2016 Tax update | TaxConnections

11 Jan 2017

Annual Report Released By The National Taxpayer Advocate

National Taxpayer Advocate Nina E. Olson released her 2016 Annual Report to Congress, recommending that the IRS revamp its “Future State” plan to adopt a taxpayer-centric focus and urging Congress to simplify the tax code. The report presents a series of proposals to improve tax administration, placing particular emphasis on changing the culture of the IRS. Olson explains that “to create an environment that encourages taxpayer trust and confidence, the IRS must change its culture from one that is enforcement-oriented to one that is service-oriented.”

Written by Kat Jennings | Posted in 2016 Tax update

21 Dec 2016

21st Century Cures Act Signed By President Obama

President Obama signed the 21st Century Cures Act into law creating an option for small businesses to offer employees a health reimbursement arrangement (HRA) that is funded by the employer.

Beginning January 1, 2017, the maximum employees can receive per year through the HRA is $4,950 for individuals who show they have individual coverage or up to $10,000 for workers who also have coverage for family members. The contribution cap will be indexed for inflation.

Written by John Dundon | Posted in 2016 Tax update • Health Care • United States

15 Nov 2016

Marijuana Taxes And Revenue For The States

There were numerous tax initiatives on ballots across the United States this year. One of the major tax initiatives was the legalization of marijuana and its subsequent taxing in eight states during the 2016 November election. Prior to the November elections, there were 26 states and the District of Columbia who legalized the use of marijuana, whether in the form of recreational use or medical use only. Now,California, Massachusetts, Nevada and Maine have all voted to allow the use of recreational marijuana. (As of now, the margin of victory in Maine is less than 1.5%, which means there will be a recount that does not affect the taxpayers.)

Written by Steven Rios | Posted in 2016 Tax update • State Tax • United States

10 Nov 2016

A List Of Provisions Expiring In 2016

Unless Congress passes legislation to extend them, the following provisions are set to expire on December 31:

2016:

Written by Harold Goedde | Posted in 2016 Tax update • Tax Provision/Tax Reporting

09 Nov 2016

Tax Changes For 2016

Standard Deduction

The amount for single and marred filing separate is $6,300 ($7,850 if 65 and over or blind), surviving spouse and married filing joint $12,600 plus $1,500 for each spouse 65 and over, or blind, heads of household $9,300 plus $1,250 if 65 and over or blind. For taxpayers claimed as a dependent on another return, it is the greater of (a) $1,050 or (b) $350 plus earned income. The amount can’t exceed the basic standard deduction.

Written by Harold Goedde | Posted in 2016 Tax Changes • 2016 Tax update

15 Sep 2016

Why Should Business Be Cautious Of The New Sales Tax Bill?

As we shared last week, Congress recently introduced two new online sales tax bills: Sensenbrenner’s H.R. 5893, which would make it harder for states to impose sales tax, and Goodlatte’s Online Sales Tax Simplification Act of 2016, which would make it much easier.

Written by Monika Miles | Posted in 2016 Tax Changes • 2016 Tax update • Sales/Use Tax • United States

15 Sep 2016

Retirement Savings Contribution Catch Up Considerations

If you will be 50 or older by the end of 2016, you may be able to contribute more money every year to your employer-sponsored retirement plans and your individual retirement arrangements. Contributing more money will help you save more for your retirement and reduce your taxable income if you make pre-tax retirement plan contributions or deductible IRA contributions.

Written by John Dundon | Posted in 2016 Tax update • Tax Forms

15 Sep 2016

Sharing Economy Encouraged To Share With And By The IRS

If you’ve ever been picked up by an Uber driver or know someone who’s rented a room through Airbnb, then you are aware of the ‘sharing economy.’

In the past few years, the ‘sharing economy’ has become a targeted focal point for the IRS. Needless to say, they really want their “fair share” of this rapidly growing business segment.

Written by Barry Fowler | Posted in 2016 Tax update • Form 1099 • IRS

12 Sep 2016

Non-business Capital Gains and Losses—Government Debt Securities

This article discusses debt securities issued by the federal government—treasury securities and savings bonds and non-taxable bonds issued by states and municipalities.

U.S. Treasury Bonds and Notes

Non-inflation adjusted securities. Read More

Written by Harold Goedde | Posted in 2016 Tax update • Capital Gains • United States

08 Sep 2016

Online Sales Tax Debate – Still Going On?

For several years, the online sales tax debate has been tossed around Capitol Hill, but has gained little traction in Congress. However, two new bills introduced recently add some new fodder for discussion. One bill makes it harder to impose sales tax, while the other makes it much easier. Will either pass?

Written by Monika Miles | Posted in 2016 Tax Changes • 2016 Tax update • Sales/Use Tax • United States

05 Aug 2016

House Republican’s Tax Reform Blueprint

On August 24, 2016, the House Republican’s released the last part of their six-part vision/plan known as “A Better Way.” That part deals with tax reform. The plan offers some significant changes including moving business taxation to a consumption tax model at low rates (20% for corporations and a maximum of 25% for flow-throughs).

Written by Annette Nellen | Posted in 2016 Tax update • Tax Reform

30 Jun 2016

The Enhanced R&D Tax Credit Program Provides A True Path To Significant Tax Savings For Small Businesses

The Protecting Americans from Tax Hikes Act of 2015 (hereinafter the “PATH Act”) significantly enhanced the Federal-Level R&D Tax Credit Program (hereinafter “RTC Program”) under I.R.C. § 41 on a myriad of levels for both eligible “Small Businesses” and eligible “Start-Up Companies”. More specifically, the enhanced RTC Program has been considerably restructured for these aforementioned eligible companies to now: