irs - Linkenheimer LLP CPAs & Advisors

Reminder IP PINs Are Required for Identity Theft Victims’ 2015 Returns

In mid December, the IRS issued CP01A notices containing a 6-digit Identity Protection Personal Identification Number (IP PIN) for taxpayers who are victims of tax-related identity theft. This notice is sent to taxpayers who: (1) reported to the IRS they are a victim of identity theft; (2) have been identified by the IRS as a victim of identity theft; (3) received an IP PIN last year, or (4) participated in the 2015 IP PIN pilot for residents of FL, GA, or DC. Beginning 1/1/16, taxpayers who are assigned an IP PIN must use it (regardless of whether the SSN is entered for a primary, spouse, or dependent/qualifying individual) on the following returns: Form 1040 series, Form 2441 (Child and Dependent Care Expenses), and Schedule EIC (Earned Income Credit). If the IP PIN is not included in any of the required fields, the return will be rejected. See www.irs.gov/Individuals/IPPIN-Rule .

By Linkenheimer LLP|2020-09-03T20:05:17+00:00January 7th, 2016|irs|0 Comments

New PATH Act Provides Major Benefits to Businesses in 2015

With only two weeks remaining until the end of the year, Congress passed the Protecting Americans from Tax Hike (PATH) Act of 2015, which reinstates a large number of tax provisions that had expired in 2014, many of which were not just renewed, but made permanent, while some of the other provisions are extended through 2016, and in some cases, 2019. This gift from Congress comes just in time for the holidays and will have a significant impact on tax payers and businesses. Below are some of the major provisions worth noting. And because California does not conform to some of these tax breaks, please contact us so we can help with your individual and year-end tax planning.

Highlights of the PATH Act:

$622 Billion Tax Break Package
Over 100 Separate Provisions
Permanent Research Tax Credit, Code Sec. 179 Expensing and AOTC (American Opportunity Tax Credit)
Five-Year Extension for Bonus Depreciation
Delay of Excise Tax on “Cadillac” Plans
Moratorium on Medical Device Excise Tax
Overall Major IRS Reform

Permanent Extensions for Individuals

Earned income tax credit
American Opportunity Tax Credit
Child tax credit
Option to to deduct state and local sales and use taxes instead of state and local income taxes
Teachers classroom expense deductions
Charitable distributions for IRAs
Qualified […]

By Linkenheimer LLP|2020-09-03T20:05:18+00:00December 29th, 2015|congress, extension, extensions, irs|0 Comments

Employers Need to Understand Their Employment Tax Responsibilities

The IRS has issued a fact sheet to remind business owners how critical it is to understand the various types of employment-related taxes they may be required to deposit and report. This fact sheet provides information on some of the more common employment tax topics posed by business owners, including worker classification, Voluntary Classification Settlement Program (VCSP), fringe benefits, officer compensation, and backup withholding and information return penalties. The fact sheet is available at https://www.irs.gov/uac/Newsroom/General-Employment-Tax-Issues .

If you have any questions, please contact your Linkenheimer CPA at (707) 546-0272.

By Linkenheimer LLP|2020-09-03T20:05:20+00:00November 18th, 2015|business, employer, irs|0 Comments

Poor Recordkeeping Hurts Taxpayers: Problems and Prevention

Every year a few taxpayers go to court hoping for a better outcome than the one offered by the IRS. Usually, they lose due to poor records, not meeting all requirements for particular deductions, or inadequately separating business from personal expenditures. This article examines a few 2015 cases involving these issues and makes suggestions for practitioners to remind clients that they need timely records and should only report allowable deductions. – See more at: http://www.thetaxadviser.com/newsletters/2015/oct/poor-tax-recordkeeping-hurts-taxpayers.html#sthash.Do84PZol

By Linkenheimer LLP|2020-09-03T20:05:22+00:00November 3rd, 2015|irs|0 Comments

Reminder of Reporting Requirement for Taxpayers with Foreign Connections

The IRS is reminding all U.S. citizens and resident aliens with an interest in or signature or other authority over foreign financial accounts, whose total value exceeded $10,000 at any time during 2014, they must file electronically with the Treasury Department a Financial Crimes Enforcement Network (FinCEN) Form 114 [Report of Foreign Bank and Financial Accounts (FBAR)] by 6/30/15. The IRS encourages taxpayers with foreign assets to determine if they have a FBAR filing requirement. Separately, certain taxpayers living abroad (U.S. citizens and resident aliens, including those with dual citizenship who lived or worked abroad during all or part of 2014) may have to file a Form 1040 for 2014, including the Foreign Account Tax Compliance Act (FATCA) related Form 8938. The Form 1040 deadline for these taxpayers is automatically extended two months, to 6/15/15, by attaching a statement to their return explaining that they were living overseas or serving in the military outside the U.S. on the regular due date of their tax return. If you have any questions, please contact your Linkenheimer LLP CPA.

By Linkenheimer LLP|2020-09-03T20:05:26+00:00June 23rd, 2015|irs|0 Comments