It seems that a whole lot of taxpayers are anxious to get their taxes in to the IRS!
I’ve never seen the IRS issue a statement that they have yet to determine the date when they will be accepting tax returns; however, they’ve done just that this year.
Below, I outline various reasons that could be responsible for this sudden frantic rush:
The recent Equifax breach affects over 143 million American taxpayers.
As you might imagine, this could wreak havoc for those affected and you may not even know you’ve been affected until you go to file your taxes next year.
The data breach gave hackers access to the Social Security numbers, birth dates, addresses, driver’s license numbers and credit card numbers of people around the world, and as mentioned above 143 million American taxpayers. Criminals can use all of that date to steal identities, so there are sure to be consequences in the short term and long term. One of those long-term ramifications could be that a criminal will use your personal information to file a bogus tax return in 2018.
The IRS has announced relief for victims of recent disasters. If you live in a federally-declared disaster area, you qualify for this program. As an affected taxpayer, you may take a loan or hardship distribution from your retirement plan.
Streamlined procedures have been put in place to allow taxpayers quick access to funds in these accounts. The plan must allow for hardship withdrawals. However, these distributions may be made prior to the plan being amended to allow such withdrawals. Contact the human resources department at your company to see if your plan allows these loans or distributions. The IRS is waiving the six-month ban on distributions that normally affects taxpayers taking hardship distributions. Any distribution or loan under this announcement must be made by January 31, 2018.
Hurricane Harvey has been devastating for many Texans. It could prove to be even more devastating if you haven’t filed your income tax returns in several years and you lost your important papers during the storm.
Even if Harvey wiped out your important papers, your tax filing delinquency will not be forgotten by the IRS. Read More
With a major portion of Houston and surrounding areas under water and devastated, the Internal Revenue Service (IRS) has announced significant tax relief for victims of Hurricane Harvey.
Those in Texas who have been affected by the storm have until January 31, 2018, to file certain individual and business tax returns and make certain tax payments. This includes an additional filing extension for taxpayers with valid extensions through October 16, and businesses with extensions through September 15. Read More
If the mass murder in Orlando last month was not tragic enough, another group of criminals are now reaching out to make an unthinkable situation even more heinous.
If you are considering donating money to a charitable organization to help the families of the Orlando Pulse victims, think twice before you give. There will be scam artists calling and reaching out in a variety of ways looking to take advantage of the heartbroken people around the country who want to help in some way.
Being credit worthy is a big deal in our society. While there are host of important numbers in your financial world, few are as critical as your credit score.
For the past few years, year-end tax planning has been challenging due to the lateness of action by Congress. This year is no different because of uncertainty over whether Congress will extend any of the many expired or expiring tax provisions. However, regardless of what Congress does later this year, solid tax savings can still be realized by taking advantage of tax breaks that are still on the books for 2015. For individuals and small businesses, these include:
• Capital Gains and Losses – You can employ several strategies to suit your particular tax circumstances. If your income is low this year and your tax bracket is 15% or lower, you can take advantage of the zero percent capital gains bracket benefit, resulting in no tax for part or all of your long-term gains. Others, affected by the market downturn earlier this year, should review their portfolio with an eye to offsetting gains Read More
If you are considering installing a solar electric system or solar hot water system for your home, there are tax issues you should consider when making your decision.
First of all, there is a very lucrative non-refundable federal tax credit for 30% of the cost of the system with no maximum. So for example, if the solar electric system cost you $20,000, your tax credit would be $6,000. A non-refundable tax credit offsets your tax liability, regular and alternative minimum, dollar for dollar, and any excess is added to any credit allowable in the subsequent year. For example, if your 2015 credit was $6,000 and your 2015 tax liability was $4,000, then $4,000 of the credit would go to pay off your 2015 tax liability and the remaining $2,000 would be added to your 2016 solar credit, if any, and used to reduce your 2016 tax liability. This credit, unless it is extended by Congress, will expire after 2016. Read More
As the end of the year approaches, you will probably be besieged by requests from charitable organizations for contributions. The holiday season is the favorite time of the year for charities to solicit donations.
But you should be aware that it is also the time of year when scammers show up in force, pretending to be legitimate charities in hopes of deceiving you into giving them your hard-earned money.
When making a donation, you should take a few extra minutes to ensure your gifts are going to legitimate charities. IRS.gov has a search feature, Exempt Organizations Select Check, which allows people to find legitimate, qualified charities to which donations may be tax-deductible. Read More
If you’re a small business owner, then you know that gauging the performance of your business is one of the most difficult tasks you face. The indicators and measures that you work with on a day-to-day level are not necessarily reflected in the criteria and metrics that are provided on paper, and it’s hard to know what to trust and which information is best to use. It is essential that business owners have a reliable, understandable way to tell whether things are going well or need improvement, and that’s why using and understanding your Key Performance Indicators (KPIs) is so vitally important.
The value of Key Performance Indicators cannot be overstated. They are objective, black and white measures of all of your business processes and performance, and provide you with a clear and straightforward way of seeing what is working and what needs more Read More
If you are a small business owner, October 15, 2015, is your last chance to retroactively adopt the new tangible property regulations that took effect in 2014.
Why is adopting these new regulations important? They give you the opportunity to expense items that you had capitalized (depreciated) in years for which the three-year statute of limitations has not yet expired. As an example, say you are a landlord, and you replaced the roof on your rental at a cost $6,000 in 2012. Prior to the new regulations, that expense would have been treated as a capital expense, and you would have had to depreciate it (deduct it slowly), over 27½ or 39 years. However, under the new regulations, the expense of replacing the roofing membrane is fully deductible in the year the cost was incurred. Read More