DEMOCRATS TO RAISE TAXES ON HIGH EARNERS

Democrats to raise taxes on high earners. Senate Democrats have reached an agreement to increase the tax rates on high income wage earners. They believe these individuals have been misusing or in some cases abusing a loophole in the tax law to avoid paying taxes. The lawmakers in the Senate plan to close the loophole […]

IRS ON IDENTITY THEFT PROTECTION

IRS on identity theft protection. At the IRS Website, IRS.GOV, you may find helpful information on how to address Identity Theft and what to do to protect yourself. Tax related identity theft occurs when someone uses a taxpayer’s stolen Social Security Number to file a tax return claiming a fraudulent refund. In the vast majority […]

REQUIRED MINIMUM DISTRIBUTIONS

Required minimum distributions. The IRS recently issued regulations regarding required minimum distributions under the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE ACT), which made several changes to retirement regulations and the proposed regulations are updates to reflect the amendments. The SECURE Act eliminated the “stretch IRS” for just about everyone who […]

STATES CANNOT USE AID FOR TAX CUTS

States cannot use aid for tax cuts. After large stimulus measures were passed by Congress, several Republican Attorney General’s filed suit to try to allow those particular states to use the money to implement tax cuts. One of the arguments used was the “sovereignty” argument. This is a different form of the “sovereignty” argument.  Ohio […]

TAX TREATMENT OF STATE AND LOCAL TAX REFUNDS

Tax treatment of state and local tax refunds. In IRS Rev. Rul. 2019-11, the Internal Revenue Service addressed how the long standing tax benefit rule interacts with the new $10,000 limit on deductions of state and local taxes to determine the portion of any state or local tax refund that must be included on the […]