Airbnb and other similiar sites have become a popular way for real estate owners in tourist spots to make some extra cash by renting out their spaces. Many property owners could benefit if QBI made it possible for these side hustles to turn into businesses. This would result in property owners gaining a large tax deduction. To allow for these … Read More
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. 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, … Read More
Basics of the Utah Probate Process
In this article we will discuss the Utah probate: what it is, who needs it, and the steps that you will need to take to make the process as simple as possible. But first, what is a probate? “Utah Probate is the court process of wrapping up the affairs of a person who has died, paying the debts, and transferring … Read More
Learn about Important Changes to the IRS
As a result of the Taxpayer First Act some changes have been made to the IRS that may affect you. Some of these changes include: The IRS is prohibited from turning over tax debts of low-income individuals to private tax-debt collectors. However, taxpayers will get notice when a third party, such as a bank or employer, is contacted. Ideas to … Read More
How to Check Your Tax Witholding
With the new IRS Tax Witholding Estimator employees can ensure that their employers are witholding the correct amount from their paychecks. A “Paycheck Checkup” should be done every year to prevent an unexpected tax bill or penalty. To use the estimator you will need your most recent pay stubs and income tax return. Simply go to https://www.irs.gov/paycheck-checkup and hit “Use … Read More
Ingenious Scam Targets Taxpayers
Crooks have tried all sorts of e-mails scams, but almost everyone has figured out that the IRS does not send out notices by e-mail. So crooks have changed their tactics. Now, there are reports of taxpayers receiving by mail (or email) fake notices requiring immediate payment to a P.O. Box. The P.O. Boxes are located in cities where the IRS … Read More
IRS Sending Letters Based on Cryptocurrency
In 2017 the IRS won its fight with Coinbase, a cryptocurrency exchange, and recieved information on customers who traded cryptocurrency. On July 26th the IRS announced that they’re sending letters to individuals who may need to file or amend their returns to report cryptocurrency transactions. The IRS notice states: The Internal Revenue Service has begun sending letters to taxpayers with … Read More
Close to Home: Sandy, Utah Resident convicted of Tax Evasion
Former attorney and former IRS employee Craig P. Orrock has been convicted of tax evasion and obstructing internal revenue laws. According to court documents and evidence, starting in the early 1990s Orrock, currently of Sandy, Utah, evaded payment of federal income taxes and obstructed IRs efforts to collect those taxes. He filed federal individual income tax returns for the years … Read More
A Preparer’s Fraud Gives IRS More Leeway to Go After the Taxpayer: IRS has unlimited time to assess tax
A preparer’s fraud gives the IRS unlimited time to assess tax and penalties. The IRS has 3 years to make adjustments to your income tax return; however, the three- year statute of limitations doesn’t apply in this situation. Even though the tax preparer (not the tax payer) was responsible for issuing a fraudulent income tax return. The Tax Court addressed … Read More
New Tax Return Form for Seniors: The 1040-SR
The IRS has released a draft for the new tax return form for seniors, the 1040-SR. The Bipartisan Budget Act of 2018 was signed into law on February 9, 2018 and required that the IRS create and publish Form 1040-SR to make filing simpler for individuals 65 and older. To qualify to use the 1040-SR you must be over the … Read More