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Telephone Service In An Omnichannel Environment – Communicating With The IRS Over The Phone Must Be Made Easier For Taxpayers (Part 2)

Nina Olson, NTA, Tax Advocate, Tax Blog, TaxConnections, USA, Washington D.C.

In last week’s blog, Telephone Service in an Omnichannel Environment – The IRS Must Make Communicating with the IRS Over the Phone Easier for Taxpayers, I discussed some of the struggles taxpayers will face during filing season while trying to get help from the IRS over the phone. Given the challenges of increased call volume and confusion over the tax law changes, along with the uncertainty of the IRS’s final funding level for Fiscal Years 2018 and 2019, the IRS has projected its “level of service” (LOS) on its Accounts Management lines will be anywhere from 40 percent to 80 percent for Filing Season (FS) 2018. In a later blog, I will discuss my concerns about how the IRS calculates LOS and whether that measure provides accurate information about callers’ experience with the phones. Read More

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

Thomas Kerester, Tax Ambassador, Tax Blog, Washington D.C., USA, TaxConnections

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

How Does Negative Gearing Work For Australian Expatriates? Cash And Non-Cash Deductions

Shane Macfarlane, Tax Advisor, Tax Blog, Ho Chi Minh City, Viet Nam, TaxConnections

If you’ve paid attention to the news lately, you’ve no doubt heard the term “negative gearing”. It has become somewhat of a political football – with the Liberal and National parties supporting current arrangements, while Labour intends to change it. But what exactly is negative gearing and how do the rules apply to Australian expatriates?

Negative Gearing 101 Read More

Small Business Owners: A Simplified Employee Pension (SEP) May Give You One Last 2017 Tax And Retirement Saving Opportunity

William Rogers, Tax Advisor, Tax Blog, Rancho Santa Fe, California, TaxConnections

Are you a high-income small-business owner who doesn’t currently have a tax-advantaged retirement plan set up for yourself? A Simplified Employee Pension (SEP) may be just what you need, and now may be a great time to establish one. A SEP has high contribution limits and is simple to set up. Best of all, there’s still time to establish a SEP for 2017 and make contributions to it that you can deduct on your 2017 income tax return.

2018 Deadlines For 2017 Read More

Deferred Compensation, Part VII: Profit-Sharing

Hale Stewart, Tax Advisor, Tax Blog, Houston, Texas, USA, TaxConnections

Adding a profit-sharing component to your 401(k) plan can increase your contributions while also motivating employees.  All of the previously-discussed rules apply: you can’t have a top-heavy plan, you can’t discriminate in favor of certain employees, etc…

Here’s a general description of what’s involved from the code:

A profit-sharing plan is a plan established and maintained by an employer to provide for the participation in his profits by his employees or their beneficiaries. Read More

Telephone Service In An Omnichannel Environment – Communicating With The IRS Over The Phone Must Be Made Easier For Taxpayers (Part 1)

Nina Olson, National Taxpayer Advocate Team,Tax Advocate, Tax Blog, Washington D.C., USA, TaxConnections

Jan. 29th marked the start of the 2018 tax filing season, as the IRS began accepting and processing an estimated 155 million individual tax returns for Tax Year 2017. Taxpayers have between now and April 17, 2018 to file their individual tax returns with the IRS, either online or through the mail, or obtain a filing extension until Oct. 15th. Filing season can be stressful for taxpayers in the best of times, as many have questions about how to properly report their earnings, claim deductions, and comply with their tax obligations. Read More

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

Thomas Kerester, Washington D.C., USA, Tax Advocate, Tax Blog, TaxConnections

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

How To Cut Taxes Under The New Tax Act

John Adams, Tax Advisor, Tax Blog, Cherry Hill, New Jersey, USA, TaxConnections

What moves should you make now in order to cut your taxes as the new tax law takes effect?

Now that the massive new Tax Cuts and Jobs Act (TCJA) is finally the law of the land, what should you do? Every situation is different, but here are several practical suggestions for improving your tax outlook for 2018 and beyond:

Adjust Your Withholding Read More

Explanation And 10 Examples Of The Rules For Determining An Alien’s Period Of Residency In The United States

Daniel Gray, Tax Advisor, Tax Blog, Toronto, Canada, TaxConnections

An alien’s period of residency in the United States must have an official starting date and ending date. The rules for determining these dates are as follows.

Residency Starting Date Under The Green Card Test

If you meet the green card test at any time during a calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day in the calendar year on which you are present in the United States as a lawful permanent resident (the date on which the United States Citizenship and Immigration Services (USCIS) has officially approved your petition to become an Immigrant). Read More

Apple, Inc. To Pay $38 Billion In Repatriation Taxes

Ronald Marini, Tax Advisor, Tax Blog, Miami, Florida, USA, TaxConnections

Apple, Inc. said it would make a one-time tax payment of $38 billion to repatriate overseas cash holdings and also ramp up its spending in the U.S., as it seeks to emphasize its contributions to the U.S. economy after years of taking criticism for outsourcing manufacturing to China. As Of Last September, Apple Had $252 Billion.

In Cash Or Cash Equivalents Abroad  Read More

Tax Cuts And Jobs Act (TCJA): Changes For American Expatriates

Many American citizens who live outside the US have for years raised concerns about the United States’ Citizen-Based-Taxation System. They may have been hopeful when tax reform was being proposed but have been disappointed that their concerns have been ignored. The new tax reform bill Tax Cuts and Jobs Act called TCJA (pronounced tick-jah) has brought about massive changes in the way individuals are going to be taxed but not much has changed for American Expatriates.

Read More