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Business And Personal Records: Are You Prepared For A Disaster?

Charles Woodson - Business And Personal Tax Records- Are You Prepared For A Disaster

This year’s wildfires, record rains, flooding, tornadoes, hurricanes and potential for earthquakes should all act as reminders that you should be prepared for a disaster. Sure, it will take some effort on your part and you may never be affected by a disaster, but if you are, you will sure wish you had been prepared. It can become a nightmare, whether it impacts you personally or your business.

Business Owners – If you are a business owner, unexpected events can have a devastating effect on your business. You need to be protected from any number of natural and unnatural events, such as fire, computer failure and illness or the loss of key staff, all of which can make it difficult or even impossible to continue day-to-day operations.

Good planning can help you take steps to minimize the impact of a disaster and protect your business. The following recommendations can help your business cope with an unforeseen calamity.

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IRS Facts Help Taxpayers Understand Individual Retirement Arrangements

IRS - Individual Retirement Account Facts

Individual Retirement Arrangements – better known simply as IRAs – are accounts into which someone can deposit money to provide financial security when they retire. A taxpayer can set up an IRA with a:

  • bank or other financial institution
  • life insurance company
  • mutual fund
  • stockbroker

Here are some terms and definitions related to IRAs to help people learn more about how the arrangements work: Read More

Complimentary Courses For Corporate Tax Professionals: ASC 740 Tax Provision And Tax Cuts And Jobs Act

Nick Frank- ASC 740 Tax Courses

Corporate tax professionals are invited to attend the four scheduled complimentary training classes on ASC 740. These include: ASC 740 – Intersection Series; ASC 740 The Basics; ASC 740 Stock Compensation And Sec 162m; and ASC 740 International Under The Tax Cuts And Jobs Act.

These courses are part of a series brought to you by Tax Prodigy/TaxConnections and are with our compliments. Nick Frank is a national leading instructor on the tax provision and makes simplifies the entire process for anyone responsible for the corporate tax provision. He is also CEO of Tax Prodigy and a Professor at the University of Minnesota, Minneapolis, Minnesota on the tax provision.

You can easily register by going to TaxConnections newly updated Tax Events Calendar.

 

 

Congressional Record – Tax Cuts And Jobs Act (Part 12)

Congressional Record - Tax Cuts And Jobs Act Part 12

Impact Of GOP Tax Plan On Students (By Jenny C. Bledsoe)

The House GOP tax bill makes graduate school inaccessible for anyone who is not independently wealthy, and it will likely cause current graduate students to drop out of doctoral programs and/or declare bankruptcy.

A single line in the 429-page bill effects this change: 26 U.S. tax code Sec. 117(d) allows students conducting research or teaching for a university (usually Ph.D. students on fellowship) to receive tuition waivers tax free. Any stipends are taxed.

The House “Tax Cuts and Jobs Act,” however, will repeal this provision, meaning that a Ph.D. student making a stipend of $24,000 will be taxed as if they are making $85,200. This would have been my situation two years ago. During the first three years of Emory’s Ph.D. program, a student currently receives a tuition waiver amounting to $61,200. Once you reach “tuition-paid” status after your third year, the annual tuition is $30,600.

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U.S. Citizens Speak Out “While You Can” About Proposed Repatriation Tax Regulations: Exempt American Small Business Owners In United States And Worldwide From US Transition And GILTI Taxes

John Richardson - U.S. Citizens And Proposed Repatriation Tax

This is part of my series of posts discussing the Section 965 U.S. Transition Tax. This has been reposted with permission from Americansabroadfortaxfairness.org.

Time Out From Our Regular Programming With This Special Message – A Call To Action – from Attorney Monte Silver:

Hi Fellow Americans:

On August 1, 2018, the Treasury/IRS issued proposed regulations that interpret the Repatriation Tax Law – a 250 page very complicated document. I discovered that in issuing the document, Treasury, the IRS and other Federal agencies seriously violated numerous Federal laws and procedures. This gives us tremendous leverage in negotiating for an exemption from the Repatriation & GILTI laws.

It is not unreasonable to expect that this battle may be won by December 15, 2018. What you can do to help win the battle? Easy! Treasury needs to hear your voice in a few short paragraphs (as outlined below) – by October 7, 2018.

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What Property Is Exempt From IRS Seizure?

The IRS can seize many different types of property, including bank accounts, wages, and retirement accounts. However, some items are specifically exempt from IRS seizure under federal law.

The following types of property can’t be seized by the IRS under any circumstances:

  • unemployment benefits
  • certain annuity and pension benefits
  • certain military service-connected disability payments
  • workers’ compensation benefits
  • certain public assistance payments
  • income for court-ordered child support payments
  • necessary schoolbooks and clothing
  • certain amounts worth of fuel, provisions, furniture, personal effects for a household
  • certain amounts worth of books and tools for trade, business, or professions

In addition to these payments and assets, a portion of your wages from each paycheck is exempt from seizure. The exempt amount is calculated based on your filing status and number of dependents. Your wages above this amount can be seized continuously until your tax debt is paid off.

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Taxpayers And Gift Tax Return Reporting

Gift taxes were created to prevent wealthy taxpayers from transferring their estates to their beneficiaries via gifts and thus avoid estate taxes when they pass away. But that does not mean only wealthy taxpayers need to be concerned with the gift tax provisions as, under many circumstances, even lower-income taxpayers may find they are liable for filing a gift tax return.

The government uses the gift tax return to keep a perpetual record of a taxpayer’s gifts during their lifetime, and gifts exceeding the amount that is annually exempt from the gift tax reduce the taxpayer’s lifetime estate tax exclusion, which is currently $11.18 million (nearly a two-fold increase from the 2017 exclusion as a result of the Tax Cuts and Jobs Act of 2017).

So what does this have to do with me you ask, since your estate is significantly less than $11.18 million? Well, your estate may be less than $11.18 million now, but what will it be when you pass away? You never know. Another concern is that the IRS requires individuals to file gift tax returns if their gifts while living exceed the annual exemption amount.

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Congressional Record – Tax Cuts And Jobs Act (Part 11)

Congressional Record - Tax Cuts And Jobs Act Part 11

Mr. BRADY of Texas. Mr. Speaker, I yield 3 minutes to the gentleman from Ohio (Mr. Renacci), one of our key members of the Ways and Means Committee.

Mr. RENACCI. Mr. Speaker, I rise today in support of H.R. 1, the Tax Cuts and Jobs Act. First of all, I want to thank President Trump for making this a priority, but I especially want to thank Chairman Brady for his tireless efforts and leadership in bringing this legislation to the floor today.

Three decades ago, there was a 24-year-old starting a business in Ohio. He borrowed money and started hiring people. As he grew his business, he didn’t take a paycheck and kept hiring hardworking middle class Americans. But then, as he started looking over things, he couldn’t hire anymore, because of the tremendous tax bill owed to the Federal Government.

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IRS Issues Proposed Regulations On Global Intangible Low-Taxed Income For U.S. Shareholders

IRS - IRS Issues Proposed Regulations On Global Intangible Low Taxed Income For U.S. Shareholders

The Internal Revenue Service issued proposed regulations today concerning global intangible low-taxed income under section 951A and related sections of the Internal Revenue Code.

The Tax Cuts and Jobs Act (TCJA), passed in December 2017, made major changes to the tax law, including adding new rules requiring the inclusion of global intangible low-taxed income generated by controlled foreign corporations (CFCs).

Under the TCJA, a U.S. person that owns at least 10 percent of the value or voting rights in one or more CFCs will be required to include its global intangible low-taxed income as currently taxable income, regardless of whether any amount is distributed to the shareholder. A U.S. person includes U.S. individuals, domestic corporations, partnerships, trusts and estates.

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The IRS Might Recover EITC Using Its Newly Discovered Post-Processing Math Error Authority, But Is It Constitutional?

Nina Olson- IRS Might Recover Earned Income Tax Credit

My June Report to Congress included an Area of Focus entitled: “The IRS Has Expanded Its Math Error Authority, Reducing Due Process for Vulnerable Taxpayers, Without Legislation and Without Seeking Public Comments.”  The post-processing math error issue came up after a report by the Treasury Inspector General for Tax Administration (TIGTA) said the IRS improperly paid refundable credits, including the Earned Income Tax Credit (EITC), to those filing 2016 returns with taxpayer identification numbers (TINs) (e.g., Social Security Numbers) that were issued after the due date of the returns. TINs are long strings of numbers that can easily contain typos. The IRS committed to “evaluate this population for inclusion in the appropriate post-refund treatment program.”  Perhaps because it costs $1.50 to resolve an erroneous EITC claim using automated math error authority (MEA) compared to $278 for an audit (according to TIGTA), the Wage and Investment Division (W&I) planned to use MEA to recover these credits in 2018.

I asked Counsel about the legality of using MEA to disallow credits long after the IRS had processed the returns (i.e., post-processing) and paid them. Counsel responded on April 10, 2018, with a Program Manager Technical Advice (PMTA) that approved the practice (here). It concluded there were no due process concerns. This blog explores the due process that the government may be constitutionally required to provide before recovering EITC from those who depend on it to survive.

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Disabled Taxpayer Tax Credits And Benefits

Charles Woodson- Disabled Taxpayers Tax Credits And Benefits

Taxpayers with disabilities may qualify for a number of tax credits and other tax benefits. Parents of children with disabilities may also qualify. Listed below are several tax credits and other benefits that are available if you or someone else listed on your federal tax return is disabled.

Increased Standard Deduction – Tax reform substantially increased the standard deduction for 2018 to $12,000 for single filers, $18,000 for those filing as head of household and $24,000 for married filing joint returns. Tax reform also retained the standard deduction add-on for taxpayers who are legally blind. Thus, if a taxpayer is filing jointly with a blind spouse, they are able to add an additional $1,300 to their standard deduction; if both spouses are blind, the add-on doubles to $2,600. For other filing statuses, the additional amount is $1,600. While being age 65 or older isn’t a disability, it should be noted that the “elderly” add-on of $1,300 or $1,600, depending on filing status, has also been retained. These add-ons apply only to the taxpayer and spouse, and not to any dependents.

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Retirees With Pension Income Should Do A Paycheck Checkup

IRS - Retirees With Pension Income Should Do A Paycheck Checkup

The Tax Cuts and Jobs Act, enacted in December 2017, changed the way tax is calculated for most taxpayers, including retirees.

Because of this law change, retirees who receive a monthly pension or annuity check may need to raise or lower the amount of tax they pay in during the year. The easiest way to do that is to use the Withholding Calculator or read Publication 505, Tax Withholding and Estimated Tax. Though primarily designed for employees who receive wages, this online tool can also help those who receive pension or annuity payments on a regular schedule, usually monthly or quarterly.

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