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 […]
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 add up fast. Fortunately, eligible educators may […]
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 engage in transactions involving virtual currency, Revenue […]
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 their tax return. These deductions basically reduce the […]
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 to see […]
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 different tax credits. One of these is […]
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 learning credit. There are several differences and some similarities between them. Taxpayers […]
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 partially refundable. With […]
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 from the income of the payer spouse […]
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 […]
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 errors during processing, there are […]
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 Social Security between the two countries and are therefore eligible as income taxes for […]
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 taxes (seriously delinquent tax debt (SDTD)), the State […]
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 very rewarding. It can also be […]
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 by the President, the SALT deduction is limited to $10,000 ($5,000 if married filing […]
What happens when your CPA gets hacked, and your data is compromised, what the IRS Mandates we must do as professional CPA’s to protect the general public and your data. Contact the IRS and law enforcement, contact the states in which you prepare returns, contact experts and contact clients and other services. The filing season […]
Please remember 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! Nearly 2 million Individual Taxpayer Identification Numbers (ITINs) are set […]
FinCEN makes it clear that regulations (31 C.F.R. §1010.350(c)) do not define virtual currency held in an offshore account as a type of reportable FBAR Form 114 account. Tax practitioners and taxpayers alike have long grappled with whether virtual currency, aka cryptocurrency, is reportable for purposes of FinCEN Form 114, Report of Foreign Bank and Financial
When you start collecting Social Security can have a significant impact on the monthly benefit you receive, the moral of the story is although you can start collecting at age 62 the longer you wait until Full Retirement Age (FRA) (anywhere from age 65-67) up to age 70 due to the Delayed Retirement Credit (DRC) […]
The IRS reminds taxpayers who is eligible for a home office deduction, the types of expenses they may claim and the methods available to claim home office deductions. Small business owners may qualify for a home office deduction that will help them save money on their taxes, and benefit their bottom line. Taxpayers can take […]
What the IRS wants taxpayers to know about filing mistakes on their tax return. 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. Taxpayers who discover an error after filing may need to amend their […]
The IRS re-introduces us to IRS Form 8300 required to be filed for all cash transactions in excess of $10,000 that occur in a trade or business. Federal law requires a person to report cash transactions of more than $10,000 to the IRS. Here are some facts about reporting these payments. Who’s covered For purposes […]
IRS reminds taxpayers of the Form 114 FBAR, Form 8938 Statement of Specified Foreign Financial Asset filing deadlines, not to worry as these are generally extended beyond April or June 2019 all the way to October 15, 2019. Also of mention is the now defunct OVDP program and Streamlined. The Internal Revenue Service today reminded […]
The IRS reminds taxpayers what happens in the event they decide to raid their retirement plans—early withdrawals may be taxable or non taxable and subject to penalty. Taxpayers may need to take money out of their individual retirement account or retirement plan early. However, this can trigger an additional tax on top of other income […]
The IRS reminds us that since taxpayers can no longer claim personal exemptions for dependents on their tax returns, other reasons why we may want to claim dependents. As they are preparing their 2018 tax returns, taxpayers should remember that personal exemptions are suspended for 2018. Taxpayers can’t claim a personal exemption for anyone on […]
On February 12, 2019 we reported that the IRS announced that Tesla, Inc. had sold more than 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the third quarter of 2018.This triggered a phase out of the tax credit available for purchasers of new Tesla plug-in electric vehicles beginning Jan. 1, 2019, […]
Federal Appeals overturns a 2017 Federal District court decision (launched by 700,000 in a class action suit, mainly non licensed nonprofessional tax outfits) that the IRS had no authority to charge a fee to tax preparers to obtain a PTIN. The case centered around that “… the assessment must relate to a specific benefit conferred […]
The IRS reminds taxpayers that, in most cases, Monday, April 1, 2019, is the date by which persons who turned age 70½ during 2018 must begin receiving payments from Individual Retirement Accounts (IRAs) and workplace retirement plans. The payments are called required minimum distributions (RMDs). The Internal Revenue Service today reminded taxpayers that, in most […]
The IRS warns taxpayers to be alert to tax time phone scams where aggressive criminals pose as IRS agents in hopes of stealing money or personal information. Phone scams or “vishing” (voice phishing) continue to pose a major threat. IRS YouTube Videos: Tax Scams – English | Spanish | ASL Dirty Dozen – English | […]
The IRS explains how its database is linked to that of the US Social Security Administration and what you have to do if you change your name! When someone legally changes their name, there are tax consequences they need to know about., especially at tax time. People change their names for several reasons: Taking their […]
As previously blogged back in February of 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 a taxpayer is seriously delinquent with his or her taxes. The State Department can then deny, revoke, or […]
The TCJA 2017 legislation and how it affects US expats, how to qualify for the exclusions, State tax laws when moving overseas and how to let the IRS know! Whether you are moving abroad to study, travel, put up a business, or work, one of the many things you should not forget to do is […]
IRS explains the Individual Retirement Account (IRA) different types, their purpose, deductibility, taxability, rollovers and when you are required to withdraw funds called a Requirement Minimum Distribution or RMD. Individual Retirement Arrangements – better known simply as IRAs – are accounts into which someone can deposit money to provide financial security when they retire. A […]
IRS explains how the December 22, 2017 TCJA 2017 dropped the backup withholding tax rate from 28% to 24%, backup withholding occurs when the payer does not have the taxpayers correct ITIN or SSN, or fail to certify that they are not subject to backup withholding. The IRS urges taxpayers who make payments or receive […]
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 earned
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 last year made changes […]
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 modified many common features of individual and business returns. […]
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, 2019, making the purchase or a Tesla […]
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. The State Department can then deny, revoke, or […]
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 liability […]
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 under IRC Sec 911. While the cap on the […]
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 by the President, the SALT deduction is limited to $10,000, Mortgage interest limited to […]
One of the significant changes that the TCJA 2017 brought to bear on December 22, 2017 was that is changed on what property a Like Kind 1031 Exchanges qualify. The Internal Revenue Service today reminded taxpayers that like-kind exchange tax treatment is now generally limited to exchanges of real property. The Tax Cuts and Jobs […]
Though time has run out for taxpayers to make a complete disclosure and avail themselves of the program benefits of the Offshore Voluntary Compliance Program (OVDP) for Willful taxpayers as of September 28,. 2018, taxpayers can still voluntarily reveal their offshore assets and in the case where they are not willful the Streamlined program that […]
56,000 taxpayers later amounting to 11.1 billion dollars the Offshore Voluntary Compliance Program (OVDP) for Willful taxpayers who have not reported all of their income, and or FBARs Form 114 and/ or FFA on Form 8938 has come to an end on September 28, 2018. Have no worry the Streamlined program for non-Willful taxpayers that […]
US Expats with non US corporations, hold your hats…..The TCJA of 2017 imposed not only a one time “deemed repatriation tax” or ‘transition tax’ of 15.5% on untaxed foreign earnings or business profits accumulated overseas from 1986- 12/31/17 held in cash or cash-equivalents and 8% for profits held in non-cash form, but also starting for […]
US Expats with non US corporations, hold your hats…..The TCJA of 2017 imposed a one time “deemed repatriation tax” or ‘transition tax’ of 15.5% on untaxed foreign earnings or business profits accumulated overseas from 1986- 12/31/17 held in cash or cash-equivalents and 8% for profits held in non-cash form, whether or not the funds had […]
Tax year 2014 is about to fall off the table – 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 the tax was paid. Unclaimed federal income tax refunds totaling about $1.1 billion may be […]
FinCEN clarifies that, in line with the due dates for federal income tax returns, (normally April 15 this year but April 15 falls on a Sunday and April 16 is Emancipation Day in DC) for the 2017 tax season the FBAR Form 114 is due on April 17. Additionally, there is an automatic extension available […]
Congress and the Senate does it to taxpayers and CPA’s again, with the Bipartisan Budget Act after tax season is well under way, the 2017 tax forms released and finalized – three benefits were renewed on February 22, 2018! The Internal Revenue Service today said that it is ready to process tax year 2017 returns […]
Just when you thought that the recent The Tax Cuts and Jobs Act of 2017 prevented claiming home equity line of credit (HELOC) interest, think again! The Internal Revenue Service today advised taxpayers that in many cases they can continue to deduct interest paid on home equity loans. Responding to many questions received from taxpayers […]
Shame on the IRS. Court rules that whether the individual willfully failed to submit an accurate FBAR was an inherently factual question that could not be resolved by summary judgment, since this deals with intent of the taxpayer. The IRS was not entitled to summary judgment on the issue of a taxpayer’s willful failure to […]
The national Taxpayer Advocate Nina Olson to the rescue – Ms. Olson issues Taxpayer Assistant Orders TAO’s for almost 800 taxpayers whose cases were with the Taxpayer Advocate Services office that Ms. Olson oversees as the National Taxpayer Advocate. On January 16, 2018 July 24, 2017, April 1 , 2016 and December 14, 2015 Protax […]
On January 16, 2018 the IRS further warned that Travelers Requiring Passports to Pay Their Back Taxes or Enter into Payment Agreements; People Owing $51,000 or More Covered. This month, the IRS will begin implementation of new procedures affecting individuals with “seriously delinquent tax debts.” On December 14, 2015 and then again on April 1, […]
Please remember at the end of 2017 (to file for 2017 tax returns in 2018) ITINs expire after not being used for 3 tax years, as well as ITINs with middle digits of 70, 71, 72 or 80! ITINs that have middle digits of 78 or 79 expired on December 31, 2016. Taxpayers with an […]
Beware U.S. Expats! On December 14, 2015 and then again on April 1, 2016 we reported that under The Fixing America’s Surface Transportation Act (FAST Act), P.L. 114-94, was added Sec. 7345, which authorizes the IRS to certify to the secretary of State that a taxpayer is seriously delinquent with his or her taxes. The […]
Did you know that you can use the foreign tax credit on qualified dividends but that you need to calculate the amount of foreign tax credit that the taxpayer can offset against his U.S. tax liability? Foreign-source qualified dividends may require certain adjustments to those amounts before you can take them into consideration as foreign-source […]
Every tax year the IRS reminds us of our Rights as Taxpayers. Please keep these in mind as we navigate together the slippery slope of dealing with the IRS! Get to Know Your Taxpayer Bill of Rights Every taxpayer has rights. The Taxpayer Bill of Rights takes these rights from the tax code and groups […]
H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 will significantly alter the taxation of individuals starting for tax year 2018. We have outlined the differences between current law and the conference report. This table compares the predominate changes made by the […]
H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 capped the State and local taxes deduction (affectionately known as SALT) : for individuals to deduct up to $10,000 ($5,000 for married taxpayers filing separately). The big question is will 2018 State and […]
H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 capped the State and local taxes deduction (affectionately known as SALT) : for individuals to deduct up to $10,000 ($5,000 for married taxpayers filing separately). The big question is will 2018 State and […]
H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 capped the State and local taxes deduction (affectionately known as SALT) : for individuals to deduct up to $10,000 ($5,000 for married taxpayers filing separately). The big question is will 2018 State and […]
H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 will significantly alter the taxation of individuals starting for tax year 2018. The following article represents an excellent summary of these new changes and how they will affect you. What the tax reform […]
A terrific read on what Streamlined is and when Streamlined can be used without going to the more over reaching OVDP Offshore Voluntary Compliance Program, including some facts that may not support non-willful behavior.g The Pitfalls of Streamlined Foreign Account Disclosures Tax professionals, and also the general public, well know by now that U.S. taxpayers […]
Rules have exited for nearly a century (since 1921) under IRC Sec. 6851(d) providing that all resident aliens and certain nonresident aliens must obtain a “Certificate of Compliance” before leaving the United States. In practice this is rarely done, but new IRC Sec 7345 may put a wrinkle in that! IRC Sec 7345 requires the […]
The IRS reminds taxpayers that they do not call taxpayers, do not demand immediate payment without allowing the taxpayer to question or appeal the amount owed, do not request a prepaid debit card or credit card and not over the telephone, and the IRS does not threaten to bring in local police or other agencies […]
In a compassionate move realizing the extent of the devastation from Hurricane Irma and Harvey before it to taxpayers in FEMA designated areas, as has become customary the IRS grants an extension from October 16, 2017 to January 31,2018 those taxpayers filing personal tax returns, in addition to business filings whose extension expire September 15, […]
In a compassionate move realizing the extent devastation from Hurricane Irma and Harvey before it to taxpayers in FEMA designated areas, the IRS has included in the definition of Hardship under IRC Sections 401(k) and 403(B) distributions to victims of hurricane Irma as followed hurricane Harvey on Aug 30, 2017 and Matthew last year. The […]
In a compassionate move realizing the extent devastation from Hurricane Irma to taxpayers in FEMA designated areas, FinCEN has extended the October 16, 2017 FBAR Form 114 deadline to January 31, 2018. Virgin Islands, Puerto Rico, and parts of Florida now eligible, extension filers have until January 31, 2018 to file. The Financial Crimes Enforcement […]
The IRS has begun notifying taxpayers as expected under the PATH Act that ITINs that have not been used in at least once in the last 3 consecutive tax years and all ITINs with middle digits 70,71,72 and 80 will expire on December 31, 2017 and must be renewed. The Internal Revenue Service began mailing […]
WASHINGTON — The Internal Revenue Service today reminded U.S. citizens and resident aliens, including those with dual citizenship, to check if they have a U.S. tax liability and a filing requirement. At the same time, the agency advised anyone with a foreign bank or financial account that a new deadline now applies to reports for […]
April 18 was this year’s deadline for filing your federal tax return and paying any tax you might have owed . When taxpayers are due a refund, there is no penalty for filing a late tax return. However, If you owe tax, and failed to file and pay on time, chances are you will owe […]
If you’re a taxpayer who gives money or property to others, you may wonder if the federal gift tax applies to you. Fortunately, while any gift is potentially taxable, gifts are only subject to gift tax in a few specific situations. Here are seven things taxpayers need to know about the US federal gift tax: […]
It’s important for businesses and business owners to know the rules when it comes to classifying a worker as an employee or an independent contractor. This is especially true for tax purposes, as there are different reporting, taxation and withholding requirements for each. As an employer, you must withhold income taxes and pay Social Security, […]
The good news about debt forgiveness, in relation to the Mortgage Forgiveness Debt Relief Act of 2007, is that many taxpayers may qualify for a steep reduction on their tax liability. Debt Cancellation May be Taxable It works like this: If a mortgage lender cancels all or part of your debt during a specific tax year,
Most taxpayers claim the standard deduction vs. itemized when they file their federal tax return. However, some filers may be able to lower their tax bill by itemizing. Find out which way saves the most money by figuring taxes both ways. The IRS Offers the Following Six Tips to Help Taxpayers Decide 1. Use IRS […]
For the third year, the IRS has compiled an official list of top tax scams, dubbed the Dirty Dozen. And again, offshore tax cheating has earned a place on the list. Recently, the IRS boasted of obtaining more than half a million disclosures of unreported offshore money from dodgers and recovery of $9.9 billion in owed
Every year the IRS compiles a Dirty Dozen list of the most prevalent tax scams for the previous year. Topping the recently published 2017 report are phone scams, phishing, and one that really hits home: Return Preparer Fraud. “The vast majority of tax professionals provide honest, high quality service.” But there are a minority of preparers
There are many penalties the IRS can impose on taxpayers, but don’t worry just yet there may be a solution for you. This blog discusses common IRS penalties that come up on a regular basis and ways to either reduce the penalty or have it completely removed. Failure-to-File and Failure-to-Pay Penalties (Sec. 6651) Every year […]
Recently, many tax return preparers have learned that a number of their clients failed to report their interest in a foreign bank account, corporation or trust to the IRS. Because the Foreign Account Tax Compliance Act (FATCA) requires foreign financial institutions to report their U.S. depositors to the IRS, the IRS is more likely to […]
Who needs to fill out a Form 114, Report of Foreign Bank and Financial Accounts (FBAR)? According to The Bank Secrecy Act, P.L. 91-508 “[e]ach United States person having a financial interest in, or signature or other authority over, a bank, securities, or other financial account in a foreign country” and if that person’s foreign […]
What is an Individual Taxpayer Identification Number (ITIN)? Individuals who are not eligible for a Social Security number but have tax-filing or payment obligations according to U.S. law are given ITINs. If you need to file a return in the upcoming filing season and your ITIN is expiring then it is very important that […]
Were you charitable this year? If so you may be able to claim a deduction on your 2016 federal income tax return. Donations of money or goods by December 31, 2016 made to an eligible organization can cut your tax bill. Please note that if you received something in return for your donation your deduction […]
If you are a U.S. citizen and have offshore bank accounts you better make sure you are in full compliance with U.S. tax laws and that you have disclosed all necessary information. The Department of Justice (DOJ) is determined to find offenders and has restarted their engine on identifying tax evaders. In January 2016 a […]
An Alternative to Streamlined It can take months to get a nonfiler back into compliance with the IRS. By Jim Buttonow, CPA/CITP November 7, 2016 – See more at: http://www.journalofaccountancy.com/newsletters/2016/nov/bring-nonfiler-bac-into-compliance.html The IRS estimates that more than 7 million individual taxpayers didn’t file a 2010 tax return. The IRS bases this estimate on information statements […]
Undisclosed Offshore Accounts WASHINGTON — As international compliance efforts pass several new milestones, the Internal Revenue Service reminds U.S. taxpayers with undisclosed offshore accounts that they should use existing paths to come into full compliance with their federal tax obligations. Updated data shows 55,800 taxpayers have come into the Offshore Voluntary Disclosure Program (OVDP) to […]
ITIN Renewal Application WASHINGTON — The Internal Revenue Service reminds taxpayers affected by recent changes involving the Individual Taxpayer Identification Number (ITIN) program that they can now begin submitting their ITIN renewal applications to the IRS. Under the Protecting Americans from Tax Hikes (PATH) Act of 2015 passed by Congress and signed into law last […]
Gambling Income and Losses Report any Gambling Winnings as income on your tax return. Be sure you itemize to deduct gambling losses up to the amount of your winnings. If you are a casual gambler, these tax tips can help: Gambling income. Income from gambling includes winnings from the lottery, horse racing and casinos. It […]
Written by Phil Bradford Are you an American expat who owe money to the IRS? Or, are you thinking of escaping your US tax debt by moving abroad? If so, then beware! The IRS won’t leave you without grabbing its money. It’s because, the US has tax treaties with more than 42 countries, where the […]
Tax Effects of Divorce or Separation If you are divorcing or recently divorced, taxes may be the last thing on your mind. However, these events can have a big impact on your wallet. Alimony and a name or address change are just a few items you may need to consider. Here are some key tax […]
IRA and Retirement Plan Rollovers WASHINGTON — The Internal Revenue Service today provided a self-certification procedure designed to help recipients of retirement plan distributions who inadvertently miss the 60-day time limit for properly rolling these amounts into another retirement plan or individual retirement arrangement (IRA). In Revenue Procedure 2016-47, posted today on IRS.gov, the IRS […]
If you are looking for a job in the same line of work, you may be able to deduct some of your job search expenses. Here are some key tax facts you should know about when searching for a new job: Same Occupation. Your expenses must be for a job search in your current line […]
Duplicative Expatriate Tax Reporting Requirement The tax compliance process for certain Americans living overseas should be simplified through targeted elimination of certain duplicative reporting requirements, the American Institute of CPAs (AICPA) has recommended in an August 15 letter to the U.S. Department of the Treasury and the Internal Revenue Service (IRS). The relief would apply […]
Renting your vacation home to others can be profitable. You must normally report the rental income on your tax return. You may not have to report the rent, however, if the rental period is short and you also use the property as your home. Here are some tips that you should know: Vacation Home. A […]
Did you move due to a change in your job or business location? If so, you may be able to deduct moving expenses, except for meals. Here are the top tax tips for moving expenses. In order to deduct moving expenses, your move must meet three requirements: The move must closely relate to the start […]
WASHINGTON — The Internal Revenue Service today warned taxpayers against telephone scammers targeting students and parents during the back-to-school season and demanding payments for non-existent taxes, such as the federal student tax. People should be on the lookout for IRS impersonators calling students and demanding that they wire money immediately to pay a fake “federal […]
How Identity Theft Can Affect Your Taxes? Tax-related identity theft normally occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund. Many people first find out about it when they do their taxes. The IRS is working hard to stop identity theft with a strategy of prevention, […]
New Phishing Scheme Mimics Software Providers; Targets Tax Professional WASHINGTON — The Internal Revenue Service today alerted tax professionals to an emerging phishing email scam that pretends to be from tax software providers and tries to trick recipients into clicking on a bogus link. The email scheme is the latest in a series of attempts […]
Schoolteachers’ deduction no longer tardy By John W. McKinley, CPA, CGMA, J.D., LL.M., and Do Yoon (Harold) Kim July 1, 2016 The above-the-line deduction for certain classroom expenses of elementary and secondary schoolteachers was added to the Code (Sec. 62(a)(2)(D)) as a temporary provision in 2002 and was renewed six times as an “extender” item—each […]
