In early 2020, the CARES Act dropped the required minimum distribution (RMD) requirement for year 2020. However, if you received a RMD from your retirement account in prior years, you may realize that life expectancy tables are used to calculate your annual RMD amount. Don’t miss: IRS transcripts masked for identity protection To calculate an …
Identity theft has long been a serious issue for taxpayers in the United States, with thousands of taxpayers each year having their personal information fall into the wrong hands. Fortunately the IRS has taken yet another step to combat this growing trend – since December 13, sensitive information has been masked on taxpayer transcripts. Don’t …
There are numerous ways to own real estate and these ownership arrangements have significant legal and tax ramifications. Let’s take a look at some of the most popular arrangements and what might happen after death. First, let’s assume that John and Jane Smith are married, and that Joe Nelson is John’s business partner. John died …
Even in death, you cannot escape your IRS reporting requirements, including FBAR reporting and penalties. In U.S. v. Wolin, 126 AFTR 2d 2020-XXXX (DC NY, 09/28/2020), Leo Ziegel owned a Swiss bank account. He had signature authority over the account and wrote checks and made withdrawals from the account for his benefit between 1999-2008. Ziegel …
All taxpayers who have ever filed tax returns or had tax forms filed in their name (such as W-2s, 1099s, etc.) have a record of these filings with the IRS in the form of a transcript. As the IRS processes tax forms, the information reported is stored in their computer systems and organized based on …
The Social Security Administration announced a 2021 increase to the amount of wages subject to the old age, survivors, and disability insurance (OASDI) tax. The wage limit was $137,700 for 2020 but will rise to $142,800 starting in 2021. This amount changes each year with the national average wage index. The current Social Security (OASDI) …
Unfortunately, due to COVID-19, a lot of individuals have had to make the difficult decision to close their businesses. Closing a corporation legally has several steps and boxes to check to make sure the business is permanently closed. A corporation is a separate tax-paying entity with shareholders who own capital stock. S corporations are corporations …
Mortgage interest rates have decreased this year and a lot of people have jumped at the opportunity to refinance their home mortgage loans to take advantage of these lower rates. So, what does this mean for your tax situation? As you may already know, the IRS allows you to deduct your home mortgage interest on …
The march to e-filing tax returns has been a slow one. In fact, it started over 30 years ago in 1986 when the Internal Revenue Service (IRS) began a small test program where only five tax preparers from the metropolitan areas of Cincinnati, Raleigh-Durham and Phoenix agreed to participate. I was actually doing taxes in …
In case of emergency: break glass, stop drop and roll, dial 911. These are all practices that have been instilled in our minds since childhood as proper responses to a crisis situation. Personally, I just try to find an adult. But what do you do if you have a tax problem that even your CPA …