TaxConnections


 

Tag Archive for Betty Williams

Updates To California Tax Return Filing

The California Franchise Tax Board (FTB) has updated certain aspects of tax return filing starting with returns for tax year 2017. The standard deduction for taxpayers filing as single increased to $4,236; for taxpayers who are married filing jointly, the new standard deduction is $8,472. Personal exemptions were also raised to $114 and $228, respectively.

California introduced the Schedule X, a new form which will replace the Form 540X for amending returns, along with five new voluntary funds to which taxpayers may contribute to support specific causes.

Read more

High Court Reconsiders Physical Presence Requirement For Sales Tax

South Dakota is taking the physical presence rule back to our nation’s highest court in its dispute with Wayfair, Inc., to determine whether it may continue to require out-of-state sellers such as online retailers to register with the state and collect and pay over sales tax.[1]

In the seminal case from 1992, Quill Corp. v. North Dakota, the U.S. Supreme Court ruled that retailers did not have to collect sales tax in any state where they have no physical presence. However, the exponential growth of eCommerce and internet sales has significantly changed the retail landscape since that time. Read more

IRS And FTB Power Of Attorney Forms Have Changed

If you are a tax professional, take note of recent changes that the Internal Revenue Service (IRS) and California Franchise Tax Board (FTB) have made to their power of attorney forms that may affect your ability to access client information.

The IRS form, found here, has expanded section 5a to include a box you must check if you have intermediaries access client transcripts for you.  The FTB has completely rehauled its power of attorney form system — there is a new form to use for individuals, a separate form for business entities, and a third form to use when you want to revoke your power of attorney.  Read more

Steps to Avoid an IRS Worker Classification Audit

Any small business must hire more people as the business grows and thrives. At the initial stage when work is sporadic, it may make sense to hire contractors like a web designer to create an online presence or a bookkeeper to manage business accounts. But as work piles up, it may require hiring a full-time employee.

The line between independent contractor and employee is not always clear. A construction firm may have contracted with several roofers as projects dried up during the recession. As work picks up and the firm needs more help, several of the roofers may give up other jobs in exchange for steady schedules and access to the firm’s retirement savings plan. Does this mean that they should instead be classified as employees? Read more

IRS Updates AFRs; Interest Rates Remain Unchanged

The Internal Revenue Service (IRS) has updated its applicable federal rates (AFRs) used for a variety of IRS calculations, such as the minimum interest rate for intra-family loans. For calendar year 2017, AFRs for short-term loans have increased from 0.96 percent to 1.52 percent, AFRs for mid-term loans have fluctuated around 2 percent, and AFRs for long-term loans have fluctuated between 2.6 percent and 2.82 percent. For a detailed list of AFRs by month and year, click here.

Read more

What You Need to Know About Deductions for Your Holiday Giving

November kicks off the season of giving, and the donations you make to your favorite charities may also provide you some tax benefits. However, there are some guidelines you should keep in mind as you write those checks.

Read more

California Competes Tax Credit Now Accepting Applications

The California Competes Tax Credit is an income or franchise tax credit available to businesses that come to California or stay and grow in California. Tax credit agreements will be negotiated by Governor’s Office of Business and Economic Development (GO-Biz) and approved by a newly created “California Competes Tax Credit Committee,” consisting of the State Treasurer, the Director of the Department of Finance, the Director of GO-Biz (Chair), and one appointee each by the Speaker of the Assembly and Senate Committee on Rules.

For fiscal year 2013/2014, applications for the California Competes Tax Credit will be accepted at calcompetes.ca.gov from March 19, 2014, until April 14, 2014. Go to business.ca.gov for more information on the California Competes Tax Credit. Read more

FTB Issues Letters to Over 1 Million California Tax Payers Seeking Tax Returns

More than one million people who did not file a 2012 state income tax return are receiving letters seeking those returns or to verify that they do not have a tax filing requirement, according to the Franchise Tax Board (FTB).

Since the 1950s, FTB has contacted people who have California income, but did not file a tax return. Last year, FTB collected more than $727 million through these efforts.

Each year FTB receives more than 400 million income records from third parties such as banks, employers, state departments, the IRS, and other sources. FTB matches these income records against its records of tax returns filed. While this program mainly identifies wage earners and self-employed individuals who have not filed, it also detects Read more

TaxConnections Worldwide Tax Blogs Awards 2014 – Top Twenty Tax Bloggers

TaxConnections Worldwide Tax Blogs gives our readers an opportunity to get to know these tax experts better through their writing. We highly recommend you read TaxConnections Worldwide Tax Blogs to stay informed of emerging tax trends. We highly recommend you interact with our bloggers through your comments on their blog posts. Commenting on a tax bloggers post is a great way to let them know you appreciate the knowledge they have shared. We also recommend you connect with our bloggers on their TaxConnections Microsite. Simply click on their name on their blog post and you will be guided directly to their Microsite where you can connect with them easily on the “ Connect With Me” button.

Here are TaxConnections Top Twenty Worldwide Tax Bloggers:

Peter Scalise
Daniel Erasmus
Harold Goedde
Kathryn Morgan
Hale Stewart
William Richards
Steven Potts
Virginia La Torre Jeker
Michael DeBlis
Annette Nellen
John Dundon
Manasa Nadig
Jerry Donnini
Ronald Cappuccio
Betty Williams
Claire McNamara
Robert McKenzie
James McBrearty

Bartering Goods And Services? You May Owe Tax!

TaxConnections Blogger posts about bartered servicesThere are instances where a client cannot pay their bill. When this happens, some business owners will look to the goods or services provided by the client in her business, to see if a trade can be made to satisfy the debt. While most business owners would rather be paid for services rendered, a new copy machine, air conditioner or janitorial services are better than a past due account. However, what many taxpayers forget is that the value for the services exchanged is treated just like a cash payment, for income tax purposes. Consider a scenario where an attorney provides services to a client who owns a luggage store; the amount billed for legal services is $5,000. If the client offers $5,000 in luggage instead, then both the attorney and the luggage store owner must reflect $5,000 in income in the transaction. This is true whenever bartered services are made between businesses (except corporations) of $600 per more, per year. The payments are reported on Form 1099-MISC. For more information, view the IRS’ Bartering Tax Center

In accordance with Circular 230 Disclosure

Estate Plan For An 18 Year Old?

iStock_000019078679XSmallIt may not initially make sense for an 18 year old to need an estate plan since most do not have assets about which to be concerned. However, in most states, an 18 year old is an adult in the eyes of the law, with legal rights relating to privacy and decision making. As soon as a child turns 18, parents will lose authority to view medical and financial records related to the child, as well as be prevented from making decisions on their child’s behalf.

In order to ease the transition into adulthood, parents and 18 year old children should consider two important estate planning documents. The first is an Advance Health Care Directive (sometimes called a Living Will or Health Care Power of Attorney). This document will allow the adult child to name an agent to make health care decisions for the child in the event the child is unconscious or otherwise unable to communicate. In conjunction with the health care document, the adult child should also execute a HIPAA waiver which will allow the agent to view medical records and discuss current health issues with medical professionals, assisting the young adult with the understanding and management of current health conditions.

The second important document is a Power of Attorney for Finances, which allows the adult child to name the parent to discuss the adult child’s finances Read more

Why You Need An Estate Plan, Even If You Think You Don’t Have An Estate

TaxConnections Picture - Living Trust Estate PlanningPeople often assume that an estate plan is only necessary for those with a certain level of net worth. The reality, however, is always everyone needs an estate plan, regardless of the value of the assets. There are so many reasons to establish an estate plan, none of which have any relevance to the value of your estate. Below are four good reasons:

1. To name guardians for minor children. Admittedly, there is no one better to raise your children than you. But if the unthinkable happens and you are not around to do the job, the next best thing is for you to choose who will take on the responsibility of raising your children. And if you know that there is someone you do not want raising your children, then it becomes even more important for you to express your choice of guardian. If you haven’t committed your choice of guardian in a legally valid document, then a judge in the county probate court will decide who is best to raise your children without your input.

2. To avoid the cost, time, and public nature of a probate action in the county court. If you do not decide now how you would like to transfer your assets, then the probate court will be involved in distributing your assets. Almost everything that takes place in probate court is a matter of public record and anyone can see who will receive what. Additionally, the fees due to the lawyer and the representative of your estate are established by statute and are calculated on a percentage of the GROSS value of your estate (regardless of the amount of any debt).

3. To direct the disposition of your assets to your beneficiaries upon your death. With careful estate planning, you can direct your beneficiaries’ use of your assets long after your death. You can include conditions relating to the completion of education, require a certain level responsibility, or simply hold assets until a time you decide is best for distribution. If you Read more

Meet Tax Experts At TaxConnections...