Our Blog

Karyn Richardson, CPA •

The passing of the Tax Cuts and Jobs Act in December 2017, especially the new Internal Revenue Code Section 199A, has created a lot of buzz in the business community. In simple terms, the new provision allows pass-through entities (Sole Proprietorships, S Corporations, and Partnerships) to deduct 20% of the earned business income on the owner’s individual tax return. However, with tax law, nothing is that simple, as there are many exceptions and income limitations. There remains many unanswered questions, as little to no guidance has been released from the Internal Revenue Service to date. 

Nora Tellifson, CPA •

While much remains to be hammered out and confusion abounds relative to some of the 2018 tax law changes, especially with regard to small businesses, the changes for the Average Joe are fairly clear. Let’s agree on who is an Average Joe. If you receive an average W2, you have some average kids and you live in an average house with your average spouse (I see myself getting into a lot of trouble here.), you’re probably an Average Joe. Here’s a look at some of the significant tax law changes for you.

On Friday the IRS issued a news release detailing their first draft for a significantly modified “postcard‑sized” 1040. It uses a “building block” approach of up to six additional schedules to complete the modified form. They caution that this is only the first draft of the new form which is currently released for review and comment. To see the new form and schedules, check out the IRS’ Draft Tax Forms website. 
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Donna Deos •

As being one of the few people here at Mason + Rich, PA without an accounting degree, I can tell you the title of this article scares me too. Before working here, I wouldn’t have had the first clue about what to do and I can also relate to the panic that runs through folks when they see anything from the IRS.
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What I have learned both by being raised by an Accountant and by working here at M+R is, the first thing to do is Don’t Panic!

Andrew Luce, CPA •

The IRS recently updated one of their publications which provides details for tax rules associated with employer provided fringe benefits (Publication 15-B). Some of you may ask, what are fringe benefits and why should I take the time to understand them?  

The IRS recently issued a news release that notes while some states are planning or have already implemented workarounds for the State and Local Tax (SALT) deductions, specifically mentioning state-established “charitable funds”, that the IRS is planning to issue proposed regulations in the near future to disallow these contributions. Those contributions would likely be determined by substance-over-form principles and be disallowed after the maximum $10,000 deduction for SALT taxes that was enacted by the Tax Cuts and Jobs Act.

New Jersey has responded to the notice by writing a letter discouraging the IRS from going down that path.
 
To learn more see IRS news release IR-2018-122 or Notice 2018-54 which both address the issue. 

The IRS issued a news release in April 2018 to perform a “paycheck checkup” to ensure taxpayers have the right amount of tax withholding following the recent tax law changes. The IRS has unveiled several new features to help taxpayers understand the implications of the tax law changes including YouTube videos and a “Special Tax Tip series.” 
 
This IRS news release emphasizes one important aspect of many changes from the new Tax Cuts and Jobs Act. As always, if you have any questions feel free to contact us and please view the entire news release here.
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The IRS recently issued a news release that warns of a new twist on a phone scam. Scammers are calling taxpayers with the local IRS Taxpayer Assistance Center showing as the caller ID. When the taxpayer questions the scammer they have the taxpayer verify the caller ID phone number on the IRS website.

Note that the IRS typically initiates most contacts through regular mail. For more information see the news release, IR-2018-103.

Nora Tellifson, CPA •

Gentle Readers,
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This is likely my shortest missive of all time. Don’t dismay: if I survive the April tax deadline (and I always do), I’ll be back with long and windy articles with breathtaking insights and commentary. However, today my message is short and sweet.

You must return the signed Form 8879 before your tax preparer can file your return!! 
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Janet Choquette, EA •

Happy New Year Everyone! Now that we have said goodbye to 2017 and have celebrated (hopefully not too much!) the New Year, many of us will make a list of New Year’s Resolutions. As a tax geek (yes, I admit it!) one of my resolutions is to pull all my tax documents together sooner than later so I can file my return timely! One of the most tasking jobs I find is pulling together the information I need to substantiate my charitable donations for the prior year. As discussed in our November blog post, contributions must be made to a “Qualified Organization”.