Running Afoul of Structured Transaction Laws January 09, 2019
The Bank Secrecy Act (31 USC 5324) was passed in the 1970s to address the problem of money laundering and other crimes that require large transfers of money. Under the auspices of this act, financial institutions must report financial transactions over $10,000. Criminals found ways to sidestep this monitoring, such as by making several deposits under the $10,000 limit, otherwise known as structuring transactions. According to the IRS, “A structured transaction is a series of related transactions that could have been conducted as one transaction, but the financial institution and/or the transactor intentionally broke it into several transactions for the purpose of circumventing the reporting requirements of the Bank Secrecy Act (BSA).”
The Supreme Court Rules Online Retailers May Need to Collect Sales Tax July 03, 2018
In June 2018, the Supreme Court ruled that states can require e-commerce companies to collect and pay sales tax, even for areas where they don’t have a physical presence. Here’s the good news — analysts speculate that the change will not alter shopping habits. Online shopping is so convenient that most shoppers won’t blink about having to pay local sales tax on their purchases. But here’s the downside — if you run an online store, the new ruling may make your life harder or at least complicate your accounting.
What to Do If You Have Undisclosed Offshore Bank Accounts April 30, 2018
Taxpayers with foreign bank accounts are required to disclose these accounts under the Foreign Account Tax Compliance Act (FATCA) and on the Report of Foreign Bank and Financial Accounts (FBAR). Do you have an overseas bank account you haven’t disclosed it to the IRS? If so, you are risking significant penalties and even possible criminal prosecution in certain cases.
5 Surprising Tax Law Changes in the Tax Cuts and Jobs Act March 22, 2018
The Tax Cuts and Jobs Act (TCJA) has made sweeping changes to the United States tax laws. You have probably heard about some of the major changes that take effect beginning in 2018—a big cut to the corporate tax rate, lower marginal rates across the board, and a larger standard deduction. But there are some other less publicized changes that will still have a significant impact many taxpayers.
The Pass-Through Tax Deduction Explained With Calculation Examples March 14, 2018
The new income tax plan brings in a generous pass-through tax deduction for many small businesses in IRC Section 199A. If you have pass-through income, you may qualify for a deduction worth 20% of qualified business income.
