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Tag Archive for Federal Tax Return

Tax Advisor’s Reference Guide – 292 Pages Of Individual Federal Tax Return Instructions

With all the changes in taxes this year, it takes an ace tax advisor to figure them out. Therefore we want to make certain our members and followers have access to the most up-to-date information in preparing clients individual federal tax return.  We are providing you the Tax Advisors Reference Guide with 292 pages published by the IRS  for those of you preparing federal tax returns for tax clients. What is also wonderful about this publication is it provides all the Tax Forms you will need to prepare tax returns in English, Spanish, Chinese, Korean, Russian and Vietnamese. Read more

FBAR Must Be Filed Electronically Through FinCEN’s BSA E-Filing System, Not With The Federal Tax Return

FBAR must be filed electronically through FinCEN’s BSA E-Filing System. The FBAR is not filed with a federal tax return.

Public Law 114-41 mandates a maximum six-month extension of the filing deadline. To implement the statute with minimal burden to the public and FinCEN, FinCEN will grant filers failing to meet the FBAR annual due date of April 15 an automatic extension to October 15 each year. Accordingly, specific requests for this extension are not required.

Thus, before the FBAR extended due date of October 15, file streamlined FBARs for each of the most recent 6 years for which the FBAR due date has passed (i.e., is delinquent, and of course timely file the current year FBAR too). Read more

2017 Year-End Tax Savings Tips – Do Not Overlook

William Rogers, Tax Advisor

With the possibility that tax law changes could go into effect next year that would significantly reduce income tax rates for many businesses, 2017 may be an especially good year to accelerate deductible expenses. Why? Deductions save more tax when rates are higher.

Timing income and expenses can be a little more challenging for accrual-basis taxpayers than for cash-basis ones. But being an accrual-basis taxpayer also offers valuable year-end tax planning opportunities when it comes to deductions. Read more

How Long Does The IRS Have To Audit A Tax Return?

A federal audit is, not surprisingly, an unwelcome event for most taxpayers. An audit is stressful and may result in a taxpayer owing additional money to the Internal Revenue Service (IRS). One question that many taxpayers have concerning federal audits is how long the IRS can take before auditing a tax return after that return has been filed. While the common perception that the statute of limitations on IRS tax audits is three years, the fact is that there are plenty of instances where the IRS can take much longer than that to audit one’s return. Below is a brief overview of the statute of limitations on tax audits in certain situations.
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Get Credit for Generating Your Own Home Power

Through 2016, taxpayers can get a tax credit on their federal tax return equal to 30% of the costs for installing certain power-generating systems on their homes. The credit is non-refundable, which means it can only be used to offset a taxpayer’s current tax liability, but any excess can be carried forward to offset tax through 2016.

Systems that qualify for the credit include the following:

• Solar water heating system – Qualifies if used in a dwelling unit used by the taxpayer as a main or second residence where at least half of the energy used by the property for such purposes is derived from the sun. Heating water for swimming pools or hot tubs does not qualify for the credit. The property must be certified for performance by the Solar Read more

Exemptions On The Federal Tax Return

1040 tapeTwo types of exemptions are allowed – personal and dependents. There are special situations for a noncustodial parent of divorced or separated parents to claim a dependent and situations where several persons may contribute to the support of another person.

Personal Exemptions

These are for the taxpayer(s) filing the return – one for single, head of household, and married filing separate, and two for married filing joint. Each personal exemption is $3,900 for 2013 ($3,950 for 2014).

Dependents Exemptions

Tax payers are allowed one exemption for each dependent who must at some time during the year, qualify as a:

(a) Citizen of the U.S.

(b) U.S. national who has permanent allegiance to the U.S.-one born in American Samoa or the Northern Mariana Islands who has not become a naturalized American citizen. Read more