Tag Archive for Tax Blog

Tax Time Guide: Contribute To An Individual Retirement Arrangement (IRA) By April 17, Claim It For 2017

WASHINGTON —The Internal Revenue Service reminded taxpayers today that it’s not too late to contribute to an Individual Retirement Arrangement (IRA) and still claim it on a 2017 tax return. Anyone with an IRA may be eligible for a tax credit or deduction on their 2017 tax return if they make contributions by April 17, 2018.

This is the sixth in a series of nine IRS news releases called the Tax Time Guide, designed to help taxpayers navigate common tax issues. This year’s tax-filing deadline is April 17. Read More

Written by | Posted in IRA • IRS • Tax Return

Mileage Reimbursement Mistakes Businesses Make

You know that a proper mileage reimbursement program can save your business time, money and boost compliance. Yet, we’ve seen many companies make mistakes with their programs. Here are some of the major mistakes your business should avoid.

Not Having A Clear Process

Nearly half of businesses with mobile employees don’t have a clear process or policy for mileage reimbursement. Some companies require a mileage log, while some really want one but still pay out reimbursements anyways because they don’t want to upset workers. Read More

Written by | Posted in Mileage • MILEIQ

Taxpayer Rights: Taxpayer Bill Of Rights

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. Explore your rights and obligations to protect them.

1. The Right To Be Informed

Taxpayers have the right to know what they need to do to comply with the tax laws. They are entitled to clear explanations of the laws and IRS procedures in all tax forms, instructions, publications, notices and correspondence. They have the right to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes. Read More

Written by | Posted in IRS • Taxpayer Rights

How To Deal With 1099-MISC Problems

One of the great things about being self-employed is that no income tax is withheld from your compensation. But you still have to pay taxes on that income and sometimes, your 1099 tax forms will have mistakes. Here’s how to deal with 1099-Misc problems.

Why is a 1099-MISC is Necessary?

The IRS will often still have some idea of how much money you’ve made. Your clients must complete IRS Form 1099 if they’ve paid you more than $600 over the course of the year. Read More

Written by | Posted in Form 1099 • IRS

How Does The Foreign Earned Income Exclusion Work?

Living and working abroad comes with many exciting benefits. In addition to exploring new lands and learning about new cultures, expats often earn additional income beyond just their regular salary. Foreign earned income can come in many forms. In addition to the wages that are earned, those who are working outside the United States also must declare as income bonuses, tips, commissions, and the like.
It is also common for expats working overseas to have non-cash income as part of their employment package.

Read More

Written by | Posted in Foreign Earned Income • Foreign Earned Income Exclusion • TaxConnections

The Party Is Ending For The IRS Offshore Voluntary Disclosure Program

On March 13, 2018. the Internal Revenue Service announced that it is ending the Offshore Voluntary Disclosure Program on September 28, 2018. The IRS has made the announcement to allow time for taxpayers who have undisclosed foreign financial accounts and assets to enter into the program and make a OVDP voluntary disclosure before the program ends.
OVDP Program

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Written by | Posted in IRS • Offshore • OVDP

How Long Should You Keep Business Records For Tax Purposes?

If you own a small business, you need to keep business records. These can include digital or hard copies. They may contain financial information and licenses. Business record retention is necessary for your annual tax filings. It’s also necessary for potential audits.

What Are Business Records?

You know saving business documents is important. Now, you need to figure out what documents to save. The term “business documents” can refer to many things, including: Read More

Written by | Posted in Business • Tax Filing • Tax Forms • Tax Return • TaxConnections

Navigating The Shoals Of IRS Penalties

For those of us inclined to the proverbial ‘head-bury’ strategy with Big Brother, it is best to understand the civil penalties assessed when IRS systems catch up – as measured in tangible $$ out the pocket. For the brave of heart, navigating the shoals of IRS Penalties can be intimidating to comprehend but it is far from rocket science.

Understanding IRS civil penalties starts with picking up Part 20.1 of the Internal Revenue Manual (IRM).  Here you will find guidance on all areas of civil penalties imposed by the Internal Revenue Code (IRC).

Criminal penalty provisions are contained in IRM 9.1.3 and beyond the scope of this post. Read More

Written by | Posted in IRS

Analysis Of Tax Settlement Programs As Amnesties (Part 1 of 3)

On March 13, 2018, the IRS announced that on September 28, 2018, it would end the offshore voluntary disclosure program (OVDP), as it had only attracted 600 applicants in 2017. So now is a good time to take a step back to review the program in the broader context of the research on tax amnesties.

Settlement programs and other voluntary disclosure or correction programs generally offer some form of amnesty. Offering broad tax amnesties on a regular basis, as many states do, can erode voluntary compliance. Read More

Written by | Posted in IRS • Offshore • OVDP • Tax Amnesty

Tax Consequences For Corporate Entry Into Canada

A company is considered to have immigrated to Canada if the corporation’s central management and control has moved to Canada, regardless if initially incorporated in Canada or not. Therefore, when a business owner moves to Canada, so does the business.

When the company enters Canada, the company is deemed to have disposed of and reacquired all of the company’s assets and liabilities at their fair market value (FMV) right before coming to Canada. As the assets and liabilities of the company are being re-valued at the FMV, this is considered to be the company’s valuation date. Read More

Written by | Posted in Canada • International

Mortgage Insurance Premiums For Taxpayers

Mortgage insurance in the simplest of terms is the backup plan for a lender. In the unfortunate event that the borrower is unable to repay the loan, the lender can cash in the mortgage premium and recover the losses. However, there is more to it than what meets the eye. Here are some more details of this rather intriguing insurance and why you should opt for it.

What Is It?

Statistics reveal that most home buyers pay less than 20% of the entire property cost as up front or commonly known as down payment. Read More

Written by | Posted in Adjusted Gross Income • Insurance • Mortgages • TaxConnections
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