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Tax Advisor’s Guide On President Trump’s Executive Orders: URGENT! RESPOND BEFORE MAY 14, 2018

Tax Advisors would never know what was hidden in these regulations unless they conduct extensive research which we did for our members. We provide tax advisors our hours of research with links to the Code of Federal Regulations.

Based on a preliminary review, these proposals could be very far reaching and effect a wide range of our member’s clients. These proposals deserve your immediate attention and review.  You should study this very important information to make comments or request a public hearing on areas that may impact your clients. If you want to comment or request a public hearing you must do so before May 14, 2018.

Request your complimentary copy at this link: https://www.taxconnections.com/tax-advisors-reference-guide-on-president-trumps-executive-orders

 

National Taxpayer Advocate Nina Olson Testifies

Nina Olson, Taxpayer Advocate, Tax Blog, Washington D.C., USA, TaxConnections

National Taxpayer Advocate Nina E. Olson testified before the House Subcommittee on Health Care, Benefits, and Administrative Rules and Subcommittee on Government Operations Committee on Oversight and Government Reform on Oversight today at a hearing entitled, “Continued Oversight Over the Internal Revenue Service.”

As you know, I lead the Taxpayer Advocate Service (TAS), an independent organization within the IRS that advocates for taxpayers. TAS has two main functions – “case advocacy” and “systemic advocacy.” In most years our case advocacy operations
assist more than 200,000 taxpayers in resolving account problems with the IRS.2 On the systemic side, TAS identifies problems that are harming groups of taxpayers, and we make administrative and legislative recommendations to mitigate those problems.

Read More

Many Corporations Will Pay A Blended Federal Income Tax This Year Under The New Tax Reform Law

Tom Kerester, Tax Ambassador, Tax Blog, Washington D.C., USA, TaxConnections

WASHINGTON – Many U.S. corporations elect to use a fiscal year end and not a calendar year end for federal income tax reporting purposes.  Due to a provision in the recently enacted Tax Cuts and Jobs Act (TCJA), a corporation with a fiscal year that includes Jan. 1, 2018 will pay federal income tax using a blended tax rate and not the flat 21 percent tax rate under the TCJA that would generally apply to taxable years beginning after Dec. 31, 2017.

Corporations determine their federal income tax for fiscal years that include Jan. 1, 2018, by first calculating their tax for the entire taxable year using the tax rates in effect prior to TCJA and then calculating their tax using the new 21 percent rate, subsequently proportioning each tax amount based on the number of days in the taxable year when the different rates were in effect.  Read More

2018 Car And Truck Depreciation Limits Explained

Daniel Morris, Tax Blog, Tax Advisor, San Jose, California, USA, TaxConnections

For this year’s 2018 Depreciation Limits, business use vehicles offer opportunities and challenges. Claiming depreciation as a business expense for personally available vehicles is a clear advantage. As is common, a “but” is included due to special rules known as “Listed Property” attributes. These rules recognize there are both personal and business attributes associated with the same asset; the vehicle has a value to the individual and their business using the vehicle which has necessitated specific 2018 Car and Truck Depreciation Limits.

The conceptual challenge is that there are differences between a business van say, for a “Construction Person”, and the “Executive” with a new Mercedes, known as Listed Property. Read More

Blockchain And Corporate Taxation: Change Is Coming

Scott Nelson, Tax Advisor, Tax Blog, San Francisco, California, USA, TaxConnections

While the technology can sound quite complex, a blockchain is essentially an immutable, distributed ledger. This means that instead of a single, third-party record holder, every authorized party within the blockchain holds an instantly updated record of all transactions. Blockchain maintains data integrity this way because it’s virtually impossible to alter the data of every single ledger. Any discrepancies found will be compared against every ledger and any fraudulent data found will be disregarded. Read More

Important Facts To Know About IRS Levy

Bernell Ward, Tax Advisor, Tax Blog, Bronx, New York, USA, TaxConnections

A levy is a legal seizure of your property to satisfy a tax debt. Refusal to pay the tax will have the following result. The IRS will usually issue a levy after they assess the tax and send a tax bill or a Notice and Demand for Payment.

If you still refuse to pay, then the IRS will issue a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before the levy. The IRS may give you this notice in person, leave it at your home or business, or send it to your last known address by certified or registered mail with return receipt request. Read More

One Of The Latest Tax Scams To Be Aware Of And How It Works

Tax Scam, IRS Scam, Barry Fowler, Tax Blog, Tax Advisor, Houston, Texas, USA, TaxConnections

I have written frequently about the multitude of tax scams.

And once again, the scammers have found a way to play to and outwit your insatiable curiosity. Here’s one of the latest scams to be aware of, and how it works.

Scammers know that more and more people are screening and not answering calls from unrecognized or private numbers. So now, the crooks have developed software that allows them to display irresistible ‘fake’ numbers. Read More

Combat Zone Tax Benefits Now Available To Armed Forces Members Who Served In The Sinai Peninsula

Tom Kerester, Tax Ambassador, Tax Blog, Washington D.C., USA, TaxConnections

WASHINGTON — U.S. Armed Forces members who served in the Sinai Peninsula of Egypt may qualify for combat zone tax benefits retroactive to June 2015, according to the Internal Revenue Service.

Under the Tax Cuts and Jobs Act (TCJA) enacted in December 2017, members of the U.S. Army, U.S. Navy, U.S. Marines, U.S. Air Force, and U.S. Coast Guard who performed services in the Sinai Peninsula can now claim combat zone tax benefits. Eligible service members should review Publication 3, Armed Forces’ Tax Guide, available on IRS.gov. Read More

Tips For Staying One Step Ahead Of Tax Issues

Jon Neal, Tax Advisor, Tax Blog, Milwaukee, Wisconsin, USA, TaxConnections

The last thing you need as a small business owner is to have to spend time unraveling tax problems you could have avoided. There are many tax issues that can trip up small business owners — here are a few.

Mixing Business And Personal

Keeping your personal bank and credit card accounts separate from your business accounts isn’t always easy. But “commingling” business and personal accounts creates a record keeping nightmare. When it’s tax time, you may not be able to identify all the appropriate business expenses. As a result, it could be difficult to accurately determine your business income and you might lose deductions. Read More

Government Grants For Small Businesses, Financial Assistance For Entrepreneurs

Small Business Tax, Government Grant, Business Revenue, Mile IQ, Tax Blog, TaxConnections

On the hunt for free money for your small business? Government grants are one source. But funding from Uncle Sam isn’t as easy to come by as you might think. Find out who is eligible for government grants for small business and how to find and apply for grants.

Which Businesses Are Eligible For Government Grants?

Essentially, the source of grant funding comes from tax money allocated through the legislative and executive branches of government. As a result, a limited number of government grants are available and only to select business types. Read More

How To File U.S. Tax Return If You Are A U.S. Citizen Living In The UK

Olivier Wagner, Tax Traveler, Tax Blog, Vancouver, Canada, TaxConnections
Recently we’ve been asked to cover the topic on filing US federal income tax return if you are a US citizen living in the UK. You asked and we delivered! Read further to learn more about your US and UK tax obligations.
The starting point for any US expat tax-related topic is gaining a clear understanding who needs to file US taxes. Individuals, who are US citizens, including the ones with dual citizenship (UK/US in this case), or Green Card holders abroad who earn a minimum threshold for filing a US tax return are required by US tax law to file a tax return and pay taxes you may owe. Below are numbers for 2017:

Read More

Residential Property Tax Abatements: Are You Overpaying Your Property Taxes?

Thomas Zaino, Tax Blog, Tax Advisor, Columbus, Ohio, USA, TaxConnections

It is no secret that tax incentives are commonly offered to businesses in exchange for job creation and community development. It is lesser known, however, that tax incentives serving a similar purpose are also offered to owners of residential property. Community Reinvestment Areas, or “CRAs,” are designated areas within municipalities or unincorporated county areas that local governments designate as neighborhoods containing housing facilities or structures of historical significance and where “new construction” is discouraged. The underlying goal of establishing a CRA is to revitalize, rehabilitate, and remodel existing structures within the boundary of the CRA. Ohio currently has over 400 cities, townships, and villages with established CRAs. Read More

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