The IRS has provided further details on additional transition relief for certain domestic partnerships and S corporations preparing the new schedules K-2 and K-3 to further ease the change to these new schedules. Those eligible for the relief will not have to file the new schedules for tax year 2021. The new schedules K-2 and […]
Tax Filing Deadline Date Changed for 2022 In 2022, it will be a federal holiday changing the traditional tax filing deadline, not the COVID-19 pandemic. Emancipation Day falls on Saturday, April 16th, but the holiday is observed in Washington D.C. on Friday, April 15th. Because April 15th is a federal holiday, the tax filing deadline […]
With year-end approaching, it is time to start thinking about moves that may help lower your tax bill for this year and next. This year’s planning is more challenging than usual due to the uncertainty surrounding pending legislation that could, among other things, increase top rates on both ordinary income and capital gain starting next […]
Everybody wants to pay as little in taxes as possible. Most people use software or hire an accountant to help them find all the deductions they can subtract from their taxable income and all the credits they can subtract from their final bill. But most tax breaks require you, the taxpayer, to plan ahead. Even […]
President Biden’s proposed infrastructure plan does not explicitly raise estate taxes. Instead, it ends the step-up in basis that wealthy taxpayers often use to minimize the tax on inherited wealth. The step-up in basis allows heirs to calculate their capital gains rate using the fair market value of assets at the time they are transferred […]
Payday is coming early this year for an estimated 39 million households. The IRS recently announced they will begin issuing payments in advance for child tax credit (CTC) starting July 15th. In general, taxpayers receive the child tax credit when they file a tax return. The amount received is based on the number of qualifying […]
Countries around the globe are trying to stem the so-called “rush to the bottom,” which has multinational companies moving their corporate headquarters so they can lower their tax bills. Countries like Bermuda, the Cayman Islands and Ireland are some popular destinations for corporations looking for tax havens. The result of this tax strategy is a […]
You may have heard credit shelter trusts called by their other monikers: bypass, family or exemption trusts. Assets placed in a CST are generally held apart from the estate of the surviving spouse — they pass tax-free to the remaining beneficiaries at the death of the surviving spouse. But the CST can benefit the surviving […]
The filing date for the federal income tax has been postponed until May 17. The IRS has announced that individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to […]
This has been a difficult year for everyone, and the last thing anyone wants to think about is owing an unexpected tax penalty. Unfortunately, self-employed individuals and small-business owners who are required to pay estimated taxes may find themselves in that position if they did not pay their estimated tax for 2020. The IRS requires […]