Unfiled tax return forgiveness

Unfiled tax return forgiveness

OVDP for US Corporations, Partnerships and Trusts

OVDP for US Corporations, Partnerships and Trusts

2015 Tax Law Changes – What You Need To Know

As 2015 filing season has started, it's time for the taxpayers to be aware of the latest tax law changes and how it will affect federal tax returns for the 2015 tax year. This article will focus on three important changes that every taxpayer should know before filing their return.

Affordable Care Act 2015
Affordable Care Act (ACA) commonly referred to as ObamaCare is in full-swing and it's time to take a closer look of the new rules that comes into effect starting 2015. Under the health-care reform law (individual mandate), most citizens are expected to have health insurance or risk paying a penalty. Individuals may choose to obtain insurance from government-run marketplaces, also called state run exchanges or from private insurance, in case if they are not covered under employer sponsored health insurance program.

Those individuals who didn't get health insurance will have to fork out non-compliance penalty to the IRS starting this year. For instance, the minimum penalty for the 2014 tax year is $95 ($285 for families) but the middle and upper-income families will actually end up paying more with 1% of income is the 2014 default penalty rate. The penalty is scheduled to rise considerably in 2015: to a $325 minimum per adult or 2 percent of income, whichever is greater. The scheduled penalty for the 2016 tax year is even worse: a greater of 2.5% of income or $695 for individuals and $2,085 for a family.

From 2015, small businesses with less than 50 employees can access the Small Business Health Options Program or SHOP, for health coverage to workers and themselves. To help pay for the employee premiums, tax credits are offered to businesses with fewer than 25 full time employees, with average annual wages below $50,000. Beginning November 15th, 2015 companies with hundred full-timers or less can start using the SHOP program.

2015 Federal Income Tax Brackets
The top income tax rate of 39.6 percent will hit individuals with incomes of $413,200 and higher for single filers and $464,850 for married taxpayers filing a joint tax return. This is up from the 2014 requirements of $406,750 and $457,600, respectively. The capital gains tax rate remains at 0% for individuals in the 10% and 15% tax brackets and the 15% rate for all other tax brackets. But for individuals in the 39.6% income tax bracket, 20% long-term capital gains tax rate will be applied. Personal and dependency exemptions have gone up by another $50 to $4,000 for tax year 2015. Standard deductions increase to $6,300 for single filers, up from $6,200 for 2014 and $12,600 for married joint filers.

Now, More 401 (k) Retirement Savings But Limited IRA Rollovers
Retirement savings contributions are up. Now you can contribute up to $18000 to qualified retirement plans, an increase of $500 from 2014’s limit of $17,500. The catch-up contributions limit is also increased by $500 for participants who are 50 or older.

The new IRA rollover limitation is yet another significant change made in the 2015 tax law. Beginning on Jan. 1, 2015, investors can perform only one tax-free rollover from one eligible IRA to another in a 12 month period. An IRA rollover often involves transfer of funds from one retirement account into another retirement plan. Prior to 2015, people were allowed to exclude rollover distributions from one IRA to another from their income if the same was deposited into another plan within 60 days. This enabled individuals to essentially take penalty-free, tax-free and interest-free loans from one's retirement savings. Unfortunately, the new rule has eliminated such tax-free IRA loans.

However, one can still do multiple IRA-to-IRA transfers during a 12 month period. This can be done through a direct trustee-to-trustee transfer, which one can perform for unlimited number of times in a given year. But remember that not all types of IRA transfers are eligible to receive tax free distribution. It is highly recommended for taxpayers to get an expert opinion from a tax lawyer before taking such IRA distributions.

The Thrill of IRS Notice CP523

The Thrill of IRS Notice CP523

Hard Hurtin' Dan Geurtin, Esq. won't let a CP523 keep you down. He lays out his reasons here. Now. Only at IRSMedic.

Who is liable for unpaid IRS payroll taxes?

Who is liable for unpaid IRS payroll taxes?



People without taste buds and/or common sense are responsible for the regrettable popularity of quinoa, but who is responsible for unpaid payroll taxes?

Delinquent FBAR

Delinquent FBAR

Dear Diary… My delinquent FBAR is actually now a delinquent FinCEN Form 114
and my magic wand will not make this entire mess go away. I am just
going to pretend I am not bothered. That should work, right?

IRS private letter ruling

IRS private letter ruling 

We like to know what to expect in life, in love, and with the IRS. So knowing how the IRS is going to rule on something with a Private Letter Ruling, before you have any liability, is typically a good thing. But sometimes, a Private Letter Ruling may not be possible or may not be the best idea. In this article I weigh the pros and cons. But mostly I talk about boats and Star Wars cause like tax stuff is so boring.

Form 872 consent to extend the time to assess tax

Form 872 consent to extend the time to assess tax

 

Experts have yet to authenticate whether or not this as an early IRS recruitment poster.

IRS statute of limitations on collections

Calculating your CSED is just as easy as finding out who the father is (on an episode of Jerry Springer).