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.
Tax preparation professionals will likely find themselves in a relatively stable career. After all, we can claim nothing to be certain, except death and taxes. As long as the United States government continues to collect taxes, people will continue to need help navigating their tax filings.
The Internal Revenue Service (IRS) may expand its focus when looking for tax fraud. The shift may come as a result of a recent whistleblower case. The case involves a former chief tax executive who reached out to the agency to call out his employer for alleged tax fraud crimes.
Not located in Texas? Then your business does not need to pay a state sales tax if a Texas resident buys your product, right? In the past, this was true. The application of a state sales tax to online transactions was essentially limited to those businesses that had a physical presence within the state. No physical presence, no sales tax.
The Tax Day deadline of April 15 has passed. Some taxpayers got their taxes in order and sent in early while others rushed to make the deadline. Regardless of which group you found yourself in, you may have put that return in the mailbox only to realize you made a mistake.
The Internal Revenue Service (IRS) requires tax preparation professionals use a Preparer Tax Identification Number (PTIN). The number serves in a similar manner as a Social Security Number, providing a tax preparer with a unique identifier. The IRS states these numbers help tax preparers avoid using their own Social Security numbers when serving clients. Tax preparers take issue with these numbers as they are costly.
Whistleblowers who inform the IRS about noncompliant tax behavior by others are eligible for financial awards in certain circumstances.
One of the benefits of owning your own business is the ability to take advantage of certain tax savings. In some cases, space in your home used as an office could result in a deduction as well as computer expenses and the like. These more traditional expenses are well defined by the Internal Revenue Service (IRS). For example, a home office deduction requires the taxpayer uses the space regularly and exclusively for business and that the space is the principal place of business.
The Supreme Court of the United States (SCOTUS) has agreed to hear a case that questions whether the due process clause prohibits states from taxing trusts based on the trust beneficiaries’ in-state residency. It is important to note this case addresses the taxation of the trust income itself, not distributions. In most cases, it is legal for a state to require the payment of taxes on distributions made to a resident of the state.
The United States is currently entering the third week of a partial government shutdown. As the shutdown continues without an apparent end in sight, taxpayers are likely voicing concerns about how the shutdown will impact their taxes.