Business tax transcripts (summaries of tax returns) are a handy tool for taxpayers, their tax professionals and lenders. But they’re also a treasure chest of information for identity thieves. To help protect taxpayer security, the IRS has announced that as of Dec. 13, sensitive data on business tax transcripts will be “masked.” The new tax … Read More
Many people have Series EE savings bonds that were purchased many years ago. Perhaps they were given to your children as gifts or maybe you bought them yourself and put them away in a file cabinet or safe deposit box. You may wonder: How is the interest you earn on EE bonds taxed? And if … Read More
Can you help your tax situation if you donate to charity by Dec. 31? Whether you’re supporting natural disaster recovery, COVID 19 crisis aid or any “qualified” charity, your donations may be tax-deductible, which can reduce your taxable income. Previously, charitable contributions could only be deducted if taxpayers itemized deductions. But, under the CARES Act, … Read More
The executor’s role is critical to the administration of your estate and the achievement of your estate planning objectives. So your first instinct may be to name a trusted family member as executor. But that might not be the best choice. Duties of an executor Your executor will have a variety of important duties, including: … Read More
A review of the IRS Cybersecurity Program gets mixed results. The Treasury Inspector General for Tax Administration (TIGTA) recently evaluated this program against the 2014 Federal Information Security Modernization Act (FISMA). Of five IRS functions tested, two (risk identification and detection of cybersecurity events) were deemed ineffective. One notable weakness was the need to “improve … Read More
The IRS will issue SALT deduction regs for pass-through entities. The regs will clarify that specified income tax payments are deductible by entities such as partnerships and S corporations in computing their nonseparately stated income or loss. Specified income tax payments include amounts paid by pass-through entities to a state, political subdivision of a state … Read More
If you’re an art collector, it’s critical for your estate plan to address your collection separately from other types of assets. Investments in artwork may be motivated in part by potential financial gain, but for most collectors the primary motivation is a passion for the art itself. As a result, managing these assets involves issues … Read More
Many college students may qualify for Economic Impact Payments (EIPs), if they haven’t received them yet. The IRS is urging eligible self-supporting college students who don’t need to file a tax return to register by Nov. 21 so they can receive a payment by year end. According to the IRS, students with little or no … Read More
Online retail sales have been booming during the COVID-19 pandemic. This trend has been driven not only by the buying public’s increased inclination to minimize visits to brick-and-mortar stores, but also by the effectiveness of many retailers’ virtual marketing efforts. One such effort that can benefit most any type of business is email marketing. Although … Read More
Generally, a taxpayer can deduct costs incurred in the course of operating a business if the costs can be proven. This includes costs for “listed property” (property used for transportation, entertainment or recreation). To prove business use of listed property, taxpayers must keep adequate records of total use and business use, plus dates and the … Read More