An Individual Taxpayer Identification Number (ITIN) is defined by the Internal Revenue Service (IRS) as a tax processing number assigned by the IRS to taxpayers who are not eligible to receive a Social Security Number (SSN). These numbers are helpful for those who require a federal tax identification number but cannot get an SSN. Although intended only for tax identification purposes, it is not uncommon for schools and banks to also refer to these numbers for identification purposes.
The Tax Cuts and Jobs Act (TCJA) led to a limit on the deduction for state and local tax (SALT) payments. The law currently caps the deduction at $10,000.
Recent tax reform resulted in an increase in the standardized reduction. As a result, taxpayers need to carefully review potential deductions before deciding if itemization is in their best interest. One item taxpayers may not take into consideration which could result in deductions: health aids.
The Internal Revenue Service (IRS) is not known for providing clear and easy to follow information. Unfortunately, the agency’s recent mailings to those who hold digital currencies provides yet another example of the confusing and misleading information the agency can provide.
A provision within the Tax Cuts and Jobs Act (TCJA) limited the State and Local Tax (SALT) deduction. This limit had a disproportionate impact on high tax states like California and New York. As a result, tax professionals expect residents in these high tax states to consider moving to other, lower tax states.
Bitcoin has jumped in value in recent months. The digital currency reported a jump in value three times that of the reported numbers in 2018, a “record-breaking” second quarter. With this in mind, it may not come as a surprise that the Internal Revenue Service (IRS) just announced it is sending out letters to over 10,000 taxpayers suspected of failing to report digital assets like Bitcoin.
Residents in high tax states like California, Connecticut and New York have voiced frustration over some provisions included within the new tax law. One specific provision in the Tax Cuts and Jobs Act (TJCA) that hit taxpayers who reside within these states hard was the state and local tax (SALT) limitation.
Aretha Franklin’s estate is in the middle of a fight between multiple heirs and the Internal Revenue Service (IRS). The fight brings to mind the old saying: “in this world nothing can be said to be certain, except death and taxes.” When these two certainties collide, those who are left behind can find themselves expected to navigate quite a mess.
The IRS paid out a record amount last year in financial awards to tipsters who told the agency about others’ failure to pay taxes.
If you are a Californian with a high income, the $10,000 cap placed by the federal tax overhaul on state-and-local tax deductibility is about to hit you for the first time.