What Is the IRS Debt Forgiveness Program? | Getentrepreneurial.com

January 21, 2020January 20, 2020 ~ knjohn ~ Leave a comment

Have you faced financial hardship or do you know someone who has? Hardships come in many forms, from unexpected health problems to a lost source of income. Whenever someone faces a sudden hardship, they may be unable to fully pay their taxes.

Despite any financial troubles you might currently have, you need to file your taxes to avoid penalties from the IRS. However, that doesn’t mean the agency isn’t willing to work out a reasonable solution for those facing dire money problems. Find out how the IRS debt forgiveness program works and if it is right for your current situation.

IRS Announces Higher 2020 Retirement Plan Contribution Limits For 401(k)s And More | Forbes

November 8, 2019November 6, 2019 ~ knjohn ~ Leave a comment

How much can you save for retirement in 2020? The Treasury Department has announced inflation-adjusted figures for retirement account savings for 2020: 401(k) contribution limits are up; traditional IRA contribution limits stay the same; almost all the other numbers are up.

The amount you can contribute to your 401(k) or similar workplace retirement plan goes up from $19,000 in 2019 to $19,500 in 2020. The 401(k) catch-up contribution limit—if you’re 50 or older in 2020—will be $6,500 for workplace plans, up from $6,000. But the amount you can contribute to an Individual Retirement Account stays the same for 2020: $6,000, with a $1,000 catch-up limit if you’re 50 or older.

Surviving an IRS Audit: What You Need to Know | The Startup Magazine

November 5, 2019November 4, 2019 ~ knjohn ~ Leave a comment

Finding out that you are going to be audited by the IRS can be a little bit scary. However, with the right preparation, anyone can get through it. Here’s what you need to know to survive your IRS audit.

Don’t Ignore The Notice

Once you receive your IRS audit notice, you will usually have 30 days to respond to it; the precise time period will be specified in the notice. You should never ignore any correspondence from the IRS, claiming to not have received the letter won’t hold water in a courtroom. You can’t simply feign ignorance on the basis of not having received the letter.

The government is about to permanently bar the IRS from creating a free electronic filing system | TechCrunch

April 11, 2019April 10, 2019 ~ knjohn ~ Leave a comment

Thanks to pressure from tax preparation industry, Congress is getting ready to ban the Internal Revenue Service from ever building a free electronic tax filing system.

As ProPublica reports, the effort is a bipartisan one. The House Ways and Means Committee, led by Massachusetts Democrat, Richard Neal, passed the Taxpayer First Act.

The bill would make changes to the IRS and is sponsored by Georgia Democratic Congressman John Lewis and Mike Kelly, a Republican from Pennsylvania.

One of its stipulations would make it illegal for the IRS to create its own online system for tax filing. That’s right, members of Congress are prohibiting a branch of the federal government from providing a much-needed service that would make the lives of all of their constituents much easier.

Tax refunds 2019: Here’s why yours may be smaller, or why you may owe | Fast Company

February 18, 2019February 17, 2019 ~ knjohn ~ Leave a comment

Most Americans have a smaller total federal income tax bill for 2018 than they did in previous years, thanks to the tax law passed by Congress in 2017. But thanks to changing instructions from the IRS on how to withhold tax, many people will see smaller refunds or may even owe money when they file their tax returns.

So far, the average refund paid to taxpayers is down 8.7% to $1,949, from an average of $2,135 this time in filing season last year, according to the IRS.

Has Your Company 401(k) Plan Made These 11 Mistakes? | Payroll Link

May 8, 2017May 5, 2017 ~ knjohn ~ Leave a comment

It is critical to keep your company’s 401(k) plan in compliance with numerous federal laws and regulations. Plans that are found to be in violation risk expensive penalties and disqualification.

The IRS recently issued this list of 11 potential errors:

1. Has your 401(k) plan document been updated within the past few years to reflect recent law changes?

2. Are the plan’s operations based on the terms of the plan document?

3. Is the plan’s definition of compensation for all deferrals and allocations used correctly?

Pay Taxes, Buy a Slurpee: IRS Now Accepts Taxes at 7-Eleven | NBC News

April 8, 2016 ~ knjohn ~ Leave a comment

The Internal Revenue Service announced this week that taxpayers who need to make a payment in cash can now do so at 7-Eleven convenience stores.

While it may seem unusual to pay your taxes where you might otherwise pick up a Slurpee, it caters to a large number of Americans who do not have a bank account or credit card. The Federal Deposit Insurance Corporation estimates one in 13 households in the U.S. do not have a bank account.

“We continue to look for new ways to provide services for our taxpayers … this provides a new way for people who can only pay their taxes in cash without having to travel to an IRS Taxpayer Assistance Center,” said IRS Commissioner John Koskinen.

Crazy Sounding Tax Deductions That IRS (Or The Tax Court) Says Are Legit | Forbes

February 22, 2016 ~ knjohn ~ Leave a comment

Are you searching high and low for tax deductions? In the run up to April 15, you aren’t the only one. Unfortunately, it is too late to date checks December 31, 2015! Since taxes are annual, you must think about last year, 2015. Still, if your facts are right and you feel adventurous, here are some unusual deductions taxpayers managed to get approved. Admittedly, some had to take the IRS to court to get their deduction approved.

Cosmetic surgery costs are usually non-deductible, but an exotic dancer named Chesty Love tested this rule. If you want bigger tips, you go bigger, she reasoned. So she decided to go way bigger, shelling out for breast implants that would bloat her bra size to 56-FF. When she wrote off the bill, the IRS said it was nondeductible cosmetic surgery. But in Hess v. Commissioner,the Tax Court allowed tax benefits, allowing her to claim the implants as depreciable assets, a type of stage prop.

Top 20 Tax Deductions for Small Business | Small Biz Trends

February 4, 2016 ~ knjohn ~ Leave a comment

On Wall Street, there’s a saying that past performance is no guarantee of future results. When it comes to taxes, however, past performance is a great indicator of the types of deductions that businesses typically take each year.

Last winter the IRS released data on Schedule C filers. Here are some of the most popular tax deductions for small business that were claimed by sole proprietors as determined by the dollar amounts, starting with the largest category. The same types of deductions can be claimed by other entities — C corporations, S corporations, partnerships, and limited liability companies (LLCs) (although there may be slightly different rules for some deductions). See which of these tax deductions for small business apply for your 2015 tax return.

Tax Scams are Once Again on the Rise | Small Biz Trends

November 24, 2015 ~ knjohn ~ Leave a comment

Tax scammers are again at work and your small businesses could be vulnerable just like other consumers. Authorities insist calls from scammers claiming to be with the Internal Revenue Service are on the rise around the country.

Just in case you are not aware of this tax scam, it works on fear and intimidation by the criminals. They call their victims and leave a menacing message on voice mail stating you have a warrant for your arrest because of a tax violation. When you call the number to find out what it is all about, the ruse continues to play out until they talk you into sending them money.

Here’s what you need to protect your business and yourself.