The Tax Cuts and Jobs Act (TCJA) this month will mark its 2nd birthday. After two full years of dealing with its provisions, the most tax code changes in 30-plus years, there's still debate over how much it's helped both taxpayers and the economy. One thing is clear, however. The TCJA's focus on lowering tax rates for big business has transformed the United States' global tax ranking. Since the TCJA took effect, the U.S. of A. has gone from a high-tax nation to one of the lowest-taxed countries in the world, according to the latest global tax report from the... Read more →
December 2019
More offices are having holiday parties this year. Even better, the seasonal soirees — and small gifts for workers — could be tax free. Most holiday office parties aren't as raucous as the one portrayed in the R-rated 2016 movie "Office Christmas Party." That's probably good for bosses, workers and the tax collector trying to make sense of the deduction claims. (Screenshot of YouTube trailer) Offices are much more jolly this holiday season. More than three-quarters of businesses are planning parties this December. That 76 percent of companies throwing seasonal soirees is up more than 10 percent over 2018 count... Read more →
Sharyn M. Fisk has been selected to take the helm of the Internal Revenue Service office that makes sure those folks who practice before the agency do so in a legal, professional and professionally ethical way. Fisk, a professor of tax at the College of Business Administration at Cal Poly Pomona, will assume leadership of the IRS Office of Professional Responsibility (OPR) in early 2020. OPR oversees all tax practitioners, tax preparers and other third parties in the tax system who practice before the IRS. The office ensures these tax pros adhere to professional standards and follow the law. The... Read more →
Folks who cheat on their taxes to pocket extra dollars are infuriating enough to those of us struggling to do everything right on our 1040 forms. Folks who go to extremes to evade taxes are even more maddening. The Internal Revenue Service, however, has some good news for us here. It's Criminal Investigation (CI) unit is catching and convicting these tax criminals at a commendable rate. A 91.2 percent conviction rate in 2019, to be precise. That's among the highest of all federal law enforcement agencies, according to the IRS. And CI, which detailed that conviction rate and other successes... Read more →
The days left in 2019 are dwindling. Quickly. Don't just take my work for it. Check out the countdown clock over in the right column of the ol' blog literally clicking away the seconds left in this year. That means it's time to act to cut your taxes. You can check out my monthly tax moves (thank you!) for November and December for some possibilities. While I did mention in those earlier posts (the November one specifically) the Tax Cuts and Jobs Act's 20 percent tax break for small businesses that operate as passthrough entities, most of those earlier tips... Read more →
Record-setting Cyber Monday sales means more porches across the United States will look like this. But the remote sales' boost to state tax coffers wasn't as big as some expected. $9.4 billion. That's how much U.S. shoppers spent on the just-passed Cyber Monday. That was nearly 20 percent more than last year's $7.9 billion tally for the annual and over-hyped Monday-after-Thanksgiving online shopping day. Obviously, the $9.4 billion in sales is a Cyber Monday record. Also obviously, all those online transactions will help out the state treasuries that now, in the wake of the Supreme Court's Wayfair 2018 decision, are... Read more →
The IRS plans to take closer and continuous looks at individuals who want to join its programs. We are living in a digital world. That's why the Internal Revenue Service, which itself has been encouraging, and in some cases, forcing us to go online when it comes to our tax tasks. Such increased cyber interactions obviously have some downsides. Chief among them is the opportunity for hackers to take over our identities, tax and otherwise. That's why the IRS and its Security Summit partners are participating in the 4th Annual National Tax Security Awareness Week. It included an IRS-moderated #TaxSecurityChat... Read more →
Updated Friday, Dec. 6, 2019 Source: PhotoMIX Ltd via Pexels Yes, I know Cyber Monday has come and gone. I also realize that a lot of folks finished up their holiday shopping earlier this week. But there always are those of us who put off picking up that perfect present until the last minute. Or, as Dec. 25 nears, we just happen to see something that our spouse, parents, children or best fiend would absolutely love. So, since we seem to be perpetually logged in, we click on it and we're done. Unless our clicking leads to identity theft. Beyond... Read more →
Congratulations! You made it through Thanksgiving. And Black Friday, Small Business Saturday and Cyber Monday. Are you ready for one more special day before the end-of-year biggies? I'm talking about today, Giving Tuesday. Giving Tuesday, a post-Thanksgiving fixture since 2012, is the unofficial kick-off of the annual end-of-year charitable season Today was designed as a global day during which folks are encouraged to give back to their communities and the charitable causes they care about. The timing fits right into the end-of-year solicitations by nonprofit organizations and the annual tax considerations of donors. Tax cuts also cut donor numbers: Over... Read more →
These carolers, dressed in Dickensian attire, are no doubt singing traditional Christmas tunes, not my reworked and tax-themed "O Tannenbaum." (Photo by Chris Waits via Flickr CC) O Tax Year-End (O Tax Year Moves) O Tax Year-End, O Tax Year-End, How are thy days so nearing! O Tax Year Moves, O Tax Year Moves, How are thy days so wearing! Not only in the wintertime, But even in young spring is thy prime. O Tax Year-End, O Tax Year Moves, How are thy days so nearing! Yes, that's my attempt at tax lyrics to the tune "O Tannenbaum," known here... Read more →
Current state and local taxes deduction limit on federal Form 1040 Schedule A. We're wrapping up the second full year of living with the Tax Cuts and Jobs Act (TCJA) but some things still feel unfinished. Treasury and the Internal Revenue Service continue to issue guidance on various provisions, tax forms still are being tweaked, economists can't agree on the tax bill's economic effects and a key legal battle is still raging. The courtroom drama is about, you guessed it, TCJA's $10,000 limit on state and local taxes itemized federal deductions. Fighting a low-SALT tax diet: In July 2018, New... Read more →