Your Guide to State, Local, Federal, Estate + International Taxation

Schedule C: Doing business in CA as a single member LLC

Something you may need to beware of is the single member LLC (SMLLC) rules of California. Even if you have a net LOSS. Take note that if you are a single member LLC doing business in California, you may happen to fall into a small category of certain filing requirements. As a single member LLC, …

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10 Tips for choosing a tax preparer

Filing your taxes is a big deal. You want a good preparer who knows their stuff, especially since you are ultimately responsible for the information that’s reported to the IRS, even if someone else prepares your return. So, here are 10 tips from the IRS for choosing a tax preparer. Check their qualifications. You can …

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How scholarships can help your education tax credits

Many of you may have personally taken an education tax credit on a return at some point or perhaps have taken one for a child. Just as a quick refresher – there are two education tax credits currently available on your federal income tax return: American Opportunity Tax Credit. A potential credit of up to …

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SSA’s No-match letters are going out again

What’s a “no-match” letter, you ask? It’s a letter sent by the Social Security Administration (SSA) to employers who are identified as having at least one name and Social Security Number (SSN) combination reported on Form W2 that does not match SSA records. This notice, commonly referred to as no-match letter, informs the employer that …

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AZ sues CA over “doing business” interpretation

In the latest battle over the position of the Franchise Tax Board on taxpayers doing business in California, the State of Arizona has decided to sue California. Arizona is alleging that California is imposing an unconstitutional tax against Arizona businesses and individuals who don’t conduct any business in California. California currently imposes the California $800 …

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Scammers go after international students’ money

Scammers pretending to be from the federal government are scaring international students into paying them money. The FTC says it has received report that foreign students – particularly from South Asian countries – are getting phone calls that look like they’re from the government. The scammers typically know about a student’s immigration status and the …

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Annual exclusion gifts and your tax picture

In 2018, the IRS increased the annual gift tax exclusion to $15,000. The exclusion will remain at $15,000 for 2019 too. What does this mean for gifts you make? Each year, you can gift up to $15,000 per person before the gift is considered taxable and without being required to file a gift tax return …

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Name change? Don’t forget about the tax impact

When you legally change your name, there are tax consequences you need to address – especially at tax time. Maybe you got married, are going back to your former name after a divorce or adopted a child who’s taking your family name. Whatever, the IRS wants you to remember these important things: Report the change …

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How divorce impacts your tax filing status

Your filing status for federal income tax purposes depends on your marital status under state law on the last day of the calendar year – December 31. Legally separated/divorced If, as of December 31, you are legally separated under a final decree of separate maintenance, or a final divorce decree has been issued, then you …

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IRS revamps EIN process to enhance security

As part of its ongoing security review, the IRS is making a change to the Employer Identification Number process. Starting May 13, only individuals with tax identification numbers may request an EIN as the “responsible party” on the application. This will provide greater security by requiring an individual – instead of entity – to be …

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