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Qualified Domestic Relations Order
We recently had a new client in the office that had gone through a divorce and in the course of events, one spouse withdrew $80,000 prematurely from a 401-k in order to settle the property settlement. Because the attorneys involved did not address the issue, it cost the couple $8,000 in early withdrawal penalties that…
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Understanding the March 15 Deadline for Passthrough Entities
As the tax season approaches, it’s crucial for owners and members of passthrough entities, such as S-Corporations and Partnerships, to be aware of the critical deadlines that affect their tax filing responsibilities. One of the most important dates to remember is March 15. This deadline is set for these entities to file their tax returns,…
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IRS Alert
Beware of companies misrepresenting nutrition, wellness and general health expenses as medical care for FSAs, HSAs, HRAs and MSAs Amid concerns about people being misled, the Internal Revenue Service today reminded taxpayers and heath spending plan administrators that personal expenses for general health and wellness are not considered medical expenses under the tax law. This…
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Today is Sunday March Third
This past week was a very good one. As of Saturday March Second, we had prepared 969 tax returns. This puts well ahead of our goal, which is to file 1,050 by March Tenth (the half-way point of tax season). This past week we handled 821 telephone calls. There were 353 incoming calls and 468…
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Form 1099-K
What taxpayers should do if they received a Form 1099-K in 2024 If a taxpayer sold goods or services in 2023 and received payments through certain payment apps or online marketplaces or accepted payment cards, they could have received a third party reporting document Form 1099-K, Payment Card and Third Party Network Transactions. Following feedback…
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March 1 Tax Deadline
Cook and Company reminds farmers and fishers who chose to forgo making estimated tax payments by January that they must generally file their 2023 federal income tax return and pay all taxes due by Friday, March 1, 2024. The special March 1, 2024, deadline allows farmers and fishers to avoid any estimated tax penalties. Though…
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IRS begins Audits of Corporate Jet Usage
Using Inflation Reduction Act funding and as part of ongoing efforts to improve tax compliance in high-income categories, the Internal Revenue Service announced today plans to begin dozens of audits on business aircraft involving personal use. The audits will be focused on aircraft usage by large corporations, large partnerships and high-income taxpayers and whether for…
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Sunday Tax Blog
18 February 2024 Today is National Battery Day. Today is also Sunday, the only day we take a break from the hectic pace at the office during tax season. As of today, we’ve prepared and filed 614 tax returns. Telephone Traffic This past week we had 309 incoming telephone calls and 426 outgoing calls. The…
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Pass-Through Entities
Understanding the Tax Filing Due Dates for Pass-Through Entities In the realm of business taxation in the United States, understanding the intricacies of tax filing deadlines is crucial for entities to maintain compliance and optimize their tax responsibilities. Among these complexities are the filing due dates for pass-through entities, such as Subchapter S corporations (S…
