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Archive for the ‘Journals, Publications & More Information’ Category.

Tax Time Guide: Seniors who turned 70½ last year must start receiving retirement plan payments by April 1

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

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IRS: Be vigilant against phone scams – Annual ‘Dirty Dozen’ list continues

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

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Here’s how a name change affects a tax return

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

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Individuals who need passports for imminent travel should contact IRS promptly to resolve tax debt

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

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Moving Overseas? Do Not Forget to Tell the IRS

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

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Tips to keep in mind on income taxes and selling a home

IRS explains 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

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Facts to help taxpayers understand Individual Retirement Arrangements

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

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Newly revised publication helps taxpayers understand changes to backup withholding

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

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TCJA and Expats: What SALT Changes Mean for the Foreign Housing Exclusion and Deduction

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

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What’s new with the child tax credit after tax reform

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

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Tackling TCJA changes this tax season

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

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How some taxpayers are getting grounded

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

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IRS waives penalty for many whose tax withholding and estimated tax payments fell short in 2018

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%)

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The TCJA and Foreign Real Property Taxes

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.

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Tax Reform Affects If And How Taxpayers Itemize Their Deductions

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

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Businesses Can Take These Steps After a Disaster

How businesses can prevent record loss in the event of a disaster, some tips to keep in mind! When disaster strikes, many business owners might find themselves needing to reconstruct records. This will help them prove a loss, which may be essential for tax purposes, getting federal assistance, or insurance

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Like-Kind Exchanges Now Limited to Real Property

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.

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Offshore Account Holders Should Beware: The IRS Is Still Coming

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

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IRS: Offshore Voluntary Compliance Program to end Sept. 28

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

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IRS Issues Proposed Regulations On Global Intangible Low-Taxed Income For U.S. Shareholders

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

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What Taxpayers Should Know About Amending A Tax Return

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. Taxpayers who discover they made a mistake

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IRS And Treasury Issue Proposed Regulations Implementing Section 965

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

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IRS: Refunds worth $1.1 billion waiting to be claimed by those who have not filed 2014 federal income tax returns

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

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FinCEN Clarifies FBAR Due Date for Calendar Year 2017

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

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Three Popular Tax Benefits Retroactively Renewed for 2017

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

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Interest on Home Equity Loans Often Still Deductible Under New Law

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

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IRS Not Entitled to Summary Judgment; Willfulness of Failure to File FBAR

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

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Hobby Income & Expenses: Five Things to Know

Every tax year the IRS reminds us of Hobby Loss deductibility restrictions, please keep these in mind when preparing your US income taxes! From scrapbooking to glass blowing, many Americans enjoy hobbies that are also a source of income. A taxpayer must report income on their tax return even if

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Olson Directs IRS Not to Certify Some Passport Cases

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

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IRS Urges Travelers Requiring Passports to Pay Their Back Taxes or Enter into Payment Agreements

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

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Taxpayers with Expired ITINs Should Renew Them Now to File Their 2017 Taxes

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

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IRS to enforce compliance on passport holders with tax debt

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

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The Taxpayer Bill of Rights – What You Need to Know

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

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Maximizing the Foreign Tax Credit on Qualified Dividends

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

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What the Tax Bill Means for Individuals

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

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A 2017 federal tax deduction for prepaying anticipated 2018 state income taxes? Not likely!

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

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Congress Shuts Down Prepayment of 2018 State Income Taxes

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

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NYS Tax Department – Prepayment of 2018 Property Tax

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

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Tax Cuts and Jobs Act – Special Report

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

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Departing aliens and the sailing permit

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! 

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The Pitfalls of Streamlined Foreign Account Disclosures

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

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Taxpayers Should Be Wary of Unsolicited Calls from the IRS

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

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IRS Begins Issuing Notices to Taxpayers whose ITINs Expire by End of 2017

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

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FinCEN Provides FBAR Relief to Victims of Hurricane Irma

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

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Retirement Plans Can Make Loans, Hardship Distributions to Victims of Hurricane Irma

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

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IRS Gives Tax Relief to Victims of Hurricane Irma – Extension Filers Have Until Jan. 31 to File

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

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IRS Reminds Those with Foreign Assets of U.S. Tax Obligations; New Filing Deadline Now Applies to Foreign Account Reports

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

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Hobby or Business? IRS Tips to Help You Decide

Millions of people enjoy hobbies that are also a source of income. From catering to cupcake baking, crafting homemade jewelry to glass blowing — no matter what a person’s passion, the Internal Revenue Service offers some tips on hobbies. Taxpayers must report on their tax return the income earned from

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Filing Taxes Late and Paying Penalties – Things You Need to Know

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,

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Employee or Independent Contractor? Know the IRS Rules

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

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What Makes a Gift Taxable? 7 Helpful Tax Tips

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

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The Mortgage Forgiveness Debt Relief Act May Reduce your 2016 Tax Bill

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,

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Standard Deduction vs. Itemized: How To Choose What Works For You

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

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IRS Committed to Stopping Offshore Tax Cheating, Remains on List of Tax Scams for 2017

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

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IRS Dirty Dozen Tax Scams 2016

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

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IRS Penalties and How to Get Them Removed or Reduced for Clients

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

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Assessing the options when a client has unreported foreign assets

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

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New Due Date for FinCEN Form 114, FBARs

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”

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Renew Your ITIN To Avoid Refund And Processing Delays

  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

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Disclosing Offshore Bank Accounts Before Federal Watchdogs Do It For You

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

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Reduce Your Income Tax Bill By Claiming Your Charitable Donations

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

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An alternative to Streamlined

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?utm_source=mnl:cpainsider&utm_medium=email&utm_campaign=07Nov2016#sthash.dIzdEUNS.dpuf   The IRS estimates that more than 7 million individual taxpayers didn’t file a 2010 tax return. The IRS bases

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Offshore Voluntary Compliance Efforts Top $10 Billion

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

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IRS Now Accepting ITIN Renewal Applications; Taxpayers Encouraged to Act Soon to Avoid Processing Delays in 2017

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

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Five Tax Tips for Gambling Income and Losses

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,

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AICPA Calls for End to Duplicative Expatriate Tax Reporting Requirements

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

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Job Search Expenses May Impact Your Taxes

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

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New Procedure Helps People Making IRA and Retirement Plan Rollovers

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

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Tax Effects of Divorce or Separation

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.

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US expat taxpayers: How to pay off IRS tax debts

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

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IRS Warns of “Federal Student Tax” Back-to-School Scams;

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

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What to Expect at Tax Time if You Are Renting Your Vacation Home

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

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Deduct Moving Expenses

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

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New Phishing Scheme Mimics Software Providers; Targets Tax Professional

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

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How Identity Theft Can Affect Your Taxes

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

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Second Circuit holds taxpayer not subject to IRS summons

In a decision limiting the ability of the IRS to compel a taxpayer to produce summonsed documents, the Second Circuit vacated and remanded a district court order compelling the defendant, Steven Greenfield, to comply with IRS summonses to produce documents related to his offshore accounts, holding that the foregone-conclusion doctrine

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IRS Works to Help Taxpayers Affected by ITIN Changes; Renewals Begin in October

WASHINGTON — The Internal Revenue Service today announced important changes to help taxpayers comply with revisions to the Individual Taxpayer Identification Number (ITIN) program made under a new law. The changes require some taxpayers to renew their ITINs beginning in October. The new law will mean ITINs that have not

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Back to School? Learn about Tax Credits for Education

If you pay for college in 2016, you may receive tax credits for education on your federal tax return, even if you’re studying outside of the U.S. Both the American Opportunity Tax Credit and the Lifetime Learning Credit may reduce the amount of tax you owe, but only the AOTC is

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Schoolteachers’ deduction no longer tardy

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

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How Selling Your Home Can Impact Your Taxes

Usually, profits you earn are taxable. However, in selling your home, you may not have to pay taxes on the money you gain. Here are ten tips to keep in mind if you sell your home this year. Exclusion of Gain.  You may be able to exclude part or all of

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Taxpayer Not Required to Comply with FBAR Reporting for Online Poker Gambling Accounts

ax News, Journals and Newsletters > Federal Tax > Federal Tax Day – Current > JUDICIARY > J.3, Taxpayer Not Required to Comply with FBAR Reporting for Online Poker Gambling Accounts (Hom, CA-9), (Jul. 29, 2016) A poker player’s accounts at two online poker websites were not foreign financial accounts for purposes of the Foreign Account Tax Compliance

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Federal Tax Day – Capital Gains and Loss

Tax News, Journals and Newsletters > Federal Tax > Federal Tax Day – Current > INTERNAL REVENUE SERVICE > I.1, Regulations Eliminate Requirement to Submit Copy of 83(b) Election with Individual Tax Returns (T.D. 9779), (Jul. 26, 2016). Capital Gains and Loss. The IRS has issued final regulations that eliminate the requirement that a copy of a Code

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IRS Offers Tips to Help You Prepare for Hurricanes, Natural Disasters

With hurricane season underway, the IRS offers advice to those impacted by storms and other natural disasters. Here are some tips to help you prepare for such events: Use Electronic Records. You may have access to bank and other financial statements online. If so, your statements are already securely stored

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Check Your Summer Withholding to Prevent a Tax-Time Surprise

Each year, many people get a larger refund than they expect. Some find they owe a lot more tax than they thought they would. If this has happened to you, review your situation to prevent a tax surprise. Did you marry? Have a child? Change in income? Life events can

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National Taxpayer Advocate Taxpayer Needs and Preferences

WASHINGTON — National Taxpayer Advocate Nina E. Olson today released her statutorily mandated mid-year report to Congress that contains extended excerpts from her ongoing Public Forums on Taxpayer Needs and Preferences, presents a review of the 2016 filing season, and identifies the priority issues the Taxpayer Advocate Service (TAS) will

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Owe Taxes? These Tips Can Help. How To Pay Your Taxes

The IRS offers many safe and easy ways to pay your taxes. These tips explain how to pay your taxes: Mailed tax bills. The IRS sends bills in the U. S. mail. Try to pay soon and in full to avoid any extra charges. If you can’t pay in full,

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U.S. Mining Swiss Bank Data to Find Tax Cheats

By Laura Saunders The Justice Department has begun scrutinizing thousands of U.S. taxpayers’ Swiss bank accounts to compare bank information with what the taxpayers have reported to the Internal Revenue Service. Discrepancies between accounts and filings could trigger prosecutions, said Nanette Davis, a senior lawyer with the Justice Department’s Tax

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Don’t Forget to Report Certain Foreign Accounts to Treasury by the June 30 Deadline

WASHINGTON—The Internal Revenue Service today reminded taxpayers who have one or more bank or financial accounts located outside the United States, or signature authority over such accounts that they may need to file an FBAR by Thursday, June 30. By law, many U.S. taxpayers with foreign accounts exceeding certain thresholds

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Keep in Mind the Child and Dependent Care Credit this Summer

Day camps are common during the summer months. Many parents enroll their children in a day camp or pay for day care so they can work or look for work. If this applies to you, your costs may qualify for a federal tax credit. Here are 10 things to know

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IRS Warns of Latest Scam Variation Involving Bogus “Federal Student Tax”

WASHINGTON — The Internal Revenue Service today issued a warning to taxpayers about bogus phone calls from IRS impersonators demanding payment for a non-existent tax, the “Federal Student Tax.” Even though the tax deadline has come and gone, scammers continue to use varied strategies to trick people, in this case

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International Taxpayers; June Filing Deadlines Nearing for Most Americans Abroad

WASHINGTON — The IRS also today reminded U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2015, that they may have a U.S. tax liability and a filing requirement in 2016. The IRS encourages taxpayers with foreign assets,

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$50,000 in tax debt can ground travelers

By Allen Schuldenfrei, CPA, J.D. April 1, 2016 Tucked away in a transportation bill signed in December by President Barack Obama is a provision requiring the IRS to refer seriously delinquent taxpayers to the U.S. State Department for denial or revocation of a passport. The Fixing America’s Surface Transportation Act

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Tips for Those Who Missed the Tax Deadline

Monday, April 18, was the tax deadline for most people in 2016. If you didn’t file a tax return or an extension to file but should have, take action now. If you missed the tax filing deadline: File and pay soon. If you owe taxes, you should file and pay

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More Affected by IRS Data Breach Than First Thought

By: Chris Gaetano Published Date: Mar 1, 2016   The IRS data breach last year, in which hackers used a system loophole to steal personal taxpayer information, is worse than initially believed, according to CBS News. A nine-month investigation has found that as many as 724,000 taxpayers had information like names, addresses

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Tax Savings from Higher Education Costs

Money you paid for higher education in 2015 can mean Tax Savings from Higher Education Cost. If you, your spouse or your dependent took post-high school coursework last year, there may be a tax credit or deduction for you. Here are some facts from the IRS about key tax breaks for

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Top Ten Facts about the Adoption Tax Credit

If you adopted or tried to adopt a child in 2015, you may qualify for a tax credit. Here are ten things you should know about the adoption credit. Credit or Exclusion. The credit is nonrefundable. This means that the credit may reduce your tax to zero. If the credit

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What You Need to Know About the Child and Dependent Care Tax Credit

Don’t overlook the Child and Dependent Care Tax Credit. It can reduce the taxes you pay. Here are 10 facts from the IRS about this important tax credit: Child, Dependent or Spouse. You may be able to claim the credit if you paid someone to care for your child, dependent

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Still Time to Make Your IRA Contribution for the 2015 Tax Year

Did you contribute to an Individual Retirement Arrangement last year? Are you thinking about contributing to your IRA now? If so, you may have questions about IRAs and your taxes. Here are some IRS tax tips about saving for retirement using an IRA: Age Rules. You must be under age

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Consumer Alert: Scammers Change Tactics, Once Again

IRS YouTube Video Tax Scams: English | Spanish | ASL Security Summit Identity Theft Tips Overview: English Be Cautious When Using Wi-Fi: English Update Your Password Regularly: English WASHINGTON — Aggressive and threatening phone calls by criminals impersonating IRS agents remain a major threat to taxpayers, but now the IRS

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