Fix the Underpayment Tax Penalty You’re Headed For with A Simple Halloween Trick 😮
by TaxDoctor on October 19, 2018 at 3:22 pm
In a few months the U. S. will begin filing tax returns again, and at tax firms all over the country people will be making the “E-Trade” Shocked Baby Face (remember him?) when they see they are being charged penalties and interest for under paying their taxes due. Even if they made a 941 payment in the last quarter to cover ALL the tax due for the year, they can still find themselves fined by Uncle Sam as a penalty for not paying equally over the four quarters of the year. A last quarter over payment simply means they underpaid for three quarters and overpaid for one quarter, and no, it’s not “good enough” for the IRS. People also argue[…] The post Fix the Underpayment Tax Penalty You’re Headed For with A Simple Halloween Trick 😮 appeared first on Tax What If Doctor. […]
People Love to Vacation.
by TaxDoctor on October 12, 2018 at 2:09 pm
Some do it often while others hold on all year for that one great week and live day by day until that magical start date on the calendar! A new wave in our digital age is to only take three or four day weekends, but do it more often. However you “vacation”, they do have one common thread, and that is that they are not free. Furthermore, when you are officially vacationing (which becomes a mindset as well….I am officially on vacation as of right now!) you spend more freely, often with a disregard for cost shopping. “I’m stopping at Starbucks for the mocha frappe latte, not Dunkin, cause I’m on vacation!”. What if next vacation you could upgrade to[…] The post People Love to Vacation. appeared first on Tax What If Doctor. […]
IRS Releases Guidance on Business Meal Deductions! It’s Good News!
by TaxDoctor on October 5, 2018 at 12:50 pm
Late last year the government changed the tax code substantially and, among other things, created a new code section 199A for small business owners. This created a buzz as many business owners were made aware they would be getting a huge tax break. They also announced simplifications, like doing away with personal exemptions and instead increasing standard deductions. In the long run, it should make it easier for people to understand their numbers, although for many it will mean an uptick in what they are paying in tax. One of the perceived losses was the deduction for many kinds of business meals and entertainment, which was generally “shoulder shrugged” off as a “cost” of simplification. “If we are getting[…] The post IRS Releases Guidance on Business Meal Deductions! It’s Good News! appeared first on Tax What If Doctor. […]
Tax Planning: It Isn’t Just For Breakfast Anymore
by TaxDoctor on September 28, 2018 at 3:21 pm
All around the country, there are people in an absolute panic because the real tax deadline for personal tax return extension filers is approaching and they are running out of time. A few blogs ago, we talked about how to possibly deal with not being ready for the corporate deadline on September 15th . We don’t have an amusing anecdote for the October 15th deadline like we did for the corporate deadline. The deadline is the deadline. The exception would be for those who have been affected by flooding or other natural disasters and may be given an extended deadline by the IRS. Those people may now have until December 31st to file, but would need to check the IRS website to see if they are in an affected area[…] The post Tax Planning: It Isn’t Just For Breakfast Anymore appeared first on Tax What If Doctor. […]
A Timely Warning About One of Trump’s Tax Changes
by TaxDoctor on September 14, 2018 at 2:08 pm
Every year the IRS gets together and starts looking at economic news and forecasts and works with several departments of the government to tweak our tax code. They look at the leading economic indicators, they decide what they need to change, and the collection of tax revenue often changes by year end. Will they do that this year after the most sweeping changes in a very long time? In the past, they would create a lot of temporary tax rules to steer the ship, but it’s a new course and we have only been sailing a short time! These new rules will be a very big surprise to many Americans, both winners and losers, as next year’s tax collection shakes[…] The post A Timely Warning About One of Trump’s Tax Changes appeared first on Tax What If Doctor. […]