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Tomorrow is April 1st!
Everyone please remember my rule of NO APRIL FOOL jokes or pranks. We all have been working very hard and long hours and we are about to reach our finish line for another successful tax season. Greg
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Is your activity a business or a hobby?
If you do not carry on your business or investment activity to make a profit, you cannot use a loss from the activity to offset other income. Activities you do as a hobby, or mainly for sport or recreation, are often not entered into for profit. The limit on not-for-profit losses applies to individuals, partnerships,…
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Payroll Tax Deposit Due Dates
In general, you must deposit federal income tax withheld and both the employer and employee social security and Medicare taxes. There are two deposit schedules, monthly and semi-weekly. Before the beginning of each calendar year, you must determine which of the two deposit schedules you are required to use. The deposit schedule you must use…
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Announcement Regarding April 15 Tax Filing Deadline
Because the deadline falls on Monday, we will be unable to schedule tax appointments that day. We will be filing extensions that day. When we electronically file a tax return, it takes 24-48 hours to receive the acknowledgement of acceptance or rejection notice from the federal and state governments. Should a return REJECT for any…
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IRS Revises EIN Application Process
WASHINGTON — As part of its ongoing security review, the Internal Revenue Service announced today that starting May 13 only individuals with tax identification numbers may request an Employer Identification Number (EIN) as the “responsible party” on the application. An EIN is a nine-digit tax identification number assigned to sole proprietors, corporations, partnerships, estates, trusts,…
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Democratic Republic of the Congo, Cuba, Iraq, and Nicaragua added to the list of waiver countries
Revenue Procedure 2019-15 provides a waiver for the time requirements for individuals electing to exclude their foreign earned income who must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country. Rev. Proc. 2019-15 adds the Democratic Republic of the Congo, Cuba, Iraq, and Nicaragua to the list of…
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Taxpayer Bill of Rights outlines rights for all taxpayers
Every taxpayer has rights when dealing with the IRS. The Taxpayer Bill of Rights takes these rights from the tax code and groups them into 10 categories. To help taxpayers interacting with the IRS understand their rights, the agency outlines them in Publication 1, Your Rights as a Taxpayer. Here are the first five rights…
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Be Prepared for your Tax Appointment
Message to New Clients – It is to your great advantage to be prepared to answer the agent’s questions during the interview process. For example, when the agent asks “how much out-of-pocket medical expense did you have last year?” You should be able to answer $3,192 or whatever dollar amount. Do not pull out a…
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Foreign Account Tax Compliance Act
FATCA refers to the Foreign Account Tax Compliance Act that requires reporting on specified foreign accounts by U.S. taxpayers and foreign financial institutions. In general, federal law requires U.S. citizens to report worldwide income, including income from foreign trusts and foreign bank and securities accounts. The Foreign Account Tax Compliance Act (FATCA), which was passed…
