irs - Linkenheimer LLP CPAs & Advisors

Back-to-School Education Tax Credits

If you, your spouse or a dependent are heading off to college in the fall, some of your costs may save you money at tax time. You may be able to claim a tax credit on your federal tax return. Here are some key IRS tips that you should know about e tax credits:

• American Opportunity Tax Credit. The AOTC is worth up to $2,500 per year for an eligible student. You may claim this credit only for the first four years of higher education. Forty percent of the AOTC is refundable. That means if you are eligible, you can get up to $1,000 of the credit as a refund, even if you do not owe any taxes.

• Lifetime Learning Credit. The LLC is worth up to $2,000 on your tax return. There is no limit on the number of years that you can claim the LLC for an eligible student.

• One credit per student. You can claim only one type of education credit per student on your tax return each year. If more than one student qualifies for a credit in the same year, you can claim a different credit for each student. […]

By Linkenheimer LLP|2020-09-03T20:05:24+00:00August 5th, 2015|education credit|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

IRS Reminds Businesses of Cash Transaction Reporting Requirement

Businesses, including sole proprietors, in any U.S. possession or territory must report a cash transaction exceeding $10,000. The transactions are reported on Form 8300, which must be filed within 15 days of the transaction. A transaction can include two or more related transactions if the recipient knows, or has reason to know, that each transaction is one of a series of connected transactions. Transactions conducted between a payer (or its agent) and the recipient within a 24-hour period are considered related. Cash includes coins and currency (domestic and foreign), cashier’s checks, bank drafts, traveler’s checks, and money orders. U.S. possessions and territories include American Samoa, the Commonwealth of Northern Mariana Islands, Guam, Puerto Rico, and the U.S. Virgin Islands. Businesses required to file Form 8300 can include pawnbrokers, attorneys, real estate brokers, insurance companies, and travel agents, as well as those that sell jewelry, furniture, boats, aircraft, or automobiles.

By Linkenheimer LLP|2015-06-17T19:54:18+00:00May 28th, 2015|irs|0 Comments

IRS Tangible Property Regulations and What We Can Do for You

This tax season, we are diligently working with our clients to analyze depreciation schedules with the new IRS Tangible Property Regulations in mind. The effort has paid off with finding over $3,000,000 of additional deductions on 2013 and prior capitalized assets. These additional deductions could be worth anywhere from $1,000,000 to $1,500,000 in saved federal and California income taxes. So, if we contact you regarding your fixed assets and doing a review for the new Tangible Property Regulations give us a hand because it could give you a big payback. If we haven’t talked to you, consider making contact with us regarding this review before you file your 2014 tax returns.

By Linkenheimer LLP|2020-09-03T20:05:28+00:00April 6th, 2015|Tangible Property Regulations|0 Comments

IRS Ignoring Taxpayers’ Phone Calls

IRS Ignoring Taxpayers’ Phone Calls, But Reducing Application Backlog for Tax Exempts: Speaking at the National Press Club on 3/31/15, IRS Commissioner John Koskinen said the IRS is ignoring more than 60% of taxpayers’ phone calls during this tax season. He indicated that the IRS’s limited budget is responsible for understaffing and pleaded for a budget increase to help staff the agency’s overwhelmed customer service lines. On a more positive note, Mr. Koskinen reported that the IRS has eliminated a huge processing backlog of groups seeking tax-exempt status.

By Linkenheimer LLP|2020-09-03T20:05:29+00:00April 2nd, 2015|irs|0 Comments