As we get into the final stretch of filing season, it is fulfilling the predictions made at the start. “This filing season should be a doozy,” predicted Tom Wheelwright, a Scottsdale, Ariz.-based CPA. “Between the Affordable Care Act, the new Section 263(a) repair regulations and the inability of the IRS to answer the calls that…
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Although Republicans are outlining a proposal to provide an “off ramp” for states and consumers to exit the Affordable Care Act, and the Supreme Court is hearing oral arguments on a legal challenge to the federally-operated health exchange, state exchanges have been up and running. While tax preparers are fielding questions on the ACA, the…
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Sen. Ron Wyden, D-Ore., the ranking Democrat on the Senate Finance Committee, has sent a letter to Internal Revenue Service commissioner John Koskinen asking the agency to issue guidance to make clear that electrical vehicle charging provided by employers is a de minimis fringe benefit. Wyden argues that employer-provided electric vehicle charging should not be…
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If you use a part of your home for your business or for your employer’s business, you can claim a deduction for the business use of your home. This deduction is also referred to as the home office deduction. There are some tests that you must meet to be eligible for this deduction; these are…
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The Minnesota Society of CPAs has compiled a list of red flags that could trigger an audit from the IRS if they apply to your clients’ tax returns. IRS Auditor The Internal Revenue Service recently announced it will not require taxpayers to amend their returns or pay back any extra money they received in their…
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Whether you’re self-employed or an employee, if you use a car for business, you get the benefit of tax deductions. There are two choices for claiming deductions: 1. Deduct the actual business-related costs of gas, oil, lubrication, repairs, tires, supplies, parking, tolls, drivers’ salaries, and depreciation. 2. Use the standard mileage deduction in 2014 and…
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The Internal Revenue Service today reminded taxpayers who receive requests from the IRS to verify their identities that the Identity Verification Service website, idverify.irs.gov, offers the fastest, easiest way to complete the task. Taxpayers may receive a letter when the IRS stops suspicious tax returns that have indications of being identity theft but contains a…
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We’re almost at the halfway point of the 2015 fiscal year, and I am following up with you to share important information about our financial situation. As discussed in January, the IRS had to take some difficult steps to absorb the severe cuts to our budget. Throughout the process, we tried to balance cuts…
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Few people understand what really goes on behind the scenes of major corporations, public accounting firms, and law firms in how they go about hiring tax professionals. Unless you are a seasoned tax headhunter (http://www.etsearch.com/clients.htm), you will never know the many nuances and obstacles every tax professional goes through in the process of being hired.…
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Most people claim the standard deduction when they file their federal tax return. But did you know that you may lower your taxes if you itemize your deductions? Find out if you can save by doing your taxes using both methods. Usually, the bigger the deduction, the lower the tax you have to pay. You…
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