Latest News

Got a Notice from the IRS - Now What?

If you receive an audit notice from the IRS, do not panic. Just breathe! Read the letter in its entirety to see what they are auditing. In many cases, it's a great idea to hire a tax representation professional to deal with the audit, especially if it's a field audit (described below). Why You An audit can be triggered in any number of ways. It could be that the IRS computer randomly pulled your... Read More

Tax Strategies for the Retired Taxpayer

After years of saving for retirement, it's time to start using those savings-even if you don't really need to. Once you reach 70 ½ years old, you must begin taking annual distributions from your qualified retirement plan. This is called a required minimum distribution (RMD.) If you don't take your RMD, the IRS imposes a severe penalty-it's a tax of 50% of the amount that was not withdrawn in time!... Read More

TCJA & Understanding Changes to Mortgage Interest Deduction

The Tax Cuts and Jobs Act of 2018 changed both the type of mortgage interest that can be deducted as well as the amount of interest that can be deducted. Acquisition Debt vs. Equity Debt Acquisition Debt is incurred in acquiring, constructing, or substantially improving any qualified residence of the taxpayer and must be secured by the taxpayer's residence. Equity Debt is all other debt... Read More

Dec 2019/Jan 2020 Dates to Remember

December 10, 2019 Employees who work for tips. If you received $20 or more in tips during November, report them to your employer. You can use Form 4070. December 16, 2019 Corporations- Deposit the fourth installment of estimated income tax for 2019. A worksheet, Form 1120-W helps to estimate the tax for the year. Employers ‐ For Social Security, Medicare,... Read More

Protecting Yourself from Tax Scams

There are many tax scams out there with the purpose of stealing your identity, stealing your money, or filing fraudulent tax returns using your private information. Tax scammers work year-round, not just during tax season, and target virtually everyone. Stay alert to the ways criminals pose as the IRS to trick you out of your money or personal information. IRS-Impersonation Telephone... Read More

Due Diligence Requirements

As your tax professional, we may be asking you additional questions next year that are required by the Tax Cuts and Jobs Act. Tax preparers must collect new information from clients who qualify for any of the following tax credits: Earned Income Tax Credit (EIC) Child Tax Credit (CTC) American Opportunity Tax Credit (AOTC) Head of Household filing status (HOH) In addition to... Read More

Complying with FBAR: Foreign Bank and Financial Accounts

Complying with FBAR: Foreign Bank and Financial Accounts If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Department of Treasury by electronically... Read More

November Dates to Remember

November deadlines Nov 12 - Employers- For Social Security, Medicare, and withheld income tax, file Form 941 for the third quarter of 2019. This due date applies only if you deposited the tax for the quarter in full and on time. Nov 12- Form 4070- Employees use form 4070 to report tips to the employer. This includes cash tips, tips received from other employees, and debit and credit card tips for tips... Read More

Tax Treatment of Legal Settlements and Judgements for Individuals

If you're involved in a lawsuit or a court case (except as a juror), you may want to get up to speed on how court settlements and judgements are taxed. Settlements and judgements are taxed the same-if you win a judgement or settle a case, the same tax rules apply. In most cases, the IRS will consider the settlement/judgement as taxable income, unless it falls within certain guidelines. If you... Read More