The Internal Revenue Service began a new private collection program of certain overdue federal tax debts selecting four contractors to implement it.
The new program, authorized under a federal law enacted by Congress, enables these designated contractors to collect, on the government’s behalf, outstanding inactive tax receivables. Authorized under a federal law enacted by Congress in December 2015, Section 32102 of the Fixing America’s Surface Transportation Act (FAST Act) requires the IRS to use private collection agencies for the collection of outstanding inactive tax receivables.
Last week the caller ID on my home phone displayed a call from Rochester, NY. It was an automated call which apparently started before my voicemail picked up. If I didn't know better, I might have been worried by what the computer voice told me.
The idea has been tossed around for years, and politicians love to suggest it would be a priority, but the postcard 1040 might finally become a reality.
As part of a larger effort to help taxpayers, the Internal Revenue Service plans to streamline the Form 1040 into a shorter, simpler form for the 2019 tax season.
In 1967 and again in 1992 the Supreme Court said a physical presence was required for retailers to be required to collect and remit sales tax. These two cases (National Bellas Hess, Inc. v. Department of Revenue of Ill., 386 U.S. 753 and Quill Corp. v. North Dakota, 504 U.S. 298) have now been overturned in a 5-4 verdict with what the Supreme Court says were "incorrect interpretation[s] of the Commerce Clause."
Without the physical presence requirement, states can now claim nexus for sales and use tax purposes, and sellers will have to deal with tax requirements at buyer locations.
Meals and entertainment expenses have a long history in business. They have been used to strengthen business relationships with colleagues, peers, and existing or potential clients. The deductions allowed have varied depending on the type of expenditure.
Under the new Tax Cuts & Jobs Act the amounts of deductions allowed have been updated effective January 1, 2018. Following is a quick analysis of the old and new rules.
Taxpayers need to be wary against scam groups masquerading as charitable organizations, luring people to make donations to groups or causes that don't actually qualify for a tax deduction. These ‘fake’ charities attempt to attract donations from unsuspecting contributors, using a charitable reason and a tax deduction as bait for taxpayers. Fake charities are one of the “Dirty Dozen” tax scams for the 2018 filing season.
Compiled annually, the “Dirty Dozen” lists a variety of common scams that taxpayers may encounter anytime, but many of these schemes peak during filing season as people prepare their tax returns or hire someone to prepare their taxes.
The Internal Revenue Service recently introduced the Tax Exempt Organization Search (TEOS), a new online tool on IRS.gov designed to provide faster, easier access to publicly available information about exempt organizations. It replaces EO Select Check, a more limited tool available since 2012 that focused primarily on providing information on an organization’s tax-exempt status.
"This new tool provides taxpayers an easy way to get information about charitable organizations," said Acting IRS Commissioner David Kautter. "Tax-exempt organizations play a critical role in our nation, and this will provide greater insight for people considering donations." By ensuring the entity you want to donate to is a qualified charitable organization, you are making sure your gift is allowed as a charitable deduction.
Everyone loves getting a refund. The only thing better than getting a refund check in the mail is getting a refund direct deposited a few weeks earlier.
Sometimes there is a problem, and the refund doesn't show up when expected. If that happens to you, here's what to do.
Typically when property is sold any gain must be reported as taxable income. IRS Code Section 1031 allows for the deferral of tax of gain on sale of property by so-called like-kind exchanges, also known as 1031 exchanges. They work under the simple premise implied by the name: property is exchanged for like-kind property, and when all the rules are followed any gain that would have been taxable is deferred.
The deferral is allowed because the basis in the newly acquired property is reduced by the amount of gain recognized. Thus, the gain is eventually recognized when the new property is sold, because the decreased basis increases the amount of gain on sale (unless, somehow, the gain is deferred again by another like-kind exchange).
The Tax Cuts and Jobs Act changed the way tax is calculated. The IRS encourages everyone to perform a “paycheck checkup” to see if you have the right amount of tax withheld for your personal situation.
Among the groups who should check their withholding are:
Next Step Blog
Our blog is intended as a tool to keep people informed about relevant tax and accounting issues. If you have a question or an idea for a post, let us know!