The Internal Revenue Service today continued the Dirty Dozen series with a warning on day seven about trusting tax advice on social media that can lure otherwise honest taxpayers and tax professionals into compromising tax situations.

Social media can circulate inaccurate or misleading tax information, and the IRS has recently seen several examples. These can involve common tax documents like Form W-2 or more obscure ones, like Form 8944 that's aimed at a very limited, specialized group. Both schemes encourage people to submit false, inaccurate information in hopes of getting a refund.

"There are many ways to get good tax information, including from a trusted tax professional, tax software and IRS.gov. But people should be incredibly wary about following advice being shared on social media," said IRS Commissioner Danny Werfel. "The IRS continues to see a lot of inaccurate information that could get well-meaning taxpayers in trouble. People should remember that there is no secret way to fill out a form and simply get a larger refund that they aren't entitled to. Remember, if it sounds too good to be true, it probably is."

Fraudulent form filing and bad advice on social media are part of the 2023 IRS annual Dirty Dozen campaign – a list of 12 scams and schemes that put taxpayers and the tax professional community at risk of losing money, personal information, data and more.

Working together as the Security Summit, the IRS, state tax agencies and the nation's tax industry have taken numerous steps since 2015 to warn people about common scams and schemes during tax season and beyond, including identity theft schemes. The Security Summit initiative is committed to protecting taxpayers, businesses and the tax system against fraud and identity theft.

Some items on this year's Dirty Dozen list are new, while others are re-emerging. While the Dirty Dozen is not a legal document or a formal listing of agency enforcement priorities, it is intended to alert taxpayers and the tax professional community about various scams and schemes.

Trending on social media: Fraudulent form filing and bad advice

Social media can connect people and information from all over the world. Unfortunately, sometimes people provide bad advice that can lure good taxpayers into trouble. The IRS warns taxpayers to be wary of trusting internet advice, whether it's a fraudulent tactic promoted by scammers or it's patently false tax-related scheme trending across popular social media platforms.

The IRS is aware of various filing season hashtags and social media topics leading to inaccurate and potentially fraudulent information. The central theme involves people trying to use legitimate tax forms for the wrong reason. Here are just two of the recent schemes circulating online:

Form 8944 fraud

A recent example of bad advice circulating on social media that could lead to fraudulent form filing involves Form 8944, Preparer e-file Hardship Waiver Request. There are wildly inaccurate suggestions being made about this form. Posts claim that Form 8944 can be used by taxpayers to receive a refund from the IRS, even if the taxpayer has a balance due. This is false information. Form 8944 is for tax professional use only.

While Form 8944 is a legitimate IRS tax form, it's intended for a targeted group of tax return preparers who are requesting a waiver so they can file tax returns on paper instead of electronically. It is not in any way a form the average taxpayer can use to avoid tax bills. Taxpayers who intentionally file forms with false or fraudulent information can face serious consequences, including potentially civil and criminal penalties.

Form W-2 fraud

This scheme, which is circulating on social media, encourages people to use tax software to manually fill out Form W-2, Wage and Tax Statement, and include false income information. In this W-2 scheme, scam artists suggest people make up large income and withholding figures as well as the employer its coming from. Scam artists then instruct people to file the bogus tax return electronically in hopes of getting a substantial refund.

The IRS, along with the Security Summit partners in the tax industry and the states, are actively watching for this scheme. In addition, the IRS works with payroll companies and large employers – as well as the Social Security Administration – to verify W-2 information.

The IRS and Summit partners warn people not to fall for this scam. Taxpayers who knowingly file fraudulent tax returns potentially face significant civil and criminal penalties.

How taxpayers can verify information

Keep in mind: If something sounds too good to be true, it probably is.

• IRS.gov has a forms repository with legitimate and detailed instructions for taxpayers on how to fill out the forms properly.
• Use IRS.gov, official IRS social media accounts, or other government sites to fact check information.

Make a difference: Report fraud, scams and schemes

As part of the Dirty Dozen awareness effort, the IRS encourages people to report individuals who promote improper and abusive tax schemes as well as tax return preparers who deliberately prepare improper returns.

To report an abusive tax scheme or a tax return preparer, people should mail or fax a completed Form 14242, Report Suspected Abusive Tax Promotions or PreparersPDF and any supporting materials to the IRS Lead Development Center in the Office of Promoter Investigations.

Mail:

Internal Revenue Service Lead Development Center
Stop MS5040
24000 Avila Road
Laguna Niguel, CA 92677-3405
Fax: 877-477-9135

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : IRS  

Once people complete and file their tax return, many of them eagerly await any refund they may be owed. No matter how a taxpayer plans to use their tax refund, knowing fact from fiction can help manage expectations as they wait for their money. This tip dispels some federal tax refund myths that many people believe are fact, but they are pure fiction.

Myth: Calling the IRS, a tax software provider or a tax professional will provide a more accurate refund date

Many people think talking to the IRS or to their tax software provider or tax professional is the best way to find out when they will get their refund. The best way to check the status of a refund is through the Where's My Refund? tool or the IRS2Go app.

Taxpayers can also call the automated refund hotline at 800-829-1954 to get their refund status. This hotline has the same information as Where's My Refund? There is no need to call the IRS unless "Where's My Refund?" says to do so.

Myth: Where's My Refund? must be wrong because there's no deposit date yet

Updates to Where's My Refund" ‎and to the IRS2Go mobile app are made once a day, usually overnight. Even though the IRS issues most refunds within 21 days, it's possible a refund may take longer. If the IRS needs more information to process a tax return, the agency will contact the taxpayer by mail. Taxpayers should also consider the time it takes for the banks to post the refund to the taxpayer's account. People waiting for a refund in the mail should plan for extra time.

Myth: Where's My Refund? must be wrong because the refund amount is less than expected

There are several factors that could cause a tax refund to be less than expected. The IRS will mail the taxpayer a letter of explanation if it makes adjustments. Some taxpayers may also receive a letter from the Department of Treasury's Bureau of the Fiscal Service if their refund was reduced to offset certain financial obligations. Before calling, taxpayers should check the Where's My Refund? tool or wait for the letter to understand why the change occurred. This can help taxpayers know how to respond.

Myth: Getting a refund this year means there's no need to adjust withholding for tax year 2023

To avoid a surprise next year, taxpayers should make changes now. One way to do this is to adjust their tax withholding with their employer. The Tax Withholding Estimator tool can help taxpayers determine if their employer is withholding the right amount.

Taxpayers who experience a life event such as marriage, divorce, or the birth or adoption of a child, or are no longer able to claim a person as a dependent, are encouraged to check their withholding. Taxpayers can use the results from the Tax Withholding Estimator to complete a new Form W-4, Employee's Withholding Certificate, and submit it to their employer as soon as possible. Withholding takes place throughout the year, so it's better to take this step as soon as possible.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source: IRS     

If you run a business, you know that you need to support expenses with detailed records. To be deductible, every expense on your tax return might have to be defended if your company is subject to an audit. Plus, failing to operate in a businesslike manner, complete with good records, might lead the IRS to deem the activity a hobby rather than a business, in which case your deductions may be limited or disallowed.

While there’s no one right way to keep business records, some types of expenses do require more details. For example, records relating to automobile, travel, meal and home-office costs are subject to special requirements or limitations.

An activity must be engaged in for profit

For a business expense to be deductible, the taxpayer must establish that the primary objective of the activity is making a profit. The expense must also be substantiated and be an “ordinary and necessary” business expense. In one court case (Gaston v. IRS, 2021), a taxpayer claimed deductions that created a loss, which she used to shelter other income from tax.

She engaged in various activities that included acting in the entertainment industry and selling jewelry. The IRS found her activities were more like hobbies than businesses engaged in for profit, and it disallowed her deductions.

The taxpayer did, however, have some success when she took her case to the U.S. Tax Court. The court found that she was engaged in the business of acting for profit during the years at issue, though not all of the claimed expenses were ordinary and necessary business expenses. The court allowed deductions for expenses including headshots, casting agency fees and lessons to enhance the taxpayer’s acting skills. But the court disallowed other deductions because it found insufficient evidence “to firmly establish a connection” between the expenses and the business.

In addition, the court found that that taxpayer didn’t prove that she engaged in her jewelry sales activity for profit. She didn’t operate it in a businesslike manner, spend sufficient time on it or seek out expertise in the jewelry industry. Therefore, all deductions related to that activity were disallowed.

Proper records are required

In another case (Elbasha v. IRS, 2022), a taxpayer worked as a contract emergency room doctor at a medical center. He also started a business to provide emergency room physicians overseas. On Schedule C of his tax return, he deducted expenses related to his home office, travel, driving, continuing education, cost of goods sold and interest. The IRS disallowed most of the deductions.

In court, the doctor used charts to illustrate his expenses but didn’t provide receipts or other substantiation showing the expenses were actually paid. He also failed to account for the portion of expenses attributable to personal activity.

The U.S. Tax Court disallowed the deductions, stating that his charts weren’t enough and didn’t substantiate that the expenses were ordinary and necessary in his business. It noted that “even an otherwise deductible expense may be denied without sufficient substantiation.” The doctor also didn’t qualify to take home office deductions because he didn’t prove it was his principal place of business.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : Thomson Reuter      

There are about 57 million small businesses and self-employed taxpayers in the United States, including:

• Corporations and partnerships with assets less than $10 million
• Sole proprietors
• Independent contractors
• Members of a partnership that carries on a trade or business
• Others in business for themselves, even if the business is part-time
• Gig workers (i.e., Uber/Lyft drivers, owners of Airbnb rentals, delivery services, etc.)

The Taxpayer Advocate Service is sharing the following information with small business taxpayers to:

• Help you meet their filing requirements
• Share resources for information and tax return preparation
• Help you file accurate returns

Small Business Filing Requirements

Generally, the federal tax forms you will need to file vary depending on the type of business:

Recordkeeping

As a small business, you may have many different types of returns that are due, and many different types of deductions. As a busy small business owner, it’s important to put a user-friendly recordkeeping system in place.

You may need to substantiate income and deductions. Good records can assist you in preparing financial records, keeping track of property and deductions and so much more. Good records can also assist you in knowing exactly where to target funding and reducing expenditures to optimize profit. Your recordkeeping should keep track of:

• Gross Receipts
• Inventory, including any merchandise withdrawn from sale for personal use
• Expenses

For more helpful information for small businesses, see Tax Tip: Small business tax highlights, which addresses key components of small business ownership including:

• The general types of business taxes;
• The importance of making estimated tax payments if required;
• Payment options; and
• Ten Federal Tax Tips to help small business owners:

1. Know your limitations and know when you need to ask a professional for help
2. Keep adequate records
3. Separate your personal and business finances
4. Correctly classify your business
5. Manage payroll
6. Subscribe to e-News for Small Businesses
7. Research small business tax deductions
8. Self-employment tax deduction
9. Make your tax payments timely
10. For faster processing, file your returns electronically

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : TAS     

Getting a letter from the IRS can make some taxpayers nervous – but there's no need to panic. The IRS sends notices and letters when it needs to ask a question about a taxpayer's tax return, let them know about a change to their account or request a payment.

When an IRS letter or notice arrives in the mail, here's what taxpayers should do:

Read the letter carefully. Most IRS letters and notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes any steps the taxpayer needs to take. A notice may reference changes to a taxpayer's account, taxes owed, a payment request or a specific issue on a tax return. Taking prompt action could minimize additional interest and penalty charges.

Review the information. If a letter is about a changed or corrected tax return, the taxpayer should review the information and compare it with the original return. If the taxpayer agrees, they should make notes about the corrections on their personal copy of the tax return and keep it for their records. Typically, a taxpayer will need to act only if they don't agree with the information, if the IRS asked for more information or if they have a balance due.

Take any requested action, including making a payment. The IRS and authorized private debt collection agencies do send letters by mail. Taxpayers can also view digital copies of select IRS notices by logging into their IRS Online Account. The IRS offers several options to help taxpayers who are struggling to pay a tax bill.

Reply only if instructed to do so. Taxpayers don't need to reply to a notice unless specifically told to do so. There is usually no need to call the IRS. If a taxpayer does need to call the IRS, they should use the number in the upper right-hand corner of the notice and have a copy of their tax return and letter.

Let the IRS know of a disputed notice. If a taxpayer doesn't agree with the IRS, they should follow the instructions in the notice to dispute what the notice says. The taxpayer should include information and documents for the IRS to review when considering the dispute.

Keep the letter or notice for their records. Taxpayers should keep notices or letters they receive from the IRS. These include adjustment notices when the IRS takes action on a taxpayer's account. Taxpayers should keep records for three years from the date they filed the tax return.

Watch for scams. The IRS will never contact a taxpayer using social media or text message. The first contact from the IRS usually comes in the mail. Taxpayers who are unsure whether they owe money to the IRS can view their tax account information on IRS.gov.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : Thomson Reuter      

The Internal Revenue Service today continued the Dirty Dozen series by cautioning taxpayers to avoid unscrupulous tax return preparers and provided important tips to find the right tax professional.

People should be careful of shady tax professionals and watch for common warning signs, including charging a fee based on the size of the refund. Some "ghost" tax preparers refuse to sign the tax return or ask people to sign a blank return. These are all common warning signs, and people should always rely on a trusted tax professional, and the IRS offers a variety of resources to help.

"Most tax professionals offer excellent advice and can really help people navigate complex tax issues. But we continue to see instances where taxpayers are "ghosted" by unscrupulous tax preparers with bad advice who quickly disappear," said IRS Commissioner Danny Werfel. "We encourage taxpayers to check out the tools and resources available to them to ensure they find the right tax professional for their needs."

Unscrupulous tax return preparers mark day six of the IRS' annual Dirty Dozen campaign – a list of 12 scams and schemes that put taxpayers and the tax professional community at risk of losing money, personal information, data and more. Some items on the Dirty Dozen are new, while others are re-emerging. While the Dirty Dozen is not a legal document or a formal listing of agency enforcement priorities, it is intended to alert taxpayers and the tax professional community about various scams and schemes.

Working together as the Security Summit, the IRS, state tax agencies and the nation's tax industry, including tax professionals, have taken numerous steps since 2015 to warn people about common scams and schemes during tax season and beyond that can increase the risk of identity theft. The Security Summit initiative is committed to protecting taxpayers, businesses and the tax system from scammers and identity thieves.

Choose carefully: Check credentials of tax return preparers

Taxpayers should choose a tax preparer as carefully as they choose a doctor or lawyer. After all, the tax preparer is entrusted with sensitive personal and financial information. While there are different types of tax preparers with varying levels of credentials and qualifications, there are constants when it comes to finding a preparer:

• A taxpayer's individual needs will determine which kind of preparer is best for them.
• Taxpayers are ultimately responsible for all the information on their income tax return, regardless of who prepares the return.
• Tax professionals are required to have an IRS Preparer Tax Identification Number (PTIN) to prepare federal tax returns.

The IRS offers resources for taxpayers to educate themselves on types of preparers, representation rights, as well as a Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This directory can help taxpayers find a return preparer with specific qualifications to fit their needs. The directory is searchable and sortable.

Don't get ghosted: Avoid shady or self-serving tax professionals

Most tax return preparers provide outstanding and professional service. Unfortunately, there are also some unethical tax preparers that should be avoided at all costs.

A major red flag or bad sign is when the tax preparer is unwilling to sign the dotted line. Avoid these "ghost" preparers, who will prepare a tax return but refuse to sign or include their IRS Preparer Tax Identification Number (PTIN) as required by law.

Not signing the return could mean the preparer may be looking to make a quick profit by promising a big refund or charging fees based on the size of the refund. This leaves the taxpayer vulnerable and on the hook for any misinformation on the return. Taxpayers should never sign a blank or incomplete return.

Shady tax preparers may:

• Ask for a cash only payment without providing a receipt.
• Invent false income to try to get their clients more tax credits.
• Claim fake deductions to boost the size of the refund.
• Direct refunds into their bank account, not the taxpayer's account.

Taxpayers can report preparer misconduct to the IRS using Form 14157, Complaint: Tax Return Preparer.PDF If a taxpayer suspects a tax return preparer filed or changed their tax return without their consent, they should file Form 14157-A, Tax Return Preparer Fraud or Misconduct AffidavitPDF.

Make a difference: Report fraud, scams and schemes

As part of the Dirty Dozen awareness effort, the IRS encourages people to report individuals who promote improper and abusive tax schemes as well as tax return preparers who deliberately prepare improper returns.

To report an abusive tax scheme or a tax return preparer, people should mail or fax a completed Form 14242, Report Suspected Abusive Tax Promotions or PreparersPDF and any supporting materials to the IRS Lead Development Center in the Office of Promoter Investigations.

Mail:

Internal Revenue Service Lead Development Center
Stop MS5040
24000 Avila Road
Laguna Niguel, CA 92677-3405
Fax: 877-477-9135

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : IRS    

The lender is obligated by the Truth in Lending Act to provide you with a written statement with a list of all of the costs associated with the loan and the terms of financing. This statement must be delivered to you before the settlement.

If you want to rescind the loan, you may do so within 3 business days of the receipt of the Truth in Lending paperwork, receipt of cancellation notice, or your settlement, whichever was the most recent.

You will want to carefully review the disclosure that you are given before you sign. This disclosure will have all of the pertinent information about your loan, the finance charge, the amount financed, the payment schedule and the APR.

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source:   Thomson Reuters       

El Servicio de Impuestos Internos (IRS) les sugirió a los contribuyentes que hayan presentado o que estén por presentar su declaración de impuestos de 2022, que usen el Estimador de retención de impuestos del IRS para ayudar a actualizar la cantidad de impuestos que se le retenga de su cheque de pago de 2023.

El IRS indica que ahora es un buen momento para usar esta herramienta en línea. El Estimador de retención de impuestos, también disponible en español, puede ayudar a las personas a ajustar cuánto se les retiene y puede poner más dinero en su bolsillo o ayudar a evitar una factura tributaria para 2023.

El Estimador de retención de impuestos ofrece a trabajadores, jubilados y trabajadores por cuenta propia una guía paso por paso para adaptar eficazmente la cantidad de impuestos sobre los ingresos que se deben retener de su salario, pensión y otros ingresos. Es especialmente útil después de que ocurra un cambio en su vida como matrimonio, divorcio, compra de un hogar, el nacimiento o adopción de un niño o un cambio significativo en sus ingresos.

Beneficios de usar el Estimador

Para empleados, la retención es la cantidad de impuestos federales sobre los ingresos que se retienen de su cheque de nómina. Aquellos que trabajan pueden usar los resultados del Estimador de retención de impuestos para determinar si deben llenar un nuevo Formulario W-4 y entregárselo a su empleador. Revisar la retención ayuda a:

• Asegurar que se retenga la cantidad adecuada para evitar una cuenta o multa durante la temporada de impuestos.
• Determinar el tener una cantidad menor de impuestos retenidos de su cheque de nómina para recibir más dinero en su cheque y reducir su reembolso en la temporada de impuestos.

¿Qué documentos son necesarios?

Los resultados del Estimador de retención de impuestos son tan precisos como la información ingresada. Para ayudar a estar preparado, el IRS recomienda que los contribuyentes recauden:

• Sus más recientes comprobantes de pago y, si está casado, los de su cónyuge,
• Información de otras fuentes de ingreso y
• Su declaración de impuestos más reciente.

¿Retención o pagos estimados?

Los impuestos se deben pagar mientras se ganen o reciban ingresos en el transcurso del año, ya sea por retención o por pagos de impuestos estimados. Si la cantidad de impuestos sobre los ingresos que se le retiene de un salario o pensión no es suficiente, o si reciben otro tipo de ingreso como interés, dividendos, pensión conyugal, por trabajo por cuenta propia, ganancias de capital o premios y galardones, puede ser que tengan que hacer pagos estimados.

En 2023, los contribuyentes que reciban más de $600 en ingresos de organizaciones de pago de terceros, que incluye aplicaciones de uso popular, pueden recibir un Formulario 1099-K. Pueden usar el Asistente tributario interactivo (en inglés) del IRS para ver si se les requiere hacer pagos de impuestos estimados. Es importante guardar sus archivos.

Personas con situaciones tributarias más complejas deben usar las instrucciones de la Publicación 505, Retención de impuestos e impuestos estimados (en inglés). Esto incluye a contribuyentes que deben impuestos mínimos alternativos o ciertos otros tipos de impuestos y personas con ganancias de capital de largo plazo o dividendos elegibles.

Si tiene alguna pregunta sobre contabilidad esencial para negocios,  impuestos nacionales, impuestos internacionales, representación ante el IRS, implicación de impuestos nacionales en transacciones de bienes inmuebles o estados financieros, llámenos al +1-305-274-5811.  

Fuente:  IRS   

Tax Rates for the 2023 Tax Season

https://www.lbcpa.com/tax-rates

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : Thomson Reuters      

The Internal Revenue Service suggested taxpayers who filed or are about to file their 2022 tax return use the IRS Tax Withholding Estimator to help update the amount of tax to have taken out of their 2023 pay.

The IRS says now is a good time to use this online tool. The Tax Withholding Estimator, also available in Spanish, can help people adjust how much is withheld and could put more cash in their pocket or help them avoid a tax bill for 2023.

The Tax Withholding Estimator offers workers, retirees and the self-employed a step-by-step guide to effectively tailor the amount of income tax they have withheld from wages, pension and other income. It's especially useful after a major life change such as marriage, divorce, home purchase, the birth or adoption of a child or a big change in income.

Benefits of using the Estimator

For employees, withholding is the amount of federal income tax taken out of their paycheck. Workers can use the results from the Tax Withholding Estimator to determine if they should complete a new Form W-4 and submit it to their employer. For example, checking withholding can:

• Ensure the right amount of tax is withheld and prevent an unexpected tax bill or penalty at tax time.
• Determine whether to have less tax withheld from each paycheck, boosting take-home pay and reducing refunds at tax time.

What records are needed?

The Tax Withholding Estimator's results are only as accurate as the information entered. To help prepare, the IRS recommends taxpayers gather:

• Their most recent pay statements and, if married, statements for their spouse.
• Information for other sources of income.
• Their most recent income tax return.

Withholding or estimated payments?

Income taxes must generally be paid as taxpayers earn or receive income throughout the year, through either withholding or estimated tax payments. If the amount of income tax withheld from one's salary or pension is not enough, or if they receive other types of income such as interest, dividends, alimony, self-employment income, capital gains, prizes and awards, they may need to make estimated tax payments.

In 2023, taxpayers who receive more than $600 in income from third-party settlement organizations, including popular payment apps, may receive Form 1099-Ks. Individual taxpayers can use the IRS online Interactive Tax Assistant to see if they're required to pay estimated taxes. Good recordkeeping is key.

People with complex tax situations should instead use the instructions in Publication 505, Tax Withholding and Estimated Tax. This includes taxpayers who owe alternative minimum tax or certain other taxes and people with long-term capital gains or qualified dividends.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : IRS      

The Internal Revenue Service reminded thousands of tax-exempt organizations of their May 15, 2023, filing deadline.

The annual filing due date for certain returns filed by tax-exempt organizations is normally by the 15th day of the 5th month after the end of an organization's accounting period. Those operating on a calendar-year (CY) basis must file a return by May 15, 2023. Returns due include:

• Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF)
• Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ
• Form 990-T, Exempt Organization Business Income Tax Return (other than certain trusts)
• Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code

Mandatory electronic filing

Electronic filing provides fast acknowledgement that the IRS has received the return and reduces processing time, making compliance with reporting requirements easier. Note:

• Organizations filing a Form 990, 990-EZ, 990-PF or 990-T for CY2022 must file their returns electronically.
• Private foundations filing a Form 4720 for CY 2022 must file the form electronically.
• Charities and other tax-exempt organizations can file these forms electronically through an IRS Authorized e-File Provider.
• Organizations eligible to submit Form 990-N must do so electronically and can submit it through Form 990-N (e-Postcard) on IRS.gov.

Common errors

The IRS also reminds organizations to submit complete and accurate returns. If an organization's return is incomplete or the wrong return for the organization, the return will be rejected. Common errors include missing or incomplete schedules.

Extension of time to file

Tax-exempt organizations that need additional time to file beyond the May 15 deadline can request a six-month automatic extension by filing Form 8868, Application for Extension of Time to File an Exempt Organization ReturnPDF. In situations where tax is due, extending the time for filing a return does not extend the time for paying tax. The IRS encourages organizations requesting an extension to electronically file Form 8868.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : IRS

As part of National Small Business Week, April 30 to May 6, the Internal Revenue Service is highlighting tax benefits and resources to help those looking to start a business.

National Small Business Week is an annual effort led by the Small Business Administration to recognize the hard work, ingenuity and dedication of America's small businesses and to celebrate their contributions to the economy. To support the special week, the IRS has a variety of resources available for small business owners to help them understand and meet their tax responsibilities. Next week, the IRS will be highlighting some of these resources, and @IRSnews also plans a special Twitter chat on Thursday.

When choosing to start a business, it's important to consider the following:

Employer Identification Number

Most business owners will need an Employer Identification Number (EIN). It's a permanent number and can be used for most business needs, from opening bank accounts to filing a tax return by mail. Business owners can get their EIN immediately by applying online at IRS.gov at no cost.

Business structure

Taxpayers must decide what form of business entity to establish when starting a business. This helps determine which income tax return form must be filed. The most common business structures are:

• Sole proprietorship - When an individual owns an unincorporated business by themselves.
• Partnerships - The relationship between two or more people to do trade or business.
• Corporations - In forming a corporation, prospective shareholders exchange money, property or both for the corporation's capital stock.
• S Corporations - Are corporations that elect to pass corporate income, losses, deductions and credits through to their shareholders for federal tax purposes.
• Limited Liability Company (LLC) – Are allowed by state statute and may be subject to different regulations. The IRS will treat an LLC as either a corporation or a partnership, or as part of the owner's tax return (e.g., sole proprietorship), depending on elections made by the LLC and its number of members.

Understand business taxes

By law, everyone must pay taxes as they earn income. For small business owners and self-employed people, that usually means making quarterly estimated tax payments as their business earns or receives income during the year. The form of business being operated determines what taxes must be paid and how to pay them. The four general types of business taxes are:

• Income tax - All businesses except partnerships must file an annual income tax return. Partnerships file an information return.
• Self-employment tax - Is a Social Security and Medicare tax primarily for individuals who work for themselves. Payments contribute to the individual's coverage under the Social Security system.
• Employment tax - When small businesses have employees, the business has certain employment tax responsibilities that it must pay and forms it must file.
• Excise tax – Excise taxes are imposed on various goods, services and activities. Such taxes may be imposed on the manufacturer, retailer or consumer, depending on the specific tax.

Good recordkeeping

In addition to helping with tax return preparation, maintaining well-organized records can also help small businesses prepare financial statements, identify sources of income, keep track of deductible expenses and monitor their progress, among other benefits. Taxpayers should plan to maintain their records for at least three years.

Business year options

A "tax year" is an annual accounting period for reporting income and expenses. Small businesses must figure their taxable income based on a tax year and can choose between:

• Calendar year - 12 consecutive months beginning January 1 and ending December 31.
• Fiscal year - 12 consecutive months ending on the last day of any month except December. A 52 to 53 week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : IRS   

El Servicio de Impuestos Internos emitió una alerta al consumidor para advertir a los contribuyentes acerca de nuevas estafas que instan a las personas a usar la información de salarios en una declaración de impuestos para reclamar créditos falsos con la esperanza de obtener un reembolso mayor.

Un esquema, que circula en las redes sociales, alienta a las personas a usar software de impuestos para completar manualmente el Formulario W-2, Declaración de salarios e impuestos (en inglés), e incluir información falsa de ingresos. En este esquema de W-2, los estafadores sugieren que las personas se inventen grandes cifras de ingresos y retención, así como el empleador del que provienen. Luego, los estafadores instruyen a las personas para que presenten la declaración de impuestos falsa electrónicamente con la esperanza de obtener un reembolso sustancial, a veces hasta cinco cifras, debido a la gran cantidad de retención.

El IRS, junto con los socios de la Cumbre de Seguridad en la industria tributaria y los estados, están observando activamente este y otros esquemas. Además, el IRS trabaja con compañías de nómina y grandes empleadores, así como con la Administración del Seguro Social, para verificar la información del W-2.

Con la Semana Nacional de Protección al Consumidor que comienza el lunes, el IRS y los socios de la Cumbre advierten a las personas que no caigan en estas estafas.

"Estamos viendo señales de que esta estafa está aumentando y nos preocupa que los contribuyentes inocentes puedan correr el riesgo de caer en una trampa que los ponga en riesgo de recibir sanciones financieras y penales", dijo el comisionado interino del IRS, Doug O'Donnell. "Los socios del IRS y de la Cumbre de Seguridad les recuerdan a las personas que no existe una manera secreta de obtener dinero gratis o un gran reembolso. Las personas no deben inventar ingresos y tratar de presentar una declaración de impuestos fraudulenta con la esperanza de obtener un reembolso sustancial".

El IRS también está viendo dos variaciones de este esquema; ambos implican el uso indebido de la información salarial del Formulario W-2 con la esperanza de generar un reembolso mayor:

• Una variación implica que las personas usen el Formulario 7202, Los Créditos por Licencia por Enfermedad y Licencia Familiar para Ciertas Personas que Trabajan por Cuenta Propia, para reclamar un crédito a base de los ingresos obtenidos como empleado y no como persona que trabaja por cuenta propia. Estos créditos estuvieron disponibles para trabajadores por cuenta propia para 2020 y 2021 durante la pandemia; no están disponibles para las declaraciones de impuestos de 2022.
• Una variación similar implica que las personas inventen empleados ficticios que trabajan en su hogar y usen el Anexo H (Formulario 1040), Impuestos sobre el empleo doméstico (en inglés), para tratar de reclamar un reembolso a base de salarios falsos familiares y por enfermedad que nunca pagaron. El formulario está diseñado para informar los impuestos sobre el empleo del hogar si un contribuyente contrató a alguien para hacer el trabajo del hogar y esos salarios estaban sujetos a los impuestos del Seguro Social, Medicare o FUTA, o si el empleador retuvo el impuesto federal sobre el ingreso de esos salarios.

El IRS les recuerda a las personas que intentan esto que se enfrentan a una amplia gama de sanciones. Esto puede incluir una multa por declaración frívola de $5,000 (en inglés). Los contribuyentes también corren el riesgo de ser procesados ​​penalmente por presentar una declaración de impuestos falsa.

Para cualquiera que haya participado en uno de estos esquemas, hay varias opciones que recomienda el IRS. Las personas pueden enmendar una declaración anterior o consultar con un profesional de impuestos de confianza.

Si tiene alguna pregunta sobre contabilidad esencial para negocios,  impuestos nacionales, impuestos internacionales, representación ante el IRS, implicación de impuestos nacionales en transacciones de bienes inmuebles o estados financieros, llámenos al +1-305-274-5811.  

Fuente: IRS     

A reverse mortgage is a way for you to take advantage of some of the equity that is currently tied up in your home. A reverse mortgage works in the same manner as a normal one, reversed, and the homeowner is paid monthly versus having to pay. The major difference between this and a home equity loan is that you aren't required to pay anything back to the lender as long as you retain ownership of the home.

The major benefit of a reverse mortgage is that it allows homeowners to take advantage of some of the equity that they have built up in their homes without the burden of having to pay it back in monthly payments. This could be used to supplement income, defray the cost of medical aid, pay for college education, stop a foreclosure, or make it possible to retire.

When the homeowner sells the home or dies, the home must be paid off and, if sold, the remainder of equity is given to its rightful heirs.

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source:   Thomson Reuters     

The Internal Revenue Service warned taxpayers to watch out for scammers who try to sell or offer help setting up an Online Account on IRS.gov that puts their tax and financial information at risk of identity theft.

The IRS Online Account provides valuable tax information for people. But this information in the wrong hands can provide important information to help an identity thief try to submit a fraudulent tax return in the person's name in hopes of getting a big refund. People should watch out for these scam artists offering to help set up these accounts because these are identity theft attempts to run off with the taxpayer's personal or financial information.

These third-party online account scams are part of day three of the IRS annual Dirty Dozen campaign.

“Scammers are coming up with new ways all the time to try to steal information from taxpayers,” said IRS Commissioner Danny Werfel. “An Online Account at IRS.gov can help taxpayers view important details about their tax situation. But scammers are trying to convince people they need help setting up an account. In reality, no help is needed. This is just a scam to obtain valuable and sensitive tax information that scammers will use to try stealing a refund. People should be wary and avoid sharing sensitive personal data over the phone, email or social media to avoid getting caught up in these scams.”

The Dirty Dozen is an annual IRS list of 12 scams and schemes that put taxpayers and the tax professional community at risk of losing money, personal data and more. Some items on the list are new, and some make a return visit. While the list is not a legal document or a formal listing of agency enforcement priorities, it is intended to alert taxpayers, businesses and tax preparers about scams at large.

As a member of the Security Summit, the IRS, with state tax agencies and the nation's tax industry, have taken numerous steps over the last eight years to warn people to watch out for common scams and schemes each tax season, including tax-related identity theft. Along with the Security Summit initiative, the Dirty Dozen aims to protect taxpayers, businesses and the tax system from identity thieves and various hoaxes designed to steal money and information, including this new Online Account scheme.

IRS Online Account: Steer clear of help from third-party scammers

In this scam targeting individuals, swindlers pose as a "helpful" third party and offer to help create a taxpayer's IRS Online Account at IRS.gov. People should remember they can set these accounts up themselves. But third parties making these offers will try to steal a taxpayer's personal information this way. Taxpayers can and should establish their own Online Account through IRS.gov.

These scammers often ask for the taxpayer's personal information including address, Social Security number or Individual Taxpayer Identification number (ITIN) and photo identification. The criminal then sells this valuable information to other criminals. They can also use the sensitive information to file fraudulent tax returns, obtain loans and open credit accounts.

The IRS urges people to watch out for these "helpful" criminals. The only place individuals should go to create an IRS Online Account is IRS.gov. People should not use third-party assistance, other than the approved IRS authentication process through IRS.gov, to create their own IRS online account.

Help stop fraud and scams

As part of the Dirty Dozen awareness effort, the IRS encourages people to report individuals who promote improper and abusive tax schemes as well as tax return preparers who deliberately prepare improper returns.

To report an abusive tax scheme or a tax return preparer, people should mail or fax a completed Form 14242, Report Suspected Abusive Tax Promotions or PreparersPDF and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.

Mail:

Internal Revenue Service Lead Development Center
Stop MS5040
24000 Avila Road
Laguna Niguel, California 92677-3405
Fax: 877-477-9135

……………………………………………………………………………………………………

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source:  IRS   

Can You Deduct The Costs Of A Spouse On A Business Trip?

If you own a company and travel for business, you may wonder whether you can deduct all the costs of having your spouse accompany you on trips. It may be possible, but the rules are restrictive. In general, your spouse must be your employee. And even then, strict rules apply. But there is some good news: Bringing your spouse on a business trip generally doesn’t reduce deductions for your own travel costs.

A spouse-employee

If your spouse is your employee and his or her presence on the trip serves a bona fide business purpose, then you can deduct travel costs. But it isn’t enough for your spouse to merely be “helpful” in incidental ways, such as by typing your meeting notes. Your spouse’s presence must serve a necessary business purpose.

In most cases, a spouse’s participation in social functions, for example as a host or hostess, isn’t enough to establish a business purpose. That is, if his or her purpose is to establish general goodwill for customers or associates, this is usually insufficient. Further, if there’s a vacation element to the trip (for example, if your spouse spends time sightseeing), it will be more difficult to establish a business purpose for his or her presence on the trip. On the other hand, a bona fide business purpose exists if your spouse’s presence is necessary to care for a serious medical condition that you have.

If these tests are satisfied in relation to your spouse, the normal deductions for your spouse’s business travel away from home can be claimed. These include the costs of transportation, meals, lodging, and incidentals such as dry cleaning and phone calls.

A nonemployee spouse

Suppose your spouse’s travel doesn’t satisfy these requirements. You may still be able to deduct a substantial portion of the trip’s costs. This is because the rules don’t require you to allocate 50% of your travel costs to your spouse, but only any additional costs you incur for him or her.

For example, in many hotels the cost of a single room isn’t that much lower than the cost of a double. If a single would cost you $150 a night and a double would cost you and your spouse $200, the disallowed portion of the cost allocable to your spouse would only be $50. In other words, you can write off the cost of what you would have paid traveling alone. To prove your deduction, ask the hotel for a room rate schedule showing single rates for the days you’re staying.

If you drive your own car or rent one, the whole cost will be fully deductible even if your spouse is along. Of course, if public transportation is used, and for meals, any separate costs incurred by your spouse won’t be deductible.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source: Thomson Reuters      

The Internal Revenue Service urged taxpayers who missed Tuesday's April 18 tax-filing deadline to file as soon as possible. Taxpayers who owe and missed the deadline without requesting an extension should file quickly to limit penalties and interest. For struggling taxpayers unable to pay their tax bill, the IRS has several options available to help.

The IRS also reminds taxpayers who owed a refund that they don't receive a penalty for filing late. People shouldn't overlook filing a tax return. Every year, more than 1 million taxpayers overlook a tax refund; the IRS reminds those who didn't file in 2019 that time is running out to get any refund owed to them.

For 2022 tax returns due April 18, 2023, some taxpayers automatically qualify for extra time to file and pay taxes due without penalties and interest, including:

• Members of the military who served or are currently serving in a combat zone. They may qualify for an additional extension of at least 180 days to file and pay taxes.

• Support personnel in combat zones or a contingency operation in support of the Armed Forces. They may also qualify for a filing and payment extension of at least 180 days.

• Taxpayers outside the United States. U.S. citizens and resident aliens who live and work outside the U.S. and Puerto Rico, including military members on duty who don't qualify for the combat zone extension, may qualify for a two-month filing and payment extension.

• Some disaster victims. Those who qualify have more time to file and pay what they owe.

Don't overlook filing; people may miss out on a tax refund

Taxpayers who choose not to file a return because they don't earn enough to meet the filing requirement may miss out on receiving a refund due to potential refundable tax credits. The most common examples of these refundable credits are the Earned Income Tax Credit and Child Tax Credit. Taxpayers often fail to file a tax return and claim a refund for these credits and others for which they may be eligible.

There's no penalty for filing after the April 18 deadline if a refund is due. Taxpayers are encouraged to use electronic filing options including IRS Free File which is available on IRS.gov through Oct.16 to prepare and file 2022 tax returns electronically.

Taxpayers can track their refund using the Where's My Refund? tool on IRS.gov, IRS2Go or by calling the automated refund hotline at 800-829-1954. Taxpayers need the primary Social Security number on the tax return, the filing status and the expected refund amount. The refund status information updates once daily, usually overnight, so there's no need to check more frequently.

File and pay what you can to reduce penalties and interest

Taxpayers should file their tax return and pay any taxes they owe as soon as possible to reduce penalties and interest. An extension to file is not an extension to pay. An extension to file provides an additional six months with a new filing deadline of Oct. 16. Penalties and interest apply to taxes owed after April 18 and interest is charged on tax and penalties until the balance is paid in full.

Filing and paying as much as possible is key because the late-filing penalty and late-payment penalty add up quickly.

Even if a taxpayer can't afford to immediately pay the full amount of taxes owed, they should still file a tax return to reduce possible late-filing penalties. The IRS offers a variety of options for taxpayers who owe the IRS but cannot afford to pay. For more information see the penalties page on IRS.gov.

Taxpayers may qualify for penalty relief if they have filed and paid timely for the past three years and meet other important requirements, including paying or arranging to pay any tax due. For more information, see the first-time penalty abatement page on IRS.gov.

Pay taxes due electronically

Those who owe taxes can pay quickly and securely via their IRS Online Account, IRS Direct Pay, debit or credit card or digital wallet, or they can apply online for a payment plan (including an installment agreement).

Taxpayers paying electronically receive immediate confirmation when they submit their payment. With Direct Pay and the Electronic Federal Tax Payment System (EFTPS), taxpayers can receive email notifications about their payments. For more payment options, visit IRS.gov/payments.

Taxpayer Bill of Rights

Taxpayers have fundamental rights under the law that protect them when they interact with the IRS. The Taxpayer Bill of Rights presents these rights in 10 categories. IRS Publication 1, Your Rights as a Taxpayer PDF, highlights these rights and the agency's obligation to protect them.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source: IRS     

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) as a result of tornadoes, severe storms and straight-line winds that occurred on March 31 and April 1. This means that individuals and households that reside or have a business in Allen, Benton, Clinton, Grant, Howard, Johnson, Lake, Monroe, Morgan, Owen, Sullivan and White counties qualify for tax relief. Other areas added later to the disaster area will also qualify for the same relief. The current list of eligible localities is always available on the Tax Relief in Disaster Situations page on IRS.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting on March 31, 2023. As a result, affected individuals and businesses will have until July 31, 2023, to file returns and pay any taxes that were originally due during this period.

This includes 2022 individual income tax returns and various business returns due on April 18. Among other things, this means that eligible taxpayers will have until July 31 to make 2022 contributions to their IRAs and health savings accounts.

The July 31 deadline also applies to the quarterly estimated tax payments, normally due on April 18 and June 15.

The July 31 deadline also applies to the quarterly payroll and excise tax returns normally due on April 30, 2023. In addition, penalties on payroll and excise tax deposits due on or after March 31 and before April 18, will be abated as long as the tax deposits are made by April 18, 2023.

The Disaster Assistance and Emergency Relief for Individuals and Businesses page has details on other returns, payments and tax-related actions qualifying for the additional time.

Some affected taxpayers may find that they need more time to file beyond the July 31 deadline. If so, the IRS urges them to request the additional time, electronically, before the original April 18 deadline. Two free and easy ways to do this are through either IRS Free File or IRS Direct Pay, both available only on IRS.gov. Visit IRS.gov/extensions for details.

After April 18 and before July 31, disaster area taxpayers can file their extension requests only on paper.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2023 return normally filed in early 2024), or the return for the prior year (that is, the 2022 return normally filed in 2023). Be sure to write the FEMA declaration number – 4704-DR − on any return claiming a loss. See Publication 547, Casualties, Disasters, and Thefts for details.

The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : IRS    

Tennessee storm victims now have until July 31, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) as a result of tornadoes, severe storms and straight-line winds that occurred starting on March 31. This means that individuals and households that reside or have a business in Cannon, Hardeman, Hardin, Haywood, Lewis, Macon, McNairy, Rutherford, Tipton and Wayne counties qualify for tax relief. Other areas added later to the disaster area will also qualify for the same relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting on March 31, 2023. As a result, affected individuals and businesses will have until July 31, 2023, to file returns and pay any taxes that were originally due during this period.

This includes 2022 individual income tax returns and various business returns due on April 18. Among other things, this means that eligible taxpayers will have until July 31 to make 2022 contributions to their IRAs and health savings accounts.

The July 31 deadline also applies to the quarterly estimated tax payments, normally due on April 18 and June 15.

The July 31 deadline also applies to the quarterly payroll and excise tax returns normally due on April 30, 2023. In addition, penalties on payroll and excise tax deposits due on or after March 31 and before April 18, will be abated as long as the tax deposits are made by April 18, 2023.

The Disaster Assistance and Emergency Relief for Individuals and Businesses page has details on other returns, payments and tax-related actions qualifying for the additional time.

Some affected taxpayers may find that they need more time to file beyond the July 31 deadline. If so, the IRS urges them to request the additional time, electronically, before the original April 18 deadline. Two free and easy ways to do this are through either IRS Free File or IRS Direct Pay, both available only on IRS.gov. Visit IRS.gov/extensions for details.

After April 18 and before July 31, disaster area taxpayers can file their extension requests only on paper.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2023 return normally filed in early 2024), or the return for the prior year (that is, the 2022 return normally filed in 2023). Be sure to write the FEMA declaration number – 4701-DR − on any return claiming a loss. See Publication 547 for details.

The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source: IRS 

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

If I Have a Large Capital Gain This Year, What Can I Do?

If you have a large capital gain this year from an investment, it may be advisable to hold onto the investment until next year to put the gain into next year's taxes. You may also want to sell off any investments that you have that are losing value at the moment to claim your losses.

What Do I Need to Keep for Tax Reasons?

It is a good idea to keep all of your receipts and any other records that you may have of your income and expenses. These will come in very handy if you are audited.

What Retirement Plans Are Available to Aid in the Deferral of Taxes?

You have the ability to invest some of the money that you would have paid in taxes to add to your retirement fund. Many employers will offer the opportunity to defer a portion of your earnings and contribute them directly to your retirement account. Some of them may even match a portion of your savings. If this is the case, it is always advisable to save at least the amount that your employer will match. This will give you an automatic 100% gain on your money.

If you are self-employed, look into getting a Keogh, SIMPLE or a SEP IRA.

What Other Ways Can I Defer this Year's Income?

If you own your business you may want to postpone sending certain invoices to ensure that you will receive payment in the following tax year. This can help greatly if some of this income would push you into a higher tax bracket. You may want to accelerate paying for expenses to cover your taxes in the current year.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source: Thomson Reuters   

There are many different ways to use tax breaks for the higher education of your children. Be aware that you can only receive one type of relief for one item. It is best to consult with a professional to determine which would be the most advantageous.

What is the education tax credit?

You must make a choice between two types of tax education credit.

• The American Opportunity Tax Credit will work for the first 4 years of college for at least full-time study.
• The Lifetime Learning Credit applies for as long as the student studies, but the percentage of savings per year decreases drastically.

How can I best use the Coverdell (section 530)?

It is possible to have various 530 accounts for the same student, each opened by different family members or friends. There is no limit to the number of people that can open an account like this for a child.

The account can be transferred to another family member at any time. If the original child decides against going to college or is granted a scholarship, another family member can still utilize the money that has been saved.

What is a qualified tuition program?

The Section 529 is a college savings program available in most states. Money is invested to cover the costs of future education. These investments grow tax free and the distributions may also be tax-free.

What differentiates the Coverdell Section 530 and the Section 529?

• The Section 529 allows for much larger yearly investments, whereas the Section 530 currently only allows for $2000 annually.
• The choice of investments in the Section 529 is extremely conservative and limited while the Section 530 allows for many different options.
• The Section 530 is a nationwide program while the 529 varies from state to state.
• The Section 530 will let you use its funds for primary and secondary education, while the Section 529 can only be used to pay up to a total of $10,000 of tuition per beneficiary (regardless of the number of contributing plans) each year at an elementary or secondary (k-12) public, private or religious school of the beneficiaries choosing.

Can I take money from my traditional or Roth IRA to fund my child's education?

Yes, you can take distributions from your IRAs for qualifying education expenses without having to pay the 10% additional tax penalty. You may owe income tax on at least part of the amount distributed, but not the additional penalty. The amount of the distribution that is more than the education expense does not qualify for the 10% tax exception.

What tax deductions can be used for college education?

There is a limited deduction allowed for higher education and related expenses. In addition, business expense deductions are allowed, without a dollar limit, for education related to the taxpayer's business, employment included.

Is student loan interest tax deductible?

In certain instances, yes, although deductions need to adhere to a few guidelines. The deduction is also subject to income phaseouts.

• The deduction ceiling is $2,500.
• If you are a dependent, you may not claim the interest deduction.
• You need to be the person liable for the debt and the loan must be purely for education.

Can I deduct for education that helps at the workplace?

If you are receiving this education to maintain or improve skills at your current job, yes, but not if it is to meet the minimum requirements.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811

Source: Thomson Reuters      

Have you just started a new business? Did you know expenses incurred before a business begins operations are not allowed as current deductions? Generally, these start-up costs must be amortized over a period of 180 months beginning in the month in which the business begins. However, based on the current tax provisions, you may elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred. The $5,000 deduction is reduced by any start-up or organizational costs which exceed $50,000. If you want to deduct a larger portion of your start-up cost in the first year, a new business will want to begin operations as early as possible and hold off incurring some of those expenses until after business begins. Contact us to help determine how you can maximize your deduction for start-up and/or organizational expenses. For additional information on what costs constitute start-up or organizational expenses, refer to IRS publication 535, Business Expenses.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source: Thomson Reuter      

As part of this year's Dirty Dozen tax scams, the Internal Revenue Service today warned taxpayers to watch out for promoters pushing improper fuel tax credit claims that taxpayers aren't qualified to receive.

The false fuel credit claims mark another important item on the IRS annual Dirty Dozen list on day four of the annual campaign.

"People should watch out for erroneous fuel tax credit claims and the scammers that promote them," said IRS Commissioner Danny Werfel. "These scammers will often charge a hefty fee for these bogus claims, and participants also face the possibility of identity theft. This is another example that people should always remember: Be wary if a tax deal sounds too good to be true."

The Dirty Dozen is an annual IRS list of 12 scams and schemes that put taxpayers and the tax professional community at risk of losing money, personal data and more. Some items on the list are new, and some make a return visit. While the list is not a legal document or a formal listing of agency enforcement priorities, it is intended to alert taxpayers, businesses and tax preparers about scams at large.

As a member of the Security Summit, the IRS, with state tax agencies and the nation's tax industry, have taken numerous steps over the last eight years to warn people to watch out for common scams and schemes each tax season that can contribute to tax-related identity theft. Along with the Security Summit initiative, the Dirty Dozen aims to protect taxpayers, businesses and the tax system from identity thieves and various hoaxes designed to steal money and information.

Beware of third-party promoters for the Fuel Tax Credit

Improper credits continue to be an important area of focus for the IRS. The fuel tax credit is meant for off-highway business and farming use and, as such, is not available to most taxpayers. However, unscrupulous tax return preparers and promoters are enticing taxpayers to inflate their refunds by erroneously claiming the credit. The IRS has seen an increase in the promotion of filing certain refundable credits using Form 4136, Credit for Federal Tax Paid on Fuels.

In this scam, a third party convinces a taxpayer to fraudulently claim the credit with promises of a windfall refund. But the promoters are focused on their own gain, taking advantage of the taxpayer with inflated fees, refund fraud and identity theft.

Taxpayers contemplating participating in any questionable tax scheme such as this should be aware the IRS has increased its compliance efforts related to falsely claiming these credits. IRS processing systems, including new identity theft screening filters, are now stopping a significant number of suspicious fuel tax credit refund claims.

Before taking the bait on a dubious credit claim, taxpayers should seek advice from a legitimate source. Returns filed by individuals and tax preparers who knowingly claim a credit to which they are not entitled may face fines and even be subject to federal criminal prosecution and imprisonment.

Help stop fraud and scams

As part of the Dirty Dozen awareness effort, the IRS encourages people to report individuals who promote improper and abusive tax schemes as well as tax return preparers who deliberately prepare improper returns.

To report an abusive tax scheme or a tax return preparer, people should mail or fax a completed Form 14242, Report Suspected Abusive Tax Promotions or PreparersPDF and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.

Mail:

Internal Revenue Service Lead Development Center
Stop MS5040
24000 Avila Road
Laguna Niguel, California 92677-3405
Fax: 877-477-9135

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source:  IRS     

It is a good idea to keep all of your receipts and any other records that you may have of your income and expenses. These will come in very handy if you are audited.

How should I separate and organize these?

It is advantageous to categorize your expenses:

• Income
• Exemptions
• Medical Expenses
• Taxes
• Business Expenses
• Education
• Travel
• Auto

How long should I hold onto these documents?

It is recommended that you keep these documents for three to seven years, depending on the document. Check the Retention Guide on this site for additional details.

How long should I keep old tax returns?

If you are audited, it is very likely that the auditor will ask to see the last few tax returns. It is recommended to keep these tax returns forever.

An added benefit of keeping your tax returns is that you can see what you claimed last year, allowing you to adjust for the current year.

What other records should I keep?

If you purchased goods that you plan to sell later, you should keep the receipts to calculate your gain or loss on it correctly.

• Anything regarding the property you own and any fixes and repairs that you perform.
• Receipts for any jewelry or other valuable collector's items
• Records for capital assets, stocks, bonds and such

What recordkeeping system should I have?

If you are an employee of a company, your system needn't be complex - you can keep your records separated in folders.

If you are a business owner, you may want to consider hiring a bookkeeper or accountant. Check the Financial Guide for Business on this website.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811

Source: Thomson Reuter      

Many of these schemes peak during filing season as people prepare their tax returns. In reality, these scams can occur throughout the year as fraudsters look for ways to steal money, personal information, data and more.

To help people watch out for these scams, the IRS and the Security Summit partners are providing an overview recapping this year's Dirty Dozen scams.

"Scammers are coming up with new ways all the time to try to steal information from taxpayers," said IRS Commissioner Danny Werfel. "People should be wary and avoid sharing sensitive personal data over the phone, email or social media to avoid getting caught up in these scams. And people should always remember to be wary if a tax deal sounds too good to be true."

Working together as the Security Summit, the IRS, state tax agencies and the nation's tax industry, including tax professionals, have taken numerous steps since 2015 to warn people about common scams and schemes during tax season and beyond that can increase the risk of identity theft. The Security Summit initiative is committed to protecting taxpayers, businesses and the tax system from scammers and identity thieves.

Some items on this year's list were new and some made a return visit. While the list is not a legal document or a formal listing of agency enforcement priorities, it is intended to alert taxpayers and the tax professional community about various scams and schemes.

2023 Dirty Dozen summary:

Employee Retention Credit claims

Taxpayers should be aware of aggressive pitches from scammers who promote large refunds related to the Employee Retention Credit (ERC). The warning follows blatant attempts by promoters to con ineligible people to claim the credit. The IRS highlighted these schemes from promoters who have been blasting ads on radio and the internet touting refunds involving Employee Retention Credits. These promotions can be based on inaccurate information related to eligibility for and computation of the credit. Additionally, some of these advertisements exist solely to collect the taxpayer's personally identifiable information in exchange for false promises. The scammers then use the information to conduct identity theft.

Phishing and smishing

Taxpayers and tax professionals should be alert to fake communications from those posing as legitimate organizations in the tax and financial community, including the IRS and the states. These messages arrive in the form of an unsolicited text (smishing) or email (phishing) to lure unsuspecting victims to provide valuable personal and financial information that can lead to identity theft. The IRS initiates most contacts through regular mail and will never initiate contact with taxpayers by email, text or social media regarding a bill or tax refund.

Online account help from third-party scammers

Swindlers pose as a "helpful" third party and offer to help create a taxpayer's IRS Online Account at IRS.gov. In reality, no help is needed. The online account provides taxpayers with valuable tax information. But third parties making these offers will try to steal a taxpayer's personal information this way. Taxpayers can and should establish their own online account through IRS.gov.

False Fuel Tax Credit claims

The fuel tax credit is meant for off-highway business and farming use and, as such, is not available to most taxpayers. However, unscrupulous tax return preparers and promoters are enticing taxpayers to inflate their refunds by erroneously claiming the credit. The IRS has seen an increase in the promotion of filing certain refundable credits using Form 4136, Credit for Federal Tax Paid on Fuels.

Fake charities

Bogus charities are a perennial problem that gets bigger whenever a crisis or natural disaster strikes. Scammers set up these fake organizations to take advantage of the public's generosity. They seek money and personal information, which can be used to further exploit victims through identity theft.

Taxpayers who give money or goods to a charity might be able to claim a deduction on their federal tax return if they itemize deductions, but charitable donations only count if they go to a qualified tax-exempt organization recognized by the IRS.

Unscrupulous tax return preparers

Most tax preparers provide outstanding and professional service. However, people should be careful of shady tax professionals and watch for common warning signs, including charging a fee based on the size of the refund. A major red flag or bad sign is when the tax preparer is unwilling to sign the dotted line. Avoid these "ghost" preparers, who will prepare a tax return but refuse to sign or include their IRS Preparer Tax Identification Number (PTIN) as required by law. Taxpayers should never sign a blank or incomplete return.

Social media: Fraudulent form filing and bad advice

Social media can circulate inaccurate or misleading tax information, and the IRS has recently seen several examples. These can involve common tax documents like Form W-2 or more obscure ones like Form 8944. While Form 8944 is real, it is intended for a very limited, specialized group. Both schemes encourage people to submit false, inaccurate information in hopes of getting a refund. Taxpayers should always remember that if something sounds too good to be true, it probably is.

Spearphishing and cybersecurity for tax professionals

Phishing is a term given to emails or text messages designed to get users to provide personal information. Spearphishing is a tailored phishing attempt to a specific organization or business.

The IRS is warning tax professionals about spearphishing because there is greater potential for harm if the tax preparer has a data breach. A successful spearphishing attack can ultimately steal client data and the tax preparer's identity, allowing the thief to file fraudulent returns.

Offer in Compromise mills

Offers in Compromise are an important program to help people who can't pay to settle their federal tax debts. But "mills" can aggressively promote Offers in Compromise in misleading ways to people who clearly don't meet the qualifications, frequently costing taxpayers thousands of dollars. A taxpayer can check their eligibility for free using the IRS Offer in Compromise Pre-Qualifier tool.

Schemes aimed at high-income filers

• Charitable Remainder Annuity Trust (CRAT): Charitable Remainder Trusts are irrevocable trusts that let individuals donate assets to charity and draw annual income for life or a specific period. Unfortunately, these trusts are sometimes misused by promoters, advisors and taxpayers to try to eliminate ordinary income and/or capital gain on the sale of the property.

• Monetized Installment Sales: In these potentially abusive transactions, promoters find taxpayers seeking to defer the recognition of gain upon the sale of appreciated property. They facilitate a purported monetized installment sale for the taxpayer in exchange for a fee.

Bogus tax avoidance strategies

• Micro-captive insurance arrangements: A micro-captive is an insurance company whose owners elect to be taxed on the captive's investment income only. Abusive micro-captives involve schemes that lack many of the attributes of legitimate insurance. These structures often include implausible risks, failure to match genuine business needs and, in many cases, unnecessary duplication of the taxpayer's commercial coverages.
• Syndicated conservation easements: A conservation easement is a restriction on the use of real property. Generally, taxpayers may claim a charitable contribution deduction for the fair market value of a conservation easement transferred to a charity if the transfer meets the requirements of Internal Revenue Code 170. In abusive arrangements, which generate high fees for promoters, participants attempt to game the tax system with grossly inflated tax deductions.

Schemes with international elements

• Offshore accounts and digital assets: The IRS continues to scrutinize attempts to hide assets in offshore accounts and accounts holding digital assets, such as cryptocurrency. The IRS continues to identify individuals who attempt to conceal income in offshore banks, brokerage accounts, digital asset accounts and nominee entities. Asset protection professionals and unscrupulous promoters continue to lure U.S. persons into placing their assets in offshore accounts and structures saying they are out of reach of the IRS. These assertions are not true. The IRS can identify and track anonymous transactions of foreign financial accounts as well as digital assets.

• Maltese individual retirement arrangements misusing treaty: These arrangements involve U.S. citizens or residents who attempt to avoid U.S. tax by contributing to foreign individual retirement arrangements in Malta (or potentially other host countries). The participants in these transactions typically lack any local connection to the host country. By improperly asserting the foreign arrangement as a "pension fund" for U.S. tax treaty purposes, the U.S. taxpayer misconstrues the relevant treaty provisions and improperly claims an exemption from U.S. income tax on gains and earnings in and distributions from the foreign individual retirement arrangement.

• Puerto Rican and foreign captive insurance: U.S. business owners of closely held entities participate in a purported insurance arrangement with a Puerto Rican or other foreign corporation in which the U.S. business owner has a financial interest. The U.S. business owner (or a related entity) claims a deduction for amounts paid as premiums for "insurance coverage" provided by a fronting carrier, which reinsures the "coverage" with the Puerto Rican or other foreign corporation. Despite being labeled as insurance, these arrangements lack many of the attributes of legitimate insurance.

Where appropriate, the IRS will challenge the purported tax benefits from these types of transactions and impose penalties. The IRS Criminal Investigation Division is always on the lookout for promoters and participants of these types of schemes. Taxpayers should think twice before including questionable arrangements like this on their tax returns. After all, taxpayers are legally responsible for what's on their return, not a promoter making promises and charging high fees. Taxpayers can help stop these arrangements by relying on reputable tax professionals they know and trust.

Help stop fraud and scams

As part of the Dirty Dozen awareness effort, the IRS encourages people to report individuals who promote improper and abusive tax schemes as well as tax return preparers who deliberately prepare improper returns.

To report an abusive tax scheme or a tax return preparer, people should mail or fax a completed Form 14242, Report Suspected Abusive Tax Promotions or PreparersPDF and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.

Mail:

Internal Revenue Service Lead Development Center
Stop MS5040
24000 Avila Road
Laguna Niguel, California 92677-3405
Fax: 877-477-9135

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : IRS 

Muchos de estos planes fraudulentos alcanzan su punto máximo durante la temporada de presentación de impuestos cuando las personas preparan sus declaraciones de impuestos.

Trabajando juntos como la Cumbre de Seguridad, el IRS, las agencias tributarias estatales y la industria tributaria de la nación, incluidos los profesionales de impuestos, han tomado numerosas medidas desde 2015 para advertir a las personas de estafas comunes durante la temporada de impuestos y más allá que pueden aumentar el riesgo de robo de identidad. La iniciativa de la Cumbre de Seguridad se compromete a proteger a los contribuyentes, las empresas y el sistema tributario de los estafadores y los ladrones de identidad.

Algunos elementos de la lista eran nuevos y algunos hicieron una visita de regreso. Si bien la lista no es un documento legal o una lista formal de las prioridades de aplicación de la agencia, su objetivo es alertar a los contribuyentes y a la comunidad profesional de impuestos sobre varias estafas.

Resumen de la Docena Sucia de 2023:

Reclamos del Crédito de retención de empleados

Los contribuyentes deben estar al tanto de los estafadores que promueven grandes reembolsos relacionados con el Crédito de retención de empleados (ERC). La advertencia es un resultado de los intentos evidentes de los promotores de engañar a las personas no elegibles para reclamar el crédito. El IRS destacó estas estafas de los promotores que se han estado anunciando en la radio e Internet promocionando reembolsos relacionados con el Crédito de retención de empleados. Estas promociones pueden basarse en información inexacta relacionada con la elegibilidad y el cálculo del crédito. Además, algunos de estos anuncios existen únicamente para recopilar información de identificación personal del contribuyente a cambio de falsas promesas. Los estafadores luego usan la información para llevar a cabo el robo de identidad.

Phishing y smishing

Los contribuyentes y los profesionales de impuestos deben mantenerse en alerta a comunicaciones falsas de quienes se hacen pasar por organizaciones legítimas en la comunidad tributaria y financiera, incluidos el IRS y los estados. Estos mensajes llegan en forma de un mensaje de texto no solicitado (smishing) o correo electrónico (phishing) para atraer a las víctimas desprevenidas para que proporcionen información personal y financiera valiosa que puede conducir al robo de identidad. El IRS inicia la mayoría de los contactos a través del correo regular y nunca iniciará el contacto con los contribuyentes por correo electrónico, mensaje de texto o redes sociales con respecto a una factura o reembolso de impuestos.

Cuenta en línea: ayuda por parte de terceros

Los estafadores se hacen pasar por terceros "útiles" y se ofrecen a ayudar a crear una cuenta en línea del IRS para contribuyentes en IRS.gov. En realidad, no se necesita ayuda. La cuenta en línea proporciona a los contribuyentes valiosa información tributaria. Pero los terceros que hacen estas ofertas intentarán robar la información personal de un contribuyente de esta manera. Los contribuyentes pueden y deben establecer su propia cuenta en línea a través de IRS.gov.

Reclamos falsos del Crédito tributario por combustible

El Crédito tributario por combustible está destinado a negocios fuera de carretera y uso agrícola y, como tal, no está disponible para la mayoría de los contribuyentes. Sin embargo, los preparadores y promotores de declaraciones de impuestos sin escrúpulos están tentando a los contribuyentes a inflar sus reembolsos al reclamar el crédito erróneamente. El IRS ha visto un aumento en la promoción de la presentación de ciertos créditos reembolsables mediante el Formulario 4136, Crédito por impuestos federales pagados sobre combustibles.

Organizaciones benéficas falsas

Las organizaciones benéficas falsas son un problema que aumenta cada vez que ocurre una crisis o un desastre natural. Los estafadores crean estas organizaciones falsas para aprovecharse de la generosidad del público. Buscan dinero e información personal que pueden usarse para explotar aún más a las víctimas mediante el robo de identidad.

Los contribuyentes que dan dinero o bienes a una organización benéfica pueden reclamar una deducción en su declaración de impuestos federal si detallan las deducciones, pero las donaciones caritativas solo cuentan si van a una organización calificada exenta de impuestos reconocida por el IRS.

Preparadores de declaraciones de impuestos sin escrúpulos

La mayoría de los preparadores de impuestos brindan un servicio excepcional y profesional. Sin embargo, las personas deben tener cuidado con los profesionales de impuestos sospechosos y estar atentos a las señales comunes de advertencia, incluido el cobro de una tarifa a base del monto del reembolso. Una de las principales señales de alerta es cuando el preparador de impuestos no está dispuesto a firmar la declaración. Evite a estos preparadores "fantasma", que prepararán una declaración de impuestos, pero se negarán a firmar o incluir su Número de Identificación de Preparador de Impuestos (PTIN) del IRS como lo exige la ley. Los contribuyentes nunca deben firmar una declaración en blanco o incompleta.

Redes sociales; presentación de formularios fraudulentos y malos consejos

Las redes sociales pueden hacer circular información tributaria inexacta o engañosa, y el IRS ha visto recientemente varios ejemplos. Estos pueden incluir documentos tributarios comunes como el Formulario W-2 u otros menos populares como el Formulario 8944. Si bien el Formulario 8944 es real, está destinado a un grupo especializado muy limitado. Ambas estafas alientan a las personas a enviar información falsa e inexacta con la esperanza de obtener un reembolso. Los contribuyentes siempre deben recordar que, si algo suena demasiado bueno para ser verdad, probablemente lo sea.

Spearphishing y ciberseguridad para profesionales de impuestos

Phishing es un término que se le da a los correos electrónicos o mensajes de texto diseñados para que los usuarios proporcionen información personal. Spearphishing es un intento de phishing personalizado para una organización o negocio específico.

El IRS advierte a los profesionales de impuestos del spearphishing porque existe un mayor potencial de daño si el preparador de impuestos tiene una filtración de datos. Un ataque exitoso de spearphishing puede, en última instancia, robar los datos del cliente y la identidad del preparador de impuestos, lo que permite que el ladrón presente declaraciones fraudulentas.

Ofrecimientos de transacción fabricados por promotores

Los ofrecimientos de transacción son un programa importante para ayudar a las personas que no pueden pagar a saldar sus deudas de impuestos federales. Pero los promotores pueden promover agresivamente los ofrecimientos de transacción de manera engañosa para las personas que claramente no cumplen con los requisitos, lo que con frecuencia les cuesta a los contribuyentes miles de dólares. Un contribuyente puede verificar su elegibilidad de forma gratuita a través de la herramienta Precalificador de ofrecimiento de transacción del IRS (en inglés).

Estafas dirigidas a contribuyentes de altos ingresos

• Fideicomisos caritativos de anualidades restantes (CRAT): Los fideicomisos caritativos de anualidades restantes (en inglés) son fideicomisos irrevocables que permiten a las personas donar activos a organizaciones benéficas y obtener ingresos anuales de por vida o durante un período específico. Desafortunadamente, estos fideicomisos a veces son mal usados por promotores, asesores y contribuyentes para tratar de eliminar ingresos ordinarios y/o ganancias de capital en la venta de la propiedad.

• Ventas a plazos monetizadas: En estas transacciones potencialmente abusivas, los promotores encuentran contribuyentes que buscan diferir el reconocimiento de la ganancia en la venta de la propiedad apreciada. Facilitan una supuesta venta monetizada a plazos para el contribuyente a cambio de una tarifa.

Estrategias falsas de evasión de impuesto

• Acuerdos abusivos de seguros micro cautivo: El abuso de seguro micro cautivo es una compañía de seguros cuyos propietarios eligen pagar impuestos sobre los ingresos de inversión. Los micro cautivos abusivos involucran estrategias que carecen de muchos de los atributos de los seguros legítimos. Estas estructuras a menudo incluyen riesgos inverosímiles, la falta de coincidencia con las necesidades comerciales genuinas y, en muchos casos, la duplicación innecesaria de las coberturas comerciales del contribuyente.
• Propiedades de conservación sindicadas: Un acuerdo de propiedad de conservación es una restricción al uso de bienes inmuebles. En general, los contribuyentes pueden reclamar una deducción por contribución caritativa por el valor justo de mercado de una propiedad de conservación transferida a una organización benéfica si la transferencia cumple con los requisitos del Código de Rentas Internas 170. Estos arreglos abusivos generan tarifas altas para los promotores y los participantes intentan engañar al sistema tributario con deducciones de impuestos enormemente infladas.

Estrategias con elementos internacionales

• Cuentas en el extranjero y activos digitales: El IRS continúa analizando los intentos de ocultar activos en cuentas en el extranjero y cuentas que contienen activos digitales, como criptomonedas. El IRS continúa identificando a personas que intentan ocultar ingresos en bancos en el extranjero, cuentas de corretaje, cuentas de activos digitales y entidades nominales. Los profesionales de la protección de activos y los promotores sin escrúpulos continúan atrayendo a los estadounidenses para que coloquen sus activos en cuentas y estructuras en el extranjero, diciendo que están fuera del alcance del IRS. Estas afirmaciones no son ciertas. El IRS puede identificar y rastrear transacciones anónimas de cuentas financieras extranjeras, así como activos digitales.

• Uso incorrecto del acuerdo maltés de arreglos de cuentas de retiro individuales. Estos arreglos involucran a ciudadanos o residentes de los EE. UU. que intentan evadir impuestos de EE. UU. contribuyendo a arreglos de pensiones extranjeros en Malta (o potencialmente en otros países anfitriones). Los participantes en estas transacciones normalmente carecen de cualquier conexión local con el país anfitrión. Al afirmar indebidamente el acuerdo extranjero como un "fondo de pensión" a efectos del tratado tributario de los EE. UU., el contribuyente de los EE. UU. malinterpreta las disposiciones pertinentes del tratado y reclama indebidamente una exención del impuesto sobre los ingresos de los EE. UU. sobre ganancias y salarios en, y distribuciones del arreglo de jubilación individual en el extranjero.

• Seguro cautivo de Puerto Rico y otros en el extranjero: Los dueños de negocios de EE. UU. de entidades estrechamente controladas participan en un supuesto acuerdo de seguro con una corporación puertorriqueña u otra extranjera en la que el dueño del negocio estadounidense tiene un interés financiero. El propietario de la empresa estadounidense (o una entidad relacionada) reclama una deducción por los montos pagados como primas por la "cobertura de seguro" proporcionada por una compañía de fachada, que reasegura la "cobertura" con la corporación puertorriqueña u otra extranjera. A pesar de estar etiquetados como seguros, estos arreglos carecen de muchos de los atributos de los seguros legítimos.

Cuando corresponda, el IRS impugnará los supuestos beneficios tributarios de este tipo de transacciones e impondrá sanciones. La División de Investigación Criminal del IRS siempre está buscando promotores y participantes de estos tipos de fraude. Los contribuyentes deberían pensarlo dos veces antes de incluir arreglos cuestionables como este en sus declaraciones de impuestos. Después de todo, los contribuyentes son legalmente responsables de lo que hay en su declaración, no un promotor que hace promesas y cobra tarifas altas. Los contribuyentes pueden ayudar a detener estos arreglos confiando en profesionales de impuestos acreditados que conocen y en los que confían.

Ayude a detener el fraude y las estafas

Como parte del esfuerzo de concienciación de la Docena Sucia, el IRS alienta a las personas a denunciar individuos que promueven estafas de impuestos y preparadores de declaraciones de impuestos que deliberadamente preparan declaraciones indebidas.

Para denunciar un plan fraudulento o a un preparador de declaraciones de impuestos, las personas deben enviar por correo o fax un Formulario 14242 (SP), Informar Sospechas de Promociones Tributarias o Preparadores de Impuestos AbusivosPDF completo y cualquier material de apoyo al Centro de Desarrollo de Información del IRS en la Oficina de Investigaciones de Promotores.

Dirección postal:

Internal Revenue Service Lead Development Center
Stop MS5040
24000 Avila Road
Laguna Niguel, California 92677-3405
Fax: 877-477-9135

Si tiene alguna pregunta sobre contabilidad esencial para negocios,  impuestos nacionales, impuestos internacionales, representación ante el IRS, implicación de impuestos nacionales en transacciones de bienes inmuebles o estados financieros, llámenos al +1-305-274-5811.  

Fuente : IRS  

Arkansas storm victims now have until July 31, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) as a result of tornadoes and severe storms that occurred on March 31. This means that individuals and households that reside or have a business in Cross, Lonoke and Pulaski counties qualify for tax relief. Other areas added later to the disaster area will also qualify for the same relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting on March 31, 2023. As a result, affected individuals and businesses will have until July 31, 2023, to file returns and pay any taxes that were originally due during this period.

This includes 2022 individual income tax returns and various business returns due on April 18. Among other things, this means that eligible taxpayers will have until July 31 to make 2022 contributions to their IRAs and health savings accounts.

The July 31 deadline also applies to the quarterly estimated tax payments, normally due on April 18 and June 15.

The July 31 deadline also applies to the quarterly payroll and excise tax returns normally due on April 30, 2023. In addition, penalties on payroll and excise tax deposits due on or after March 31 and before April 18 will be abated if the tax deposits are made by April 18, 2023.

The Disaster Assistance and Emergency Relief for Individuals and Businesses page has details on other returns, payments and tax-related actions qualifying for the additional time.

Some affected taxpayers may find that they need more time to file beyond the July 31 deadline. If so, the IRS urges them to request the additional time electronically before the original April 18 deadline. Two free and easy ways to do this are through either IRS Free File or IRS Direct Pay, both available only on IRS.gov. Visit IRS.gov/extensions for details.

After April 18 and before July 31, disaster area taxpayers can file their extension requests only on paper.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline that occurs during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2023 return normally filed in early 2024), or the return for the prior year (that is, the 2022 return normally filed in 2023). Be sure to write the FEMA declaration number – 4698-DR – on any return claiming a loss. See Publication 547 for details.

The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : IRS  

U.S. citizen and resident aliens living abroad should know their tax obligations. Their worldwide income -- including wages, unearned income and tips -- is subject to U.S. income tax, regardless of where they live or where they earn their income. They also have the same income tax filing requirements as U.S. citizens or resident aliens living in the United States.

An income tax filing requirement applies even if a taxpayer qualifies for tax benefits such as the Foreign Earned Income Exclusion or the Foreign Tax Credit, which reduce or eliminate U.S. tax liability. These tax benefits are available only if an eligible taxpayer files a U.S. income tax return.

Taxpayers living outside of the U.S. and Puerto Rico have an automatic extension to file – but not to pay

A taxpayer has an automatic two-month extension to June 15, 2023, if both their tax home and abode are outside the United States and Puerto Rico. Even with an extension, a taxpayer will have to pay interest on any tax not paid by the regular due date of April 18, 2023.

Those serving in the military outside the U.S. and Puerto Rico on the regular due date of their tax return also qualify for the extension to June 15, 2023. Taxpayers should attach a statement to their tax return if one of these two situations applies. More information is in the instructions for Form 1040 and Form 1040-SR, Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad and Publication 519, U.S. Tax Guide for Aliens.

Reporting requirement for foreign accounts and assets

Federal law requires U.S. citizens and resident aliens to report their worldwide income, including income from foreign trusts and foreign bank and other financial accounts.

• Schedule B (Form 1040), Interest and Ordinary Dividends – In most cases, affected taxpayers attach Schedule B to their federal return to report foreign assets. Part III of Schedule B asks about the existence of foreign accounts such as bank and securities accounts and usually requires U.S. citizens and resident aliens to report the country in which each account is located.

• Form 8938, Statement of Foreign Financial Assets – Some taxpayers may also need to attach Form 8938 to their return to report specified foreign financial assets if the total value of those assets exceeds certain thresholds. The instructions for this form have the details.

People must also report foreign assets of $10,000 or more to the Treasury Department

U.S. persons with an interest in or signature or other authority over foreign financial accounts where the total value exceeded $10,000 at any time during 2022 must also file a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR) with the Treasury Department.

The form is available only through the BSA E-filing System website.

The deadline for filing the annual Report of Foreign Bank and Financial Accounts (FBAR) is April 18, 2023. U.S. persons who miss the April deadline have an automatic extension until Oct. 16, 2023 (as October 15 is a Sunday), to file the FBAR. FinCEN'sPDF website has the details.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source: IRS    

Mississippi storm victims now have until July 31, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) as a result of tornadoes and severe storms that occurred on March 24 and 25. This means that individuals and households that reside or have a business in Carroll, Humphreys, Monroe and Sharkey counties qualify for tax relief. Other areas added later to the disaster area will also qualify for the same relief. The current list of eligible localities is always available on the Tax Relief in Disaster Situations page.

The tax relief postpones various tax filing and payment deadlines that occurred starting on March 24, 2023. As a result, affected individuals and businesses will have until July 31, 2023, to file returns and pay any taxes that were originally due during this period.

This includes 2022 individual income tax returns and various business returns due on April 18. Among other things, this means that eligible taxpayers will have until July 31 to make 2022 contributions to their IRAs and health savings accounts.

The July 31 deadline also applies to the quarterly estimated tax payments, normally due on April 18 and June 15.

The July 31 deadline also applies to the quarterly payroll and excise tax returns normally due on April 30, 2023. In addition, penalties on payroll and excise tax deposits due on or after March 24 and before April 10, will be abated as long as the tax deposits are made by April 10, 2023.

The Disaster Assistance and Emergency Relief for Individuals and Businesses page has details on other returns, payments and tax-related actions qualifying for the additional time.

Some affected taxpayers may find that they need more time to file beyond the July 31 deadline. If so, the IRS urges them to request the additional time, electronically, before the original April 18 deadline. Two free and easy ways to do this are through either IRS Free File or IRS Direct Pay, both available only on IRS.gov. Visit IRS.gov/extensions for details.

After April 18 and before July 31, disaster area taxpayers can file their extension requests only on paper.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2023 return normally filed in early 2024), or the return for the prior year (that is, the 2022 return normally filed in 2023). Be sure to write the FEMA declaration number – 4697-DR − on any return claiming a loss. See Publication 547 for details.

The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source: IRS  

The Internal Revenue Service issued a consumer alert to warn taxpayers of new scams that urge people to use wage information on a tax return to claim false credits in hopes of getting a big refund.

One scheme, which is circulating on social media, encourages people to use tax software to manually fill out Form W-2, Wage and Tax Statement, and include false income information. In this W-2 scheme, scam artists suggest people make up large income and withholding figures as well as the employer it is coming from. Scam artists then instruct people to file the bogus tax return electronically in hopes of getting a substantial refund – sometimes as much as five figures – due to the large amount of withholding.

The IRS along with the Security Summit partners in the tax industry and the states, are actively watching for this scheme and others. In addition, the IRS works with payroll companies and large employers – as well as the Social Security Administration – to verify W-2 information.

With National Consumer Protection Week starting Monday, the IRS and Summit partners warn people not to fall for these scams.

"We are seeing signs this scam is increasing, and we worry that innocent taxpayers could be at risk of being tempted into falling into a trap that puts them at risk of financial and criminal penalties," said Acting IRS Commissioner Doug O'Donnell. "The IRS and Security Summit partners remind people there is no secret way to get free money or a big refund. People should not make up income and try to submit a fraudulent tax return in hopes of getting a huge refund."

Two variations of this scheme are also being seen by the IRS; both involve misusing Form W-2 wage information in hopes of generating a larger refund:

• One variation involves people using Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, to claim a credit based on income earned as an employee and not as a self-employed individual. These credits were available for self-employed individuals for 2020 and 2021 during the pandemic; they are not available for 2022 tax returns.
• A similar variation involves people making up fictional employees employed in their household and using Schedule H (Form 1040), Household Employment Taxes, to try claiming a refund based on false sick and family wages they never paid. The form is designed to report household employment taxes if a taxpayer hired someone to do household work and those wages were subject to Social Security, Medicare or FUTA taxes, or if the employer withheld federal income tax from those wages.

The IRS reminds people who try this that they face a wide range of penalties. This may include a frivolous return penalty of $5,000. Filers also run the risk of criminal prosecution for filing a false tax return.

For anyone who has participated in one of these schemes, there are several options that the IRS recommends. People can amend a previous tax return or consult with a trusted tax professional.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source: Thomson Reuter 

The Internal Revenue Service reaches out in multiple ways to educate taxpayers while ensuring it fairly enforces the nation's tax laws. There are important factors to keep in mind about when the IRS may initiate direct contact with a taxpayer.

For people who owe taxes, the IRS provides many different payment options to help taxpayers meet their obligations. Taxpayers can avoid late filing and interest penalties by submitting their tax return and using one of these options to pay what they owe by April 18.

For those struggling to pay in full by the deadline, the IRS offers several different options. For example, most individual taxpayers qualify for a payment plan and can use the IRS' Online Payment Agreement to set up a payment plan (including an installment agreement) to pay off an outstanding balance over time.

People encountering a tax issue, such as an unpaid bill or a question about their taxes, will typically receive multiple letters in the mail from the IRS. People are encouraged to respond to these letters quickly, since interest and penalties can compound quickly.

Most IRS contacts with taxpayers are through regular mail delivered by the United States Postal Service. However, there are limited circumstances when the IRS will come to a home or business as part of a collection investigation, an audit or an ongoing criminal investigation.

IRS in-person visits

IRS employees that may make face-to-face visits outside an IRS office include revenue officers, revenue agents and IRS Criminal Investigation special agents. IRS employees are trained to respect taxpayer rights, and there are some important facts to keep in mind about the different types of visits.

Revenue officers are IRS civil enforcement employees who work to resolve compliance issues such as unfiled returns and/or taxes owed – all situations where the taxpayer typically would have received multiple IRS letters in advance.

These in-person visits may be unscheduled and can be to share information, inform taxpayers of their tax filing and payment obligations and work with taxpayers to resolve their tax issues and bring them into compliance.

They conduct interviews to gather financial information and provide taxpayers with the necessary steps to become and remain compliant with the tax laws.

Revenue agents usually conduct in-person field audits that are normally at the taxpayer's home, place of business or accountant's office where the organization's financial books and records are located. Revenue agents will make contact via mail or phone prior to any visit.

Revenue officers and agents always carry two forms of official credentials with a serial number and their photo. Taxpayers have the right to see each of these credentials and can also request an additional method to verify their identification.

Remember, taxpayers should know they have a tax issue before these visits occur since multiple mailings occur.

More information on identifying legitimate IRS representatives and how to report scams can be found at IRS.gov.

IRS-CI special agents investigate potential criminal violations of the Internal Revenue Code and related financial crimes. IRS-CI's investigative jurisdiction includes tax, money laundering and Bank Secrecy Act laws. IRS-CI special agents always present their law enforcement credentials when conducting investigations.

IRS-CI may visit a taxpayer's home or business unannounced during an investigation. However, they will not demand any sort of payment. Learn more about IRS-CI on IRS.gov.

How to report impersonation scams

If a person doesn't have a previously known tax issue and suspects someone is trying to impersonate an IRS employee, there are a variety of options to report phone, email and other impersonation scams:

• Report impersonation scams to the Treasury Inspector General for Tax Administration on the TIGTA Report Waste, Fraud and Abuse webpage. Taxpayers can also call 800-366-4484 to report impersonation scams.
• Protect your community by reporting fraud, scams and bad business practices. Report phone scams to the Federal Trade Commission at Report Fraud FTC.
• Report an unsolicited email claiming to be from the IRS or an IRS-related system like the Electronic Federal Tax Payment System to the IRS at phishing@irs.gov.
• For a comprehensive listing of recent tax scams, consumer alerts and how to report them, visit Tax Scams/Consumer Alerts.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : IRS 

Los contribuyentes que residen en áreas de desastre en la mayoría de California y partes de Alabama y Georgia ahora tienen hasta el 16 de octubre de 2023 para presentar varias declaraciones de impuestos federales individuales y comerciales y realizar pagos de impuestos, anunció hoy el Servicio de Impuestos Internos. La fecha límite se había pospuesto anteriormente para el 15 de mayo en estas áreas.

El IRS está ofreciendo alivio a cualquier área designada por la Agencia Federal para el Manejo de Emergencias (FEMA, por sus siglas en inglés) en estos tres estados. Hay cuatro declaraciones elegibles diferentes de FEMA y las fechas de inicio y otros detalles varían para cada uno de estos desastres. La lista actual de localidades elegibles y otros detalles para cada desastre siempre está disponible en la página de Alivio en situaciones de desastre en IRS.gov.

El alivio adicional pospone hasta el 16 de octubre varios plazos para la presentación y pago de impuestos que incluyen aquellos para la mayoría de las declaraciones de impuestos individuales y comerciales de 2022. Esto incluye: las declaraciones de impuestos individuales que vencen el 18 de abril; varias declaraciones de impuestos comerciales que normalmente vencen el 15 de marzo y 18 de abril, y declaraciones de impuestos de organizaciones exentas de impuestos que normalmente vencen el 15 de mayo.

Entre otras cosas, esto significa que contribuyentes elegibles tendrán hasta el 16 de octubre para hacer contribuciones de 2022 a sus cuentas IRA y de arreglos de reembolsos de salud (HSAs).

Además, agricultores que eligieron no hacer pagos de impuestos estimados y normalmente presentan sus declaraciones para el 1ro de marzo ahora tendrán hasta el 16 de octubre de 2023 para presentar su declaración de 2022 y pagar cualquier impuesto adeudado

La fecha límite del 16 de octubre también se aplica al pago de impuestos estimados para el cuarto trimestre de 2022, que vencía originalmente el 17 de enero de 2023. Esto significa que los contribuyentes pueden omitir este pago y, en su lugar, incluirlo con la declaración de impuestos de 2022 que presentan, en o antes del 16 de octubre.

El plazo del 16 de octubre también se aplica a los pagos trimestrales de impuestos sobre los ingresos estimados de 2023 que vencen el 18 de abril, 15 de junio y 15 de septiembre. El plazo también aplica para las declaraciones trimestrales de impuestos sobre la nómina e impuestos especiales que normalmente vencen el 31 de enero, 30 de abril y 31 de julio.

La página de Ayuda y alivio por emergencia en casos de desastre para las personas y los negocios tiene detalles acerca de otras declaraciones, pagos y acciones relacionadas con impuestos que son elegibles para el tiempo adicional. Los contribuyentes en las áreas afectadas no necesitan presentar ningún papeleo de extensión, y no necesitan llamar al IRS para calificar para el tiempo extendido.

El IRS provee automáticamente la presentación y el alivio de multas a cualquier contribuyente con una dirección registrada con el IRS ubicada en el área del desastre. Por lo tanto, los contribuyentes no necesitan comunicarse con la agencia para obtener el alivio. Sin embargo, si un contribuyente afectado recibe un aviso de multa por presentación o pago atrasado del IRS que tiene un plazo de depósito, pago o presentación original o extendida que cae dentro del período de aplazamiento, el contribuyente debe llamar al número que figura en el aviso para solicitar el alivio de multa.

Además, el IRS trabajará con cualquier contribuyente que viva fuera del área del desastre, pero cuyos archivos necesarios para cumplir con una fecha límite que ocurra durante el período de aplazamiento se encuentren en el área afectada. Contribuyentes elegibles para el alivio que viven fuera del área de desastre deben comunicarse con el IRS al 866-562-5227. Esto también incluye a los trabajadores que ayudan en las actividades de socorro que están afiliados a un gobierno reconocido como una organización filantrópica.

Las personas y empresas en un área de desastre declarada por el gobierno federal que sufrieron pérdidas relacionadas con el desastre no aseguradas o no reembolsadas pueden optar por reclamarlas en la declaración del año en que ocurrió la pérdida o en la declaración del año anterior. Consulte la Publicación 547 (SP), Hechos Fortuitos, Desastres y Robos para detalles.

El alivio tributario es parte de una respuesta federal coordinada a causa de los daños por estas tormentas y se basa en las evaluaciones de daños locales realizadas por FEMA. Para obtener información acerca de la recuperación ante desastres, visite​​​​​ DisasterAssistance.gov

Si tiene alguna pregunta sobre contabilidad esencial para negocios,  impuestos nacionales, impuestos internacionales, representación ante el IRS, implicación de impuestos nacionales en transacciones de bienes inmuebles o estados financieros, llámenos al +1-305-274-5811.  

Fuente : IRS     

Disaster-area taxpayers in most of California and parts of Alabama and Georgia now have until Oct. 16, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today. Previously, the deadline had been postponed to May 15 for these areas.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) in these three states. There are four different eligible FEMA declarations, and the start dates and other details vary for each of these disasters. The current list of eligible localities and other details for each disaster are always available on the Tax Relief in Disaster Situations page on IRS.gov.

The additional relief postpones until Oct. 16, various tax filing and payment deadlines, including those for most calendar-year 2022 individual and business returns. This includes: Individual income tax returns, originally due on April 18; Various business returns, normally due on March 15 and April 18; and returns of tax-exempt organizations, normally due on May 15.

Among other things, this means that eligible taxpayers will also have until Oct. 16 to make 2022 contributions to their IRAs and health savings accounts.

In addition, farmers who choose to forgo making estimated tax payments and normally file their returns by March 1 will now have until Oct. 16, 2023, to file their 2022 return and pay any tax due.

The Oct. 16 deadline also applies to the estimated tax payment for the fourth quarter of 2022, originally due on Jan. 17, 2023. This means that taxpayers can skip making this payment and instead include it with the 2022 return they file, on or before Oct. 16.

The Oct. 16 deadline also applies to 2023 estimated tax payments, normally due on April 18, June 15 and Sept. 15. It also applies to the quarterly payroll and excise tax returns normally due on Jan. 31, April 30 and July 31.

The Disaster Assistance and Emergency Relief for Individuals and Businesses page has details on other returns, payments and tax-related actions qualifying for the additional time. Taxpayers in the affected areas do not need to file any extension paperwork, and they do not need to call the IRS to qualify for the extended time.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred or the return for the prior year. See Publication 547, Casualties, Disasters, and Thefts for details.

The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : IRS      

IRA Contributions

One popular tax savings outlet available to taxpayers today is the Individual Retirement Account, more commonly referred to as an IRA. There are several options you have when deciding which type of IRA account to enter into. You may be able to take a tax deduction for the contributions to a traditional IRA, depending on whether you or your spouse, if filing jointly, are covered by an employer's pension plan and how much total income you have. Conversely, you cannot deduct Roth IRA contributions, but the earnings on a Roth IRA may be tax-free if you meet the conditions for a qualified distribution.

Generally, you can contribute a percentage of your earnings for the current year or a larger, catch-up contribution if you are age 50 or older. You can fund a traditional IRA, a Roth IRA (if you qualify), or both, but your total contributions cannot be more than these annual amounts (currently $6,000, or $7,000 if you are age 50 or older).

You can file your tax return claiming a traditional IRA deduction before the contribution is actually made. However, the contribution must be made by the due date of your return, not including extensions. If you haven't contributed funds to an Individual Retirement Account (IRA) for last tax year, or if you've put in less than the maximum allowed, you still have time to do so. You can contribute to either a traditional or Roth IRA until the April 15 due date for filing your tax return for last year, not including extensions.

Be sure to tell the IRA trustee that the contribution is for last year. Otherwise, the trustee may report the contribution as being for this year, when they get your funds.

If you report a contribution to a traditional IRA on your return, but fail to contribute by the deadline, you must file an amended tax return by using Form 1040X, Amended U.S. Individual Income Tax Return. You must add the amount you deducted to your income on the amended return and pay the additional tax accordingly.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : Thomson Reuters    

With the filing deadline quickly approaching, the Internal Revenue Service today urged everyone to remain vigilant against email and text scams aimed at tricking taxpayers about refunds or tax issues.

In day two of the annual Dirty Dozen tax scams campaign, the IRS again includes a warning about phishing and smishing schemes where cybercriminals try to steal a taxpayer's information through scam emails or text messages.

"Email and text scams are relentless, and scammers frequently use tax season as a way of tricking people," said IRS Commissioner Danny Werfel. "With people anxious to receive the latest information about a refund or other tax issue, scammers will regularly pose as the IRS, a state tax agency or others in the tax industry in emails and texts. People should be incredibly wary about unexpected messages like this that can be a trap, especially during filing season."

As a member of the Security Summit, the IRS, with state tax agencies and the nation's tax industry, have taken numerous steps over the last eight years to warn people to watch out for common scams and schemes each tax season that can contribute to identity theft. Along with the Security Summit initiative, the Dirty Dozen aims to protect taxpayers, businesses and the tax system from identity thieves and various hoaxes designed to steal money and information.

The Dirty Dozen is an annual IRS list of 12 scams and schemes that put taxpayers and the tax professional community at risk of losing money, personal data and more. Some items on the list are new, and some make a return visit. While the list is not a legal document or a formal listing of agency enforcement priorities, it is intended to alert taxpayers, businesses and tax preparers about scams at large.

Phish or smish: Avoid getting hooked by either

Taxpayers and tax professionals should be alert to fake communications posing as legitimate organizations in the tax and financial community, including the IRS and states. These messages arrive in the form of an unsolicited text or email to lure unsuspecting victims to provide valuable personal and financial information that can lead to identity theft. There are two main types:

• Phishing is an email sent by fraudsters claiming to come from the IRS or another legitimate organization, including state tax organizations or a financial firm. The email lures the victims into the scam by a variety of ruses such as enticing victims with a phony tax refund or frightening them with false legal/criminal charges for tax fraud.
   
• Smishing is a text or smartphone SMS message that uses the same technique as phishing. Scammers often use alarming language like, "Your account has now been put on hold," or "Unusual Activity Report" with a bogus "Solutions" link to restore the recipient's account. Unexpected tax refunds are another potential target for scam artists.

The IRS initiates most contacts through regular mail and will never initiate contact with taxpayers by email, text or social media regarding a bill or tax refund.

Never click on any unsolicited communication claiming to be the IRS as it may surreptitiously load malware. It may also be a way for malicious hackers to load ransomware that keeps the legitimate user from accessing their system and files.

Individuals should never respond to tax-related phishing or smishing or click on the URL link. Instead, the scams should be reported by sending the email or a copy of the text/SMS as an attachment to phishing@irs.gov. The report should include the caller ID (email or phone number), date, time and time zone, and the number that received the message.

Taxpayers can also report scams to the Treasury Inspector General for Tax Administration or the Internet Crime Complaint Center. The Report Phishing and Online Scams page at IRS.gov provides complete details. The Federal Communications Commission's Smartphone Security Checker is a useful tool against mobile security threats.

The IRS also warns taxpayers to be wary of messages that appear to be from friends or family but that are possibly stolen or compromised email or text accounts from someone they know. This remains a popular way to target individuals and tax preparers for a variety of scams. Individuals should verify the identity of the sender by using another communication method; for instance, calling a number they independently know to be accurate, not the number provided in the email or text.

Help stop fraud and scams

As part of the Dirty Dozen awareness effort, the IRS encourages people to report individuals who promote improper and abusive tax schemes as well as tax return preparers who deliberately prepare improper returns.

To report an abusive tax scheme or a tax return preparer, people should mail or fax a completed Form 14242, Report Suspected Abusive Tax Promotions or PreparersPDF and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.

Mail:

Internal Revenue Service Lead Development Center
Stop MS5040
24000 Avila Road
Laguna Niguel, California 92677-3405
Fax: 877-477-9135

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source: IRS 

If you own a home, and you itemize your deductions on Schedule A, you can claim a deduction for the interest paid. To be deductible, the interest you pay must be on a loan secured by your main home or a second home (including a second home that is also rented out for part of the year, so long as the personal use requirement is met). The loan can be a first or second mortgage, or a home improvement loan. To be deductible, the loan must be secured by your home and the proceeds must be used to buy, build, or substantially improve your home.

The interest deduction for home acquisition debt (that is, a loan taken out after December 15, 2017 to buy, build, or substantially improve a qualified home) is limited to debt of $750,000 ($375,000 if married filing separately). For home acquisition indebtedness incurred prior to December 16, 2017, the deduction is limited to $1 million ($500,000 if married filing separately)

In addition to the deduction for mortgage interest, points paid on the original purchase of your residence are also generally deductible. For more information about the mortgage interest deduction, see IRS Publication 936.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : Thomson Reuters     

A Coverdell Education Savings Account (ESA) is a savings account created as an incentive to help parents and students save for education expenses.

The total contributions for the beneficiary (who is under age 18 or is a special needs beneficiary) of this account in any year cannot be more than $2,000, no matter how many accounts have been established. The beneficiary will not owe tax on the distributions if, for a year, the distributions from an account are not more than a beneficiary's qualified education expenses at an eligible education institution. This benefit applies to higher education expenses as well as to elementary and secondary education expenses.

Generally, any individual (including the beneficiary) can contribute to a Coverdell ESA if the individual's modified adjusted gross (MAGI) income is less than an annual, constantly changing maximum. Usually, MAGI for the purpose of determining your maximum contribution limit is the adjusted gross income (AGI) shown on your tax return increased by the following exclusion from your income: foreign earned income of U.S. citizens or residents living abroad, housing costs of U.S. citizens or residents living abroad, and income from sources within Puerto Rico or American Samoa. Contributions to a Coverdell ESA may be made until the due date of the contributor's return, without extensions.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : Thomson Reuters

Following are some generally recognized financial planning tools that may help you reduce your tax bill.

Charitable Giving - Instead of selling your appreciated long-term securities, donate the stock instead and avoid paying tax on the unrealized gain while still getting a charitable tax deduction for the full fair market value.

Health Savings Accounts (HSAs) - If you have a high deductible medical plan you can open an HSA and make tax deductible contributions to your account to pay for medical expenses. Unlike flexible spending arrangements (FSAs), the contributions can carry over for medical expenses in future years.

ROTH IRAs - Contributions to a ROTH IRA are not tax deductible but the qualified distributions, including earnings are tax-free.

Municipal Bonds - Interest earned on these types of investments is tax-exempt.

Own a home - most of the cost of this type of investment is financed and the interest (on mortgages up to $750,000) is tax deductible. When the property is sold, individuals may exclude up to $250,000 ($500,000 if married jointly) of the gain.

Retirement Plans - Participate in your employer sponsored retirement plan, especially if there is a matching component. You will receive a current tax deduction and the tax-deferred compounding can add up to a large retirement savings.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : Thomson Reuters

Confused about whether you can contribute to a Roth IRA? The IRS suggests checking these simple rules:

1. Income To contribute to a Roth IRA, you must have compensation (e.g., wages, salary, tips, professional fees, bonuses). Your modified adjusted gross income must be less than:

• $196,000 — Married Filing Jointly.
• $10,000 — Married Filing Separately (and you lived with your spouse at any time during the year).
• $133,000 — Single, Head of Household, or Married Filing Separately (and you did not live with your spouse during the year).

2. Age There is no age limitation for Roth IRA contributions. Unlike traditional IRAs, you can be any age and still qualify to contribute to a Roth IRA.
3. Contribution Limits In general, if your only IRA is a Roth IRA, the maximum current year contribution limit is the lesser of your taxable compensation or $6,000 ($7,000 for those age 50 or over). The maximum contribution limit phases out if your modified adjusted gross income is within these limits:

• $193,000-$203,000 — Married Filing Jointly or Qualifying widow(er)
• $0-$10,000 — Married Filing Separately (and you lived with your spouse at any time during the year)
• $122,000-$137,000 — Single, Head of Household, or Married Filing Separately (and you did not live with your spouse)

4. Contributions to Spousal Roth IRA You can make contributions to a Roth IRA for your spouse provided you meet the income requirements.

* Note - threshold amounts listed above are for tax year 2019.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811

Source : Thomson Reuters 

The bank official who reviews the loan request is focused on repayment. Most loan officers request a copy of your business credit report to determine your ability to repay.

The lending officer will consider the following issues while using the information you provided and the credit report:

• Have you invested at least 25% or 50% of savings or personal equity into the business for the loan you are requesting? (Keep in mind that 100% of your business will not be financed by an investor.)
• Do your work history, your credit report and letters of recommendation show a healthy record of credit worthiness? This is a key factor.
• Do you have the training and experience necessary to operate a successful business?
• Do your loan proposal and business plan document your knowledge of and dedication to the success of the business?
• Is the cash flow of the business sufficient to make the monthly payments on the requested loan?

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source : Thomson Reuters 

The following main points should be contained in a good loan proposal:

GENERAL INFORMATION

• Reason for the loan: the exact purpose of the loan and why it is necessary.
• Amount needed: the specific amount needed to reach your goal.
• Business name and address, names of officers and their social security numbers.

DESCRIPTION OF BUSINESS

• Describe the type of business you have, its age, current business assets, and number of employees.
• Structure of ownership: describe the legal structure of the company.

MANAGEMENT PROFILE

• Prepare a short statement that is focused on each principal in your business; give details about education, background, accomplishments and skills.

MARKET INFORMATION

• State clearly the products of your company as well as its markets. Name the competition and explain how you plan to compete in the market. Describe what the business will do to satisfy the needs of its customers.

FINANCIAL INFORMATION

• Submit your own personal financial statements as well as those of the principal business owners.
• Financial statements: the income statements and balance sheets for the past three years. If you have a new business, provide the projected balance sheet and income statement.
• Specify the collateral that you are able and willing to give as security for the loan.

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source:   Thomson Reuters      

• The costs associated with getting a home equity loan are basically the same as a refinance.
• Appraisal
• A non-refundable application fee
• Up front points, which equal one percent of the entire credit limit
• Closing costs, which are the same as the closing costs you would pay upon purchasing a home
• Yearly fees and the possibility a transaction fee per draw

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source:   Thomson Reuters      

Although the process is complex and frustrating, raising capital is the most basic of all business activities. When looking for financing, there are various sources to consider. For most new businesses, the main source of capital comes from savings and other forms of personal resources. There are better options available than credit cards that are often used for financing, even a small business loan.

When beginning, entrepreneurs usually look to private sources like friends and family. Generally, the money is loaned at a low interest rate or interest free, which is very beneficial at the beginning.

The most common source of funding, not including personal resources, are credit unions and banks who will provide a loan if it is possible to show that your offer is worthwhile. Other sources are venture capital firms that aid businesses in exchange for partial or equity ownership.

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source:   Thomson Reuters      

After choosing a lender, you may be quoted a rate, which may "float" until the actual closing, meaning that it is not guaranteed. With a lock-in you are guaranteed that the interest rate will not change before your closing. You may want to ask for an agreement that ensures that your rate is capped, but allows you to take advantage of a lower rate if the rate lowers before you close.

There is usually a time limit that a lender will put on this guarantee, and if you don't close before that time, they no longer have to honor that lock-in. It is recommended that you stay in close contact with your loan officer during the process to ensure that you are able to close in a timely manner and get the locked-in rate.

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source : Thomson Reuters     

You must know the exact amount of money that you need, what your purpose is and how you will repay it in order to be successful in getting a loan. You must convince the lender in a written proposal that you are a good credit risk.

There are two basic kinds of loans, although terms vary by lender:

Short-term and long-term, maturity periods of up to one year are generally short-term, which include accounts receivable loans, working capital loans and lines of credit.

Maturities greater than a year and less than seven years is a typical long-term loan. Equipment and real estate loans can have maturity up to 25 years. Major business expenses such as purchasing real estate and facilities, durable equipment, construction, vehicles, furniture and fixtures, etc. are a few purposes for long-term loans.

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source : Thomson Reuters      

Almost everything you own and use for personal purposes, pleasure or investment is a capital asset. The IRS says when you sell a capital asset, such as stocks, the difference between the amount you sell it for and your basis, which is usually what you paid for it, is a capital gain or a capital loss. While you must report all capital gains, you may deduct only your capital losses on investment property, not personal property.

While you must report all capital gains, you may deduct only your capital losses on investment property, not personal property. A “paper loss” — a drop in an investment's value below its purchase price — does not qualify for the deduction. The loss must be realized through the capital asset's sale or exchange.

Capital gains and losses are classified as long-term or short-term, depending on how long you hold the property before you sell it. If you hold it more than one year, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term. For more information on the tax rates, refer to IRS Publication 544, Sales and Other Dispositions of Assets. If your capital losses exceed your capital gains, the excess is subtracted from other income on your tax return, up to an annual limit of $3,000 ($1,500 if you are married filing separately). Unused capital losses can be carried over indefinitely to future years to net against capital gains, however the annual limit still applies.

Capital gains and losses are reported on Form 8949, Sales and Other Dispositions of Capital Assets, summarized on Schedule D, Capital Gains and Losses, and then transferred to line 13 of Form 1040, Schedule 1. Accounting and planning for the sale and purchase of capital assets is usually a very complicated matter, so please contact us so that you may receive the professional advice you deserve.

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source : Thomson Reuters     

A home equity line of credit is a form of credit which allows you to borrow and use your home as collateral. Since for many, a home is their greatest asset, they tend to use these sorts of credit lines for large things like a college education for their children, medical expenses or for large unexpected bills as opposed to luxuries or day to day expenses.

After receiving a home equity line, one is approved for an amount of credit, or a maximum that may be borrowed at any given time for the duration of the plan.

On many occasions a lender will set a credit limit on a home equity loan by setting a percentage, after considering the amount of the appraised value of the home and the amount owed on the home.

After the line of credit is approved, you will be able to borrow up to the set limit, usually in the form of checks. In some instances a borrower may be given credit cards to utilize, sometimes with minimum spending requirements.

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source:   Thomson Reuters      

Don’t let scammers catch you unaware of their malicious tricks and schemes. Scammers are counting on you being uninformed of their deceptive tactics so that you will fall prey to their ruses. Don’t let it happen. Join us on National Slam the Scam Day, March 9, 2023, to help raise awareness and prevent scammers from succeeding in their crimes. 

National Slam the Scam Day is an initiative created in 2020 to raise public awareness to combat Social Security-related scams. Last year, it expanded to include other government imposter scams as reported losses from consumers climbed to more than $446 million in 2021. According to the Federal Trade Commission, reported losses for 2022 are nearly $509 million.

SSA OIG partners with other government agencies, non-profit organizations, and the private sector to increase awareness about how to spot government imposter scams and avoid becoming a victim.

Consumer awareness is the most effective method of deterring these crimes, therefore, Slam the Scam Day is held annually as part of the Federal Trade Commission’s National Consumer Protection Week, (NCPW), March 5-11, 2023.

In a government imposter scam, someone claims to be an SSA, or another government employee, and may ask for personal information, demand payment, or make threats. These scams primarily use the telephone, but scammers may also use email, text messages, social media, or U.S. mail.

“Working with our law enforcement and private sector partners to inform consumers about scammers and their deceptive practices remains a priority for my office.  We will continue promoting National Slam the Scam Day to help protect consumers from these predators. Slamming the scam begins with consumers quickly taking a step to hang up the phone, or delete suspicious texts and emails, without responding to the scammers,” said Gail S. Ennis, Inspector General for the Social Security Administration. “That remains the easiest and most effective method to avoid falling prey to these vicious scams.”

“We are dedicated to combatting Social Security scams and fraud,” said Kilolo Kijakazi, Acting Commissioner of Social Security.  “We will continue to use every tool at our disposal to protect the public and their critical benefits.  We urge Americans to remain vigilant, do not give out personal information or money, and report any scam attempts.”

Tips for spotting scams is a critical component because it’s important to keep consumers aware of current trends and past behavior patterns of the scammers.  SSA OIG provides resources on its website and posts tips and warnings on its social media platforms.

SSA OIG urges everyone to be cautious of any contact supposedly from a government agency telling you about a problem you don’t recognize and provides the following tips.

Real government officials will NEVER:

• threaten arrest or legal action against you unless you immediately send money;
• promise to increase your benefits or resolve a problem if you pay a fee or move your money into a protected account;
• require payment with gift cards, prepaid debit cards, wire transfer, Internet currency, or by mailing cash; or
• try to gain your trust by providing fake “documentation,” false “evidence,” or the name of a real government official.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : SSA

La Administración del Seguro Social y su Oficina del Inspector General siguen comprometidos para crear conciencia y proteger al público

No permita que los estafadores lo encuentren desprevenido con sus trucos maliciosos y engaños. Los estafadores cuentan con que usted no esté informado de sus tácticas engañosas para que caiga víctima de sus fraudes. No lo permita. El 9 de marzo de 2023 únase al «Día Nacional de Combatir el Fraude» para ayudar a crear conciencia y evitar que los estafadores tengan éxito en sus crímenes.

El «Día Nacional de Combatir el Fraude» es una iniciativa creada en el 2020 para aumentar la conciencia pública para combatir las estafas relacionadas con el Seguro Social. El año pasado, se expandió para incluir otras estafas relacionadas con otras agencias del gobierno que reportaron pérdidas de los consumidores de más de $446 millones en 2021. De acuerdo con la Comisión Federal de Comercio (FTC, por sus siglas en inglés), los datos reportados en 2022 son casi $509 millones.

La Oficina del Inspector General (OIG, por sus siglas en inglés) de la Administración del Seguro Social (SSA, por sus siglas en inglés) colabora con otras agencias del gobierno, organizaciones sin fines de lucro y el sector privado para crear conciencia sobre cómo detectar impostores y evitar convertirse en víctima.

Concienciar a los consumidores es la manera más efectiva de impedir estos crímenes, por eso el «Día Nacional de Combatir el Fraude» se lleva a cabo anualmente como parte de la National Consumer Protection Week Semana Nacional de la Protección al Consumidor (solo disponible en inglés, NCPW, por sus siglas en inglés), del 5 al 11 de marzo de 2023, establecida por la Comisión Federal de Comercio. En las estafas de impostores del gobierno, alguien dice ser del Seguro Social o de otra agencia del gobierno, y puede pedir información personal, demandar un pago o amenazarlo. Estas estafas generalmente son por teléfono, pero los estafadores pueden usar también correo electrónico, mensajes de texto, redes sociales o correo postal. Gail S. Ennis, Inspectora General del Seguro Social dijo: «Mi prioridad es trabajar con nuestro personal de orden público y nuestros socios del sector privado para informar a los consumidores sobre los estafadores y sus prácticas engañosas. Continuaremos promoviendo el Día Nacional de Combatir el Fraude para proteger a los consumidores de estos predadores. Combatir el fraude comienza con los consumidores tomando acciones rápidas como colgar el teléfono o borrar mensajes de texto y correos electrónicos sospechosos, sin responder a los estafadores. Ésta es la forma más fácil y eficaz de evitar ser víctima de estas estafas viciosas». Kilolo Kijakazi, la Comisionada Interina del Seguro Social, dijo: «Estamos dedicados a combatir las estafas y el fraude relacionados con el Seguro Social. Continuaremos usando todas las herramientas a nuestra disposición para proteger al público y sus beneficios. Le pedimos a las personas que viven en EE. UU. que estén alertas, y no den su información personal o dinero y reporten cualquier intento de fraude». Los consejos para detectar las estafas son un componente crítico para mantener informados a los consumidores de las tendencias actuales y los modelos anteriores de los estafadores. La Oficina del Inspector General del Seguro Social provee recursos en su sitio de internet y publica consejos y alertas en sus plataformas de las redes sociales. La Oficina del Inspector General del Seguro Social suplica a todos a que sean cuidadosos de cualquier contacto supuestamente de una agencia de gobierno diciéndole sobre un problema que usted no reconoce y brinda los siguientes consejos.

Funcionarios oficiales del gobierno NUNCA:

• lo amenazarán con arrestarlo o tomar acción legal si usted no manda dinero inmediatamente;
• le prometerán un aumento de sus beneficios o resolverán un problema si paga un honorario o mueve su dinero a una cuenta protegida;
• le pedirán que pague con tarjetas de regalo (gift cards), tarjetas de débito prepagadas, transferencias bancarias, criptomonedas o dinero en efectivo a través del correo postal; o

• tratarán de ganar su confianza enviando «documentación» y «evidencia» falsas o el nombre real de un funcionario del gobierno.

Si tiene alguna pregunta sobre contabilidad esencial para negocios,  impuestos nacionales, impuestos internacionales, representación ante el IRS, implicación de impuestos nacionales en transacciones de bienes inmuebles o estados financieros, llámenos al +1-305-274-5811.  

Fuente : SSA   

Aspectos para considerar antes de presentar

Los contribuyentes deben esperar para presentar la declaración hasta que reciban todos los documentos tributarios correspondientes, o corren el riesgo de cometer un error que podría causar demoras.

También deben revisar sus documentos cuidadosamente. Si alguna parte de la información es inexacta o falta, los contribuyentes deben comunicarse con el pagador de inmediato para que la corrija o para asegurarse de que el emisor tenga su dirección postal o de correo electrónico actual.

Crear una cuenta en línea del IRS puede ayudar a los contribuyentes a acceder de manera segura a la información sobre su cuenta de impuestos federales, incluidos pagos, archivos de impuestos y más.

Los archivos de impuestos organizados facilitan la preparación de una declaración de impuestos completa y precisa y pueden ayudar a los contribuyentes a encontrar deducciones o créditos pasados ​​por alto.

Es posible que los contribuyentes con un Número de Identificación Personal del Contribuyente o ITIN deban renovarlo si está vencido y se necesita en una declaración de impuestos federal de EE. UU. Si no renuevan un ITIN vencido, el IRS aún puede aceptar su declaración, pero puede retrasar el procesamiento o los créditos adeudados.

Cambios a créditos y deducciones para el año tributario 2022

A diferencia de 2020 y 2021, no hubo nuevos pagos de estímulo para 2022, por lo que los contribuyentes no deben esperar recibir un pago adicional en su reembolso de impuestos de 2023.

Sin embargo, los contribuyentes aún pueden calificar para la elegibilidad ampliada temporalmente del Crédito tributario de prima, un crédito reembolsable que ayuda a las personas y familias elegibles a cubrir las primas de su seguro médico comprado a través del Mercado de Seguros Médicos. Para recibir este crédito, contribuyentes deben cumplir con ciertos requisitos y presentar una declaración de impuestos con el Formulario 8962, Credito tributario de prima (en inglés).

También las reglas de elegibilidad cambiaron para reclamar el Crédito de vehículo limpio (en inglés) bajo la Ley de Reducción de la Inflación de 2022.

Algunos créditos tributarios regresaron a sus niveles de 2019. Esto significa que contribuyentes tal vez reciban un reembolso significativamente menor que el año tributario anterior.

Los cambios incluyen las cantidades para el Crédito tributario por ingreso del trabajo (EITC), el Crédito tributario por hijos (CTC) y el Crédito por cuidado de hijos y dependientes (en inglés) que regresarán a sus niveles antes de COVID.

• Para el EITC, contribuyentes eligibles sin hijos que recibieron aproximadamente $1,500 en 2021 ahora recibirán $560 para el año tributario 2022. 
• Aquellos que recibieron $3,600 por dependiente en 2021 por el CTC recibirán, si son eligibles, $2,000 por dependiente para el año tributario 2022.
• El Crédito por cuidado de hijos y dependientes regresa a su máximo de $2,100 en 2022 en vez de $8,000 en 2021.

Finalmente, contribuyentes que toman una deducción estándar no pueden tomar una deducción por encima de la línea para donaciones caritativas este año.

Año de transición para reportar el Formulario 1099-K

No hay cambios en la tributación de los ingresos o cómo se calcula el impuesto, incluyendo los ingresos de la venta de bienes personales. Contribuyentes deben informar todos los ingresos en su declaración de impuestos a menos que estén excluidos por ley.

El Formulario 1099-K, Transacciones con tarjeta de pago y red de terceros (en inglés) es una declaración informativa del IRS que se usa para informar determinadas transacciones de pago para mejorar el cumplimiento tributario voluntario. Contribuyentes usan esta declaración informativa junto con sus otros archivos tributarios para determinar correctamente su responsabilidad tributaria. Los Formularios 1099-K debieron ser suministrados por el pagador para el 31 de enero de 2023.

El Plan de Rescate Estadounidense de 2021 modificó el umbral de notificación para las organizaciones de pago de terceros (TPSOs), que incluyen aplicaciones de pagos y TPSOs en línea. El nuevo umbral requiere que se reporten transacciones en exceso de $600 al año, un cambio al umbral anterior de un exceso de $20,000 y de más de 200 transacciones al año. Se les requiere a los TPSOs a reportar los pagos por bienes y servicios.

El 23 de diciembre de 2022, el IRS anunció que el año calendario 2022 servirá como un año de transición para el umbral reducido de reportaje de $600.

Aunque el requisito reducido para reportar el Formulario 1099-K se retrasó para los TPSOs, algunas personas que no hayan recibido un Formulario 1099-K en el pasado tal vez reciban uno. Algunas personas tal vez reciban un Formulario 1099-K por la venta de artículos personales o en situaciones en donde hayan recibido un Formulario 1099-K por error (por transacciones entre amigos y familiares, o por gastos compartidos).

Dinero recibido como un regalo o para reembolsar comidas compartidas o para pagar renta no se debe reportar en un 1099-K. Los pagos deben indicar si fueron por motivos personales para familia o amigos o si fue una transacción de negocios para bienes y servicios.

Si la información en un 1099-K es incorrecta, contribuyentes deben comunicarse con el pagador inmediatamente. El nombre del pagador aparece en la parte superior izquierda del formulario. El contribuyente debe mantener una copia de toda la correspondencia con el pagador para sus registros.

Si recibe un Formulario 1099-K por error y no puede obtener un Formulario 1099-K corregido, consulte la orientación actualizada en Cómo entender su Formulario 1099-K.

Si tiene alguna pregunta sobre contabilidad esencial para negocios,  impuestos nacionales, impuestos internacionales, representación ante el IRS, implicación de impuestos nacionales en transacciones de bienes inmuebles o estados financieros, llámenos al +1-305-274-5811.  

Fuente : IRS    

Things to consider before filing

Taxpayers should wait to file until they receive all their proper tax documents, or they risk making a mistake that could cause delays.

They should also review their documents carefully. If any of the information is inaccurate or missing, taxpayers should contact the payer right away for a correction or to ensure the issuer has their current mailing or email address.

Creating an IRS Online Account can help taxpayers securely access information about their federal tax account, including payments, tax records and more.

Organized tax records make preparing a complete and accurate tax return easier and may help taxpayers find overlooked deductions or credits.

Taxpayers with an Individual Taxpayer Identification Number or ITIN may need to renew it if it's expired and is needed on a U.S. federal tax return. If they don't renew an expiring or expired ITIN, the IRS can still accept their return, but it may delay processing or credits owed.

Changes to credits and deductions for tax year 2022

Unlike 2020 and 2021, there were no new stimulus payments for 2022, so taxpayers should not expect to get an additional payment in their 2023 tax refund.

However, taxpayers may still qualify for temporarily expanded eligibility of the Premium Tax Credit, a refundable credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace. To get this credit, taxpayers must meet certain requirements and file a tax return with Form 8962, Premium Tax Credit.

Also, eligibility rules changed to claim a Clean Vehicle Credit under the Inflation Reduction Act of 2022.

Some tax credits return to 2019 levels. This means that taxpayers will likely receive a significantly smaller refund compared with the previous tax year.

Changes include amounts for the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC) and the Child and Dependent Care Credit will revert to pre-COVID levels.

• For the EITC, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $560 for the 2022 tax year.
• Those who got $3,600 per dependent in 2021 for the CTC will, if eligible, get $2,000 per dependent for the 2022 tax year.
• The Child and Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021.

Finally, taxpayers that don't itemize and take the standard deduction cannot deduct their charitable contributions this year.

Transition year for 1099-K reporting

There are no changes to what counts as income or how tax is calculated, including income from the sale of personal assets. Taxpayers must report all their income on their tax return unless it's excluded by law.

Form 1099-K, Payment Card and Third-Party Network Transactions, is an IRS information return used to report certain payment transactions and helps to improve voluntary tax compliance. Taxpayers use this information return with their other tax records to determine their correct tax liability. 2022 Forms 1099-K should have been furnished to the payee by Jan. 31, 2023.

The American Rescue Plan of 2021 changed the reporting threshold for third-party settlement organizations, including payment apps and online settlement organizations. The new threshold requires reporting of transactions in excess of $600 per year; changed from the previous threshold of an excess of $20,000 and an excess of 200 transactions per year. Third-party settlement organizations are required to report payments for goods and services.

On Dec. 23, 2022, the IRS announced that calendar year 2022 will be treated as a transition year for the reduced reporting threshold of $600.

Even though the Form 1099-K reduced reporting requirement for third-party settlement organizations is delayed, some individuals may still receive a Form 1099-K who have not received one in the past. Some individuals may receive a Form 1099-K for the sale of personal items or in situations where they received a Form 1099-K in error (i.e. for transactions between friends and family, or expense sharing).

Money received as a gift or to reimburse shared meals or rent should not be reported on a 1099-K. Payments should indicate whether they are personal to family and friends or a business transaction for goods and services.

If the information is incorrect on the 1099-K, taxpayers should contact the payer immediately. The payer's name appears in the upper left corner on the form. The taxpayer should keep a copy of all correspondence with the payer with their records.

If a Form 1099-K is received in error and a corrected Form 1099-K can't be obtained, follow the IRS' updated guidance at Understanding Your Form 1099-K.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : IRS  

It is highly recommended that you prepay as much of your mortgage as possible every month, which will drastically reduce the total amount that you pay.

However, there are times where this could be disadvantageous.

If you are in a situation where you don't have funds to cover three to six months of expenses, it is recommended that you save that amount before you pay additional amounts on your mortgage.

If you have a large amount of credit card debt, over the long run, you will save more money by knocking down those high interest loans first.

There also may be times where that money would be more wisely invested in the market, depending on the expected rate of return versus how much you would save in early payments.

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source:   Thomson Reuters 

Actualizada el 1/11/23: Esta nota de prensa se actualizó para incluir los condados de Alameda, Contra Costa, Fresno, Kings, Lake, Madera, Mono, San Benito, San Francisco y Tulare.

Las víctimas de las tormentas en California ahora tienen hasta el 15 de mayo de 2023 para presentar varias declaraciones de impuestos federales individuales y comerciales y realizar pagos de impuestos, anunció hoy el Servicio de Impuestos Internos.

El IRS está ofreciendo alivio a cualquier área designada por la Agencia Federal para el Manejo de Emergencias (FEMA, por sus siglas en inglés). Esto significa que las personas y hogares que residen o tienen un negocio en los condados de Alameda, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kings, Los Angeles, Lake, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquín, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Ventura, Yolo y Yuba son elegibles para el alivio tributario. Otras áreas que se añadan después también pueden ser elegibles para el mismo alivio. La lista actual de localidades elegibles siempre está disponible en la página de Alivio en situaciones de desastre en IRS.gov.

El alivio tributario pospone varios plazos de presentación y pago de impuestos que ocurrieron a partir del 8 de enero de 2023. Como resultado, las personas y empresas afectadas tendrán hasta el 15 de mayo de 2023 para presentar declaraciones y pagar los impuestos que originalmente adeudaban durante este período.

Esto incluye las declaraciones de impuestos individuales que vencen el 18 de abril al igual que varias declaraciones comerciales de 2022 que normalmente vencen el 15 de marzo y 18 de abril. Entre otras cosas, esto significa que contribuyentes elegibles tendrán hasta el 15 de mayo para hacer contribuciones a sus cuentas IRA y de arreglos de reembolsos de salud (HSAs).

Además, agricultores que eligieron no hacer pagos de impuestos estimados y normalmente presentan sus declaraciones para el 1ro de marzo ahora tendrán hasta el 15 de mayo de 2023 para presentar su declaración de 2022 y pagar cualquier impuesto adeudado. La fecha límite del 15 de mayo de 2023 también se aplica a los pagos trimestrales de impuestos sobre los ingresos estimados que vencen el 17 de enero de 2023 y 18 de abril de 2023. Esto significa que contribuyentes individuales pueden omitir el pago de impuestos estimados del cuarto trimestre, que normalmente vence el 17 de enero de 2023, e incluirlo con la declaración de impuestos de 2022 que presenten en o antes del 15 de mayo.

La fecha límite del 15 de mayo de 2023 también aplica para las declaraciones trimestrales de impuestos sobre la nómina e impuestos especiales que normalmente vencen el 31 de enero y 30 de abril de 2023. Además, las multas por depósitos de impuestos sobre el consumo y la nómina que vencen en o después del 8 de enero de 2023 y antes del 23 de enero de 2023 se reducirán siempre que los depósitos se realicen para el 23 de enero de 2023.

La página de Ayuda y alivio por emergencia en casos de desastre para las personas y los negocios tiene detalles acerca de otras declaraciones, pagos y acciones relacionadas con impuestos que son elegibles para el tiempo adicional.

El IRS proporciona automáticamente la presentación y el alivio de multas a cualquier contribuyente con una dirección registrada con el IRS ubicada en el área del desastre. Por lo tanto, los contribuyentes no necesitan comunicarse con la agencia para obtener este alivio. Sin embargo, si un contribuyente afectado recibe un aviso de multa por presentación tardía o pago atrasado del IRS que tiene una fecha de vencimiento de depósito, pago o presentación original o extendida que cae dentro del período de aplazamiento, el contribuyente debe llamar al número que figura en el aviso para solicitar la reducción de multa.

El IRS trabajará con cualquier contribuyente que viva fuera del área del desastre, pero cuyos archivos necesarios para cumplir con una fecha límite que ocurra durante el período de aplazamiento se encuentren en el área afectada. Contribuyentes elegibles para el alivio que viven fuera del área de desastre deben comunicarse con el IRS al 866-562-5227. Esto también incluye a los trabajadores que ayudan en las actividades de socorro que están afiliados a un gobierno reconocido como una organización filantrópica.

Las personas y empresas en un área de desastre declarada por el gobierno federal que sufrieron pérdidas relacionadas con el desastre no aseguradas o no reembolsadas pueden optar por reclamarlas en la declaración del año en que ocurrió la pérdida (en este caso, la declaración 2023 que normalmente se presenta el próximo año) o en la declaración del año anterior (2022, que normalmente se presenta en esta temporada de impuestos). Deben asegurarse de escribir el número de declaración de FEMA – 3691-EM − en cualquier declaración reclamando una pérdida. Consulte la Publicación 547 (SP), Hechos Fortuitos, Desastres y Robos para detalles.

El alivio tributario es parte de una respuesta federal coordinada a causa de los daños por estas tormentas y se basa en las evaluaciones de daños locales realizadas por FEMA. Para obtener información acerca de la recuperación ante desastres, visite disasterassistance.gov.

Si tiene alguna pregunta sobre contabilidad esencial para negocios,  impuestos nacionales, impuestos internacionales, representación ante el IRS, implicación de impuestos nacionales en transacciones de bienes inmuebles o estados financieros, llámenos al +1-305-274-5811.  

Fuente : IRS     

The Department of the Treasury and the Internal Revenue Service provided guidance to establish a program to provide solar and wind power to certain low-income areas under the Inflation Reduction Act.

Notice 2023-17PDF establishes the Low-Income Communities Bonus Credit Program and provides initial guidance for potential applicants for allocations of calendar year 2023 capacity limitation.

This initial guidance provides the general eligibility requirements, a description of the four statutory facility categories for which an eligible facility may request an allocation, amounts of capacity limitation reserved for each facility category, a general description of the program design and goals, the application review process, and the proposed timeline for opening two 60-day application periods in 2023 based on project categories.

This guidance applies to owners of certain solar and wind facilities placed in service in connection with low-income communities that are eligible for the section 48 energy investment credit.

The Treasury Department and the IRS will issue additional program guidance outlining specific application procedures, applicable definitions, and other information necessary to submit an application.

More information may be found on the Inflation Reduction Act of 2022 page on IRS.gov.

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source : IRS    

In order to refinance your home, the current market rate should be at least 2 percentage points lower than what you are paying on your mortgage. Speak with a lender to see what rate you may be able to get. Remember to factor in costs like appraisals, points from the lender, and others, which may not be apparent in your initial price assessment.

After assessing that cost, get a quote of what your total payment would be after refinancing. The simplest way to find out how long it will take to recover the refinancing costs will be to divide your closing costs by the monthly savings with your new monthly payment.

Also take into consideration how long you plan on holding your home. It may not make sense to refinance the home if you plan on selling in the near future.

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source : Thomson Reuters      

These interests are deductible, some fully, some partially:

• Education-related interest
• Business interest
• Investment interest
• Mortgage interest

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source : Thomson Reuters     

This could be a low-cost option for borrowing but there is some risk involved. Deductions are not allowed for the interest unless that loan is used to invest in a business.

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source:   Thomson Reuters      

Usually people that make a down payment of less than 20% are required to pay private mortgage insurance by their lender. Once you reach 20% equity, PMI is cancelled, and any money accrued in your escrow account towards it will be credited to you.

If you have any questions about essential accounting for your business, domestic taxes, international taxes, representation before the IRS, tax implications of real estate transactions or financial statements, call us at +1-305-274-5811.

Source:   Thomson Reuters     

A new law was recently signed that will help Americans save more for retirement, though many of the provisions don’t kick in for a few years. The Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0) is meant to build on the original SECURE Act of 2019, which made major changes to the required minimum distribution (RMD) rules and other retirement provisions.

Retirement highlights

Here are some of the significant retirement plan changes and when they’ll become effective:

• The age for beginning RMDs is going up. Employer-sponsored qualified retirement plans, traditional IRAs and individual retirement annuities are subject to RMD rules. They require that benefits start being distributed by a specific beginning date. Under the new law, the age used to determine distributions increases from age 72 to age 73 starting on January 1, 2023. It will then increase to age 75 starting on January 1, 2033.
• There will be higher “catch-up” contributions for 401(k) participants ages 60 through 63. Currently, participants in certain retirement plans can make additional catch-up contributions if they’re age 50 and older. The limit on catch-up contributions to 401(k) plans is $7,500 for 2023. Secure 2.0 will raise the 401(k) plan catch-up contribution limits to the greater of $10,000 or 150% of the regular catch-up amount for individuals ages 60 through 63. The higher amounts will be indexed for inflation after 2025. This provision will take effect for taxable years beginning after December 31, 2024. (There will also be increased catch-up amounts for SIMPLE plans.)
• Tax-free rollovers will be allowed from 529 accounts to Roth IRAs. SECURE 2.0 will permit beneficiaries of 529 college savings accounts to make direct trustee-to-trustee rollovers from a 529 account in their names to their Roth IRAs without tax or penalty. Several rules apply. This provision is effective for distributions after December 31, 2023.
• “Matching” contributions will be permitted for employees with student loan debt. The new law will allow an employer to make matching contributions to 401(k) and certain other retirement plans with respect to “qualified student loan payments.” The result of this provision is that employees who can’t afford to save money for retirement because they’re repaying student loan debt can still receive matching contributions from their employers into retirement plans. Taxpayers can receive these matching contributions even if they are not contributing to their own retirement accounts. This will take effect starting after December 31, 2023.

Nonretirement provisions

There are also some parts of the law that aren’t related to retirement plans, including a change to Achieving a Better Life Experience (ABLE) accounts. Tax-exempt ABLE programs are established by states to assist individuals with disabilities.

Currently, in order to be the beneficiary of an ABLE account, an individual’s disability or blindness must have occurred before age 26. SECURE 2.0 increases this age limit to 46, which will make more people eligible to benefit from an ABLE account. This provision is effective for tax years beginning after December 31, 2025.

Just the beginning

These are only some of the many provisions in SECURE 2.0. Contact us if you have any questions about your situation.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +1-305-274-5811.

Source: Thomson Reuters    

El IRS recomienda varias cosas que las personas deben tener en cuenta para una experiencia de presentación sin problemas este año:

Tenga la información correcta antes de presentar. El IRS alienta a todos a tener toda la información que necesitan para estar en la mejor posición para presentar una declaración completa y precisa. Organice y recopile los archivos tributarios de 2022, incluidos los números de seguro social, los números de identificación de contribuyentes individuales, los números de identificación de contribuyentes de adopción y los Número de Identificación Personal para la Protección de la Identidad válidos para el año calendario 2023. Tener una declaración de impuestos precisa puede evitar demoras o avisos posteriores del IRS. A veces, esto significa esperar para asegurarse de que las personas hayan contabilizado todos sus ingresos y los documentos relacionados. Esto es especialmente importante para las personas que pueden recibir uno de los diversos Formularios 1099 de bancos u otros pagadores que reportan distribuciones de compensación por desempleo, dividendos, pensiones, anualidades o planes de jubilación.

Las personas también deben recordar que la mayoría de los ingresos están sujetos a impuestos, incluidos los ingresos por desempleo, los intereses recibidos o el dinero ganado de la economía informal o los activos digitales. Las personas deben asegurarse de informar el monto correcto en su declaración de impuestos para evitar demoras en el procesamiento.

Visite IRS.gov primero si tiene preguntas. El IRS les recuerda a las personas que primero visiten IRS.gov para preguntas comunes y también para verificar el estado de sus reembolsos. IRS.gov tiene mucha de la misma información que tienen los asistentes telefónicos del IRS.

El IRS anticipa realizar mejoras significativas en el servicio telefónico este año para los contribuyentes y los profesionales de impuestos a medida que se complete más capacitación para los nuevos asistentes telefónicos en las próximas semanas. Sin embargo, el IRS enfatiza que es importante tener en cuenta que los volúmenes de llamadas se mantienen en niveles históricamente altos. El IRS insta a las personas a visitar IRS.gov para obtener la información que necesitan.

"Nuestros volúmenes telefónicos continúan en niveles muy altos", dijo O'Donnell. "Para un acceso más rápido a la información, instamos a las personas a comenzar con IRS.gov. Desde allí, los contribuyentes pueden acceder rápidamente a la variedad de recursos gratuitos disponibles para ayudar a los contribuyentes en cualquier momento, de día o de noche".

Acelere los reembolsos al presentar electrónicamente y escoger el depósito directo. Hay pasos importantes que las personas pueden tomar para ayudar a garantizar que su declaración de impuestos y su reembolso se procesen sin demoras. Lo más importante es presentar electrónicamente con depósito directo. Esta continúa siendo la manera más rápida y fácil de presentar y recibir un reembolso. Para evitar demoras en el procesamiento, las personas deben evitar presentar declaraciones en papel siempre que sea posible.

Para acelerar los reembolsos, el IRS insta a las personas a presentar electrónicamente la información de depósito directo tan pronto como tengan todo lo necesario para presentar una declaración precisa. Las personas pueden usar una cuenta bancaria, una tarjeta de débito prepaga o una aplicación móvil para usar el depósito directo y deberán proporcionar números de ruta y de cuenta. Aprenda cómo abrir una cuenta en un banco asegurado por la FDIC o a través de la herramienta localizador de cooperativas de crédito y ahorro.

Si tiene alguna pregunta sobre contabilidad esencial para negocios,  impuestos nacionales, impuestos internacionales, representación ante el IRS, implicación de impuestos nacionales en transacciones de bienes inmuebles o estados financieros, llámenos al +1-305-274-5811.

Fuente : IRS

The Internal Revenue Service reminds taxpayers that they must again answer a digital asset question and report all digital asset-related income when they file their 2022 federal income tax return, as they did for fiscal year 2021. The term "digital assets" has replaced "virtual currencies," a term used in previous years.

The question, which appears at the top of Forms 1040, Individual Income Tax Return; 1040-SR, U.S. Tax Return for Seniors; and 1040-NR, U.S. Nonresident Alien Income Tax Return, was revised this year to update terminology.

In addition, the instructions for answering the question were expanded and clarified to help taxpayers answer it correctly. All taxpayers must answer the question regardless of whether they engaged in any transactions involving digital assets.

For the 2022 tax year it asks: "At any time during 2022, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, gift or otherwise dispose of a digital asset (or a financial interest in a digital asset)?"

What is a digital asset?

A digital asset is a digital representation of value which is recorded on a cryptographically secured, distributed ledger. Common digital assets include:

• Convertible virtual currency and cryptocurrency
• Stablecoins
• Non-fungible tokens (NFTs)

Everyone must answer the question.

Everyone who files Form 1040, Form 1040-SR or Form 1040-NR must check one box, answering either "Yes" or "No" to the digital asset question. The question must be answered by all taxpayers, not just those who engaged in a transaction involving digital assets in 2022.

When to check "Yes"

Normally, a taxpayer must check the "Yes" box if they:

• Received digital assets as payment for property or services provided;
• Transferred digital assets for free (without receiving any consideration) as a bona fide gift;
• Received digital assets resulting from a reward or award;
• Received new digital assets resulting from mining, staking and similar activities;
• Received digital assets resulting from a hard fork (a branching of a cryptocurrency's blockchain that splits a single cryptocurrency into two);
• Disposed of digital assets in exchange for property or services;
• Disposed of a digital asset in exchange or trade for another digital asset;
• Sold a digital asset; or
• Otherwise disposed of any other financial interest in a digital asset.

How to report digital asset income

Besides checking the "Yes" box, taxpayers must report all income related to their digital asset transactions. For example, an investor who held a digital asset as a capital asset and sold, exchanged or transferred it during 2022 must use Form 8949, Sales and other Dispositions of Capital Assets, to figure their capital gain or loss on the transaction and then report it on Schedule D (Form 1040), Capital Gains and Losses, or Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, in the case of gift.

If an employee was paid with digital assets, they must report the value of assets received as wages. Similarly, if they worked as an independent contractor and were paid with digital assets, they must report that income on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). Schedule C is also used by anyone who sold, exchanged or transferred digital assets to customers in connection with a trade or business.

When to check "No"

Normally, a taxpayer who merely owned digital assets during 2022 can check the "No" box as long as they did not engage in any transactions involving digital assets during the year. They can also check the "No" box if their activities were limited to one or more of the following:

• Holding digital assets in a wallet or account.
• Transferring digital assets from one wallet or account they own or control to another wallet or account they own or control; or
• Purchasing digital assets using U.S. or other real currency, including through electronic platforms such as PayPal and Venmo.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +1-305-274-5811.

Source : IRS   

El Servicio de Impuestos Internos les recordó hoy a los contribuyentes que deben contestar nuevamente la pregunta acerca de activos digitales y reportar todo ingreso relacionado con activos digitales al presentar la declaración de impuestos federales de 2022, como lo hicieron para el año tributario 2021. El término "activos digitales" reemplazó "monedas virtuales", usado en años previos.

La pregunta que aparece en la parte superior de los Formularios 1040(SP), Declaración de Impuestos de los Estados Unidos Sobre los Ingresos Personales, 1040-SR(SP), Declaración de impuestos de los EE. UU para personas de 65 años de edad o más y 1040-NR(SP), Declaración de Impuestos sobre los Ingresos de Extranjeros No Residentes de los Estados Unidos, se revisó este año para actualizar la terminología.

Además, se aclararon y ampliaron las instrucciones para responder a la pregunta y ayudar a los contribuyentes a responderla correctamente. Todos los contribuyentes deben responder la pregunta, independientemente de si participaron en transacciones que involucren activos digitales.

La pregunta para el año tributario 2022 es: "¿En cualquier momento durante el año 2022, usted: (a) recibió (como recompensa, premio o pago por propiedad o servicios); o (b) vendió, intercambió, regaló o dispuso de otro modo de un activo digital (o un interés financiero en un activo digital)?"

Qué es un activo digital

Un activo digital es una representación digital de valor que se registra en un libro de contabilidad distribuido con seguridad criptográfica o cualquier tecnología similar. Los activos digitales comunes incluyen:

• Moneda virtual convertible y criptomoneda
• Monedas estables
• Fichas no fungibles (NFT, por sus siglas en inglés)

Todas las personas deben contestar la pregunta

Todos los que presenten el Formulario 1040, Formulario 1040-SR o el Formulario 1040-NR debe marcar una casilla, respondiendo "Sí" o "No" a la pregunta acerca de activos digitales. Todos los contribuyentes deben responder la pregunta, no solo aquellos que participaron en una transacción que involucra activos digitales en 2022.

Cuando marcar "Sí"

Generalmente, un contribuyente debe marcar la casilla, "Sí" cuando:

• Recibió activos digitales como pago por bienes o servicios prestados.
• Transfirió activos digitales de forma gratuita (sin proporcionar ninguna contraprestación) como un regalo de buena fe.
• Recibió activos digitales como resultado de un premio o recompensa.
• Recibió activos digitales como resultado de actividades de minado o participación y actividades similares; 
• Recibió activos digitales como resultado de una bifurcación dura; 
• Eliminó activos digitales a cambio de bienes o servicios;
• Eliminó un activo digital a cambio o intercambio por otro activo digital;
• Vendió un activo digital.
• Cualquier otra disposición de un interés financiero en activos digitales. 

Cómo reportar ingresos de activos digitales

Además de marcar la casilla "Sí", los contribuyentes deben informar todos los ingresos relacionados con sus transacciones de activos digitales. Por ejemplo, un inversionista que poseía un activo digital como activo de capital y lo vendió, intercambió o trasfirió durante 2022 debe usar el Formulario 8949, Ventas y otras disposiciones de ganancias capitales (en inglés) para calcular su ganancia o pérdida de capital en la transacción y luego informarlo en el  Anexo D (Formulario 1040), Ganancias y pérdidas de capital (en inglés) o Formulario 709, Declaración de impuestos sobre donaciones (y transferencias con salto generacional) de los Estados Unidos (en inglés) en el caso de ser un regalo.

Si a un empleado se le pagó con activos digitales, debe informar el valor de los activos recibidos como salarios. De manera similar, si trabajaron como contratistas independientes y se les pagó con activos digitales, deben informar esos ingresos en el Anexo C (Formulario 1040), Ganancia o pérdida de negocio (Empresa por cuenta propia). El Anexo C también lo usa cualquier persona que vendió, intercambió o transfirió activos digitales a clientes en relación con un comercio o negocio.

Cuando marcar "No"

Normalmente, un contribuyente que simplemente poseyó activos digitales durante 2022 puede marcar la casilla "No", siempre y cuando no haya realizado ninguna transacción que involucre activos digitales durante el año. También pueden marcar la casilla "No" si sus actividades se limitaron a una o más de las siguientes;

• Tener activos digitales en una billetera o cuenta.
• Transferir activos digitales de una billetera o cuenta a otra billetera o cuenta que tengan.
• Comprar activos digitales con moneda estadounidense u otra moneda real, incluso a través de plataformas electrónicas como PayPal y Venmo.

Si tiene alguna pregunta sobre contabilidad esencial para negocios,  impuestos nacionales, impuestos internacionales, representación ante el IRS, implicación de impuestos nacionales en transacciones de bienes inmuebles o estados financieros, llámenos al +1-305-274-5811.

Source : IRS     

In recent years, many people have pivoted to working from home, and that brings up tax questions. If you’re one of those people, you might wonder, “Can I claim the home office deduction on my 2022 tax return?”

The short answer is only if you’re self-employed. Employees can’t currently claim home office expenses, and even self-employed taxpayers must follow strict rules to claim deductions.

Numerous write-offs

If you qualify, you can deduct the “direct expenses” of a home office. This includes the costs of painting or repairing the home office and depreciation deductions for furniture and fixtures used there. You can also deduct the “indirect” expenses of maintaining the office. This includes the allocable share of utility costs, depreciation and insurance for your home, as well as the allocable share of mortgage interest, real estate taxes and casualty losses.

In addition, if your home office is your “principal place of business,” the eligible costs of traveling between your home office and other work locations are deductible transportation expenses, rather than nondeductible commuting costs.

Tests for deductibility

You can deduct your expenses if you meet any of these three tests:

1. Principal place of business. You are entitled to deductions if you use your home office, exclusively and regularly, as your principal place of business. Your home office is your principal place of business if it satisfies one of two tests. You satisfy the “management or administrative activities test” if you use your home office for administrative or management activities of your business, and you meet certain other requirements. You meet the “relative importance test” if your home office is the most important place where you conduct business, compared with all the other locations where you conduct that business.

2. Meeting place. You’re entitled to home office deductions if you use your home office, exclusively and regularly, to meet or deal with patients, clients or customers. The patients, clients or customers must physically come to the office.

3. Separate structure. You’re entitled to home office deductions for a home office, used exclusively and regularly for business, that’s located in a separate unattached structure on the same property as your home. For example, this could be in an unattached garage, artist’s studio or workshop.

You may also be able to deduct the expenses of certain storage space for storing inventory or product samples. If you’re in the business of selling products at retail or wholesale, and if your home is your sole fixed business location, you can deduct home expenses allocable to space that you use to store inventory or product samples.

Know the limitations.

The amount of home office deductions for self-employed taxpayers is subject to various limitations. Proper planning is key to claiming the maximum deduction for your home office expenses. Contact us if you’d like to discuss your situation.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +1-305-274-5811.

Source :Thomson Reuters      

The Internal Revenue Service reminds taxpayers who earn wages to use the Tax Withholding Estimator now to adjust their 2023 withholding. People's tax situations occasionally change through marriage or divorce, adding a child or having one move out on their own. Checking now and making necessary adjustments early in the year may help them avoid the need for quarterly estimated tax payments.

The Tax Withholding Estimator online tool helps taxpayers see if they may get a refund or need to make a payment directly to the IRS to avoid a tax bill and penalties next year.

Income taxes are pay-as-you-go and are normally paid during the year as income is received through withholding from paychecks, pension payments, Social Security benefits or certain other government payments.

Having a second job or non-wage income from unemployment, self-employment, annuity income, the gig economy or digital assets may require taxpayers make quarterly estimated tax payments to avoid a balance due when they file.

In addition, various financial transactions, especially late in the year, can have an unexpected tax impact. Examples include year-end and holiday bonuses, stock dividends, capital gain distributions from mutual funds and stocks, bonds, virtual currency, real estate or other property sold at a profit.

Tax Withholding Estimator

The Tax Withholding Estimator, also available in Spanish, can help wage earners determine if they have too much or too little tax withheld. Taxpayers may use the estimate to change their withholding amount and submit a new Form W-4, Employee's Withholding Certificate, to their employer. The tool offers those who earn wages step-by-step help for tailoring the amount of income tax they should have withheld from their paycheck.

Make a tax payment

The fastest and easiest way to make an estimated tax payment is to do so electronically using IRS Direct Pay or the Treasury Department's Electronic Federal Tax Payment System (EFTPS). For information on other payment options, visit Pay Online. If paying by check, be sure to make the check payable to the "United States Treasury."

Other items may affect 2023 taxes

Some unforeseen life events can trigger a need to make withholding adjustments. Here are some tools to help taxpayers know how to make adjustments due to different scenarios:

• Tips for using the IRS Tax Withholding Estimator.
• What to do with your Tax Withholding Estimator results.
• About Form W-4, Employee's Withholding Certificate – including recent updates, related forms and instructions on how to file.
• Coronavirus tax relief – help for taxpayers, businesses, tax-exempt organizations and others – including health plans – affected by the coronavirus (COVID-19).
• Disaster Assistance and Emergency Relief for Individuals and Businesses – special tax law provisions when the federal government declares their location a major disaster area.
• IRS Publication 4128, Tax Impact of Job LossPDF – explains how this unfortunate circumstance can create new tax issues.
• Workers moving into the gig economy due to the pandemic – advises people earning income in the gig economy.
• Publication 505, Tax Withholding and Estimated Tax, has additional details, including worksheets and examples, that can be helpful to those who have special situations.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: IRS    

Are you in the middle of a disagreement with the IRS? One of the guaranteed rights for all taxpayers is the right to appeal. If you disagree with the IRS about the amount of your tax liability or about proposed collection actions, you have the right to ask the IRS Appeals Office to review your case.

IRS Publication 1, Your Rights as a Taxpayer, explains some of your most important taxpayer rights. During their contact with taxpayers, IRS employees are required to explain and protect these taxpayer rights, including the right to appeal.

The IRS appeals system is for people who do not agree with the results of an examination of their tax returns or other adjustments to their tax liability. In addition to examinations, you can appeal many other things, including:

• Collection actions such as liens, levies, seizures, installment agreement terminations and rejected offers-in-compromise
• Penalties and interest
• Employment tax adjustments and the trust fund recovery penalty

Appeals conferences are informal meetings. The local Appeals Office, which is independent of the IRS office that proposed the disputed action, can sometimes resolve an appeal by telephone or through correspondence.

The IRS also offers an option called Fast Track Mediation, during which an appeals or settlement officer attempts to help you and the IRS reach a mutually satisfactory solution. Most cases not docketed in court qualify for Fast Track Mediation. You may request Fast Track Mediation at the conclusion of an audit or collection determination, but prior to your request for a normal appeals hearing. Fast Track Mediation is meant to promote the early resolution of a dispute. It doesn't eliminate or replace existing dispute resolution options, including your opportunity to request a conference with a manager or a hearing before Appeals. You may withdraw from the mediation process at any time.

When attending an informal meeting or pursuing mediation, you may represent yourself or you can be represented by an attorney, certified public accountant or individual enrolled to practice before the IRS.

If you and the IRS appeals officer cannot reach agreement, or if you prefer not to appeal within the IRS, in most cases you may take your disagreement to federal court. But taxpayers can settle most differences without expensive and time-consuming court trials.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters      

El Servicio de Impuestos Internos les recuerda a los contribuyentes que reciben ingresos que usen el Estimador de Retención de Impuestos en IRS.gov ahora para ajustar sus retenciones de 2023. La situación tributaria de las personas cambia ocasionalmente a través del matrimonio o el divorcio, un hijo nuevo o el hecho de que uno se mude por su cuenta. Verificar ahora y hacer los ajustes necesarios a principios de año puede ayudarlos a evitar la necesidad de pagos de impuestos estimados trimestrales.

La herramienta en línea Estimador de Retención de Impuestos ayuda a los contribuyentes a determinar si van a recibir un reembolso o si tienen la necesidad de hacer un pago directamente al IRS para evitar una factura tributaria y multas el próximo año.

Los impuestos se pagan según se ganan y normalmente se pagan a lo largo del año que el ingreso se recibe mediante la retención del pago, pagos de pensiones, beneficios del Seguro Social y ciertos otros pagos del gobierno.

Tener un segundo trabajo o ingresos no salariales por desempleo, trabajo por cuenta propia, ingresos de anualidades, la economía compartida o activos digitales pudiera requerir que los contribuyentes tengan que hacer pagos trimestrales de impuestos estimados para evitar una factura de impuestos al presentar su declaración de impuestos.

Además, varias transacciones financieras, especialmente a fines de año, a menudo pueden tener un impacto tributario inesperado. Ejemplos incluyen: bonos de fin de año, dividendos de acciones, distribuciones de ganancias de capital de fondos mutuos y acciones, bonos, moneda virtual, bienes raíces u otras propiedades vendidas con un beneficio.

Estimador de Retención de Impuestos

El Estimador de Retención de Impuestos puede ayudar a las personas a determinar si se les retienen demasiados o muy pocos impuestos. Lo contribuyentes pueden usar el estimador para cambiar sus retenciones de impuestos y someter un nuevo Formulario W-4 (SP), Certificado de Retenciones del Empleado a su empleador. La herramienta ofrece a aquellos que ganan ingresos una herramienta fácil de usar de paso a paso para adaptar efectivamente la cantidad de impuestos que deben retener de sus cheques.

Haga un pago de impuestos

La manera más fácil y rápida de hacer un pago de impuestos estimados es electrónicamente a través de Pago Directo o el Sistema de Pago Electrónico de Impuestos Federales (EFTPS, por sus siglas en inglés). Para información acerca de otras opciones de pago, visite Pago Directo. Si paga con cheque, hágalo pagadero al Departamento del Tesoro.

Otras cosas que pueden afectar los impuestos de 2022

Algunos eventos imprevistos de la vida pueden ser razones para hacer ajustes de retención. Aquí hay algunas herramientas para ayudar a los contribuyentes a realizar ajustes debido a varios escenarios:

• Consejos para usar el Estimador de Retención de Impuestos (en inglés).
• Qué hacer con los resultados del Estimador de Retención de Impuestos (en inglés).
• Información sobre el Formulario W-4 (SP), Certificado de Retenciones del Empleado – incluye actualizaciones recientes, formularios relacionados e instrucciones de cómo presentar.
• Alivio tributario por coronavirus – Ayuda tributaria para contribuyentes, empresas, organizaciones exentas de impuestos y otros, incluidos los planes de salud, afectados por el coronavirus (COVID-19).
• Desastres como incendios forestales y huracanes – Las disposiciones especiales de la ley tributaria pueden ayudar a los contribuyentes y empresas a recuperarse financieramente del impacto de un desastre, especialmente cuando el gobierno federal declara que su ubicación es un área de desastre mayor.
• Publicación 4128 (SP), El Impacto de los Impuestos sobre la Pérdida del TrabajoPDF – explica cómo esta circunstancia desafortunada puede crear nuevos problemas tributarios.
• Personas que trabajan en la economía compartida debido a la pandemia – consejos para quienes obtienen ingresos en la economía compartida.
• Publicación 505, Retención del impuesto e impuesto estimado (en inglés), contiene detalles adicionales que incluye hoja de datos y ejemplos para ayudar a aquellos con situaciones especiales.

Si tiene alguna pregunta sobre la contabilidad comercial esencial, los impuestos nacionales, los impuestos internacionales, la representación del IRS, las implicaciones fiscales de los Estados Unidos de las transacciones de bienes inmuebles o los estados financieros, llámenos al +305-274-5811.

Fuente: IRS     

Generally, the term “leakage” has negative connotations. So, it’s not surprising that the same is true in the context of retirement planning, where leakage refers to pre-retirement withdrawals from a retirement account. Now, as a business owner who sponsors a qualified retirement plan, you might say, “Well, that’s my participants’ business, not mine.”

However, there are valid reasons to address the issue with employees who participate in your plan.

Why does it matter?

For starters, leakage can lead to higher plan expenses. Fees are often determined on a per-account or per-participant basis. When a plan loses funds to leakage, total assets and individual account sizes shrink, which tends to hurt administrative efficiency and raise costs.

More broadly, if your employees are taking pre-retirement withdrawals, it could indicate they’re facing unusual financial challenges. These issues may have a negative impact on productivity and work quality and leave them unable to retire when they planned to.

What can you do?

The most important thing business owners can do to limit leakage is to remind employees about how pre-retirement withdrawals can diminish their accounts and delay their anticipated retirement dates. While you’re at it, consider providing broader financial education to help workers better manage their money, amass savings, and minimize or avoid the need for early withdrawals.

Some companies offer emergency loans that are repayable through payroll deductions to reduce the use of retirement funds. Others have revised their plan designs to limit the situations under which plan participants can take out hardship withdrawals or loans.

Can you eliminate the problem?

According to a 2021 report by the Joint Committee on Taxation, roughly 22% of net contributions made by people age 50 or younger leaks out of the retirement savings system in a given year. Some percentage of retirement plan leakage will probably always occur, but becoming aware of the problem and taking steps to minimize it are still worthwhile for any business.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters     

TAS will launch a Pre-Filing Season Awareness outreach campaign in January.  It is a nationwide effort to help millions of taxpayers who self-prepare federal tax returns to avoid common return processing issues that cause refund delays.

TAS invites taxpayers to attend one of the events in their area. If taxpayers aren’t able to attend an event, there are resources available to them on the TAS website and a list of tips below.

Follow these tips to help prevent common issues.

Use your year-end income statements (e.g., Form W-2/1099), not your pay stub, to verify your income. Your income figures must match what is reported on year-end statements. Employers have until January 31 to send your income statements, and you must wait to receive them before you file.

Double check that your information is correct for yourself and your dependents. Check name spellings, taxpayer identification numbers, dates of birth, addresses, and bank account information.

Check for all credits and deductions for which you may be eligible. Review the tax form instructions to ensure you claim all the deductible items and credits for which you are eligible. Complete any worksheets, schedules or forms to support those items.

Attach all forms and schedules before you submit your return. Don’t forget your income statements and special forms to support credit claims (e.g., Form 8892 or Schedule EITC).

E-file — be aware of tax software that imports prior year data automatically. E-filing a tax return is the most efficient way to file, but make sure you’re using current tax year data to avoid mistakes.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source:TAS 

Las víctimas de la tormenta en partes de Georgia y Alabama ahora tienen hasta el 15 de mayo de 2023 para presentar varias declaraciones de impuestos federales individuales y comerciales y realizar pagos de impuestos, anunció hoy el Servicio de Impuestos Internos.

El IRS está ofreciendo alivio a cualquier área designada por la Agencia Federal para el Manejo de Emergencias (FEMA). Esto significa que las personas y los hogares que residen o tienen un negocio en los condados de Butts, Henry, Jasper, Meriwether, Newton, Spalding y Troup en Georgia, y los condados de Autauga y Dallas en Alabama califican para el alivio tributario. Otras áreas agregadas posteriormente al área de desastre también calificarán para el mismo alivio. La lista actual de localidades elegibles está disponible en la página de Alivio en casos de desastre.

El alivio tributario pospone varios plazos de presentación y pago de impuestos que ocurren a partir del 12 de enero de 2023. Como resultado, las personas y empresas afectadas tendrán hasta el 15 de mayo de 2023 para presentar declaraciones y pagar los impuestos que originalmente debían durante este período.

Esto incluye declaraciones de impuestos individuales de 2022 que vencen el 18 de abril, así como varias declaraciones de negocios de 2022 que normalmente vencen el 15 de marzo y el 18 de abril. Entre otras cosas, esto significa que los contribuyentes elegibles tendrán hasta el 15 de mayo para hacer contribuciones de 2022 a sus cuentas IRA y cuentas de ahorro para la salud.

Además, los agricultores que opten por no realizar pagos de impuestos estimados y normalmente presenten sus declaraciones antes del 1ro de marzo ahora tendrán hasta el 15 de mayo de 2023 para presentar su declaración de 2022 y pagar cualquier impuesto adeudado. La fecha límite del 15 de mayo de 2023 también se aplica a los pagos de impuestos estimados trimestrales, que normalmente vencen el 17 de enero de 2023 y el 18 de abril de 2023. Esto significa que los contribuyentes individuales pueden omitir el pago de impuestos estimados del cuarto trimestre, que normalmente vence el 17 de enero de 2023 y, en su lugar, incluirlo con la declaración de impuestos de 2022 que presenten, el 15 de mayo o antes.

La fecha límite del 15 de mayo también se aplica a las declaraciones de impuestos trimestrales sobre la nómina y los impuestos de uso y consumo que normalmente vencen el 31 de enero y el 30 de abril de 2023. Además, las multas sobre los depósitos de impuestos sobre la nómina y el consumo que vencen a partir del 12 de enero de 2023 y antes del 27 de enero de 2023 se perdonarán siempre que los depósitos de impuestos se realicen antes del 27 de enero de 2023.

La página de Ayuda y alivio por emergencia en casos de desastre para las personas y los negocios tiene detalles acerca de otras declaraciones, pagos y acciones relacionadas con impuestos que califican para el tiempo adicional.

El IRS proporciona automáticamente el alivio para la presentación y de multas a cualquier contribuyente con una dirección registrada del IRS ubicada en el área del desastre. Por lo tanto, los contribuyentes no necesitan comunicarse con la agencia para obtener este alivio. Sin embargo, si un contribuyente afectado recibe un aviso de multa por presentación tardía o pago atrasado del IRS que tiene una fecha de vencimiento de depósito, pago o presentación original o extendida que cae dentro del período de aplazamiento, el contribuyente debe llamar al número que figura en el aviso para solicitar la cancelación de la multa

Además, el IRS trabajará con cualquier contribuyente que viva fuera del área del desastre, pero cuyos archivos necesarios para cumplir con una fecha límite que ocurra durante el período de aplazamiento se encuentren en el área afectada. Los contribuyentes que califican para el alivio que viven fuera del área de desastre deben comunicarse con el IRS al 866-562-5227. Esto también incluye a los trabajadores que ayudan en las actividades de socorro que están afiliados a un gobierno reconocido o a una organización filantrópica.

Las personas y empresas en un área de desastre declarada por el gobierno federal que sufrieron pérdidas relacionadas con el desastre no aseguradas o no reembolsadas pueden optar por reclamarlas en la declaración del año en que ocurrió la pérdida (en este caso, la declaración de 2023 que normalmente se presenta el próximo año) o en la declaración para el año anterior (2022, normalmente se presenta en esta temporada de impuestos). Asegúrese de escribir el número de declaración de FEMA (4684-DR para Alabama o 4685-DR para Georgia) en cualquier declaración que reclame una pérdida. Vea la Publicación 547 para más detalles.

El alivio tributario es parte de una respuesta federal coordinada a los daños causados ​​por estas tormentas y se basa en las evaluaciones de daños locales realizadas por FEMA. Para obtener información acerca de la recuperación ante desastres, visite disasterassistance.gov.

Si tiene alguna pregunta sobre la contabilidad comercial esencial, los impuestos nacionales, los impuestos internacionales, la representación del IRS, las implicaciones fiscales de los Estados Unidos de las transacciones de bienes inmuebles o los estados financieros, llámenos al +305-274-5811.

Fuente: IRS  

Whether you are self-employed or an employee, if you use a portion of your home exclusively and regularly for business purposes, you may be able to take a home office deduction.

You can deduct certain expenses if your home office is the principal place where your trade or business is conducted or where you meet and deal with clients or patients in the course of your business. If you use a separate structure not attached to your home for an exclusive and regular part of your business, you can deduct expenses related to it.

Your home office will qualify as your principal place of business if you use it exclusively and regularly for the administrative or management activities associated with your trade or business. There must be no other fixed place where you conduct substantial administrative or management activities. If you use both your home and other locations regularly in your business, you must determine which location is your principle place of business, based on the relative importance of the activities performed at each location. If the relative importance factor doesn't determine your principle place of business, you can also consider the time spent at each location.

If you are an employee, you have additional requirements to meet. You cannot take the home office deduction unless the business use of your home is for the convenience of your employer. Also, you cannot take deductions for space you are renting to your employer.

Generally, the amount you can deduct depends on the percentage of your home used for business. Your deduction will be limited if your gross income from your business is less than your total business expenses. Please contact us for more!

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters    

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). This means that individuals and households that reside or have a business in Alameda, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Ventura, Yolo and Yuba counties qualify for tax relief. The current list of eligible localities is always available on the Tax Relief in Disaster Situations page on IRS.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting on January 8, 2023. As a result, affected individuals and businesses will have until May 15, 2023, to file returns and pay any taxes that were originally due during this period.

This includes 2022 individual income tax returns due on April 18, as well as various 2022 business returns normally due on March 15 and April 18. Among other things, this means that eligible taxpayers will have until May 15 to make 2022 contributions to their IRAs and health savings accounts.

In addition, farmers who choose to forgo making estimated tax payments and normally file their returns by March 1 will now have until May 15, 2023, to file their 2022 return and pay any tax due. The May 15, 2023, deadline also applies to the quarterly estimated tax payments, normally due on January 17, 2023, and April 18, 2023. This means that individual taxpayers can skip making the fourth quarter estimated tax payment, normally due January 17, 2023, and instead include it with the 2022 return they file, on or before May 15.

The May 15 deadline also applies to the quarterly payroll and excise tax returns normally due on January 31 and April 30, 2023. In addition, penalties on payroll and excise tax deposits due on or after January 8, 2023, and before January 23, 2023, will be abated as long as the tax deposits are made by January 23, 2023.

The Disaster Assistance and Emergency Relief for Individuals and Businesses page has details on other returns, payments and tax-related actions qualifying for the additional time.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2023 return normally filed next year), or the return for the prior year (2022, normally filed this tax season). Be sure to write the FEMA declaration number – 3691-EM − on any return claiming a loss. See Publication 547 for details.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: IRS    

Are you expecting a tax refund from the Internal Revenue Service this year? If you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date IRS receives your return. If you file your return electronically, your refund should be issued in about half the time it would take if you filed a paper return — even faster when you choose direct deposit.

You can have a refund check mailed to you, or you may be able to have your refund electronically deposited directly into your bank account. Direct deposit into a bank account is more secure because there is no check to get lost. And it takes the U.S. Treasury less time than issuing a paper check. If you prepare a paper return, complete Form 8050, making sure that the routing and account numbers are accurate, and attach it to the corporation's tax return. Note that Form 8050 may only be filed with the original Form 1120 or 1120S, and the corporation is not eligible to receive direct deposit if the receiving financial institution is a foreign bank, or foreign branch of a U.S. bank. Incorrect numbers can cause your refund to be misdirected or delayed. Direct deposit is also available if you electronically file your return.

You may not receive your refund as quickly as you expected. A refund can be delayed for a variety of reasons. For example, a name or identification number and Social Security number listed on the tax return may not match the IRS records. You may have failed to sign the return or to include a necessary attachment, such as Form W-2, Wage and Tax Statement. Or you may have made math errors that require extra time for the IRS to correct.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters 

Probablemente la mayoría de las personas solo piensan en los créditos y deducciones tributarias cuando completan su declaración de impuestos. Sin embargo, con un poco de planificación anticipada se puede facilitar el proceso de presentación. Al familiarizarse ahora, los contribuyentes pueden comprender claramente qué créditos y deducciones tienen sentido para ellos y los archivos necesarios para demostrar su elegibilidad.

Aquí hay algunos datos acerca de créditos y deducciones que pueden ayudar con la planificación tributaria durante todo el año.

Algunas cosas que debe saber acerca de las deducciones:

• Las deducciones pueden reducir la cantidad de ingresos de un contribuyente antes de que calculen el impuesto que adeudan.

• La mayoría de la gente toma la deducción estándar. La deducción estándar se ajusta cada año según la inflación. El monto de la deducción estándar depende del estado civil del contribuyente, la edad, si es ciego y si otra persona lo reclama como dependiente.

• Algunas personas están obligadas a detallar sus deducciones, y algunas personas pueden optar por hacerlo porque reduce su ingreso tributable más que la deducción estándar.

• Como regla general, si las deducciones detalladas de un contribuyente son mayores que su deducción estándar, debe detallarlas.

• Los contribuyentes pueden usar el Asistente Tributario Interactivo para ver qué gastos pueden detallar.

Cosas que debe saber acerca de los créditos tributarios:

• Los contribuyentes pueden restar créditos tributarios de la cantidad total de impuestos que adeudan.

• Algunos créditos tributarios, como el Crédito tributario por ingreso del trabajo, son incluso reembolsables, lo que significa que un contribuyente podría obtener un reembolso incluso si no adeuda ningún impuesto.

• Para reclamar un crédito, los contribuyentes deben llevar archivos que demuestren su elegibilidad para el mismo. Reclamar correctamente los créditos tributarios puede reducir los impuestos adeudados y aumentar los reembolsos.

• Los contribuyentes pueden verificar ahora si califican para reclamar algún crédito el próximo año en su declaración de impuestos.

Si tiene alguna pregunta sobre la contabilidad comercial esencial, los impuestos nacionales, los impuestos internacionales, la representación del IRS, las implicaciones fiscales de los Estados Unidos de las transacciones de bienes inmuebles o los estados financieros, llámenos al +305-274-5811.

Fuente: IRS    

When people get married their tax situation often changes. A taxpayer's marital status as of December 31 determines their tax filing options for the entire year, but that's not all newlyweds need to know.

Here's a tax checklist for newly married couples:

Name and address changes

• Name – When a name changes through marriage, it's important to report that change to the Social Security Administration. The name on a person's tax return must match what is on file at the SSA. If it doesn't, it could delay any tax refund. To update information, taxpayers should file Form SS-5, Application for a Social Security Card. It is available on SSA.gov, by phone at 800-772-1213 or at a local SSA office.

• Address – If marriage means a change of address, the IRS and U.S. Postal Service need to know. To do that, people should complete and send the IRS Form 8822, Change of Address. Taxpayers should also notify the postal service to forward their mail by going online at USPS.com or visiting their local post office.

Withholding

• After getting married, couples should consider changing their withholding. Newly married couples must give their employers a new Form W-4, Employee's Withholding Allowance within 10 days. If both spouses work, they may move into a higher tax bracket or be affected by the additional Medicare tax. They can use the Tax Withholding Estimator on IRS.gov to help complete a new Form W-4. Taxpayers should review Publication 505, Tax Withholding and Estimated Tax, for more information.

Filing status

• Married people can choose to file their federal income taxes jointly or separately each year. While filing jointly is usually more beneficial, it's best to figure the tax both ways to find out which makes the most sense. Taxpayers should remember, if a couple is married as of December 31, the law says they're married for the whole year for tax purposes.

Scams

• All taxpayers should be aware of and avoid tax scams. The IRS will never initiate contact using email, phone calls, social media or text messages. First contact generally comes in the mail. Those wondering if they owe money to the IRS can view their tax account information on IRS.gov to find out.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: IRS    

Right now, you may be more concerned about your 2022 tax bill than you are about how to handle your personal finances in the new year. However, as you deal with your annual tax filing, it’s a good idea to also familiarize yourself with pertinent amounts that may have changed for 2023.

Not all tax figures are adjusted for inflation. And even if they are, during times of low inflation the changes may be slight. When inflation is higher, as it currently is, the changes are generally more substantial. In addition, some tax amounts can change only with new tax legislation. Here are the answers to six commonly asked questions about 2023 tax-related figures:

1. How much can I contribute to an IRA for 2023? If you’re eligible, you can contribute up to $6,500 for 2023 to a traditional or Roth IRA (up from $6,000 for 2022). If you’re age 50 or older, you can make another $1,000 “catch-up” contribution.

2. I have a 401(k) plan through my job. How much can I contribute to it? For 2023, you can contribute up to $22,500 to a 401(k) or 403(b) plan. You can make an additional $7,500 catch-up contribution if you’re age 50 or older. (These figures for 2022 were $20,500 and $6,500, respectively).

3. I sometimes hire a babysitter and a cleaning person. Do I have to withhold and pay FICA tax on the amounts I pay them? The threshold for when a domestic employer must withhold and pay FICA for babysitters, house cleaners and other domestic employees has increased to $2,600 for 2023 (up from $2,400).

4. How much do I have to earn in 2023 before I can stop paying Social Security tax on my salary? The Social Security tax wage base is $160,200 for 2023, up from $147,000 for 2022. That means that you don’t owe Social Security tax on amounts earned above that. (You must pay Medicare tax on all amounts that you earn.)

5. On my last income tax return, my itemized deductions didn’t exceed my standard deduction. What’s my standard deduction for 2023? If the total amount of your itemized deductions (such as charitable gifts and mortgage interest) is less than your applicable standard deduction amount, itemizing won’t save you taxes. The Tax Cuts and Jobs Act eliminated the tax benefit of itemizing for many people by increasing the standard deduction and reducing or eliminating various itemized deductions. For 2023, the standard deduction amount is $27,700 for married couples filing jointly (up from $25,900 for 2022). For single filers, the amount is $13,850 (up from $12,950), and, for heads of households, it’s $20,800 (up from $19,400).

6. How much can I give to one person without having to file a gift tax return for 2023? The annual gift tax exclusion for 2023 is $17,000 (up from $16,000 in 2022). This amount is adjusted only in $1,000 increments, so it typically increases only every few years.

These are only some of the tax figures that may apply to you. For more information about your tax picture, or if you have questions, don’t hesitate to contact us.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters  

El Servicio de Impuestos Internos les recordó hoy a empleadores y otras empresas que presenten el Formulario W-2 del año tributario 2022 y otras declaraciones de salarios para el 31 de enero de 2023.

Los empleadores deben presentar copias del Formulario W-2, Declaración de salarios e impuestos (en inglés), y el Formulario W-3, Transmisión de declaraciones de salarios e impuestos (en inglés), ante la Administración del Seguro Social (SSA) para el 31 de enero. Puede encontrar información adicional acerca de cómo presentar en IRS.gov bajo el Tema 752, Presentación de Formularios W-2 y W-3.

La fecha límite del 31 de enero también se aplica al Formulario 1099-NEC, Compensación para no empleados (en inglés), presentada ante el IRS para informar la compensación de no empleados a contratistas independientes. Para obtener más información acerca de esta y otras fechas de vencimiento, consulte las instrucciones de los Formularios 1099-MISC y 1099-NEC (en inglés)PDF en IRS.gov.

Presente ahora para evitar multas

Las extensiones automáticas de tiempo para presentar los Formularios W-2 no están disponibles. El IRS solo otorgará extensiones por razones muy específicas. Los detalles se pueden encontrar en las instrucciones del Formulario 8809, Solicitud de extensión de tiempo para presentar declaraciones de información (en inglés).

Para obtener más información, lea las instrucciones de los Formularios 1099-MISC y 1099-NEC (en inglés)PDF y la página de Multas por declaraciones informativas en IRS.gov.

Prepárese

Es importante tener todo preparado para presentar a tiempo. Los empleadores deben verificar o actualizar la información de los empleados, como nombres, direcciones y números de Seguro Social o Números de Identificación Personal del Contribuyente. También deben asegurarse de que la información de la cuenta de su compañía esté actualizada y activa con la Administración del Seguro Social y solicitar los Formularios W-2 en papel si es necesario.

Ayudar con la detección de fraude

La fecha límite de presentación del Formulario W-2 y otras declaraciones de salarios permite que el IRS pueda detectar más fácilmente el fraude de reembolso al verificar los ingresos reportados en las declaraciones de impuestos individuales. Empleadores pueden apoyar este proceso y evitar multas al llenar los formularios a tiempo y sin errores. El IRS recomienda e-file (en inglés) como la manera más rápida, precisa y conveniente de presentar estos formularios. Para más información acerca de cómo presentar electrónicamente los Formularios W-2, los empleadores pueden consultar las Instrucciones e información de presentación W-2 del empleador en el sitio web de la Administración del Seguro Social.

Si tiene alguna pregunta sobre la contabilidad comercial esencial, los impuestos nacionales, los impuestos internacionales, la representación del IRS, las implicaciones fiscales de los Estados Unidos de las transacciones de bienes inmuebles o los estados financieros, llámenos al +305-274-5811.

Fuente: IRS    

The Internal Revenue Service today reminded employers and other businesses to file Tax Year 2022 Form W-2 and other wage statements by January 31, 2023.

Employers must file their copies of Form W-2, Wage and Tax Statement and Form W-3, Transmittal of Wage and Tax Statements with the Social Security Administration by January 31. Additional information on how to file can be found in Topic No. 752, Filing Forms W-2 and W-3.

The January 31 deadline also applies to Forms 1099-NEC, Nonemployee Compensation filed with the IRS to report non-employee compensation to independent contractors. For more information on this and for other due dates, see the Instructions for Forms 1099-MISC and 1099-NECPDF.

File now to avoid penalties

Automatic extensions of time to file Forms W-2 are not available. The IRS will only grant extensions for very specific reasons. Details can be found in the general instructions on Form 8809, Application for Time to File Information Returns.

For more information, read the instructions for Forms W-2 and W-3 and the Information Return Penalties page at IRS.gov.

Be prepared

It's important to have everything prepared to file on time. Employers should verify or update employee information, like names, addresses and Social Security numbers or Individual Taxpayer Identification Numbers. They should also ensure their company's account information is current and active with the Social Security Administration and order paper Forms W-2 if needed.

Helping with fraud detection

The filing date for Form W-2 and other wage statements allows the IRS to detect refund fraud more easily by verifying income that individuals report on their tax returns. Employers can help support this process and avoid penalties by filing the forms on time and without errors. The IRS recommends e-file as the quickest, most accurate and convenient way to file these forms. For more information on e-filing Forms W-2, employers can refer to Employer W-2 Filing Instructions & Information on the Social Security Administration's website.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: IRS     

The Internal Revenue Service today announced Monday, January 23, 2023, as the beginning of the nation's 2023 tax season when the agency will begin accepting and processing 2022 tax year returns.

More than 168 million individual tax returns are expected to be filed, with the vast majority of those coming before the April 18 tax deadline. People have three extra days to file this year due to the calendar.

With the three previous tax seasons dramatically impacted by the pandemic, the IRS has taken additional steps for 2023 to improve service for taxpayers. As part of the August passage of the Inflation Reduction Act, the IRS has hired more than 5,000 new telephone assistors and added more in-person staff to help support taxpayers.

"This filing season is the first to benefit the IRS and our nation's tax system from multi-year funding in the Inflation Reduction Act," said Acting IRS Commissioner Doug O'Donnell. "With these new additional resources, taxpayers and tax professionals will see improvements in many areas of the agency this year. We've trained thousands of new employees to answer phones and help people. While much work remains after several difficult years, we expect people to experience improvements this tax season. That's just the start as we work to add new long-term transformation efforts that will make things even smoother in future years. We are very excited to begin to deliver what taxpayers want and our employees know we could do with this funding."

These steps took place as the IRS worked for months to prepare for the 2023 tax season. The January 23 start date for individual tax return filers allows the IRS time to perform annual updates and readiness work that are critical to ensuring IRS systems run smoothly. This is the date IRS systems officially begin accepting tax returns. Many software providers and tax professionals are already accepting tax returns; they will transmit those returns to the IRS when the agency begins accepting tax returns on January 23.

The IRS urges people to have all the information they need before they file a tax return. Filing a complete and accurate tax return can avoid extensive processing and refund delays as well as avoid the possibility of needing to file an amended tax return.

In addition, the IRS encourages people to carefully review their tax situation to make sure they don't overlook important tax credits they may be eligible for, like the Earned Income Tax Credit (EITC). The IRS has set a special day on January 27 to encourage people to make sure they understand the important benefits of the EITC, a credit that can help low- and moderate-income workers and families.

The IRS has a variety of free services available to help people. The IRS's Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs also offer free basic tax return preparation to qualified individuals. People can also get help from trusted tax professionals, commercially available tax software as well as IRS Free File, which provides free electronic filing of tax returns.

April 18 tax filing deadline in 2023

The filing deadline to submit 2022 tax returns or an extension to file and pay tax owed is Tuesday, April 18, 2023, for most taxpayers. By law, Washington, D.C., holidays impact tax deadlines for everyone in the same way as federal holidays. The due date is April 18, instead of April 15, because of the weekend and the District of Columbia's Emancipation Day holiday, which falls on Monday, April 17.

Taxpayers requesting an extension will have until Monday, October 16, 2023, to file.

Tips to help people with the 2023 tax season

The IRS recommends several things for people to keep in mind for a smooth filing experience this year:

Have the right information before filing. The IRS encourages individuals to have all the information they need before filing a complete and accurate return. Organize and gather 2022 tax records including Social Security numbers, Individual Taxpayer Identification Numbers, Adoption Taxpayer Identification Numbers and this year's Identity Protection Personal Identification Numbers valid for calendar year 2023.

Filing an accurate tax return can help taxpayers avoid delays or later IRS notices. Sometimes this means waiting to make sure individuals have accounted for all their income and the related documents. This is especially important for people who may receive one of the various Forms 1099 from banks or other payers reporting unemployment compensation, dividends, pension, annuity or retirement plan distributions.

People should also remember that most income is taxable, including unemployment income, interest received or money earned from the gig economy or digital assets. Individuals should make sure they report the correct amount on their tax return to avoid processing delays.

Visit IRS.gov first for questions. The IRS reminds people to visit IRS.gov first for common questions and also to check on the status of their refunds. IRS.gov has much of the same information that IRS phone assistors have.

The IRS anticipates making significant improvements to phone service this year for taxpayers and tax professionals as more training for new phone assistors is completed in the weeks ahead. However, the IRS emphasizes it's important to note that call volumes remain at historically high levels. The IRS urges people to visit IRS.gov for the information they need.

"Our phone volumes remain at very high levels," O'Donnell said. "For faster access to information, we urge people to start with IRS.gov. From there, taxpayers can quickly access the variety of free resources available to help taxpayers anytime, day or night."

Speed refunds by filing electronically and choosing direct deposit. There are important steps people can take to help ensure their tax return and refund are processed without delays. The most important is to file electronically with direct deposit. This is still the fastest and easiest way to file and receive a refund. To avoid delays in processing, people should avoid filing paper returns wherever possible.

To speed refunds, the IRS urges people to file electronically with direct deposit information as soon as they have everything needed to file an accurate return. Individuals can use a bank account, prepaid debit card or mobile app to use direct deposit and will need to provide routing and account numbers with their return. Learn how to open an account at an FDIC-insured bank or through the National Credit Union Locator Tool.

IRS Free File available January 13

IRS Free File will open January 13 when participating providers will accept completed returns and hold them until they can be filed electronically with the IRS. Many commercial tax preparation software companies and tax professionals will also be accepting and preparing tax returns before January 23 to submit the returns when the IRS systems open.

The IRS's Free File program, available only at IRS.gov, allows taxpayers who made $73,000 or less in 2022 to file their taxes electronically for free using brand-name software provided by commercial tax filing companies. Free File Fillable forms, a part of this effort, is available to any income level and provides free electronic forms that people fill out and file themselves also at no cost.

Most refunds issued in less than 21 days; EITC refunds for many available starting February 28

The IRS anticipates most taxpayers will receive their refund within 21 days of when they file electronically, if they choose direct deposit and there are no issues with their tax return. Taxpayers should check Where's My Refund? on IRS.gov for their personalized refund status.

While the IRS will begin accepting returns January 23, the IRS cannot issue a refund that includes the Earned Income Tax Credit or Additional Child Tax Credit (ACTC) before mid-February. This is due to the 2015 PATH Act law passed by Congress, which provides this additional time to help the IRS stop fraudulent refunds from being issued.

Where's My Refund? should show an updated status by February 18 for most early EITC/ACTC filers. The IRS expects most EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards by February 28 if taxpayers chose direct deposit and there are no other issues with their tax return.

Awaiting processing of previous tax returns? People can still file 2022 returns

Currently, the IRS has processed all paper and electronic individual tax year 2021 returns received prior to November 2022 that didn't require error-correction or further review. The IRS continues to work on remaining tax returns in these categories. This work will not impact tax refund timing for people filing in 2023, but the IRS continues to urge people to make sure they submit an error-free tax return this tax season to avoid delays. Check the IRS Operations page for the latest information about the status of tax returns received in 2022.

IRS.gov, IRS Online Account provide free help

Taxpayers can find online tools at IRS.gov that are easy-to-use and available anytime. Millions of people use them to help file and pay taxes, find information about their accounts, determine eligibility for tax credits and get answers to tax questions.

An IRS Online Account allows individuals to log in securely to access personal tax account information including balance, payments and tax records including adjusted gross income.

There are various types of tax return preparers, including enrolled agents, certified public accountants, attorneys and some who don't have a professional credential. Choosing a Tax Professional offers information to help people select one. The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help taxpayers find local preparers who currently hold professional credentials recognized by the IRS or who hold an Annual Filing Season Program Record of Completion.

The Interactive Tax Assistant provides answers to many tax law questions. For example, it can help people determine if a type of income is taxable, or if they can deduct certain expenses. It also helps people find out if life event changes make them eligible for credits they didn't qualify for in the past and provides answers for general questions, such as determining filing status, if someone can claim dependents or if they have to file a tax return.

Where's My Refund? offers taxpayers the ability to check the status of their refund within 24 hours after the IRS accepts their e-filed tax return. The Where's My Refund? tool updates once every 24 hours, usually overnight.

MilTax is a free tax resource available for the military community, offered through the Department of Defense. It includes tax preparation and electronic filing software, personalized support from tax consultants and current information about filing taxes. It's designed to address the realities of military life – including deployments, combat and training pay, housing and rentals and multi-state filings. Eligible taxpayers can use MilTax to electronically file a federal tax return and up to three state returns for free.

Key filing season dates

There are several important dates taxpayers should keep in mind for this year's filing season:

• January 13: IRS Free File opens
• January 17: Due date for tax year 2022 fourth quarter estimated tax payment.
• January 23: IRS begins 2023 tax season and starts accepting and processing individual 2022 tax returns.
• January 27: Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people – including the option to use prior-year income to qualify.
• April 18: National due date to file a 2022 tax return or request an extension and pay tax owed due to the Emancipation Day holiday in Washington, D.C.
• October 16: Due date to file for those requesting an extension on their 2022 tax returns.

Before filing: Plan ahead

It's never too early to get ready for the tax-filing season. For more tips and resources, check out the Get Ready page on IRS.gov.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: IRS

El Servicio de Impuestos Internos anunció que la temporada de impuestos de la nación comenzará el lunes, 23 de enero de 2023, cuando la agencia tributaria comenzará a aceptar y procesar las declaraciones del año tributario 2022.

Se espera que se presenten más de 168 millones de declaraciones de impuestos individuales, y la gran mayoría de ellas se presentarán antes de la fecha límite de impuestos del 18 de abril. Las personas tienen tres días adicionales para presentar este año debido al calendario.

Con las tres temporadas de impuestos anteriores impactadas dramáticamente por la pandemia, el IRS ha tomado medidas adicionales para 2023 para mejorar el servicio para los contribuyentes. Como parte de la aprobación en agosto de la Ley de Reducción de la Inflación, el IRS contrató a más de 5,000 nuevos asistentes telefónicos y agregó más personal en persona para ayudar a los contribuyentes.

"Esta temporada de presentación de impuestos es la primera en beneficiar al IRS y al sistema tributario de nuestra nación con financiamiento plurianual en la Ley de Reducción de la Inflación", dijo Doug O'Donnell, comisionado interino del IRS. "Con estos nuevos recursos adicionales, los contribuyentes y los profesionales de impuestos verán mejoras en muchas áreas de la agencia este año. Hemos capacitado a miles de nuevos empleados para contestar teléfonos y ayudar a las personas. Si bien queda mucho trabajo después de varios años difíciles, esperamos que las personas experimenten mejoras en esta temporada de impuestos. Ese es solo el comienzo a medida que trabajamos para agregar nuevos esfuerzos de transformación a largo plazo que facilitarán aún más las cosas en los próximos años. Estamos muy emocionados de comenzar a brindar lo que los contribuyentes quieren y nuestros empleados saben que podemos hacer con estos fondos".

Estos pasos se dieron mientras el IRS trabajaba durante meses para prepararse para la temporada de impuestos de 2023. La fecha de inicio del 23 de enero para los declarantes de impuestos individuales le da tiempo al IRS para realizar actualizaciones anuales y trabajos de preparación que son fundamentales para garantizar que los sistemas del IRS funcionen sin problemas. Esta es la fecha en que los sistemas del IRS comienzan oficialmente a aceptar declaraciones de impuestos. Muchos proveedores de software y profesionales de impuestos ya están aceptando declaraciones de impuestos; transmitirán esas declaraciones al IRS cuando la agencia comience a aceptar declaraciones de impuestos el 23 de enero.

El IRS insta a las personas a tener toda la información que necesitan antes de presentar una declaración de impuestos. Presentar una declaración de impuestos completa y precisa puede evitar demoras extensas en el procesamiento y el reembolso, así como evitar la posibilidad de tener que presentar una declaración de impuestos enmendada.

Además, el IRS alienta a las personas a revisar cuidadosamente su situación tributaria para asegurarse de no pasar por alto importantes créditos tributarios para los que pueden ser elegibles, como el Crédito tributario por ingreso del trabajo (EITC). El IRS ha establecido un día especial el 27 de enero para alentar a las personas a asegurarse de que comprendan los importantes beneficios del EITC, un crédito que puede ayudar a los trabajadores y familias de ingresos bajos y moderados.

El IRS tiene una variedad de servicios gratuitos disponibles para ayudar a las personas. Los programas Ayuda voluntaria a los contribuyentes y Asesoramiento tributario para personas de edad avanzada del IRS también ofrecen preparación básica gratuita para la declaración de impuestos a personas calificadas. Las personas también pueden obtener ayuda de profesionales de impuestos de confianza, software de impuestos disponible en el mercado, así como Free File del IRS, que proporciona la presentación electrónica gratuita de declaraciones de impuestos.

Fecha límite del 18 de abril en 2023

La fecha límite para presentar declaraciones de impuestos de 2022 es el martes, 18 de abril de 2022 para la mayoría de los contribuyentes. Por ley, los días feriados de Washington, DC impactan las fechas límite de impuestos para todos de la misma manera que los días feriados federales. La fecha de vencimiento es el 18 de abril, en lugar del 15 de abril, debido al fin de semana y al feriado del Día de la Emancipación del Distrito de Columbia, que cae el lunes 17 de abril.

Los contribuyentes que soliciten una extensión tendrán hasta el lunes, 16 de octubre de 2023 para presentar la declaración.

Consejos para ayudar a las personas con la temporada de impuestos de 2023

El IRS recomienda varias cosas que las personas deben tener en cuenta para una experiencia de presentación sin problemas este año:

Tenga la información correcta antes de presentar. El IRS alienta a todos a tener toda la información que necesitan para estar en la mejor posición para presentar una declaración completa y precisa. Organice y recopile los archivos tributarios de 2022, incluidos los números de seguro social, los números de identificación de contribuyentes individuales, los números de identificación de contribuyentes de adopción y los Número de Identificación Personal para la Protección de la Identidad válidos para el año calendario 2023. Tener una declaración de impuestos precisa puede evitar demoras o avisos posteriores del IRS. A veces, esto significa esperar para asegurarse de que las personas hayan contabilizado todos sus ingresos y los documentos relacionados. Esto es especialmente importante para las personas que pueden recibir uno de los diversos Formularios 1099 de bancos u otros pagadores que reportan distribuciones de compensación por desempleo, dividendos, pensiones, anualidades o planes de jubilación.

Las personas también deben recordar que la mayoría de los ingresos están sujetos a impuestos, incluidos los ingresos por desempleo, los intereses recibidos o el dinero ganado de la economía informal o los activos digitales. Las personas deben asegurarse de informar el monto correcto en su declaración de impuestos para evitar demoras en el procesamiento.

Visite IRS.gov primero si tiene preguntas. El IRS les recuerda a las personas que primero visiten IRS.gov para preguntas comunes y también para verificar el estado de sus reembolsos. IRS.gov tiene mucha de la misma información que tienen los asistentes telefónicos del IRS.

El IRS anticipa realizar mejoras significativas en el servicio telefónico este año para los contribuyentes y los profesionales de impuestos a medida que se complete más capacitación para los nuevos asistentes telefónicos en las próximas semanas. Sin embargo, el IRS enfatiza que es importante tener en cuenta que los volúmenes de llamadas se mantienen en niveles históricamente altos. El IRS insta a las personas a visitar IRS.gov para obtener la información que necesitan.

"Nuestros volúmenes telefónicos continúan en niveles muy altos", dijo O'Donnell. "Para un acceso más rápido a la información, instamos a las personas a comenzar con IRS.gov. Desde allí, los contribuyentes pueden acceder rápidamente a la variedad de recursos gratuitos disponibles para ayudar a los contribuyentes en cualquier momento, de día o de noche".

Acelere los reembolsos al presentar electrónicamente y escoger el depósito directo. Hay pasos importantes que las personas pueden tomar para ayudar a garantizar que su declaración de impuestos y su reembolso se procesen sin demoras. Lo más importante es presentar electrónicamente con depósito directo. Esta continúa siendo la manera más rápida y fácil de presentar y recibir un reembolso. Para evitar demoras en el procesamiento, las personas deben evitar presentar declaraciones en papel siempre que sea posible.

Para acelerar los reembolsos, el IRS insta a las personas a presentar electrónicamente la información de depósito directo tan pronto como tengan todo lo necesario para presentar una declaración precisa. Las personas pueden usar una cuenta bancaria, una tarjeta de débito prepaga o una aplicación móvil para usar el depósito directo y deberán proporcionar números de ruta y de cuenta. Aprenda cómo abrir una cuenta en un banco asegurado por la FDIC o a través de la herramienta localizador de cooperativas de crédito y ahorro.

Free File del IRS disponible a partir del 13 de enero

Free File del IRS comenzará sus operaciones el 13 de enero cuando los proveedores participantes aceptarán las declaraciones completadas y las retendrán hasta que puedan presentarse electrónicamente ante el IRS. Muchas empresas de software de preparación de impuestos comerciales y profesionales de impuestos también aceptarán y prepararán declaraciones de impuestos antes del 23 de enero para enviarlas cuando se abran los sistemas del IRS.

El programa Free File del IRS, solo disponible en IRS.gov, permite a los contribuyentes que ganaron $73,000 o menos en 2022 presentar sus impuestos electrónicamente de manera gratuita mediante el software proporcionado por empresas comerciales de presentación de impuestos. Los formularios rellenables de Free File están disponibles para cualquier nivel de ingresos y proporcionan formularios electrónicos gratuitos que las personas completan y presentan sin costo alguno.

Mayoría de reembolsos se emiten en menos de 21 días; reembolsos de EITC para muchos disponibles a partir del 28 de febrero

El IRS anticipa que la mayoría de los contribuyentes recibirán su reembolso dentro de los 21 días posteriores a la presentación electrónica, si eligen el depósito directo y no hay problemas con su declaración de impuestos. Los contribuyentes deben consultar ¿Dónde está mi reembolso? en IRS.gov para conocer su estado de reembolso personalizado.

Si bien el IRS comenzará a aceptar declaraciones el 23 de enero, el IRS no puede emitir un reembolso que incluya el Crédito tributario por ingreso del trabajo o el Crédito tributario adicional por hijos (ACTC) antes de mediados de febrero. Esto se debe a la Ley PATH de 2015 aprobada por el Congreso, que proporciona este tiempo adicional para ayudar al IRS a detener la emisión de reembolsos fraudulentos.

¿Dónde está mi reembolso? debe mostrar un estado actualizado antes del 18 de febrero para la mayoría de los primeros solicitantes de EITC/ACTC. El IRS espera que la mayoría de los reembolsos relacionados con EITC/ACTC estén disponibles en las cuentas bancarias de los contribuyentes o en tarjetas de débito antes del 28 de febrero si los contribuyentes eligieron el depósito directo y no hay otros problemas con su declaración de impuestos.

¿Espera el procesamiento de declaraciones de impuestos anteriores? Las personas aún pueden presentar declaraciones de 2022

Actualmente, el IRS ha procesado todas las declaraciones de impuestos individuales del año tributario 2021 en papel y electrónicas recibidas antes de noviembre de 2022 que no requirieron corrección de errores o revisión adicional. El IRS continúa trabajando en las declaraciones de impuestos restantes en estas categorías. Este trabajo no afectará el tiempo de reembolso de impuestos para las personas que presenten su declaración en 2023, pero el IRS continúa instando a las personas a asegurarse de que presenten una declaración de impuestos sin errores en esta temporada de impuestos para evitar demoras. Consulte la página de Operaciones del IRS para obtener la información más reciente acerca del estado del inventario recibido en 2022.

IRS.gov, Cuenta en línea del IRS proporciona ayuda gratuita

Los contribuyentes pueden encontrar herramientas en línea en IRS.gov que son fáciles de usar y están disponibles en cualquier momento. Millones de personas las usan para ayudar a presentar y pagar impuestos, encontrar información de sus cuentas, determinar la elegibilidad para créditos tributarios y obtener respuestas a sus preguntas de impuestos.

Una cuenta en línea del IRS permite a las personas iniciar sesión de manera segura para acceder a la información de la cuenta de impuestos personales, incluidos el saldo, los pagos y los archivos de impuestos, incluido el ingreso bruto ajustado.

Hay varios tipos de preparadores de declaraciones de impuestos, incluidos agentes inscritos, contadores públicos certificados, abogados y algunos que no tienen una credencial profesional. La elección de un profesional de impuestos ofrece información para ayudar a las personas a seleccionar uno. El Directorio de preparadores de declaraciones de impuestos federales con credenciales y calificaciones seleccionadas (en inglés) puede ayudar a los contribuyentes a encontrar preparadores locales que actualmente tengan credenciales profesionales reconocidas por el IRS o que tengan un Archivo de finalización del programa de temporada tributario anual.

El Asistente Tributario Interactivo proporciona respuestas a muchas preguntas de leyes tributarias. Por ejemplo, puede ayudar a las personas a determinar si un tipo de ingreso está sujeto a impuestos o si pueden deducir ciertos gastos. También ayuda a las personas a averiguar si los cambios en los eventos de la vida los hacen elegibles para créditos para los que no calificaron en el pasado y brinda respuestas a preguntas generales, como determinar el estado civil, si alguien puede reclamar dependientes o si tienen que presentar una declaración de impuestos.

¿Dónde está mi reembolso? ofrece a los contribuyentes la capacidad de verificar el estado de su reembolso dentro de las 24 horas posteriores a que el IRS acepte su declaración de impuestos presentada electrónicamente. La herramienta ¿Dónde está mi reembolso? se actualiza una vez cada 24 horas, generalmente durante la noche.

MilTax (en inglés) es un recurso tributario gratuito disponible para la comunidad militar, ofrecido a través del Departamento de la Defensa. Incluye software de preparación de impuestos y presentación electrónica, apoyo personalizado de asesores tributarios e información actualizada acerca de la presentación de impuestos. Está diseñado para abordar las realidades de la vida militar, incluidos los despliegues, pagos por combate y entrenamiento, vivienda y alquileres y presentaciones en varios estados. Los contribuyentes elegibles pueden usar MilTax para presentar electrónicamente (en inglés) una declaración de impuestos federal y hasta tres declaraciones estatales de forma gratuita.

Fechas clave de la temporada de impuestos

Hay varias fechas importantes que los contribuyentes deben tener en cuenta para la temporada de presentación de impuestos de este año.

• 13 de enero: Free File del IRS comienza operaciones.
• 17 de enero: Fecha de vencimiento para el pago de impuestos estimados del cuarto trimestre del año tributario 2022.
• 23 de enero: El IRS comienza la temporada de impuestos de 2022 y comienzan a aceptar y procesar las declaraciones de impuestos individuales de 2022.
• 27 de enero: Día de Concienciación del Crédito tributario por ingreso del trabajo para crear conciencia acerca de los créditos tributarios valiosos disponibles para muchas personas, incluida la opción de usar los ingresos del año anterior para calificar.
• 18 de abril: Fecha límite para presentar la declaración de impuestos de 2022 o solicitar una extensión y pagar los impuestos adeudados debido al día feriado del Día de la Emancipación en Washington, DC.
• 16 de octubre: Fecha límite para presentar para aquellos que solicitan una extensión en sus declaraciones de impuestos de 2022.

Planifique antes de presentar

Nunca es demasiado temprano para prepararse para la temporada de presentación de impuestos que se avecina. Para obtener más consejos y recursos, consulte la página Prepárese en IRS.gov.

Si tiene alguna pregunta sobre la contabilidad comercial esencial, los impuestos nacionales, los impuestos internacionales, la representación del IRS, las implicaciones fiscales de los Estados Unidos de las transacciones de bienes inmuebles o los estados financieros, llámenos al +305-274-5811.

Fuente: IRS

Probablemente la mayoría de las personas solo piensan en los créditos y deducciones tributarias cuando completan su declaración de impuestos. Sin embargo, con un poco de planificación anticipada se puede facilitar el proceso de presentación. Al familiarizarse ahora, los contribuyentes pueden comprender claramente qué créditos y deducciones tienen sentido para ellos y los archivos necesarios para demostrar su elegibilidad.

Aquí hay algunos datos acerca de créditos y deducciones que pueden ayudar con la planificación tributaria durante todo el año.

Algunas cosas que debe saber acerca de las deducciones:

• Las deducciones pueden reducir la cantidad de ingresos de un contribuyente antes de que calculen el impuesto que adeudan.

• La mayoría de la gente toma la deducción estándar. La deducción estándar se ajusta cada año según la inflación. El monto de la deducción estándar depende del estado civil del contribuyente, la edad, si es ciego y si otra persona lo reclama como dependiente.

• Algunas personas están obligadas a detallar sus deducciones, y algunas personas pueden optar por hacerlo porque reduce su ingreso tributable más que la deducción estándar.

• Como regla general, si las deducciones detalladas de un contribuyente son mayores que su deducción estándar, debe detallarlas.

• Los contribuyentes pueden usar el Asistente Tributario Interactivo para ver qué gastos pueden detallar.

Cosas que debe saber acerca de los créditos tributarios:

• Los contribuyentes pueden restar créditos tributarios de la cantidad total de impuestos que adeudan.

• Algunos créditos tributarios, como el Crédito tributario por ingreso del trabajo, son incluso reembolsables, lo que significa que un contribuyente podría obtener un reembolso incluso si no adeuda ningún impuesto.

• Para reclamar un crédito, los contribuyentes deben llevar archivos que demuestren su elegibilidad para el mismo. Reclamar correctamente los créditos tributarios puede reducir los impuestos adeudados y aumentar los reembolsos.

• Los contribuyentes pueden verificar ahora si califican para reclamar algún crédito el próximo año en su declaración de impuestos.

Si tiene alguna pregunta sobre la contabilidad comercial esencial, los impuestos nacionales, los impuestos internacionales, la representación del IRS, las implicaciones fiscales de los Estados Unidos de las transacciones de bienes inmuebles o los estados financieros, llámenos al +305-274-5811.

Fuente: IRS   

If you're trying to beat the tax deadline, there are several options for last-minute help. If you need a form or publication, you can download copies from the IRS Forms page under Tax Tools on our website. If you find you need more time to finish your return, you can get a six-month extension of time to file using Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. And if you have trouble paying your tax bill, the IRS has several payment options available.

The extension will give you extra time to get the paperwork to the IRS, but it does not extend the time you have to pay any tax due. You have to make an accurate estimate of any tax due when you request an extension. You can also send a payment for the expected balance due, but this is not required to get the extension. However, you will owe interest on any amounts not paid by the April 15 deadline, plus a late payment penalty if you have paid less than 90 percent of your total tax by that date.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters   

Earlier is better when it comes to working on your taxes. The IRS encourages everyone to get a head start on tax preparation. Not only do you avoid the last-minute rush, early filers also get a faster refund.

There are five easy ways to get a good jump on your taxes long before the April 15 deadline rolls around:

1. Gather your records in advance. Make sure you have all the records you need, including W-2s and 1099s. Don't forget to save a copy for your files.
2. Get the right forms. They're available around the clock on IRS.gov in the Forms and Publications section.
3. Take your time. Don't forget to leave room for a coffee break when filling out your tax return. Rushing can mean making a mistake — and that can be expensive!
4. Double-check your math and Social Security number. These are among the most common errors on tax returns. Taking care on these reduces your chances of hearing from the IRS.
5. Get the fastest refund. When you file early, you get your refund faster. Using e-filing with direct deposit gets you a refund in half the time as paper filing.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters   

It is generally accepted that people prefer to make a living doing something they like. A hobby is an activity for which you do not expect to make a profit. If you do not carry on your business or investment activity to make a profit, there is a limit on the deductions you can take. You must include on your return income from an activity from which you do not expect to make a profit. An example of this type of activity is a hobby or a farm you operate mostly for recreation and pleasure. You cannot use a loss from the activity to offset other income. Activities you do as a hobby, or mainly for sport or recreation, come under this limit. So does an investment activity intended only to produce tax losses for the investors.

The limit on not-for-profit losses applies to individuals, partnerships, estates, trusts, and S corporations. For additional information on these entities, refer to business structures. It does not apply to corporations other than S corporations. In determining whether you are carrying on an activity for profit, all the facts are taken into account. No one factor alone is decisive. Among the factors to consider are whether:

1. You carry on the activity in a business-like manner,
2. The time and effort you put into the activity indicate you intend to make it profitable,
3. You depend on income from the activity for your livelihood,
4. Your losses are due to circumstances beyond your control (or are normal in the start-up phase of your type of business),
5. You change your methods of operation in an attempt to improve profitability,
6. You, or your advisors, have the knowledge needed to carry on the activity as a successful business,
7. You were successful in making a profit in similar activities in the past,
8. The activity makes a profit in some years, and
9. You can expect to make a future profit from the appreciation of the assets used in the activity.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters      

Whether or not you owed taxes or received a refund last year, check your tax withholding to avoid not having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year. This is even more important due to the recent changes to the tax law for 2018 and beyond. On the other end, if you had a large refund you lost out on having the money in your pocket throughout the year. Changing jobs, getting married or divorced, buying a home or having children can all result in changes in your tax calculations.

The IRS withholding calculator on IRS.gov can help compute the proper tax withholding. The worksheets in Publication 505, Tax Withholding and Estimated Tax can also be used to do the calculation. If the result suggests an adjustment is necessary, you can submit a new W-4, Withholding Allowance Certificate, to your employer.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters  

With more and more United States citizens earning money from foreign sources, the IRS reminds people that they must report all such income on their tax return, unless it is exempt under federal law. U.S. citizens are taxed on their worldwide income.

This applies whether a person lives inside or outside the United States. The foreign income rule also applies regardless of whether or not the person receives a Form W-2, Wage and Tax Statement, or a Form 1099 (information return).

Foreign source income includes earned income, such as wages and tips, and unearned income, such as interest, dividends, capital gains, pensions, rents and royalties.

An important point to remember is that citizens living outside the U.S. may be able to exclude up to $102,100 for 2017 and $103,900 for 2018, of their foreign source income if they meet certain requirements. However, the exclusion does not apply to payments made by the U.S. government to its civilian or military employees living outside the U.S. Please contact us if you feel you may have earned foreign income to learn more!

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters  

Do you work at a hair salon, barber shop, casino, golf course, hotel or restaurant or drive a taxicab? The tip income you receive as an employee from those services is taxable income, advises the IRS.

As taxable income, these tips are subject to federal income, Social Security and Medicare taxes, and may be subject to state income tax as well.

You must keep a running daily log of all your tip income and tips paid out. This includes cash that you receive directly from customers, tips from credit card charges from customers that your employer pays you, the value of any non-cash tips such as tickets or passes that you receive, and the amount of tips you paid out to other employees through tip pools or tip splitting and the names of those employees.

You can use IRS Publication 1244, Employee's Daily Record of Tips and Report of Tips to Employer, to record your tip income. For a free copy of Publication 1244, call the IRS toll free at 1-800-TAX-FORM (1-800-829-3676).

If you receive $20 or more in tips in any one month, you should report all your tips to your employer. Your employer is required to withhold federal income, Social Security and Medicare taxes and to report the correct amount of your earnings to the Social Security Administration (which will affect your benefits when you retire or if you become disabled, or your family's benefits if you die).  Contact us so your wages are properly reported!

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters      

Millions of Americans forgo critical tax relief each year by failing to claim the Earned Income Tax Credit (EITC), a federal tax credit for individuals who work but do not earn high incomes. Taxpayers who qualify and claim the credit could pay less federal tax, pay no tax or even get a tax refund.

The IRS estimates that 25 percent of people who qualify don't claim the credit and at the same time, there are millions of Americans who have claimed the credit in error, many of whom simply don't understand the criteria.

EITC is based on the amount of your earned income and the number of qualifying children in your household. If you have children, they must meet the relationship, age and residency requirements. And, you must file a tax return to claim the credit.

Its easier than ever to find out if you qualify for EITC using the online tool, EITC Assistant. Please contact us for more information!

Are you eligible for any of these tax credits?

Taxpayers should consider claiming tax credits for which they might be eligible when completing their federal income tax returns, advises the IRS. A tax credit is a dollar-for-dollar reduction of taxes owed. Some credits are refundable – taxes could be reduced to the point that a taxpayer would receive a refund rather than owing any taxes. Below are some of the credits taxpayers could be eligible to claim:

• Earned Income Tax Credit This is a refundable credit for low-income working individuals and families. Income and family size determine the amount of the EITC. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit. For more information, see IRS Publication 596, Earned Income Credit (EIC).
• Child Tax Credit This credit is for people who have a qualifying child under age 17. The maximum amount of the credit is $1,400 for each qualifying child. This credit can be claimed in addition to the credit for child and dependent care expenses. For more information on the Child Tax Credit, see Pub. 972, Child Tax Credit.
• Child and Dependent Care Credit This is for expenses paid for the care of children under age 13, or for a disabled spouse or dependent, to enable the taxpayer to work. There is a limit to the amount of qualifying expenses. The credit is a percentage of those qualifying expenses. For more information, see Pub. 503, Child and Dependent Care Expenses.
• Adoption Credit Adoptive parents can take a tax credit of up to $13,570 for 2017 and $13,810 for 2018 for qualifying expenses paid to adopt an eligible child. For more information, see Form 8839, Qualified Adoption Expenses.
• Credit for the Elderly and Disabled This credit is available to individuals who are either age 65 or older or are under age 65 and retired on permanent and total disability, and who are U.S. citizens or residents. There are income limitations. For more information, see Pub.524, Credit for the Elderly or the Disabled.
• Education Credits There are two credits available, the American Opportunity Credit (formerly called the Hope Credit) and the Lifetime Learning Credit, for people who pay higher education costs. The American Opportunity Credit is for the payment of the first four years of tuition and related expenses for an eligible student for whom the taxpayer claims as a dependent on the tax return. The Lifetime Learning Credit is available for all post-secondary education for an unlimited number of years. A taxpayer cannot claim both credits for the same student in one year. For more information, see Publication 970, Tax Benefits for Education.
• Retirement Savings Contribution Credit Eligible individuals may be able to claim a credit for a percentage of their qualified retirement savings contributions, such as contributions SIMPLE plan. To be eligible, you must be at least age 18 at the end of the year and not a full-time student or an individual for whom someone else claims a personal exemption. Also, your adjusted gross income (AGI) must be below a certain amount. For more information, see chapter three in Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs).

There are other credits available to eligible taxpayers.  Please contact us so we may analyze your specific situation, and offer advice.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters    

Have you just started a new business? Did you know expenses incurred before a business begins operations are not allowed as current deductions? Generally, these start-up costs must be amortized over a period of 180 months beginning in the month in which the business begins. However, based on the current tax provisions, you may elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred. The $5,000 deduction is reduced by any start-up or organizational costs which exceed $50,000. If you want to deduct a larger portion of your start-up cost in the first year, a new business will want to begin operations as early as possible and hold off incurring some of those expenses until after business begins. Contact us to help determine how you can maximize your deduction for start-up and/or organizational expenses. For additional information on what costs constitute start-up or organizational expenses, refer to IRS publication 535, Business Expenses.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuter      

An individual who has income from American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI), Guam, Puerto Rico or the U.S. Virgin Islands will usually have to file a tax return with the tax department of one of these territories. In some situations, you may have to determine if you are a resident or a nonresident of the territory. For forms and advice on filing a territory tax return, contact that territory's tax department. The addresses and telephone numbers for the tax departments of the U.S. territories may be found in Publication 570, Tax Guide for Individuals With Income From U.S. Possessions. Additional information about the U.S. territories can be found at State and Local Government on the Net.

If you have income from one of these U.S. territories, you may have to file a U.S. tax return only, a territory tax return only, or both returns. This generally depends on whether you are considered a bona fide resident of one of the U.S. territories. In some cases, you may have to file a U.S. return, but be able to exclude income earned in a territory from U.S. tax. Filing requirements for specific U.S. territories are explained in Publication 570, Tax Guide for Individuals With Income From U.S. Possessions.

Possession Exclusion for Bona Fide Residents  of American Samoa

Currently, the possession exclusion - under Internal Revenue Code (IRC) section 931 - applies only to U.S. citizens or resident aliens who are bona fide residents of American Samoa. If you qualify for this exclusion, you may have to attach Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa, to their U.S. federal individual income tax returns.

Individuals in the following U.S. territories are NOT eligible for the possession exclusion: Baker Island, the CNMI, Guam, Howland Islands, Jarvis Island, Johnston Island, Kingman Reef, Midway Islands, Palmyra, Puerto Rico, the U.S. Virgin Islands, and Wake Island.

Please refer to Publication 570, Tax Guide for Individuals With Income From U.S. Possessions, for the exclusions, credits, and deductions which apply to residents of the CNMI, Guam, Puerto Rico, and the U.S. Virgin Islands.

Determining Residency Status in U.S. Territories

IRC 937 establishes the criteria for determining the residency of an individual in American Samoa, the CNMI, Guam, Puerto Rico, and the U.S. Virgin Islands, and for determining whether income is sourced in a U.S. territory. An individual is generally considered a bona fide resident of a U.S. territory if he or she (1) is physically present in the territory for 183 days during the taxable year, (2) does not have a tax home outside the territory during the tax year, and (3) does not have a closer connection to the U.S. or a foreign country. However, U.S. citizens and resident aliens are permitted certain exceptions to the 183-day rule. For a detailed explanation of the U.S. territory residency rules and income sourcing rules, please refer to Publication 570, Tax Guide for Individuals With Income From U.S. Possessions.

IRC 937 also establishes the filing requirement for Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Possession for individuals who became or ceased to be a bona fide resident of a U.S. Territory. If you are required to file Form 8898 for any tax year and fail to file it, you may be subject to a penalty of $1,000.

Individuals who are required to file Form 8898 generally must do so by the due date (including extensions) for filing Form 1040 or Form 1040-NR. Form 8898 must be filed by itself; do not file it with Form 1040 or Form 1040-NR. Refer to Residents of U.S. Possessions-Form 8898 Bona Fide Residence for more information.

Self-Employment Tax

A U.S. citizen who is self-employed in a U.S. territory must pay self-employment tax on net self-employment earnings of $400 or more. This rule applies whether or not the earnings are excludable from gross income (or whether or not a U.S. income tax return must otherwise be filed).

Your payments of self-employment tax contribute to your coverage under the social security system. Social security coverage provides you with old age, survivor, and disability benefits and hospital insurance.

If you are a resident of American Samoa, the CNMI, Guam, Puerto Rico, or the U.S. Virgin Islands who has net self-employment income and you do not have to file Form 1040 with the United States, use Form 1040-SS, U.S. Self-Employment Tax Return, to figure your self-employment tax.

Note: If you are a resident of Puerto Rico, you can file Form 1040 (PR) instead of Form 1040-SS. Form 1040 (PR) is the Spanish-language equivalent of Form 1040-SS. These forms must be filed with the U.S. Internal Revenue Service at the address shown in the instructions for Form 1040 (PR) and Form 1040-SS.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: IRS         

El Servicio de Impuestos Internos les recordó hoy a los dueños de un arreglo individual de ahorro para la jubilación (IRA, por sus siglas en inglés) de 70½ años o más, su opción de transferir hasta $100,000 a organizaciones benéficas, no sujetas a impuestos, cada año.

Estas transferencias, conocidas como distribuciones benéficas calificadas (QCD, por sus siglas en inglés), ofrecen a los estadounidenses mayores elegibles una excelente manera de donar fácilmente a la caridad antes de fin de año. Además, para aquellos que tienen al menos 72 años, las QCD cuentan para la distribución mínima requerida (RMD) del dueño de un IRA para el año.

Cómo configurar una QCD

El IRS insta a cualquier dueño de un IRA que desee hacer una QCD para 2022 a comunicarse con su fideicomisario de IRA pronto para que el fideicomisario tenga tiempo de completar la transacción antes de fin de año.

Normalmente, las distribuciones de un IRA están sujetas a impuestos cuando se reciben. Pero con una QCD, estas distribuciones no están sujetas a impuestos, siempre y cuando se paguen directamente de un IRA a una organización benéfica elegible.

Las QCD se pueden hacer electrónicamente, directamente a la organización benéfica o mediante cheque, pagaderos a la organización benéfica.

Una distribución de un IRA, como un pago electrónico realizado directamente al dueño de un IRA, no cuenta como una QCD. Del mismo modo, un cheque pagadero al dueño de un IRA no es una QCD.

Cada año, un dueño de un IRA, de 70½ años o más, puede excluir de los ingresos brutos hasta $100,000 de estas QCD. Para una pareja casada, si ambos cónyuges tienen 70½ años o más, y si ambos tienen un IRA, cada cónyuge puede excluir hasta $100,000 para un total de hasta $200,000 por año.

La opción QCD está disponible independientemente si un dueño de IRA elegible detalla las deducciones en el Anexo A. Los montos transferidos no están sujetos a impuestos y no hay deducción disponible para la transferencia.

Informar correctamente

Una QCD 2022 debe reportarse en la declaración de impuestos federales de 2022, normalmente presentada durante la temporada de presentación de impuestos de 2023.

A principios de 2023, el dueño de un IRA recibirá el Formulario 1099-R (en inglés) de su fideicomisario de IRA, que muestra cualquier distribución de IRA durante el año calendario 2022, incluidas las distribuciones regulares y las QCD. La distribución total figura en la casilla 1 de ese formulario. No hay un código especial para una QCD.

Al igual que otras distribuciones de IRA, las QCD se muestran en la línea 4 del Formulario 1040 o el Formulario 1040-SR. Si parte o la totalidad de una distribución IRA es una QCD, ingrese el monto total de la distribución IRA en la Línea 4a. Esta es la cantidad que se muestra en la casilla 1 del Formulario 1099-R.

Luego, si el monto total de la distribución es una QCD, ingrese 0 en la línea 4b. Si solo una parte de ella es una QCD, la parte imponible restante normalmente se ingresa en la línea 4b.

De cualquier manera, asegúrese de ingresar "QCD" junto a la línea 4b. Más detalles estarán en las instrucciones finales del Formulario 1040 de 2022.

Obtenga un recibo

Las QCD no son deducibles como contribuciones caritativas en el Anexo A. Pero al igual que con las contribuciones deducibles, el donante debe obtener un acuse de recibo por escrito de su contribución de la organización caritativa, antes de presentar su declaración.

En general, el acuse de recibo debe indicar la fecha y el monto de la contribución e indicar si el donante recibió algo de valor a cambio de su contribución. Para obtener más detalles, consulte la sección de Recibo en la Publicación 526, Donaciones caritativas (en inglés), disponible en IRS.gov.

Si tiene alguna pregunta sobre la contabilidad comercial esencial, los impuestos nacionales, los impuestos internacionales, la representación del IRS, las implicaciones fiscales de los Estados Unidos de las transacciones de bienes inmuebles o los estados financieros, llámenos al +305-274-5811.

Fuente: IRS    

The United States has income tax treaties with a number of foreign countries. Under these treaties, residents (not necessarily citizens) of foreign countries may be eligible to be taxed at a reduced rate or exempt from U.S. income taxes on certain items of income they receive from sources within the United States. These reduced rates and exemptions vary among countries and specific items of income.

If the treaty does not cover a particular kind of income, or if there is no treaty between your country and the United States, you must pay tax on the income in the same way and at the same rates shown in the instructions for Form 1040NR, U.S. Nonresident Alien Income Tax Return. Also see Publication 519, U.S. Tax Guide for Aliens, and Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.

Many of the individual states of the United States tax the income of their residents. Some states honor the provisions of U.S. tax treaties and some states do not. Therefore, you should consult the tax authorities of the state in which you live to find out if that state taxes the income of individuals and, if so, whether the tax applies to any of your income, or whether your income tax treaty applies in the state in which you live.

Tax treaties generally reduce the U.S. taxes of residents of foreign countries as determined under the applicable treaties. With certain exceptions, they do not reduce the U.S. taxes of U.S. citizens or U.S. treaty residents. U.S. citizens and U.S. treaty residents are subject to U.S. income tax on their worldwide income.

Treaty provisions generally are reciprocal (apply to both treaty countries). Therefore, a U.S. citizen or U.S. treaty resident who receives income from a treaty country and who is subject to taxes imposed by foreign countries may be entitled to certain credits, deductions, exemptions, and reductions in the rate of taxes of those foreign countries. U.S. citizens residing in a foreign country may also be entitled to benefits under that country's tax treaties with third countries.

Foreign taxing authorities sometimes require certification from the U.S. Government that an applicant filed an income tax return as a U.S. citizen or resident, as part of the proof of entitlement to the treaty benefits. For information on this, refer to Form 8802, Application for United States Residency Certification – Additional Certification Requests. In addition, refer to the discussion at Form 6166 - Certification of U.S. Tax Residency.

Note: You should carefully examine the specific treaty articles that may apply to find if you are entitled to a:

• tax credit,
• tax exemption,
• reduced rate of tax, or
• other treaty benefit or safeguard.

The Effect of Tax Treaties

Residency for treaty purposes is determined by the applicable treaty.

If you are treated as a resident of a foreign country under a tax treaty, and not treated as a resident of the United States under the treaty (i.e., not a dual resident), you are treated as a nonresident alien in figuring your U.S. income tax. For purposes other than figuring your tax, you will be treated as a U.S. resident. For example, the rules discussed here do not affect your residency time periods to determine if you are a resident alien or nonresident alien during a tax year.

If you are a resident of both the United States and another country under each country's tax laws, you are a dual resident taxpayer. If you are a dual resident taxpayer, you can still claim the benefits under an income tax treaty. The income tax treaty between the two countries must contain a provision that provides for resolution of conflicting claims of residence.

If you are a dual resident taxpayer and you claim treaty benefits as a resident of the other country, you must timely file a return (including extensions) using Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents, and compute your tax as a nonresident alien. You must also attach a fully completed Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b). 

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: IRS    

Don’t panic! It is important to remember – not all correspondence from the IRS necessarily contains bad news.

It is the IRS’s responsibility to make sure your tax return is as accurate as it can be while it is processed and verified. These verification checks can include anything from finding and fixing basic mathematical errors to checking for required attachments, like schedules that support a credit or deduction you are claiming. The IRS also checks to confirm the amounts shown on your return match what banks, employers, third parties, and other government agencies have reported. In some cases, these checks may result in identifying a credit you could potentially claim to get a bigger refund, when the IRS determines you may be eligible for it.

The IRS has recently suspended some of its notices, but not all. Most IRS correspondence, if it relates to a question about your current tax return while it is being processed are still being sent, with the exception of the unfiled tax return requests listed in the IRS chart. Here’s what you need to know if you did receive one of these notices prior to the IRS suspension.

What should I do if I get tax return processing type of correspondence?

Open it, read it, and keep it in a safe place (in case you need it later). IRS correspondence always tells you why the IRS is writing, what topic it is about, and either what you need to do in response and by when, or it will tell you that you don’t need to reply at all.

Letters and notices aren’t always easy to understand. So, here are three resources we recommend you use if you want more help understanding that particular notice or letter:

• Taxpayer Advocate Service’s Taxpayer Roadmap: Use the ‘Did you get a notice from the IRS?’ look-up feature to find a simplified explanation of why it is being sent. Then click on the ‘See notice details’ area to find a fuller explanation of why it is being sent, what this means for you and what next steps you should take. It also provides additional links to related resources you may need to see or use to provide missing information.
• Taxpayer Advocate Service’s Get Help pages: These webpages provide detailed instructions to help you resolve the most common issues we see by yourself. They are grouped by categories. For return processing issues, start with I Got a Notice From the IRS. Then if needed review specific topics that apply to your situation like, I Made a Mistake on My Return or I Need Help Resolving My Balance Due.
• IRS’s Understanding Your IRS Notice or Letter page: These pages explain why notices are sent and contain a search feature to find your specific notice and related information.

Note: To find the correspondence number look in either the top or bottom right-hand corner. They will generally be preceded by the letters CP or LTR.

Do I need to reply?

Whether you need to reply or not will depend on the issue.

If you agree with the information or change listed, sometimes there is no need to reply. Other times, even if you do agree, you may need to provide specific information to resolve the issue, particularly if you need to verify your identity or if a schedule is missing. In most tax return processing situations, you generally have 60 days to reply, but be sure to go by the date specified in your letter.

If you disagree, the letter should outline how to dispute the issue, including what action(s) is needed and a date to complete the action by, as well information about your Taxpayer Rights.

Whether you agree or not, if it requires a reply – do not delay! You must reply by the date required or you may lose certain resolution options or may also have to pay in full before the IRS will consider your position. See more on this below.

When to respond

If your notice or letter requires a response by a specific date, there are many reasons you’ll want to comply. Here are just a few:

• minimize additional interest and penalty charges;
• prevent further action from being taken on the account or against you; and
• preserve your appeal rights if you don’t agree.

If you need more time to respond than indicated, contact the IRS using the contact information provided.

How and where to reply

The correspondence should tell you exactly where to send your response, whether it’s to a mailing address or fax number. Follow the instructions.

What if I want to talk to someone?

Each notice or letter should include contact information. The telephone number is usually found in the upper right-hand corner.

If a specific employee is working your case, it will show a specific phone number for that employee or the department manager. Otherwise, it will show the IRS toll-free number (800-829-1040).

Be aware COVID-19 continues to cause delays for IRS services, including live phone support and responding to correspondence. The IRS encourages taxpayers to make use of the IRS.gov website and its online resources, like Tax Law Questions to get questions answered and find resources to resolve problems.

Important: You’ll want to check the IRS’s Help for taxpayers and tax professionals: Special filing season alerts page for announcements related to processing 2021 tax returns before you call in case the information you need is located there.

The best days to call the IRS are Wednesdays, Thursdays, and Fridays. The IRS advises that wait times are the longest on Mondays and Tuesdays, and close to the April filing deadline.

Have a copy of your tax return and the correspondence available when you call.

Wait – I still need help

You can generally resolve most notices or letters without help, but you can also get the help of a professional – either the person who prepared your return, or another tax professional.

If you can’t afford to hire a tax professional to assist you, you may be eligible for free or low cost representation from an attorney, certified public accountant, or enrolled agent associated with a Low Income Taxpayer Clinic (LITC). In addition, LITCs can help if you speak English as a second language and need help understanding the notice or letter. For more information or to find an LITC near you, see the LITC page or IRS Publication 4134, Low Income Taxpayer Clinic List.

If your IRS problem is causing you financial hardship, see Can TAS help me with my tax issue?.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: TAS     

If you sold your main home, you may be able to exclude up to $250,000 of gain ($500,000 for married taxpayers filing jointly) from your federal tax return. This exclusion is allowed each time that you sell your main home, but generally no more frequently than once every two years.

To be eligible for this exclusion, your home must have been owned by you and used as your main home for a period of at least two out of the five years prior to its sale. You also must not have excluded gain on another home sold during the two years before the current sale.

If you and your spouse file a joint return for the year of the sale, you can exclude the gain if either of you qualify for the exclusion. But both of you would have to meet the use test to claim the $500,000 maximum amount.

To exclude gain, a taxpayer must both own and use the home as a principal residence for two of the five years before the sale. The two years may consist of 24 full months or 730 days. Short absences, such as for a summer vacation, count as periods of use. Longer breaks, such as a one-year sabbatical, do not.

If you do not meet the ownership and use tests, you may be allowed to exclude a reduced maximum amount of the gain realized on the sale of your home if you sold your home due to health, a change in place of employment, or certain unforeseen circumstances. Unforeseen circumstances include, for example, divorce or legal separation, natural or man-made disaster resulting in a casualty to your home, or an involuntary conversion of your home.  

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters   

If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. You are subject to tax on worldwide income from all sources and must report all taxable income and pay taxes according to the Internal Revenue Code.

Many Americans living abroad qualify for special tax benefits, such as the foreign earned income exclusion and foreign tax credit, but they can only get them by filing a U.S. return. For further details, see Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.

U.S. taxpayers who own foreign financial accounts must report those accounts to the U.S. Treasury Department, even if the accounts don't generate any taxable income. Taxpayers should file a Report of Foreign Bank and Financial Accounts (FBAR) electronically by April 18, 2022, using the BSA E-Filing System. For further details see Report of Foreign Bank and Financial Accounts (FBAR).

Taxpayers must also report virtual currency transactions to the IRS on their tax returns; these transactions are taxable by law just like any other property transaction. For more information see Virtual Currencies.

When to File

If you are a U.S. citizen or resident alien residing overseas, or are in the military on duty outside the U.S., on the regular due date of your return, you are allowed an automatic 2-month extension to file your return without requesting an extension. For a calendar year return, the automatic 2-month extension is to June 15. For calendar year 2021 you must pay any tax due by April 18, 2022, or interest will be charged.

If you qualify for the 2-month extension but are unable to file your return by the automatic 2-month extension date, you can request an additional extension to October 15 by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, before the automatic 2-month extension date. If you are allowed extensions to June 15 and/or October 15, you will owe interest on any unpaid tax amount from the original due date of the return (April 18, 2022, for calendar year 2021).

Where to File

If you are a U.S. citizen or resident alien (including a green card holder) and you live in a foreign country, and you are:

Requesting a refund, or no check or money order enclosed, mail your U.S. tax return to:

Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0215
USA

Enclosing a check or money order, mail your U.S. tax return to:

Internal Revenue Service
P.O. Box 1303
Charlotte, NC 28201-1303
USA

Electronic Filing (e-file)

Taxpayers with an AGI (Adjusted Gross Income) within a specified threshold can electronically file their tax return for free using Free File. Taxpayers with an AGI greater than the specified threshold can use the Free File Fillable Forms, the e-file by purchasing commercial software, or the Authorized IRS e-file Provider Locator Service. A limited number of companies provide software that can accommodate foreign addresses.

Taxpayer Identification Number

Each taxpayer who files, or is claimed as a dependent on, a U.S. tax return will need a social security number (SSN) or individual taxpayer identification number (ITIN). To obtain an SSN, use form SS-5, Application for a Social Security Card. To get form SS-5, or to find out if you are eligible for a social security card, contact a Social Security office or visit Social Security International Operations. If you, or your spouse, are not eligible for a SSN, you can obtain an ITIN by filing form W-7 along with appropriate documentation.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: IRS         

The Inflation Reduction Act, which includes expanded or extended tax credits and additional funding for the IRS, was signed into law on August 16, 2022.

How could the Inflation Reduction Act impact you when filing your next tax return?

Below is a simplified summary of how the Inflation Reduction Act may affect you.

Health Care

The Inflation Reduction Act includes:

• Extension of Affordable Care Act (ACA) funding through 2025. This funding, which was due to expire at the end of 2022, will allow consumers to continue to buy insurance with lower premiums through the Health Insurance Marketplace (also referred to as the Marketplace or the Exchange).
• Extension of the American Rescue Plan Act (ARPA) temporary exception that allows taxpayers with incomes above 400 percent of the Federal Poverty Level to qualify for the Premium Tax Credit.
•  

Energy Efficient Home Improvement Credit

The Nonbusiness Energy Property Credit was extended through 2032 and renamed the Energy Efficient Home Improvement Credit.

Starting in 2023, the credit will be equal to 30 percent of the costs of all eligible home improvements made during the year. Additionally:

• The $500 lifetime limit on the total credit amount will be replaced with a $1,200 annual limit.
• The annual limits for specific types of qualifying improvements will be:
  • $150 for home energy audits;
  • $250 for any exterior door ($500 total for all exterior doors) that meet applicable Energy Star requirements;
  • $600 for exterior windows and skylights that meet Energy Star most efficient certification requirements;
  • $600 for other qualified energy property, including central air conditioners; electric panels and certain related equipment; natural gas, propane, or oil water heaters; oil furnaces; water boilers;
  • $2,000 for heat pump and heat pump water heaters; biomass stoves and boilers. This category of improvement is not limited by the $1,200 annual limit on total credits or the $600 limit on qualified energy property; and
  • Roofing will no longer qualify.

For eligible home improvements using products placed in service after 2024, no credit will be allowed unless the manufacturer of any purchased item creates a product identification number for the product and the taxpayer claiming the credit includes the number on his or her return for that tax year.

Note: For 2022, the prior credit rules apply.

Residential Clean Energy Credit

The Residential Energy Efficient Property Credit, now called the Residential Clean Energy Credit, was previously scheduled to expire at the end of 2023 but has been extended through 2034. The Inflation Reduction Act also increased the credit amount, with a phaseout of the applicable percentage.

Amount of Credit:

• 30 percent for 2023-2032;
• 26 percent for 2033; and
• 22 percent for 2034.

The credit no longer applies to biomass furnaces and water heaters, now covered under the Energy Efficient Home Improvement Credit. Starting in 2023, however, the new credit will apply to battery storage technology with a capacity of at least three kilowatt hours.

Clean Vehicle Credits

The Inflation Reduction Act extends the Clean Vehicle Credit until the end of 2032 and creates new credits for previously-owned clean vehicles and qualified commercial clean vehicles.

Tax credits include up to:

• $7,500 for the purchase of new qualified commercial clean vehicles;
• $40,000 for vehicles over 14,000 pounds; and
• the lesser of 30 percent of the price of used electric vehicles or $4,000.

Limitations apply based on the manufacturer’s suggested retail price of the vehicle. There are also limitations for the new vehicle credit based on adjusted gross income (AGI) thresholds – for single or married filing separately taxpayers, the limit is $150,000; for taxpayers filing as head of household, the limit is $225,000; and for married filing jointly, or surviving spouse taxpayers, the limit is $300,000. Reduced AGI limitations apply to the used vehicle credit.

Starting in 2024, the Inflation Reduction Act establishes a mechanism that will allow car buyers to transfer the credit to dealers at the point of sale so that it can directly reduce the purchase price.

Taxes and IRS Funding

The Inflation Reduction Act also includes:

• 15 percent minimum tax on corporations with over $1 billion in revenue;
• 1 percent excise tax on corporate share buybacks; and
• About $79 billion of additional funding over ten years for the IRS.

The IRS is preparing a plan showing how it expects to use the additional funding. In a recent letter to all Members of the Senate, IRS Commissioner Charles Rettig stated, “These resources are absolutely not about increasing audit scrutiny on small businesses or middle-income Americans…Other resources will be invested in employees and IT systems that will allow us to better serve all taxpayers, including small businesses and middle-income taxpayers.”

More information

The Inflation Reduction Act makes these and several additional changes to the Internal Revenue Code.  While these changes may not impact your individual tax bill, the extended tax credits may save you money at tax time.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: TAS    

The IRS reminds taxpayers that specific rules apply for taking a tax deduction for donating cars to charities. If the claimed value of the donated motor vehicle, boat or plane exceeds $500, you can deduct the smaller of the vehicle's FMV on the date of the contribution or the gross proceeds received from the sale of the vehicle.

People who want to take a deduction for the donation of their vehicle on their tax return should take quite a few steps, but here is the most obvious:

Check that the Organization is Qualified.

Taxpayers must make certain that they contribute their car to an eligible organization; otherwise, their donation will not be tax deductible. Taxpayers can search Tax Exempt Organization Search to check that an organization is qualified. In addition, taxpayers can call IRS Tax Exempt/Government Entities Customer Service at 1-877-829-5500. Be sure to have the organization's correct name and its headquarters location, if possible. Churches, synagogues, temples, mosques and governments are not required to apply for this exemption in order to be qualified.  Please contact us if you're considering a car donation for your tax return!

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters  

Como parte de un esfuerzo más amplio para aumentar la seguridad, el Servicio de Impuestos Internos y los socios de la Cumbre de Seguridad recordaron hoy a los contribuyentes que podrían obtener protección adicional a partir de enero si se unen al programa de Número de identificación personal de protección de identidad (IP PIN, por sus siglas en inglés) de la agencia.

Cualquier persona que tenga un Número de Seguro Social (SSN) o un Número de identificación personal del contribuyente (ITIN, por sus siglas en inglés) y pueda verificar su identidad es elegible para inscribirse en el programa IP PIN. Más de 6.6 millones de contribuyentes ahora se protegen contra el robo de identidad relacionado con los impuestos al participar en el programa IP PIN. El año pasado, el IRS hizo cambios al programa para facilitar la participación de más contribuyentes. La manera más rápida y sencilla de recibir un IP PIN es mediante la herramienta Obtenga un IP PIN, que estará disponible en enero.

El recordatorio de hoy marca el cuarto día de la Semana Nacional de Seguridad Tributaria, que se extiende hasta el 2 de diciembre. La Cumbre de Seguridad patrocina esta celebración anual como parte de un esfuerzo mayor entre el IRS, las agencias tributarias estatales, así como las industrias de software de impuestos y profesionales de impuestos de la nación.

La Cumbre de Seguridad se estableció en 2015 para proteger a los contribuyentes y al sistema tributario de la nación contra el robo de identidad relacionado con los impuestos. Esta colaboración única entre los sectores público y privado ha aumentado las defensas mutuas contra los delincuentes que intentan presentar declaraciones de impuestos fraudulentas y robar reembolsos.

Una de las características críticas del sistema del IRS involucra un IP PIN, que es un número de seis dígitos asignado a los contribuyentes elegibles para ayudar a prevenir el uso indebido de su número de Seguro Social o Número de Identificación Personal del Contribuyente en declaraciones federales de impuestos fraudulentas.

Un IP PIN es conocido únicamente por el contribuyente y el IRS. Inicialmente diseñado para víctimas confirmadas de robo de identidad relacionado con los impuestos, el programa IP PIN se amplió en 2021 para incluir a cualquier contribuyente de todo el país que quiere la protección y seguridad adicional de usar un IP PIN para presentar declaraciones de impuestos al IRS.

"Evitar que alguien presente una declaración de impuestos a nombre de otra persona es la razón principal por la que queremos que las personas tengan este código especial," dijo Doug O'Donnell, Comisionado interino del IRS. "Alentamos a las personas a solicitar el código cuando se abra el sistema en enero. Este paso provee una capa adicional de protección para los contribuyentes y sus declaraciones de impuestos."

Un IP PIN ayuda al IRS a verificar la identidad de un contribuyente y aceptar sus declaraciones federales de impuestos, independientemente de si se presentan electrónicamente o en papel. La herramienta en línea Obtenga un IP PIN en IRS.gov muestra el IP PIN del contribuyente. Cualquier contribuyente participante usará la herramienta en cada año subsiguiente para obtener un nuevo número.

El IRS insta a cualquier solicitante de IP PIN que fue rechazado durante el proceso de autenticación de identidad, a que intente solicitarlo nuevamente en 2023. El proceso de autenticación se ha refinado y mejorado, lo que permite que muchos contribuyentes excluidos en el pasado tengan más posibilidades de aprobar el proceso de autenticación.

• con fotografía, usan esta información para vendérsela a otros, o presentar declaraciones de impuestos fraudulentas, abrir cuentas de crédito y más.
• Las víctimas de robo de identidad aún deben completar una declaración jurada de robo de identidad. Cualquier víctima confirmada de robo de identidad relacionada con los impuestos aún debe presentar el Formulario 14039 al IRS si la agencia rechaza su declaración de impuestos presentada electrónicamente debido a una presentación duplicada del SSN. El IRS entonces investigará su caso. Una vez que se elimine la declaración de impuestos fraudulenta de su cuenta, el IRS enviará automáticamente un IP PIN a la víctima confirmada al comienzo del siguiente año calendario. Debido a los riesgos de seguridad, las víctimas confirmadas de robo de identidad no pueden optar por no participar en el programa IP PIN.

Opciones para personas que no pueden pasar el proceso de autenticación en línea

Hay dos opciones disponibles para las personas que no pueden pasar el proceso de autenticación de identidad en línea del IRS. Uno se trata de presentar el Formulario 15227 y el otro requiere una visita a un Centro de Asistencia al Contribuyente (TAC) del IRS. A diferencia de la opción en línea, ambas opciones implican, por razones de seguridad, un retraso en el recibo de un IP PIN.

Formulario 15227: Para la tramitación del año 2023, las personas con un ingreso bruto ajustado de $73,000 o menos y las que presentan una declaración conjunta con un AGI de $146,000 o menos con acceso a un teléfono pueden completar el Formulario 15227PDF y enviarlo por correo o por fax al IRS. Un representante del IRS les llamará entonces para verificar su identidad con una serie de preguntas. Los contribuyentes que elijan esta opción y que pasen el proceso de autentificación de la identidad recibirán, por lo general, su IP PIN en aproximadamente un mes.

Si tiene alguna pregunta sobre la contabilidad comercial esencial, los impuestos nacionales, los impuestos internacionales, la representación del IRS, las implicaciones fiscales de los Estados Unidos de las transacciones de bienes inmuebles o los estados financieros, llámenos al +305-274-5811.

Fuente: IRS    

What’s Your Taxpayer Filing Status?

For many people, December 31 means a New Year’s Eve celebration. However, from a tax perspective, it’s a key date in determining the filing status you’ll use when filing your tax return for the year. The one you’ll use depends partly on whether you’re married on that date.

The five statuses

When you file your federal tax return, you do so with one of five filing statuses. First, there’s “single” status, which is generally used if you’re unmarried, divorced or legally separated. A second status, “married filing jointly,” is for married couples who file a tax return together. If your spouse passes away, you can usually still file a joint return for that year. A third status, “married filing separately,” is for married couples who choose to file separate returns. In some cases, doing so may result in less tax owed.

“Head of household” is a fourth status. Certain unmarried taxpayers with dependents qualify to use it and potentially pay less tax. Finally, there’s a fifth status: “qualifying widow(er) with a dependent child.” It may be used if your spouse died during one of the previous two years and you have a dependent child. (Other conditions apply.)

Head of household

Let’s focus on head-of-household status because it’s often misunderstood and can be more favorable than filing as a single taxpayer. To qualify, you must “maintain a household” that, for more than half the year, is the principal home of a “qualifying child” or other relative that you can claim as a dependent.

A qualifying child is defined as someone who lives in your home for more than half the year and is your child, stepchild, foster child, sibling, stepsibling or a descendant of any of these. A qualifying child must also be under 19 years old (or a full-time student under age 24) and be unable to provide over half of his or her own support for the year.

Different rules may apply if a child’s parents are divorced. Also, a child isn’t a qualifying child if he or she is married and files jointly or isn’t a U.S. citizen or resident.

For head-of-household filing status, you’re considered to maintain a household if you live in it for the tax year and pay more than half the cost of running it. This includes property taxes, mortgage interest, rent, utilities, property insurance, repairs, upkeep and food consumed in the home. Medical care, clothing, education, life insurance and transportation aren’t included.

Under a special rule, you can qualify as head of household if you maintain a home for a parent even if you don’t live with the parent. To qualify, you must be able to claim the parent as your dependent.

You must generally be unmarried to claim head-of-household status. However, if you’ve lived apart from your spouse for the last six months of the year, you have a qualifying child living with you and you maintain the household, you’re typically considered unmarried. In this case, you may be able to qualify as head of household.

Not always obvious

Filing status may seem obvious, but there can be situations when it warrants careful consideration. If you have questions about yours, contact us.

Have You Considered A Cost Segregation Study?

Because of the economic impact of inflation, many companies may need to conserve cash and not buy much equipment. As a result, you may not be able to claim as many depreciation tax deductions as in the past. However, if your company owns real property, there may be another approach to depreciation to consider: a cost segregation study.

Depreciation basics

Business buildings generally have a 39-year depreciation period (27.5 years for residential rental properties). Typically, companies depreciate a building’s structural components (including walls, windows, HVAC systems, plumbing and wiring) along with the building. Personal property (such as equipment, machinery, furniture and fixtures) is eligible for accelerated depreciation, usually over five or seven years. And land improvements, such as fences, outdoor lighting and parking lots, are depreciable over 15 years.

Often, businesses allocate all or most of their buildings’ acquisition or construction costs to real property, overlooking opportunities to allocate costs to shorter-lived personal property or land improvements. Items that appear to be “part of a building” may in fact be personal property. Examples include removable wall and floor coverings, removable partitions, awnings, canopies, window treatments, signs and decorative lighting.

Pinpointing costs

A cost segregation study combines accounting and engineering techniques to identify building costs that are properly allocable to tangible personal property rather than real property. Although the relative costs and benefits of a cost segregation study will depend on your particular facts and circumstances, it can be a valuable investment.

It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. And, thanks to the Tax Cuts and Jobs Act, the potential benefits of a cost segregation study are even greater than they were years ago because of enhancements to certain depreciation-related tax breaks.

Worth a look

Cost segregation studies have costs all their own, but the potential long-term tax benefits may make it worth your while to undertake the process. Contact our firm for further details.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters         

Oops! You've discovered an error after your tax return has been filed. What should you do? You may need to amend your return.

The IRS usually corrects math errors or requests missing forms (such as W-2s) or schedules. In these instances, do not amend your return. However, do file an amended return if any of the following were reported incorrectly:

• Your filing status
• Your total income
• Your deductions or credits

Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct a previously filed paper or electronically-filed Form 1040 return. Be sure to enter the year of the return you are amending at the top of Form 1040X. If you are amending more than one tax return, use a separate 1040X for each year and mail each in a separate envelope to the IRS processing center for your state. The 1040X instructions list the addresses for the centers.

Form 1040X has three columns. Column A is used to show original or adjusted figures from the original return. Column C is used to show the corrected figures. The difference between the figures in Columns A and C is shown in Column B. You should explain the items you are changing and the reason for each change on the back of the form.

If the changes involve another schedule or form, attach it to the 1040X. For example, if you are filing a 1040X because you have a qualifying child and now want to claim the Earned Income Tax Credit, you must complete and attach a Schedule EIC to the amended return.

If you are filing to claim an additional refund, wait until you have received your original refund before filing Form 1040X. You may cash that check while waiting for any additional refund. If you owe additional tax for the prior year, Form 1040X must be filed and the tax paid by April 15 of this year, to avoid any penalty and interest.

You generally must file Form 1040X to claim a refund within three years from the date you filed your original return, or within two years from the date you paid the tax, whichever is later. Please contact us for more!

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters  

If you gave any one person gifts valued at more than $15,000, it is necessary to report the total gift to the Internal Revenue Service. You may even have to pay tax on the gift.

The person who received your gift does not have to report the gift to the IRS or pay either gift or income tax on its value.

You make a gift when you give property, including money, or the use of or income from property, without expecting to receive something of equal value in return. If you sell something at less than its value or make an interest-free or reduced-interest loan, you may be making a gift.

There are some exceptions to the tax rules on gifts. The following gifts do not count against the annual limit:

• Tuition or medical expenses that you pay directly to an educational or medical institution for someone's benefit
• Gifts to your spouse
• Gifts to a political organization for its use
• Gifts to charities

If you are married, both you and your spouse can give separate gifts of up to the annual limit to the same person without making a taxable gift. Please contact us for more!

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters     

Did you know that you may be able to deduct certain taxes on your federal income tax return? The IRS says you can if you file Form 1040 and itemize deductions on Schedule A. Deductions decrease the amount of income subject to taxation. There are four types of deductible non-business taxes:

1. State and local income taxes, or general sales taxes;
2. Real estate taxes; and
3. Personal property taxes

The Tax Cuts and Jobs Act (TCJA) limit the cumulative amount of the above taxes an individual can deduct in a calendar year to $10,000.

You can deduct estimated taxes paid to state or local governments and prior year's state or local income tax as long as they were paid during the tax year. If deducting sales taxes instead, you may deduct actual expenses or use optional tables provided by the IRS to determine your deduction amount, relieving you of the need to save receipts. Sales taxes paid on motor vehicles and boats may be added to the table amount, but only up to the amount paid at the general sales tax rate. Taxpayers will check a box on Schedule A, Itemized Deductions, to indicate whether their deduction is for income or sales tax.

Deductible real estate taxes are usually any state, local, or foreign taxes on real property. If a portion of your monthly mortgage payment goes into an escrow account and your lender periodically pays your real estate taxes to local governments out of this account, you can deduct only the amount actually paid during the year to the taxing authorities. Your lender will normally send you a Form 1098, Mortgage Interest Statement, at the end of the tax year with this information.

To claim a deduction for personal property tax you paid, the tax must be based on value alone and imposed on a yearly basis. For example, the annual fee for the registration of your car would be a deductible tax, but only the portion of the fee that was based on the car's value.

Call us or contact us today to find out how we can save you money!

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters    

For vehicles acquired after December 31, 2009, the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500.

The credit is available only to the original purchaser of a new qualifying vehicle, and the vehicle must be placed in service in the same year the credit is being claimed on the return. If the qualifying vehicle is leased the credit is available only to the leasing company. Also, the vehicle must be used primarily in the United States.

Additional conditions regarding qualified manufacturers and phase out rules may also apply in determining credit eligibility. To find out whether your car qualifies for the Qualified Plug-in Electric Drive Motor Vehicle tax credit, you can go to the IRS.gov website and search for "plug-in vehicles" or contact us for more information.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: Thomson Reuters   

En el martes de dar o "Giving Tuesday", el Servicio de Impuestos Internos (IRS) y sus Socios de la Cumbre de Seguridad advirtieron a los contribuyentes a tener cuidado con estafadores que usan organizaciones benéficas falsas, no solo durante la temporada de fiestas, si no el año entero.

Para el segundo día de la Semana Nacional de Seguridad Tributaria, el IRS y sus Socios de la Cumbre de Seguridad urgen a las personas a que se aseguren de que su dinero vaya a organizaciones benéficas legitimas. Estar alerta a estafas potenciales no solo protege el dinero de los contribuyentes si no también los datos personales y financieros que pueden usarse para el robo de identidad relacionado con los impuestos.

"Las personas deben tener cuidado con las organizaciones benéficas falsas que crean problemas en múltiples frentes," dijo Doug O'Donnell, Comisionado interino del IRS. "Los donantes bien intencionados no solo pueden perder su dinero y un posible crédito por donación benéfica, si no también podría resultar en el robo de información personal y financiera. Le urgimos a las personas a que actúen responsablemente antes de donar y sigan los consejos para asegurarse de que la organización benéfica es legítima."

Trabajando juntos como la Cumbre de Seguridad, el IRS, las agencias tributarias estatales y la industria de software y de profesionales de impuestos brindan consejos esta semana para ayudar a proteger a los contribuyentes contra el robo de identidad al igual que la información tributaria que los criminales usan para presentar declaraciones de impuestos falsas y obtener reembolsos. Este esfuerzo es parte de la Semana Nacional de Seguridad Tributaria, ahora en su séptimo año.

Los estafadores a menudo se aprovechan de la generosidad de las personas al establecer organizaciones benéficas falsas para engañar a los donantes desprevenidos para que regalen no solo dinero, sino también su información personal confidencial. Pueden usar la temporada festiva y otros eventos oportunos como los desastres recientes para tratar de llegar a las personas y atraerlas a hacer una donación. Las estafas que solicitan donaciones para los esfuerzos de ayuda en casos de desastres son especialmente comunes por teléfono. Sin embargo, los estafadores también usan los correos electrónicos, sitos web y mensajes por redes sociales que parecen provenir de organizaciones benéficas legitimas para engañar a las personas a dar dinero o información personal.

El IRS y sus socios de la Cumbre de Seguridad instan a las personas a asegurarse de que su dinero se destine solo a organizaciones benéficas legitimas. Estar alerta a posibles estafas no solo protegerá el dinero de los contribuyentes, sino que también ayudará a proteger los datos personales y financieros que pueden usarse en el robo de identidad relacionado con los impuestos.

• No se deje presionar. Los estafadores a menudo usan la técnica de urgencia eminente para presionar a las personas a hacer un pago inmediato. Las organizaciones benéficas legitimas están felices de recibir una donación en cualquier momento, no hay prisa. Se pide a los donantes que se tomen el tiempo de hacer sus propias investigaciones. No olvide que los estafadores pudieran alterar o "falsificar" su identificador de llamadas para hacerse pasar por una organización benéfica legitima.
   
• Tenga cuidado de cómo solicitan la donación. Los contribuyentes no deben trabajar con organizaciones benéficas que soliciten donativos a través de números de tarjeta de regalo o transferencia de dinero. Eso es una estafa. Es más seguro pagar con tarjeta de crédito o cheque, y sólo después de investigar la organización benéfica.
   
• No de más de lo necesario. Los estafadores buscan dinero, pero la información personal puede ser igual de valiosa. Los contribuyentes deben tratar la información personal igual que su dinero en efectivo y no entregársela a cualquiera. Nunca proporcione números de Seguro Social, números de tarjetas de crédito o números de PIN. Solo proporcione información financiera limitada cuando esté seguro de que la organización benéfica es legítima. 

Los contribuyentes que dan dinero o bienes a una organización benéfica pueden reclamar una deducción (en inglés) en su declaración de impuestos federal al reducir el monto de su ingreso tributable. Sin embargo, para recibir una deducción, los contribuyentes deben donar a una organización benéfica calificada.

Si tiene alguna pregunta sobre la contabilidad comercial esencial, los impuestos nacionales, los impuestos internacionales, la representación del IRS, las implicaciones fiscales de los Estados Unidos de las transacciones de bienes inmuebles o los estados financieros, llámenos al +305-274-5811.

Fuente: IRS      

If you can't meet the April 15 deadline to file your tax return, you can get an automatic six-month extension of time to file from the IRS. The extension will give you extra time to get the paperwork into the IRS, but it does not extend the time you have to pay any tax due. You will owe interest on any amounts not paid by the April deadline, plus a late payment penalty if you have paid less than 90 percent of your total tax by that date.

You must make an accurate estimate of any tax due when you request an extension. You may also send a payment for the expected balance due, but this is not required to obtain the extension.

To get the automatic extension, file Form 4868, Application for Extension of Time to File U.S. Individual Income Tax Return, with the IRS by the April 15 deadline, or make an extension-related electronic payment. You can file your extension request by computer or mail the paper Form 4868 to the IRS.

The system will give you a confirmation number to verify that the extension request has been accepted. Put this confirmation number on your copy of Form 4868 and keep it for your records. Do not send the form to the IRS.  As this is the area of our expertise, please contact us for more detailed information on how to file an extension properly!

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source:Thomson Reuters  

Steps you can take now to make tax filing easier in 2023

The Internal Revenue Service today encouraged taxpayers to take simple steps before the end of the year to make filing their 2022 federal tax return easier. With a little advance preparation, a preview of tax changes and convenient online tools, taxpayers can approach the upcoming tax season with confidence.

View your account online

Use online account to securely access the latest information available about your federal tax account and see information from your most recently filed tax return.

You can:

• View your tax owed, payments, and payment plans
• Make payments and apply for payment plans
• Access your tax records
• Sign Power of Attorney authorizations electronically from your tax professional
• Manage your communication preferences from the IRS

Gather and organize your tax record

Organized tax records make preparing a complete and accurate tax return easier. It helps you avoid errors that lead to processing delays that slow your refund and may also help you find overlooked deductions or credits.

Wait to file until you have your tax records including:

• Forms W-2 from your employer(s)
• Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, pension, annuity or retirement plan distributions
• Form 1099-K, 1099-MISC, W-2 or other income statement if you worked in the gig economy
• Form 1099-INT if you were paid interest
• Other income documents and records of digital asset transactions
• Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance payments or claims Premium Tax Credits for 2022 Marketplace coverage
• IRS or other agency letters
• CP01A Notice with your new Identity Protection PIN

Notify the IRS if your address changes and notify the Social Security Administration of a legal name change.

Remember, most income is taxable. This includes:

• unemployment income,
• interest received,
• income from the gig economy, and
• digital assets.

Check your Individual Tax Identification Number (ITIN)

An ITIN only needs to be renewed if it has expired and is needed on a U.S. federal tax return. If you do not renew an expiring or expired ITIN, the IRS can still accept your tax return, but it may delay processing it or delay tax credits owed to you, such as the Child Tax Credit and the American Opportunity Tax Credit, which can impact when you get your tax refund.

If your ITIN wasn't included on a U.S. federal tax return at least once for tax years 2019, 2020, and 2021, your ITIN will expire on December 31, 2022.

As a reminder, ITINs with middle digits 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, or 88 have expired. In addition, ITINs with middle digits 90, 91, 92, 94, 95, 96, 97, 98, or 99, IF assigned before 2013, have expired. If you previously submitted a renewal application and it was approved, you do not need to renew again.

The IRS processes requests in the order they were received. Currently, IRS is working ITIN applications received in July 2022. Your patience is appreciated. You will be notified once your ITIN is assigned or if additional information is needed. 

Make sure you’ve withheld enough tax

Consider adjusting your withholding if you owed taxes or received a large refund when you filed. Changing your withholding can help you avoid a tax bill or let you keep more money each payday. Credit amounts may change each year, so visit IRS.gov and use the Interactive Tax Assistant to identify whether you qualify for any tax credits that may call for a withholding adjustment. Life changes – getting married or divorced, welcoming a child, or taking on a second job - may also mean changing withholding.

Use the Tax Withholding Estimator to help you determine the right amount of tax to have withheld from your paycheck. This tool on IRS.gov will help determine if you need to adjust your withholding and submit a new Form W-4 to your employer.

Consider estimated tax payments. If you receive a substantial amount of non-wage income like self-employment income, investment income, taxable Social Security benefits and in some instances, pension and annuity income you should make quarterly estimated tax payments, with the last payment for 2022 due on January 17, 2023.

Log in to your online account to make a payment online or go to IRS.gov/payments.

The fastest way for you to get your tax refund is by filing electronically and choosing direct deposit. Direct deposit gives you access to your refund faster than a paper check. Get your routing and account number by signing into your online banking account or contacting your bank.

Get banked to speed tax refunds with direct deposit

Don't have a bank account? Learn how to open an account at an FDIC-Insured bank or through the National Credit Union Locator Tool. If you are a Veteran, see the Veterans Benefits Banking Program (VBBP) for access to financial services at participating banks.

Prepaid debit cards or mobile apps may allow direct deposit of tax refunds. They must have routing and account numbers associated with them that can be entered on your tax return. Check with the mobile app provider or financial institution to confirm which numbers to use. 

Direct deposit also avoids the possibility that a refund check could be lost or stolen or returned to the IRS as undeliverable.  

What’s new and what to consider when you file in 2023

More taxpayers will be receiving Form 1099-K

Change is effective Jan. 1, 2022.  All third-party payment platforms are required to issue Forms 1099-K when payments to merchants for goods and services exceed $600.

What is reported on a 1099-K? If you accepted $600 or more in 2022:

• by payment cards for good and services, you will receive one Form 1099-K for the total amount of the payments from each payment card.
• from a third-party payment app, you will receive one Form 1099-K from that organization for the total amount.

When will I get the 1099-K and what should I do with it? 2022 Forms 1099-K must be furnished to the payee by January 31, 2023. Use this information return with your other tax records to determine your correct tax. 

What is not reported on a 1099-K? Money received as a gift or reimbursement of a share of a meal or rent should not be reported on a 1099-K. Payments should indicate whether they are personal to family and friends or a business transaction for goods and services. 

What if the information is wrong? If the information is incorrect on the 1099-K, contact the payer immediately, whose name appears in the upper left corner on the form. Keep a copy of all correspondence with the payer with your records. If you cannot get the form corrected, you may attach an explanation of the error to your tax return and report your income correctly.

The IRS cannot correct inaccurate Forms 1099-K.

2022 changes that may affect your tax refund

Changes in the number of dependents, employment or self-employment income and divorce, among other factors, may affect your tax-filing status and refund for 2023.

No additional stimulus payments.  Unlike 2020 and 2021, there were no new stimulus payments for 2022 so taxpayers should not expect to get an additional payment in their 2023 tax refund.

Some tax credits return to 2019 levels. Several tax credits, including the Child Tax Credit (CTC), the Earned Income Tax Credit (EITC) and the Dependent Care Credit will revert to pre-COVID levels. This means that taxpayers will likely receive a significantly smaller refund compared with the previous tax year. For a comparison, those who got $3,600 per dependent in 2021 for the CTC will get $2,000 for the 2022 tax year. Similarly, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $500 in 2022. And the Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021. Visit Credits and Deductions for more details.

No above-the-line charitable deductions. During COVID, taxpayers were able to take up to a $600 charitable donation tax deduction on their tax returns. However, in 2022, this deduction will return to pre-COVID rules, which will not allow those who take a standard deduction to make an above-the-line deduction for charitable donations.

More people may be eligible for the Premium Tax Credit.
For tax year 2022, taxpayers may qualify for temporarily expanded eligibility for the premium tax credit. Remember that simply meeting the income requirements does not mean you're eligible for the premium tax credit. You must also meet the other eligibility criteria.

The Inflation Reduction Act of 2022 changes the eligibility rules to claim a tax credit for clean vehicles. More details about clean vehicles will be available in coming months.

Avoid refund delays and understand refund timing

Many different factors can affect the timing of your refund after we receive your return. Although the IRS issues most refunds in less than 21 days, the IRS cautions taxpayers not to rely on receiving a refund by a certain date, especially when making major purchases or paying bills.

Identity Theft and refund fraud. Some returns may require additional review and may take longer. The IRS, along with its partners in the tax industry, continue to strengthen security reviews to help protect against identity theft and refund fraud.

IRS cannot issue EITC and ACTC refunds before mid-February. Refunds for people claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) can't be issued before mid-February. The law requires the IRS to hold the entire refund − even the portion not associated with EITC or ACTC.

Returns requiring manual review. Some returns, filed electronically or on paper, may need manual review delaying the processing if our systems detect a possible error, the return is missing information, or there is suspected identity theft or fraud. Some of these situations require us to correspond with taxpayers, but some do not. This work does require special handling by an IRS employee so, in these instances, it may take the IRS more than the normal 21 days to issue any related refund. In those cases where IRS is able to correct the return without corresponding, the IRS will send an explanation to the taxpayer.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: IRS