It should come as no surprise that many taxpayers are struggling to pay their taxes. In fact, because of the COVID-19 pandemic, over 11,000,000 taxpayers owe back taxes to the IRS. During the first phase of the pandemic, the IRS put a temporary halt to most of its collection efforts. A big help. However, a while ago the IRS started ramping up its collection efforts again … [Read more...]
Filing tips
Sorted by Date
Tax Considerations When a Loved One Passes Away (Part 1)
When a loved one passes away and the painful grieving process begins, the last thing on your mind are taxes and complicated financial matters. But these things are tremendously important, and as soon as possible you’ll need to attend to them. That’s why, starting with this issue, the Tax Reduction Letter is beginning a three-part series designed to help executors perform … [Read more...]
Use the IRS Safe-Harbor Tax Relief for Ponzi Scheme Losses
A good Ponzi scheme can be hard to detect. For example, the schemer may pay 10% interest when the going rate is 5%. But the Ponzi swindler pays the victim’s 10 percent with money collected from other victims. It’s a house of cards that ultimately fails as Bernie Madoff can attest. Victims can lose their entire investments. Why is the Tax Reduction Letterinterested in … [Read more...]
Be Sure to Pay the PCORI Fee if You Have an HRA
What the heck is the pesky little PCORI fee you have to pay and why should you care? Here’s the short answer… If you’ve established a Health Reimbursement Arrangement (HRA) for your employees and/or your spouse, you’ve got to pay the small PCORI fee to Uncle Sam. (More details below.) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ A Quick Reminder.HRAs that you likely have come … [Read more...]
TCJA: Don’t Lose Out When Corp. Vehicle Is in Your Personal Name
Do you operate your business as an S or C corporation? Do you drive a vehicle for business purposes that’s registered in your own name? Then watch out! You see, the Tax Cuts and Jobs Act (TCJA) changed the rules for tax years 2018 to 2025. These changes in the tax law deny 1040 employee business-expense deductions when you use a personal vehicle for corporate … [Read more...]