The U.S. government had an estimated budget deficit of $682 billion for the first 10 months of fiscal year (FY) 2018, reported the Congressional Budget Office (CBO). This is an increase of $116 billion over the same period in FY 2017. Receipts for the first 10 months of FY 2018 were higher by 1% over the same period in FY 2017. Individual and payroll taxes rose 5%. Corporate income tax declined 28%,
If you requested an extension to file your 2017 tax return, be aware that Monday, October 15, is generally the deadline. This applies to people who, instead of filing their tax returns back in April, requested an extra six months to file their 2017 returns on IRS Form 4868. Special rules apply to members of the military and those serving in a combat zone. Military members typically have until at least 180 days after leaving a combat zone to both file tax returns and pay any taxes due.
We want to send a huge thank you to Celina & Evan from ADP for coming and cooking us the most delicious breakfast!! It was very much appreciated!!
Get ready for a more complex Form W-4. Employees fill out W-4s so their employers can withhold the correct amount of federal tax from their pay. The IRS has released a draft version of the 2019 W-4 and expects to release a final version soon. The new draft form and instructions are more complex due to the many tax law changes in the Tax Cuts and Jobs Act. Members of the American Payroll Association are questioning whether employees will understand the instructions for the 2019 draft version.
A levy is a legal seizure of a taxpayer’s property to satisfy a tax debt. Individuals and businesses now have more time to file an administrative claim or bring a civil action for wrongful levy or seizure, according to a recent IRS online Tax Tip reminder. The tax reform law passed last December extended the time limit from nine months to two years. The “property” the IRS can seize may be wages, money in the bank or other accounts,
The IRS is serious about deadlines. In a new case, the U.S. Tax Court upheld penalties against a taxpayer for not filing tax returns on time. He filed an extension for 2 years and filed his returns 3 days after the extended due dates. The tax code imposes an addition to tax for failing to timely file a return. For a late filing of not more than a month, it’s equal to 5% of the tax required to be shown on the return.
Partners often personally pay for partnership expenses that are not reimbursed by the partnership. These expenses, referred to as UPE, can be personally deducted against partnership income/(loss) on your income tax return, BUT ONLY IF the partnership agreement allows for it. Since these expenses can no longer be taken as a miscellaneous itemized deduction, consider adding the following to your partnership agreement if it is not already there:
Expenses Incurred on Behalf of Partnership
The partnership has always recognized that is is essential to the successful conduct of its business that,
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