The most immediate concrete change the Tax Cuts and Jobs Act (TCJA) will bring about for employers is new payroll tax withholding rates. Here’s the latest word from the IRS: “We anticipate issuing the initial withholding guidance in January reflecting the new legislation, which would allow taxpayers to begin seeing the benefits of the change as early as February. The IRS will be working closely with the nation’s payroll and tax professional community during this process.” Read more
By Bethany Bouw
Many with foreign investments have ownership of foreign mutual funds. This can cause a world of problems from a US tax perspective. There are significant differences between the US tax treatment of domestic mutual funds and foreign mutual funds. Foreign mutual funds are almost always considered to be passive foreign investment companies (PFICs). PFICs are a serious matter and require great consideration with reporting and elections. There are serious disadvantages to each method of treatment so it is vital to contact a tax professional who can assist. Read more
By Bethany Bouw
There are special considerations for resident aliens and nonresident aliens when leaving the United States (and US Possessions). When aliens depart the US, they need to have a certificate of compliance to document the following things:
- Report the income (actual and expected) for the tax year and pay the taxes expected as required,
- That the resident alien’s open taxable period’s US income tax obligations are satisfied, or
- That there is no taxable income from US sources for the nonresident alien.
As you scramble to get up-to-date on changes to the federal tax rules under the Tax Cuts and Jobs Act, there also will be major changes to U.S. Generally Accepted Accounting Principles (GAAP). Here’s an overview of the major accounting rules that will change over the next few years. These changes are likely to require updates to your record keeping practices and accounting systems, so you can’t afford to wait until the last minute to implement them. Read more
President Trump and Republican members of Congress say the Tax Cuts and Jobs Act (TCJA) will bring $3.2 trillion in tax cuts. Now that the bill has passed, everyone wants to know how much they’ll save.
Unfortunately, the tax bill won’t be good news for everyone. Here’s a comparison of how tax results for a typical family of four might be affected by the tax law changes, which generally are effective for tax years beginning after December 31, 2017. Read more
Here are the most important things that individual taxpayers need to know about the TCJA, which was signed into law on December 22, 2017. Except where noted, these changes are effective for tax years beginning after December 31, 2017, and before January 1, 2026. Read more
The new tax reform law — commonly referred to as the “Tax Cuts and Jobs Act” (TCJA) — is the most significant tax legislation in decades. Now businesses and individuals are trying to digest the details and evaluate how the changes will impact their tax situation.
Fortunately, your tax advisors can help you figure things out. Let’s start with a basic overview of what’s covered in the new law. (Except where noted, these changes are effective for tax years beginning after December 31, 2017.) Read more
Setting up and maintaining a simplified employee pension (SEP) is probably easier than you think. The sooner you get started saving, the more secure your retirement will be, plus your business can gain tax advantages right away. Read more
Among them are that independent contractors:
- Can be hired on a per-project basis and let go when the project is complete,
- May be more experienced workers who want to maintain a degree of independence and don’t require the supervision that is necessary with employees, and
- Don’t have to receive fringe benefits or workers compensation.
Smart company owners and executives obtain business interruption insurance — and possibly contingent business income coverage if the operation relies heavily on outsourcing or a particular supplier. The idea is that the policy will compensate the company for lost earnings if a devastating event forces it to temporarily close down.
But the calculations and coverage of business interruption policies is complicated and mounds of paperwork are often required to support a claim. To make matters worse, most policies don’t specify exactly what support documents are required and it isn’t uncommon for claims to be denied. Read more