Archive: tax return

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Giving the Gift of Virtual Currency

With virtual currency (VC) gaining in popularity, charitable organizations have begun accepting VC donations. Large charities such as the United Way and UNICEF were among the first to accept VC donations. While charitable intent starts with the altruistic desire to help a particular cause, the tax benefit that a charitable contribution deduction gives the donor […]
February 4, 2020

Refundable Tax Credit For D.C. Retail Businesses

Businesses in the District of Columbia should not overlook the Small Retailer Property Tax Relief Credit. The term “small retailer” implies a narrow scope of eligible businesses, but the credit applies to more business activities than the program’s name suggests. Plus, the credit is easy to claim and refundable.  For tax years beginning on or […]
February 4, 2020

IRS Releases Draft Simplified Tax Return for Seniors

The Internal Revenue Service (IRS) has released a draft of a simplified form for taxpayers age 65 and over, 2019 Form 1040-SR. The new form is similar to Form 1040-EZ, which was eliminated by the Tax Cuts and Jobs Act (TCJA); however, the proposed draft is free of the limitations that previously restricted the use […]
August 21, 2019

IRS Announces Error in Instructions in Capital Gains Tax Calculation for Forms 1040 and 1041

The Internal Revenue Service (IRS) recently announced that the instructions for calculating tax on capital gains for 2018 Forms 1040 and 1041 contained an error. The IRS explained that the tax calculation in the prior instructions did not work correctly with the Tax Cuts and Jobs Act’s (TCJA) regular tax rates and brackets. According to […]
June 10, 2019

The Accuracy-Related Penalty: New Disclosure Requirements

The Internal Revenue Service (IRS) has issued Revenue Procedure 2019-9, which outlines disclosure requirements to reduce or avoid accuracy-related penalty. This procedure applies to all tax returns prepared on 2018 forms. The accuracy-related penalty under Internal Revenue Code (IRC) 6662 is imposed if there is a substantial understatement of tax, defined for corporations as a […]
March 22, 2019

Should your Medical Practice be a “C” Corporation?

The 2017 Tax Cuts and Jobs Act created the Internal Revenue Code (IRC) 199A, which provides for a maximum of 20% deduction of business profits for sole practitioners and pass-through entities and drops the corporate income tax rate to a flat 21%—a dramatic decrease from 35% previously. For specified service trade or businesses, which includes […]
March 13, 2019

Late Tax Return Filing May Mean Reduced Social Security Benefits

Late filing your tax returns? Here’s another reason to quickly get into compliance: You may be missing out on future social security benefits. Social security calculates retirement benefits based on earnings reported. While the Social Security Administration (SSA) directly gets earnings information from form W-2 (wages), it does not directly receive earnings from self-employment activities, […]
March 5, 2019

IRS Enhances Security, Puts Hurdles in Place to Tax Transcript Access

In an effort to bolster protections to taxpayer data, the Internal Revenue Service (IRS) recently made two changes to its tax transcript system: redacting personal identifiable information from the transcripts and limiting access to the transcripts themselves. While these changes will enhance information security, they will hinder the ability of tax professionals to receive on-the-spot […]
February 18, 2019

White House Vows to Issue Tax Refunds During Shutdown

On Monday, January 7, the White House has vowed that the Internal Revenue Service (IRS) will issue tax refunds, despite the ongoing partial shutdown of the federal government. The shutdown is a major source of apprehension for taxpayers and accountants, who are entering the busiest time of the year with tax filing season looming. Only […]
January 10, 2019

When is a Tax Return not a Tax Return?

In bankruptcy cases that involve discharge of tax liabilities, one of the criteria for consideration is a filed tax return. Various appeals courts have held that a late return is not a return for discharge purposes unless it is filed pursuant to IRC 6020(a). This section provides that if a taxpayer fails to file a […]
May 18, 2016