Increase In Failure To File Tax Return Penalty
President Obama signed the Trade Facilitation and Trade Enforcement Act of 2015 (H.R. 644). The comprehensive trade and customs bill includes an increase in the penalty for failure to file a tax return. Contact your tax consultant for more information.
Penalty
The failure to file penalty is five percent of […]
IRS Outsourcing Tax Collection
The IRS is gearing up to outsource some taxpayer collection accounts to private collection agencies. Legislation passed in 2015 directed the IRS to resume working with private collection agencies. The revived program is expected to operate in a similar manner to past ones, with emphasis on taxpayer protections.
Prior Outsourcing
Code Sec. 6306 permits […]
Are Weight Loss Programs Tax Deductible?
Only if it is a medical necessity. The IRS has ruled that uncompensated amounts paid to participate in a weight-loss program as treatment for a specific disease or diseases (including obesity) diagnosed by a physician are deductible expenses for medical care by your tax advisor. The deduction is subject to […]
New Tax Incentive Enhancements in 2016
Passage of the “Tax Extenders” undeniably provided one of the major headlines – and tax benefits – to come out of the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), signed into law on December 18, 2015. Although these tax extenders (over 50 of them in all) were […]
Cybersecurity Top Priority for IRS
The IRS has renewed their emphasis on cybersecurity, tax-related identity theft and customer service. Despite nearly constant attacks by cybercriminals, the IRS reported that taxpayer information remains secure. The agency also continued to intercept thousands of bogus returns and prevent the issuance of fraudulent refunds.
Cybersecurity
Concerns about cybersecurity and the confidentiality of […]
Audit Rates Up For Top Earners
Thanks in large part to cuts to the IRS’ budget, audit rates have dropped slightly for most individuals, but scrutiny by IRS auditors has risen for top earners, partnerships and S corporations.
The overall individual audit coverage rate continued its steady decline in recent years, the IRS reported. The audit coverage […]
Top 10 Tax Litigated Issues
The IRS’s cutbacks in taxpayer services could erode voluntary compliance with the tax laws and lower tax revenues, National Taxpayer Advocate Nina Olson has told Congress in her annual report. Olson also discussed tax-related identity theft, services to taxpayers living abroad, user fees, tax-exempt organizations, and identified the top 10 most […]
Government Takes Action To Increase Retirement Plans
Both Congress and the White House want to increase access, coverage and participation in retirement savings plans. A recent study indicates that a majority of American households may not be able to maintain their standard of living after retirement and that the current private pension system is not working […]
How To Arrange Installment Payments With The IRS
The IRS always urges taxpayers to pay their current tax liabilities when due, to avoid interest and penalties. Taxpayers who can’t pay the full amount are urged to pay as much as they can, for the same reason. But some taxpayers cannot pay their full tax liability by […]
2016 Tax Law Changes Require Revised Planning
The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) made permanent many popular but previously temporary tax breaks for individuals and businesses. The PATH Act also enhanced many incentives. These enhancements should not be overlooked in tax planning both for 2016 and future years. Some of the […]