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FairTax Act of 2023
The FairTax Act of 2023 FairTax Act of 2023 (H.R.25) has been introduced to the United States Congress. Is it time for a tax revolution? The current US Tax Code grows more complex daily, politicians in Washington add 1 new tax code per day to fund their bills. No regular taxpayer could possibly ever know…
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Got 1099?
A 1099 is an income reporting document filed with the IRS to report payments made to others. It essentially acts as a tax receipt, if you have not filed one for payments to contractors and you are audited you may be denied the deduction. 1099’s are generally sent by businesses using contractors for services, landlords…
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Goals of an IRS Audit
The goal of an IRS Audit is to enforce the tax law fairly and efficiently to increase voluntary compliance and narrow the tax gap. When you are selected for an IRS audit it can disrupt your life and invade your privacy. It can be expensive to hire representatives who know the law to defend you…
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Estate & Gift Taxes
The 2023 “Gift and Estate Tax Exemption” amount is $12,920,000 for a single person, or $25,840,000 for a married couple. This means that if you die in 2023 and the total fair market value of your assets at your time of death exceeds $12,920,000 every dollar more will be subject to an Estate tax of…
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General Welfare is not Taxable
If a payment is made for the promotion of the general welfare or as a disaster relief payment, it may be excludable from income for federal tax purposes under the General Welfare Doctrine or as a Qualified Disaster Relief Payment. The IRS has reviewed the types of payments made by various states in 2022 that…
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Why can’t IRS just file my return for me?
Over the years as a tax professional I have seen what happens when the IRS files a return for you. They will only do this for you, if the end result will be a balance due to them, the IRS. When a taxpayer hasn’t filed a return, and income documents have been received by IRS…
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CA Employers – New wage and leave requirements starting in 2023
The CA statewide minimum wage has increased to $15.50 per hour. Some counties and cities have additional minimum wage requirements, review the rules in your city. Salaried or “Exempt” employees in CA must have a minimum salary of $1,240 per week, or $64,480 per year. All employers are required to offer paid sick leave, this…
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What is the Annual gift tax exclusion and do I need to do it?
The benefit of gifting the annual Gift Tax Exclusion is to move money out of your estate without estate tax. The estate tax starts when your assets are $12million per person and you transfer them to others, before or after your death. A person who expects they will have a taxable estate at their death…
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What is the FUTA Credit Reduction?
The FUTA credit reduction is an extra % that is being collected for the Unemployment fund that all CA employers (and those in other states) are having to pay on up to $7k of wages paid per employee they employed this year. This happens when the state pays out more unemployment funds than it has…
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Last minute tax planning for 2022 and dates to remember in 2023
The end of the year is almost here, it is important to make any last minute tax moves now that will affect your income for 2022. If your income is up, you may want to look into purchasing new business assets or new to you equipment. Pay out bonuses to worthy employees, or contribute to your…
