Archive: IRS filing

  • Clear Filters

Proposed Earned Income Tax Credit Expansion for Individuals

President Barack Obama proposed an expansion of the Earned Income Tax Credit (EITC) in his budget last week. The amendment would double the maximum credit for taxpayers with no qualifying children, raise the qualifying income amount, and lower the eligible age from 25 to 21 years old. The recommendation targets low-income students and encourages more […]
March 17, 2014
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  • Aronson

EFT Payment Requirement Threshold Reduced to $5,000

The District of Columbia requires business taxpayers to make tax payments over a certain threshold by electronic funds transfer (“EFT”).  The most recent guidance issued by the D.C. Office of Tax and Revenue regarding EFT payments says that business taxpayers must pay EFT for all tax payments exceeding $10,000.  However, over the last couple of […]

Substantiation of Charitable Contributions

The documentation requirements taxpayers must maintain in order to take a charitable contribution deduction on their tax return have been in place for almost 20 years. They are worth repeating however, as two recent tax court cases have upheld the necessity of following these rules and denied contribution deductions to taxpayers who did not have the necessary documentation. […]

File Under: Don’t Do This

The Disabled Veterans National Foundation (DVNF) is currently being investigated by the Senate Finance Committee based on allegations of improper spending and charges that not much of the funding raised actually went to veteran aid. The investigation began after reports by Charity Watch and CNN that the charity received almost $56mil in donations from 2008 […]

Lack of Proper Appraisal Results in $18.5mil Charitable Deduction Denied

The Tax Court recently denied a taxpayer’s large charitable contribution deduction for donated real estate valued at $18.5 Million.  The Court denied the deduction because the taxpayer did not have the proper substantiation of the value under the tax code rules. The Court acknowledged the taxpayer did make the donation and also stated that the […]

Be Aware: FBAR Filing Date Moved Up!

The Form TD F 90-22.1 is commonly referred to as the foreign bank account report or “FBAR.” The FBAR is usually due on June 30th following the calendar year end. This year June 30th is on a Saturday so the FBAR for the calendar year 2011 is required to be received by the U.S. Treasury […]

Work Opportunity Tax Credit for Tax-Exempt Nonprofits

Recent changes to the Work Opportunity Tax Credit (WOTC) have made incentives for hiring eligible veterans available to tax-exempt nonprofit organizations. Under the VOW To Hire Heroes Act of 2011, the WOTC was expanded to include credits for nonprofit organizations that can be claimed against the employer portion of social security tax on wages paid […]

Social Security Numbers on Form 990 = Identity Theft Risk

A recent study published by Identity Finder, a security and privacy software company, revealed that nearly half a million social security numbers were included in public filings of Form 990. The study reports that between 2001 and 2006, 18% of all non-profit organizations included at least one social security number on their Form 990. Since […]

Are Churches required to obtain a tax determination letter?

An organization seeking exemption under section 501(c)(3) of the Code is required to apply for recognition of exemption on Form 1023. However, churches, their integrated auxiliaries, and conventions or associations of churches seeking section 501(c)(3) status are exempted from this application requirement. Churches that meet the requirements of section 501(c)(3) are automatically considered tax exempt […]

Guidance on Reporting Health Plan Coverage on Form W-2

The IRS has posted a table that helps determine what employer-sponsored group health plan coverage should be included on form W-2 for years 2012 and beyond. Determining whether or not to include some of the particulars and quirks of different medical plans as a component of wages can be tricky. This should help. Coverage Type […]