U.S. taxpayers are required to pay tax on their global income. On July 26, 2019, the IRS released Information Release 2019-132 announcing that it has started sending letters to owners of virtual currencies, such as Bitcoin, Ethereum, and others advising them to pay back taxes on any unreported transactions. The IRS confirms that they have sent out more than 10,000 letters that will be received by taxpayers by the end of August. Notice 2014-21 provides that virtual currency is treated as property for U.S. federal tax purposes, and that the general tax principles that apply to property transactions apply to transaction using virtual currency. A taxpayer who receives virtual currency as payment for goods or services must, in computing gross income, include the fair market value in U.S. dollars of the virtual currency as of the date that it was received.Read More
Louisiana passed a new law in June responding to federal tax changes that capped individual state income tax deductions and increased the standard deduction.Read More
There has been an outbreak of two new variations on phishing scams targeting taxpayers. In one, scammers use phone calls to try to convince you that your SSN is at risk of being “deactivated” and may state that this is due to overdue taxes or just generic “illegal activity.” In another, scammers are sending letters in the mail warning of delinquent taxes owed to non-existent agencies, such as the “Bureau for Tax Enforcement.” In each, scam artists are attempting to get you to provide your SSN, bank account numbers, and other personal information. If you receive any suspicious notifications, you should NOT engage in any communication with the sender.Read More
The SECURE Act may bring significant changes to regulations over retirement savings plans. By making it easier for companies, especially small businesses, to offer retirement plans, participants will be able to ensure a steady income beyond their working years.
With an overwhelmingly strong approval from the House of Representatives last Thursday, many are hopeful that changes are on the horizon.Read More
As a plan sponsor, it’s your fiduciary responsibility to keep participants (existing and eligible), terminated employees with balances, and beneficiaries of deceased participants informed about your plan through disclosures outlined by the IRS and DOL. Make sure that your notices are on track by referring to this chart.Read More
The East Baton Rouge Parish Finance Department is alerting businesses that the sales and use tax rate within the parish will increase by 0.5% parish-wide. This will be effective for taxable sales or purchases occurring on or after April 1, 2019. The increase is due to last year’s vote that approved the MoveBR transportation plan. The new tax increases combined state and parish rates to 10.45% in the Baker and Central areas and to 9.95% elsewhere.Read More
The underpayment penalty waiver threshold is lowered from 90% to 85% of 2018 tax liability to help those who have under-withheld because of the tax reform law. It will also apply to individuals making quarterly estimates, but not to corporations.
The standard mileage rate has been increased to 58 cents/mile for 2019 along with adjustments to the charitable and medical mileage rates.
The agency announced tax season will begin January 28 with the released update to its contingency plans for government shutdowns and the expected impacts of a continuing shutdown on the tax filing season.Read More
If you’re utilizing the calendar year (January 1-December 31), here is a helpful list of deadlines to keep in mind for your employer-sponsored retirement plan.Read More
Next Year's Resolution:
Get your retirement plan in shape!
This resolution has a greater return than the latest fad diet because who really wants to give up carbs?Read More
The 2015 Bipartisan Budget Act (BBA) repealed the Tax Equity and Fiscal Responsibility Act (TEFRA) partnership audit procedures. These new rules are effective for returns filed for tax years beginning after 2017. Under the old rules, after an IRS audit of a partnership return, any adjustments to partnership tax items would then flow through to the partnership's partners, and the IRS would assess deficiencies against and collect them from the applicable partners. Under the new approach, adjustments to a partnership's items of income, gain, loss, deductions, and credits will be made at the partnership level. Any additional tax, penalty, or other amount related to the tax will also be determined and collected at the partnership level unless the partnership elects the alternative process known as a push-out election.Read More
In early November, the IRS announced cost of living adjustments that increased many of the limitations placed on retirement plans and other retirement-related items for the 2019 tax year. An overview of changes can be found below. Please reach out to us if you have any questions or concerns on these changes.Read More