Tax Planning
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Some FBAR Filers Have One Extended Deadline Remaining
Most US citizens, entities, and resident aliens with a foreign bank or financial account have seen their IRS reporting deadline come and go. But for some taxpayers, one more deadline remains to file their 2019 Report of Foreign Bank and Financial Accounts, or FBAR. Most FBAR filings were due by October 31, 2020. The bulk…
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IRS Announces 2021 Income Ranges for IRA, Saver’s Credit Eligibility, and More
Taxpayers trying to plan their 2021 deductible retirement plan contributions will be happy to learn that the Internal Revenue Service this week published Notice 2020-79. The IRS says the notice includes “income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the…
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IRS Reminds Taxpayers About Extension Deadline
The IRS suggests electronic filing and payment options. More than 150 million tax returns have been sent to the Internal Revenue Service, but many taxpayers still need to file for tax year 2019. That’s why the IRS recently reminded taxpayers that the extension deadline is less than a month away. (Those serving in combat zones…
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Aug. 31 is the Deadline to Return Distributions to Retirement Accounts
IRA owners, beneficiaries and workplace retirement plan participants who got a Required Minimum Distribution (RMD) this year have until Aug. 31 to rollover or repay the distribution in order to avoid being taxed on the payments. The Coronavirus Aid, Relief, and Economic Security Act – also known as the CARES Act – waives RMDs during…
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Truckers Reminded to e-File Highway Use Tax Return by August Deadline
The Internal Revenue Service is reminding owners of most heavy highway vehicles to timely file their Form 2290, Heavy Highway Vehicle Use Tax Return. The highway use tax applies to those motor vehicles with a taxable gross weight of 55,000 pounds or more. Generally, this includes large trucks, truck tractors and buses. The tax is…
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IRS Not Pushing Back July 15 Deadline
The Internal Revenue Service has some bad news for taxpayers hoping that the tax filing and payment deadlines would get pushed back again. In a recent IRS Newswire press release, the agency said taxpayers should either file their tax return or an extension by July 15. What is the deadline for taxpayers who request an…
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Standard Mileage Rates Tweaked for 2020
Updated January 15, 2020: We incorrectly listed the standard mileage rate for business use as 5 cents per mile. The Internal Revenue Service has set the optional standard mileage rates for 2020. These rates are used to figure the deductible costs of operating a vehicle for business, charitable, medical or moving purposes. Beginning Jan. 1,…
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New Downloadable Tool Helps Small Business with Employee Withholding
The Internal Revenue Service has come up with a new online tool that’s designed to help employers—especially those in small business—easily determine the correct amount of income tax to withhold from workers’ pay. It’s called the Income Tax Withholding Assistant for Employers, and the new spreadsheet-based tool is designed to help employers transition to the…
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IRS to Self-Employed Taxpayers: Use the Tax Withholding Estimator
According to the IRS, self-employed taxpayers should use the Tax Withholding Estimator when they perform their next “paycheck checkup.” IR-2019-149 is the latest press release advertising the Tax Withholding Estimator, the agency’s newest online tool: “The estimator is an expanded, mobile-friendly online tool that replaced the Withholding Calculator, which since 2001 had offered workers an…
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IRS Waives Estimated Tax Penalty for Eligible 2018 Filers
For some taxpayers paying estimated taxes who have filed their 2018 tax returns there’s a little bit of bad news—and some good news. The bad news is they failed to claim the special waiver that would have spared them from the estimated tax penalty mandated when withholding and estimated tax payments fell short of their…