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Archive for Thomas Kerester

Interest On Home Equity Loans Often Still Deductible Under New Law

WASHINGTON – The Internal Revenue Service today advised taxpayers that in many cases they can continue to deduct interest paid on home equity loans.

Responding to many questions received from taxpayers and tax professionals, the IRS said that despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labelled. The Tax Cuts and Jobs Act of 2017, enacted Dec. 22, suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer’s home that secures the loan. Read more

Fisherman Hooked On March 1st 2018 Estimated Tax Deadline

WASHINGTON ― The Internal Revenue Service is reminding fisherman about the March 1 deadline to take advantage of special rules that can allow them to forgo making quarterly estimated tax payments.

Anyone with income from their fishing business may be able to avoid making any estimated tax payments by filing their 2017 return and paying the entire tax due on or before March 1, 2018. This rule generally applies if farming or fishing income was at least two-thirds of the total gross income in either 2017 or the preceding tax year. Read more

IRS Recommends Steps To Minimize Effect Of Data Theft

Every day, the theft of personal and financial information puts people at risk of identity theft. Generally, thieves try to use the stolen data as quickly as possible to:

  • Sell the information to other criminals.
  • Withdraw money from a bank account.
  • Make credit card purchases.
  • File a fraudulent tax return for a refund using victims’ names.

Victims of a data loss should follow these steps to minimize the effect of the theft: Read more

Security Summit Partners Warn Tax Pros Of Heightened Fraud Activity As Filing Season Approaches

WASHINGTON – The Internal Revenue Service, state tax agencies and the tax industry today warned tax professionals of early signs that cybercriminals already are at work as the nation’s tax season approaches. Fraudsters are using a new round of emails posing as potential clients or even the IRS to trick tax practitioners into disclosing sensitive information.

The Security Summit partners encourage tax practitioners to be wary of communicating solely by email with potential or even existing clients, especially if unusual requests are made. Data breach thefts have given thieves millions of identity data points including names, addresses, Social Security numbers and email addresses. If in doubt, tax practitioners should call to confirm a client’s identity.  Read more

Do You Know About These Valuable Resources Through TaxConnections?

Thomas Kerester, Tax Blog, Tax Advisor, TaxConnections., Washington DC

Did you know that you are one click away from reading the provisions of all the Tax Treaties currently in effect between the United States and other countries around the world at TaxConnections?

Did you know you can reach TaxConnections Members  who are highly trained experts in international tax  who are easily accessible and available to assist you?

Did you know select TaxConnections Members have served on the Tax Staffs of Congressional Tax Writing Committees and participated in the Congressional Legislative process including offering testimony before Committees?

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IRS Urges Travelers Requiring Passports To Pay Their Back Taxes Or Enter Into Payment Agreements; People Owing $51,000 Or More Covered

WASHINGTON ─ The Internal Revenue Service today strongly encouraged taxpayers who are seriously behind on their taxes to pay what they owe or enter into a payment agreement with the IRS to avoid putting their passports in jeopardy.

This month, the IRS will begin implementation of new procedures affecting individuals with “seriously delinquent tax debts.” These new procedures implement provisions of the Fixing America’s Surface Transportation (FAST) Act, signed into law in December 2015. Read more

Sorry Folks- Internal Revenue Service No Longer Accepts Your Fax

All Forms 8809, Application for Extension of Time to File Information Returns, filed on paper are now processed by the Internal Revenue Service Center in Ogden, Utah. These paper forms must be mailed. Faxes will not be accepted.

The Department Of The Treasury Mailing Address Is:

Department Of The Treasury
Internal Revenue Service Center
Ogden, UT 84201-0209

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IRS Issues Guidance On Changes In Accounting Periods Related To The Transition Tax

WASHINGTON – The Treasury Department and the Internal Revenue Service (IRS) announced modifications to the procedures for changing the accounting period of foreign corporations owned by U.S. shareholders that are subject to the transition tax under the Tax Cuts and Jobs Act.

On Dec. 29, 2017, the Treasury Department and the IRS provided initial guidance on computing the transition tax in Notice 2018-07.  On Jan. 19, 2018, the Treasury Department and the IRS provided additional guidance in Notice 2018-13. Read more

National Taxpayer Advocate Delivers Annual Report To Congress; Discusses Tax Reform Implementation And Unveils “Purple Book”

WASHINGTON — National Taxpayer Advocate Nina E. Olson today released her 2017 Annual Report to Congress, describing challenges the IRS will face as it implements the recently enacted tax reform legislation and unveiling a new publication, “The Purple Book,” that presents 50 legislative recommendations intended to strengthen taxpayer rights and improve tax administration.

The report also examines a wide range of other tax administration issues, including the IRS’s administration of the private debt collection program, the agency’s increasing emphasis on online taxpayer accounts, and its implementation of a recent law that would deny or revoke the passports of taxpayers with significant tax debts. Read more

Need To Register As A Lobbyist? A Must Read!

Tom Kerester, lobbying,

Moving on to a more serious question, are the actions you, your staff, or your client take subject to the Federal Lobbying Disclosure Act (LDA), effective as of January 1, 2008 and revised as of January 31, 2017? This highly technical Act is a must read by all persons involved in contacting Members of Congress and/or their staff.

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Contacting Members of Congress – Dos And Do Nots

Tom Kerester

Members of Congress have many sources from which they can obtain critical information on the impact a proposed tax will have on taxpayers generally. But they value most the information they obtain from tax practitioners who deal with tax matters hourly and daily. So, take advantage of the opportunity to furnish the Members of Congress the vital and critical information they need and cannot obtain that information elsewhere. Please review the list of The Dos and The Do Nots.

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Approval Process Of International Tax Treaties By United States

Tom Kerester

Foreign countries across the world have intricate tax treaties with the United States, which include topics such as exchanging tax information with tax authorities. In order for these tax treaties to come to fruition, they must first pass through the Executive and Legislative Branches of the U.S. Government for approval.

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