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;
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
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”
Businesses urged to renew 2018 State Licenses due January 1 or face penalty.
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.
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.
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.
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.
The new tax law temporarily eliminates the moving expense deduction. Under prior law, taxpayers could claim a deduction for moving expenses incurred in connection with starting a new job if the new workplace was at least 50 miles farther from a taxpayer’s former residence than the former place of work. Under the Tax Cuts and Jobs Act, for tax years beginning after Dec. 31, 2017, and before Jan. 1, 2026, the deduction for moving expenses is suspended,
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2017 TCJA Summary and Analysis
**With the recent changes in tax law, we are posting the below as a summary and analysis that we hope will aid in understanding some of the changes in the new tax law that was passed on December 22, 2017. Please note that while efforts were made to assure the accuracy of the below article,
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