"The United States has a system of taxation by confession.”
~ Hugo Black
The Internal Revenue Service today announced that 401(k)s and similar employer-sponsored retirement plans can make loans and hardship distributions to Louisiana flood victims and members of their families.
Participants in 401(k) plans, employees of public schools and tax-exempt organizations with 403(b) tax-sheltered annuities, as well as state and local government employees with 457(b) deferred-compensation plans may be eligible to take advantage of these streamlined loan procedures and liberalized hardship distribution rules.
Though IRA participants are barred from taking out loans, they may be eligible to receive distributions under liberalized procedures. Retirement plans can provide this relief to employees and certain members of their families who live or work in the disaster area.
The 2016 second quarter economic growth rate was an anemic 1.1%, recently revised down from 1.2%. It was the third consecutive period in which the economy advanced at less than a 2 percent annual rate, the weakest in four years.
Trump's economic plan promises to be a positive step toward America's economic revitalization. The goal of his plan is jobs, growth, and opportunity.
Hillary Clinton's economic plan proposes increased government spending ("investments") and taxing high income earners and businesses. The American Action Forum says her plan would hike taxes by $1.3 trillion and boost spending by $3.5 trillion over the next decade, dramatically increasing our national debt.
You may elect to deduct up to $5,000 of start-up costs in the year your business begins operations. The $5,000 first-year deduction limit is reduced by the amount of start-up costs exceeding $50,000.
Start-up costs that exceed the first-year limit of $5,000 may be amortized ratably over 15 years. The amortization period starts with the month you begin operating your active trade or business.
After seeing an approximate 400% surge in phishing and malware incidents so far this tax season (tax year 2015), the Internal Revenue Service has renewed a consumer alert for e-mail schemes being reported in every section of the country.
These emails look official and can fool taxpayers into thinking they are from the IRS or others in the tax industry, including tax software companies.
The objective of these emails is gain access to sensitive taxpayer information. To get a taxpayer's attention, these emails will refer to hot topics, such as refunds, filing status, confirming personal information, ordering transcripts, verifying PIN information, and a host of other tax-related topics.
On December 18, 2015, the President signed into law the tax extenders bill, entitled the Protecting Americans from Tax Hikes (PATH) Act of 2015. The new law makes more than 20 tax breaks permanent and retroactively extends others for two or more years.
Here's a rundown of key business, individual, and miscellaneous provisions:
Generally, the cost of meals are considered a personal expense and are not deductible, unless they meet certain IRS rules.
For example, if you go out to lunch yourself during the course of your work day or with a business associate, and there is no business purpose other than to simply get a bite to eat, the cost of your lunch is a personal expense and is not deductible.
You can deduct meal and entertainment expenses only if they are both ordinary and necessary (not lavish or extravagant) and meet either one of the following two tests (discussed below).
Self-employed persons deduct business-related travel expenses while away from home as a business expense.
Offshore accounts have been used to lure taxpayers into scams and schemes. According to the IRS, hiding money or assets in unreported offshore accounts remains on its annual list of tax scams.
Over the years, a number of individuals have been identified as evading U.S. taxes by hiding income in offshore banks, brokerage accounts or nominee entities and then using debit cards, credit cards or wire transfers to access the funds.
For any month during the year that you or any of your family members don’t have minimum essential coverage and don’t qualify for a coverage exemption, you are required to make an individual shared responsibility payment (a euphemism for penalty) when you file your tax return.
Here are six things to know about the penalty payment:
The Affordable Care Act (ACA) will affect your federal income tax return.
Five things you should know about exemptions from the ACA coverage requirement and the individual shared responsibility payment that will help you get ready to file your tax return:
Last tax season, 2015, some crooked tax preparers around the country victimized a number of uninformed taxpayers in connection with the penalty requirement for taxpayers without health insurance.
Starting January 2014, you and your family were required to either have health insurance coverage throughout the year, qualify for an exemption from coverage, or if you had no health insurance coverage, pay a penalty with your 2014 federal income tax return filed in 2015. The penalty is euphemistically called, The Individual Shared Responsibility Payment.
Many people already had qualifying health insurance coverage and did not need to do anything more than maintain their coverage.