It’s been a tough decade or two for farmers and ranchers in the Southwest. Arizona is now in its 26th consecutive year of a long-term drought even though the 2021 August monsoons produced 200% of normal rainfall. These extremely dry conditions have forced some farmers and ranchers to sell livestock. The federal government is providing …
As I was reviewing a final 2020 individual tax return last week, I needed to go back and look at the client’s 2017 and 2018 1040 tax forms . I already had the 2019 return open, just to make sure all of the carryovers had come over correctly. And I said to myself – “what …
During the 2020 tax season, the singular phrase that was overheard reminded me that I had not started a blog yet on the funny things heard towards the end of any filing season – whether it is the spring filing season (the main one) or this mini one here that deals with returns on extensions, …
Teachers, here’s a pop quiz for you. What is the educator expense deduction? Are you an eligible educator? What educator expenses are tax deductible? How much can you deduct? Don’t miss: Identifying information to gather before calling the IRS The educator expense deduction allows teachers and administrators who qualify to deduct a portion of the …
You’ve been on hold with the IRS for what seems like three days, and you’ve finally connected with a living, breathing human being! You’re probably feeling like you just won the lottery. Not so fast. All your patient waiting will have been for nothing if you don’t have the right identifying information the IRS is …
When you’re budgeting for 2022 don’t forget the Arizona minimum wage is going up. Starting on January 1, 2022, the minimum hourly wage for the state will be $12.80. Don’t miss: Need an estate tax closing letter from the IRS? The pay bump is part of Proposition 206, passed in 2016. Prop 206 raised the …
An estate tax closing letter is a confirmation that the Internal Revenue Service will provide to the fiduciary of an estate after they have finishing reviewing and have accepted a Form 706. According to the IRS website, a fiduciary should wait at least nine months after the filing of the Form 706 to request the …
Getting educated solely from the School of Hard Knocks or the University of Life is something Uncle Sam would like to help us avoid. To that end we have 529 plans and other education tax benefits. What are they? Simply put, a 529 plan is an investment account that offers tax benefits when used to …
Each year, the Internal Revenue Service makes inflation adjustments for the allowable amount of depreciation that can be taken on cars and trucks. The IRS has just released the updated inflation adjustment for depreciation amounts for 2021. Don’t miss: Fuzzy math gives IRS Math Error Authority Passenger vehicles placed into service in 2021 that were …
Unknown to many, including yours truly until recently, the IRS has a special power called Math Error Authority. Congress provided the IRS this authority to bypass normal audit and deficiency procedures in favor of this abbreviated process. Don’t miss: Are nonfungible tokens the new Bitcoin? Its purpose is to allow the IRS to assess a …