income

Start Your Year-End Tax Saving Moves Now – Here’s How Part 1

It’s already fall and before you know it, another year will be upon us. It’s never too early to plan ahead to minimize your tax bill. An experienced and knowledgeable tax professional can help any individual or business make the right year-end savings moves with important advice and assistance. Here is the first part of a two part series on some things to ponder when considering potential tax moves between now and the end of 2016:

  1. Make time to plan

How Long Does A Status Of “Currently Not Collectible” Last?

“Currently Not Collectible” (“CNC”) status exists when the IRS categorizes a taxpayer’s account as uncollectible. This status may occur when the ten-year statute of limitations for collecting a tax debt expires or the IRS is unable to locate a taxpayer. It may also occur if a taxpayer maintains that he or she cannot make monthly payments to repay tax debt because such payment is an economic hardship.

Misconceptions And Truths About W-2s, 1099s, and 1095s

There are many misconceptions about IRS tax forms, especially W-2s, 1099s, and of course the new 1095 forms introduced by the Affordable Care Act. This blog will attempt to clarify the misconceptions and truths about these forms but first, some background information.

The IRS requires employers to report wage and salary information for employees on Form W-2, which also reports the amount of federal, state and other taxes withheld from an employee’s paycheck. Another well-known IRS form used to report income is the 1099-MISC (Miscellaneous Income), which reports payments made in the course of business to individuals that are independent contractors, as well as similar payments to sole proprietorships.

Part 1 – What If: Job Related Life Events And Struggling Taxpayers

If you have any type of financial difficulty, keep in mind that there’s a tax impact to events such as job loss or foreclosure. Such consequences may not necessarily be predominantly negative. For example, if your income decreased, you may be newly eligible for the Earned Income Tax Credit or other tax credits, which is a good thing.

Of the utmost importance when facing some financial obstacle is to contact the IRS immediately if you believe that you may have trouble paying your tax bill. Please see our blog You Can’t Pay Your Tax Bill in Full  You Have Options…An experienced and knowledgeable tax attorney may help ease any financial burden. Remember that to avoid additional penalties, you also should always file a tax return even if you are unable to pay.

Gifts and Inheritances Under the Tax Code (26 U.S.C. §102)

Section 61 of the Tax Code states that “except as otherwise provided in this subtitle gross income means all income from whatever source derived”. Thus, the federal tax law requires taxpayers to pay income taxes on earnings, commissions, rents, royalties, retirement benefits, investment profits, tips, fringe benefits, bonuses and almost anything else of value, unless the Internal Revenue Code specifically provides an exception to the general rule contained in §61. An exception to the general rule is §102 of the Internal Revenue Code.

Top Tax Cases Of 2015: Bhutta v. IRS – Treaties And How They Affect Income Of Foreign Nationals

Top Tax Cases Of 2015: Bhutta v. IRS - Treaties And How They Affect Income Of Foreign Nationals

Legal System.

Issue

How can treaties between the United States and other countries affect the income of foreign nationals in the United States?

Facts

Bhutta, a citizen of Pakistan and a foreign medical school graduate, entered the United States in 2009 to participate in an internal medicine residency training program. During the three-year residency training program, for which he received an annual salary, Bhutta treated patients, with supervision; conducted and presented research; and supervised and trained third- and fourth-year medical students. His supervising and training of medical students consisted of having the medical students observe him during “rounds”, preparing the students for monthly examinations, and evaluating the students monthly.

REPORTING GAMBLING LOSSES AND INCOME

Americans love to gamble. Humans love to gamble for that matter. Whether you bet on football, play poker or bet on the horses, your winnings are taxable and you must report them on your tax return. The rules apply even to casual gamblers. Gambling income includes winnings from lotteries, raffles, horse races and casinos. It also includes cash and the fair market value of prizes you receive, such as cars and trips.

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