Tax Warrior Chronicles

IRS Allowing Mid-year Changes to Health and Dependent Care Plan Elections

Posted on Wed, May 13, 2020

COVID-19 has led to changes in many employees’ circumstances, from changes in a spouse’s employment and benefits eligibility to significant changes in medical or dependent care expenses. These changes in circumstances mean that many employees may need additional flexibility in their Section 125 Cafeteria Plans.  Various employers have indicated a willingness to offer employees such flexibility and the IRS has responded favorably by recently issuing Notice 2020-29.

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IRS Provides Guidance on Coronavirus Relief Package

Posted on Wed, Mar 18, 2020

The Treasury Department and the IRS finally issued Notice 2020-17 late Wednesday afternoon, providing guidance on how Affected Taxpayers may defer tax payments due to the coronavirus (COVID-19).

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Coronavirus Relief Package Likely to Extend April 15th Tax Return Filing and Payment Deadline

Posted on Wed, Mar 11, 2020

The White House and law makers met Wednesday March 11, 2020, to hash out emergency legislation to provide economic relief related to the coronavirus pandemic.  There is a planned vote on Thursday March 12, 2020, with hopes that President Trump will sign the legislation into law by Friday March 13, 2020.  It is expected that this legislation and related executive orders will include an extension of time to file and pay taxes normally due on or before April 15, 2020, for many taxpayers.

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June 30th Opportunity Fund Testing is Near - Here’s What You Need to Know to Pass!

Posted on Mon, Jun 10, 2019

The most recent set of proposed Opportunity Zone (OZ) regulations, issued by Treasury in April, provide the clarity many OZ Fund sponsors need to begin doing deals. However, early-adopters formed funds in 2018 and the beginning of 2019 despite the uncertainty in the law. For these courageous few, a critical IRS testing date is fast-approaching on June 30, 2019. Today, we discuss what you need to know to pass your OZ Fund’s mid-term test.

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How Social Media Influencers Are Taxed In the U.S.

Posted on Tue, Apr 30, 2019

By: Ted Nebiolo

 

Social Media is a normal and constant part of our lives. In 2019, there will be 2.77 billion social media users; that’s slightly more than one in three people on the planet!* For some social media users, with a large following and with high engagement of those followers, this means big business and potential income. Companies are using social media to market their products to an influencer’s universe of followers. In today’s blog, we’ll discuss how an influencer is taxed on income generated from marketing or selling products on social media.

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New Tax Law Challenges Present Opportunity for Scams

Posted on Fri, Jan 04, 2019

By: Eric R. Elmore

 

It’s been a full year since the Tax Cuts and Jobs Act of 2017 was passed. And, while the IRS and tax professionals continue to dissect it, scam artists are busy plotting to take advantage of the confusion to steal your money and identity. Today, we’ll discuss a few of their go-to scams and some new ones that have surfaced. Let's get at it!

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Head of Household in Post-TCJA Times: Still a Worthy Tax Filing Status?

Posted on Thu, Sep 27, 2018

By: Donna M. Pironti, CPA, MSA, CFF

 

Since the Tax Cuts and Jobs Act of 2017 (TCJA) we have received many questions on the head of household (HOH) filing status changes.  Although the definition of HOH and how one can claim that status has not changed, the rate changes have caused it to lose some of its pre-TCJA value. 

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Changes to Estate Plans with Increased $10M Exclusion

Posted on Thu, Apr 05, 2018

By: Nastassja Markham Coletta, JD, LLM

 

The new tax law provides opportunities for individuals to pass considerably more wealth on to their loved ones. Beginning in 2018, the federal exemption for gift, estate and generation-skipping transfer taxes is doubled from $5 million to $10 million (adjusted for inflation). For 2018, the inflation-adjusted exemption amount is expected to be $11.18 million. This means, on the federal level, a married couple can potentially leave over $22 million tax-free to their heirs. But, there is a catch.

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IRS Increases Standard Mileage Rates for 2018

Posted on Tue, Dec 19, 2017

Major tax changes are likely coming this week. The winners and losers will be debated long after the bill is signed by the President.  However, the IRS has issued increased standard mileage rates for 2018 and all will benefit from the changes.

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New Tax Strategy for Foreign Investors in U.S. Partnerships

Posted on Wed, Sep 27, 2017

By: Yi Yang, CPA, MBA and Ronald Wiener, JD

 

A recent United States Tax Court case may allow foreign partners to legally avoid paying U.S. income tax on certain income from sale of its interest in a partnership (including LLC’s taxed as a partnership) that engages in a trade or business in the United States.  They may even be able to get refunds if they paid taxes to the IRS on such income in prior years.  This is the principal takeaway from the Tax Court’s 50-page opinion involving the tax treatment of a foreign partner’s disposition of its entire interest in a U.S. partnership.

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