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IRS provides tax inflation adjustments for tax year 2020
The Internal Revenue Service today announced the tax year 2020 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2019-44 provides details about these annual adjustments. The tax law change covered in the revenue procedure was added by the Taxpayer First Act of 2019,…
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401(k) contribution limit increases to $19,500 for 2020; catch-up limit rises to $6,500
The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $19,000 to $19,500. The catch-up contribution limit for employees aged 50 and over who participate in these plans is increased from $6,000 to $6,500. The limitation regarding SIMPLE retirement accounts for 2020…
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Our Phones Were Down All Morning ….
Otelco had an issue and the phones are back up now. If you called earlier and got a quick busy signal, please call again. (256) 586-4111
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Fall is Here!
Our office will be closed on Columbus Day, Monday October 14th.
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Extension of Replacement Period for Livestock Sold on Account of Drought
Notice 2019- 54 SECTION 1. PURPOSE This notice provides guidance regarding an extension of the replacement period under § 1033(e) of the Internal Revenue Code for livestock sold on account of drought in specified counties. SECTION 2. BACKGROUND .01 Nonrecognition of Gain on Involuntary Conversion of Livestock. Section 1033(a) generally provides for nonrecognition of gain…
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The Risk of an IRS Audit
The risk of an IRS Audit is actually pretty low for most people, however, there is one subgroup of taxpayers where an IRS Audit is certain. The President and Vice President of the United States are subject to MANDATORY AUDITS each year as required by Section 4.2.1.15 of the Internal Revenue Manual. 4.2.1.15 (04-23-2014) Processing…
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Fail to Pay your Taxes, Get your Passport Revoked
Individuals with significant tax debt should act promptly to avoid revocation of passports. The Internal Revenue Service today urged taxpayers to resolve their significant tax debts to avoid putting their passports in jeopardy. They should contact the IRS now to avoid delays in their travel plans later. Gregory J. Cook, EA, CPAAccredited Tax Advisor Under…
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IRS is sending Letters to Virtual Currency Owners
The Internal Revenue Service has begun sending letters to taxpayers with virtual currency transactions that potentially failed to report income and pay the resulting tax from virtual currency transactions or did not report their transactions properly. “Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and…
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Buying a Home
People who buy a new home this year can only deduct mortgage interest they pay on a total of $750,000 in qualifying debt for a first and second home. It’s $375,000 if married filing separately. NOTE: For existing mortgages, if the loan originated on or before Dec. 15, 2017, taxpayers continue to deduct interest on…
