Tag: IRS
Tax issues when operating a business as a married couple
Operating one's own business offers the advantage of employing family members, but it's important to understand the specific employment tax requirements that apply to family employees, which can differ from those for other employees. Here are key considerations outlined by...
Law changes to IRS Code Section 174 create uncertainty around R&D deductions
The Tax Cuts and Jobs Act of 2017 introduced several amendments to the Internal Revenue Code, including a revision to Section 174. This section, originally established in 1954 to permit businesses to deduct expenses related to research and experimental activities,...
IRS tax rules for self-rental properties
When a taxpayer both owns and materially participates in an operating business while also owning the real estate rented to that business, this scenario is defined as "Self-Rental" according to IRC, Section 469. The taxation of self-rental property involves intricate...
Caretakers may exclude certain Medicaid waiver payments from income
Family members who care for a disabled relative in their shared home and receive Medicaid payments for this care may qualify to exclude certain Medicaid waiver payments from their gross income calculation. IRS Notice 2014-7 offers guidance on how these...
“Staked” cryptocurrency value may no longer be taxed as income
A recent settlement offered to taxpayers who filed a suit against the IRS may indicate a change in how staked cryptocurrencies are taxed. Previously, staking income was treated similarly to interest income. Many crypto exchanges were handling it like that...
IRS offers ways to determine Reasonable Compensation in Not-for-Profit and For-Profit entities
The IRS routinely encounters contentious issues in business tax audits, particularly regarding the appropriateness of compensation paid to owners/employees. For example: Businesses that compensate employees who are also shareholders may inadvertently classify payments that should be dividends as compensation. This...
Request a copy of filed 1040 or 1040 transcript with these IRS forms
Filers may seek a copy of a previously filed 1040 federal tax return in two ways: Request a copy of the tax return as filed (Form 4506). This request will provide an exact copy of what filed and the return...
Take five minutes to secure your tax return from identity theft
The IRS has provided a new way taxpayers can help prevent a tax return being filed under their name and SSN. The recently expanded Identity Protection PIN Opt-In Program provides a six-digit code known only to the taxpayer and to the IRS....
Tax credit can help employers hiring new workers
The IRS encourages employers to utilize the Work Opportunity Tax Credit (WOTC) to incentivize hiring workers facing significant employment barriers. The credit supports employers who hire individuals from specified categories, such as long-term unemployment recipients and veterans. Recent legislative changes...
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