TaxConnections invites each of you to participate in an important journey! A journey that will engage you in the making of new tax laws in the United States Committee on Ways and Means! The Committee on Ways And Means is the chief tax-writing committee of the United States House of Representatives and all bills regarding taxation must go through this committee.
We have a new Congress and new President – all of the same party. Tax reform discussions and hearings have been held for the past six years. In June 2016, the House Republicans released their “blueprint” for tax reform. So, will we see tax reform in 2017? If yes, what might it look like?
So, you lived through 2016 even though you find yourself in the unenviable position of either not having filed your taxes for several years or owing the IRS back taxes that you just don’t know how to pay, and the fees and penalties keep accruing. This article is for you.
The IRS says that to deduct your mileage as a business expense on your tax return you must keep a record of your business trips during the year and the total miles your drive. This is often used for the mileage deduction for business use of a personal car. But, what happens if you use your business car only for work purposes? Do you still need a mileage log?
So you get all your tax information together early and go to your preparer so you can file your tax return early and get the refund quickly. Not so fast. Certain refunds will be delayed and will not be released by the IRS until February 15. This is due to a provision in the PATH Act, enacted by Congress in 2015, prohibiting the IRS from releasing certain refunds prior to February 15. This provision takes effect this year. Note that the 15th is the release date, so it will take a few more days for you to receive the refund.
What are Government Taxes Payable on a Balance Sheet?
The Government Taxes Payable category appears under Current Liabilities on a Balance Sheet as it is expected that the amounts owing will be paid within one year. It represents funds that a company has an obligation to pay to government bodies such as Canada Revenue Agency (CRA).
Few business owners relish spending money on something they don’t need. And for most owners, hiring an expert to estimate the value of their companies falls into that don’t-need category.
So it is no surprise that owners typically respond to an exit planning advisor’s recommendation to get an estimate of value for the company with some variation of: “Now? But I’m not planning to leave for years!” or “I built this company so I—better than any so-called expert—know what it is worth!”
Understanding and using video is a powerful tool to have for your business. Looking at past trends, 2016 seems to be a huge year for using video. it has been reported that 61% of businesses in the United States have started using video as a form of marketing. About 66% of these business did not use video in 2015.
What do software companies need to know about when it comes to multi-state tax issues? Last year we shared an overview of nuances many in the field don’t think about, but need to consider when it comes to their organization. As a large portion of the technology industry, it is important that software companies are aware of how matters such as nexus, as well as individual state sales tax and income tax laws, may affect them.
If you thought FBAR penalties were more bark than bite, a recent U.S. District court case is sure to change your mind.
In United States v. August Bohanec et ux, USDC CD Ca., No. 2:15-cv-04347 (December 2016), the Court found that the taxpayer’s failure to file the FBAR was willful and affirmed the IRS’s enhanced FBAR civil penalty, i.e., a fine equal to the greater of $100,000 or 50% of the balance in their unreported accounts.
When it comes to tracking your miles for taxes, we often talk about the mileage deduction and the mileage reimbursement. But there are other tax reasons to keep a mileage log. Let’s dive into the medical expense deduction and what role medical mileage plays. We’ll also discuss who can take this deduction, as well as what records you have to keep.