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π’ππ„π‚πˆπ€π‹ $πŸ‘πŸŽπŸŽ π‚π‡π€π‘πˆπ“π˜ πƒπ„πƒπ”π‚π“πˆπŽπ π–πˆπ“π‡πŽπ”π“ πˆπ“π„πŒπˆπ™πˆππ† (𝟏𝟏/πŸ‘πŸŽ/𝟐𝟎𝟐𝟎)

A special new provision allows more people to easily deduct up to $300 in donations to qualifying charities this year. Following special tax law changes made earlier this year, cash donations of up to $300 made before December 31, 2020 are now deductible when people file their taxes in 2021. With this new change, individual […]

πˆπ‘π’ π‘π„ππŽπ‘π“π’ πŸ—πŸŽ.πŸ’% π‚πŽππ•πˆπ‚π“πˆπŽπ 𝐑𝐀𝐓𝐄 (𝟏𝟏/πŸπŸ‘/𝟐𝟎𝟐𝟎)

In its annual report, the Criminal Investigation (CI) unit of the IRS reported a 90.4% conviction rate. Included in the above 90.4% are tax, non-tax and narcotics crimes. Tax crimes involve refund fraud, identity theft, corporate fraud, public corruption and cyber crimes. Cyber crimes and crypto currencies are a particular recent focus. Non-tax crimes involve […]

𝐍𝐉 π€πƒπƒπˆπ“πˆπŽππ€π‹ $πŸ”πŸŽ πŒπˆπ‹π‹πˆπŽπ 𝐟𝐨𝐫 π’πŒπ€π‹π‹ ππ”π’πˆππ„π’π’ 𝐆𝐑𝐀𝐍𝐓 π€πππ‹πˆπ‚π€π“πˆπŽππ’ (𝟏𝟏/πŸπŸ–/𝟐𝟎𝟐𝟎)

New Jersey has committed to at least $60 million in additional Coronavirus, Aid, Relief and Economic Security (CARES) Act funding to fulfill grants under Phase 3 of the New Jersey Economic Development Authority’s (NJEDA’s) Small Business Emergency Assistance Grant Program. The funding is in addition to $70 million in federal funds already allocated for the […]

πˆπ‘π’ π€π”πƒπˆπ“ 𝐑𝐀𝐓𝐄 & ππ”πŒππ„π‘π’ π…π€π‹π‹πˆππ† 𝐟𝐨𝐫 πˆππƒπˆπ•πˆπƒπ”π€π‹π’ (𝟏𝟏/πŸπŸ”/𝟐𝟎𝟐𝟎)

Table 17a of the IRS 2019 Data Book (fiscal year October 1, 2018 to September 30, 2019) gives us statistical insights into IRS audit activities for a number of years. It classifies individual returns by income level and details returns filed, examined and the examination percentage. Two quick longitudinal analyses reveal that from 2013 to […]

ππ€π‘π“ππ„π‘π’π‡πˆππ’ & 𝐒 π‚πŽπ‘ππ’ πƒπ„πƒπ”π‚π“πˆπŽπ 𝐨𝐟 𝐒𝐓𝐀𝐓𝐄 & π‹πŽπ‚π€π‹ 𝐓𝐀𝐗𝐄𝐒 (𝟏𝟏/𝟏𝟐/𝟐𝟎𝟐𝟎)

The IRS has clarified the treatment of State and local income taxes imposed on a partnership or an S corporation. Such taxes will be deductible for those entities in computing their non-separately stated taxable income or loss for the taxable year of payment. Therefore, these taxes won’t be subject to the State and local tax […]

πˆπ‘π’ π–π„ππ’πˆπ“π„π’ 𝐟𝐨𝐫 π’πŒπ€π‹π‹ ππ”π’πˆππ„π’π’ πŽπ–ππ„π‘π’ (𝟏𝟏/πŸ—/𝟐𝟎𝟐𝟎)

For small business owners, the following IRS websites can help: β€’ Small Business and Self-Employed Tax Center This page features links to useful tools and common IRS forms with instructions. Taxpayers can find help on topics such as starting or operating a business, recordkeeping, filing and paying taxes. β€’ Self-Employed Individuals Tax Center This a […]

π‚π‘π˜ππ“πŽ 𝐖𝐀𝐋𝐋𝐄𝐓 π“π‘π€ππ’π€π‚π“πˆπŽπ π“π‘π„π€π“πŒπ„ππ“ (𝟏𝟏/πŸ“/𝟐𝟎𝟐𝟎)

The latest draft instructions to the 2020 Form 1040 deal with wallet transactions. Page 15 of the instructions lists transactions involving virtual currencies and deals with wallet transactions with this sentence: β€œA transaction involving virtual currency does not include the holding of virtual currency in a wallet or account, or the transfer of virtual currency […]

π‚π‡π„π‚πŠπ‹πˆπ’π“ 𝐟𝐨𝐫 π‚π‹πŽπ’πˆππ† 𝐚 ππ”π’πˆππ„π’π’ (𝟏𝟏/𝟐/𝟐𝟎𝟐𝟎)

Sadly, many businesses are closing. But knowing what to do can eliminate some uncertainty and pain. Below are the basic tax steps to take when closing a business: 1. FILE a FINAL RETURN and RELATED FORMS. The final return and forms needed will depend on the type of business. 2. FILE EMPLOYEE RELATED FORMS. Employment […]

𝐒 π‚πŽπ‘ππ’ ππŽπ“ π‚π‡π€ππ†πˆππ† 𝐭𝐨 𝐂 π‚πŽπ‘ππ’ (𝟏𝟏/𝟐𝟎/πŸπŸŽπŸπŸ—)

Fears that S Corporations would change their status to C Corporations to take advantage of their lower tax rates seem unfounded. The tax law lowered the tax rate for C Corps that are treated as separate entities for tax purposes and pay corporate taxes. S Corps don’t pay separate taxes like C Corps and their […]

𝐔𝐁𝐄𝐑 ππŽπ– ! – π˜πŽπ” 𝐍𝐄𝐗𝐓 ? (𝟏𝟏/πŸπŸ–/πŸπŸŽπŸπŸ—)

Media sources report that New Jersey’s Department of Labor and Workforce Development imposed a $650 million bill on UBER. Allegedly, UBER misclassified drivers as independent contractors instead employees. And in doing so, UBER avoided paying millions in normal payroll obligations. As detailed in our previous blog (NJ EMPLOYEE CLASSIFICATION AUDITS COMING-7/29/2019), New Jersey is increasing […]