IRS Collection Reminders Are Back
The IRS has restarted sending automated collection notices, ending a two-year hiatus due to the COVID-19 pandemic. The IRS temporarily suspended the mailing of automated reminders to pay overdue tax bills back in February 2022. Affected taxpayers would have received an initial tax letter regarding taxes due but no follow-up reminders. Reinstated “special reminders” started […]
The Fight Over Taxing Unrealized Income
The U.S. Supreme Court recently heard oral arguments that could lead to a landmark ruling that affects how unrealized income is (or isn’t) taxed. As summarized here, Moore vs the United States deals with a relatively new mandatory repatriation tax (MRT) that the plaintiffs claim is unconstitutional. “The one-time tax is supposed to prevent shareholders […]
Timing Is Everything in Tax Planning
Mastering the art of timing can be a powerful tax planning tool. Simply filing and paying on time can make a significant difference. So can managing the timing of asset purchases, capital gains and losses, and deductions. Consider the following ways timing can reduce your tax bill: Failure-to-file and late payments. It’s critical to understand […]
2024 Tax Adjustment Highlights
The 2024 tax thresholds, brackets, and rates you’ll use to file your taxes during the 2025 tax season have just been released. Here’s how they panned out: About 90% of taxpayers claim the standard deduction when tax time rolls around. For tax year 2024, the standard deduction for married couples filing jointly rises to $29,200, […]
Money Moves Before the New Year
We know you don’t want to deal with taxes this time of year, but hear us out: Unique tax-saving opportunities are only available before the year’s end. Think of it as the holiday gift that keeps on giving. There’s rarely a year in which a few tweaks to your deductions, expenses, contributions, or withholdings aren’t […]
How the Richest Entrepreneurs Spread the Wealth
No one has more to lose than the world’s wealthiest individuals. Their specific asset protection tools may not directly correlate to someone with more “average” wealth. However, the general strategies can provide estate and succession planning inspiration for us all. Forbes recently highlighted a few of these noteworthy case studies, starting with Nike founder Phil […]
Is C-Corp to S-Corp a Smart Move?
Reaching C-Corporation status can feel like the realization of a dream, and it can be the best structure for many businesses. However, sometimes it makes more sense to elect an S-Corporation filing status. Just don’t do it hastily: There are important considerations to be made. The C-Corp business structure is unique in that it turns […]
Dangers of TikTok Tax Advice
Are you a TikTok fan? Love someone who is? Many on the social media platform swear it’s a great way to pick up practical lifehacks, including valuable little nuggets of tax advice. But is it all it’s cracked up to be? According to a study by Personal Capital, more than half of TikTok users turn […]
Education Tax Credits: What You Need to Know
It’s back-to-school season, so what better time to talk education tax credits? Taxpayers claiming the credits are often flagged by the IRS, usually due to a simple-to-fix form mismatch. There are two education tax credits that students—and parents of students—can claim: The American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). The IRS […]
Claiming an Adult Child on Your Tax Return
We’re often asked how long a young adult can be claimed as a dependent on their parent’s tax return. Navigating taxes on their own is a rite of passage that most would prefer to put off as long as possible, after all. Most young adults can do just that and remain as dependents on their […]