In July 2019, the IRS released a draft of form 1099-NEC, which is designed to report non-employee compensation. While this may seem like a new form to many, it’s actually a revival of a form used until the early 1980’s, which was eventually replaced by form 1099-MISC.
Read more →If you receive an audit notice from the IRS, do not panic. Just breathe! Read the letter in its entirety to see what they are auditing. In many cases, it’s a great idea to hire a tax representation professional to deal with the audit, especially if it’s
Read more →If you’re involved in a lawsuit or a court case (except as a juror), you may want to get up to speed on how court settlements and judgements are taxed. Settlements and judgements are taxed the same—if you win a judgement or settle a case, the same
Read more →The Tax Cuts and Jobs Act created a new tax incentive to defer (and possibly even eliminate) capital gains taxes by investing in a Qualified Opportunity Zone (QOZ). What is a Qualified Opportunity Zone? A Qualified Opportunity Zone is an economically distressed community. For an area to
Read more →Under the Tax Cuts and Jobs Act, tax preparers must receive additional information from clients who qualify for any of the following tax credits: Earned Income Tax Credit (EIC) Child Tax Credit (CTC) American Opportunity Tax Credit (AOTC) Head of Household filing status (HOH) In addition to
Read more →If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to
Read more →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
Read more →When a business acquires an asset that will last longer than a year, the cost of the asset must be expensed over time to match the asset’s life instead of being deducted all at once. This treatment increases taxes in the short term, and the tax code
Read more →Undergoing the scrutiny of an IRS audit is liable to put any taxpayer on edge. While it may seem like the IRS randomly hands out audit notices like candy to unlucky victims, there are some best practices you can put in place in order to avoid inadvertently
Read more →The Tax Cuts and Jobs Act of 2018 changed both the type of mortgage interest that can be deducted as well as the amount of interest that can be deducted. Acquisition Debt vs. Equity Debt The first step to untangling these new limitations is to distinguish between
Read more →