Harless Tax Blog

Harless Tax Blog

e-News for Small Business

Wednesday, November 28, 2018

Source from irs.gov | e-News for Small Business, Issue 37.
1)  Here’s how tax reform changed accounting methods for small businesses
The Tax Cuts and Jobs Act — better known simply as tax reform — allows more small business taxpayers to use the cash method of accounting. The new law defines a small business taxpayer as a taxpayer who has average annual gross receipts of $25 million or less for the three prior tax years and is not a tax shelter.  See More

Get 2018 tax documents ready

Monday, November 26, 2018

Source from irs.gov
WASHINGTON — The IRS reminds taxpayers to keep a copy of their past tax returns and supporting documents for at least three years. Certain key information from their prior year return may be required to file in 2019.

This is the fifth in a series of reminders to help taxpayers Get Ready for the upcoming tax filing season. The IRS has recently updated its Get Ready page with steps to take now for the 2019 tax filing season.  See More

IRS warns of “Tax Transcript” email scam

Tuesday, November 20, 2018

Source from irs.gov
WASHINGTON — The Internal Revenue Service and Security Summit partners today warned the public of a surge of fraudulent emails impersonating the IRS and using tax transcripts as bait to entice users to open documents containing malware.

The scam is especially problematic for businesses whose employees might open the malware because this malware can spread throughout the network and potentially take months to successfully remove.  See More

Tips for taxpayers who need to reconstruct records after disaster strikes

Wednesday, October 24, 2018

Source from irs.gov
Tips for taxpayers who need to reconstruct records after disaster strikes

After a disaster, taxpayers might need to reconstruct records. This could help them prove their losses, which may be essential for tax purposes, getting federal assistance or insurance reimbursement. See More

Several tax law changes may affect bottom line of many business owners

Friday, October 19, 2018

Source from irs.gov
WASHINGTON — The Internal Revenue Service today reminded business owners that tax reform legislation passed last December affects nearly every business.

With just a few months left in the year, the IRS is highlighting important information for small businesses and self-employed individuals to help them understand and meet their tax obligations. See More

IRS issues guidance on Tax Cuts and Jobs Act changes on business expense

Wednesday, October 10, 2018

Source from irs.gov
WASHINGTON — The Internal Revenue Service issued guidance today on the business expense deduction for meals and entertainment following law changes in the Tax Cuts and Jobs Act (TCJA).

The 2017 TCJA eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation.

Taxpayers may continue to deduct 50 percent of the cost of business meals if the taxpayer (or an employee of the taxpayer) is present and the food or beverages are not considered lavish or extravagant. The meals may be provided to a current or potential business customer, client, consultant or similar business contact.  See More

Why Americans Are Retiring Later

Thursday, October 04, 2018

Source from fa-mag.com
Something significant is happening in Social Security: People are retiring and taking their benefits later. These trends are at least in part the consequence of policy changes made in the early 1980s that were purposefully delayed in their implementation.

Consider this: In 1997, 57 percent of men claiming their retirement benefits under Social Security were 62, the earliest age at which one can do so. By 2017, that share had dropped to 34 percent because more people elected to put off claiming their benefits. As a result, the average age of a new male beneficiary has risen by a full year. (These data exclude disabled workers. There are other ways of doing the calculations, but they all show the same phenomenon.)  See More

Here are facts to help taxpayers understand the different filing statuses

Tuesday, October 02, 2018

Source from irs.gov
Taxpayers don’t typically think about their filing status until they file their taxes. However, a taxpayer’s status could change during the year, so it’s always a good time for a taxpayer to learn about the different filing statuses and which one they should use.

It’s important a taxpayer uses the right filing status because it can affect the amount of tax they owe for the year. It may even determine if they must file a tax return at all. Taxpayers should keep in mind that their marital status on Dec. 31 is their status for the whole year.

Sometimes more than one filing status may apply to taxpayers. When that happens, taxpayers should choose the one that allows them to pay the least amount of tax.  See More

IRS alerts taxpayers: Scammers scheming around Oct. 15 deadline

Thursday, September 27, 2018

Source from irs.gov
WASHINGTON — The Internal Revenue Service is reminding taxpayers to beware of criminals who continue using devious tactics to steal money and personal information from unsuspecting victims, especially as the fall season approaches.

The agency warns that scammers continue to pose as the IRS, making threatening phone calls and using email phishing schemes to lure taxpayers. The scams may be particularly prevalent ahead of the Oct. 15 tax-filing extension deadline. Another tax scam, where criminals pose as charity organizations, tends to peak during hurricane season or following a natural disaster. Taxpayers should learn about these ongoing tax scams and know what to do if they’re targeted.

The IRS urges taxpayers to look out for suspicious calls, emails and donation requests and take appropriate action if they experience any of the following:  See More

IRS wants taxpayers to know they have rights when interacting with the agency

Friday, September 21, 2018

Source from irs.gov
Taxpayers interact with the IRS for many reasons. In all these interactions with the IRS, even if taxpayers are simply asking an IRS representative questions about taxes or responding to an IRS letter, taxpayers have fundamental rights. These are outlined in the Taxpayer Bill of Rights.

Aside from making sure taxpayers are aware of these rights, the IRS educates its workforce about them. The IRS has an expectation that all employees will apply these rights to every encounter with taxpayers.  See More