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IRS Warns of New Filing Season Scam

The IRS is seeing an emergence of a new scam this filing season. This new scam involves the filing of fraudulent returns using taxpayers’ real information such as income, dependents, credits, deductions and actual taxpayer bank account information. Once the refund from the fraudulent return is directly deposited into the taxpayer’s account, the scammer, posing…

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2017 Income Tax Proposal

So, the budget wrangling is behind us for another 10 months anyway.  One of the items left on the cutting room floor was a proposal to increase tax rates and eliminate itemized deductions.  Like an incoming tide, some proposals tend to break and recede only to have the next wave come in a bit higher. …

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Qualified Charitable Distributions – Donating Your Way to Lower Taxes

According to IRS statistics for 2014, almost 44,000,000 individual income tax returns were filed which included Schedule A, the form a taxpayer uses to itemizes their deductions.  Of those returns, over 33,000,000 were filed claiming cash contributions to charity on the Schedule A, totaling over $155,000,000,000.  So it is safe to say that many taxpayers…

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Who Can Represent You Before the IRS?

Many people use a tax professional to prepare their taxes. Anyone who prepares, or assists in preparing, all or substantially all of a federal tax return for compensation is required to have a valid Preparer Tax Identification Number (PTIN). All enrolled agents must also have a valid PTIN. If you choose to have someone prepare…

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Preparing an Effective Business Plan

Whether you’re starting a new company, seeking additional financing for an existing one or analyzing a new market, a business plan is a valuable tool. Think of it as your blueprint for success. Not only will it clarify your business vision and goals, but it will also force you to gain a thorough understanding of…

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Understanding the Gift Tax

If you gave money or property to someone as a gift, you may wonder about the federal gift tax. Many gifts are not subject to the gift tax. Here are seven tax tips about gifts and the gift tax. Nontaxable Gifts. The general rule is that any gift is a taxable gift. However, there are…

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Virtual Currency Treated As Property for Tax Purposes

Many retailers and online businesses now accept virtual currency for sales transactions but the federal tax implications remain relatively unknown to many retailers. If you’re a retailer who accepts virtual currency such as Bitcoins for transactions, here’s what you need to know. Sometimes, virtual currency such as Bitcoins operate like “real” currency, i.e. the coin…

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Business Entertainment Expenses

As a business owner, you are entitled to deduct certain expenses on your tax return such as those relating to entertaining clients. Entertainment is considered any activity that provides entertainment, amusement or recreation. It may also include meeting the personal, living or family needs of individuals including providing meals, a hotel suite or a car…

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Tax Breaks for Hiring New Employees

If you’re thinking about hiring new employees this year, you won’t want to miss out on these tax breaks. Work Opportunity Credit The Work Opportunity Tax Credit (WOTC) is a federal tax credit for employers that hire employees from the following targeted groups of individuals: A member of a family that is a qualified Food…

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Tax Implications of Crowdfunding

Crowdfunding websites such as Kickstarter, GoFundMe, Indiegogo, and Lending Club have become increasingly popular for both individual fundraising and small business owners looking for start-up capital or funding for creative ventures. The upside is that it’s often possible to raise the cash you need, but the downside is that the IRS might consider that money…

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