Hispanic couple managing finances

Social Security Benefit Loophole Ended

Cross References • Public Law 114-74, Subtitle C, Section 831 The Bipartisan Budget Act of 2015, signed into law on November 2, 2015, contains a provision that closes a loophole in the rules for collecting Social Security benefits. The provision has to do with the so called “file and suspend” strategy. Section 831 of the […]

tax-scams

Tax Scams – How to Protect Yourself

There are many tax scams out there with the purpose of stealing your identity, stealing your money, or filing fraudulent tax returns using your private information. Tax scammers work year-round, not just during tax season and target virtually everyone. Stay alert to the ways criminals pose as the IRS to trick you out of your […]

IRS Cash Payment

IRS Offers New Cash Payment Option

Cross References • IR-2016-56, April 6, 2016 The Internal Revenue Service has announced a new payment option for individual taxpayers who need to pay their taxes with cash. In partnership with ACI Worldwide’s OfficialPayments.com and the PayNearMe Company, individuals can now make a payment without the need of a bank account or credit card at […]

IRS Due Date Changes

Changes in Tax Year 2016 filing dates

Dear Clients, The IRS has changed some of the filing deadlines for tax returns and informational documents, effective with your 2016 returns. This means that you may need to plan to get us your information quite a bit sooner than before in order to file your 2016 return timely. Please note that pending legislation for […]

IRS Horse Racing

Horse Racing Activity Not a Hobby

Cross References • Roberts, 7th Circuit Court of Appeals, April 15, 2016 • T.C. Memo. 2014-74 • IRC §183 The Tax Court ruled a taxpayer was not engaged in a race horse activity for profit and therefore disallowed losses used to offset other income. The 7th Circuit Court of Appeals recently reversed that ruling. The taxpayer […]

European Union Flag

The British Are Leaving! Why the Brexit Matters to Investors

On June 23, citizens of the United Kingdom (England, Scotland, Wales, and Northern Ireland) voted to leave the European Union by a margin of 52% to 48%.1 Though pre-election polls suggested that public opinion was evenly divided, when the election results became clear, financial markets around the world reacted swiftly to concerns about potential economic ramifications […]

Employee Vehicles

Employer-Provided Vehicles

Cross References [Notice 2016-12] If an employer provides an employee with a company-owned vehicle, and the employee uses the vehicle for personal purposes, then the value of that personal use must be included as taxable income on the employee’s Form W-2. Under the general rule, the taxable amount equals the FMV of the total use, minus the amount the employee […]

Tax Court Judge Indicted for Tax Evasion

Cross References: www.justice.gov Dept. of Justice Press Release dated April 4, 2016 A former U.S. Tax Court Judge and her husband have been indicted for conspiracy to commit tax evasion and obstruction of an IRS audit. The couple are accused of trying to evade more than $400,000 in federal taxes during a time when the defendant was a sitting U.S. Tax Court […]

Horses For Profit

Horse Breeding Was a Hobby, Not a Business

Cross References: Stuller, 7th Circuit Court of Appeals, January 26, 2016 The taxpayers lived in Illinois and owned several profitable restaurants. They also owned and bred horses on a farm in Tennessee. They hired an experienced horse trainer to train their horses and manage the farm. Under an agreement between the trainer and the taxpayers, the horse trainer […]

Donate your car for tax advanatges

If you have an old car that you are looking to get rid of, you have one of four options. You can trade it in on a new car, sell it on your own, take it to the junk yard, or donate it to a good cause. Even though there are benefits that go along […]