Recently, Congress passed the Tax Cuts and Jobs Act, an extensive piece of legislation signed into law by President Trump on December 20, 2017. This Act constitutes the most significant change to the tax code in over thirty years, and considerably alters how individuals and businesses will be taxed. As a result, it is vital that you take the time to understand what changes have been made, how you will be affected (both positively and negatively), and how you can take advantage of these new laws. A summary of key provisions that our office believes will be the most important to you is set out below. Keep in mind that drafting and negotiations for the Act were done behind closed doors, so no information from hearings or floor discussions exists to assist in understanding how Congress and the President intend for this law to be interpreted and applied. It is the fervent hope of every tax professional that the Internal Revenue Service will seek to provide additional guidance in the … [Read more...] about Important Provisions of the Tax Cuts and Jobs Act of 2017
Sales tax is imposed by states for "the privilege of selling tangible property" and certain taxable services "at retail,” i.e., to the ultimate consumer of the property or service. The financial burden of the tax is normally passed on to customers, but sellers are required to collect, report, and pay over the tax. Sellers need to keep apprised of changes in the laws and their application and make sure they comply, because they may be required to pay sales tax not collected on transactions and be unable to recover those taxes from the original purchaser because of the effort required and possible damage to ongoing relationships with customers. Sellers' purchase of items to sell to customers are not taxable as a "sale for resale" ("wholesale"). … [Read more...] about Sales Tax Exemptions
Effective representation before the Internal Revenue Service (“IRS”) can be crucial, and finding an experienced attorney to stand by your side is advisable when you're involved in a tax controversy, such as a complex examination (audit), a legal matter that could result in criminal prosecution, a dispute with the IRS collection office or Appeals Office, applying for an offer in compromise, or filing a claim for a refund. Securing qualified tax counsel can improve the presentation of your case, the protection of your interests, and the building of the case's legal record. The last is especially true if further judicial action is necessary. Representation in these cases is also known as practice before the IRS, and it is detailed in IRS Publication 947 (download Pub 947 pdf) and Circular 230. This process and who is authorized to represent you at various stages with the IRS is highly regulated, so you should review Publication 947 and the tips and directives below before getting … [Read more...] about Representation Before the IRS
Audits are not pleasant and can unnerve even the bravest and most diligent of taxpayers, but there are ways to improve the process. Using research and expert advice, you can effectively prepare for the procedure and eliminate unnecessary stress. If you're wondering how to survive a tax audit, scroll down for some helpful tips. … [Read more...] about How to Survive a Tax Audit
Tax attorneys specialize in the area of tax law. Unlike tax preparers or accountants, they generally do not prepare tax returns (although they will in some situations). Instead, tax attorneys help with complex tax and estate planning, and they handle tax disputes with federal, state, and local tax authorities. Determining when you can handle a tax issue yourself and when you need an attorney can be tricky. So when do you need a tax attorney? Let's find out! … [Read more...] about When Do You Need a Tax Attorney?
Taxes are a nonnegotiable piece of modern day life. However, in rare cases, if you follow certain rules and regulations, you can defer them. For example, have you heard about 1031 exchanges? Also known as like-kind exchanges, 1031 exchanges are detailed in (and named after) Section 1031 of the Internal Revenue Code. If you use one of these exchanges correctly, you can defer the recognition of capital gains that are typically due upon the sale of a property. However, before you attempt to qualify, you might want to learn how 1031 exchanges work . . . How 1031 Exchanges Work What is a 1031 exchange? A 1031 exchange is a tax strategy detailed in the Internal Revenue Code that states that if certain conditions are met, the gain on the sale of property used in a trade or business or held for investment will not be taxed at the time of sale if the proceeds are reinvested in “like-kind property.” Instead of paying taxes at the time of the sale, the person will pay taxes when their … [Read more...] about How 1031 Exchanges Work