Recent legislation significantly impacts retirement savings. One notable change involves required minimum distributions (RMDs). This post discusses the change, how it impacts retirement savings, and how taxpayers can minimize potential penalties.
Benjamin Franklin is credited with saying that only two things are certain in life, death and taxes. Unfortunately, in some cases, it appears that in addition to being two certainties in life, the relationship can extend beyond death.
President Donald Trump recently stated in a Tweet that he was changing his residence to Florida. According to the tweet, the move was the result of poor treatment by politicians in New York even though he "pays millions of dollars in city, state and local taxes each year."
The United States Government Accountability Office (GAO) recently released a bulletin calling on the Internal Revenue Service (IRS), Congress and other government agencies to make changes to better address foreign asset reporting. The bulletin notes approvals of renunciations of United States citizenship have increased from 1,601 to 4,449 from 2011 to 2016. The agency suspects the increase in renunciations is the result of difficulties with reporting of foreign assets.
In most cases, the government expects taxpayers to pay their taxes in April. Any resulting payment or refund the result of withholdings from paychecks throughout the year. In some cases, the Internal Revenue Service (IRS) may expect taxpayers to make quarterly payments.
Many people with financial means, including many retirees, escape northern climes this time of year for sunnier vistas in Florida, Arizona or elsewhere.
2018 is the first tax filing year to apply the changes implemented with the Tax Cuts and Jobs Act (TCJA). The following could impact small and medium sized business owners:
Cryptocurrency, a type of digital asset, is a fairly new form of currency. Governmental agencies continue to determine the best we can handle this asset. Although rules and regulations are not currently complete, it is important to note that in some situations tax obligations are present.
In a major ruling last June, the U.S. Supreme Court upheld the authority of states to impose sales tax on online transactions. The Court said such taxation is permissible even if a company does not have a physical presence in a state.
The Internal Revenue Service (IRS) recently provided guidance on the application of section 965(e) of the Code. This section applies specifically to those who receive income from “certain specified foreign corporations.” The law basically requires a transition tax on foreign earnings.