When you’re enjoying your summer vacation, the last thing you want to think about is taxes. What most people aren’t aware of is the tax implications that comes with renting your residence or vacation home. If you receive money for the use of one of your personal residences, that generally requires reporting that income on your tax return. It also means certain expenses for that home can be used as deductions.
Every month, our tax attorneys and case managers work hard to help our clients settle their tax liability once and for all. Some of our clients struggle with bank levies or wage garnishments, while others owe money due to owning a small business. Here are just a few of the clients we were able to help this month.
With all the new tax reform changes, there’s a chance you may have rushed through your tax return and made a mistake. If you made a mistake on your tax return after you filed it, the IRS will allow you to prepare and file an amended return to fix the errors in the originally filed return. A lot of taxpayers tend to choose the wrong filing status or notice mathematical errors on their returns after they’ve already filed. If you made a mistake with your filing status, with your income or with a tax deduction or tax credit, it’s important that you file an amended return as soon as possible. Here’s what you need to know about amending a tax return.
When going through an audit, the IRS can dig through all your finances, all your assets and income to make sure you’re not hiding income or not paying enough in taxes. One thing auditors can do to a business that is going through a tax audit is they can contact third parties associated with the business. This means contacting the company’s bank, suppliers, creditors, and even their customers. But thanks to the Ninth Circuit, there might be more restrictions on the IRS when it comes to the IRS contacting third parties.
The first tax filing season under the Tax Cuts and Jobs Act is over and the final tax refund numbers are out! The IRS released the data showing that while more Americans received tax refunds this year, the amount of those refunds was smaller. There was almost a $4 billion decline in the number of tax refunds the IRS issued this year.
Luxury clothing and accessories brand, Gucci is in hot waters with the Italian tax authorities. Kering SA, the French owner of the Gucci brand, allegedly owes 1.4 billion euros to Italy in back taxes, according to a government audit. Italian authorities opened a probe into Gucci’s taxes in 2017, which scrutinized business activities by Kering’s Swiss subsidiary, Luxury Goods International. Kering says it will contest the findings of the Italian audit.
Saving for your retirement is one of the most important things you can do. You can save for retirement by having the money come straight out of your paycheck or by depositing the money yourself. Some companies do offer retirement contribution matching which will help you save even more for your retirement. While all your savings are meant to wait until you have actually retired, sometimes people find themselves needing to take money out of their retirement account early for a number of reasons. While it may seem like a quick way to get cash, withdrawing early from your retirement account can have some serious consequences.
Rules regarding expensing and deduction are complex. Managers should keep an eye on the latest rules to make sure their businesses are in compliance and are taking full advantage of the provisions.
"In this world, nothing can be said to be certain, except death and taxes" is a quote often attributed to Benjamin Franklin. With that in mind, it's best to be prepared, at least financially, for taxes and tax season each year.