IRS Scams in 2015
Taxonomy:
Tax & Accounting
Body:
Each year the IRS releases its Dirty Dozen list of tax scams. Though the entire list has 12 scams on it, we want to highlight the three most common that our clients are facing.
Identity Theft
IRS Budget Cuts
Taxonomy:
Tax & Accounting
Body:
Tax season officially kicked off January 20, 2015, as scheduled, even with late tax extender law passage on December 19, and cuts in IRS funding. Those filing paper returns this year, however, will have their refunds delayed an additional week or longer due to the cuts in funding. We are also told the wait times if you call the IRS are expected to be much longer this tax season. This is the lowest level of funding since 2008, and the lowest since 1998 when inflation is considered, according to IRS Commissioner John Koskinen.
Tax Outlook - 2015 And Beyond
Taxonomy:
Tax & Accounting
Body:
While both the President and Congress agree action is needed on corporate tax reform, the two seem far apart on how to bring changes about. The sides seem closer to an agreement to change business taxation rules, but it hard to do that without addressing individual taxation, or disadvantaging sole proprietorships, and pass through entities like LLCs, S-corporations and partnerships. One plan would create a special tax rate for business income of individuals similar to how there are separate rates for dividends and capital gains. The goal is to equalize the top rate f
2014 Tax Extenders
Taxonomy:
Tax & Accounting
Body:
For those that may have missed it, the President signed into law a “tax extender” bill in December that extended a number of existing tax benefits and credits that would have otherwise expired as of 12/31/13. The law extended them only through the 2014 tax year. For the 2015 filing year most of these extenders will probably be eliminated.
Some of the extensions that were restored which may benefit you include:
Affordable Care Act - 2014 Filing Impact
Taxonomy:
Tax & Accounting
Body:
The 2014 tax year brings a major change in the requirements for your individual 1040 tax return. Due to the Affordable Care Act (ACA) your return now also reports your health insurance status for each month of the year for each person included on your tax return.
2014 Tax Extenders
Taxonomy:
Tax & Accounting
Body:
In December 2014, Congress passed a tax extender bill that was then signed by the President, which extended tax write-off provisions for tax filing year 2014. Previous to this Bill, these provisions were scheduled to expire on 12/31/13.
Some of the extensions that were restored which may benefit you include:
- IRC §179 expensing of business purchased equipment and/or software from $25,000 to the previous $500,000 value and raising the purchase amount limit from $200,000 to $2,000,000.
The IRS Wants to Know Who You Paid
Taxonomy:
Tax & Accounting
Body:
As we move through the first few weeks of January, it is important to take critical steps regarding any people or businesses you have paid throughout 2014 to decide if a 1099 should be issued. Preparation for Form 1099 for the year 2014 has already begun. Should you need assistance preparing this form see the information below for clarification.
To prepare and complete Form 1099, you will need the following information for each recipient:
Luxemburg Tax Schemes
Taxonomy:
Tax & Accounting
Body:
Over 340 international companies have made secret deals in Luxemburg to save billions of dollars in taxes while maintaining little presence in the country based on leaked documents tied to the transactions. These large companies can save in taxes by creating accounting and legal structures in Luxemburg to effectively pay tax rates less than 1 percent of the profits shifted in this country. The leaked documents included diagrams of the complicated business structures and hundreds of pages of private tax rulings. These letters asked for favorable tax treatment for the corpor
State of New Jersey - New Legislation 2014
Taxonomy:
Tax & Accounting
Body:
Refunds of Partnership Payments on behalf of Nonresident Partners:
In response to the Tax Court decision in BIS LP, Inc. v. Director, Div. of Taxation, 2014 N.J. Tax (App. Div. Apr. 11, 2014), the new law clarifies the circumstances in which the tax paid by a partnership on behalf of its nonresident partners may be claimed.
In 2002, legislation was enacted to require NJ partnerships to make payments on behalf of their nonresident partners.
Inversions Update
Taxonomy:
Tax & Accounting
Body:
On Monday September 22, 2014, the IRS and Treasury issued new tax rules to attempt to deter inversions.
The first amended aspect of the rule is the IRS has removed hopscotch loans. This will prevent inverted companies from accessing a foreign subsidiary’s earnings while deferring U.S. tax through the use of creative loans. These loans are considered U.S. property for the purposes of applying the anti-avoidance rule.