IRS has begun sending letters to virtual currency owners advising them to pay back taxes, file amended returns; part of agency’s larger efforts
Jul29

IRS has begun sending letters to virtual currency owners advising them to pay back taxes, file amended returns; part of agency’s larger efforts

The Internal Revenue Service has begun sending letters to taxpayers with virtual currency transactions that potentially failed to report income and pay the resulting tax from virtual currency transactions or did not report their transactions properly.   “Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and...

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IRS expands list of preventive care for HSA participants to include certain care for chronic conditions
Jul29

IRS expands list of preventive care for HSA participants to include certain care for chronic conditions

The Internal Revenue Service today added care for a range of chronic conditions to the list of preventive care benefits that may be provided by a high deductible health plan (HDHP). Notice 2019-45 (PDF), posted today on IRS.gov, lists the new types of medical care that may be treated as preventive care for this purpose. Individuals covered by an HDHP generally may establish and deduct contributions to a Health Savings Account (HSA) as...

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Final regulations on charitable contributions and state and local tax credits.
Jul21

Final regulations on charitable contributions and state and local tax credits.

The U.S. Department of the Treasury and the Internal Revenue Service today issued final regulations that require taxpayers to reduce their charitable contribution deductions by the amount of any state or local tax credits they receive or expect to receive in return. In a notice also issued today, the IRS stated that taxpayers may treat payments they make in exchange for these credits as state or local tax payments. This allows some...

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Get tax withholding right and do a Paycheck Checkup at least once every year.
Jul21

Get tax withholding right and do a Paycheck Checkup at least once every year.

The Internal Revenue Service today urged taxpayers to review their 2019 tax withholding using the IRS Withholding Calculator and make any changes with their employer as soon as possible.   This is especially true for anyone who adjusted their withholding during the middle or later parts of 2018. That’s because a mid-year withholding change, only affecting part of 2018, may have a different impact if it remains in effect for all...

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Tax scams continue year-round.
Jul21

Tax scams continue year-round.

Although the April filing deadline has passed, scam artists remain hard at work, and the IRS today urged taxpayers to be on the lookout for a spring surge of evolving phishing emails and telephone scams.   The IRS is seeing signs of two new variations of tax-related scams. One involves Social Security numbers related to tax issues and another threatens people with a tax bill from a fictional government agency. Here are some...

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