President Donald Trump’s administration touted the Tax Cuts and Jobs Act (TCJA) as a major break for taxpayers. The administration stated the law, the biggest reform to the tax code in decades, would lead to big tax savings. For some individuals and businesses, it did. For others, not so much. Regardless of the impact, one concern connected to the TCJA and the many changes it resulted in within the tax code could soon become a reality: audits may increase.
Tax debt can quickly become unmanageable. Three tips for those who are struggling to manage this form of debt include:
The Internal Revenue Service (IRS) recently conducted a survey of taxpayers. The survey, tilted the Comprehensive Taxpayer Attitude Survey (CTAS), focused on taxpayer’s feelings regarding their tax obligations and included a review of 2,008 responses from the general public.
A recent report finds the rate of audits conducted by the Internal Revenue Service (IRS) is on the decline. This is particularly surprising when taking into account the tax gap, or difference between the amount of taxes the Internal Revenue Service (IRS) should have collected and the amount actually collected from taxpayers is 82%.
When people hear about the Internal Revenue Service (IRS), they often think of taxes and audits. Occasionally, it is not the taxpayers that get audited. Occasionally, the IRS gets audited.
The IRS did a commendable job of starting the 2019 tax season on time. Generally, one of the peaks in the season occurs right away with those expecting refunds wasting no time to get their money back.
Last year, the IRS audited about 1 million tax returns. While overall the 0.5 percent rate is low, the rate increases for high income earners. On the other end of the spectrum, those who claim an Earned Income Tax Credit (EITC) are also more likely to get an audit notice.
Over the summer, the IRS published final regulations with charitable contribution substantiation and reporting rules. You should now keep a record for all cash gifts that you will use as a tax deduction – a letter from the organization or a bank statement is usually enough.
The proposed change affects partnership tax returns when the IRS makes changes or corrections during a federal tax audit. The new step requires the partnership to notify the California Franchise Tax Board of the updates. S.B. 274 is on desk of Governor Jerry Brown after passing the Senate.
The sharing economy has allowed more people to add side gigs. It’s also provides others enough income to leave traditional 9-to-5 positions. Understanding the tax implications, however, is crucial.