Transportation Act (FAST Act), P.L. 114-94, adding Sec. 7345, which authorizes the IRS to certify to the secretary of State that when a taxpayer is seriously delinquent with his or her tax... Click here for more
September 12, 2019, 12:00 am
The IRS explains with tax tip 2019-116 that when you start a business you have options as to the business structure, Sole proprietorship, Partnership, Corporation, S corporation and LLC. Also you can choose your year end, it does not have to be December 31.
Starting a business can be ve... Click here for more
February 25, 2019, 12:00 am
The Tax Cuts and Jobs Act (TCJA), also called the 2018 tax reform, is the most drastic change to the Internal Revenue Code in over 30 years. When it comes to expats, most of the key changes brought on by TCJA have little or no effect given that the chief expat benefits like the foreign e... Click here for more
February 23, 2019, 12:00 am
IRS explained the changes to the Child Tax Credit that will now apply to many more US filers as a result of the TCJA 2017 legislation as it pertains to individuals filers.
Many people claim the child tax credit to help offset the cost of raising children. Tax reform legislation enacted l... Click here for more
February 18, 2019, 12:00 am
An excellent synopsis of the major TCJA 2017 legislation affecting Individuals for the upcoming 2018 (performed in 2019) tax season, as well as some expired adjustments that congress never extended. Terrific read.
Return preparers must be ready for how the Tax Cuts and Jobs Act has modifi... Click here for more
February 8, 2019, 12:00 am
The IRS announced that Tesla, Inc. has sold more than 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the third quarter of 2018. This triggers a phase out of the tax credit available for purchasers of new Tesla plug-in electric vehicles beginning Jan. 1... Click here for more
February 6, 2019, 12:00 am
As previously blogged back in February of 2018, Protax warned that under The Fixing America’s Surface Transportation Act (FAST Act), P.L. 114-94, adding Sec. 7345, which authorizes the IRS to certify to the secretary of State that a taxpayer is seriously delinquent with his or her taxes.... Click here for more
February 4, 2019, 12:00 am
IRS announces that as a result of the major legislative changes as a result of the TCJA of 2017 it is modifying the safe harbor test for the estimated tax penalty calculated on Form 2210 for any taxpayer who paid at least 85 percent (versus the current rule of 90%) of their total tax liabi... Click here for more
January 16, 2019, 12:00 am
While the TCJA of 2017 eliminated the Schedule A deduction for Foreign Real Estate taxes, Foreign Real Estate taxes form part of the Qualified Foreign Housing expenses that qualify for the Housing Exclusion if employed or Housing Deduction if self-employed? But you first need to qualify ... Click here for more
January 4, 2019, 12:00 am
How the TCJA 2017 act severely limited Itemized Deductions starting on January 1, 2018, while eliminating the phaseout entirely. Gone are unreimbursed employee expenses, investment expenses and personal casualty & theft losses unless the casualty is declared a federal disaster area b... Click here for more