On May 16, 2019, IRS reported that they have found an error in the 2018 version of the Schedule D Tax Worksheet that they released to the tax software community in January of this year. As such, capital gains of some taxpayers were not taxed at the correct tax rate. IRS is stating that they […]

The 2019 tax filing season has officially begun and individual taxpayers will soon be seeing that the good ole 1040 “ain’t what it used to be”! Pages 1 and 2 are not full pages and at first pass, may look simpler. But don’t stop there! Most of what previously appeared on pages 1 and 2 […]

Michigan recently issued the following press release regarding their ongoing security measures related to 2018 individual income tax returns: “In order to stop tax-related identity theft, some individual income tax returns may be selected for identity confirmation. If a return has been selected for identity confirmation, the taxpayer will receive a letter from Treasury asking […]

The following is a summary of some of the more significant changes under the new Tax Cuts and Jobs Act (TCJA)  that may affect your business. Reduction in Corporate Tax Rate and Dividends Received Deduction TCJA eliminates the graduated corporate tax rate structure and instead taxes corporate taxable income at 21 percent. It also eliminates […]

The following is a brief overview of Tax Cuts and Jobs Act’s (TCJA) key changes (and non-changes) affecting individuals. Tax Rates and Brackets. TCJA provides seven tax brackets, with most rates being two to three points lower than the ones under present law (the top rate goes from 39.6 percent to 37 percent). The top […]

Because the Tax Cuts and Jobs Act (signed into law on December 22, 2017) eliminates many personal itemized deductions beginning in 2018, and makes other changes that may affect your tax benefit from the deductions that remain, it may make sense to accelerate some deductions into 2017. Examples of items that can be accelerated include […]

The State of Michigan recently announced that they are implementing some additional security measures related to this year’s individual tax refunds. The State will be selecting some returns to confirm the taxpayers’ identity. If your return is selected, you will receive a letter in the mail from the Treasury. It will direct you to go […]

Ever wonder where your tax return fits it with rest of your fellow tax filers? IRS has just released preliminary data for the 2014 1040 returns filed. A couple of quick observations…..”middle class” returns represent aprx 39% of all returns filed and aprx 37% of total tax paid in; whereas those with AGI (adjusted gross […]

You need to be aware than an aggressive and sophisticated phone scam targeting taxpayershas been making the rounds throughout the country. Callers claim to be employees of the IRS, but are not. These con artists can sound convincing when they call. They use fake names and bogus IRS identification badge numbers. They may know a […]

The Trade Preferences Extension Act of 2015 significantly increases the penalties imposed for failure to file 1099 information returns and payee statements.  For EACH 1099 “failure to issue”, the penalty is being increased from $100 to $250.  For taxpayers who “intentionally disregard” the 1099 filing requirements, the per failure penalty is increasing from $250 to […]