Tax News

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 […]

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 […]

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 […]

A frequent audit issue for businesses is employee v. independent contractor.  The results can be very burdensome because an incorrect classification can cause back taxes and penalties.  The problem is that in most cases it is not a bright line test.  There are cases such as sub-contractors working under the license of a contractor that […]

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 […]

In the past, with a tax rate of 35%, C Corporations were usually not a favorable option for tax purposes when choosing an entity.  At that time, for a corporation to pay tax at a rate of 35%, then the shareholder to pay a 20% tax on the dividend, would cause an effective tax rate […]

This week, we had the honor, along with our Mexican colleague Jorge Pickett, to host Irish Ambassador to Mexico, Ms. Barbara Jones.  The Ambassador visited to discuss business opportunities between Ireland and Mexico, particularly the border region of San Diego and Tijuana. We owe a great deal of appreciation to the cities of Tijuana and […]

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 […]

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 […]

Just after the New Year, I took a trip to Dubai and Abu Dhabi to meet with clients and contacts.  The welcoming and hospitality was overwhelming.  These two cities definitely have all the new age glory as advertised, but there was also much more culture under the surface than I was expecting.  Also more than […]