Harless Tax Blog
Source from accountantsworld.com
The Internal Revenue Service is continuing to close Taxpayer Assistance Centers around the country, despite recommendations to the contrary from the National Taxpayer Advocate and the Senate Appropriations Committee.
National Taxpayer Advocate Nina Olson wrote a blog post last week pointing out that the IRS has closed nine of its walk-in centers since her report to Congress last December, in which she criticized the closure of such facilities, where taxpayers can talk face-to-face with IRS employees about their tax concerns. In December, she noted, the IRS operated 371 Taxpayer Assistance Centers, but today there are only 362. See More
Now that new tax rules are in place, employers and their advisers are coping with the difficulties faced in implementing the changes, adjusting to a new normal. New tax laws are always a product of give-and-take, with many constituencies fighting to retain favorable rules and congressional staff putting the pieces together so there are enough votes to pass the legislation. The changes brought about by P.L. 115-97, known as the Tax Cuts and Jobs Act (TCJA), are no exception.
The goal of lowering tax rates, primarily for businesses, needed to be tempered by eliminating certain business deductions or individual income tax exclusions so that federal revenues didn't decline too much. The elimination of employer deductions or individual income tax exclusions causes taxpayers to consider behavior adjustments to account for the increased cost of the formerly deductible or excludable expense. Never has this adjustment had to occur so quickly, with the TCJA legislation enacted on Dec. 22, 2017, and many effective dates occurring only 10 days later, on Jan. 1, 2018. See More
Employers. For Social Security, Medicare, withheld income tax, and nonpayroll withholding, deposit the tax for payments in June if the monthly rule applies.
Employers. For Social Security, Medicare, and withheld income tax, file Form 941 for the second quarter of 2018. Deposit any undeposited tax. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the quarter in full and on time, you have until August 10 to file the return. See More
by: Harless and Associates Staff
We have seen an increase in market volatility in early 2018. A steep pullback in stocks could be good news for working people who are building retirement funds, but those approaching or recently beginning retirement might be hurt.
Historically, stock market setbacks have proven to be buying opportunities for patient investors.
Example 1: Harry Walker was 50 years old in 2008, with most of his retirement savings invested in stock funds within his 401(k) account. Then, Harry’s holdings dropped heavily. See More
Source by: Harless and Associates Staff
Individuals. If you are not paying your 2018 income tax through withholding (or will not pay enough tax during the year that way), pay the second installment of your 2018 estimated tax.
If you are a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, file Form 1040 and pay any tax, interest, and penalties due for 2017. If you want additional time to file your return, file Form 4868 to obtain four additional months to file. Then, file Form 1040 by October 15. See More
This spring, don't just stuff your completed tax return into a drawer. Go through it for savings opportunities you can seize right now.
More than 94 million tax returns have been filed as of March 30, still a long way from the more than 155 million returns the IRS expects to receive this year.
If you've already turned in your paperwork and received a refund — or a tax bill — take a moment to comb through your return.
This is especially important because your 2017 return marks the last time you'll be filing under the old tax regime. See More
If you're waiting until the absolute last moment to file your taxes, you're not alone — and you're not out of luck.
As of the last tally, the Internal Revenue Service has received 103 million of the 155 million total returns the agency expects this year. (In fact, 20 to 25 percent of Americans wait until the last 14 days before the deadline to prepare their tax returns.)
But there is still time before Tax Day on April 17 to nail down everything you need — and take advantage of certain tax breaks before it's too late. See More
If you're looking to save big on taxes by packing up your small business and shipping it to a friendlier state, it may be time to hit the brakes.
The new federal tax law grants special breaks for owners of businesses — there's the 20 percent deduction on qualified business income and lower tax rates for C-corporations — and entrepreneurs are searching for additional ways to save on state and local levies as well. See More
Just six weeks after lawmakers and the public got their first glimpse of the first draft of a tax overhaul bill, Republicans on Friday released their final version. They aim to pass it next week and send it to President Trump for his signature.
The final bill still leans heavily toward tax cuts for corporations and business owners. But it also expands or restores some tax benefits for individuals relative to the earlier bills passed by the House and Senate. See More
The Senate tax bill is headed for a marathon debate this week after Republican leaders brought the measure to the floor Wednesday with the goal of holding a final vote by the end of the week. Here are the latest developments, updated throughout the day:
John McCain Says He Will Support Senate Bill
Republican John McCain of Arizona said in a statement Thursday that he’s decided to support the Senate tax bill.
“I believe this legislation, though far from perfect, would enhance American competitiveness, boost the economy, and provide long overdue tax relief for middle class families,” McCain said. See More