Tax Tip for College Grads – Maximize Paychecks with Part-Year Withholding The standard federal tax withholding tables are based on the assumption that individuals will earn a full year’s income, potentially leading to higher tax withholding amounts. However, for college grads beginning employment mid-year, this assumption may not accurately reflect their Read more…
Nine factors commonly used to gauge whether it’s a business or a hobby Businesses engaged in activities for-profit can deduct costs as incurred whereas activities considered “hobbies” are subject to limitations on deductibility. By strategically addressing these following factors (and possibly others), you can strengthen your position to account for Read more…
Year-End Planning – Arizona Pass-through Entity State Tax Election Tax year 2022 will be the first year eligible partnerships and S corporations will be able to elect into an Arizona pass-through entity level tax at a rate comparable to that of individual residents of Arizona. The entity level tax is Read more…
IRS Announces Nationwide Availability of Voluntary IP PIN Program An IP PIN (Identity Protection Personal Identification Number) is a six-digit number assigned by the IRS to taxpayers to help prevent the fraudulent use of their Social Security number on falsified federal income tax returns. Originally, the IRS only issued IP Read more…
Consolidated Appropriations Act, 2021 Clarifies Non-taxable and Deductible Tax Treatment for PPP Loan Forgiveness The recent legislation has clarified what many businesses have been waiting for: taxpayer-friendly clarification of the tax effects of PPP loan forgiveness. Section 276 of the Consolidated Appropriations Act (“Act”) states that no amount from PPP Read more…
Failure to Meet IRS Reporting Requirement for Cash Payments over $10,000 Received can Result in Stiff Penalties Taxpayers engaged in a trade or business that receive more than $10,000 of cash payments from a single payer in one transaction or in two or more related transactions (all transactions within a Read more…
Penalty Exception for IRA Distributions for Birth or Adoption Costs Starting in 2020, taxpayers who are having a baby or adopting can take a distribution from an IRA or 401(k) of up to $5,000 per individual ($10,000 for married couples), without having to pay the 10% early distribution penalty for Read more…
IRS Cryptocurrency Crackdown Beginning with the 2019 filings, taxpayers are now obligated to report on their income tax returns whether they engaged in transactions involving virtual currencies, such as buying, selling, sending, exchanging, or acquiring any financial interest in cryptocurrency. This requirement applies to all forms of virtual currency, Read more…
Taxpayers Should be Aware of New Property Lien Scams Taxpayers are at risk to an increasing number of tax-related scams; fake property lien scams threatening taxpayers with a tax bill from a fictional government agency is just one of them. Here are some tips on how to recognize the more Read more…