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IRS Clarifies Tangible Property Regulations

IRS Clarifies Tangible Property Regulations: The IRS has released new answers to Frequently Answered Questions (FAQs) on the final tangible property regulations, including information on simplified procedures for small business taxpayers. The FAQs provides guidance on the de minimis safe harbor election, which allows many businesses to do away with capitalizing and depreciating (or claiming a Section 179 expense) for many lower-cost assets, such as furniture, equipment, and computers. They also clarify that the de minimis safe harbor election is not a change in accounting methods and does not require the filing of Form 3115 (Application for Change in Method of Accounting). Nor does a taxpayer need to file a Form 3115 to stop using the de minimis safe harbor for a subsequent tax year. Additionally, the FAQs explain the rules for the treatment of materials and supplies costs. The IRS’s FAQs on the tangible property final regulations are available at http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Tangible-Property-Final-Regulations . If you still have questions on how the tangible property regulations may affect you and your business, please contact your Linkenheimer CPA.

By Linkenheimer LLP|2015-03-26T20:19:45+00:00March 24th, 2015|Tangible Property Regulations|0 Comments

IRS Sending out ID Verification Letters

IRS Is Sending out Identity Verification Letters to Possible Identity Theft Victims: In its efforts to combat identity theft, the IRS is stopping suspicious tax returns that have indications of being identity theft, but contain a real taxpayer’s name and/or social security number and sending out (by US Postal Service) Letter 5071C to request that the taxpayer verify his or her identity. (The IRS will not email or telephone the taxpayer directly to request this information so please be cautious of anyone calling or emailing claiming to be from the IRS.) Taxpayers may use the idverify.irs.gov site or call a toll-free number on the letter to confirm their identity, but the IRS is encouraging the use of idverify.irs.gov as the safest, fastest option. Once their identity is verified, the taxpayers can confirm whether or not they filed the return in question. If so, it will take approximately six weeks to process it and issue a refund. If not, the IRS can take steps at that time to assist them. If you have any questions, please contact your Linkenheimer CPA.

By Linkenheimer LLP|2020-09-03T20:05:30+00:00March 24th, 2015|irs|0 Comments

Where’s My Refund?

The IRS has reminded taxpayers that they can quickly check the status of their tax return and refund through “Where’s My Refund?” on IRS.gov or on the smartphone application IRS2Go. Initial information will normally be available within 24 hours after the IRS receives the taxpayer’s efiled return or four weeks after the taxpayer mails a paper return to the IRS. The system updates only once every 24 hours, usually overnight, so there’s no need to check more often. Taxpayers should have their Social Security number, filing status, and exact refund amount when accessing “Where’s My Refund?”

If you have any questions, feel free to contact your Linkenheimer LLP CPA.

By Linkenheimer LLP|2020-09-03T20:05:30+00:00March 13th, 2015|refunds|0 Comments

Claiming a Tax Deduction for Medical and Dental Expenses

Your medical expenses may save you money at tax time, but a few key rules apply. Here are some tax tips to help you determine if you can claim a tax deduction:

You must itemize. You can only claim your medical expenses that you paid for in 2014 if you itemize deductions on your federal tax return. If you take the standard deduction, you can’t claim these expenses.
AGI threshold. You include all the qualified medical costs that you paid for during the year. However, you can only deduct the amount that is more than 10 percent of your adjusted gross income.
Temporary threshold for age 65. If you or your spouse is age 65 or older, the AGI threshold is 7.5 percent of your AGI. This exception applies through Dec. 31, 2016.
Costs to include. You can include most medical and dental costs that you paid for yourself, your spouse and your dependents. Exceptions and special rules apply. Costs reimbursed by insurance or other sources do not qualify for a deduction.
Expenses that qualify. You can include the costs of diagnosing, treating, easing or preventing disease. The […]

By Linkenheimer LLP|2020-09-03T20:05:30+00:00March 11th, 2015|deduction, medical deduction|0 Comments

Update Regarding the Tangible Property Regulations

Update: The IRS issued Revenue Procedure 2015-20 0n Friday, February 13, effective for tax years beginning on or after January 1, 2014, that provide a “small business exception” for taxpayers to adopt the tangible property regulations without the filing of Form 3115, (Application for Change in Accounting Method), if a set of conditions are met.

Each separate and distinct trade or business (the most important requirement is that the activity maintains a complete and separable set of books and records, meaning the activity qualifies for its own methods of accounting on their own), qualifies for the small business exception if at least one of the following conditions is met:

The activity has total assets of less than $10 million as of, or after January 1, 2014.
Average annual gross receipts of $10 million or less for the prior three taxable years.

Taxpayers who use the small business exception will forfeit certain benefits that are only available to those who file Form 3115 for their first tax year beginning on or after January 1, 2014. Before your 2014 income tax return is filed, you must decide whether to apply the small business exception or file Form 3115 . […]

By Linkenheimer LLP|2020-09-03T20:05:31+00:00February 24th, 2015|Tangible Property Regulations|0 Comments