Tax Tidbits

Posted February 22, 2018 / No comments

The IRS is warning about new ways thieves are stealing from taxpayers. In one scam, criminals pose as debt collection agency officials acting on behalf of the IRS. They contact taxpayers to say refunds were deposited in their accounts in error. They ask the taxpayers to send the money back. In another scam, taxpayers receive

Posted February 21, 2018 / No comments

The Financial Crimes Enforcement Network (FinCEN) has clarified the due date of 2017 Reports of Foreign Bank and Financial Accounts (FBARs). While 2017 FBARs are now due on Apr. 17, filers who miss this deadline are given an automatic extension until Oct. 15, 2018. Certain taxpayers with foreign accounts must file an FBAR, although it’s

Posted February 14, 2018 / No comments

The ink on the Tax Cuts and Jobs Act (TCJA), which swept in a tidal wave of changes to federal tax rules, had been dry for only seven weeks before Congress passed more legislation that could affect many taxpayers. The Bipartisan Budget Act of 2018 (BBA), which President Trump signed into law on February 9,

Posted February 13, 2018 / No comments

The Bipartisan Budget Act of 2018, which contains some tax provisions, was signed into law on Feb. 9. It will fund the government through March 23, averting another government shutdown for now. It also extends for one year a set of tax provisions, known as “extenders,” which expired at the end of 2016. Other tax-related provisions include

Posted February 6, 2018 / No comments

Do you have questions about health coverage tax credits (HCTCs)? The IRS recently posted common questions and answers (Q&As) on its website to inform interested parties about advance payments of HCTCs for 2018. The HCTC is a refundable income tax credit for eligible individuals to help reduce the cost of certain coverage. The credit is

Posted January 24, 2018 / No comments

The government shutdown ends. Late on Jan. 22, President Trump signed a continuing resolution (CR) to fund the federal government until Feb. 8. The measure also contains some tax-related changes. It will delay for 2 years the 2.3% medical device excise tax (It took effect on Jan. 1, 2018); delay for 2 years (until 2022)

Posted January 23, 2018 / No comments

The Tax Cuts and Jobs Act made two changes to business meals and entertainment expenses, effective for amounts incurred or paid after Dec. 31, 2017. The first change disallows deductions for business-related entertainment expenses. (Under prior law, a taxpayer could deduct 50% of such expenses.) In addition, the 50% limit on the deductibility of business

Posted January 19, 2018 / No comments

Effective January 1, 2018, the Tax Cuts and Jobs Act of 2017 (TCJA) reduces individual and corporate tax rates, eliminates a host of deductions and credits, enhances other breaks and makes numerous additional changes. One thing the TCJA doesn’t do is repeal the federal gift and estate tax, as originally contemplated by the House of

Posted January 9, 2018 / No comments

The 2018 tax filing season will begin on Jan. 29, the IRS announced. That’s the date the IRS will begin accepting electronic and paper returns (though many tax professionals and software companies will accept returns earlier). Processing returns will begin in mid-Feb. The earliest that refunds claiming the earned income credit or additional child tax credit

Posted January 4, 2018 / No comments

Taxpayers are required to deduct backup withholding on certain non-wage payments made to those who filed information returns but they had missing or incorrect taxpayer identification numbers. The backup withholding rate is 28% through Dec. 31, 2017. But under the Tax Cuts and Jobs Act, it will be reduced to 24% on Jan. 1, 2018.