Tax Simplification?

The Tax Cuts and Jobs Act was sold as a simplification of tax laws and forms.  The IRS recently reminded taxpayers that forms 1040A and 1040-EZ have been consolidated into Form 1040.  On its face, that comment would seem to make sense, but let’s give it some more thought.  The purpose of the 1040A and […]

Transition Tax: Second Installment Due

Although the transition tax applied to the 2017 tax return, many taxpayers chose to make the payments under an installment agreement, which means it is now time for the second payment.  To make this second payment, taxpayers should have received an installment notice payment voucher.  However, at this time, not all taxpayers have received this […]

International Tax Planning – Don’t Forget California

Around the world, the IRS is very well known and international taxpayers sometimes even know a few of the basic principles of U.S. federal tax.  However, possible state taxation issues, especially in California, are frequently overlooked and many times not known at all.  While there are many items to consider, the point is best illustrated […]

First GILTI Tax Season: Problems and Planning

The GILTI tax was implemented for tax years beginning after December 31, 2017, which means that this is the first tax season where GILTI must be considered.  As the law is flushed out on actual returns, the effects are proving to be widespread to many taxpayers.  However, the new regulations (details to come) and recent […]

IRS Continues to Threaten Passports

Last year, the IRS began a policy of notifying the State Department of “seriously delinquent taxpayers.”  To be considered in this category, a taxpayer must have $52,000 or more of back taxes, penalties and interest, and have not already entered into an acceptable payment arrangement with the IRS.  After being notified, the State Department must […]

IRS Waives Underpayment Penalty…….Sort of

Although tax returns are not due until after year end, payment of tax is actually due to be paid thorough the year.  This is done either through withholding in your paycheck, or by making estimated tax payments.  If the payments are not made in the proper amounts during the year there is an estimated tax […]

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