IRS AND TREASURY ON SECTION 1256 CONTRACTS

IRS and Treasury on section 1256 contracts. The IRS and Treasury put out information to further clarify Section 1256 mark to market rules, defining foreign currency contracts. It had a lengthy preamble, which noted that other types of contracts may be rules by Section 1256, which covers, not just foreign currency contracts, but a variety […]

IRS BEGINS CORRECTING TAX RETURNS

IRS begins correcting tax returns. The Internal Revenue Service will begin issuing refunds to eligible taxpayers who paid taxes on 2020 unemployment compensation that the recently enacted American Rescue Plan later excluded from taxable income. The IRS identified over 10 million taxpayers who filed tax returns prior to the American Rescue Plan of 2021 becoming […]

RETIREMENT ENHANCEMENT ACT EXPLAINED

Retirement enhancement act explained. This Act, also known as the Secure Act, allows for non-taxable income received by home healthcare workers “difficulty of care” payments, to be treated as compensation for purposes of contributing to defined contribution plans and IRAs. The maximum penalty free distribution is $3,000 per individual per birth or adoption. As  a […]

IRS DETAILS ON FOREIGN EARNINGS

IRS details on foreign earnings. The Internal Revenue Service provided additional information to help taxpayers meet their filing and payment requirements for the Section 965 transition tax on untaxed foreign earnings. The Tax Cuts and Jobs Act requires certain taxpayers that have untaxed foreign earnings and profits to pay a tax as if those earnings […]

TAX SHELTERS TO PROTECT YOUR MONEY

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Tax Shelters to protect your money. When it’s time to settle with Uncle Sam at the end of the year, don’t overlook some IRS approved tax shelters that might lower your tax bill. Set up a retirement account to lower your taxes. A 401K or other type of tax deferred retirement account like an IRS […]

TAX SEASON WILL BE A MESS

Tax season will be a mess. It was going to be a mess even before the government shutdown happened. Now it’s going to be an even bigger mess. Will you get a tax refund this year ? Or any refund ? The government shutdown is over (for now) and IRS workers are back on the […]

IS YOU HOBBY REALLY A BUSINESS ?

Is your hobby really a business ?  This determination is crucial if you want to be able to write off certain expenses, or whether the income is actually a business. The Tax Cuts and Jobs Act has eliminated the deduction for expenses for a hobby with the change to the Schedule A. This has made […]

TWO REASONS FOR A RECESSION IN 2020

Two reasons for a recession in 2020. While the economy has been booming, and the stock market has been doing well, nobody has spoken about a recession. But with the latest economic upheaval, caused by the reversal in the stock market, the slow down caused by rising interest rates, and the trade dispute with China, […]

REGISTERING FOR ONLINE SELF HELP TOOLS

Registering for online self help tools. This has been made easier by the IRS. To better protect taxpayers, the IRS upgraded its identity verification process for certain online self help tools. The purpose is to prevent taxpayer impersonations and account takeovers by identity thieves. Because the Secure Access Authentication platform is more rigorous, it helps […]

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 […]