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Tag Archive for Taxpayer

IRS Reminds Taxpayers To Report Virtual Currency Transactions

Income Tax Return, Virtual Currency Transaction, IRS, Taxpayer, Thomas Kerester, Tax Ambassador, Tax Blog, Washington D.C., USA, TaxConnections

WASHINGTON — The Internal Revenue Service today reminded taxpayers that income from virtual currency transactions is reportable on their income tax returns.

Virtual currency transactions are taxable by law just like transactions in any other property. The IRS has issued guidance in IRS Notice 2014-21 for use by taxpayers and their return preparers that addresses transactions in virtual currency, also known as digital currency. Read more

Taxpayers Should Report Name Changes Before Filing Taxes

Lance Morris, Tax Advisor, Bangkik, Thailand, Tax Blog, TaxConnections

When a taxpayer changes their name, that change can affect their taxes. All the names on a taxpayer’s tax return must match Social Security Administration records. A name mismatch can delay a tax refund. Here’s what a taxpayer should do if anyone listed on their tax return changed their name:

  • Reporting Taxpayer’s Name Change. Taxpayers who should notify the SSA of a name change include:
    • Taxpayers who got married and use their spouse’s last name.
    • Recently married taxpayers who now use a hyphenated name.
    • Divorced taxpayers who now use their former last name.

Read more

How Soon You’ll See The Results Of The New Tax Bracket

Barry Fowler, Houston, TX, Tax Advisor, Tax Blog, TaxConnections

If you’re an American taxpayer who gets a paycheck, I imagine you’re pretty anxious to see how the new tax code is going to put more money into your pockets each pay period.

The IRS says they should have everything ready to reflect the changes by February. So, you could be seeing extra cash if you are in the top five tax brackets with your February paycheck. Read more

How To Know If The Knock On Your Door Is Actually Someone From The IRS

Jeffrey Schweitzer, Tax Advisor, Tax Blog, TaxConnections

People can avoid taking the bait and falling victim to a scam by knowing how and when the IRS does contact a taxpayer in person. This can help someone determine whether an individual is truly an IRS employee.

Here are eight things to know about in-person contacts from the IRS. Read more

Get Ready To File Taxes

Michael Madewell, Tax Advisor, Ozarks, TaxConnections

With the tax filing season right around the corner, the IRS encourages taxpayers to visit IRS.gov for tax tools and resources. Taxpayers can resolve nearly every tax issue on the IRS website.

IRS.gov provides many self-service tools and features, including these six: Read more

Selling Your Home May Not Be A Taxing Event

Spring and summer in some areas of the country are prime times to sell a home.

In warmer climates like Texas, Florida, Arizona, Nevada and the Carolinas, the home buying/selling season is less defined. In more temperate climates it rarely matters when you put you home on the market. Read more

Year End Tax Points And Recent Developments

TaxConnections Member Harold Goedde
Timing of year-end contributions:

Contributions made by check are deductible in 2015 if the check is mailed by year-end. If payment is made by bank credit card, it is deductible in 2015 if the charge is made by year-end.  It doesn’t matter when the credit card payment is made. If the donation is made with a retail store credit card, the deduction cannot be taken until the card is paid, even though it was charged in 2015.

Donations of securities and other property:

This is an excellent way to make a contribution without paying cash. Taxpayers can deduct the fair value of the securities on the date of the gift.  Donating appreciated securities is a good move because if you sold the securities Read more

Transfer of Cross-Border Pensions To Your RRSP

Below is a CRA confirmation of this.

Numerous immigrants to Canada or those residing in Canada but have worked for say U.S. employers have entitlements to U.S. pensions such as 401K plans and in some circumstances they have U.S. IRAs. The Income Tax Act has provisions to allow transfers including a claim for any U.S. withholding tax or for applicable early withdrawal penalties.

Examination of both the U.S. and Canadian tax provisions should be dealt with before any transfer takes place to ensure the rollover is available in Canada.


TRANSFER OF SWISS PENSION TO AN RRSP Read more

§ 165(e) Loss Claimed On Theft of Money/Investment

I am pleased to announce another successful settlement for a client.

IRS denied a big deduction based on a Ponzi type investment stating the taxpayer had claimed the deduction in the wrong year. It must be the year it came to his attention and only up to the amount lost especially if there is a chance to recover some in the future.

The matter was set to go to trial in Miami, but I reached agreement he would deduct 80% in the year the loss was claimed and 20% in the year in which there was certainty he had lost everything. That year is still open to claim the 20%. Protective filings were made by his accountant.

The turning point was making clear the evidence we would present to back-up the client’s claim. This convinced the Read more

TaxConnections Internet Tax Summit – Free Ticket

Go To This Link To Register For A Free Ticket To TaxConnections Internet Tax Summit>>>

https://www.taxconnections.com/internet_tax_summit

 

We have received many calls regarding TaxConnections Internet Tax Summit September 21-23rd 2015. For the very first time in history, we are inviting Tax Experts to educate taxpayers and businesses on very important tax issues most people have no knowledge of these days. The information we are receiving from leading tax experts is Read more

Application of Foreign Earned Income Exclusion to Civilian Contractors Working In Combat Zones – Part II

This is Part II of a two-part blog series. After establishing that they have a tax home in a foreign country, taxpayers must still establish that they satisfy the 330 day physical presence test or the bona fide residence test. See IRC section 911(d)(1).

I. 330 Day Physical Presence Test

The 330 day physical presence test is the epitome of a “hard and fast rule.” To satisfy the test, the taxpayer must establish the following (there are “no ifs, ands, or buts about it”):

(1) That he is a U.S. citizen or resident of the United States, and

(2) That he was physically present in a foreign country or countries for at least 330 full days Read more

Application of Foreign Earned Income Exclusion to Civilian Contractors Working In Combat Zones – Part I

This blog addresses the foreign earned income exclusion rules as they apply to civilian contractors, and other civilian employees, who work in foreign country combat zones. By “civilian,” I am specifically referring to individuals who are not employees of the United States or any agency of the United States.

I. IRC Section 911 Foreign Earned Income Exclusion

Let’s start with some basics. IRC section 911(a)(1) allows a “qualified individual” to exclude his foreign earned income and housing costs from gross income. In the same way that the foreign tax credit limitation limits the foreign tax credit to the amount of U.S. tax attributable to foreign-source income, IRC section 911(b)(2)(D) limits the amount of foreign earned income that may be excluded to an amount adjusted annually for inflation. Read more

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