Recent Gift (on or after June 17, 2008) from an Expatriate?

Typically, the person who receives the gift doesn’t have to worry about the tax, because that tax liability typically falls on the donor. Well, if the donor happens to be a covered expatriate then that tax liability may now land on you with the new IRS proposed regulation (REG-112997-10). This regulation deals with gifts or …

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IRS Taxpayer Advocate Employee Charged with ID Theft

An employee who worked in the IRS’s Taxpayer Advocate office in Birmingham, AL is facing multiple charges in an identity theft scheme. Four people were arrested and charged last month including Nakeisha Hall, 39, an IRS employee who worked in the Taxpayer Advocate Service office in a role that was supposed to assist taxpayers experiencing …

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Make Your CPA Fall in Love During Tax Season

Valentine’s Day is upon us, and once I’ve purchased flowers for my fiancée, I will once again join the ranks of many other CPAs across the country preparing thousands of tax returns for clients of all shapes and sizes. While no two clients are the same, there are some common things clients can do to …

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Interesting Tax Deductions

The IRS gives guidelines on what is deductible for individuals to take on Schedule A of their individual income tax returns, as well as business expenses or casualty losses. People tend to make their own interpretations of the IRS guidelines on tax deductions and the IRS does not always allow what people try to claim. …

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Why Did I Get this Form 1095? New ACA Info Statements

This January many individuals will receive a Form 1095 for the first time. Form 1095 is part of the expanding ACA (Affordable Care Act) information reporting necessary to determine if you had required health insurance coverage in 2015: The IRS wants you to know these important facts about Form 1095: While the information on these …

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When should an appraisal of a non-cash charitable contribution be performed?

Taxpayers who make charitable contributions of non-cash property could be putting themselves in IRS penalty danger if the contribution is more than $5,000 and the property has not been appraised by a qualified appraiser who has issued a qualified appraisal report. A recent Tax Court case emphasizes the need for an appraisal report to be …

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New Penalties on 1099s Affect Non-Profit Organizations

In July 2015, President Obama signed into law the Trade Preferences Extension Act of 2015. Included on the bill was an important provision that affects non-profit organizations as well as for-profit businesses and individuals.The Act included a substantial increase to filing penalties for information returns 1099 and 1096 filed after December 31, 2015, effectively doubling …

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New 529 Account Rules Passed with Extender Provisions

Many are aware of the last minute tax “extender” provisions passed in December, 2015. But you may not be aware of the numerous other tax provisions passed in conjunction with this legislation. One of them being relative to section 529 plans. The end of year legislation known as the Consolidated Appropriations Act (H.R. 2029), made …

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It’s About Time! R&D Tax Credit Now Permanent

The latest Tax Extenders Bill signed by the President makes the Research & Development (R&D) Tax Credit permanent. This particular credit has been extended by Congress several times over the years and many critics argued that this should be made permanent as it provides benefit to many innovative small businesses. By making this credit permanent, …

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New Tax Penalty Rules Passed with 2015 Extender Provisions

Many are aware of the last minute tax “extender” provisions passed in December, 2015. But you may not be aware of the numerous other tax provisions passed in conjunction with this legislation. One of them being relative to new tax penalty rules. The end of year legislation known as the Consolidated Appropriations Act (H.R. 2029), …

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