IRS Releases Audit Figures For 2018 Fiscal Year
The Internal Revenue Service released their 2018 Data Book showing information relating to tax returns, refunds, examinations and appeals. The statistics show there was a 2 percent increase in tax returns filed for a total of over 250 million federal tax returns filed, of which a little over 150,000,000 were individual tax returns.
Is Now A Good Time To Do A Paycheck Check-up?
Thanks to the Tax Cuts and Jobs Act, this tax season has been one of the most confusing and complicated than in recent years. There were a host of issues affecting taxpayers, but the one you probably heard the most about in the news concerned tax refunds.
IRS Notices and Letters – “Real” and “Unreal” Audits
Getting a random, unexpected letter from the IRS is never welcomed mail – especially when that letter notifies you that the IRS asserts you owe more tax and you know you filed your return correctly and already paid the tax due.
This year’s IRS Dirty Dozen list includes overstatement of deductions. IRS puts out a list every year of the top 12 tax scams. One of those deductions includes charitable contributions. Making charitable contributions is not a scam, after all, it is a deductible expense; but, inflating the amount donated is considered falsely padding deductions and IRS is on the look-out.
IRS arrest and indict tax fraudsters and identity thieves
In recent weeks, the Internal Revenue Service conducted a national two-week enforcement and education campaign to combat refund crimes and identity theft working with the Department of Justice Tax Division and U.S. Attorneys around the country.
Some rules have changed for self-employed taxpayers under the Tax Cuts and Jobs Act (TCJA)
Sometimes businesses may experience tax losses. The deduction of those losses may be limited by tax law in certain situations. TCJA places additional controls over the amount of losses that sole proprietors, partners, S corporations shareholders and, typically, limited liability company (LLC) members can currently deduct – commencing in tax year 2018.
The IRS Dirty Dozen – Tax ID Theft Ranks Top of the List
The IRS releases a top 12 list of schemes each year known as the Dirty Dozen. The most recent list released March 6, 2019 shows that while there has been progress in the prevention and detection of false returns which may have used stolen identities to claim fraudulent tax refunds, scammers continue to modify their devious tactics to steal money and personal information from unsuspecting victims.
State and local taxes (SALT) cap excludes 10.9M people from prized tax break
The new tax reform law has some tax filers feeling the sting of a new cap on deducting state and local taxes, known as SALT deductions. The new law limits those deductions to $10,000. The sting is acutely felt for taxpayers living in high-tax states such as California, New York, Maryland and others where the cost of living is so high, their property taxes and state income taxes easily exceed $10,000.
Income Tax Refund 2019
Many Americans across the country are finding that they aren’t receiving the refund amount they had in previous years, and in some cases, even owe the IRS. What does this mean for you and what should you expect going forward? Read on to learn more about the recent tax refund changes.
The IRS expands its technological capabilities to help enforce tax law across 250 million Americans
Since budget cuts in 2010, the IRS has been under significant pressure to be smarter in cases they choose to examine. According to Vidya Kauri of Law360, research and investigative tasks are now aided by machine learning technology. The IRS is deploying additional algorithms and artificial intelligence to mine data from tax returns, bank reports, property records and even social media posts to identify patterns in graphs where noncompliance might be present. Read More
Ready For Tax Season?
IRS announced the filing season kicks off January 28, 2019, but how will returns be processed? The IRS recalled 46,000 workers to handle tax returns but won’t be paying them to ensure tax returns can be processed on time. Here are the services that will be occurring during the shutdown:
New Tax Reforms Puts an End to Recharacterization of Roth IRA Conversions
Both traditional IRAs and Roth IRAs allow your investment earnings to grow each year without being taxed. However, though the retirement plans are generally considered quite similar, key differences do exist. One important difference is that Roth IRAs provide you with tax-free income during retirement. Another key difference is that with traditional IRAs, you get a deduction for contributions made to the plan that year. Read More
Short sale is considered one transaction
The Tax Court held that a taxpayer couple's short sale did not result in a deductible loss because the sale of the house and the subsequent debt cancellation were both part of one transaction rather than two. The court also held that there was no gain or loss from the sale since the amount realized was greater than the taxpayers' loss basis but less than their gain basis.
Government Shutdown = Slow IRS Refunds
The IRS announced the filing season kicks off January 28, 2019. Millions of taxpayers expecting refunds file their returns as soon as possible. These households tend to need the money. The sooner the better.