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Orange County Tax Law Blog

IRS provides guidance on Foreign Tax Credit

The Tax Cuts and Jobs Act (TCJA) led to many changes in the tax code. One example: changes to how the Internal Revenue Service (IRS) considers taxes paid to foreign countries. In the past, the agency has generally allowed individuals and businesses to take a tax credit for certain taxes paid while overseas. Although still allowed, the TCJA impacted how this credit works.

Small businesses, these 3 steps can ease stress during an audit

When it comes to dealing with the Internal Revenue Service (IRS), the old saying “The Devil is in the details” holds true. Businesses that are flagged for a tax audit will find the details matter.

What details is the IRS looking for during an audit?

No joke: IRS may be knocking on your door

In a move that seems to provide fodder for countless “knock knock” jokes, the Internal Revenue Service (IRS) recently announced it will increase the use of in-person visits to ensure taxpayers are in compliance with their tax obligations. As a result, that person knocking on your door who says they are from the IRS may be telling the truth.

The agency stated it will send representatives to meet with taxpayers who have had compliance issues in the past. One of the main efforts will involve a focus on payroll tax compliance.

IRS investigates syndicated conservation easement transactions

The Internal Revenue Service (IRS) recently announced an increase in investigations of syndicated conservation easement transactions. The agency has stated it will focus on falsely inflated deductions.

What are syndicated conservation easements?

Can President Trump establish FL residence to save on taxes?

President Donald Trump recently announced he intends to change his residence from New York to Florida. The move is an attempt to save on state tax obligations. New York is notorious for its large state tax while Florida has none.

The attempt will likely result in an audit — and New York auditors are good at what they do. The auditors will look to establish that President Trump has not truly moved. If successful, President Trump could still find himself facing a large New York state tax bill. Even if the auditors are not successful, President Trump will likely find himself facing a long and costly court battle.

CA surprises Amazon merchants with state tax bills

The state of California just sent a Pennsylvania man a notice that he could owe over a million dollars in California state taxes. The tax bill is the result of a recent change in tax law that allows states to collect sales tax from those who sell goods to residents within their state even if they do not have operations in the state.

It is unlikely this man is alone. The state of California likely sent similar tax notifications to other Amazon merchants located throughout the country. Other states may follow the move and send retailers similar notifications.

Own cryptocurrency? Tips to avoid scrutiny from the IRS.

The Internal Revenue Service (IRS) has ramped up its efforts to track down taxpayers who have failed to report cryptocurrency. The most recent effort involved mass mailings to taxpayers who own the asset, whether they were required to report it on their tax filings. More on that effort is discussed in a previous post, available here.

Taxes & loan forgiveness: 3 things CA students need to know

Finding the right college is not easy. The number of universities and colleges throughout the country can be overwhelming. Each student must find the right university to meet their needs. Once they find this dream school, they must figure out how to cover the expenses that come with going to college. For many, this means taking out student loans.

Ideally, the student focuses on their studies, graduates, gets a job and repays these loans. But what happens if the college closes? That was the question thousands of California students were forced to ask themselves when the Department of Consumer Affairs announced Brightwood College was closing its campuses throughout California.

Itemized or standardized: Which tax deduction is right for you?

The Tax Cuts and Jobs Act (TCJA) was the biggest piece of tax reform in decades. Although it led to many notable changes, one that impacts almost every taxpayer involved an increase to the standardized deduction amount. Upon passage of this law, the standardized deduction rates were set at $12,200 for tax payers filing singly or married filing separately, $24,400 for those married filing jointly and $18,350 for those filing as head of household for the current filing year.