Watch Out for These Tax Time Scams

scam warning - blogThe onset of the tax filing period is likely to also see an increase in scams designed to steal taxpayer financial information or defraud individuals and businesses. Here are some of the scams the IRS is warning taxpayers and businesses to guard against. Continue reading

Important Tax Deadlines for 2019

tax deadlines 2019

The Internal Revenue Service (IRS) has issued a list of important tax deadlines for 2019. We have organized them below in chronological order. Remember, the IRS takes these deadlines seriously, and so should you. No adjustments have been made at this time as a result of the current partial shutdown of the federal government.

What if you miss a deadline? The IRS recommends that you file your return as soon as possible. If you owe taxes, pay them. You may face a financial penalty, or perhaps just an interest charge, but the IRS generally will accept the late return.

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Do Not Let Your Guard Down Against Data Thieves

Data Thief - smallThinking about enjoying a nice vacation this summer? Don’t count on cybercriminals relaxing anytime soon. Even though the high-profile tax filing period is over, scammers and data thieves continue to ply their nefarious trade. That’s why it is important to remain vigilant at all times. Continue reading

Penalty for Non-Reporting of Foreign Accounts Upheld

financial penalty - smallIf you have money in an overseas account you are required by law to report it to the Internal Revenue Service (IRS). Willful non-reporting can result in stiff penalties that can run as high as 50% of the account value. Continue reading

Good News and Bad News on the “Pass Through” Tax Break

Good Bad News - smallThe Tax Cuts and Jobs Act not only reduced the tax rate on C corporations, it includes a significant tax break for certain “pass through” entities such as sole proprietors, partnerships, S Corps, LLCs, and self-employed individuals. Business owners who report business income on their personal tax returns will now be able to deduct 20% of “qualified business income,” which is defined as the net amount of qualified income, gains, deductions and losses for the business. On average, the deduction may result in about a 20% reduction in taxes. Continue reading

Making Sense of the New Pass Through Deduction

tax deduction - smallThe new tax law (Tax Cuts and Jobs Act of 2017) made significant changes to the corporate tax rates. This includes a new deduction for “pass through” business entities like S Corporations, sole proprietorships, partnerships, and LLCs that are taxed as partnerships.

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Giving Gifts to Employees

gift - money - ribbon - webAs we prepare to celebrate the holidays, many employers are also getting ready to provide their employees with annual bonuses and holiday gifts. Beware: What may be a gift given in the spirit of thanks and appreciation could turn out to be taxable income for the recipient. Continue reading