5 Things you Should Know about the IRS

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.

  1. 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.
  2. Starting in 2020, income levels for Medicare will be indexed for inflation.
  3. Not all inheritances are tax-free because distributions from a decendent are income to the beneficiary.
  4. A preparer convicted of filing false returns for clients owes restitution.
  5. 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.

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Marci Romney5 Things you Should Know about the IRS