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Beware Of Scams During Tax Filing Season

Leave a comment Data Theft, Identity Theft, Phishing, Tax Scams

It’s tax filing season and criminals are in full force trying to implement fraudulent schemes and take advantage of the multitudes of personal data and information floating around the internet, mail, and phone lines. Taxpayers should be aware of the following tips to ensure that they do not become the victims of these various internet and telemarketing scams, since the financial ramifications may be devastating.

Taxpayers should remember that the IRS will NEVER:

  • Call to demand immediate payment over the phone, nor will the agency call about taxes owed without first having mailed a notice of an amount due.
This is a preview of Beware Of Scams During Tax Filing Season. Read the full post (379 words, 1 image, estimated 1:31 mins reading time)

Most Confusing Parts Of The Income Tax Code, Part 5: Earned Income Tax Credits

Leave a comment Earned Income Tax Credit (EITC)

Many provisions of the Internal Revenue Code are complicated. Proper interpretation of the rules and regulations contained in these provisions requires the assistance of an experienced and knowledgeable tax professional. The fifth part of the series about the most confusing provisions of the Internal Revenue Code addresses earned income tax credits.

Why Is It Confusing?

  • Complicated definitions and rules
  • Multitudes of required calculations

In 2004, Congress made this credit for low-income taxpayers slightly less confusing by adopting a uniform definition of a qualifying child. But even the tests (relationship, age, residency, and joint return) to be a qualifying child under the EITC may be confusing and cumbersome for many taxpayers.

This is a preview of Most Confusing Parts Of The Income Tax Code, Part 5: Earned Income Tax Credits. Read the full post (450 words, 1 image, estimated 1:48 mins reading time)

The Estate Tax Is Dead. What This Means For The Rest Of The Living

Leave a comment Donald J. Trump, Estate Tax

The original purpose for the enactment of the estate tax in 1916 was to be a temporary tax used to pay off the war bonds of WWI. One hundred years later and it’s still around. However, Donald Trump has pledged to repeal the estate tax, although presidential candidates promising to repeal the estate tax is standard campaign rhetoric in every election. However, this time around, with the incoming Trump Administration, it may be more than just talk.

This is a preview of The Estate Tax Is Dead. What This Means For The Rest Of The Living. Read the full post (462 words, 1 image, estimated 1:51 mins reading time)

Fitzpatrick V. Commissioner & The Trust Fund Penalty – The Aggressive IRS Loses A Big Case

Leave a comment FICA, Trust Fund Recovery Penalty

How aggressive is the IRS in enforcing and collecting Trust Fund Recovery Penalties? A case from the U.S. Tax Court case illustrates the aggressive nature of the IRS when using the trust fund recovery penalty (TFRP) to collect trust fund taxes. Business enterprises must be careful to ensure that they do not incur Trust Fund Recovery Penalties for any failure to remit federal payroll and trust fund taxes when due.

This is a preview of Fitzpatrick V. Commissioner & The Trust Fund Penalty – The Aggressive IRS Loses A Big Case. Read the full post (531 words, 1 image, estimated 2:07 mins reading time)

Most Confusing Parts Of The Income Tax Code, Part 4: Education Tax Incentives

Leave a comment American Opportunity Tax Credit, Education Tax Credit, Expenses Deductions, Lifetime Learning Credit, Lifetime Learning Tax Credit, Student Loans

Many provisions of the Internal Revenue Code are complicated. Proper interpretation of the rules and regulations contained in these provisions requires the assistance of an experienced and knowledgeable tax professional. The fourth part of our series about the most confusing provisions of the Internal Revenue Code addresses education tax incentives.

Why Is It Confusing?

  • There are a large list of incentives from which to choose
  • New stricter requirements to establish eligibility for some incentives
  • Determining eligibility is a complicated, arduous, lengthy process
  • Difficulty in determining the correct and appropriate benefit
This is a preview of Most Confusing Parts Of The Income Tax Code, Part 4: Education Tax Incentives. Read the full post (499 words, 1 image, estimated 2:0 mins reading time)

New IRS Statistics Show A Concentration Of U.S. Income Among Only A Few

Leave a comment Internal Revenue Service, Tax News

The U.S. has a progressive income tax system. Therefore, the rate of tax increases as taxable income increases. The purpose of imposing progressive taxes is to reduce the tax incidence of people with a lower ability to pay taxes, as these taxes shift increasingly to those with a higher ability-to-pay. Thus, the bulk of tax revenue is in high-income households.

Statistics just released by the IRS show that the top 1% of households received more than 20% of adjusted gross income in 2014 while paying almost 40% of income taxes. Less than 4% of income tax is paid by the bottom 50% of households. Federal tax rates in 2015 varied from 10% to 39.6%.

This is a preview of New IRS Statistics Show A Concentration Of U.S. Income Among Only A Few. Read the full post (327 words, 1 image, estimated 1:18 mins reading time)

President Trump’s 2005 Tax Returns – What It Tells Us

Leave a comment Alternative Minimum Tax (AMT), Audit, Bankruptcy, Business Expense, Business Expenses, Capital Gains, Capital Losses, Charitable Contributions, Deductions, Donald J. Trump, Form 1040, Gains & Losses, Income, Income Tax, Income Tax Return, Internal Revenue Code, News, Profits & Losses, Tax News

President Trump’s 2005 Tax Return – What It Tells Us

Yesterday, Tuesday March 14, 2017, while most of the New England area was buried in snow, MSNBC published President Trump’s 2005 income tax return – or at least the first two pages of it.  What does the return tell us and what does it not?

The Basics – We know he had a positive income in the amount of $152,737,866 and $103,201,242 in tax write-offs.  He paid a total of $38,435,451 in taxes for the year.

This is a preview of President Trump’s 2005 Tax Returns – What It Tells Us. Read the full post (589 words, 1 image, estimated 2:21 mins reading time)

About Trump’s Tax Plan

2 Comments Child and Dependent Care Credit, Child Tax Credit, Corporate Tax, Donald J. Trump, Income, Income Tax, News, Profits & Losses, Tax Credit

It remains to be seen the specific tax plan that Donald Trump will implement as President of the United States. The effects of Donald Trump’s tax plan will depend on taxpayers’ income and tax planning. Some think that Trump’s plan will significantly reduce income and corporate taxes, and eliminate the estate tax. It seems the plan’s largest effect on individual taxpayers will be to reduce the top tax bracket 6.6 percentage points from 39.6 percent to 33 percent.

This is a preview of About Trump’s Tax Plan. Read the full post (518 words, 1 image, estimated 2:04 mins reading time)

Most Confusing Parts Of The Income Tax Code, Part 3: Retirement Accounts

Leave a comment IRA, Retirement Accounts

Many provisions of the Internal Revenue Code are complicated. Proper interpretation of the rules and regulations contained in these provisions requires the assistance of an experienced and knowledgeable tax professional. The third part of our series about the most confusing provisions of the Internal Revenue Code addresses retirement accounts.

There are over a dozen different tax-advantaged retirement savings accounts, each with its own set of rules governing contributions, distributions and when money may be withdrawn without incurring any penalties.

Why Is It Confusing?

  • There are a large list of incentives from which to choose
This is a preview of Most Confusing Parts Of The Income Tax Code, Part 3: Retirement Accounts. Read the full post (450 words, 1 image, estimated 1:48 mins reading time)

The Effects Of Trump’s Tax Plan On Individuals And Businesses

Leave a comment Capital Gains, Deductions, Donald J. Trump, Filing Status, Income, Investment-Related Deductions

Donald Trump’s most current tax plan promises to save taxes for most individual taxpayers. One way is the elimination of the alternative minimum tax. What are some other ways? Trump’s tax plan:

  • Adapts the current rates for qualified capital gains and dividends to the new brackets.
  • Eliminates the head of household filing status.
  • Eliminates the Net Investment Income Tax.
  • Increases the standard deduction from $6,300 to $15,000 for singles and from $12,600 to $30,000 for married couples filing jointly.
This is a preview of The Effects Of Trump’s Tax Plan On Individuals And Businesses. Read the full post (498 words, 1 image, estimated 2:0 mins reading time)
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