The Internal Revenue Service announced on December 1, 2016 (IR-2016-155) the launch of an online application that will assist taxpayers with straightforward balance inquiries in a safe, easy and convenient way.
This new and secure tool, available on IRS.gov allows taxpayers to view their IRS account balance, which will include the amount they owe for tax, penalties and interest.
It also should be pointed out that taxpayers may also continue to take advantage of the Continue reading
IMPORTANT TAX ALERT:
New Jersey Governor Chris Christie on Tuesday, November 22, 2016, reinstated a four-decade old tax reciprocity agreement with Pennsylvania that allows residents who work in either state to pay income taxes at their home state’s rate. You can almost hear the collective sigh of relief of the many commuters that would have been adversely impacted by this new law. Continue reading
The Famous and Quirky 45 Foot Steel Clothes Pin Created by Sculptor Claes Oldenburg Across from City Hall
The City of Philadelphia has reduced the City Wage Tax rate effective July 1, 2016.
- The new Wage Tax rate for residents of Philadelphia is 3.9004% (.039004).
- The new Wage Tax rate for non-residents of Philadelphia who are subject to the Philadelphia City Wage Tax is 3.4741% (.034741).
What does this mean to you?
Any paycheck that you issue with a pay date after June 30, 2016 must have Philadelphia City Wage Tax withheld at the new rate.
Each year, the IRS mails millions of notices and letters to taxpayers for a variety of reasons. This can be extremely upsetting when receiving this form of communication, whether it is from the IRS or any other taxing authority. The following tips are presented to reduce your anxiety and to provide a specific action plan for any correspondence received from the IRS (or from your state or local taxing authority):
- Don’t Panic: You can usually deal with a notice simply by responding to it. You should immediately contact your tax attorney, CPA or tax adviser to discuss this matter in more detail.
- Tip: Waiting can only compound and complicate your tax problems.
- Most IRS notices are about federal tax returns or tax accounts: Each notice has specific instructions, so read your notice carefully because it will tell you what you need to do. Follow the instructions very carefully. The goal here is to give a specific and detailed response to the tax issue in question.
- Tip: Only respond to the particular issue and do not provide or discuss issues that are not being raised by the IRS.
- Taxes You Owe or Payment Request: Your notice will likely be about changes to your account, taxes you owe or a payment request. However, your notice may ask you for more information about a specific issue.
- Tip: Do not assume that the taxes owed are correct. In many cases, the IRS calculates taxes without all the relevant facts.
The Internal Revenue Service on December 18, 2015 issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
• 54 cents per mile for business miles driven, down from 57.5 cents for 2015
• 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015 Continue reading
Here is a neat info-graphic on the tax positions of the Presidential Candidates. Special thanks to MBACentral.org
On Friday, July 31, 2015, President Barack Obama signed HR 3236, the “Surface Transportation and Veterans Health Care Choice Improvement Act of 2015” (the “Act”). Not sure how this name relates to taxes but in any event the following tax law changes and provisions became law under this Act:
- Changes to the due dates for various returns. The Act sets new due dates for partnership returns, C corporation returns.
- Foreign Bank Account Reporting: New due dates for the important and often overlooked foreign bank account reporting (FBAR) forms, known as FinCEN Form 114, Report of Foreign Bank and Financial Accounts have been implemented.
- Changing the six year statute of limitations to apply to understatements of income that resulted from taxpayers overstating tax basis when calculating sales. This change overturns the Home Concrete case where the Supreme Court ruled that understatements of income as a result of basis miscalculations would not trigger the extended six-year statute of limitations applicable to understatements of income.
- Requiring consistent basis reporting for estates and estate beneficiaries.
- Requiring additional information to be included in mortgage information statements.
- Other Information Returns: The new act imposes new filing requirements for several other IRS information returns.
Posted in Basis, Basis Reporting For Estates and Beneficiaries, C Corporation Tax Returns, Estate Administration, Estate Planning, FBAR, Hidden Bank Accounts, Home Concrete Supreme Court Case, HR 3236, Partnership tax returns, Six Year Statute of Limitations, Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, Taxes
Tagged Basis Reporting, C Corporation Reporting Due Dates, FBAR, FIN Cen Form 114, income tax, information returns, Mortgage Information Returns, Partnership Reporting Due Dates, Statute of Limitations, tax law, Taxes