Tax Return Identity Theft – Not Just a Problem at the Federal Level

Many are aware of the big problem of identity theft relative to federal income tax filings. More and more individuals have been filing their federal income tax returns, only to find out from the IRS that someone already filed one using their information and they absconded with your refund. What many don’t know is that …

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You Need to File an Amended Return: Now What?

You promised yourself back in January that you wouldn’t procrastinate on your tax return this year. It would be finished and filed by the middle of March, at the latest. But, sure enough, you found yourself scrambling on April 14th to round up all of your tax forms and enter them into TurboTax. And, as …

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Are PayPal Accounts Reported on the FBAR?

When filing your Report of Foreign Bank and Financial Accounts (FBAR), you may not be inclined to report your offshore PayPal account. After all, PayPal accounts aren’t real bank accounts, right? Well, you may need to think twice about this question. According to John C. McDougal, a senior special trial attorney with the Internal Revenue …

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What every trustee should know: the 65 day rule

Trustees interested in managing the tax burden of a complex trust should be familiar with the 663(b) election, also known as the “65 Day Rule”. Making this election can often help to lower the overall tax burden of the trust and its individual beneficiaries. Trusts pay the highest tax rate at the very low amount …

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Reporting Health Insurance Coverage on IRS Tax Forms

The majority of taxpayers have health insurance coverage for all of 2015 and simply check a box on their tax return. For those who don’t, the IRS shared the below hints on reporting your health insurance related information: Form 8965, Health Coverage Exemptions Complete this form if you need to claim an insurance coverage exemption …

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The Proper Way to Report Business Charitable Deductions

The rules for making charitable donations from your business are similar to those governing personal donations. For example, you can donate cash or property, your total deduction may be limited, you may need to get an appraisal to establish value, and you have to keep good records. The reporting of the charitable deduction depends on …

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Accountant Beware: How to Choose a Preparer Wisely

Having trouble finding a good accountant? The IRS can help! The IRS has a directory online that has a list of over 666,000 credentialed tax professionals. Each preparer listed has a valid 2015 Preparer Tax Identification Number (PTIN). The information you can find regarding each professional includes name, addresses and contact information. The list of …

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New Due Dates for Tax Returns – How Does This Affect You?

If you read about the due dates of all of the different types of tax returns changing, you are probably wondering how these changes affect you. If you have a C Corporation, the due date is pushed back to the fourth month following the end of the year. This will change the due date of …

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New Due Dates for Tax Returns

Everyone buckle your seat belts… there are new due dates for tax returns coming! The last time there was a due date change, there were temporary and proposed regulations in 2008 reducing the extension from 6 months to 5 months for Partnerships and Trusts, and those regulations became final in 2011. The latest change to …

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IRS: No More Estate Tax Closing Letters…Unless You Ask

On the IRS.gov website, the IRS announced that for estate tax returns (Form 706) filed on or after June 1, 2015, estate tax closing letters will be issued only upon request by the taxpayer. Historically, the IRS’s “Frequently Asked Questions on Estate Taxes” website has provided that personal representatives can expect a closing letter to …

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