News 

IRS asks for extra cash: Are Americans more at risk of being audited?

“Throughout fiscal year 2016, the overall number of individual tax returns audited by the IRS dropped to 0.7%, the lowest level in more than a decade” writes Brittany De Lea for foxbusiness.com. Everson views tax reform as an opportunity for the IRS to start fresh.Since some enforcement procedures at the IRS are tied to budgetary constraints, the number of audits moving forward could be linked to the success of the tax reform rollout. Source: foxbusiness.com Share This:

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IRS in crisis? GOP pressed to increase funds with tax reform on the line

“Underfunding the IRS, especially as our tax code becomes more complex, makes cheating easier, enforcement harder, and delays refunds.”” writes Brittany De Lea for foxbusiness.com. David Kautter, a top tax policy official at the Treasury Department, is serving as interim IRS commissioner.”The fact that the IRS may struggle in the future is no surprise, since Republicans have been cutting their funding for years,” Sen.During the 1986 Reagan-era tax cuts, for example, the agency increased its headcount by 1,300. Source: foxbusiness.com Share This:

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Crypto News 

‘It’s going to be a nightmare’: Some bitcoin investors are in for a rocky tax season

“Although McAuliffe doesn’t intend to exchange his virtual currency back into dollars anytime soon, other investors have” reports washingtonpost.com. You might owe capital gains tax if the bitcoin you paid at the cash register had increased in value from the time you first acquired it.But many retail investors who do not frequent the site are now coming to grips with the tax consequences of their bets.There’s “going to be a big wake-up call in the next month or two,” Schaefer said. “There’s mom-and-pop investors asking about it now.At stake this year…

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Workers must use IRS tool to ensure paychecks’ accuracy under new tax rules

“A senior IRS official said Thursday that Americans with simple tax situations are likely to get accurate paychecks next month” reports washingtonpost.com. Here’s what is in it.] The new guidelines incorporate lower tax rates that were central to Congress’s December tax overhaul.But these tax withholding decisions are based on tax forms Americans file with their employers, known as W-4s, that were written to apply to an outdated tax system.The guidelines are necessary for businesses to calculate how much to withhold in taxes from employees’ paychecks beginning as soon as next…

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IRS needs funding for GOP tax overhaul, report says

“The tax agency needs to update forms, create new definitions, write regulations and field questions from taxpayers, which tend to increase when Congress passes new laws” reports foxbusiness.com. It’s far from clear, however, whether Congress will provide the IRS with additional money to implement the new tax system.The Internal Revenue Service, after years of budget cuts, will have its hands full implementing the new tax law, according to the agency’s in-house public advocate.The IRS budget declined 12.7% in constant dollars from its 2010 peak to fiscal 2016, according to agency data, and IRS staffing was down…

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News 

White House opts for speed over accuracy in implementing new tax law

“The law cuts income tax rates at all levels for the next several years, meaning most taxpayers will see at least modest decreases in their federal bills” reports washingtonpost.com. But that process could have taken months, likely delaying any benefit from the tax cuts until much later in 2018.The White House and IRS faced several options for implementing the new income tax regime.The Trump administration is pushing American businesses to withhold less in taxes from paychecks by February, aiming to quickly deliver the boost in take-home pay that Republicans promised…

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Infosys signs agreement with U.S. IRS; sees lower tax rate

“(Reuters) – Indian software services company Infosys Ltd on Tuesday said it has signed an agreement with the U.S. Internal Revenue Service (IRS), resulting in an effective tax rate of about 100 basis points lower going forward” reports businessinsider.com. The Advanced Pricing Agreement (APA), now concluded following discussions initiated in 2015, is expected to result in reversal of tax provisions of about $225 million made in the previous periods and boost the company’s consolidated basic earnings per share by about $0.10 for quarter ended December 31, the Bengaluru-based company said…

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SWEET: Prepaying property taxes to cut federal tax bill a confusing mess for now

“At issue: At present, taxpayers can take unlimited deductions for state and local taxes and property taxes” writes Lynn Sweet for suntimes.com. The property tax system in Illinois is confusing.WASHINGTON — This is a column about the tens of thousands of people in the Chicago area who are rushing to prepay property taxes, gambling that the move will earn them a one-time break on federal taxes due next April.So if this whole matter of hurrying to prepay local property taxes in order to maybe reduce your federal tax bill due…

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IRS to property tax prepayers: Not so fast!

“State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed,” the IRA advisory said” writes Usa Today for thedailyjournal.com. The property tax must be billed, too,” Nicole Kaeding, an economist with the Center for State Tax Policy at the Tax Foundation, wrote in a Wednesday blog post.Go do it.’ ” ► Dec. 21: Tax bill passage prompts last-minute tax tips for 2017 ► Dec. 21: Tax reform is done.Before the IRS issued its advisory, taxpayers in…

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IRS Puts Breaks on Paying Property Taxes Before New Rules Kick In

“The bill that was signed into law earlier this month reduces the itemized tax deductions for local and state property taxes to $10,000” writes Tony Owusu for thestreet.com. “The Internal Revenue Service advised tax professionals and taxpayers Wednesday that pre-paying 2018 state and local real property taxes in 2017 may be tax deductible under certain circumstances,” a statement on the government agency’s website reads. Source: thestreet.com Share This:

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