IRS offers penalty relief for under withholding

As you begin to assemble your information for your 2018 tax filing, you may be feeling a little apprehensive – as are many other taxpayers. Not only are you concerned about how the new tax law will impact your 2018 return – there have been numerous reports warning us that the withholding tables may have …

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Government shutdown: IRS recalls workers for tax season

Worried about not getting a refund due to the government shutdown? According to the IRS, you shouldn’t be. The IRS is recalling (without pay) about 46,000 of its employees that have been furloughed due to the government shutdown to handle tax returns and pay out refunds. Up until this point, only about 10,000 IRS employees …

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Can I deduct business trip expenses for my spouse?

I’m sure the question has come up many times for a sole proprietor or business owner. Are the travel expenses of your spouse deductible if he/she joins you on a business trip? Well, the answer is not a simple “yes” or “no” without asking further questions because the IRS rules are quite restrictive. Question 1: …

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Classifying workers: employee or contractor?

Every business with employees and independent contractors should periodically review the status of workers to see if they’re properly classifying workers. Employees must have federal income and Social Security taxes withheld. Matching Social Security taxes and federal unemployment taxes are paid by the employer on employee wages. Employees are also eligible for fringe benefits and …

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Arizona tax reform conformity, ADOR issues announcement

On January 10, 2019, the Arizona Department of Revenue issued a news announcement about tax reform that said . . . a whole bunch of nothing. This is not the fault of the Arizona Department of Revenue (ADOR) – they can only do what the legislature gives them information to do. And so far, it …

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Can you carry over your charitable contributions?

Do you make charitable contributions because you get a tax deduction, or do you make them because you believe in the mission of the nonprofit organization? Or is the real answer somewhere in between those two? Regardless of your answer, there may a time when your charitable contributions made in a tax year exceed the …

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The government shutdown and your taxes

A partial government shutdown began on December 22, 2018. The IRS created a contingency plan in late November in anticipation of the shutdown. The contingency plan identified 9,946 IRS employees who were “excepted/exempt” employees. The excepted employees are not impacted and continue to work during the government shutdown. The functions that continue during the shutdown …

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2019 tax figures adjusted for inflation

As the New Year starts, it is quite normal to start thinking about your taxes – filing your 2018 return as well as your tax picture for 2019. The IRS recently released the 2019 tax figures adjusted for inflation. Just to be clear, these are not the figures that you will see on your return …

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Section 199A: Fund your retirement to qualify

What type of taxpayer are you? Do you meet with your tax advisor prior to the end of the year and strategize, or are you more “let the chips fall where they may”? This may be the year where tax planning and using a retirement plan could pay off when it comes to tax savings. …

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Section 199A: How do we plan for this?

We are always looking for bigger, better ways to save when it comes to paying taxes, right? Section 199A is proving it may be just that. BUT what exactly is Section 199A and how do we plan for it when there are still so many unanswered questions? Section 199A is also known as the Qualified …

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