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The New 20% Deduction for Pass-through Businesses

Section 199A of the Internal Revenue Code provides many taxpayers a deduction for qualified business income. The deduction has two components: Eligible taxpayers may be entitled to a deduction of up to 20% of qualified business income from domestic business operated as a sole proprietor or through a partnership, S corporation, trust or estate. Eligible […]

Proposed regulations on new 20% deduction for passthrough businesses

The IRS issued proposed regulations today for a new provision allowing many owners of sole proprietorships, partnerships, trusts and S corporations to deduct 20 percent of their qualified business income. The new deduction- -Section 199A deduction- – is available for tax years beginning after December 31, 2017. Eligible taxpayers can claim it for the first […]

Tips for Extension Filers

For taxpayers who have not filed: Taxpayers can still e-file returns For taxpayers owed a refund, get it direct deposited Taxpayers who owe taxes should consider using IRS Direct Pay, using a computer or mobile device Members of the military and those serving in a combat zone generally get more time to file. Military members […]

Here’s what taxpayer’s should know about penalty relief

After receiving a notice stating the IRS assessed a penalty, a taxpayer should check that the information in the notice is correct. Those who can resolve the issue may get relief from certain penalties, which include failing to: File a tax return Pay on time Deposit certain taxes as required Types of Penalty Relief: Reasonable […]

IRS offers penalty, filing relief to new transition tax on foreign earnings

Section 965 of the Internal Revenue Code, enacted in December 2017, imposes a transition tax on untaxed foreign earnings of foreign corporations owned by U.S. shareholders by deeming those earning to be repatriated. Foreign earnings held in the form of cash and cash equivalents are taxed at a 15.5 percent rate, and the remaining earnings […]

IRS New Strategic Plan; five- year plan to help taxpayers

Goal: To improve taxpayer service and tax administration. Strategic plan developed with input from external partners as well as IRS employees, focuses on six goals that will help improve customer service: Empower and enable all taxpayers to meet their tax obligations. Protect the integrity of the tax system by encouraging compliance. Collaborate with external partners […]

Taxpayers should know the telltale signs of a scam!

Summertime tends to be a period when thieves increase their scam attempts. They try to get people to disclose personal information like Social Security numbers, account information and passwords. To avoid being a victim, remember these telltale signs of a scam. The IRS will never: Call to demand immediate payment using a specific method such […]

Ways to Pay Taxes

Several payment options are available where taxpayers can pay immediately. Taxpayer should not ignore a bill from the IRS because as more time passes, interest and penalties accumulate. Some ways to make payments: Direct Pay. Can pay tax bills directly from a checking or savings account free. Taxpayers receive instant confirmation. With Direct Pay, you […]

How to Get Prior-Year Tax Information

The IRS recommends keeping copies of tax return and supporting documents at least three years. Keep documents-such as those related to real estate sales-for three years after filing the return on which the transaction was reported. Those who need a copy of their tax return should check with tax preparer first. Order a Transcript: Taxpayers […]

Taxpayers Who Owe Taxes Have Multiple Options

There are several easy options to pay taxes electronically. Those unable to pay on time, there are a variety of ways to take care of a tax liability. Tax filing deadline is April 17. Taxpayers who owe taxes can choose: Electronic Funds Withdrawal: allows taxpayer to e-file and pay from their bank account. Direct Pay, […]