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.
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.
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:
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
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.
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.
On September 17, 2014 the Division of Taxation launched its 2014 Fall Outreach Initiative. For a limited time businesses and individuals that have unpaid tax liabilities from tax periods 2005 through 2013 in the state of New Jersey, are being offered an easy way to request and enter into a closing agreement with the division in order to satisfy outstanding tax liabilities.
Individuals and businesses can reduce or eliminate their accumulated penalties and fees if they pay in full by November 17, 2014.
On June 10, 2014 the IRS adopted the Taxpayer Bill of Rights. Every taxpayer has 10 fundamental rights they should be aware of when dealing with the IRS.
The IRS is starting to increase their scrutiny on tech companies for the free meals provided to employees throughout the work day. Currently, this perk is tax-exempt, but recent audits by the IRS have shown these are being classified as a taxable fringe benefit.
On September 1st the Massachusetts Department of Revenue (DOR) began a two month period, which ends October 31, 2014, that cuts late tax payers a potentially huge break.
If you owe money to the Massachusetts DOR, as an Individual or a corporation, you may very well qualify for what they are calling a Tax Amnesty. What this Amnesty does is allow you to waive any late penalties that you have accrued on your state taxes.