General News and Information Archives - Page 16 of 40

Jan
03
2019

Step Up Cyber Security

Time to step up cyber security. The IRS and others have worked to strengthen their security systems, and are urging the public to help. “To make these defenses stronger, we need taxpayers and tax professionals to take common-sense steps to protect their data and make it harder for identity thieves. By using better passwords, people can help themselves and the tax community against identity theft,” said IRS Commissioner, Chuck Rettig. New guidance for creating strong passwords suggests using a meaningful “passphrase.” Here are the details: https://bit.ly/2PkvdM6

Jan
01
2019

Sole Proprietorship newly released instructions for Schedule C

If you’re the owner of a sole proprietorship, listen up! Newly released instructions for Schedule C, Form 1040, reflect many of the key tax changes that apply to sole proprietors for tax year 2018. These changes, enacted by the Tax Cuts and Jobs Act, include accounting method liberalizations, limitations on deductions for business interest and business losses, a new deduction for qualified business income, and restrictions on deductions for business meals and entertainment expenses. Read the complete IRS-issued instructions here: http://bit.ly/2v0zJKU

Dec
31
2018

Data Breaches

Is the IRS doing enough to help victims of external data breaches? An audit by the Treasury Inspector General for Tax Administration (TIGTA) took up that question. The audit showed the “IRS has taken many actions to inform external stakeholders on how to protect taxpayer information as well as actions to take if a data breach occurs.” Yet TIGTA added that more could be done. In one incident, 11,406 Social Security numbers associated with breaches weren’t handled properly to help taxpayers avoid identity theft.

Dec
31
2018

Office Closure

We will be closed on January 1, 2019 to start the New Year! We will return to our normal business hours on Wednesday, January 2, 2019.
We wish everyone a Happy and Safe New Year!

Dec
30
2018

It’s not too late: You can still set up a retirement plan for 2018

If most of your money is tied up in your business, retirement can be a challenge. So if you haven’t already set up a tax-advantaged retirement plan, consider doing so this year. There’s still time to set one up and make contributions that will be deductible on your 2018 tax return. And funds can grow tax deferred. If you have employees, they generally must be allowed to participate in the plan, provided they meet the requirements.

Dec
29
2018

Buy business assets before year end to reduce your 2018 tax liability

Investing in business assets is a traditional and powerful year-end tax planning strategy, and it might make even more sense in 2018. Sec. 179 expensing and bonus depreciation both allow an immediate deduction for the cost of eligible asset purchases, rather than depreciating them over a number of years. The TCJA increases potential deductions under these breaks and expands the assets that are eligible. To qualify, you must place assets in service by the end of the year.

Dec
28
2018

Distribution from retirement plan

When a taxpayer under age 59-1/2 takes a distribution from a qualified retirement plan, a 10% penalty is generally imposed. However, exceptions may apply. In one case, a taxpayer argued that her gambling addiction qualified her for an exception due to disability. The gambling addiction arose, she said, from an addiction to medication, which led to compulsive behavior and then to financial problems. A U.S. Tax Court rejected her claim, finding she hadn’t established that she qualified for a disability exception.

Dec
27
2018

Nonprofit member surveys: Dos and don’ts for the 5 D’s

Many not-for-profits take the pulse of their membership with regular surveys but fail to conduct them strategically and end up with useless information. Maximize your next survey’s effectiveness by focusing on your objectives during every stage of the process. For example, start by defining what you want to learn so that you don’t ask members for information you can’t use. Design your survey with specific questions and explain to participants how you plan to use the results.

Dec
26
2018

2018 Affordable Care Act forms

Employers are granted an extension to furnish 2018 Affordable Care Act (ACA) forms to recipients. Health insurers and health plan sponsors must give all covered individuals an annual information statement summarizing their health care coverage. The deadline to furnish individuals with 2018 Form 1095-B and Form 1095-C is now extended, from 1/31/19 to 3/4/19. No extension is granted for filing forms with the IRS. This deadline remains 2/28/19, or 4/1/19 if filing electronically. Late filing may result in penalties.

Dec
25
2018

Check deductibility before making year-end charitable gifts

With tax law changes going into effect in 2018 and many rules applying to the charitable deduction, it’s a good idea to check deductibility before making year-end donations. First, total up your potential itemized deductions for the year, including the donations you’re considering. The total must exceed your standard deduction (which has been nearly doubled by the TCJA) for year-end donations to provide a tax benefit. Next, make sure the organization is qualified: http://bit.ly/2gFacut Finally,