Small charities and the IRS' new streamlined exemption process. Organizations with annual gross receipts of $200,000 and assets of $500,000 or less seeking to qualify as tax exempt organizations may soon have an alternative to the current 26 page form for requesting such an exemption. The IRS is in the process of finalizing Form 1023-EZ which is anticipated to be a 2 page form that should simplify the filing and time required to receive approval of the requested exemption.
Are you the owner of a foreign account?
A U.S. citizen with a foreign account with a total value exceeding $10,000 at any time during 2013 is required to file FinCEN Form 114 no later than June 30, 2014. The form can only be filed electronically. The form is available at irs.gov. Filing Form 8938 with your 2013 tax return does not serve as a substitut for FinCen Form 114.
Do you qualify for a deductible Health Savings Account (HSA) contribution for 2014?
If your current health insurance plan has a minimum policy deductible of $2,500 for families or $1,250 for single coverage you may be eligible to make a tax deductible contribution to an HSA. If you qualifiy the contribution limits are $6,500 and $3,250 for family coverage and individual coverage, respectfully. If you were born prior to 1961 there is an additional $1,000 of permitted contribution.
Consider making qualified charitable distributions from IRAs if you are age 70 ½ or older. Taxpayers age 70 ½ or older may make tax-free IRA distributions to charities of up to $100,000. While an itemized deduction may not be taken for the contribution there is also no income recognized because of the IRA distribution. Additionally, qualified charitable distributions apply toward satisfaction of an individual’s required minimum distribution (RMD) for the year.
IRS telephone impersonation scam grows.
The IRS telephone impersonation scam is pervasive and growing. Criminals use fake names, provide bogus IRS badge numbers and alter caller ID numbers to make it look like the IRS is calling. Intended victims are threatened with
imprisonment or deportation if they do not make immediate payment of purported
tax debts. Often, criminals demand payment by prepaid debit cards. The typical loss is between $5,000 and $7,000. According to Treasury Inspector General for Tax Administration (TIGTA), criminals will sometimes call a second or third time claiming to be from a law enforcement agency in an attempt to make the first call appear legitimate. In some cases, intended victims have reported to the IRS and TIGTA that criminals knew their Social Security numbers. Individuals can report IRS impersonation calls to TIGTA by going to its website (https://www.treasury.gov/tigta/contact_report_scam.shtml) or calling (800) 366-4484. The IRS and the Federal Trade Commission are also tracking telephone impersonation scams and identity theft schemes.
Do you qualify for a deductible Health Savings Account (HSA) contribution for 2020?
If your current health insurance plan has a minimum policy deductible of $2,800 for families or $1,400 for single coverage you may be eligible to make a tax deductible contribution to an HSA. If you qualify the contribution limits are $7,100 and $3,550 for family coverage and individual coverage, respectfully. HSA holders 55 years and older may be eligible to contribute an additional $1,000.
Did you know?
IRS statistics show that for the 2016 tax year:
Top 1% (adjusted gross income of $480,804 or higher) paid 37.3% of federal income taxes.
Top 5% (adjusted gross income of $197,651 or higher) paid 58.23% of federal income taxes.
Top 10% (adjusted gross income of $139,713 or higher) paid 69.47% of federal income taxes.
Top 25% (adjusted gross income of $80,921 or higher) paid 85.97% of federal income taxes.
The bottom 50% (adjusted gross income below $40,078) paid 3.04% of total federal income taxes.
Information obtained from Tax Foundation
IRS Forms & Publications:
State of Florida sales tax:
State of Florida annual report:
Volusia County Property Appraiser:
Volusia County Clerk of Court:
Track My Refund:
Restaurant Business Meals
The new Consolidated Appropriations Act has a temporary provision that allows a 100 percent deduction for meals expenses incurred after December 31, 2020 through December 31, 2022. The inclusion of this provision is meant to help spur businesses to buy meals in order to help the restaurant industry.
For this period, it will be important for businesses to make sure they are accounting for meals and entertainment separately in their chart of accounts. Entertainment expenses are still non-deductible during this time period, so separating out these expenses on your trial balance will make it easier to identify what is and what is not deductible between these commonly co-mingled expenses.