When it comes to running a business, there are many ways to save money and maximize your profits. One way to do this is by hiring your child to work in your business. However, if you want to take a tax deduction for the wages you pay your child, there are certain rules and limitations […]
TikTok has exploded in popularity over the past few years, with millions of users sharing short videos on everything from dance trends to cooking tutorials. However, one area where TikTok may not be the best source of information is tax advice. While some TikTok creators may offer well-intentioned advice, there are several reasons why you […]
As a taxpayer, it is important to understand that you are ultimately liable for the information included on your tax return. This means that if there are any mistakes or inaccuracies on your return, you could be held responsible for any resulting penalties or fines. The IRS has a system in place to help ensure […]
If you’re like most people, you probably look forward to receiving your tax refund each year. However, if the bank account information you provided to the IRS is incorrect or outdated, you might be wondering how you’ll receive your refund. The good news is that the IRS will still send you a check for your […]
As tax season rolls around, many people are realizing that their tax refunds are smaller than they were last year. While there are many factors that can impact the size of your refund, one major reason why tax refunds are smaller this year is due to tax credits changing back to pre-pandemic figures. During the […]
Overdue tax installment payments are about to become more expensive. The service is proposing a stiff IRS user fee hike to go into effect on Jan. 1 2017. The charge for new installment plans will be $225… a $105 jump from today’s cost. The outlay for direct debit installment agreements will more than double to […]
ITINs issued before 2013 will expire 12/31/2016. Renewal process will open October 1st, 2016. To identify if an ITIN was issued prior to 2013, the first individuals in this group are ITINs with 78 or 79 as the middle digits. ITINs that have not been used on a US tax return for the past […]
In years past the cost of a new PTIN or renewing a PTIN was $64.25 or $63 respectively. However, the price has recently changed and may stay at this new price point for an undetermined period of time. The new cost, whether applying for a new PTIN or renewing your PTIN, will be the same, […]
How Do I Obtain the AFSP – Record of Completion? • Take eighteen (18) credit hours of Continuing Education, comprised of: – Six (6) hours of Annual Federal Tax Refresher (AFTR) course that covers filing for the tax year and includes a knowledge-based, open book comprehension test administered at the end of the course through […]
Do not forget that if you filed an extension for additional time to file, the deadline is fast approaching. You will be able to file returns for a while longer but your client may face additional penalties as a result of the delay. Play it safe, and file before the deadline, or, if nothing else, […]
IRS released new information today highlighting increases in EITC preparer fraud penalties. The standard monetary penalty has increased from $100 to $500 per compliance issue on returns filed after 12/31/2011. For more information on avoiding preparer compliance penalties visit the IRS’ EITC Website for more information. This recent update was just released today, 11/7/2011, and […]
IRS statistics show that approximately 4% of all returns including schedule C income eventually get audited. Half of these returns are audited due to a random selection and the other half are chosen based upon a scoring assessment based upon IRS standardization charts for different acceptable business expenses. The IRS released that the most common […]
It takes approximately 1 year for the IRS to tabulate and release statistical information related to tax filings. They have just finished compiling tax and demographic information for the 2009 tax year, filed starting January of 2010. This year should be of significant relevance as it is the first set figures relating to the recession […]
President Obama just recently proposed a new tax credit for hiring veterans that have recently returned from combat overseas. The credit ceilings would range from $4,800 to $9,600, depending on the longevity of the position these veterans are employed for and the length that they have been unemployed and if they have any disabilities. This […]
Note to all offices preparing MN state tax returns – Minnesota has placed their state government offices and agencies on a skeleton schedule while they attempt to pass an acceptable budget. This state processing shutdown will have an effect on any clients that are currently waiting for a MN state tax refund, as they are […]