Blog and News

Mar
27
2018

Federal Budget





The Trump administration’s 2019 budget proposal includes repeal of the Affordable Care Act. Released on Feb. 12, the proposal also includes establishing HSAs for Medicare beneficiaries, providing incentives for states to build unemployment insurance reserves, and providing the IRS with $11.1 billion in “base funding.” That includes $2.3 billion for “running key tax filing and compliance IT applications” and $110 million for “IT modernization efforts.” Although many of the proposals are unlikely to become law,

Mar
20
2018

Calling the IRS





Calling the IRS? Be sure you can verify your identity. The IRS issued a reminder to taxpayers, and those who are authorized to speak on their behalf, that before they call the tax agency they should have the following ready: 1) Social Security number (SSN) and birthdate for those named on the tax return in question; 2) an Individual Taxpayer Identification Number if the individual has one in lieu of an SSN;

Mar
13
2018

Affordable Care Act






The IRS has released updated questions and answers (Q&A) that provide guidance on the employer shared responsibilities under the Affordable Care Act, including 2018 penalties. Applicable large employers (ALEs) must offer health insurance to full-time employees and are generally assessed penalties for failing to do so. Whether an employer is an ALE depends on the size of its workforce. Here are the Q&As: http://bit.ly/28MZtKE

Mar
06
2018

Watch out for Tax Scams





Be on alert for new tax scams. The IRS is warning about new ways thieves are stealing from taxpayers. In one scam, criminals pose as debt collection agency officials acting on behalf of the IRS. They contact taxpayers to say refunds were deposited in their accounts in error. They ask the taxpayers to send the money back. In another scam, taxpayers receive automated calls saying erroneous refunds were deposited and threatening criminal charges and “blacklisting”

Mar
02
2018

Renew 2018 State Licenses or Face Penalty


Businesses urged to renew 2018 State Licenses due January 1 or face penalty.

Feb
27
2018

Tax Rules for Alimony





The Tax Cuts and Jobs Act (TCJA) will be changing the tax rules of the road for alimony. Under current rules, individuals who pay alimony or maintenance can deduct an amount equal to the payments made during the year as an “above-the-line” deduction. And, under current rules, alimony and maintenance payments are taxable to recipients. But under the TCJA, there’s no deduction for alimony for the payers and alimony isn’t gross income to the recipients.

Feb
15
2018

Watch out for potential tax pitfalls of donating real estate to charity


Charitable giving allows you to help an organization you care about and, in most cases, enjoy a valuable income tax deduction. If you’re considering a large gift, a noncash donation such as appreciated real estate can provide additional benefits. For example, if you’ve held the property for more than one year, you generally will be able to deduct its full fair market value and avoid any capital gains tax you’d owe if you sold the property.

Feb
13
2018

Tax Extenders 2018

SUMMARY OF THE TAX EXTENDERS AGREEMENT

DIVISION D – REVENUE MEASURES

TITLE I – EXTENSION OF EXPIRING PROVISIONS

 

Subtitle A – Tax Relief for Families and Individuals

Section 40201. Extension and modification of exclusion from gross income of discharge of

qualified principal residence indebtedness. The provision extends through 2017 the exclusion

from gross income of a discharge of qualified principal residence indebtedness.

Feb
13
2018

Save more for college through the tax advantages of a 529 savings plan


With kids back in school, it’s a good time for parents (and grandparents) to think about college funding. One option, which can be especially beneficial if the children in question still have many years until they’ll be starting their higher education, is a Section 529 plan.

Tax-deferred compounding

529 plans are generally state-sponsored, and the savings-plan option offers the opportunity to potentially build up a significant college nest egg because of tax-deferred compounding.

Feb
08
2018

Tax Debt and Passports?

What does tax debt have to do with a passport? Passports are issued by the State Dept., not the IRS. But a 2015 law requires the IRS to notify the State Dept. of taxpayers having “seriously delinquent tax debt,” generally defined as tax debt exceeding $50,000 and for which a lien has been filed (for tax years beginning after Jan. 1, 2016). Unless exceptions apply, such tax debt is grounds for denial of a passport or revocation or limitation of an existing passport.