LATE PETITION DOES NOT BAR TAX COURT CASE

Late petition does not bar Tax Court case. In our ongoing coverage of cases related to Tax Court, we analyze an Eighth Circuit case. The U.S. supreme Court found that the time limit to file a petition with the Tax Court was not a condition of the Tax Court’s jurisdiction but rather a non-jurisdictional rule […]

PRESENT VALUE OF ESTATE DEDUCTION RULES

Present value of estate deduction rules. The IRS and Treasury issued new regulations incorporating present value principles by which an estate may deduct certain expenses and claims against an estate under Section 2053. The primary issue addressed in the proposed regulations, Reg. 130975-08, had been left reserved at Regs. Section 20.2053-1(d)(6) by final regulations issued […]

HEALTH COVERAGE DEADLINE NOW EXTENDED

Health coverage deadline now extended. The IRS has announced that it is extending the due dates for sending certain health care information statements to individuals as required under the Patient Protection and Affordable Care Act, P.L. 111-148. The IRS has extended the date every  year since the PPACA’s requirement went into effect because a substantial […]

WHO QUALIFIES FOR SECOND STIMULUS CHECK

Who qualifies for second stimulus check. Congress is expected to work on another coronavirus relief bill, and continue hammering out the disputes that have kept a compromise together. This includes a second stimulus check, the who will get one and when will it arrive has everyone’s attention right now. Earlier Treasury Secretary Steven Mnuchin had […]

TAXPAYER CERTAINTY AND TAX RELIEF ACT

Taxpayer certainty and tax relief act. As the name implies this act is designed to give solid footing to those who are hard hit by a natural disaster and provide them with some tax relief. Over the last 31 years, we have served countless individuals and business owners who have been the victim of a […]

BLOOMBERGS TAX PLAN EXPLAINED

Bloombergs tax plan explained. As part of President Trump’s signature legislation–the Tax Cuts and Jobs Act–the top rate on ordinary income–things like wages, business income, and interest income, was reduced from a high of 39.^% to 37%. Of course, the U.S. tax system is a progressive system, meaning we pay higher taxes as our income […]

FORMULA FOR PAYING NO TAX ON 100k

Formula for paying no tax on 100k. The question of how much can we earn without paying federal income taxes is relatively easy to answer for most people. The standard deduction for a married couple is $24,400 in 2019 (if both are under 65 years old) and the top of the 0% capital gains tax […]

RETIREMENT CONTRIBUTION LIMIT RISES

Retirement contribution limit rises. The Internal Revenue Service announced that employees in 401 (k) plans will be able to contribute up to $19,500 next year. The IRS announced this and other changes in Notice 2019-59, posted on IRS.GOV This guidance provides cost of living adjustments affecting dollar limitations for pension plans and other retirement related […]

TAXPAYER FIRST ACT OF 2019

Taxpayer first act of 2019. This legislation was signed into law on July 1, 2019. The focus of the bill is to enact changes in the IRS’s organizational structure which includes customer service, enforcement procedures, management of information technology, and improving interactions with taxpayers. By September 2020, the IRS is required to draft new organizational […]

FINAL RULES PERMIT TRUNCATED TINS

Final rules permit truncated tins. In the ongoing effort to fight identity theft and tax refund fraud, the IRS has been issuing new rules and regulations, tightening security measures, coordinating efforts with both State Tax Authorities and the Tax Preparation and Tax Resolution Professional Community, all designed to increase awareness of the problem, and bring […]