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𝐅𝐑𝐄𝐄 𝐅𝐄𝐃𝐄𝐑𝐀𝐋 & 𝐒𝐓𝐀𝐓𝐄 𝐓𝐀𝐗 𝐑𝐄𝐓𝐔𝐑𝐍𝐒 (𝟏/𝟐𝟏/𝟐𝟎𝟐𝟎)

Many taxpayers can do both their federal and state tax returns for free online through Free File offered either by the IRS or by some states. Generally, for 2020, taxpayers whose prior-year adjusted gross income was $69,000 or less can use IRS Free File. The following states also have Free File program-Arkansas, Arizona, Georgia, Idaho, […]

𝐑𝐄𝐅𝐔𝐍𝐃𝐒 𝐟𝐫𝐨𝐦 𝐓𝐀𝐗 𝐄𝐗𝐓𝐄𝐍𝐃𝐄𝐑𝐒 (𝟏/𝟏𝟓/𝟐𝟎𝟐𝟎)

The recently enacted tax law retroactively extended a number of tax provisions that you may take advantage of by filing an amended return for a refund. The following were extended and may merit an amended return for a refund depending on your circumstances: • The AGI threshold on medical expense deductions won’t increase to 10% […]

𝐆𝐈𝐆 𝐄𝐂𝐎𝐍𝐎𝐌𝐘 𝐓𝐀𝐗 𝐂𝐄𝐍𝐓𝐄𝐑 (𝟏/𝟏𝟑/𝟐𝟎𝟐𝟎)

The Gig Economy Tax Center on IRS.gov helps people in this sector of the economy deal with their tax obligations. The Gig Economy Tax Center makes it easier for taxpayers to find information about the tax implications of their actions. And it provides resources on the following: • filing requirements • making quarterly estimated income […]

𝐓𝐀𝐗 𝐑𝐄𝐓𝐔𝐑𝐍 𝐅𝐈𝐋𝐈𝐍𝐆 𝐒𝐄𝐀𝐒𝐎𝐍 𝐒𝐓𝐀𝐑𝐓𝐒 𝐉𝐀𝐍𝐔𝐀𝐑𝐘 𝟐𝟕 (𝟏/𝟗/𝟐𝟎𝟐𝟎)

The IRS will begin accepting and processing 2019 individual returns on Monday, January 27. The deadline for filing 2019 tax returns and paying any tax owed is Wednesday, April 15, 2020. January 27 was chosen to ensure the security and readiness of key tax processing systems and to address the potential impact of recent tax […]

𝐑𝐄𝐓𝐈𝐑𝐄𝐌𝐄𝐍𝐓 𝐏𝐋𝐀𝐍 𝐂𝐇𝐀𝐍𝐆𝐄𝐒 𝐢𝐧 𝐭𝐡𝐞 𝐒𝐄𝐂𝐔𝐑𝐄 𝐀𝐂𝐓-𝐈𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥𝐬 (𝟏/𝟔/𝟐𝟎𝟐𝟎)

The SECURE Act, signed into law on December 20, 2019, makes a number of changes to retirement law rules for individuals. For individuals, the following major changes are: • Required Minimum Distributions can begin after an individual reaches the age of 72 (instead of 70). • Individuals can contribute to an IRA at any age. […]

𝐈𝐍𝐂𝐎𝐌𝐄 𝐓𝐀𝐗 𝐖𝐈𝐓𝐇𝐇𝐎𝐋𝐃𝐈𝐍𝐆 𝐇𝐄𝐋𝐏 𝐟𝐨𝐫 𝐒𝐌𝐀𝐋𝐋 𝐄𝐌𝐏𝐋𝐎𝐘𝐄𝐑𝐒 (𝟏𝟐/𝟏𝟖/𝟐𝟎𝟏𝟗)

The IRS issued a downloadable excel formatted spreadsheet help small employers calculate the amount of federal income tax to withhold from their employees’ wages. It will help employers deal with the new Form W-4 for 2020. Take the information the employee provides on the W-4, open the spreadsheet and follow the instructions. For more info, […]

𝐈𝐑𝐒 𝐑𝐄𝐏𝐎𝐑𝐓𝐒 𝟗𝟏.𝟐% 𝐂𝐎𝐍𝐕𝐈𝐂𝐓𝐈𝐎𝐍 𝐑𝐀𝐓𝐄 (𝟏𝟐/𝟏𝟔/𝟐𝟎𝟏𝟗)

In its annual report, the Criminal Investigation (CI) unit of the IRS reported a 91.2% conviction rate. Included in the above 91.2% 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 […]

𝐈𝐑𝐒 𝐌𝐀𝐊𝐈𝐍𝐆 𝐇𝐎𝐔𝐒𝐄 𝐂𝐀𝐋𝐋𝐒 – 𝐋𝐀𝐖𝐘𝐄𝐑 𝐔𝐏 ! (𝟏𝟐/𝟗/𝟐𝟎𝟏𝟗)

The IRS has announced agents will be visiting taxpayers in face-to-face meetings to resolve ongoing tax issues. Taxpayers will be interviewed to gather info. And when necessary, agents will engage in collection activities. For more info, see https://www.irs.gov/newsroom/special-irs-efforts-to-focus-on-tax-compliance-education-begin -𝐁𝐔𝐓 𝐑𝐄𝐌𝐄𝐌𝐁𝐄𝐑- Under the Taxpayer Bill of Rights, taxpayers have the right to retain an authorized representative […]

𝐒 𝐂𝐎𝐑𝐏𝐒 𝐍𝐎𝐓 𝐂𝐇𝐀𝐍𝐆𝐈𝐍𝐆 𝐭𝐨 𝐂 𝐂𝐎𝐑𝐏𝐒 (𝟏𝟏/𝟐𝟎/𝟐𝟎𝟏𝟗)

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 𝐍𝐎𝐖 ! – 𝐘𝐎𝐔 𝐍𝐄𝐗𝐓 ? (𝟏𝟏/𝟏𝟖/𝟐𝟎𝟏𝟗)

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 […]