It can be hard to keep up with all the changes the IRS, so we will list some more things you should take note of.
- High-tax states are watching for snowbirds claiming dubious residency. Residency audits are used to examine the returns from part-year residents. To survive the residency audit be sure to keep crucial documents such as bank records, credit card receipts, utility bills, and travel documents.
- Starting in 2020, income levels for Medicare will be indexed for inflation.
- Not all inheritances are tax-free because distributions from a decendent are income to the beneficiary.
- A preparer convicted of filing false returns for clients owes restitution.
- Combating individual tax identity theft is paying off, reported cases were down 71%. Despite this improvement, the increasing growth of business tax identity theft remains a concern.
For more information go to https://www.kiplinger.com/