The IRS has issued a new notice listing the “high-low” simplified per-diem rates for post-Sept. 30, 2019 travel. The high-cost area per-diem increases $10, and the low-cost area per-diem increases $5, from the prior simplified per-diems. In addition, the following have been added to the list of high-cost localities: Mill Valley / San Rafael / … Read More
You can reduce taxes and save for retirement by contributing to a tax-advantaged retirement plan. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a taxwise way to build a nest egg. If you’re not already contributing the maximum allowed, consider increasing your contribution rate between now and year end. … Read More
Once a tax return is properly filed, the IRS generally has three years to assess additional taxes. If no return is filed, no limit applies. One taxpayer faxed his 2001 partnership tax return to an IRS revenue agent, in July 2002. In 2010, when the IRS added tax on the return, the taxpayer argued that … Read More
If you’re starting to fret about your 2019 tax bill, there’s good news — you may still have time to reduce your liability. Three strategies are available that may help you cut your taxes before year-end, including: 1. Accelerate deductions/defer income. Certain tax deductions are claimed for the year of payment, such as the mortgage … Read More
Billions of dollars in nonfiler employment taxes went unassessed in the IRS’s automated 6020(b) program due mainly to resource limitations. That’s the conclusion of a newly released audit by the U.S. Treasury Inspector General for Tax Administration. When a taxpayer has a filing requirement and fails to file a tax return, the IRS is authorized … Read More
With Thanksgiving behind us, the holiday season is in full swing. At this time of year, your business may want to show its gratitude to employees and customers by giving them gifts or hosting holiday parties. It’s a good idea to understand the tax rules associated with these expenses. Are they tax deductible by your … Read More
Court ruling: The IRS can collect interest on taxes paid as part of a bankruptcy plan. If an employer fails to properly pay over payroll taxes, the IRS can collect a “trust fund recovery penalty” equal to 100% of the unpaid taxes. In one case, a taxpayer who owed personal income taxes filed for Chapter … Read More
401(k) plans may provide that an employee can receive a distribution of elective contributions from the plan on account of hardship. The IRS has issued final regulations that amend the related rules. Plans that complied with the proposed regs issued in Nov. 2018 will satisfy the final regs. Among other things, the final regs modify … Read More
The IRS sends notices or letters to taxpayers for a variety of reasons. According to the agency, it sends out these communiques because the taxpayer has a balance due or is due a larger or smaller refund, or the agency has a question about a tax return. The IRS also may send a notice or … Read More
For families with substantial closely held business interests, an election to defer estate taxes under Internal Revenue Code Section 6166 can help them avoid having to sell business assets to pay estate taxes. It allows an estate to pay interest only (at modest rates) for four years and then to stretch out estate tax payments … Read More