Tax Relief for Expatriates who Relinquished Citizenship

NSTPInternal Revenue Service (IRS), Taxpayer

Tax Relief for Expatriates who Relinquished Citizenship

Tax Relief for Expatriates who Relinquished Citizenship The IRS has established new procedures that will enable certain individuals who relinquished their U.S. citizenship to come into compliance with their U.S. tax and filing obligations and receive relief for back taxes. The Relief Procedures for Certain Former Citizens apply only to individuals who have not filed U.S. tax returns as U.S. citizens or residents, owe a limited amount of back taxes to the United States and have net assets of less than $2 million. Only taxpayers whose past compliance failures were non-willful can take advantage of these new procedures. Many in this group may have lived outside the United States most of their lives and may have not been aware that they had U.S. tax obligations. Eligible individuals wishing to use these relief procedures are required to file outstanding U.S. tax returns, including all required schedules and information returns, for the five years preceding to and including their year of expatriation. Provided that the taxpayer’s tax liability does not exceed a total of $25,000 for the six years in question, the taxpayer is relieved from paying U.S. taxes. The purpose of these procedures is to provide relief for certain former citizens. … Read More

Truncated Taxpayer Identification Numbers Rules – Final Regulations

NSTPIndividual Taxpayer Identification Number (ITIN), Internal Revenue Service (IRS)

Truncated Taxpayer Identification Numbers Rules Set Out

Truncated Taxpayer Identification Numbers Rules – Final Regulations The IRS has issued final regulations that amend existing regulations to permit employers to voluntarily truncate employees' social security numbers (SSNs) on Forms W-2, Wage and Tax Statement, that are furnished to employees. The final regulations do not allow truncated numbers on W-2 forms filed with the Social Security Administration (SSA). In 2014, the IRS issued final regulations authorizing the use of truncated taxpayer identification numbers (TTINs) on certain payee statements and certain other documents. The 2014 regulations were in response to concerns about the risks of identity theft, including its effect on tax administration. Prior to being amended by the Protecting Americans from Tax Hikes (PATH) Act of 2015, Code Sec. 6051(a)(2) specifically required employers to include their employees' SSNs on copies of Forms W- 2 that are furnished to employees. The PATH Act amended Code Sec. 6051(a)(2) by striking "his social security account number" from the list of information required on Form W-2 and inserting "an identifying number for the employee" instead. Because an SSN is no longer required by Code Sec. 6051, in 2017, IRS issued proposed regs to permit employers to truncate employees' SSNs to appear in the … Read More

Comprehensive Taxpayer Attitude Survey (CTAS) 2018

NSTPInternal Revenue Service (IRS), Taxpayer

Comprehensive Taxpayer Attitude Survey (CTAS) 2018

Comprehensive Taxpayer Attitude Survey (CTAS) 2018 For the last two years, the Internal Revenue Service has surveyed taxpayers to find out what makes them comply with their tax obligations. The study – called the “ Comprehensive Taxpayer Attitude Survey” is released with the annual IRS Data Book, a compendium of data related to tax filings and IRS enforcement and service activity. Prior to 2017, the last survey and study of taxpayer’s attitudes was from the IRS Oversight Board in 2014. The Attitude Survey offers some interesting understandings on how taxpayers view the IRS and fellow taxpayers. It provides many findings about taxpayer needs and preferences – and what taxpayers value. Tax professionals can use this information to gain knowledge about what clients want and how they like to be served. Major Findings Ethical attitudes towards paying taxes remain high among Americans. The majority of Americans continue to say that it is not at all acceptable to cheat on taxes (85%), that it is every American’s civic duty to pay their fair share of taxes (95% agree), and that everyone who cheats on their taxes should be held accountable (90% agree). A sense of civic duty to pay a fair share … Read More

ITINS Set to Expire

NSTPIndividual Taxpayer Identification Number (ITIN), Internal Revenue Service (IRS)

ITINS Set to Expire

ITINS Set to Expire in 2019; IRS Says Renew Early to Prevent Refund Delays Nearly 2 million Individual Taxpayer Identification Numbers (ITINs) are set to expire at the end of 2019 as the Internal Revenue Service continues to urge affected taxpayers to submit their renewal applications early to avoid refund delays next year. “We urge taxpayers with expiring ITINs to take action and renew the number as soon as possible. Renewing before the end of the year will avoid unnecessary delays related to their refunds,” said IRS Commissioner Chuck Rettig. “To help with this process, the IRS is sharing this material in multiple languages. We encourage partner groups to share this important information to reach as many people with ITINs as possible.” Under the Protecting Americans from Tax Hikes (PATH) Act, ITINs that have not been used on a federal tax return at least once in the last three consecutive years will expire December 31, 2019. In addition, ITINs with middle digits 83, 84, 85, 86 or 87 that have not already been renewed will also expire at the end of the year. These affected taxpayers who expect to file a tax return in 2020 must submit a renewal application … Read More

Home Office Deductions

NSTPInternal Revenue Service (IRS), Small Business Owner

Home office deductions

Home Office Deductions Small business owners may qualify for home office deductions that will help them save money on their taxes and benefit their bottom line. Taxpayers can take this deduction if they use a portion of their home exclusively, and on a regular basis, for any of the following: As the taxpayer’s main place of business. As a place of business where the taxpayer meets patients, clients or customers. The taxpayer must meet these people in the normal course of business. If it is a separate structure that is not attached to the taxpayer’s home. The taxpayer must use this structure in connection with their business A place where the taxpayer stores inventory or samples. This place must be the sole, fixed location of their business. Under certain circumstances, the structure where the taxpayer provides day care services. Deductible expenses for business use of a home include: Real estate taxes Mortgage interest Rent Casualty losses Utilities Insurance Depreciation Repairs and Maintenance Certain expenses are limited to the net income of the business. These are known as allocable expenses. They include things such as utilities, insurance, and depreciation. While allocable expenses cannot create a business loss, they can be carried … Read More