TaxCure Blog

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.

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.

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 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.

In the United States, federal income tax is just the start. In most cases, you also have to pay state tax, and some municipalities charge local or city income tax as well. All those bills can add up, and you may be wondering “how can I avoid state income tax?” or “can I lower my state tax bill?”

The school year is in full swing, and if you’re a teacher, you’ve probably already spent money out of your own pocket. Luckily, the IRS allows you to claim a deduction for many of these expenses. If you want to reduce your tax bill, here are some tax breaks for teachers you need to know.

If you requested an extension on filing your federal income tax return, your due date is just around the corner on October 16th, 2017. You must have your tax return postmarked or electronically submitted by that date. If you don’t file on time, you face a very serious failure-to-file penalty.

The estimated tax penalty is technically called an underpayment penalty. More than ten million taxpayers paid underpayment tax penalties in the 2016 tax year, compared to the 8.9 million who paid them in 2014. That increase may have something to do with the estimated 30% of working-age people the Chicago Tribune reports are now part of the so-called “gig economy.”

The IRS is offering tax relief for Hurricane Harvey victims. Specifically, it is giving affected taxpayers extensions on certain tax returns and payments. The extensions apply to most returns or payments due between August 23, 2017 and January 31, 2018. At the time of writing, most of these deadlines have moved to January 31, 2018.

If you owe the Internal Revenue Service tax money, you may know that some of the penalties for non-payment can become pricey: The IRS can impose additional late or underpayment penalties, and apply interest rate charges on amounts owed until the taxpayer resolves their taxes.  If the IRS fails to collect on the taxes through voluntary action, more extreme collection measures may take place. For example,  garnishment of a person’s wages or even imprisonment.