Today, is the last day to file your tax return or request an extension to avoid a late filing penalty. And no matter how close you are to the wire – if your envelope is postmarked April 17, the IRS will consider your return on time.
Federal tax returns for the 2017 tax year are due next week on April 17. While it is tax time right now, an IRS audit can happen any time throughout the year. Still, there are steps you can take to lessen the risk of facing an audit.
Since 1913, people have been able to deduct state and local taxes, known as SALT, on their federal income tax returns. In essence, this means that the federal government through this reduction in taxes owed indirectly subsidizes state and local tax revenues. This has been an accepted part of our federal tax code for decades, but in 2018, it will be significantly capped.
I regularly represent people in the Irvine, Mission Viejo and Laguna Niguel areas of California who are liable for federal taxes because their spouses mistakenly or intentionally entered inaccurate information on joint returns — or failed to report information that should have been entered — that left my clients surprised to be holding the bag for the tax bill through no fault of their own. The IRS allows tax relief to the “innocent spouse” in some of these circumstances.
Tax season is upon us and although some residents find the process frustrating as it is, you may face some extra complications this year.
Charitable donations can provide a method to lower one’s tax obligations while also bettering the community. It is wise for those who reap these rewards to keep records of the donation to support the deduction in the event of an audit.
One of the scariest things in life is to get a threatening letter from the Internal Revenue Service. The federal government knows that the more vague and secretive it is in its letter to you, the more likely you are to be frightened.
About a decade ago, the IRS launched its investigation into offshore accounts with a John Doe summons of UBS. This year, it used a similar John Doe summons to request more information from Coinbase.
Our world is, as you know, an increasingly electronic one. Our medical records are digital, as are banking transactions, bill paying, vital statistics information (like birth certificates, addresses, social security numbers), credit history and more.
As this year winds to a close, many of us are focused on such issues as what to make for Thanksgiving, and which presents to buy for Christmas. There are also important financial issues that, while they might not necessarily be first in our minds, need attention as well. Among these are making decisions about medical and life insurance, and health savings accounts for next year. There are also last-minute tax issues to consider that could have a huge impact on 2018’s tax bill.