IRS added support for the popular tax shelter strategy known as “back door IRA” this week. The explanation is contained in this Forbes article. https://www.forbes.com/sites/jeffreylevine/2018/07/13/irs-unlocks-the-door-for-high-income-savers/amp/
In New Jersey nonprofit organizations must now file their annual reports online. The new online system is not working currently, according to a report today by a member of the NJCPA. A number of problematic issues were discussed at the Nonprofit Interest Group Meeting of the New Jersey Society of Certified Public Accountants today.
I am happy to discuss how some local nonprofit organizations use their annual IRS information filing in conjunction with strategic marketing plans to grow their support.
There are three ways that taxpayers most often get into trouble with the tax authorities. Recognizing these three tax traps can help us avoid them. Under-reported income. This is usually the most obvious omission and usually easiest for tax authorities to spot and assess additional taxes. Sometime the taxpayer’s omission is deliberate and sometimes it […]
The new federal income tax law called the “Tax Cuts and Jobs Act”, effective for 2018, has caused the wage tax withholding for most W-2 income employees to be inaccurate. The IRS and tax advisers encourage everyone who receives wages to recalculate the withholding amount, complete a new W-4, and use this to new W-4 […]
An introduction to the topic of tax planning in 6 easy points: Saving taxes doesn’t just happen by accident. It takes deliberate long-term financial planning with a goal, action plan and accountability. Everyone has the ability to legally reduce their taxes. The higher your taxes, the greater the potential to save money. Tax planning is […]
Dylan Thomas seems to have found new footing lately in mass media. This is his most famous poem “Do not go gentle into that good night” that is featured on a new TV commercial. The poem was written around 1949 in Italy. He would have been around age 36 when he wrote the poem and had […]
The Tax Cuts and Jobs Act requires paid tax preparers to take additional steps to verify claims of Head of Household status. The new due diligence requirements are intended restrict an ineligible taxpayer from filing as a head of household. Under IRC §6695(g) a tax preparer who fails to meet these requirements results in a […]
This summary is an excerpt from “Understanding the Tax Cuts and Jobs Act”by Samuel A. Donaldson, Georgia State University College of Law, January 3, 2018. Individual Ordinary Income Tax Brackets Originally, Republican leadership sought to reduce both the number of individual income tax brackets and the tax rates. Under prior law, seven tax brackets ranging from 10% to […]