The Tax Cuts and Jobs Act (TCJA) is in full effect during this tax season. Although we may have learned a lot after going through last year’s tax filings, many tax preparation professionals are still struggling to correctly apply the nuances of this complicated piece of tax reform.
3 FAQs about tax audits
As we prepare for the new year, taxpayers throughout the country are likely getting things in order for their tax filings. While gathering these documents, some may find themselves wondering what happens if they mess up. Will it lead to an audit? The following will delve into three of the most common questions that arise regarding tax audits, including when a mistake can result in a visit from the Internal Revenue Service (IRS).
3 penalties for tax preparers who file a late personal tax return
A failure to file tax returns can come with serious penalties for any taxpayer. However, those who specialize in filing tax returns as a profession can face even harsher penalties. These can include:
Taxes, retirement and end of year preparations
Certain retirement savings plans allow for a tax deferment. The Internal Revenue Service (IRS) will eventually expect taxpayers to pay taxes on those savings. In most cases, the agency requires the taxpayer to start taking required minimum distributions (RMDs) and making payments when they reach the age of 70 and ½.
Examples of applicable accounts include 401(k)s and work savings accounts.
Three tips to avoid a surprise tax bill
The United States tax system is complicated. To make matters even more difficult to navigate, the government recently changed the tax code with the Tax Cuts and Jobs Act (TCJA). A failure to follow the rules can result in serious fines and, depending on the mistake, potential imprisonment.
Texan man faces decades in prison for tax crime conviction
The Department of Justice (DOJ) continues to crackdown on allegations of tax crime. In fact, the agency is so serious about tax crime that it has a Tax Division composed of over 350 attorneys focused solely on criminal and civil tax crime litigation. These individuals investigate and prosecute those who the agency believes are thwarting their tax obligations. Recently, this led to an investigation in Texas.
Tax preparer accused of getting “excessive refunds” for clients
The federal government has continued its crackdown on tax preparation professionals. A recent case provides an example.
Details of the charges
3 things to know about the IRS and cryptocurrency
Cryptocurrency, also known as digital currency, is booming. This relatively new form of currency provides a unique issue for the Internal Revenue Service (IRS). But the IRS is learning. It is figuring out the best way to track down these accounts and hold taxpayers who may attempt to thwart their tax obligations accountable.
Did the IRS just lower your GILTI tax?
The Internal Revenue Service (IRS) recently released final and proposed regulations dealing with the global intangible low-taxed income (GILTI) provision. This provision was part of the Tax Cuts and Jobs Act (TCJA). The new regulations include a high-tax exception (HTE) to the GILTI.
One potential benefit: taxpayers may be able to remove controlled foreign corporation (CFCs) from their GILTI inclusion amount.
Does the DOJ aim to thwart attorney-client privilege in tax cases?
The Tax Division of the Department of Justice (DOJ) is attempting to increase its efficiency. One way it may attempt to reach this goal: increasing requests for a crime fraud exception.
What is a crime-fraud exception?
