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Surprise! Surprise! 2018 – IRS Individual Tax Return 1040 FORM

Searching for the Individual 2018 IRS 1040 Tax Form, it is here. You would be very wise to talk to your tax advisor before you file your taxes this year on this form. Click link to scroll down to see page 2.

 

 

New Resource For TaxConnections Tax Professional Members – List Of Global Tax Authorities Contact Information

Guide To Worldwide Tax Authorities

TaxConnections Members have a new resource available to them when they Login. For those of you who may be unaware, our subscription members have tools and resources available to them that are unavailable to non-members. We want to remind our members they can now Login and access a new tool that lists the worldwide tax revenue authorities.

We are continuously updating this list so come back often as we update this valuable resource for our members. This list contains the last known email address and contact information for tax revenue authorities worldwide. In order to find this list please look at your “Welcome Your Name” dropdown navigation bar. If your bar displays a short list or is locked it is because you are not a paid subscriber. If you cannot access your account, please contact us.

United States Income Tax Treaties A-Z

U.S. Treasury Department

The United States has tax treaties with a number of foreign countries. Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or are exempt from U.S. taxes on certain items of income they receive from sources within the United States. These reduced rates and exemptions vary among countries and specific items of income. Under these same treaties, residents or citizens of the United States are taxed at a reduced rate, or are exempt from foreign taxes, on certain items of income they receive from sources within foreign countries. Most income tax treaties contain what is known as a “saving clause” which prevents a citizen or resident of the United States from using the provisions of a tax treaty in order to avoid taxation of U.S. source income.

If the treaty does not cover a particular kind of income, or if there is no treaty between your country and the United States, you must pay tax on the income in the same way and at the same rates shown in the instructions for the applicable U.S. tax return.

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Business Deductions For Meal, Vehicle And Travel Expenses: Document, Document, Document

William Rogers - Business Meals Deductions

Meal, vehicle and travel expenses are common deductions for businesses. But if you don’t properly document these expenses, you could find your deductions denied by the IRS.

An Important Requirement

Subject to various rules and limits, business meal (generally 50%), vehicle and travel expenses may be deductible, whether you pay for the expenses directly or reimburse employees for them. Deductibility depends on a variety of factors, but generally the expenses must be “ordinary and necessary” and directly related to the business.

Proper documentation, however, is one of the most critical requirements. And all too often, when the IRS scrutinizes these deductions, taxpayers don’t have the necessary documentation.

What You Need To Do

Following some simple steps can help ensure you have documentation that will pass muster with the IRS:

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IRS Issues Proposed Regulations On The Base Erosion And Anti-Abuse Tax

IRS Base Erosion

The Internal Revenue Service issued proposed regulations on the section 59A base erosion and anti-abuse tax.

The Tax Cuts and Jobs Act (TCJA), legislation passed in December 2017, made major changes to the tax law for 2018 and future years, including revamping the U.S. international tax system. Among other changes made by the TCJA, new section 59A imposes a tax equal to the base erosion minimum tax amount for certain taxpayers beginning in tax year 2018. When applicable, this tax is in addition to the taxpayer’s regular tax liability. This new provision will primarily affect corporate taxpayers with gross receipts averaging more than $500 million over a three-year period who make deductible payments to foreign related parties.

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Tax Professionals: Do You Have A Data Protection Plan?

John Dundon - Do You Have A Data Protection Program

My friend, Deborah Rodgers, a dedicated and decorated public servant serving since the dawn of time as an IRS Stakeholder Liaison in the Denver Office called the other day before the government shutdown with all sorts of questions about my firm’s data protection plan. Time with Deborah is ALWAYS well spent!

Working inside the proverbial heart of the beast she truly knows my pain as I invest significantly in a data protection planning. Out of compassion she felt compelled to share with me that the IRS needs help too from taxpayers and tax practitioners alike to work diligently together towards protecting their private data.

It is evident to both of us that with increasingly sophisticated profiling aplenty online and otherwise people compiling and processing all the personal and business data required for reporting taxes to the IRS had best have a plan in place to protect that data. 

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Tax Credit And Changes To Family And Medical Leave

Kazim Qasim - Family And Medical

In 1993, then President Bill Clinton sought to find a support system to aid the rapid growth in the workforce, which was increasingly made up of women with families.  The Family and Medical Leave Act (FMLA) was passed “to balance the demands of the workplace with the needs of families.”  This Act allowed both women and men to participate in work, but also protect them if a medical need arose.  Under this Federal Act, employers with fifty of more employees were required to provide up to twelve weeks to attend to serious health conditions of the employee, a parent, spouse or child.  It also provided for pregnancy and care of a newborn, adopted child or foster child.

In order to qualify, the employee needed to have worked in the business for at least twelve month and worked at least 1,250 hours over the past twelve months. (In 2008, different requirements and time periods were given to active duty families.  This leave was unpaid leave, and merely protected the employee’s right to benefits during the leave and return to their job or one of equal level, compensation and benefits.  Note that highly compensated employees have more limited rights when it comes to FMLA. Read more

What Is A Virtual Phone? Learn Why You And Your Firm Should Have One

TaxConnections - Virtual Phone In The Cloud

You will save yourself thousands of dollars annually with the new virtual phone technology. After juggling multiple programs costing us thousands of dollars a month, we are now using technology that is amazing and we want you to know about it. You will thank us!

Take a look at all the features in this virtual phone system which cost less than thirty dollars a month. We have been utilizing this phone service for years and would never consider using any other service. Once you see every feature you have for thirty dollars a month, you will drop all the other service providers and save yourself thousands of dollars a month. It is simply amazing!

Learn About A Virtual Phone Today

 

Rental Property Sales – A Simplified Look

John Stancil - Rental Property Sales

When one has rental real estate, the sale of that property can have significant tax ramifications. Some of these are good, while others can create significant tax liabilities.

First, the good news. If there were losses that could not be deducted due to the passive activity rules, these losses may be deducted on Schedule E in the year of sale, assuming the property is sold in a taxable transaction.Determining gain or loss on the sale can be a daunting task. Due to depreciation recapture, the gain and tax can be much larger than anticipated.As far as the sale itself is concerned, first determine the adjusted basis. This starts with is the original cost plus any capital improvements. These are improvements to the house that were not expensed when incurred, but depreciated over time. Read more

IRS Issues Proposed Regulations On Key New International Provision, The Base Erosion And Anti-Abuse Tax

IRS LOGO - DEC 14th

The Internal Revenue Service issued proposed regulations  on the section 59A base erosion and anti-abuse tax.

The Tax Cuts and Jobs Act (TCJA), legislation passed in December 2017, made major changes to the tax law for 2018 and future years, including revamping the U.S. international tax system. Among other changes made by the TCJA, new section 59A imposes a tax equal to the base erosion minimum tax amount for certain taxpayers beginning in tax year 2018. When applicable, this tax is in addition to the taxpayer’s regular tax liability. This new provision will primarily affect corporate taxpayers with gross receipts averaging more than $500 million over a three-year period who make deductible payments to foreign related parties.

The proposed regulations provide detailed guidance regarding which taxpayers will be subject to section 59A, the determination of what is a base erosion payment, the method for calculating the base erosion minimum tax amount, and the required base erosion and anti-abuse tax resulting from that calculation.

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Senior Vice President Tax (Los Angeles, CA)

Senior Vice President Tax ( Los Angeles, CA)

We would genuinely appreciate your taking the time to review the Senior Vice President Tax opportunity and refer this to anyone you know who may be interested in learning more. This is a very special opportunity to work in a family office and work on a lot of deals. An ideal Senior Vice President Tax candidate will be currently working in a family office, private equity, M&A, Big Four with real estate investment firm, investment fund, private equity and/or asset management expertise.

Responsibilities include overseeing global tax strategy, tax planning and compliance; review the filing of all domestic and international corporate, personal, partnership and other income and indirect tax returns; and implementing and managing company’s income tax and indirect tax compliance activities (partially insourced and partially outsourced); and supervision of an outstanding, incumbent tax team.  The Senior Vice President Tax will work directly with family office CFO in identifying and developing effective tax strategies and planning techniques to minimize overall tax burden of consolidated group of companies and minimize overall costs associated with the tax structure. The Senior Vice President of Tax will lead acquisition structuring and due diligence including tax integration efforts.

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Tax Cuts And Jobs Act, Section 199A – Qualified Business Income Deduction (Q&As)

IRS - SEC 199A
Q1. What is the Qualified Business Income Deduction?

A1. Section 199A of the Internal Revenue Code provides many taxpayers a deduction for qualified business income from a qualified trade or business operated directly or through a pass-through entity. The deduction has two components.

  1. Eligible taxpayers may be entitled to a deduction of up to 20 percent of qualified business income (QBI) from a domestic business operated as a sole proprietorship or through a partnership, S corporation, trust or estate. For taxpayers with taxable income that exceeds $315,000 for a married couple filing a joint return, or $157,500 for all other taxpayers, the deduction is subject to limitations such as the type of trade or business, the taxpayer’s taxable income, the amount of W-2 wages paid by the qualified trade or business and the unadjusted basis immediately after acquisition (UBIA) of qualified property held by the trade or business. Income earned through a C corporation or by providing services as an employee is not eligible for the deduction.
  2. Eligible taxpayers may also be entitled to a deduction of up to 20 percent of their combined qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. This component of the section 199A deduction is not limited by W-2 wages or the UBIA of qualified property.

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