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What Are The Penalties For Not Filing Your Tax Return?

Charles Woodson- Penalties For Not Filing A Tax Return

Everybody knows the old saying about death and taxes, yet a surprising number of people fail to file an income tax return. If you’re one of those people and you think you’ll be able to slide by, you need to reconsider your position. Even if you’re unable to pay your taxes, you need to file a return. Not doing so will eventually lead to a domino effect of negative consequences.

No matter how many people have told you that it’s no big deal, or that the IRS has “bigger fish to fry” than you, the employees of the Internal Revenue Service have a job to do and a process that they follow. Even if no legal action is taken against you, failure to file a return will end up working against you. Let’s take a look at the rules regarding filing your taxes and the various outcomes that you risk:

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Vice President Tax – Lead Tax Executive (Midwest Region)

VP Tax - Midwest

TaxConnections is conducting a search for a Vice President of Tax for a client in the financial services and insurance sector. Our client is a financial services company with an extraordinary business reputation.  The VP Tax  will be responsible for overseeing and managing the entire tax function and all relationships with external and internal business partners and identify areas of risk and  opportunity for the company including:

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If You Are A Recreational Gambler, Here Are Some Tax Issues You Need to Know

Charles Woodson- Gambling Winnings And Taxes

Gambling takes many forms: casino games, horse racing, sports book betting, lotto tickets, scratchers, bingo, etc. For virtually everyone, gambling is a recreational activity and, as such, is done for fun. For most gamblers, their losses for the year will exceed their winnings, and since losses in excess of winnings are not deductible, most gamblers don’t bother to report either, which isn’t in line with the tax law’s filing requirements. If your winnings at one time hit certain levels, the government requires the gambling establishment to collect your Social Security number and report your winnings to Uncle Sam on a Form W-2G. Gambling establishments will issue a Form W-2G if you:
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Separately Incorporating Your Brand: The Case For An Intellectual Property Holding Company (Part II)

Gary Kevin Heald - Sports And Taxes

This is the second-post in a two part series dealing with the income tax imposed on professional athlete earnings.  This post reveals potential benefits of using an Intellectual Property Holding Company to manage the brand of an athlete. To read first part of series go to this link.

Here Is The Hypothetical

I am an athlete.  I have spent my life training and building my brand.  I recognize endorsement and advertising opportunities as well as franchising will likely account for a substantial portion of my future earnings.  Without my brand, my current and future economic potential diminish.  I need a way to market myself and at the same time, protect my brand from infringement, fraud, lawsuits and maybe even save a little tax money in the process?

Greg Norman’s “Shark” is an iconic logo and part of the Greg Norman Company which he leads as the Chairman and CEO.  I will admit, I do not know how his various product lines and services are structured, but each division of his company from his clothing line, eyewear brand, luxury estates, golf course design firm or restaurant (the Australian Grille) uses the “Greg Norman” name, the term “The Shark” or his “Shark” logo to promote, advertise and endorse their products or services.  It is absolutely clear:  his endorsement can make a business thrive — to the tune of hundreds of millions of dollars in fact.  In his case, and in many others, using an Intellectual Property Holding Company (IPHC) to manage the brand, could procure a number of potential benefits.

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Reducing The Tax Liability Of Professional Athletes: Fairness In Apportionment (Part I)

Gary Heald - Athletes And State Taxes

This is the first-post in a two-post series dealing with the income tax imposed on professional athlete earnings.  This post is reveals the value in questioning and sometimes challenging the apportionment formula methodologies employed by states and municipalities in application to non-resident professional athletes.

Here Is The Hypothetical:

I am a professional athlete, live in Florida and travel for games.  When I travel to another state or municipality for work, they frequently impose an income tax on my earnings.  I’m neither afforded an exemption nor is there an applicable reciprocal agreement between my state and the places I visit.  What can I do to reduce my SALT exposure in these foreign jurisdictions?

All but nine states impose an income tax on wage earnings.[1]  Generally, non-resident taxpayers are afforded an exemption[2] from those taxes (or fly under the audit radar), but professional athletes receive special attention from the taxing authorities. Publicized high-salaries and travel schedules reveal to tax authorities a professional athlete’s travel schedule and earnings, making it easy to determine whether they’ve accurately reported.  Since the players are audit targets, every traveling-member of a team including coaches, trainers, broadcasters and referees are targets as well.[3]  Making the issue worse for professional athletes, the Tax Cuts and Jobs Act now limits the itemized deduction for state and local taxes to $10,000.00.  Without question, tax planning for athletes is necessary to avoid overpaying on both the federal and state and local levels.  Now that the SALT deduction is capped, professional athletes and team members should examine and if possible, further reduce their SALT exposure.

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How To Request Transcript Of Individual Tax Returns From IRS

IRS - How To Request Previous Years Ta

For anyone who needs a transcript of their tax return, it can be requested from the IRS by filling out Form 4506-T

Individuals file IRS Form 4506-T to request a tax return transcript for the current and prior three years that include most lines of the original tax return; and/or to designate a third party to receive a transcript.

Image result for form 4506-T

Have a tax question? Ask Tax Questions Here.

 

Verify Lawyers State License To Practice Law

TaxConnections Verify Lawyers License

TaxConnections provides a map and link in order to verify that a Lawyer has a license to practice law in a state. In the United States, each State has rules to qualify for a State Law License. In order to verify that the Lawyer you hire is licensed in the state they are practicing, we encourage you to CLICK HERE in order to verify the status of their law license.

United States Map

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Don’t Overlook Tax Credits And The Benefits

Charles Woodson- Tax Credits And Incentives

Tax credits are a tax benefit that offsets your actual tax liability, as opposed to a tax deduction, which reduces your income. Congress provides tax credits to individual taxpayers for a number of reasons, including as a form of assistance for lower-income taxpayers, to stimulate employment, and to stimulate certain investments, among other things.

Tax credits come in two types: non-refundable and refundable. A non-refundable credit can only reduce your tax liability to zero; any excess is either carried forward or is simply lost. In the case of a refundable credit, if there is excess after reducing your tax liability to zero, the excess is refundable. The following is a summary of some of the tax credits available to individual taxpayers:

Childcare Credit – Parents who work or are looking for work often must arrange for care of their children during working hours or while searching for work. If this describes your situation and your children requiring care are under 13 years of age, you may qualify for a childcare tax credit.

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The Multistate Tax Commission Voluntary Disclosure Program

TC Admin- Multistate Tax

The Multistate Voluntary Disclosure Program (“MVDP”) provides a way for a taxpayer with potential tax liability in multiple states (including the District of Columbia) to negotiate a settlement, using a uniform procedure coordinated through the National Nexus Program (“NNP”) staff of the Multistate Tax Commission (“Commission”).

General Terms

The Commission offers this service to encourage taxpayers to commence filing and paying taxes in states in which they may have substantial nexus, which is the connection between the taxpayer and the state arising from the taxpayer’s activities in that state, making the taxpayer subject to the state’s taxing authority.

A taxpayer with potential tax exposure in more than one state will find this service to be faster, more efficient, and less costly than approaching each state separately.  There is no charge to the taxpayer for participation in the MVDP.

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American Opportunity Tax Credit For Education Expenses – $2500 Tax Credit Annually Per Student

IRS Logo - American Opportunity Tax Credit

The American opportunity tax credit (AOTC) is a credit for qualified education expenses paid for an eligible student for the first four years of higher education. You can get a maximum annual credit of $2,500 per eligible student. If the credit brings the amount of tax you owe to zero, you can have 40 percent of any remaining amount of the credit (up to $1,000) refunded to you.

The amount of the credit is 100 percent of the first $2,000 of qualified education expenses you paid for each eligible student and 25 percent of the next $2,000 of qualified education expenses you paid for that student. But, if the credit pays your tax down to zero, you can have 40 percent of the remaining amount of the credit (up to $1,000) refunded to you.

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TaxConnections Introduces Our Executive Search Services Division – View Tax Executive Jobs

Tax Jobs - TaxConnections Executive Search Services Division

TaxConnections Executive Search Services division is spearheaded by our CEO Kat Jennings who is an internationally recognized tax executive search expert. For more than three decades, Kat and her highly trained search team have served multinational organizations in attracting the very best tax executives around the world.

The majority of TaxConnections retained clients seek a dedicated, tightly focused search process that focuses on clients’ particular needs. Our specialty is serving clients who demand the highest standards during the search process for a tax executive. Our executive search services team focuses on high caliber tax executives leading corporate tax organizations nationally and internationally.

Please view our current management level tax searches.

 

 

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