The Tax Cuts and Jobs Act of 2017 effectively doubled the lifetime exemption of assets that can be protected from federal estate and gift taxes. For 2018, assets of up to $11.18 million for an individual and $22.36 million for a married couple can be transferred without triggering the estate and gift tax. Those limits are indexed for inflation and will increase to $11.4 million for individuals and $22.8 million for married couples for the 2019 tax year. Continue reading
The 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
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.
Thinking 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
If 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
The 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
The 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.
As 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
Do you or others in your company travel for business? The IRS has released the 2017-2018 per diem rates for substantiating employee business expenses for lodging, meals, and incidental expenses incurred while traveling away from home. Continue reading
With the filing deadline for tax extensions looming, it is a good time to review some of the most devious and dangerous techniques cyber criminals use to cheat their victims by creating fraudulent tax returns. The Internal Revenue Service (IRS) has published a list of six tips to combat some of the latest frauds, including the “red flags” that may help you identify the scam. Continue reading