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In certain cases, the IRS is required to use private debt collection agencies (PCAs) to collect the amounts owed. The IRS wants the public to be aware that, with identity theft heating up, scammers pretending to be from PCAs are placing random calls, demanding payment from unsuspecting taxpayers. Here’s what you need to know: The initial PCA contact will never be by phone. The taxpayer will first receive a letter...

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November 25, 2019

At this time of year, many business owners ask if there’s anything they can do to save tax for the year. Under current tax law, there are two valuable depreciation-related tax breaks that may help your business reduce its 2019 tax liability. To benefit from these deductions, you must buy eligible machinery, equipment, furniture or other assets and place them into service by the end of the tax year. In...

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November 24, 2019

For tax purposes, December 31 means more than New Year’s Eve celebrations. It affects the filing status box that will be checked on your tax return for the year. When you file your return, you do so with one of five filing statuses, which depend in part on whether you’re married or unmarried on December 31. More than one filing status may apply, and you can use the one that...

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November 24, 2019

If you have minor children, arguably the most important estate planning decision you need to make is choosing a guardian for them should the unthinkable occur. If you haven’t yet made this decision, formalize your choice as soon as possible. When it comes to choosing the best candidate, you probably already have a short list consisting of members of your immediate family. This is an excellent start, but don’t forget...

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November 24, 2019

A job description may seem like just so many words on a page or website. But those words have power. They can either set an employer and employee on a path toward a positive, fruitful relationship or on a downward spiral into confusion and conflict. To keep your organization on the road to success, review and, if necessary, revise your job descriptions regularly. Clarity and comprehensiveness Job duties often evolve...

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November 24, 2019

The IRS has issued new guidance updating the rules for using optional standard mileage rates when calculating “above-the-line” deductions for the costs of operating an automobile for certain purposes. IRS Revenue Procedure 2019-46 also lays out rules for establishing the amount of an employee’s transportation expenses that are reimbursed using the optional standard mileage rates. Understanding the allowable deductions The Tax Cuts and Jobs Act (TCJA) temporarily suspends all miscellaneous...

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November 24, 2019

The right entity choice can make a difference in the tax bill you owe for your business. Although S corporations can provide substantial tax advantages over C corporations in some circumstances, there are plenty of potentially expensive tax problems that you should assess before making the decision to convert from a C corporation to an S corporation. Here’s a quick rundown of four issues to consider: LIFO inventories. C corporations...

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November 17, 2019

You can reduce taxes and save for retirement by contributing to a tax-advantaged retirement plan. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a taxwise way to build a nest egg. If you’re not already contributing the maximum allowed, consider increasing your contribution rate between now and year end. Because of tax-deferred compounding (tax-free in the case of Roth accounts), boosting contributions sooner rather...

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November 17, 2019

The Tax Cuts and Jobs Act (TCJA) made only one change to the federal gift and estate tax regime, but it was a big one. It more than doubled the combined gift and estate tax exemption, as well as the generation-skipping transfer (GST) tax exemption. This change is only temporary, however. Unless Congress takes further action, the exemptions will return to their inflation-adjusted 2017 levels starting in 2026. What does...

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November 17, 2019

Year end can be a stressful time for those in ownership and management positions. Along with having to tackle myriad tasks related to financial reporting and tax planning, you also probably need to plan a holiday party. And whether it’s the food or the venue or the time of day, employees have been known to grumble about the finer points of these gatherings. Although it may be difficult to please...

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November 17, 2019