The IRS reminds us with the issuance of IR-2025-129 that with the OBBBA act set to take effect Jan 1, 2025 new starting Jan 1, 2025 is the availability for taxpayers to deduct up to $10,000 of interest on new car loans (not leases) for passenger vehicle assembled in the US. The Department of the […]
Starting for the 2026 tax season for 2025 US income tax returns the IRS will offer first-time abatements (FTAs) to taxpayers who file their return late, provided they meet certain criteria, including having no unreversed penalties in the preceding three tax years, except estimated tax penalties. Without the need to reference the Statutory or Regulatory […]
The IRS explains in Tax Tip 2025-71 to parents of adopted children in 2025 that that finalized an adoption in 2025 or started the adoption process before 2025 the new more affordable Adoption Tax Credit options for international, domestic, private and public foster care adoptions, as a result of the OBBBA. Taxpayers who finalized an […]
The IRS reminds us with the issuance of IR-2025-114 that with the OBBBA Act set to take effect Jan 1, 2025 new starting Jan 1, 2025 is the availability for taxpayers to Avoid US income tax on Tip income on certain listed occupations only for the Tip Deduction and Overtime Income, through a deduction of […]
For U.S. citizens and residents with financial accounts overseas, compliance with the Report of Foreign Bank and Financial Accounts (FBAR) is a critical legal requirement. Each year, taxpayers must disclose foreign financial accounts if their total value crosses a specified threshold. Missing the FBAR filing deadline can result in significant penalties, ranging from monetary fines […]
The IRS reminds us with the issuance of IR-2025-92 that with the OBBBA Act set to take effect Jan 1, 2025 new starting Jan 1, 2025 is the availability for taxpayers to Avoid US income tax on Tip and Overtime income on certain listed occupations…the IRS now shares those Occupations. The Department of the Treasury […]
The IRS reminds us with Tax Tip 2025-47 that Ip PINs are a vital tool to protect taxpayers from scammers trying to steal their personal and financial information, how taxpayers can obtain their IP PIN. IRS identity protection PINs, or IP PINs, are a vital tool to protect taxpayers from fraudsters trying to steal personal […]
The IRS reminds us through Tax Tip 2025-42 of Hobby Loss deductibility restrictions, please keep these in mind when preparing your US income taxes!! Hobbies and businesses are treated differently when it comes to filing taxes. The biggest difference between the two is that businesses operate to make a profit while hobbies are for pleasure […]
The IRS explains in Tax Tip 2025-41 how getting married can affect your US income tax filings, from changing your name, addresses, changing your withholdings and adjusting your filing status. Summertime is common time for wedding bells to ring, and newlyweds can make their tax filing easier by doing a few things now. A taxpayer’s […]
IRS explains in Tax Tip 2025-40 as a homeowner what is deductible on Schedule A as an Itemized Deduction and what is not deductible. Owning a home costs money, but there are tax benefits available to help homeowners save on some of common costs of homeownership. Homeowners should review the tax deductions, programs and housing […]
The IRS reminds taxpayers that they can log into https://www.irs.gov/payments and pay their income tax they owe using a US bank accounts, the IRS EFTPS system, or debit or credit card and access their IRS account online. Having problems paying your income taxes, the IRS reminds taxpayers they can set up a Short-term payment […]
The IRS announces with IR-2025-51 for the 2025 tax season for those that missed the April 15, 2025 deadline to file their 2024 tax returns to file as soon as possible to avoid additional penalties and interest standard mileage rates for business, medical, moving and charitable purposes. The Internal Revenue Service encourages taxpayers who missed […]
An excellent article explaining the major differences between the Standard Deduction and Itemized Deduction (ID), and the individual components of the ID. You may wonder if you can claim itemized deductions on your tax return. Perhaps you made charitable contributions and were told in the past they couldn’t be claimed because you didn’t have enough […]
An excellent article regarding the ins and outs of saving for college and qualified higher education- including the College 529 CSP, Gifting implications, Coverdell Education Savings accounts (ESA’s), and the Education Tax Credits namely the American Opportunity Credit (AOTC) and Lifetime Learning Credit (LLC). Have you ever invested in a company only to see its […]
The IRS explains with Tax Tip 2025-02 that your filing status- single/ unmarried or married, is determined on 12/31 of each calendar year that applies to the entire calendar year, in addition to a few things taxpayers should do if their marital status changed. A taxpayer’s filing status generally depends on their being married or […]
A federal district court, finding that the Corporate Transparency Act (CTA) is likely unconstitutional, issued an order Tuesday (the injunction, which according to the court should apply nationally, was issued in Texas Top Cop Shop, Inc. vs. Garland, No. 4:24-CV-478 (E.D. Texas 12/3/24) prohibiting the enforcement of the CTA and the beneficial ownership information (BOI) […]
The IRS reminds us in IR—2024-289 individual retirement arrangement (IRA) owners age 70½ and older can make up to $108,000 in 2025 from $105,000 in 2024 in tax-free charitable donations during 2025/ 2024 through qualified charitable distributions (QCD’s). Also that for those age 73 or older, qualified charitable distributions (QCDs) also count toward the year’s […]
IRS Commissioner Danny Werfel announced effective immediately, the IRS will no longer automatically assess penalties on taxpayers who file Forms 3520, Part IV (reporting foreign gifts) after the filing deadline. In addition, by the end of the year, the IRS will expand that approach to the late filing of reports relating to foreign trusts (i.e., […]
The IRS reminds us in Tax Tip 2024-84 IR—23-100 what we can do in the 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! It may be important for victims of a disaster to reconstruct their tax and financial […]
The IRS reminds taxpayers that just because many states have legalized the sale of Marijuana, at the Federal level Marijuana still remains a Schedule I controlled substance and under IRC Sec 280E taxpayers may not claim any deductions or credits for any amounts paid or incurred in carrying on a Marijuana trade or business that […]
The IRS reminds us through Tax Tip 2024-55 of Hobby Loss deductibility restrictions, please keep these in mind when preparing your US income taxes!! Hobbies and businesses are treated differently when it comes to filing taxes. The biggest difference between the two is that businesses operate to make a profit while hobbies are for pleasure […]
In IRS Tax Tip 2024-41 the IRS reminds taxpayers of the different types of business structures they can choose when setting up a new business, the type of tax year and the business EIN number. The IRS knows that understanding and meeting tax obligations is vital to the success of all businesses, especially a new […]
In IRS Tax Tip 2024-38 the IRS reminds taxpayers when they should file an Amended US tax return- math errors, missing income or other types of mistakes or errors. When a taxpayer realizes that their federal tax return has a math error, missing income or other mistake, they should file an amended tax return. A […]
The IRS reminds taxpayers that they can log into https://www.irs.gov/payments and pay their income tax they owe using a US bank accounts, the IRS EFTPS system, or debit or credit card and access their IRS account online. Taxpayers have a variety of options to consider when paying federal taxes. Electronic payment options are the best way
Under the SECURE 2.0 Change for Higher-Income Participants, starting in 2024, participants in 401(k), 403(b) and 457(b) plans whose prior-year wage income exceeds $145,000 (adjusted annually for inflation) can only make catch-up contributions to a company-sponsored designated Roth account. However in Notice 2023-62, the IRS addresses these concerns by granting relief in the form of […]
A comprehensive discussion so you can evaluate whether a Health Savings Account is beneficial to You With the escalating cost of health care, many people are looking for a more cost-effective way to pay for it. For eligible individuals, a Health Savings Account (HSA) offers a tax-favorable way to set aside funds (or have an […]
This year, many Americans have been victimized by wildfires, severe storms, flooding, tornadoes and other disasters. No matter where you live, unexpected disasters may cause damage to your home or personal property. Before the Tax Cuts and Jobs Act (TCJA), eligible casualty loss victims could claim a deduction on their tax returns. But currently, there […]
In IRS FS 2024-11 the IRS discusses the differences between the Itemized Deduction and the Standard Deduction and the important details! A deduction reduces the amount of a taxpayer’s income that’s subject to tax, generally reducing the amount of tax the individual may have to pay. Most taxpayers now qualify for the standard deduction, but […]
The IRS explains In Tax Tip 2024-26 to parents of adopted children in 2023 they may qualify for the adoption credit. That the credit can be applied to international, domestic, private and public foster care adoptions. Taxpayers who adopted or started the adoption process in 2023 may qualify for the adoption credit. This credit can […]
The IRS reminds taxpayers in Tax Tip 2024-21 IR-2024-18 that they must check the box indicating whether they received digital asset as a reward, award or payment for property or services or disposed of any digital asset held as a capital asset through an exchange, sale or transfer. Taxpayers filing 2023 tax returns must check […]
The IRS announces with IR-2023-246 The IRS reminds taxpayers that are over 73 years of age that is born in 1951 must begin receiving payments from Individual Retirement Accounts (IRAs) and workplace retirement plans. The payments are called required minimum distributions (RMDs), even if they’re still working. Account holders reaching age 73 in 2024 must […]
Protax revisits IRC Sec 121- Exclusion of Gain on Sale of Principal Residences-.rules re the 5 year window, the use and ownership tests, the 2 year rule and that the home must be your Main Home. Many homeowners across the country have seen their home values increase in recent years. According to the National Association […]
Protax explains the deductibility of interest as related to Mortgage interest, Investment interest Business interest, Student loan interest and Personal interest. Interest rates rise and fall periodically, but the tax rules for deducting interest expenses remain the same — unless Congress changes them. Generally, the current rules have been in place for years, although the Tax
Protax explains the income phaseout ranges based upon filing status now that the student loan pause is coming to an end! The federal student loan “pause” is coming to an end on August 31 after more than three years. If you have student loan debt, you may wonder whether you can deduct the interest you […]
Protax explains that on August 25, 2023 the IRS postponed a mandate that was due to kick in starting in 2023 to 2026 for higher income tax earners making more than $145,000 that would have required their catch up contributions on 401(k)/ 403(b) and Thrift plans to be placed in after tax ROTH style IRA […]
Protax explains that if you are 50 or over that you can top off your IRA and 401(k)/ 403(b) thrift plans accordingly and how it benefits Protax’s taxpayer clients down the road. If you’re age 50 or older, you can probably make extra “catch-up” contributions to your tax-favored retirement account(s). It is worth the trouble? […]
The IRS reminds taxpayers with Tax Tip 2023-110 how they can help determine if a charity is legitimate. When disaster strikes, Americans can always be counted on to help. That help comes in countless ways, but often the easiest way to help is by donating money to charities. Sadly, criminals are just as likely to […]
The IRS in Tax Tip 2023-18 explains to taxpayers wanting to set up a business the different business structure types, how to choose a tax year end, obtain an EIN and set up employees Starting a new business can seem overwhelming for new entrepreneurs or even seasoned professionals. The IRS has resources to help new […]
The IRS explains to taxpayers in IR-2023-160 how to claim a 2023 and prospective Qualified Plug In Electric Vehicle Credit on Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles), that starting in tax years 2023 taxpayers will be able to also claim a credit for fuel cell and […]
IRS explains in Tax Tip 2023-81 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 […]
The IRS reminds us under Tax Tip 2023-74 that after filing your 2022 US income tax return taxpayers can receive anyone of four (4) different types of IRS Theft ID letters, requiring them to follow a certain set of instructions prior to their tax returns being processed. Scammers sometimes use stolen Social Security numbers to […]
The IRS reminds us in IR—23-100 what we can do in the 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! In recognition of National Hurricane Preparedness Week and National Wildfire Awareness month, the Internal Revenue Service is reminding […]
The IRS reminds us through Tax Tip 2023-61 of Hobby Loss deductibility restrictions, please keep these in mind when preparing your US income taxes!! Sometimes the line between having a hobby and running a business can be confusing, but knowing the difference is important because hobbies and businesses are treated differently when it’s time to […]
Huge news- The US Supreme Court on February 28, 2023 holds in a decision on Bittner, No. 21-1195 (U.S. 2/28/23)) vs. (Boyd, 991 F.3d 1077 (9th Cir. 2021)) that the $10,000 non willful FBAR Form 114 penalty is per report, not per account! The U.S. Supreme Court held Tuesday in a 5-4 decision that the […]
The IRS announced in IR-2023-22 on February 9, 2023 as a follow up from its June 23, 2022 announcement that we are now able to efile Amended Form 1040NR- U.S. Nonresident Alien Income Tax Return, that we can now also choose to direct deposit the refunds to speed them up! In the latest improvement for […]
The IRS explains In Tax Tip 2023-06 to parents of adopted children that taxpayers who adopted or started the adoption process during 2022 should review the rules around the adoption credit and the amount of the credit increases for qualified taxpayers. The adoption tax credit lets families who were in the adoption process during 2022 […]
In IRS Tax Tip 2023-03 the IRS discusses the differences between the Itemized Deduction and the Standard Deduction. One of the first decisions taxpayers must make when completing a tax return is whether to take the standard deduction or itemize their deductions. There are several factors that can influence a taxpayer’s choice, including changes to […]
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 they’re still working. Account holders reaching age 72 in 2022 must […]
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 matter how much people plan, unexpected events occur. Often, those events […]
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 Roth IRA regardless of income. This […]
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 Internal Revenue Service today reminds U.S. citizens, resident aliens and […]
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 include: housing, education, transportation, health, prevention and wellness, employment […]
“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-19 who failed to timely file a tax returns for tax years […]
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 filing statuses. When people go through a legal separation or […]
Terrific explanation on how workers and self employed persons can avoid a double Social Security obligation when either a US person lives and works outside the US and where a foreign national lives and works inside the US- Explanation of FICA taxes, Detached Employee Rules- Five Years or More or Less, in US 40 Quarters/ […]
Finally we will obtain clarity on the FBAR penalty found on FinCEN Form 114, under Code of Federal Regulations (CFR)- Internal Revenue Service to CFR Title 31- Money and Finance: Treasury and managed by FinCEN- the Federal Crimes Enforcement Network. The U.S. Supreme Court on Tuesday, June 21, 2022 agreed to hear the case of […]
The IRS announced Thursday, June 23, 2022 that we are now able to efile Amended Form 1040NR- U.S. Nonresident Alien Income Tax Return, however it will be some time before the software manufacturers catch up and implement these changes. Taxpayers are now able to file amended returns electronically in more of the Form 1040 series, […]
The IRS in Tax Tip 2022-18 explains who can claim a Dependent Child in cases of Separation, Divorce or parents Living Apart, Including the use of Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent. Parents who are divorced, separated, never married or live apart and who share custody of […]
In IRS Tax Tip 2022-103 don’t believe all those TV and Radio commercials from scam non licensed businesses promising to “…settle your tax debt for pennies on the dollar.” The IRS does not negotiate tax debt. Why CNN continues to sell them airtime is a mystery… As the old saying goes: When something sounds too […]
The IRS explains in Tax Tip 2022-76 how getting married can affect your US income tax filings, from changing your name, addresses, changing your withholdings and adjusting your filing status, in addition to how kids summer camp can affect the Child and Dependent Care Credit and working Part Time. Now that the April filing deadline […]
IRS reminds taxpayers in IR-2022-73 of the Form 114 FBAR, not to worry as these are generally extended beyond April or June 2022 all the way to October 17, 2022 without any extension required. The Internal Revenue Service today reminded U.S. citizens, resident aliens and any domestic legal entity that the deadline to file their […]
The IRS reminds us in IR-2022-70 that the Maximum Educator expense Deduction is $250 for tax year 201 and rises to $300 for tax year 2022, rising $50 per annum with inflation thereafter. This pertains to teachers from Kindergarten to 12th grade regarding their unreimbursed expenses- Books, Supplies, Materials, Equipment- computers/ software and Covid related […]
IRS reminds us in Tax Tip 2022-51 that the Tax year 2018 is about to fall off the table on April 18, 2022, 1.5 billion in unclaimed refunds are waiting…. The last date to file a claim for refund is the later of 3 years from the extended due date of the tax year filing […]
The IRS reminds us that the Child and Dependent Care Credit was expanded for the 2021 US tax year, for taxpayers with an Adjusted Gross Income of under $438,000, it is 8,000 per qualifying person up to 2 qualifying persons or $16,000, where a qualifying dependent is a dependent 12 years old or younger (age […]
In IRS Tax Tip 2022-38 the IRS does an excellent job at explaining and advising on the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). Higher education is important to many people and it’s often expensive. Whether it’s specialized job training or an advanced degree, there are a lot of costs associated […]
IRS reminds us that we have until April 18, 2022 of this 2021 tax year to make a $6,000 (with catchup for age 50 to $7,000) IRA contributions- Traditional or ROTH IRA for the 2020 tax year, don’t be late! The Internal Revenue Service reminds taxpayers they may be able to claim a deduction on […]
The Child and Dependent Care Credit may come into play for tax year 2021, the maximum eligible expense for this credit is $8,000 for one child and $16,000 for two or more for qualifying persons! Taxpayers who are paying someone to take care of their children or another member of household while they work, may […]
The IRS reminds us using Tax Tip 2022-22 that taxpayers receiving Social Security benefits may have to pay federal income tax on a portion of those benefits. Social Security benefits include monthly retirement, survivor and disability benefits. They don’t include supplemental security income payments, which aren’t taxable. Further the portion of benefits that are taxable […]
The IRS reminds us using Tax Tip 2022-13 that our filing status is determinate on December 31 of each tax year, and a description of each filing status! A taxpayer’s filing status tells the IRS about them and their tax situation. This is just one reason taxpayers should familiarize themselves with each option and know […]
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 expenses A […]
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 generally apply to digital asset transactions starting in 2023. Cryptocurrency exchanges […]
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 harassment. Some of this money is taxed by the federal […]
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’re thinking about […]
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 include: housing, education, transportation, health, prevention and wellness, […]
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 Emergency Management Agency (FEMA), these would include […]
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 for their retirement. These accounts can be set up with a bank or other […]
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 variety of tax responsibilities. The IRS […]
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 Service reminds business owners that it’s critical to correctly determine whether […]
An excellent expose on a US persons obligation to report their foreign asset holdings/ foreign accounts on FBAR Form 114, FATCA Form 8938, the variety of penalties imposed for failure to do so and the remedies available to fix these delinquent reporting requirements. EXECUTIVE SUMMARY Taxpayers generally have an obligation to report their foreign asset […]
The IRS explains in Tax Tip 2021-82 how getting married can affect your US income tax filings, from changing your name, addresses, changing your withholdings and adjusting your filing status. The arrival of summer is also the start of wedding season. Marriage changes many things and taxes is one of them. Newlyweds should know how […]
IRS reminds us that the Tax year 2017 is about to fall off the table on May 17, 2021, 1.3 billion in unclaimed refunds are waiting…. The last date to file a claim for refund is the later of 3 years from the extended due date of the tax year filing or 2 years after […]
In a similar finding to the district court in the matter of Bittner (DC TX 6/29/2020), the Court of Appeals for the Ninth Circuit on March 26, 2021 ruled that the IRS can impose only one non-willful penalty under 31 USC 5321(a)(5)(A) when an untimely, but accurate, Report of Foreign Bank and Financial Accounts (FBAR) […]
The Fourth Circuit affirmed penalties for a taxpayers failure to file Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR) were ‘willful’ despite there claim to be unaware of the requirement! The Court found them to be ‘objectively reckless’ ‘Willful’ FBAR penalties upheld Despite a couple’s ignorance of the FBAR
IRS reminds us that we have until April 15, 2021 of this 2020 tax year to make a $6,000 (with catchup for age 50 to $7,000) IRA contributions- Traditional or ROTH IRA for the 2019 tax year, don’t be late! The Internal Revenue Service notes that taxpayers of all ages may be able to claim […]
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(c) Currently, the Report of Foreign Bank and Financial Accounts (FBAR) regulations do not define a […]
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 will tell if the IRS and US Treasury agree
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 […]
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 an interest in real estate fails to satisfy […]
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 offset these costs. These credits reduce the amount of […]
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 effective August 17, 2020. Our software […]
IRS reminds us that the Tax year 2016 is about to fall off the table on July 15, 2020, 1.5 billion in unclaimed refunds are waiting…. The last date to file a claim for refund is the later of 3 years from the extended due date of the tax year filing or 2 years after […]
IRS reminds us that we have until July 15 of this 2020 tax year to make a $6,000 (with catchup for age 50 to $7,000) IRA contributions- Traditional or ROTH IRA for the 2019 tax year, don’t be late! The Internal Revenue Service today reminded people that contributions to traditional Individual Retirement Arrangements (IRAs) made […]
Finally…the IRS announces in IR-2020-107 that starting this summer of 2020 they will begin to allow for Amended efiling starting with the 2019 tax year only, a long awaited and overdue change that should dramatically speed up the processing times of filing amended tax returns hat have stretched anywhere from 6 months to up to […]
The case of the U.S. vs Brian Nelson Booker a Florida based CPA the first person criminally charged by the Department of Justice (DOJ) with allegedly making false statements in connection with the IRS’s Streamlined Domestic Offshore Program (SDOP), reminds us that filing a Streamlined submission under the SDOP requires a taxpayer to be non-willful […]
The IRS has issued Rev Proc 2020-17, 2020-12 IRB, that exempts from information reporting requirements certain tax-favored foreign trusts that are established and operated exclusively or almost exclusively to provide pension or retirement benefits, or to provide medical, disability, or educational benefits. The IRS has issued Rev Proc 2020-17, 2020-12 IRB, that exempts from information reporting
The IRS explains to parents of adopted children that taxpayers who adopted or started the adoption process during 2019 should review the rules around the adoption credit and the amount of the credit increases for qualified taxpayers, the rules remain the same. Taxpayers who adopted or started the adoption process during 2019 should review the […]
The IRS explains the Child Tax Credit (CTC) with phase out ranges STARTING at $400,00 for married filing joint filers. The IRS reminds us of what the parameters for claiming the CTC starting in January 1 of 2019. Taxpayers may be able to claim the child tax credit if they have a qualifying child under […]
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 believed to be facilitating money laundering and tax evasion […]
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 world. Taxpayers who work in the gig economy need to […]
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 tax filing season approaches, the […]
