3 minutes read
IRS Commissioner John Koskinen recently suggested that the 2015 tax filing season could be misery for taxpayers and IRS employees alike. Between extensive wait times to speak to a representative, implemented laws that have not yet been reflected in the tax code and congressional gridlock, this may be the worst tax season on record.
1 minute read
The deadline to submit 2013 tax returns to the IRS for taxpayers who elected to file extensions is Wednesday, October 15th. Failure to do so may result in the penalties and interest assessed on due taxes. Please note, that if you did not file your taxes yet, and did not file for an extension, your taxes were due on April 15th and you are already accruing penalties and interest on any taxes due.
5 minutes read
The Foreign Account Tax Compliance Act (FATCA) is a United States federal law that was passed by Congress in 2010. The goal of the FATCA is to limit tax evasion by requiring (1) U.S. citizens to report any financial accounts held outside the U.S. and (2) foreign financial institutions to report their U.S. clients to the Internal Revenue Service (IRS). Originally implemented to ensure that said tax evaders couldn’t get away by hiding their assets in...
5 minutes read
If you had a choice, is it better to save money on your taxes in the form of a tax break upfront or as a reduction of your overall tax liability? The answer to this question depends on your circumstances and the impact that tax credits and tax deductions have on your overall tax bill. It is important to understand the difference between credits and deductions as you look at your tax situation from year to year. Determining whether credits or deductions are...
5 minutes read
The only certainties in life are death and taxes, as the saying goes. Taxes are an annual event that, however unpleasant, we all have to deal with. It may interest you to know that according to the Internal Revenue Service (IRS), an estimated 239.3 million tax returns were filed in 2012 by individuals and businesses in the United States. That amount exceeded by a little more than 1% the number of returns that were filed in 2011, and by 2018 that...
4 minutes read
Going green isn’t just the next big thing—it’s the wave of the future. There is abundant information available about ways in which you can reduce your carbon footprint, save money and feel better about your role in the stewardship of this planet. Both federal and many state governments recognize the importance of energy savings and conservation and have provided tax breaks and incentives to businesses and individuals to encourage energy efficiency and going...
4 minutes read
There are tax breaks that come along with owning your home. These breaks may serve as an incentive for the purchase of homes within certain targeted areas of the country or may make up for any losses a homeowner might face when selling his or her home. As a homeowner it is important to understand what tax breaks are available to you in order for you to take advantage of them and help your tax situation.
4 minutes read
Divorce can be a sensitive topic and a difficult period of time for all the parties involved. Whether you live in a common law or community property state, the process of filing taxes once the divorce has been finalized can be both emotional and complicated. Deciding how assets are split, the cost basis of these assets, new filing status and even which former spouse will claim children as dependents are all important considerations that go into the tax...
5 minutes read
For most U.S. taxpayers the tax filing process is usually limited to the 1040-EZ or 1040 long form, used for the annual tax return in order to claim deductions and credits necessary to lower the amount owed in taxes and hopefully increase the amount of money due as a refund. In some situations however, your income and tax circumstances may require you to use additional or special tax forms to complete their tax filings.
4 minutes read
If you’re a small business owner or sole proprietor, the biggest tax mistake you’re making may have nothing to do with the actual filing of your return. It could have everything to do with your estimated tax payments—specifically when you fail to pay them. Failing to pay your quarterly taxes could lead to penalties come tax time. No one wants to be surprised by owing the government money on April 15th. To avoid that unpleasantness, you need to set aside some...