Posts tagged with 'taxes'
Accountants Are Facing a Tax Season Like No OtherRead the rest of this entry »
Accountants may want to stock up on extra strength aspirin this tax season because, in the words of the chief tax officer at Jackson Hewitt, it will be “one for the ages.”
In an interview with Accounting Today, Mark Steber ticked off the issues tax accountants must confront before they even begin a return. There are the stimulus payments, and the details of the CARES and SECURE acts. There …
Taxpayers Love Their Accountant, but Want More From ThemRead the rest of this entry »
Clients love their tax accountant, though half wonder if they’re doing enough to cut their tax bill.
Those seemingly contradictory opinions come from a survey by practice management software provider Canopy.
85% of the taxpayer respondents say they would recommend their accountant, despite 53% not being confident they're getting enough help minimizing their taxes.
What the survey takers most appreciate is the in-person communication with their accountant. In fact, they …
Accountants Have Good News For Clients About TaxesRead the rest of this entry »
For accountants, the holiday season could be considered the lull before the storm. Come January, CPAs will be coping with month-end closing, year-end financials and preparing for the annual W-2 and 1099 mailings.
And then it's tax season.
This year, tax accountants can play Santa to their clients, delivering "Season's Greetings" and some good news about a subject that no one associates with good news -- tax audits.
For at …
IRS Has New W-4 Coming Next YearRead the rest of this entry »
Big changes are coming to the form employers use to know how much federal income tax to withhold.
Two years ago, when Congress enacted the sweeping changes of the Tax Cuts and Jobs Act of 2017, it eliminated personal and dependent exemptions. Previously, these exemptions were typically reflected on the W-4 workers filled out to tell payroll how much tax to take out of their paycheck.
Now, the IRS …
Cryptocurrency Traders Looking For Ways Around TaxesRead the rest of this entry »
There's a new question tax accountants will be asking their more aggressive investors this season: "Did you transact any cryptocurrency last year?"
With blockchain the underlying technology, cryptocurrency transactions occur outside the banking network and its mandatory financial reporting requirements. Plus with a little effort, these transactions can be anonymous, making it doubly difficult for the IRS to track.
That makes it tempting for traders in these currencies to avoid …
The IRS's "Dirty Dozen" Tax ScamsEvery year at the beginning of tax season, the IRS issues an annual list of the most common tax scams.Read the rest of this entry »
Dubbed "The Dirty Dozen," this year's list includes several that have appeared on the IRS list before.
Phishing, the sending of sending of emails pretending to be from the IRS, is again at the top of the Dirty Dozen list. Not only do scammers send them to taxpayers, but they've …
For 35 Cents the Government Gets $100The IRS doesn't just go around handing out money. Except it did last week.Read the rest of this entry »
At a speech at the National Press Club, IRS Commissioner John Koskinen handed out envelopes containing a dime and and a quarter. He was making a point that it costs the IRS 35 cents to collect $100.
"If you add up all the work we do for the tax system – issuing forms, helping taxpayers, sending …
Congress Renews Effort to Regulate Tax PreparersThere's a move afoot in Congress to certify tax preparers and require them to take qualification exams, attend continuing education classes every year, and undergo a background check.Read the rest of this entry »
Named the Tax Return Preparer Competency Act, the bill was introduced last month by two Republican House members. The goal, they explained, is to reduce tax preparer fraud, particularly by fly-by-night operators who open temporary offices every tax season.
"There are …
Majority of CPAs Have Clients Victimized By Identify TheftA sizable majority of CPAs have one or more clients who was a victim of identity theft.Read the rest of this entry »
A survey of accountants by the Journal of Accountancy and The Tax Adviser found 63% of them had at least one client victimized by identity theft, which complicated the filing of their 2014 returns. Sorting it out, the survey participants said, was challenging for more than three-quarters of the CPAs. Only 27% said …
More Taxpayers Turning to Professional PreparersThe IRS said last week that early tax filing is already ahead of last year. More than 14 million tax returns were filed by the end of January, all but about 1 million were submitted electronically.Read the rest of this entry »
The volume is 26% ahead of 2013. The average refund is $3,539, the IRS said, with 96% of the refunds paid through direct deposit.
“We encourage taxpayers to e-file their returns since it is …