Small firms have the flexibility in choosing how often to file payroll tax returns. If you have a new business and expect your yearly federal employment taxes to be $1,000 or less, then you can select the option to file and annual Form 944 when you apply for an employer identification number. Those who don’t […]
A strategy for inherited IRAs has been curbed by the enactment of the SECURE Act late last year: The stretch IRA for nonspouse beneficiaries. Before the SECURE Act, IRA owners who died could leave their accounts to their children, grandchildren or other nonspouse beneficiaries, and heirs could stretch the required minimum distributions over their own […]
IRS in intensely interested in filers who transact in virtual currency. And it is requiring more disclosure. Starting with returns filed this year, people must answer on Schedule 1 of the 1040 whether they have received, disposed of, sold, exchanged or acquired any financial interest in virtual currency, such as bitcoin. If the answer in […]
The threshold for deducting medical expenses on Schedule A is 7.5% of AGI. The adjusted-gross-income threshold was slated to jump from 7.5% to 10% after 2018, but the year-end government funding law revived the 7.5% figure for 2019 and 2020.
The fine for filing late returns is higher for returns with post-2019 due dates. The minimum penalty for returns filed 60 or more days after the due date is the lesser of $435 (up from $215) of 100% of the required tax shown on the return.