BLATANT TAX CHEAT OWES $2.9 BILLION TO IRS

Blatant tax cheat owes $2.9 billion to IRS. Some tax schemes are harder than others for the IRS to uncover. And then some are actually pretty stupid. This is the latter. This particular fellow and his wife cheated the tax man over and over, for a total of $2.9 billion, but what makes this astonishing, […]

PENSION PLANS AS A TAX DODGE

Pension plans as a tax dodge. Pensions as a tax dodge are making a comeback with wealthy business owners. That’s an area where traditional pension plan’s are getting new life. Pensions, also known as defined benefit plans, can be used by doctors, law partners and wealth managers to stash hundreds of thousands of dollars in […]

IRS ANSWERS ON CARBON CAPTURE CREDITS

IRS answers on carbon capture credits.  The Internal Revenue Service has issued guidance to help businesses understand how legislation passed in 2018 may benefit those claiming carbon capture credits. Today’s guidance addresses the definition of “beginning of construction” and provides a sage harbor for partnership allocations of the credit. After the enactment of the Bipartisan […]

HURRICANE FLORENCE VICTIMS TAX DEADLINE

Hurricane florence victims tax deadline. It was extended by the IRS. IRS announcement IR-2018-187 extends the deadline for victims of Hurricane Florence. The IRS said it was extending the tax filing and payment deadlines for taxpayers and businesses in multiple North Carolina Counties that were hardest hit by Hurricane Florence and that have been designated […]

FILING THE FINAL RETURN OF A DECEASED PERSON

Filing the final return of a deceased person. It isn’t that complicated if you follow some simple instructions. In general, the final individual income tax return of a decedent is prepared and filed in the same manner as when they were alive. All income up to the date of death must be reported and all […]

TRUMP’S TAX CUTS NOT PAYING FOR THEMSELVES

Trump’s tax cuts not paying for themselves. At least not yet. Since the economy has been kick started by the tax cut, it looks like the economic expansion may grow the economy, and only time will tell if that will be enough to offset the increase in the deficit, with additional tax revenues. The Treasury […]

TAX PROFESSIONALS DATA SECURITY

Tax professionals data security. This was the main topic at the Tax Security Summit 101. As cyber criminals continue to increasingly pursue tax professionals data, the IRS and the Security Summit partners released lessons learned by the tax community to help others avoid being targeted by identity thieves. In recent years, hundreds of tax professionals […]

Winners and losers from new kiddie tax

Winners and losers from new kiddie tax. There will have new winners and losers so beware parents and grandparents. It will also raise the cost of giving sharply in some situations. The tax is a special levy on a child’s “unearned” income above $2100. It typically falls on investment income such as dividends, interest and […]

NEW STANDARD MILEAGE RATES

New standard mileage rates. These are in effect for tax year 2018 have been published in IRS publication Notice 2018-42. This notice modifies Notice 2018-03, 2018-2 I.R.B. 285 (released to the Public on December 14, 2017), in light of Public Law 115-97 (December 22, 2017), which made amendments to sections 66 and 217 of the […]