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Did you extend your tax return for 2018?
Many taxpayers filed extensions this year due to surprises and misunderstandings about the new rules under the Tax Cuts and Jobs Act. If you extended your tax return and didn’t pay an estimate of the tax you owe, be aware that interest and penalties are now accumulating. When you extend your tax return, it’s in […]
Quick tips about tax deductions for individuals
As we’re in the final crunch period to complete 2018 tax returns, we’ve been answering numerous questions about tax deductions. Here are some of the most significant changes our clients are seeing and what they mean for your tax bill this year. Are my contributions to charity still deductible? The short answer: yes, if you […]
Do you owe taxes for the first time in 2018?
Many people elect to have their income withheld at a higher rate in order to receive a large tax refund each year. While we generally don’t advise giving the government an interest-free loan, many enjoy getting the big payback in April. For 2018, the first tax year under the Tax Cuts and Jobs Act (TCJA), […]
Dependent tax credits aren’t just for children
If you’re a parent, you may remember filing your taxes the year after your first child was born. Did you get excited about claiming a dependent on your tax return for the first time? Guess what: the Tax Cuts and Jobs Act doubled the tax credit to $2,000 for each dependent. Up to $1,400 of […]
Your tax refund under the Tax Cuts and Jobs Act
You’ve heard all the hype about the new tax law. Perhaps your paychecks were a bit bigger in 2018. But lots of people have one question on their minds right now. Am I going to get a huge tax refund this year? Maybe. But maybe not. First, let’s look at what all the fuss is […]
Do you know who’s preparing your taxes?
When it comes to selecting someone to prepare your tax return, there are a lot of criteria to consider. Have you thought about whether the person offering to do your taxes is a legitimate tax preparer? Protect yourself from tax prep scams by knowing how the IRS evaluates tax preparers. The IRS has warned taxpayers […]
Do I need a tax projection?
As this year is coming to a close, many of us are already thinking forward to tax time. Now is the time to look at your full financial picture while there is still time to make financial decisions that will impact your tax burden. How do I get started on my tax projection? First, contact […]
Tax Planning and The Tax Cuts and Jobs Act
Tax Planning and The Tax Cuts and Jobs Act The tax year 2018 is quickly ending. The Tax Cuts and Jobs Act (TCJA) makes tax planning more challenging this year, but certainly not impossible. Over the following weeks, we will be discussing various aspects of the TCJA, which must be considered to maximize the tax […]
How to a Avoid Scam When Helping Hurricane Harvey Victims
The effects of Hurricane Harvey and the flooding in Texas have prompted many people to open their hearts and wallets to try to help the victims. Unfortunately, events like these provide an opportunity for scammers. The Better Business Bureau issued an advisory Monday with these reminders: 1. Don’t fall for copycats. Double-check the name of […]
Another Phishing Scam – Forms W-2
    Teach a man to phish, and he will come up with all sorts of new scams.   This IRS has recently renewed its warning about an email scam that targets payroll and human resources departments.  The scam involves emails sent directly to Payroll/Human Resources requesting personal employee information such as Social Security numbers […]
New Email Phishing Scam Targeting QuickBooks Users
On January 25, the Better Business Bureau issued a warning about a new email phishing scam that targets the users of Intuit’s QuickBooks accounting software programs.  The scam email contains a subject line of “QuickBooks Support: Change Request” and looks like a legitimate email from Intuit.  The body of the email requests a confirmation about […]
St. John’s County Votes for Sales Tax Increase
In an off year election cycle, voters in St. John’s County Florida have elected to add a local sales tax rate of a half cent effective January 1, 2016.  The new sales tax rate will be 6.5%, rounded up to the nearest penny.  The money is intended for local schools as the St. John’s County […]
SCOTUS Rules on Obamacare Subsidies
We have received the SCOTUS ruling on the Obamacare subsidies. The Supreme Court handed down a 6-3 ruling in favor of the Affordable Care Act in the King v. Burwell case. The case centered on the question of whether the law provided assistance to individuals purchasing health insurance through the federal exchanges as well as […]
Responding to the IRS Breach
On May 26, the IRS reported that thieves had managed to access approximately 104,000 individual taxpayer accounts through the ‘Get Transcript’ application. Thieves gained access to the information by using information from third-party sources to login online and answer personal security questions. The question now is how you should be responding to the IRS breach. The […]
IRS Reports Spike in Identity Theft
2013 saw a significant spike in tax return related identity theft. According to the IRS, cases of identity theft were up 66% for the filing season a year ago. Based on what we have seen this season, that statistic is sure to rise. Most people hate filing tax returns. Aside from being cumbersome, tax filings often come […]
‘Tis the Season
We’re only partway through January, but W-2s, 1099s, and other tax documents are already starting to pour in. Tax season is underway. Are you ready? Chances are, you are more ready than the IRS. Due to Congress’ passage of last-minute tax law, the IRS has delayed the official opening of tax season. E-filing will become available January […]
Tax Issues for Child Dependents
Today I had the opportunity to teach a class of high school students about various tax forms, whether they should file a tax return, and some general principles for dependents of other taxpayers.  It was a great group, and I had a lot of fun.  Of course, I’m a tax geek.  So teaching about tax […]
Home Office Deduction: Proceed with caution
The home office deduction has been alternately viewed as lucrative and dangerous. Does it raise your chance of getting audited? Can you really deduct your rent payment? The home office deduction is not a free-and-clear opportunity to live tax-free. However, taken correctly, it can help to reduce the costs associated with running a business out […]
IRS Publications Ruled Unreliable
If you think publications printed by the IRS offering tax guidance are a final authority, think again.  In a recent tax court ruling, the judge reinforced that the “plain language” of the law trumps IRS proposed regulations or publications (Bobrow).  Basically, IRS Publications, which provide specific tax instructions for various situations, have been ruled unreliable. […]
Dear Donald Rumsfeld
MarketWatch is reporting this morning that former Secretary of Defense Donald Rumsfeld has sent his annual letter to the Internal Revenue Service stating that he does not know whether his return or the payments he made are in fact accurate.  I certainly understand where Mr. Rumsfeld is coming from.  I definitely agree with him that […]
FAQ on the ACA Forms and Deadlines
We have been receiving a lot of questions in our office about the ACA forms due October 1 to be distributed to all employees.  We would like to take a moment to answer those questions and others with our own FAQ on the ACA forms and deadlines: 1. Do these forms need to be distributed […]
IRS Comes Out With Same-Sex Marriage Answer
The IRS has finally come out with an answer to the question of how same-sex marriage will be taxed among the varying states.  Kiplinger is reporting that as of September 16 all legally married same-sex couples must file jointly or married filing separate regardless of what state they live in.  This answers the question of […]
Note To Service Industry: IRS Says Service Charges Are Not Tips!
The IRS has recently released an updated tax rule that differentiates between tips, which are voluntary payments to service personnel such as waiters, waitresses, bartenders, valet staff, etc. and service charges, such as those automatically applied to bills by restaurants for groups of certain sizes. Beginning January 2014, the IRS will treat any automatic gratuity as […]
IRS Calculation Error
If you received a CP2000 notice for July, you may be getting an adjustment letter from the IRS before the end of the month.  While much of what the IRS does is computerized, that doesn’t mean the IRS doesn’t have the occasional calculation error.  In this case, the IRS incorrectly calculated interest due with tax […]
U.S. Supreme Court Changes the Tax Game for Same-Sex Married Couples
Earlier Wednesday, in United States v. Windsor, the U.S. Supreme Court overturned the Defense of Marriage Act (DOMA) in a 5-4 vote led by Justice Kennedy who was joined by the four liberal members: Justices Ginsburg, Breyer, Sotomayor, and Kagan, affecting the potential tax situation in which same-sex couples will find themselves.  The ruling can […]
Should I Pay Quarterly Estimates?
The funny thing about the IRS is that they are more predictable than a small business.  So when someone buys a new house and puts their kids in private school based on a great first quarter, and then ends the year with no cash in the business due to a dismal fourth quarter, the IRS […]
Health Insurance Application Similar to Taxes
The new draft health insurance application for the Affordable Care Act has been released, and in many way the new health insurance application is similar to a tax return.  Of course, a tax return doesn’t ask if you are pregnant or if you were ever in foster care.  A tax return does ask you for […]
IRS Trumps God?
When it comes to collections, it is no secret that the IRS is often the one debt collector that you want to pay first if at all possible.  They charge penalties, high interest rates, are quick to levy assets, and can garnish wages and bank accounts.  In fact, it turns out the IRS trumps God […]
IRS Simplifies Home Office Deduction for 2013
While most things having to do with taxes and the IRS tend to go from simpler to more complex, occasionally the IRS does something to make our lives easier.  In this case, the IRS has simplified how we can calculate the Home Office Deduction.  Rev. Proc. 2013-13 outlines a safe harbor calculation to replace the […]
Social Security Taxes Increase in Fiscal Cliff Deal
The new tax deal to avert the Fiscal Cliff may affect taxpayers who are struggling the most.  Social Security taxes increase as part of the agreement to avert the Fiscal Cliff to pre-2011 withholding rates of 6.2% of gross wages up to $113.700. The rate had previously been lowered starting in 2011 from 6.2% down to 4.2% […]
In With the Old: New Year Brings Ongoing Fiscal Cliff Debate
As of 6:10pm on New Years Eve, no votes are expected to avert the automatic tax hikes and spending cuts built into the Fiscal Cliff.  The current deal in the works would result in $400,000 ($450,000 for married filing joint) being the new cutoff definition of “rich” and current tax rates extended for everyone else.  […]
What To Do If You Are Audited
Have you received a notice from the IRS telling you that your tax return has been selected for examination? Selection for examination means that you are being audited by the IRS.  Here’s what to do if you are audited. If your tax return is selected for examination by the IRS, you may receive the audit […]
Form 5498 for IRA Contributions
Taxpayers who contributed to an IRA in 2011 are starting to receive their Form 5498, IRA contribution forms.  You may receive this form even if you made a contribution in 2012 for 2011. The form is primarily for information purposes, and does not have to be sent in with your tax return.  If we have […]
Tax Refund Delays
If you thought that filing early would guarantee a speedy return of your tax refund, think again. The IRS is reporting tax refund delays of up to two weeks beyond their normal 10 day return maximum due to computer troubles with their new anti-fraud detection system. The IRS is working extra hard this year to […]
Form 8949 New Filing Requirement on Sale of Securities
The IRS is facing budget cuts and is looking for new ways to shift the reporting burden to the taxpayer.  Currently, the IRS matches gross proceeds information received from brokerage firms with what is reported on Schedule D of individual tax returns, while basis is tracked by individuals and their brokerages.  Due to law changes, […]
Woman Faces Life in Jail For Claiming Fake Dependents
In December of 2002, Norma Coronel gave birth to one child; but that’s not what her tax return says..  Coronel was indicted on 35 counts and arrested after claiming 19 children, 18 fake dependents on her tax return.  Unbelievable we know, but this type of activity happens everyday due to the earned income credit. She was caught […]
IRS surveys are coming to a mailbox near you!
About 20,000 individuals and 24,000 businesses have been randomly chosen and will soon get letters from the IRS.  Don’t panic, these are not collection letters.  These IRS surveys will help them update their estimates of what sort of burden they place on you.  They are looking to see how much time you spend on filling out IRS […]
IRS Extends Wait Times
What’s the difference between a delinquent taxpayer and the IRS?  Delinquent taxes are due right away, but the IRS now has a 16 week waiting period to even process most amended returns or other claims for refund.  In addition to amended returns, paper filed returns are also subject to these extended wait times.  Certain credits, […]
Is An Audit In Your Future?
The IRS has released new statistics on audits for 2010 and your chance for an audit is the highest it has been since 1997.  For individual returns, 1.11% of all returns were audited.  For upper income earners, the statistics were even worse.  Filers with income between $200,000 and $1 million were audited at twice that […]
Just over a month to go; tax deadline approaches!
The corporate tax deadline is just about a week away.  That will mark just over one month until the individual tax deadline.  The deadline is April 18th this year because of Emancipation Day, a local holiday in Washington DC. Have you submitted your tax information to your accountant yet?  If not, here are some tips to […]
2011 & 2012 Estate Planning Opportunities
The Tax Relief, Unemployment Insurance Re-authorization, and Job Creation Act of 2010 provided much needed direction in the area of U.S. estate tax law. This act, which had lawmakers on both sides of the isle compromising and defending themselves to constituents, has provided a window into some of the most exciting estate planning opportunities in […]
So long, credits and deductions?
Would you be willing to lose your credits and deductions including mortgage interest deduction, charitable giving deduction, education credits, child tax credits,  IRA deduction and tax free health benefits from your employer?  What if it meant cutting your marginal tax rate in half and making tax prep easier?  The only thing growing at a faster rate […]
Tax Compromise Bill Passes!
The tax compromise bill passes! After the House defeated an amendment to remove the Estate Tax fix and an all nighter of debate, they passed the original Senate bill 277-148.  What are the implications?  Tax rates will not go up for anyone until 2013.  The Estate Tax will have an exemption of $5 million starting […]
Tax bill stalled but details continue to emerge
Honestly, we didn’t see this coming.  For people who are excited about the potential for a reduction of 2% on their Social Security taxes, you might not realize why the President put this into the compromise.  President Obama’s Making Work Pay Credit is expiring January 1, 2011 and it now looks as though it will […]
Tax relief!  Not so fast?
I was hoping to write a tax relief blog this morning about the pending political compromise between the White House and Congressional Republicans that would extend current tax rates for all Americans, set a $5 million exemption for the Estate Tax, cut Social Security taxes, and extend unemployment benefits.  While I think some version of this […]
ANOTHER 2011 Tax Hike?!?
Will there be another 2011 tax hike? While many are baulking at the $700 billion over 10 years to renew the 2001 tax cuts for families who make over $250,000, and no decision has been made on these tax cuts for everyone else in America, there is another tax break that is set to expire […]