After consulting with the Governor, the President of the Senate and the Speaker of the house, the Utah State Tax Commission intends to extend the Tax Filing Deadline to July 15 to follow the federal government’s tax filing and payment action in response to COVID-19. For more information about the IRS decision to extend tax day to July 15th without … Read More
Tax Day Moved to July 15
This morning Treasury Secretary Steven Mnuchin tweeted that under President Trump’s direction, “we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.” Earlier this week, as a result of the coronavirus pandemic, the administration moved the payment date to July 15 … Read More
IRS Proposes New Rules for Deducting Meals and Entertainment
The Internal Revenue Service has released a set of proposed regulations for businesses to follow when deducting meals and entertainment, in response to the 2017 tax overhaul. The Tax Cuts and Jobs Act got rid of the deduction for any expenses related to activities typically considered to be for entertainment, amusement or recreation. It also restricted the deduction for expenses related to … Read More
5 Tax Planning Tips
Use these five tips to approach your 2019 income tax return with more confidence. Check back with us later next week, as more tips will be added soon! 1. Know if you will take the standard deduction It’s important to know whether you expect to take the standard deduction before making decisions on year-end spending that would normally generate itemized … Read More
Accountants to rely more on big data in 2020
CPA firms are embracing data science and analytics to improve performance at their companies, leveraging the technology to improve their organization’s data governance and analysis capabilities. Accountants will need to continue to develop the necessary skills to pace with technology and act as strategic business partners with their clients. It is expected that the number of companies deploying big data … Read More
IRS Sending Earned Income Tax Credit (EITC) Warning Letters
Preparers who’ve submitted returns with sketchy claims for the Earned Income Tax Credit, the Child Tax Credit Tax/Additional Child Tax Credit, and the American Opportunity tax Credit will soon receive IRS Letter 5025. This letter is designed to inquire “about questionable tax returns” and let preparers know that they have been identified, and they must meet EITC due-diligence requirements. During … Read More
Hobby Losses: How to Not Get Trapped
Horse breeding losses aren’t always hit by the hobby loss disallowance. A man who bred, trained, and showed horses has reported his losses since 1997. So how did he do it, and what can you do? Be an expert in the field Have a plan (in this case it was to increase brand recognition) Keep good records Expand or restrict … Read More
Year End Tax Planning
Individual Tax Planning When doing your individual tax planning, look ahead to the overall impact on 2019 and 2020. The end gamed is to reduce your taxes over both years. Most people, but not all, will benefit by accelerating write-offs from 2020 into 2019 while deferring taxable income. Taxpayers who claim itemized deductions have flexibility in shifting write-offs, why can … Read More
New Version of SSN Scam
The IRS has sent out a tip related to the latest twist in Social Security Numbers scams. Scammers claiming to be able to suspend or cancel the victim’s SSN is yet another attempt by con artists to frighten people into returning robocalls. (details below.) Scammers may mention overdue taxes or threaten to cancel your SSN. If you receive a call … Read More
New Rules for Cryptocurrency Investors
In a new ruling, more guidance will be given to individuals on how to report income from their cryptocurrency. The guidance that has been released applies tax rules to cryptocurrency investments. Among these rules, taxpayers must track how much they bought in cryptocurrency so it can be determined how much tax is owed when they sell coins. They must also … Read More