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Inherited IRAs
Individual Retirement Accounts are considered to be exempt retirement funds within the meaning of the federal bankruptcy law. However, in a unanimous decision, the Supreme Court recently held that...
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Preventing Fraud in a Small Business
I’ve recently been asked to teach a class on ethics in our accounting program at Tarleton State University. We will start August 25, not a lot of time to prepare; however, I have done a little...
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New Form 1023-EZ
On July 1, 2014, the IRS introduced a new, shorter application form for smaller charities to use to apply for 501(c)(3) tax-exempt status more easily. The new Form 1023-EZ is only three pages long,...
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Self-employed Taxpayers Who Owe Taxes
In my practice, I have frequently served self-employed clients who have not made ANY estimated tax payments or who have not made sufficiently large estimated tax payments throughout the year and are...
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Married Filing Joint vs. Married Filing Separately
I’ve always believed married filing separately was never desirable because the tax rates are higher and many tax benefits are not available to those who file separately. However, today when I was...
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Per Diem Rates for Fiscal Year 2015
The IRS has released the per diem rates taxpayers can use to reimburse employees for expenses incurred during travel after September 30, 2014. The low-cost area per diem increases from $170 to $172 and...
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Shared Responsibility Payment
Effective for the 2014 tax year, the Affordable Care Act requires all individuals to carry health insurance or make a shared responsibility payment, unless they are exempt. Employer-provided health...
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Section 179 Expensing Election in 2014
This time of year, smart business owners begin their year-end tax planning. During the last ten years, Congress has allowed a large Section 179 election for businesses. Under the provisions of Section...
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Installment Agreements for Payroll Taxes
If your small business is delinquent on payroll taxes and having problems catching up, you may qualify for an In-Business Trust Fund Express Installment Agreement (IBTF-Express IA). If you owe $25,000...
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Expired Tax Provisions Receive a Retroactive “Stay” from Executioner
Congress passed, and the president signed into law, the Tax Increase Prevention Act of 2014, which has given a retroactive one year “stay” to many popular tax deductions for both individuals and...
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Weight Watchers Update
I met my goal weight of 133 a year ago today. It was a 50 pound weight loss! I attained lifetime status with Weight Watchers six weeks after attaining my goal weight and maintaining the weight loss....
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Things to Know for Tax Year 2014
The IRS announced last week they would be ready to accept 2014 tax returns on January 20, 2015. This is early in the year considering there have been several changes to the law that will affect 2014...
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Income Received For Serving as a Host Family
Question: Are stipends taxable income for Federal income tax purposes? The taxpayer has been serving as a host family for a foreign exchange student and has received monthly payments during 2014....
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ABLE Accounts for Disabled Individuals
The Tax Increase Prevention Act of 2014 (TIPA), signed into law by the President on December 19, 2014, provides for a new type of tax-advantaged savings program to help meet the financial needs of...
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Love Letter from the IRS?
What happens if you receive correspondence from the Internal Revenue Service? In my experience, most taxpayers either panic or they ignore it. The very worst thing you can do is ignore the letter!...
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SEP Plans
Many times I’m asked, “How can I reduce my tax bill?” One of the best ways for small business owners to reduce their taxes is to create and contribute to a retirement plan. There are many low cost...
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Tax Return For A Deceased Taxpayer
What are the income tax consequences if Grandpa dies on June 30, 2014? If a taxpayer dies during the tax year, the IRS still expects a tax return to be filed on behalf of the decedent. In general, it...
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Social Security Benefits
Nearing retirement age? Not sure when to start receiving your social security? These are common questions among Americans in their 60s. Unfortunately, due to insufficient savings, in 2014 Social...
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Social Security Benefits for Widows & Widowers
What happens to Social Security benefits when a spouse dies? Let’s use an example of Bill and Ann Jones. Bill and Ann are both receiving Social Security benefits when Bill dies suddenly of a heart...
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Tax Deductible Expenses
I’m often asked if a particular expense is tax deductible. Everyone is looking for a deduction! In general, only expenses incurred in a trade or business (IRC §162) or those incurred in the production...
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