It’s no secret identity theft is a major problem. And if you fall victim, a major headache. It would be great if identity thieves steal your tax information to pay your tax bill, but no. They’re stealing your refunds. Here are some steps to protect against identity theft the IRS suggests to keep your identity …
Did you know you don’t have to call the IRS to see when your tax refund will be in your bank account? In fact, the IRS recently updates their FAQs on the status of non-amended and amended returns and say you should refer to those rather than calling them. Due to COVID-19, there are still …
Going back in its long history, state community property laws were justified by the pragmatic recognition that such joint ownership recognizes the theoretically equal contributions of both spouses to the creation and operation of the family unit, as a basic component of a civil society. Currently there are only nine states which are considered “community …
When the Tax Cuts and Jobs Act (TCJA) was put into place at the end of 2017, one of the biggest disadvantages to taxpayers was the removal of miscellaneous itemized deductions for employee expenses. Employees used to receive a deduction on their schedule A for unreimbursed expenses incurred as an employee, but that is no …
The 2020 Recovery Rebate Credit (RRC) was implemented during the 2020 tax year on form 1040 as part of the CARES Act which became law in March of that year. The first and second round of stimulus checks were advance payments of the 2020 Recovery Rebate Credit. The RRC ensures that everyone who should have received …
On June 29, 2021, the IRS released draft instructions of forms K-2 and K-3, after receiving feedback on the initial instructions that were released in July 2020. These new draft instructions may be found here https://www.irs.gov/pub/irs-dft/i1065s23–dft.pdf. The new forms will be effective for the 2021 tax year. Don’t miss: What are duty free zones? Forms …
If you’ve caught a flight in an international airport, you’ve likely seen shops in the airport marketing that they are “Duty Free Zones”. While most people may assume this means that goods purchased there are free from some type of tax, have you ever stopped to wonder what a duty is, and why these shops …
In pre-COVID world, clients often came to our office to sign important paper tax filings. After signing, we mailed the forms certified mail/return receipt, so the taxpayer had proof of timely filing. After the pandemic started, clients struggled with getting forms signed and safely mailed. Last August, the IRS began allowing electronic signatures on certain paper …
Last week I was visiting with a friend of mine who runs a family-owned business in Colorado. I have historically removed myself from any financial or tax discussions with him as they have used the same local advisor for many years. However, as we were visiting the new local brewery the topic of taxation came …
In an effort to tamp down on fraud, the Internal Revenue Service has repeatedly reminded Americans it will never contact taxpayers by telephone. When the IRS needs to talk to you, it will send you a letter, directing you to call a telephone number or log in online. Now, the agency has gone a step …